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Xperi (XPER) 5 Aug 24 2024 Q2 Earnings call transcript

AInvestTuesday, Aug 6, 2024 7:19 pm ET
1min read

Xperi, a leading technology company, recently held its Q2 2024 earnings call, highlighting the company's strategic transformation efforts and financial performance. The call, led by CEO Jon Kirchner and CFO Robert Andersen, showcased Xperi's resilience and focus on growth in key markets. Here's a summary of the key takeaways from the call.

Strategic Transformation and Financial Performance

Xperi reported a revenue of approximately $120 million for Q2 2024, a 1% sequential increase and a 2% decrease from the year-ago quarter when adjusted for the AutoSense divestiture. The company's non-GAAP adjusted operating expense declined by $15 million, or 15%, due to the divestiture and ongoing cost optimization efforts. Adjusted EBITDA was $15 million, or 12% of revenue, nearly tripling both sequentially and from the prior year quarter.

Growth Opportunities

Xperi is focusing on three key growth opportunities where it sees strong potential and differentiation: Connected TV advertising, in-cabin entertainment, and TiVo video-over-broadband. These markets are expected to roughly double over the next 5 to 7 years. The company aims to have 20 million monetizable endpoints by the end of 2025, consisting of approximately 10 million devices in the home and 10 million in cars. By achieving this goal, Xperi expects to generate nearly $200 million of incremental revenue in 2026 relative to 2023.

Recent Achievements and Strategic Partnerships

Xperi has made significant strides in its strategic initiatives, particularly in the media platform and connected car segments. The company has expanded its Board of Directors with the addition of Jeremi Gorman and Rod Randall, bringing valuable expertise in ad tech, monetization, automotive, and capital allocation. Xperi's TiVo operating system and TiVo One cross-screen ad platform have been well-received, with six and seven smart TV partners integrating TiVo OS into their smart TV lineups. The company also secured a multiyear program with a major Asia-based Tier 1 automotive supplier to integrate its DTS in-cabin codec into their entertainment platform.

Financial Outlook

Looking ahead, Xperi remains focused on achieving profitability objectives in 2024 and accelerating growth and profitability in the years ahead. The company is making no changes to the guidance ranges previously provided for 2024.

Conclusion

Xperi's Q2 2024 earnings call underscored the company's strategic transformation efforts, financial performance, and growth opportunities. With a clear focus on key growth markets and strategic partnerships, Xperi is well-positioned for long-term success. The company's commitment to innovation, operational efficiency, and customer satisfaction is a testament to its resilience and strategic vision. As Xperi continues to navigate the ever-evolving tech landscape, its focus on strategic initiatives and financial discipline will be crucial in driving sustainable growth and value for its stakeholders.

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