Revenue Generation and Licensing - Dolby Laboratories generates the majority of its revenue from licensing audio technologies, with over 500 active licensing arrangements as of December 31, 2021[171]. - The company holds approximately 16,200 issued patents related to its technologies, which significantly contribute to its licensing revenue[171]. - The revenue composition for the fiscal year ended December 31, 2021, shows that 37% came from broadcast, 23% from mobile, 17% from consumer electronics, 10% from PC, and 13% from other sources[172]. - Dolby's licensing revenue is primarily driven by the adoption of foundational audio technologies, with a focus on DD+, Dolby Atmos, and Dolby Vision[192]. - Dolby's licensing models include a two-tier model and an integrated licensing model, allowing for flexibility in how technologies are licensed to OEMs and software vendors[173][177]. - Licensing revenue for the quarter ended December 31, 2021, was $332.3 million, a decrease of 11% from $373.0 million for the quarter ended December 25, 2020[234]. - The Broadcast market accounted for $121.6 million in licensing revenue, while Mobile and CE markets contributed $74.9 million and $57.6 million, respectively[234]. Impact of COVID-19 - Dolby's cinema market has been adversely affected by COVID-19, leading to a significant reduction in box office receipts and lower demand for cinema products and services[188]. - The COVID-19 pandemic has caused supply chain disruptions and economic uncertainty, negatively impacting consumer demand for products incorporating Dolby's technologies[187]. - Dolby expects continued impact from COVID-19 on business operations, influenced by factors such as vaccine distribution and government actions[190]. - The company continues to monitor the impact of COVID-19 on demand and supply chain constraints affecting cinema products and services[225]. Technology and Product Development - The company has launched its developer platform, Dolby.io, to expand its addressable market and enable developers to create high-quality, interactive applications[170]. - Dolby's key technologies include Dolby Atmos, which provides an immersive audio experience, and Dolby Vision, which enhances image quality through high dynamic range[172]. - The company aims to significantly expand the types of content that can be enhanced through its technologies and capabilities over time[181]. - The company introduced the Spatial Audio feature in Q1 2022, enhancing the Dolby.io platform for developers[227]. - Dolby.io is still in its early stages, and its future revenue contribution remains uncertain, dependent on developer engagement and service monetization[228]. Market Presence and Partnerships - Major streaming partners like Netflix and Disney+ continue to support Dolby formats, enhancing content availability and driving adoption[196]. - Dolby's technologies are increasingly integrated into mobile devices, with new flagship smartphones from Xiaomi and Motorola supporting Dolby Vision and Atmos[205]. - Dolby's presence in the PC market is bolstered by partnerships with manufacturers like Dell and Lenovo, with new models featuring Dolby technologies[210]. - The automotive sector is expected to generate future revenue from Dolby Atmos music playback, with NIO's ET5 model supporting Dolby Atmos[215]. - The company partners with exhibitors to deliver Dolby Cinema offerings, receiving revenue through a share of box office receipts recognized as licensing revenue[180]. Financial Performance and Expenses - Gross margin for licensing decreased to $317.3 million, representing a gross margin percentage of 96%, down from 97% in the prior year[234]. - Research and Development expenses increased by 8% to $68.8 million, accounting for 20% of total revenue, compared to 16% in the previous year[240]. - Sales and Marketing expenses rose significantly by 29% to $97.2 million, representing 28% of total revenue, up from 19% in the prior year[243]. - General and Administrative expenses increased by 15% to $62.4 million, which is 18% of total revenue, compared to 14% in the previous year[245]. - The company reported a gain on the sale of assets of $13.9 million in Q1 2021, which did not recur in Q1 2022[246]. Cash Flow and Investments - Cash and cash equivalents as of December 31, 2021, were $1,056.7 million, down from $1,225.4 million as of September 24, 2021[260]. - Total working capital decreased to $1,411.9 million as of December 31, 2021, from $1,444.8 million as of September 24, 2021[260]. - Net cash used in investing activities increased by $124.6 million to $(126.1) million in Q1 2022 compared to $(1.5) million in Q1 2021[269]. - Net cash used in financing activities rose by $26.5 million to $(72.8) million in Q1 2022 from $(46.3) million in Q1 2021[270]. - The company has returned approximately $2.1 billion to stockholders through stock repurchases since the program's initiation in fiscal 2010[264]. - The investment portfolio had a weighted-average credit quality of AA and a weighted-average maturity of approximately ten months as of December 31, 2021[276]. Risk Management and Legal Matters - The company uses forward currency contracts to hedge against foreign currency exchange rate exposure, which helps mitigate the impact of currency volatility on operating expenses[279]. - The total notional amounts of outstanding foreign currency forward contracts were $85.2 million as of December 31, 2021, compared to $51.0 million as of September 24, 2021[282]. - A 10% increase in the value of the U.S. dollar would decrease the fair value of financial instruments by $4.3 million, while a 10% decrease would increase it by the same amount[283]. - The company is involved in various legal proceedings, but resolution of these matters is not expected to materially impact operating results or financial condition[291]. Internal Controls and Taxation - The company maintains disclosure controls and procedures to ensure timely and accurate reporting of required information[286]. - There were no changes in internal control over financial reporting that materially affected the company during the fiscal quarter ending December 31, 2021[288]. - The effective tax rate improved to 12.5% in Q1 2022 from 14.5% in Q1 2021, influenced by lower income in higher tax jurisdictions[253].

Financial Data and Key Metrics Changes - Q4 EPS exceeded the midpoint of guidance while revenue was at the low end of the guidance range [7] - Full year 2021 revenue was $1.28 billion, a 10% increase from $1.16 billion in 2020, with licensing revenue at $1.21 billion and products and services revenue at $67 million [30] - Q4 revenue was $285 million, including a favorable true-up of about $3 million for Q3 shipments [29] - Operating income for Q4 was $40.4 million (14.2% of revenue) compared to $30.1 million (11.1% of revenue) in Q4 of the previous year [40] - Net income for Q4 was $44.2 million ($0.42 per diluted share), up from $26.8 million ($0.26 per diluted share) in the prior year [42] Business Line Data and Key Metrics Changes - Foundational audio technologies accounted for roughly three-quarters of licensing business in FY 2021, growing about 11% year-over-year [11] - Licensing revenue from Dolby Atmos, Dolby Vision, and imaging patent technologies grew nearly 20% in FY 2021, with expectations of over 35% growth in FY 2022 [13] - Mobile revenue increased by 15% in FY 2021, while consumer electronics licensing grew by 19% [33][34] - Other markets, including gaming and Dolby Cinema, saw a 21% increase in FY 2021, with expectations of over 25% growth in FY 2022 [37] Market Data and Key Metrics Changes - Broadcast represented about 39% of total licensing in FY 2021, with growth driven by higher adoption of Dolby technologies [31] - Mobile represented approximately 22% of total licensing, with anticipated mid to high single-digit growth in FY 2022 [33] - Consumer electronics licensing is expected to remain relatively flat year-over-year in FY 2022 [35] - PC licensing revenues were up 7% in FY 2021, with low to mid single-digit growth expected in FY 2022 [36] Company Strategy and Development Direction - The company aims to expand its addressable market through initiatives like Dolby.io, focusing on virtual live performances, online events, and gaming [22] - Continued momentum in Dolby Atmos and Dolby Vision is seen as a key driver for future growth [14] - The company is focused on increasing adoption across various content and devices while investing in growth areas [26] Management's Comments on Operating Environment and Future Outlook - Management noted a dynamic environment with uncertainties around global supply constraints and consumer spending impacting forecasts [12] - For FY 2022, the company anticipates revenue growth in the mid to high single digits, driven by Dolby Atmos and Dolby Vision [9] - Operating margins are expected to remain higher than pre-pandemic levels while investing in growth initiatives [25] Other Important Information - The company ended Q4 with approximately $1.3 billion in cash and investments, with a cash dividend of $0.25 per share announced [43] - The company plans to continue share buybacks, with $291 million of stock repurchase authorization available [43][82] Q&A Session Summary Question: Inquiry on FY 2022 revenue guidance for foundational audio revenues - Management indicated that the decrease in low single digits is influenced by unit shipment estimates and timing of contracts [51][53] Question: Comments on Dolby.io adoption and features - Management noted that improvements in API features and self-service activity are expected to drive further adoption [55][58] Question: Discussion on the metaverse and its implications - Management sees opportunities in the metaverse as it relates to audiovisual experiences, particularly through Dolby.io [60] Question: Clarification on a contract that slipped into the new fiscal year - Management explained that revenue from certain contracts can shift in timing, impacting quarterly forecasts [64][65] Question: Expectations for Dolby.io success metrics in FY 2022 - Management suggested focusing on developer engagement and experiences within targeted verticals as indicators of success [66] Question: Insights on operating expense guidance - Management highlighted factors such as a 53-week fiscal year and returning expenses from the pandemic as drivers for increased operating expenses [84][85] Question: Market share for Dolby Vision in the 4K market - Management estimated Dolby Vision's market share in 4K TVs at about 20% to 25%, up from 10% in 2019 [70] Question: State of discussions for new cinema screen signings - Management expects growth in Dolby Cinema revenues as theaters reopen, although new openings may be lower than pre-pandemic years [72]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended September 24, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From To Commission File Number: 001-32431 I Dolby DOLBY LABORATORIES, INC. (Exact name of registrant as specified in its charter) Delaware 90-0199783 (State or ...

Dolby Laboratories, Inc. (NYSE:DLB) Q3 2021 Results Conference Call July 29, 2021 5:00 PM ET Company Participants Jason Dea - Senior Director of Corporate Finance & IR Kevin Yeaman - President, CEO & Director Lewis Chew - Executive VP & CFO Conference Call Participants Ralph Schackart - William Blair Steven Frankel - Collier Securities James Goss - Barrington Research Paul Chung - JPMorgan Operator Ladies and gentlemen, thank you for standing by. Welcome to the Dolby Laboratories conference call discussing ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 25, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From To Commission File Number: 001-32431 DOLBY LABORATORIES, INC. (Exact name of registrant as specified in its charter) Delaware 90-0199783 (State or other ...

Dolby Laboratories, Inc. (NYSE:DLB) Q2 2021 Earnings Conference Call May 4, 2021 5:00 PM ET Company Participants Jason Dea - Senior Director of Corporate Finance & IR Kevin J. Yeaman - President, CEO & Director Lewis Chew - Executive VP & CFO Conference Call Participants Ralph Edward Schackart - William Blair & Company L.L.C., Research Division;Partner & Technology Analyst Steven Bruce Frankel - Colliers Securities LLC, Research Division; Senior VP & Director of Research Paul Chung - JPMorgan Chase & Co, Re ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 26, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From To Commission File Number: 001-32431 | --- | --- | --- | --- | --- | --- | |--------|---------------------------------------------|-------------------- ...

Dolby Laboratories, Inc. (NYSE:DLB) Q1 2021 Earnings Conference Call January 28, 2021 5:00 PM ET Company Participants Jason Dea - Director, Investor Relations Kevin Yeaman - President and Chief Executive Officer Lewis Chew - Executive Vice President and Chief Financial Officer Conference Call Participants Steven Frankel - Colliers Paul Chung - JPMorgan Jim Goss - Barrington Research Operator Ladies and gentlemen, thank you for standing by, and welcome to the Dolby Laboratories Conference Call discussing Fis ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended December 25, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From To Commission File Number: 001-32431 | --- | --- | --- | --- | |------------------------------------------------------------------------------------ ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended September 25, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From To Commission File Number: 001-32431 DOLBY LABORATORIES, INC. (Exact name of registrant as specified in its charter) Delaware 90-0199783 (State or other ju ...