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 ...

Core Insights - InterDigital, Inc. reported record revenue and earnings per share (EPS) for 2024, driven by strong business performance and increased licensing agreements with major device manufacturers [1][2] - The company announced a 33% increase in its quarterly dividend, raising it from $0.45 to $0.60 per share, effective from the second quarter of 2025 [5] Financial Performance - For Q4 2024, revenues reached $252.8 million, a 140% increase year-over-year, while full-year revenues totaled $868.5 million, up 58% from 2023 [3][23] - Net income for Q4 2024 was $133.1 million, a 241% increase compared to $39.1 million in Q4 2023, with a full-year net income of $358.6 million, up 68% from $214.1 million in 2023 [3][23] - Diluted EPS for Q4 2024 was $4.09, a 190% increase from $1.41 in Q4 2023, and for the full year, it was $12.07, up 58% from $7.62 in 2023 [3][23] Revenue Breakdown - Revenue from smartphones was $230.6 million in Q4 2024, a 162% increase year-over-year, while full-year smartphone revenue was $597.5 million, up 28% from 2023 [3] - The CE, IoT/Auto segment saw revenues of $21.8 million in Q4 2024, a 28% increase, and $268.7 million for the full year, a significant 232% increase from 2023 [3] Return of Capital to Shareholders - In fiscal year 2024, the company returned a total of $109.8 million to shareholders through share repurchases and dividends [4] - The Board of Directors approved a quarterly cash dividend increase, reflecting the company's strong financial position and commitment to returning capital to shareholders [5] Near-Term Outlook - For Q1 2025, the company expects revenues between $112 million and $116 million, and for the full year 2025, revenues are projected to be between $660 million and $760 million [10] - Adjusted EBITDA for Q1 2025 is expected to be between $53 million and $60 million, with full-year adjusted EBITDA projected between $400 million and $495 million [10]

WILMINGTON, Del., Feb. 06, 2025 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq: IDCC), a mobile, video and AI technology research and development company, today announced that its Board of Directors has approved an increase in the company’s quarterly cash dividend from $0.45 to $0.60 per share. The increase in the regular quarterly dividend will take effect beginning with the dividend paid in second quarter 2025. The Board of Directors also declared a regular quarterly cash dividend of $0.60 per share on it ...

InterDigital (IDCC) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investors of ...

Industry Overview - The Zacks Wireless Equipment industry is experiencing strong demand due to rapid 5G deployment and upgrades to cloud and fiber network infrastructure [1][4] - The industry includes companies providing networking solutions, wireless telecom products, and related services for voice and data communications [3] Growth Drivers - The proliferation of IoT, fiber densification, and the shift to cloud services are expected to drive growth for companies like Qualcomm, Motorola Solutions, and InterDigital [2] - Cloud networking solutions are increasing demand for networking equipment as businesses seek to enhance efficiency and safety for mobile workforces [4][6] Challenges - Short-term profitability is at risk due to high costs associated with 5G products, geopolitical tensions, and supply chain disruptions [5] - High customer inventory levels and macroeconomic volatility are additional challenges facing the industry [5] Market Performance - The Zacks Wireless Equipment industry has outperformed the S&P 500 and the broader Zacks Computer and Technology sector, with a growth of 33.3% over the past year compared to 23.9% and 25.1% respectively [10] - The industry currently has a Zacks Industry Rank of 36, placing it in the top 14% of over 250 Zacks industries, indicating positive prospects [8] Valuation Metrics - The industry is trading at a trailing 12-month EV/EBITDA of 36.47X, significantly higher than the S&P 500's 18.92X and the sector's 18.82X [12] Company Highlights - Qualcomm is well-positioned for long-term growth with a focus on 5G and a diversified revenue stream, gaining 20.1% in the past year [14] - Motorola Solutions has a strong market position and has gained 44.2% over the past year, with an upward revision of earnings estimates [16] - InterDigital has seen a remarkable gain of 77.9% over the past year, with a strong focus on advanced mobile technologies and a commitment to acquisitions [18]

InterDigital, Inc. (IDCC) is scheduled to report fourth-quarter 2024 results on Feb. 6, before the opening bell. IDCC pulled off a trailing four-quarter earnings surprise of 163.7%, on average. In the last reported quarter, it delivered an earnings surprise of 114.47%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The company is expected to deliver top-line expansion year over year, backed by solid licensing momentum in the consumer electronics market and product innovation.Factors a ...

WILMINGTON, Del., Feb. 03, 2025 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq: IDCC), a mobile, video and AI technology research and development company, today announced that it has initiated litigation against The Walt Disney Company, including Disney+, Hulu and ESPN+, over their ongoing infringement of InterDigital’s intellectual property. “Our video technologies enable Disney to efficiently stream content and enhance the user experience,” said Josh Schmidt, Chief Legal Officer, InterDigital. “We always ...