- Revenue: $122 million for Q4, up 2% year-over-year after adjusting for divestitures; full-year 2024 revenue down 5% as reported.
- Adjusted EBITDA: $23 million for Q4, representing 19% of revenue; full-year adjusted EBITDA margin of 15%.
- Cash and Equivalents: $131 million at year-end 2024.
- Debt Refinancing: Completed refinancing of $50 million debt with a new three-year facility.
- IPTV Subscribers: Ended 2024 with 2.6 million IPTV subscriber households, exceeding the goal of 2.4 million.
- Connected Car Footprint: Over 10 million vehicles for DTS AutoStage, exceeding the original goal of 7 million.
- Consumer Electronics Revenue: Up 2% excluding divestitures, driven by game console unit volumes.
- Operating Cash Flow: Usage of $55 million for the full year 2024.
- Stock Repurchases: $20 million worth of common stock repurchased in 2024.
- 2025 Revenue Outlook: Expected range of $480 million to $500 million.
- 2025 Adjusted EBITDA Margin Outlook: Expected range of 16% to 18%.
- Warning! GuruFocus has detected 2 Warning Sign with XPER.
Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Xperi Inc (NYSE:XPER) reported a 2% increase in revenue for the fourth quarter, reaching $122 million after adjusting for divestitures.
- Adjusted EBITDA for the quarter was $23 million, representing 19% of revenue, up from $13 million in the prior year quarter.
- The company finished the year with $131 million in cash and equivalents, providing solid operating liquidity.
- Xperi Inc (NYSE:XPER) exceeded its goal of 2 million activated TiVo OS devices across Europe, with deployments in major countries.
- The Connected Car business saw continued momentum, with DTS AutoStage now in over 10 million vehicles, surpassing the original goal of 7 million.
Negative Points
- Total revenue for the fourth quarter was down 11% from the previous year, primarily due to divestitures.
- The Media platform revenue declined by 15% due to a decrease in a large linear ad campaign buy and minimum guarantee deals.
- Consumer electronics revenue was down 27% for the full year, excluding divestitures, due to prior year multi-year minimum guarantee renewals.
- The Pay TV business experienced a decline in core revenue, partly due to the timing of certain revenue in the prior year's fourth quarter.
- Xperi Inc (NYSE:XPER) anticipates a year-over-year decline in Pay TV revenue for 2025, as growth in IPTV is expected to be offset by declines in core Pay TV.
Q & A Highlights
Q: How does Xperi plan to balance adding new OEM partners versus growing volume with existing partners for TiVo OS? A: Jon Kirchner, CEO, stated that Xperi intends to do both. The company is receiving positive feedback from existing partners and aims to expand production share with them. Simultaneously, Xperi is working with potential new partners to broaden its footprint over the next year or two.
Q: What are the expectations for ARPU with the TiVo One platform, and how does it differ between North America and Europe? A: Jon Kirchner, CEO, explained that ARPU is expected to start lower and ramp up throughout the year, aiming to exceed $10. The TiVo One ad platform is a common platform across regions, and the combination of European and North American devices will drive monetization, benefiting from the robust US ad market and growing European markets.
Q: Can you update on the timing of TiVo OS smart TV shipments that were delayed? A: Jon Kirchner, CEO, mentioned that progress has been made, with shipments ramping up into the spring. Sharp began shipping TiVo-powered TVs to the US in December, with availability starting in February.
Q: What should be watched for in 2025 to gauge success, particularly regarding TiVo One's impact on media platform growth? A: Jon Kirchner, CEO, emphasized that the key metrics are active user growth and ARPU. The company expects these metrics to grow sequentially each quarter, aiming for over 5 million active users and an ARPU above $10 by year-end.
Q: How has the market environment changed since the last earnings call, and what is the outlook for 2025? A: Jon Kirchner, CEO, noted that while some uncertainties remain, Xperi has moderated expectations and developed a guidance range for 2025. The company is focused on navigating the environment and achieving its strategic goals despite potential market challenges.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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