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Xperi (XPER) closed the last trading session at $7.79, gaining 7.3% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $18.25 indicates a 134.3% upside potential.The mean estimate comprises four short-term price targets with a standard deviation of $8.02. While the lowest estimate of $12 indicates a 54% increase from the current price level, the most optimistic analyst expects the sto ...

Group 1 - Xperi (XPER) has shown a significant price increase of 27.7% over the past four weeks, with a mean price target of $18.25 indicating an upside potential of 118.8% [1] - The average price target ranges from a low of $12 to a high of $30, with a standard deviation of $8.02, suggesting variability in analysts' estimates [2] - The consensus price target is not the sole metric for investment decisions, as analysts' ability to set accurate price targets has been questioned [3] Group 2 - Strong agreement among analysts regarding XPER's earnings prospects, indicated by positive earnings estimate revisions, supports the expectation of stock upside [4][11] - Over the last 30 days, the Zacks Consensus Estimate for XPER's current year earnings has increased by 46.2%, with no negative revisions [12] - XPER holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates, indicating strong potential for near-term upside [13]

Revenue Performance - Revenue for the three months ended March 31, 2025, was $114.0 million, a decrease of $4.8 million or 4% compared to $118.8 million in the same period of 2024[145] - Pay-TV revenue decreased by $6.9 million, primarily due to declines in core guide products and consumer hardware, while Connected Car revenue increased by $9.0 million[146] Operating Expenses - Total operating expenses for the three months ended March 31, 2025, were $130.5 million, a decrease of $20.7 million or 14% compared to $151.2 million in the same period of 2024[147] - Research and development expenses decreased by $10.9 million or 22%, totaling $39.5 million for the three months ended March 31, 2025, primarily due to lower spending following the AutoSense Divestiture[151] - Selling, general and administrative expenses were $48.7 million, a decrease of $7.7 million or 14% compared to $56.4 million in the same period of 2024[153] Net Loss and Tax Rate - The company recorded a net loss of 16% for the three months ended March 31, 2025, compared to a net loss of 11% in the same period of 2024[143] - The effective tax rate for the three months ended March 31, 2025, was (23.5)%, with an income tax expense of $3.5 million on a pretax loss of $14.9 million[162] Business Divestitures - The AutoSense Divestiture was completed in January 2024, streamlining the business and enhancing focus on entertainment markets[141] - The company completed the sale of Perceive Corporation for $80.0 million in cash in October 2024, allowing for a greater focus on entertainment-based solutions[142] Cash and Liquidity - As of March 31, 2025, cash and cash equivalents decreased to $87.988 million from $130.564 million at December 31, 2024, a decline of approximately 33%[165] - The current ratio improved to 2.3 as of March 31, 2025, compared to 1.6 at December 31, 2024, indicating better short-term liquidity[165] - Net cash used in operating activities for the three months ended March 31, 2025, was $22.258 million, a significant improvement from $49.787 million for the same period in 2024[168] Capital Expenditures and Share Repurchase - Capital expenditures for 2025 are expected to be approximately $20 million, primarily for computer hardware and software[172] - The company repurchased approximately 2.2 million shares at an average price of $9.23 per share, totaling around $20 million, leaving $80 million available for future repurchases[167] Financing Activities - Net cash used in financing activities was $16.111 million for the three months ended March 31, 2025, primarily due to a $50 million voluntary repayment of a promissory note[173] - The company borrowed $40 million under the accounts receivable securitization program (AR Facility) on February 21, 2025, with interest payments expected to be approximately $2.6 million for the next 12 months[177] - The company anticipates that current cash and cash equivalents, along with borrowings under the AR Facility, will be sufficient to meet its needs for at least the next 12 months[178] Interest Expense - A 1% increase in the secured overnight financing rate (SOFR) would result in an estimated annual increase in interest expense of approximately $0.5 million[185] - The company made a full principal payment of $50 million on the Vewd senior unsecured promissory note on February 21, 2025, using cash on hand and new financing[175]

Core Viewpoint - Xperi reported quarterly earnings of $0.16 per share, exceeding the Zacks Consensus Estimate of $0.13 per share, and showing a significant improvement from a loss of $0.05 per share a year ago, indicating a positive earnings surprise of 23.08% [1] Financial Performance - The company achieved revenues of $114.03 million for the quarter ended March 2025, which was slightly below the Zacks Consensus Estimate by 0.21%, and a decrease from $118.84 million in the same quarter last year [2] - Over the last four quarters, Xperi has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Performance - Xperi shares have declined approximately 31.7% since the beginning of the year, contrasting with the S&P 500's decline of 4.7% [3] - The current Zacks Rank for Xperi is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.19 on revenues of $115.82 million, and for the current fiscal year, it is $0.93 on revenues of $482.52 million [7] - The trend of estimate revisions for Xperi is mixed, which may change following the recent earnings report [6] Industry Context - The Technology Services industry, to which Xperi belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - GigaCloud Technology Inc., another company in the same industry, is expected to report quarterly earnings of $0.46 per share, reflecting a year-over-year decline of 45.2% [9]

Xperi (XPER) Q1 2025 Earnings Call May 07, 2025 05:00 PM ET Company Participants Sam Levenson - CEOJon Kirchner - CEORobert Andersen - CFOHamed Khorsand - Principal Conference Call Participants Matthew Galinko - SVP & Senior Research AnalystCal Bartyzal - Equity Research Analyst Operator Good day, everyone. Thank you for standing by, and welcome to the Xperi First Quarter twenty twenty five Earnings Conference Call. During today's presentation, all parties will be in a listen only mode. Following the presen ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $114 million, a decrease of 4% from $119 million in Q1 2024, and a 2% decrease when adjusting for divestitures [17] - Adjusted EBITDA was $16 million, representing 14% of revenue, up over 200% compared to $5 million in the prior year quarter [6][19] - Non-GAAP earnings per share was $0.16, an increase from a loss of $0.05 per share in the previous year [19] Business Line Data and Key Metrics Changes - Pay TV revenue was $50 million, down 12%, with strong growth in IPTV (up 25%) offset by declines in core pay TV [17] - Consumer Electronics revenue decreased by 5% to $23 million, primarily due to lower production volumes [17] - Connected Car revenue rose 37% to $33 million, driven by minimum guarantee licensing arrangements for HD Radio [17] - Media Platform revenue was $8 million, down 30% due to lower middleware revenue and timing shifts in advertising commitments [17] Market Data and Key Metrics Changes - IPTV subscriber households increased to over 2.75 million, a 36% year-over-year increase [13] - DTS AutoStage finished the quarter with a footprint of 11 million vehicles in over 130 countries [13] Company Strategy and Development Direction - The company is focused on three growth solutions: Connected TV advertising, in-cabin entertainment, and TiVo video over broadband [6][7] - The rollout of the TiVo One ad platform aims to maximize engagement and monetization across smart TVs and video over broadband devices [8][10] - The company is expanding its partnerships with TV manufacturers and expects to add at least one to two new TV partners this year [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year growth goals despite macroeconomic uncertainties [5] - The company is maintaining its financial outlook for the year, with modest impacts from tariffs observed so far [21][41] - Management anticipates positive cash flow in the second half of the year, with Q1 typically being the weakest quarter [30] Other Important Information - The company completed a financing arrangement with PNC Bank for a $55 million line of credit, which will support operational needs [20] - The company launched over 80 additional entertainment content partner applications on the TiVo OS platform [11] Q&A Session Summary Question: Regarding IPTV and user base growth - Management indicated that improvements in subscribership revenue will play out throughout the year, with ongoing efforts to assist deployments [24] Question: Capacity to handle increased IPTV customers - Management confirmed that they are staging and working with customers to ensure they can handle the increase in IPTV customers over time [28] Question: Positive cash flow expectations - Management stated that while Q1 is seasonally weak, they expect the balance of the year to be positive, particularly in the second half [30] Question: Additional OEMs in the pipeline for TV companies - Management expects to add at least one to two TV partners this year beyond the existing eight [34] Question: Target for active users by year-end - Management is on track to exit the year with 5 million monthly active users and expects to reach at least 7 million by the end of next year [35][36] Question: Macro factors influencing guidance - Management is maintaining guidance despite uncertainties, indicating strong execution in Q1 [41][42] Question: Opportunities for ARPU growth with TiVo One - Management highlighted the value of the homepage ad unit and its potential to enhance monetization across platforms [43][44] Question: Updates on U.S. TiVo OS devices - Management noted that the U.S. footprint will grow as more TVs and set-top boxes are rolled out, increasing advertiser interest [46]

Q1 2025 Earnings May 7, 2025 Safe Harbor This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding: expectations regarding our future results of operations and financial position, margin expansion and overall growth, including, without limita ...

Financial Performance - Q1 FY25 revenue was $114.0 million, compared to $118.8 million in Q1 FY24, indicating a slight decline [4]. - Non-GAAP net income for Q1 FY25 was $7.4 million, a turnaround from a loss of $2.0 million in Q1 FY24 [4]. - Adjusted EBITDA grew by 200% year-over-year, reflecting successful business transformation efforts and cost reductions [3]. - Non-GAAP adjusted EBITDA for Q1 FY25 was $16.4 million, with a margin of 14.4%, up from 4.5% in Q1 FY24 [4]. - Non-GAAP net income for the three months ended March 31, 2025, was $7,425 thousand, a significant improvement compared to a non-GAAP net loss of $2,044 thousand in the same period of 2024 [30]. - Non-GAAP Adjusted EBITDA for the three months ended March 31, 2025, was $16,423 thousand, with a margin of 14.4%, compared to $5,405 thousand and a margin of 4.5% in 2024, reflecting a substantial increase in profitability [34]. Market Expansion - Xperi achieved 2.5 million TiVo One Monthly Active Users, primarily in Europe, marking a significant expansion of its monetization platform [3]. - The TiVo One advertising platform has expanded its footprint in the U.S., signing over 30 new customers [10]. - DTS AutoStage reached a footprint of 11 million vehicles in over 130 countries, indicating strong market penetration [10]. - The company launched over 80 additional streaming services on the TiVo OS platform, enhancing content offerings [10]. - The company signed multi-year HD Radio agreements with Tier-1 manufacturers, expanding its technology's adoption [10]. Financial Position - Total assets decreased from $667,760 thousand as of December 31, 2024, to $633,476 thousand as of March 31, 2025, representing a decline of approximately 5.1% [26]. - Net loss for the three months ended March 31, 2025, was $18,366 thousand, compared to a net loss of $13,371 thousand for the same period in 2024, indicating an increase in loss of approximately 37.3% [28]. - Cash and cash equivalents decreased from $130,564 thousand at the beginning of the period to $87,988 thousand at the end of the period, a decline of approximately 32.4% [28]. - Total current liabilities decreased from $185,349 thousand as of December 31, 2024, to $117,743 thousand as of March 31, 2025, a reduction of approximately 36.5% [26]. - Total equity decreased from $429,077 thousand as of December 31, 2024, to $418,902 thousand as of March 31, 2025, a decline of approximately 2.7% [26]. Cost Management - Stock-based compensation expense for the three months ended March 31, 2025, was $12,102 thousand, down from $14,757 thousand in the same period of 2024, a decrease of approximately 18.0% [30]. - The company repaid $50,000 thousand in short-term debt during the three months ended March 31, 2025 [28]. - Accounts receivable decreased slightly from $58,745 thousand as of December 31, 2024, to $58,185 thousand as of March 31, 2025, a decrease of approximately 1.0% [26].

Core Viewpoint - Xperi (XPER) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, indicating a positive earnings outlook that may lead to increased stock price [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, which reflects the changing earnings picture of a company [1][2]. - A strong correlation exists between changes in earnings estimates and near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [4]. Implications of the Upgrade - The upgrade for Xperi suggests an improvement in the company's underlying business, which could lead to buying pressure and a higher stock price [5][10]. - The Zacks Rank system effectively utilizes earnings estimate revisions to classify stocks, with a proven track record of generating significant returns for top-rated stocks [7][10]. Earnings Estimate Revisions for Xperi - Xperi is expected to earn $0.93 per share for the fiscal year ending December 2025, reflecting a year-over-year change of -4.1% [8]. - Over the past three months, the Zacks Consensus Estimate for Xperi has increased by 11.4%, indicating positive sentiment among analysts [8]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings across its universe of over 4000 stocks, with only the top 20% receiving higher ratings based on earnings estimate revisions [9][10].