Business Operations and Strategy - The company has over 2 million activated Smart TVs powered by TiVo OS in Europe and has launched Smart TVs in the U.S. market as of February 2025[114]. - The company faces intense competition from various sources, including internal design groups at competing companies, which may impact its ability to license technology[109]. - The company's monetization strategy relies on increasing active users and content hours viewed, which is essential for generating advertising revenue[112]. - The company expects to incur significant expenses related to commercial agreements with TV manufacturers, which may not directly result in license revenue[116]. - The company divested its AutoSense and related imaging business in 2024, indicating a strategic shift in its operations[117]. - The company’s revenue from Pay-TV customers has declined due to cancellations and competition from large streaming platforms[120]. - The company’s ability to generate revenue is dependent on the willingness of advertisers to use its advertising placements and the overall demand for its technology[119]. - The company has faced challenges in maintaining relationships with key content publishers, which is critical for its monetization strategy[115]. - The company’s future growth may be adversely affected if it fails to develop and deliver innovative technologies in a competitive landscape[107]. - The company may not achieve market acceptance for new products and services, which could impact future profitability[108]. - The company has made several acquisitions and divestitures, including the recent divestiture of its AutoSense business, which may affect operational integration and stock price[129]. - The company expects significant revenue from technologies offered to consumer electronics manufacturers, but demand may decline if content in DTS audio format is insufficient[133]. - The company relies on third parties for reporting usage and volume information, and any delays or errors could harm business operations[127]. - The success of the company's solutions depends on interoperability with consumer hardware devices, which may be limited if manufacturers do not integrate the technologies[144]. - The company may face unexpected delays and revenue loss due to complex distribution agreements and reliance on third-party vendors[146]. - The company must manage its cost structure effectively to maintain profitability amid fluctuating royalties and revenue forecasts[138]. - The rapid transformation in digital content licensing and distribution has made the industry less predictable, posing risks to the company's financial condition[125]. - The company is making significant investments in new technologies, products, and services, but these may not achieve profitability or technological feasibility[147]. - The market for AI Technologies is rapidly evolving, and assumptions about cost, performance, and perceived value may be inaccurate, impacting market acceptance[150]. - The company relies on third-party providers for metadata delivery, which could affect revenue if the quality or timeliness of the metadata does not meet standards[156]. - The company is expanding internationally, where regulatory protections for non-discriminatory internet access may be limited, potentially leading to anti-competitive practices[232]. Financial Performance and Risks - The company incurred $604.6 million in goodwill impairment charges in the second half of 2022, which may lead to further evaluations of intangible assets[224]. - Total revenue for 2024 was reported as 100% of revenue, with operating expenses decreasing from 125% in 2023 to 118% in 2024, leading to an operating loss reduction from 25% to 18%[304]. - Research and development expenses decreased from 43% of revenue in 2023 to 39% in 2024, while selling, general, and administrative expenses decreased from 45% to 44%[304]. - The company reported a gain on divestitures of 20% in 2024, contributing to an income before taxes of 2% compared to a loss of 25% in 2023[304]. - The company holds a $27.7 million note receivable from Tobii and $15.0 million in deferred consideration related to the AutoSense Divestiture, with payments commencing in 2027[223]. - The company may face significant tax liabilities if the Distribution fails to qualify for non-recognition treatment under U.S. federal income tax laws[245]. - The IRS may assert that the Mergers cause the Distribution to be taxable, potentially leading to significant indemnification liability for the company[249]. - The company is jointly and severally liable for U.S. federal income tax liabilities of its Former Parent's consolidated tax reporting group for periods ending before the Distribution[251]. - The company may need to adjust its tax accounts if its Former Parent utilizes certain pre-Separation tax attributes, which could negatively impact financial results[253]. - The market price of the company's common stock may fluctuate significantly due to various factors, including quarterly earnings and overall market conditions[254]. - The company cannot guarantee the timing or payment of dividends in the future, as it depends on various financial and operational factors[258]. - A stockholder's percentage ownership may be diluted due to equity issuances for acquisitions or other transactions[259]. - The company has repurchased approximately 2.2 million shares of common stock at a total cost of $20.0 million, averaging $9.23 per share[257]. - The stock repurchase program allows for up to $100.0 million in common stock repurchases, with no expiration date or obligation to repurchase a specific amount[257]. Compliance and Regulatory Risks - The company faces risks related to international operations, including compliance with complex laws and potential tariffs affecting product prices and demand[166]. - The company is subject to evolving regulations regarding data privacy, cybersecurity, and artificial intelligence, which may impose significant operational costs[227]. - The company collects and processes Personal Information, and any failure to comply with evolving data privacy laws could result in significant liabilities and negative publicity[184]. - New laws, such as the EU General Data Protection Regulation (GDPR), impose fines of up to €20 million or 4% of annual global revenue for non-compliance, which could adversely affect the company's financial condition[190]. - The company is monitoring the impact of new data privacy laws and regulations, which may restrict targeted advertising and data collection practices[193]. - Increased scrutiny from regulators on cloud service providers may lead to operational disruptions and increased costs for transferring Personal Information outside the EU[196]. - The company may need to adapt its business practices to comply with evolving data protection laws, which could hinder growth and increase operational costs[200]. - The company faces significant risks related to intellectual property litigation, which could result in substantial legal costs and harm its business operations[201]. - The company may need to seek licenses from third parties due to intellectual property infringement claims, which could hinder its ability to sell or use relevant technology[202]. - The company relies on a combination of legal agreements and laws to protect its technology and intellectual property, but failures in protection could weaken its competitive position[203]. - Compliance with environmental and social responsibility regulations may result in increased costs and scrutiny, impacting the company's financial condition[221]. - The company engages in various promotional activities that are regulated by state and federal laws, which could result in penalties if violated[243]. - The company may incur significant compliance costs due to new regulations affecting its products and services, particularly in the broadcasting and telecommunications sectors[238]. Cybersecurity Risks - The company is exposed to cybersecurity risks that could harm its reputation and financial condition if significant disruptions occur[172]. - The company faces numerous cybersecurity risks, including security breaches and unauthorized access, which threaten the confidentiality and integrity of its IT systems[174]. - Cyberattacks are expected to increase in frequency and sophistication, potentially impacting the company's ability to detect and recover from incidents[176]. - The company and its third-party providers regularly experience cyberattacks, although no material impact on operations or financial results has been reported to date[177]. - Compliance with the Payment Card Industry Data Security Standard (PCI-DSS) is critical, as non-compliance could lead to fines and restrictions on card acceptance[179]. - The European Union and the United Kingdom impose stringent cybersecurity obligations, which may increase compliance costs and complexity for multinational organizations[182]. - The company maintains processes for identifying and managing cybersecurity risks as part of its enterprise risk management program[280]. Operational Risks - The complexity of the company's products may lead to undetected defects or errors, resulting in lost revenue and market acceptance issues[155]. - The company is vulnerable to natural disasters and geopolitical conflicts, which could disrupt operations and require substantial recovery efforts[217]. - The company's operations are particularly at risk due to its location in California and reliance on suppliers in Asia, both of which are prone to natural disasters[218]. - Intense competition for qualified employees may hinder the company's ability to attract and retain essential personnel, impacting business growth[123]. - The company is involved in legal proceedings related to license agreements and intellectual property rights, but management does not anticipate a material adverse effect on its results of operations[286]. - The company may incur additional costs if the forum selection clause in its amended certificate of incorporation is found inapplicable or unenforceable[265]. - The company has significant resources and management oversight dedicated to maintaining effective internal control over financial reporting[273]. - The company leases its principal corporate headquarters in San Jose, California, with approximately 127,000 square feet of space[285]. - The company has approximately 1,680 employees and over 35 years of operating experience in the technology sector[300].

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $122 million, down 11% from $137 million in the previous year, but up 2% when adjusted for divestitures [30] - Adjusted EBITDA for the quarter was $23 million, representing a 19% margin compared to $13 million in the prior year [10][37] - For the full year 2024, adjusted EBITDA was $74 million, yielding a margin of 15%, more than doubling from the previous year [38] Business Line Data and Key Metrics Changes - Pay TV revenue decreased by 8%, while IPTV revenue increased by 35%, offsetting declines in core pay TV [30] - Consumer Electronics revenue was up 2% when excluding divestitures, driven by strong unit volumes for game consoles [30] - Connected Car revenue increased by 9% as reported and 42% when excluding divested businesses, attributed to minimum guarantee deals [31] - Media Platform revenue decreased by 15% due to a decline in linear ad campaigns and prior year minimum guarantee deals [32] Market Data and Key Metrics Changes - The company ended 2024 with 2.6 million IPTV subscriber households, exceeding the year-end goal of 2.4 million [21] - The connected car business achieved a footprint of over 10 million vehicles, surpassing the original goal of 7 million [19] - HD Radio technology is now implemented in over 110 million vehicles, with penetration approaching 60% of new vehicles in North America [20] Company Strategy and Development Direction - The company is focused on three growth solutions: Connected TV advertising, in-cabin entertainment, and TiVo Video over Broadband [12] - Goals include achieving a monetizable footprint of at least 7 million active devices in homes and over 15 million cars for DTS AutoStage [14] - The strategy emphasizes expanding partnerships with TV manufacturers and enhancing monetization through the TiVo One platform [18][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business transformation and its impact on profitability despite a challenging market environment [8] - The outlook for 2025 anticipates revenue in the range of $480 million to $500 million, with a focus on media platform growth and slight declines in pay TV revenue [42][44] - Management acknowledged ongoing macroeconomic uncertainties but noted improved clarity in market conditions compared to previous quarters [73] Other Important Information - The company completed a refinancing of $50 million of outstanding debt and ended the year with $131 million in cash and equivalents [11][38] - Non-GAAP tax expense for the quarter was $1 million, lower than planned due to a valuation allowance reversal [37] Q&A Session Summary Question: How does the company plan to balance adding new OEM partners versus growing volume with existing partners? - Management intends to pursue both strategies, focusing on expanding production share with current partners while also exploring new partnerships [48] Question: What are the expectations for ARPU and trends in North America versus Europe? - The company anticipates a combination of growth in ARPU as the year progresses, leveraging both North American and European markets [52] Question: What is the status of delayed TiVo OS smart TVs? - Management reported that shipments have ramped up, with several partners expected to increase shipments in the spring [59] Question: What are the critical variables for success in the media platform business? - Key metrics include active user growth and monetization, which are expected to improve as the year progresses [61][64] Question: How has the market changed since the last earnings call? - Management noted that while uncertainties remain, there is more clarity in market conditions, allowing for a more moderated guidance range [73] Question: Will 2025 be a free cash flow positive year? - The company guided for slightly positive operating cash flow, with potential for free cash flow positivity depending on performance [80] Question: What are the steps to rollout TiVo One? - The rollout involves updating existing devices and working with partners to ensure software updates are implemented effectively [87] Question: What is the competitive environment in the media platform space? - The competitive landscape remains strong, with significant barriers to entry for new players, but the company is confident in its position and strategy [90][92]

Group 1 - Xperi reported quarterly earnings of $0.39 per share, exceeding the Zacks Consensus Estimate of $0.28 per share, and showing a significant increase from $0.11 per share a year ago, resulting in an earnings surprise of 39.29% [1] - The company posted revenues of $122.36 million for the quarter ended December 2024, slightly missing the Zacks Consensus Estimate by 0.02%, and down from $137.23 million year-over-year [2] - Over the last four quarters, Xperi has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Group 2 - Xperi shares have underperformed the market, losing about 16% since the beginning of the year, while the S&P 500 has gained 1.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.18 on revenues of $116.28 million, and for the current fiscal year, it is $0.90 on revenues of $480.15 million [7] Group 3 - The Zacks Industry Rank indicates that the Technology Services sector is currently in the top 28% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - The estimate revisions trend for Xperi is mixed, resulting in a Zacks Rank 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6]

Xperi (XPER) Q4 2024 Earnings Call February 26, 2025 05:00 PM ET Company Participants Catheryn Mallari - Senior Manager - Marketing Strategic Planning & AnalysisJon Kirchner - CEORobert Andersen - CFO Conference Call Participants Cal Bartyzal - Equity Research AnalystSteve Frankel - Director of Research & Senior Research AnalystHamed Khorsand - AnalystMatthew Galinko - SVP & Senior Research Analyst Operator Good day, everyone. Thank you for standing by, and welcome to the Expere Fourth Quarter and Full Year ...

FOR IMMEDIATE RELEASE Exhibit 99.1 Xperi Inc. Announces Fourth Quarter and Full Year 2024 Results Sharp TVs with TiVo OS Have Launched in U.S. Market Achieved Video-Over-Broadband (IPTV) footprint of 2.6 million subscriber households and DTS AutoStage footprint of 10 million vehicles Doubled Year-over-Year Adjusted EBITDA 2 Attributable to the Company. 3 For further information on supplemental non-GAAP metrics included in this press release, refer to the "Non-GAAP Financial Measures" description and "GAAP t ...

Xperi Inc. (XPER) stock has gained 25.2%, underperforming the 48.9% rally of the industry and outperforming 11.1% growth of the Zacks S&P 500 composite over the past six months.XPER’s performance is significantly higher than that of its industry peers, MediaAlpha, Inc. (MAX) and VerifyMe, Inc. (VRME) . MAX and VRME have declined 16.8% and 54% in the same period, respectively.Six Months Price Performance Image Source: Zacks Investment Research As of the last trading session, the XPER stock closed at $10.2, m ...

Xperi (XPER) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- 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 ofte ...

Shares of Xperi (XPER) have gained 4.3% over the past four weeks to close the last trading session at $9.72, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $18.75 indicates a potential upside of 92.9%.The mean estimate comprises four short-term price targets with a standard deviation of $7.89. While the lowest estimate of $12 indicates a 23.5% increase from the current price le ...

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potenti ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-41486 XPERI INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 83-4470363 (State or Other Jurisdiction of Incorporation or Organization) (I.R ...