WILMINGTON, Del., Feb. 18, 2025 (GLOBE NEWSWIRE) -- InterDigital innovation in wireless, video, and AI plays an important role in empowering new network capabilities and diverse video experiences. At Mobile World Congress 2025, InterDigital, Inc. (NASDAQ:IDCC), a mobile, video and AI technology research and development company, will showcase innovations and collaborations that are enhancing and improving the ways we communicate and consume media. Located at Hall 5 Stand 5C51, InterDigital will showcase cutt ...

Core Viewpoint - InterDigital (IDCC) shows a significantly improving earnings outlook, making it a solid investment choice as analysts continue to raise earnings estimates for the company [1][3]. Estimate Revisions - The trend in estimate revisions reflects growing analyst optimism regarding InterDigital's earnings prospects, which is expected to positively influence its stock price [2]. - For the current quarter, the earnings estimate is $2.23 per share, indicating a decrease of 37.71% from the previous year, but the Zacks Consensus Estimate has increased by 64.41% over the last 30 days due to one upward and one downward revision [4]. - For the full year, the expected earnings are $9.30 per share, representing a decline of 37.88% from the prior year, with three estimates moving higher and no negative revisions, leading to a 57.71% increase in the consensus estimate [5]. Zacks Rank - InterDigital currently holds a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, which historically correlate with significant outperformance compared to the S&P 500 [6]. - Stocks with Zacks Rank 1 and 2 have shown a strong track record, with Zacks 1 stocks generating an average annual return of +25% since 2008 [3][6]. Stock Performance - The stock has appreciated by 16.9% over the past four weeks, driven by strong estimate revisions, suggesting potential for further upside [7].

Financial Data and Key Metrics Changes - In Q4 2024, revenue increased by 140% year-over-year to $253 million, with adjusted EBITDA and non-GAAP EPS nearly quadrupling year-over-year [9][26] - For the full year 2024, revenue rose almost 60% to $869 million, marking the highest annual revenue in the company's history [11][30] - Adjusted EBITDA margin for 2024 was strong at 63%, a 20-point improvement over the past four years [30] Business Line Data and Key Metrics Changes - The company closed 14 new licensing agreements throughout 2024, contributing to significant revenue growth [12] - More than 30% of 2024 revenue came from consumer electronics and IoT programs, highlighting growth beyond the smartphone sector [13] - The company has now licensed the top four largest smartphone manufacturers, covering approximately 70% of annual smartphone shipments worldwide [10] Market Data and Key Metrics Changes - The company anticipates a strong growth trajectory in the video services market, with a focus on monetizing its technology in the streaming industry [22] - The streaming industry is projected to match the size of the smartphone industry by 2027, with the company targeting $300 million in recurring revenue from this market by 2030 [72] Company Strategy and Development Direction - The company aims to achieve over $1 billion in annual recurring revenue and $600 million in adjusted EBITDA by 2030 [19] - The strategy includes focusing on signing remaining unlicensed smartphone vendors and renewing existing agreements at higher levels [21] - The company is also pursuing growth in consumer electronics and IoT programs, as well as expanding its video services [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning within a $6 trillion ecosystem, emphasizing the critical nature of its technology [7] - The company is prepared to defend its intellectual property rights while also seeking amicable negotiations with major players like Disney [23][44] - Management noted that geopolitical tensions are considered, but the technology is built on open standards, which mitigates risks associated with such tensions [106][110] Other Important Information - The company received an innovation award for AI-empowered receiver design for 6G communication, showcasing its leadership in wireless technology [16] - The company ended 2024 with nearly $1 billion in cash, including over $500 million in net cash, allowing for continued shareholder returns through buybacks and dividends [31][32] Q&A Session Summary Question: Update on Disney litigation and engagement with other streaming vendors - Management confirmed ongoing litigation with Disney after 2.5 years of negotiations, emphasizing a preference for amicable resolutions but readiness for enforcement [43][44] - Engagement with other streaming service providers is ongoing, with hopes for progress through bilateral negotiations [46] Question: Guidance on annual revenue and recurring revenue - Management discussed the challenges in predicting outcomes due to various factors, including catch-up sales and recurring revenue from expiring agreements [47][48] - The company aims for double-digit growth in recurring revenue for 2025, with several major opportunities in the pipeline [49][52] Question: Capital structure and convertible notes - Management explained the impact of interest expense and potential dilution from convertible notes, noting a robust balance sheet with $500 million in net cash [56][59] Question: Impact of geopolitical tensions on contracts - Management stated that the technology is based on open standards, which are not subject to export controls, and emphasized strong support from various countries [106][110] Question: Guidance approach for 2025 - Management reiterated a holistic view of open opportunities and the likelihood of completion, with adjustments made throughout the year as larger deals are finalized [115][117]

InterDigital, Inc. (IDCC) reported mixed fourth-quarter 2024 results, with the top line beating the Zacks Consensus Estimate but the bottom line missing the same. The company generated higher revenues year over year, driven by solid licensing momentum and product innovation. IDCC is also advancing its leadership position in AI (artificial intelligence) applications for wireless and video technology.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Net IncomeQuarterly net income increase ...

Fourth Quarter 2024 Results February 6, 2025 INNOVATING TODAY EMPOWERING TOMORROW TM Disclaimers Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 21E of the Exchange Act. Such statements include information regarding our current beliefs, plans and expectations, including, without limitation, the matters set forth below. Words such as "believe," "anticipate," "estimate," "expect," "project," "intend," "plan," "forecast," "goal," "could," "would," ...

Core Insights - InterDigital reported a revenue of $252.8 million for the quarter ended December 2024, marking a significant increase of 139.6% year-over-year, and an EPS of $5.15 compared to $1.41 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $243.73 million by 3.72%, while the EPS fell short of the consensus estimate of $5.40 by 4.63% [1] Revenue Breakdown - Recurring revenues amounted to $117.01 million, which is 13.3% higher year-over-year but below the average estimate of $126.43 million from four analysts [4] - Catch-up revenues reached $135.80 million, significantly surpassing the estimated $117.31 million, reflecting a remarkable year-over-year increase of 6072.5% [4] - Revenue from the CE, IoT/Auto program was $21.80 million, which is 27.5% higher year-over-year but below the average estimate of $29.95 million from three analysts [4] - Smartphone revenue was reported at $230.60 million, a substantial increase of 161.8% year-over-year, exceeding the average estimate of $99.15 million from three analysts [4] Stock Performance - InterDigital's shares have returned -4.3% over the past month, contrasting with the Zacks S&P 500 composite's increase of 2.1% [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]

InterDigital (IDCC) came out with quarterly earnings of $5.15 per share, missing the Zacks Consensus Estimate of $5.40 per share. This compares to earnings of $1.41 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -4.63%. A quarter ago, it was expected that this wireless research and development company would post earnings of $0.76 per share when it actually produced earnings of $1.63, delivering a surprise of 114.47%.Over the ...

Market Trends - In 2024, the smartphone market is expected to ship approximately 1.2 billion units globally, driven by the adoption of 5G technology and the transition from feature phones in emerging regions [35]. - The global cellular IoT device shipments are projected to grow from approximately 450 million in 2024 to around 700 million by 2028, with connected vehicles representing a significant opportunity [37]. - The Video Services market is anticipated to increase from approximately $370 billion in annual revenue in 2024 to about $500 billion by 2027 [38]. Patent and Licensing Agreements - In 2024, the company entered into fourteen patent license agreements, including significant agreements with Samsung, Google, and OPPO [43]. - Samsung, Lenovo, Apple, and OPPO each accounted for 10% or more of the company's consolidated revenues in fiscal 2024 [48]. - The arbitration hearing regarding the Samsung patent license agreement was held in July 2024, with a decision expected in early 2025 [49]. - The term of the patent license agreement with OPPO extends through December 31, 2027, with revenue recognition beginning in Q4 2024 [52]. - The company has a multi-year, royalty-bearing patent license agreement with Apple that extends through September 30, 2029 [51]. - The company has focused on the automotive market through the Avanci licensing platform, which has signed agreements with major automotive manufacturers representing over 80% of annual connected car shipments [34]. Financial Performance - Total revenues for 2024 reached $868.5 million, a 58% increase from $549.6 million in 2023 [282]. - Net income for 2024 was $358.6 million, compared to $211.1 million in 2023, reflecting a 70% year-over-year growth [282]. - Basic net income per common share increased to $14.16 in 2024 from $7.97 in 2023, representing a 77% increase [282]. - Total recurring revenues for the year ended December 31, 2024, were $408 million, with catch-up revenues amounting to $460 million [271]. - Major revenue sources included customers from China, contributing $379.6 million in 2024, up from $258.7 million in 2023, indicating significant market expansion [353]. - Customer A accounted for 30% of total revenues in 2024, up from 14% in 2023, highlighting increased reliance on key customers [354]. Employee and Organizational Insights - As of December 31, 2024, the company had approximately 430 employees worldwide, with about 220 employees based outside the United States [66]. - The company reported a voluntary attrition percentage of less than 5% for the year ended December 31, 2024, indicating strong employee retention [74]. - The company has a strong focus on employee development, offering a comprehensive Leadership Development model to enhance skills across various leadership areas [71]. - The company emphasizes a flexible work model, allowing employees to work full-time in the office, fully remotely, or a combination of both [67]. Sustainability and Innovation - The company emphasizes the importance of sustainability and innovation in shaping a future influenced by the convergence of wireless, video, and AI technologies [60]. - The company is committed to sustainable business practices, aligning its strategies with the United Nations' Sustainable Development Goals [62]. - The company has been recognized as one of the top 100 companies by LexisNexis for its innovation contributing to sustainability goals [62]. Financial Position and Investments - The company maintains a diversified investment portfolio with a fair value of $982.4 million as of December 31, 2024, primarily in high-quality investment-grade securities [249]. - The average interest rate for short-term investments is 4.4%, with principal amounts totaling $446.7 million due by 2029 [252]. - As of December 31, 2024, the fair value of the company's marketable securities is $446.7 million, primarily classified as available-for-sale [256]. - The company holds a diversified investment portfolio, adhering to high credit quality standards as per its investment policy guidelines [256]. Revenue Recognition and Accounting Practices - Management's estimates for licensing revenues are recognized only when it is probable that a significant reversal of cumulative revenues will not occur, indicating a cautious approach to revenue recognition [274]. - The determination of standalone selling prices in dynamic fixed-fee license agreements involves significant judgment, impacting revenue recognition [271]. - Revenue recognition is based on a five-step model, with significant estimates required for uncertain licensing revenues [314][315]. - The company utilizes practical expedients in revenue recognition, including excluding contracts with payment gaps of less than one year from significant financing components [314]. Cash Flow and Liquidity - Cash and cash equivalents increased to $527.4 million in 2024, up from $437.1 million in 2023, a rise of 20.6% [280]. - The company held $551.5 million in cash, cash equivalents, and restricted cash as of December 31, 2024, compared to $443.0 million in 2023, reflecting a strong liquidity position [355]. - Net cash provided by operating activities increased to $271.528 million in 2024 from $213.733 million in 2023, marking a rise of 27% [290]. - Cash flows from investing activities showed a net inflow of $109.451 million in 2024, compared to a net outflow of $85.170 million in 2023 [290]. Debt and Financing - The company incurred $9.9 million in new debt issuance costs in 2022, with deferred financing expenses of $2.2 million, $2.3 million, and $2.0 million for the years 2024, 2023, and 2022, respectively [331]. - Long-term debt obligations included $460,000,000 in 3.50% Senior Convertible Notes due 2027, unchanged from 2023 [385]. - The effective interest rate on the 2027 Notes is approximately 4.02% [395]. - The Company issued $460,000,000 in aggregate principal amount of the 2027 Notes, with net proceeds of approximately $450,000,000 [387].

INTERDIGITAL REPORTS FOURTH QUARTER AND FULL YEAR 2024 FINANCIAL RESULTS Strong business performance drove record revenue and EPS in 2024. Increased quarterly dividend by 33% WILMINGTON, DE. - February 6, 2025 - InterDigital, Inc. (Nasdaq: IDCC), a mobile, video, and AI technology research and development company, today announced results for the fourth quarter and full year ended December 31, 2024. "Our business momentum accelerated through the fourth quarter with revenue up 140% year-over-year to $253 mill ...

Strong business performance drove record revenue and EPS in 2024. Increased quarterly dividend by 33%WILMINGTON, Del., Feb. 06, 2025 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq: IDCC), a mobile, video, and AI technology research and development company, today announced results for the fourth quarter and full year ended December 31, 2024. "Our business momentum accelerated through the fourth quarter with revenue up 140% year-over-year to $253 million. 2024 was another outstanding year for the company with ...