Additional Japanese Global Brand to Launch
TVs Powered by TiVo Ahead of UEFA Euro 2024
Video-over-Broadband (IPTV) Surpasses Two
Million Subscribers
Xperi Inc. (NYSE: XPER) (the “Company” or “Xperi”), an
entertainment technology company that invents, develops, and
delivers technologies that enable extraordinary experiences, today
announced first quarter 2024 financial results for the three-month
period ended March 31, 2024.
“Entering our second full year as an independent company, we
continued to advance our transformation, delivered solid financial
results across our key growth areas, and made progress on several
strategic initiatives. While revenue was down year over year due in
part to the impact of the AutoSense and imaging divestiture, we saw
strong growth in connected car, media platform, and
video-over-broadband, which are our most attractive opportunities.
As we focus on executing our independent media platform strategy to
drive profitable growth, we are taking steps to further reduce
expenses as part of our ongoing business transformation,” said Jon
Kirchner, chief executive officer of Xperi.
Mr. Kirchner continued, “We expect the next several quarters
will be an exciting time for Xperi as our TiVo OS footprint begins
to scale, our video-over-broadband offering continues to grow at
double digit rates, and our connected car deployments accelerate.
We believe we are on track to achieve the multi-year targets we
announced in Sept. 2022, as these growth drivers and the continued
execution of our strategy set the stage for significant long-term
revenue growth and margin expansion.”
Financial Highlights
GAAP Highlights ($ millions, except per
share data)
Q1 FY24
Q1 FY23
Revenue
$118.8
$126.82
GAAP Operating Loss
($32.3)
($33.6)
GAAP Net Loss
($13.4)
($32.9)
GAAP Loss per Share attributable to
Xperi
($0.29)
($0.76)
Non-GAAP1 Highlights ($ millions, except
per share data)
Q1 FY24
Q1 FY23
Revenue
$118.8
$126.82
Non-GAAP Operating Income/(Loss)
($0.9)
$0.9
Adjusted EBITDA
$5.4
$6.8
Non-GAAP Earnings/(Loss) per Share
attributable to Xperi
($0.05)
$0.04
1
For further information on supplemental
non-GAAP metrics, refer to the “Non-GAAP Financial Measures” and
GAAP to non-GAAP
Reconciliations provided in the financial
statement tables included in this press release.
2
The contribution from AutoSense and the
related imaging business accounted for $4.5 million of revenue in
Q1 2023.
Recent Key Operating
Achievements
Media Platform
- An additional global Japanese brand is expected to launch smart
TVs “Powered by TiVo” in retail stores across Europe and the U.K.
prior to UEFA Euro 2024, which is scheduled to begin on June
14.
- Argos, a major U.K. retailer, is deploying the TiVo operating
system in their “Bush” house brand of smart TVs. These “Powered by
TiVo” TVs are available online and in stores now and are one of the
first to incorporate Freely, the new U.K. streaming service
delivering live TV over broadband.
- Vestel is now shipping smart TVs “Powered by TiVo” across most
major European countries, under a dozen different brands.
Connected Car
- HD Radio continues to increase its penetration and is now a
standard feature in 58% of all vehicles built for the North
American market in 2023, up from 52% in 2021.
- Hyundai and Genesis have now made Xperi’s HD Radio a standard
feature across their North American models.
- DTS AutoStage is now deployed in more than six million vehicles
worldwide – a 50% increase since August 2023 – and DTS AutoStage
Video Service, Powered by TiVo, is now deployed in hundreds of
thousands of cars across seven countries.
Pay TV
- Ended Q1 2024 with over 2 million video-over-broadband (“IPTV”)
subscriber households, continuing the streak of consecutive
quarters of double-digit year-over-year subscriber growth. The
video-over-broadband subscriber count has nearly doubled since the
separation in Oct. 2022.
- Expanded TiVo Broadband with the signing of three new operators
in the quarter: Midco, Bluepeak and Buckeye Broadband. This brings
the total number of broadband providers to seven, representing a
total serviceable available market of over one million U.S.
households for potential monetization.
Consumer Electronics
- Disney+, in collaboration with IMAX and DTS, announced the
global streaming premiere of “Queen Rock Montreal,” the most
successful IMAX concert film ever, featuring immersive sound from
DTS. In addition, Disney+ announced that 18 fan-favorite Marvel
films are also expected to be available for streaming in the IMAX
Enhanced format with DTS:X immersive sound.
- Completed several DTS:X license renewals with major consumer
electronics manufacturers, including Hisense, Xiaomi and TCL.
- Signed two new DTS:X decoder license agreements with major
global PC manufacturers, ASUS and MSI, to integrate our decoder
onto their motherboards.
Perceive
- The strategic review, led by the Board of Directors with the
assistance of Centerview Partners, is progressing and expected to
be completed by the end of summer 2024.
- Perceive continues to generate revenue, has significantly
reduced its cash burn, and remains on track to deliver technology
to a big tech partner for product commercialization, while also
advancing efforts on large language model compression.
Financial Outlook
The Company reaffirms its outlook for fiscal year 2024:
Category
GAAP Outlook
Non-GAAP Outlook
Revenue
$500M to $530M
$500M to $530M
Adjusted EBITDA Margin1,2
n/a
12% to 14%
1
See discussion of “Non-GAAP Financial
Measures” below.
2
With respect to Adjusted EBITDA Margin,
the Company has determined that it is unable to provide a
quantitative reconciliation of this forward-looking non-GAAP
measure to the most directly comparable forward-looking GAAP
measure with a reasonable degree of confidence in its accuracy
without unreasonable effort, as items including restructuring and
impacts from discrete tax adjustments and tax law changes are
inherently uncertain and depend on various factors, many of which
are beyond the Company's control.
Conference Call Information
The Company will hold its first quarter 2024 earnings conference
call at 2:00 PM Pacific Time (5:00 PM Eastern Time) on Wednesday,
May 8, 2024. To access the call toll-free, please dial
1-888-596-4144, otherwise dial 1-646-968-2525. The conference ID is
5483252. All participants should dial in 15 minutes prior to the
start of the call using the conference ID listed above.
Alternatively, the call can be accessed via the following webcast
link: Q1 2024 Earnings Call Webcast.
Safe Harbor Statement
This press release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements contained in this press release that do not
relate to matters of historical fact should be considered
forward-looking statements, including, without limitation,
statements regarding: expectations regarding our future results of
operations and financial position, margin expansion and overall
growth, including, without limitation, anticipated revenue growth
and Adjusted EBITDA margin growth, the deployment by third parties
of their products that use our technology, objectives for future
operations, and ongoing strategies and operating initiatives,
including, without limitation, expansion expectations, reduction of
expenses and our pursuit of strategic alternatives for Perceive.
These forward-looking statements are based on information available
to the Company as of the date hereof, as well as the Company’s
current expectations, assumptions, estimates and projections that
involve risks and uncertainties. In some cases, you can identify
forward-looking statements by the words “expect,” “anticipate,”
“intend,” “plan,” “believe,” “could,” “seek,” “see,” “will,” “may,”
“would,” “might,” “potentially,” “estimate,” “continue,” “expect,”
“target,” and similar expressions or the negatives of these words
or other comparable terminology that convey uncertainty of future
events or outcomes. These statements involve risks, uncertainties
and other factors that may cause actual results, levels of
activity, performance, or achievements to be materially different
from the information expressed or implied by these forward-looking
statements. These risks, uncertainties and other factors are
described under the captions “Risk Factors” and “Management's
Discussion and Analysis of Financial Condition and Results of
Operations” in our Annual Report on Form 10-K for the year ended
December 31, 2023 filed with the Securities and Exchange Commission
(the “SEC”) and our other filings with the SEC from time to time.
Any forward-looking statements speak only as of the date of this
press release and are based on information available to the Company
as of the date of this press release, and the Company does not
assume any obligation to, and does not intend to, publicly provide
revisions or updates to any forward-looking statements, whether as
a result of new information, future developments or otherwise,
should circumstances change, except as otherwise required by
securities and other applicable laws.
About Xperi Inc.
Xperi invents, develops, and delivers technologies that enable
extraordinary experiences. Xperi technologies, delivered via its
brands DTS®, HD Radio™, TiVo®, and by its startup, Perceive, are
integrated into billions of consumer devices and media platforms
worldwide, powering smart devices, connected cars and entertainment
experiences. Additionally, Xperi delivers solutions through
partnerships, including IMAX® Enhanced, a certification and
licensing program operated by IMAX Corporation and DTS, Inc. Xperi
has created a unified ecosystem that reaches highly engaged
consumers driving increased value for partners and customers.
©2024 Xperi Inc. All Rights Reserved. Xperi, TiVo, DTS, HD
Radio, DTS Play-Fi, Perceive and their respective logos are
trademark(s) or registered trademark(s) of Xperi Inc. or its
subsidiaries in the United States and other countries. IMAX is a
registered trademark of IMAX Corporation. All other trademarks and
content are the property of their respective owners.
Non-GAAP Financial Measures
In addition to disclosing financial results calculated in
accordance with U.S. Generally Accepted Accounting Principles
(“GAAP”), the Company’s press release contains non-GAAP financial
measures adjusted for either one-time or ongoing non-cash acquired
intangibles amortization charges; amortization of capitalized cloud
computing costs; costs related to actual or planned acquisitions,
financing, and divestitures including, without limitation,
transaction fees, integration costs, severance, facility closures,
and retention bonuses; restructuring costs; separation costs; all
forms of stock-based compensation; impairment of assets and
goodwill; other items not indicative of our ongoing operating
performance, and related tax effects for each adjustment.
Management believes that the non-GAAP measures used in this press
release provide investors with important perspectives into the
Company’s ongoing business and financial performance and provide a
better understanding of our core operating results reflecting our
normal business operations. The non-GAAP financial measures
disclosed by the Company should not be considered a substitute for,
or superior to, financial measures calculated in accordance with
GAAP. Our use of non-GAAP financial measures has certain
limitations in that the non-GAAP financial measures we use may not
be directly comparable to those reported by other companies. For
example, the terms used in this press release, such as adjusted
EBITDA, do not have a standardized meaning. Other companies may use
the same or similarly named measures, but exclude different items,
which may not provide investors with a comparable view of our
performance in relation to other companies. We seek to compensate
for the limitation of our non-GAAP presentation by providing a
detailed reconciliation of the non-GAAP financial measures to the
most directly comparable GAAP financial measures in the tables
attached hereto. Investors are encouraged to review the related
GAAP financial measures and the reconciliation of these non-GAAP
financial measures to their most directly comparable GAAP financial
measures. All financial data is presented on a GAAP basis except
where the Company indicates its presentation is on a non-GAAP
basis.
Set forth below are reconciliations of the Company’s reported
GAAP to non-GAAP financial measures.
XPER-E
XPERI INC. CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per
share amounts) (unaudited)
Three Months Ended March
31,
2024
2023
Revenue
$
118,844
$
126,839
Operating expenses:
Cost of revenue, excluding depreciation
and amortization of intangible assets
29,756
27,792
Research and development
50,439
54,856
Selling, general and administrative
56,353
57,776
Depreciation expense
3,584
4,093
Amortization expense
11,039
14,827
Impairment of long-lived assets
-
1,096
Total operating expenses
151,171
160,440
Operating loss
(32,327
)
(33,601
)
Interest and other income, net
1,042
1,108
Interest expense—debt
(748
)
(740
)
Gain on divestiture
22,934
-
Loss before taxes
(9,099
)
(33,233
)
Provision for (benefit from) income
taxes
4,272
(294
)
Net loss
(13,371
)
(32,939
)
Less: net loss attributable to
noncontrolling interest
(251
)
(939
)
Net loss attributable to the Company
$
(13,120
)
$
(32,000
)
Net loss per share attributable to the
Company - basic and diluted
$
(0.29
)
$
(0.76
)
Weighted-average number of shares used in
net loss per share calculations - basic and diluted
44,521
42,224
XPERI INC. CONDENSED
CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited)
March 31,
December 31,
2024
2023
ASSETS
Current assets:
Cash and cash equivalents
$
95,216
$
142,085
Accounts receivable, net
63,650
55,984
Unbilled contracts receivable, net
70,363
64,114
Prepaid expenses and other current
assets
42,889
38,874
Assets held for sale
-
15,860
Total current assets
272,118
316,917
Note receivable, noncurrent
27,676
-
Deferred consideration from
divestiture
6,016
-
Unbilled contracts receivable,
noncurrent
16,117
18,231
Property and equipment, net
41,712
41,569
Operating lease right-of-use assets
36,360
39,900
Intangible assets, net
195,894
206,895
Deferred tax assets
4,893
5,093
Other noncurrent assets
29,604
32,781
Assets held for sale, noncurrent
-
12,249
Total assets
$
630,390
$
673,635
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
19,706
$
20,849
Accrued liabilities
83,502
109,961
Deferred revenue
26,327
28,111
Liabilities held for sale
-
6,191
Total current liabilities
129,535
165,112
Long-term debt
50,000
50,000
Deferred revenue, noncurrent
22,704
19,425
Operating lease liabilities,
noncurrent
26,795
30,598
Deferred tax liabilities
7,006
6,983
Other noncurrent liabilities
12,593
4,577
Liabilities held for sale, noncurrent
-
9,805
Total liabilities
248,633
286,500
Equity:
Common stock
45
44
Additional paid-in capital
1,221,709
1,212,501
Accumulated other comprehensive loss
(4,040
)
(2,865
)
Accumulated deficit
(818,568
)
(805,448
)
Total Company stockholders’ equity
399,146
404,232
Noncontrolling interest
(17,389
)
(17,097
)
Total equity
381,757
387,135
Total liabilities and equity
$
630,390
$
673,635
XPERI INC. CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)
(unaudited)
Three Months Ended March
31,
2024
2023
Cash flows from operating
activities:
Net loss
$
(13,371
)
$
(32,939
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Gain from divestiture
(22,934
)
-
Depreciation of property and equipment
3,584
4,093
Amortization of intangible assets
11,039
14,827
Stock-based compensation expense
14,757
15,968
Impairment of long-lived assets
-
1,096
Deferred income taxes
223
(200
)
Other
313
1,000
Changes in operating assets and
liabilities:
Accounts receivable
(10,521
)
(6,019
)
Unbilled contracts receivable
(4,324
)
(9,124
)
Prepaid expenses and other assets
(2,788
)
(5,709
)
Accounts payable
(821
)
(1,108
)
Accrued and other liabilities
(26,427
)
(23,855
)
Deferred revenue
1,483
(1,133
)
Net cash used in operating activities
(49,787
)
(43,103
)
Cash flows from investing
activities:
Purchases of property and equipment
(1,845
)
(1,967
)
Capitalized internal-use software
(2,603
)
(1,894
)
Purchases of intangible assets
(39
)
(68
)
Net cash used in divestiture
(227
)
-
Net cash used in investing activities
(4,714
)
(3,929
)
Cash flows from financing
activities:
Withholding taxes related to net share
settlement of equity awards
(4,671
)
(2,917
)
Net cash used in financing activities
(4,671
)
(2,917
)
Effect of exchange rate changes on cash
and cash equivalents
(46
)
518
Net decrease in cash and cash
equivalents
(59,218
)
(49,431
)
Cash and cash equivalents at beginning of
period
154,434
(1)
160,127
Cash and cash equivalents at end of
period
$
95,216
$
110,696
(1) Including $12,349 classified as held
for sale at December 31, 2023
XPERI INC. GAAP TO NON-GAAP
RECONCILIATIONS (in thousands, except per share amounts)
(unaudited)
Net (loss) income attributable to the
Company:
Three Months Ended March
31,
2024
2023
GAAP net loss attributable to the
Company
$
(13,120
)
$
(32,000
)
Adjustments to GAAP net loss attributable
to the Company:
Stock-based compensation(1)
14,757
15,968
Amortization of intangible assets
11,039
14,827
Impairment of long-lived assets
-
1,096
Gain on divestiture
(22,934
)
-
Transaction, separation, integration and
restructuring related costs:
Transaction, separation, integration and
restructuring costs(2)
3,162
1,284
Severance and retention(3)
2,904
1,356
Non-GAAP tax adjustment(4)
2,148
(792
)
Non-GAAP net (loss) income attributable to
the Company
$
(2,044
)
$
1,739
(1) Stock-based compensation included in
above line items:
Cost of revenue, excluding depreciation
and amortization of intangible assets
$
744
$
792
Research and development
$
4,333
$
5,551
Selling, general and administrative
$
9,680
$
9,625
(2) Transaction, separation, integration
and restructuring related costs included in above line items:
Cost of revenue, excluding depreciation
and amortization of intangible assets
$
(1
)
$
-
Research and development
$
(3
)
$
-
Selling, general and administrative
$
2,760
$
1,284
Interest and other income, net
$
406
$
-
(3) Severance and retention included in
above line items:
Cost of revenue, excluding depreciation
and amortization of intangible assets
$
485
$
37
Research and development
$
2,244
$
773
Selling, general and administrative
$
175
$
546
(4) The provision for (benefit from)
income taxes is adjusted to reflect the net direct and indirect
income tax effects of the various non-GAAP pretax adjustments.
Net (loss) income per share
attributable to the Company:
Three Months Ended March
31,
2024
2023
GAAP net loss per share attributable to
the Company
$
(0.29
)
$
(0.76
)
Adjustments to GAAP loss per share
attributable to the Company:
Stock-based compensation
0.33
0.38
Amortization of intangible assets
0.25
0.35
Gain on divestiture
(0.52
)
-
Impairment of long-lived assets
-
0.03
Transaction, separation, integration and
restructuring related costs
0.13
0.06
Non-GAAP tax adjustment
0.05
(0.02
)
Non-GAAP net (loss) income per share
attributable to the Company
$
(0.05
)
$
0.04
GAAP weighted average number of shares -
diluted
44,521
42,224
Non-GAAP weighted average number of shares
- diluted
44,521
47,411
XPERI INC. GAAP TO NON-GAAP
RECONCILIATIONS (in thousands) (unaudited)
Three Months Ended March
31,
2024
2023
GAAP operating loss
$
(32,327
)
$
(33,601
)
Adjustments to GAAP operating loss:
Stock-based compensation
14,757
15,968
Amortization of intangible assets
11,039
14,827
Impairment of long-lived assets
-
1,096
Transaction, separation, integration and
restructuring related costs:
Transaction, separation, integration and
restructuring costs
2,756
1,284
Severance and retention
2,904
1,356
Non-GAAP operating (loss)
income
$
(871
)
$
930
XPERI INC. GAAP TO NON-GAAP
RECONCILIATIONS (in thousands) (unaudited)
Three Months Ended March
31,
2024
2023
GAAP net loss
$
(13,371
)
$
(32,939
)
Adjustments to GAAP net loss:
Interest expense
851
772
Provision for (benefit from) income
taxes
4,272
(294
)
Stock-based compensation
14,757
15,968
Depreciation expense
3,584
4,093
Amortization of intangible assets
11,039
14,827
Amortization of capitalized cloud
computing costs
1,141
615
Impairment of long-lived assets
-
1,096
Gain on divestiture
(22,934
)
-
Transaction, separation, integration and
restructuring related costs:
Transaction, separation, integration and
restructuring costs
3,162
1,284
Severance and retention
2,904
1,356
Non-GAAP adjusted EBITDA
$
5,405
$
6,778
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240508399719/en/
Xperi Investor Contact: Mike Iburg VP, Investor Relations
+1 408-321-3827 ir@xperi.com
Media Contact: Amy Brennan Senior Director, Corporate
Communications +1 949-518-6846 amy.brennan@xperi.com
Xperi (NYSE:XPER)
過去 株価チャート
から 4 2024 まで 5 2024
Xperi (NYSE:XPER)
過去 株価チャート
から 5 2023 まで 5 2024