Slide 1: Q3 2023 Earnings
Q3 2023 Earnings November 13, 2023
Slide 2: Safe Harbor
Safe Harbor This presentation contains "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on in
Slide 3: Mission, Vision, Solutions, Brands
MISSION VISION SOLUTIONS BRANDS WHAT WHY WHERE WHO Xperi invents, Smarter technology = Media Platform TiVo® develops, and delivers Extraordinary experiences Connected Car DTS® technologies that enable Pay TV HD Radio™ extraordinary experiences Consumer Electronics IMAX® Enhanced1 1 IMAX Enhanced is
Slide 4: Q3 2023 Financial Highlights
Q3 2023 Financial Highlights Revenue of $130M, up 7% from the year ago period. Total GAAP Operating Expenses, including cost of revenue, decreased 69% primarily due to a goodwill impairment in the prior year. Non-GAAP Adjusted Operating Expenses1 increased 3% year over year. GAAP Net Loss of
Slide 5: Markets and Product Lines
Growth Solutions Core Solutions TiVo OS (Connected TV Advertising) Media Platform Markets and Product Lines DTS AutoStage (in-cabin entertainment) HD Radio Connected Car DTS AutoSense (in-cabin monitoring) Music Metadata IPTV Streaming (Video Over Broadband) Search & Discovery Pay TV Classic Guides
Slide 6: Execution Expected to Drive Meaningful Growth
Execution Expected to Drive Meaningful Growth Connected TV Video over DTS AutoStage Monetization Broadband (IPTV) + DTS AutoSense FY22 3 Yrs FY22 3 Yrs FY22 3 Yrs Active Footprint <1M >7M ~1.2M >2.8M <2M >10M+ 60M >5B 1.4B 5.4B Streaming Hours - - Hours Hours Hours Hours ARPU <$10 $20-$30 ~$30 $40 ~
Slide 7: Media Platform
Media Platform Vestel now shipping TVs Powered by TiVo under the JVC brand to retailers in Europe Signed fourth Smart TV OEM to integrate TiVo OS into their 2024 European TV lineup TiVo OS wins three “Best of IFA” awards at IFA 2023 7 © 2023 Xperi Inc. All rights reserved.
Slide 8: Connected Car
Connected Car BMW 5-Series with DTS AutoStage Video Service now in showrooms in 7 countries; BMW will expand AutoStage Video rollout to broad range of models across various vehicle segments Won second AutoStage Video program with another major European automotive OEM Won new HD Radio and AutoStage p
Slide 9: Pay TV
Pay TV Posted double-digit IPTV subscriber growth for the 17th consecutive quarter Over 100 service providers have now selected TiVo’s IPTV solutions for their customers TiVo+ streaming service now available across 5 additional video service providers offering up to 160 channels curated from over 80
Slide 10: Consumer Electronics
Consumer Electronics Signed several multi-year license renewals including Sony, Vestel, and Skyworth for DTS Audio or Play-Fi solutions Signed a Top-3 global PC OEM to deploy DTS:X audio solution across wide range of consumer PCs and laptops Won three “Best of IFA” awards for DTS Play-Fi at IFA 2023
Slide 11: Signed license agreement with Big Tech customer
Signed license agreement with Big Tech customer Recognized revenue this quarter Advanced compression technology highly relevant to Large Language Models (LLM) market deployment at the edge Continue to explore options for strategic partnering to accelerate path to addressing large market for LLM depl
Slide 12: We create extraordinary experiences at home, in the car, and on the go
Connected Car We create extraordinary experiences at home, in the car, and on the go Consumer Pay TV Electronics for millions of consumers around the world. Media Platform 12 © 2023 Xperi. All rights reserved.
Slide 13: Q3 2023 Revenue Breakdown
Q3 2023 Revenue Breakdown Y/Y Market ($ in thousands) Q3 2022 Q3 2023 Change Y/Y Change Pay TV 58,378 60,319 1,941 +3% Consumer Electronics 33,561 32,298 (1,263) -4% Connected Car 20,224 23,393 3,169 +16% Media Platform 9,474 14,380 4,906 +52% TOTAL 121,637 130,390 8,753 +7% 13 © 2023 Xperi Inc. All
Slide 14: Q3 2023 Summary Financial Results
Q3 2023 Summary Financial Results (in thousands, except per share amounts) Q3 2023 GAAP Q3 2023 Non-GAAP3 Revenue 130,390 130,390 Cost of Revenue1 26,413 25,607 Adjusted Operating Expenses2 135,028 100,435 Operating Income / (Loss) (31,051) 4,348 Adjusted EBITDA n/a 9,346 Other Non-Op Expense, net 1
Slide 15: Financial Outlook for FY 2023
Financial Outlook for FY 2023 – As of November 13, 2023 The Company is narrowing its fiscal 2023 outlook ranges to the following: Category ($ in millions) GAAP Outlook Non-GAAP Outlook Revenue $518 to $532 $518 to $532 Adjusted EBITDA Margin1, 2 n/a 6% to 8% 1 See discussion of "Non-GAAP Financial M
Slide 16: Reconciliation Tables
Reconciliation Tables
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures In addition to disclosing financial results calculated in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), the Company’s presentation contains non-GAAP financial measures adjusted for either one-time or ongoing non- cash acquired intangibles amortiz
Slide 18: GAAP to Non-GAAP Net Loss Reconciliation
GAAP to Non-GAAP Net Loss Reconciliation XPERI INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands, except per share amounts) (unaudited) Net loss attributable to the Company: Three Months Ended Three Months Ended September 30, 2023 September 30, 2022 GAAP net loss attributable to the Company $ (41,
Slide 19: GAAP to Non-GAAP Loss per Share Reconciliation
GAAP to Non-GAAP Loss per Share Reconciliation XPERI INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands, except per share amounts) (unaudited) Net loss per share attributable to the Company: Three Months Ended Three Months Ended September 30, 2023 September 30, 2022 GAAP net loss per share attribut
Slide 20: Operating Income/(Loss) Reconciliation
Operating Income/(Loss) Reconciliation XPERI INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands) (unaudited) Three Months Ended September 30, 2023 2022 GAAP operating loss $ (31,051) $ (399,141) Adjustments to GAAP operating loss: Stock-based compensation 17,622 13,015 (5) Amortization of intangibl
Slide 21: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation XPERI INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands) (unaudited) Three Months Ended September 30, 2023 2022 GAAP net loss $ (42,072) $ (401,692) Interest expense 770 750 Provision for income taxes 9,685 2,024 Depreciation expense 4,248 4,990 Amortization of intan
Slide 22: Adjusted Operating Expense Reconciliation
Adjusted Operating Expense Reconciliation XPERI INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands) (unaudited) Non-GAAP adjusted operating expense Three Months Ended September 30, 2023 2022 Total operating expenses $ 161,441 $ 520,778 Less: Cost of revenue, excluding depreciation and amortization
Slide 23: Thank You
Thank You