Why did XPER's Q1 2024 earnings fall short of forecasts?

Xperi's Q1 2024 earnings fell short of forecasts due to several key factors: 1. **Revenue Shortfall**: The company's revenue was approximately $120 million, marking a 2% decrease year-over-year. This decline, although modest, contributed to the overall shortfall. 2. **Expense Management**: Xperi's Adjusted EBITDA increased significantly, reaching $15 million, up from the previous year's $5 million. However, this increase was not enough to offset the revenue shortfall and other expenses. 3. **Consumer Electronics and Media Platform Revenue Decline**: There was a 40% drop in consumer electronics revenue and a 25% decrease in media platform revenue. These sectors appeared to be the most impacted, suggesting that strategic shifts or market conditions may have affected sales in these areas. 4. **Strategic Divestitures**: The sale of AutoSense to Amazon for $80 million in cash was a significant move. However, the transaction's closing costs, taxes, and fees resulted in net proceeds of approximately $52 million. This divestiture, while beneficial in the long term, may have temporarily affected the company's financials as it navigated the sale process. In summary, Xperi's Q1 2024 earnings fell short due to a combination of revenue decline, particularly in consumer electronics and media platform segments, and the impact of strategic divestitures. Despite positive trends in EBITDA and potential future benefits from these divestitures, the immediate effects of these factors led to a shortfall compared to forecasts.