Q2 2023 Earnings August 9, 2023 Safe Harbor This presentation contains "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on information available to Xperi Inc. (the "Company") as of the date hereof, as well as the Company's current expectations, assumptions, estimates and projections that involve risks an ...

Xperi, Inc. (NYSE:XPER) Q2 2023 Earnings Conference Call August 9, 2023 5:00 PM ET Company Participants Michael Iburg - VP, IR Jon Kirchner - President, CEO & Director Robert Andersen - CFO Conference Call Participants Steven Frankel - Rosenblatt Securities Hamed Khorsand - BWS Financial Matthew Galinko - Maxim Group Nicholas Zangler - Stephens Inc. Operator Good day, everyone. Thank you for standing by. Welcome to Xperi's Second Quarter 2023 Earnings Conference Call. [Operator Instructions]. I would now li ...

PART I [Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Xperi Inc.'s unaudited condensed consolidated financial statements for Q1 2023 detail operations, balance sheet, cash flows, and equity post-spin-off [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Xperi Inc. reported Q1 2023 revenue of **$126.8 million**, an operating loss of **$33.6 million**, and a net loss of **$32.0 million** or **($0.76) per share** Condensed Consolidated Statements of Operations (Q1 2023 vs Q1 2022) | Financial Metric | Three Months Ended March 31, 2023 (in thousands) | Three Months Ended March 31, 2022 (in thousands) | | :--- | :--- | :--- | | **Revenue** | $126,839 | $118,888 | | **Total operating expenses** | $160,440 | $147,814 | | **Operating loss** | $(33,601) | $(28,926) | | **Net loss attributable to the Company** | $(32,000) | $(29,523) | | **Net loss per share - basic and diluted** | $(0.76) | $(0.70) | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2023, Xperi Inc. reported total assets of **$687.2 million**, total liabilities of **$256.6 million**, and stockholders' equity of **$445.9 million** Condensed Consolidated Balance Sheet Highlights | Balance Sheet Item | March 31, 2023 (in thousands) | December 31, 2022 (in thousands) | | :--- | :--- | :--- | | **Cash and cash equivalents** | $110,696 | $160,127 | | **Total current assets** | $297,356 | $332,264 | | **Total assets** | $687,211 | $736,911 | | **Total current liabilities** | $125,707 | $150,241 | | **Long-term debt** | $50,000 | $50,000 | | **Total liabilities** | $256,637 | $287,925 | | **Total Company stockholders' equity** | $445,934 | $463,418 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities significantly increased to **$43.1 million** in Q1 2023, contributing to a **$49.4 million** net decrease in cash and equivalents, ending at **$110.7 million** Cash Flow Summary (Q1 2023 vs Q1 2022) | Cash Flow Activity | Three Months Ended March 31, 2023 (in thousands) | Three Months Ended March 31, 2022 (in thousands) | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(43,103) | $(18,364) | | **Net cash used in investing activities** | $(3,929) | $(4,365) | | **Net cash (used in) provided by financing activities** | $(2,917) | $25,754 | | **Net (decrease) increase in cash and cash equivalents** | $(49,431) | $2,640 | | **Cash and cash equivalents at end of period** | $110,696 | $123,335 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes explain Xperi Inc.'s spin-off, business segments, revenue recognition, Vewd acquisition, debt, stock-based compensation, and lease obligations - Xperi Inc. became an **independent, publicly-traded company** on **October 1, 2022**, following a spin-off from its former parent, Xperi Holding Corporation (now Adeia Inc.)[22](index=22&type=chunk) - The company operates in one reportable business segment, grouped into **four market-based categories**: Pay-TV, Consumer Electronics, Connected Car, and Media Platform[23](index=23&type=chunk) Revenue by Market (Q1 2023 vs Q1 2022) | Market | Q1 2023 Revenue (in thousands) | Q1 2022 Revenue (in thousands) | | :--- | :--- | :--- | | Pay-TV | $60,294 | $64,155 | | Consumer Electronics | $36,735 | $28,091 | | Connected Car | $20,548 | $19,719 | | Media Platform | $9,262 | $6,923 | | **Total revenue** | **$126,839** | **$118,888** | - In connection with the July 2022 acquisition of Vewd, the company issued a **$50.0 million** senior unsecured promissory note, which bears a **6.00%** annual interest rate and matures on July 1, 2025[81](index=81&type=chunk)[82](index=82&type=chunk) - The company recorded a **$1.1 million** impairment charge in Q1 2023 related to operating lease right-of-use assets and property due to the consolidation of its global real estate footprint[112](index=112&type=chunk) - Stock-based compensation expense increased to **$16.0 million** in Q1 2023 from **$8.6 million** in Q1 2022, primarily due to new awards and incremental costs from the spin-off[98](index=98&type=chunk)[99](index=99&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2023 financial results, noting a **7% revenue increase** to **$126.8 million**, higher operating loss, and a decrease in cash to **$110.7 million** due to operations [Results of Operations](index=27&type=section&id=MD%26A_Results_of_Operations) Q1 2023 revenue grew **7%** to **$126.8 million**, driven by Consumer Electronics, Media Platform, and Connected Car, while operating expenses increased due to Vewd acquisition and stock-based compensation - Q1 2023 revenue increased **7%** YoY to **$126.8 million**, driven by growth in Consumer Electronics, Media Platform, and Connected Car, partially offset by declines in Pay-TV[142](index=142&type=chunk) - R&D expense increased by **$4.7 million**, primarily due to employees from the Vewd acquisition and higher stock-based compensation[146](index=146&type=chunk) - SG&A expenses increased by **$7.9 million**, mainly due to higher stock-based compensation and increased outside services and personnel costs[149](index=149&type=chunk) - A non-cash impairment charge of **$1.1 million** was recorded in Q1 2023 related to the consolidation of the company's real estate footprint following the spin-off[153](index=153&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=MD%26A_Liquidity_and_Capital%20Resources) Cash and equivalents decreased by **$49.4 million** to **$110.7 million** in Q1 2023, primarily from operations, with **$50.0 million** in long-term debt maturing July 2025 Liquidity and Cash Flow Summary | Metric | As of/For the Three Months Ended March 31, 2023 (in thousands) | | :--- | :--- | | **Cash and cash equivalents** | $110,696 | | **Net cash used in operating activities** | $(43,103) | | **Net cash used in investing activities** | $(3,929) | | **Net cash used in financing activities** | $(2,917) | - The decrease in cash was primarily due to **$43.1 million** used in operations, **$3.9 million** in capital expenditures, and **$2.9 million** for withholding taxes on restricted awards[163](index=163&type=chunk) - The company has a **$50.0 million** senior unsecured promissory note outstanding with a **6.00%** interest rate, maturing on July 1, 2025[169](index=169&type=chunk)[170](index=170&type=chunk) - Management expects capital expenditures for 2023 to be between **$15.0 million** and **$20.0 million**[167](index=167&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to the Annual Report on Form 10-K for market risk disclosures, noting no material changes since that filing - The company's disclosures about market risk have not materially changed from those presented in its Annual Report on Form 10-K[176](index=176&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2023, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of the end of the reporting period, the CEO and CFO concluded that the company's disclosure controls and procedures were **effective**[179](index=179&type=chunk) - There were no changes in internal control over financial reporting during the first quarter of 2023 that materially affected, or are reasonably likely to materially affect, these controls[181](index=181&type=chunk) PART II [Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, primarily intellectual property and licensing, which management does not expect to materially adversely affect financial position - The company is involved in legal proceedings as a normal part of its business, including enforcing patents and license agreements[183](index=183&type=chunk) - Management does not expect current legal matters to have a **material adverse effect** on the company's overall financial position or liquidity[183](index=183&type=chunk) [Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) No material changes were reported to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2022 - **No material changes** were reported to the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2022[184](index=184&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is not applicable for the current reporting period - Not applicable[185](index=185&type=chunk) [Exhibits](index=35&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including agreements, corporate governance documents, equity award forms, and CEO/CFO certifications - Exhibits filed include CEO and CFO certifications (**31.1, 31.2, 32.1**) and forms of employee restricted stock unit award agreements (**10.1, 10.2**)[190](index=190&type=chunk)

Financial Data and Key Metrics Changes - Total revenue for Q1 2023 was $127 million, an increase of 7% from the prior year, primarily driven by consumer electronics and media platform growth, partially offset by a 6% decline in Pay-TV [32][34] - Non-GAAP gross margin improved to 79%, an increase of over 110 basis points, driven by a revenue mix shift towards consumer electronics [34] - Adjusted EBITDA was $7 million, a 70% increase from the prior year, yielding a 5% adjusted EBITDA margin [35] Business Line Data and Key Metrics Changes - Consumer electronics revenue increased by 31%, driven by growth in home audio and video solutions and strong shipments of game consoles [33] - Media platform revenue rose by 34%, attributed to growth in monetization and contributions from the viewed acquisition [34] - Connected Car revenue increased by 4%, primarily due to growth in AutoSense and AutoStage products [34] Market Data and Key Metrics Changes - The Connected TV Advertising market is expected to more than double to $28 billion by 2026, indicating significant growth potential for the company [18] - The in-vehicle infotainment and monitoring market is projected to double, becoming a $40 billion market by 2027 [24] Company Strategy and Development Direction - The company focuses on driving revenue growth in key areas such as Connected TV Advertising, IPTV, In-Vehicle Infotainment, and In-Vehicle Monitoring [11][12] - The strategy emphasizes independent media platforms that provide personalized consumer experiences, targeting rapidly expanding markets [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year outlook and long-term strategic objectives, highlighting significant progress in key growth areas [7][9] - The company expects operating cash flow to be positive for the remainder of the year and approximately breakeven for the fiscal year [37] Other Important Information - The company reaffirmed its full-year revenue guidance in the range of $510 million to $540 million, with an adjusted EBITDA margin expected between 6% to 10% [38] - The first shipments of TVs powered by TiVo are expected in the second half of 2023, aligning with the holiday buying season [19][57] Q&A Session Summary Question: Upfront revenues from renewals and guidance implications - Management confirmed that the upfront revenue from renewals in Q1 was planned and is part of the annual guidance [42][43] Question: Adoption of AutoSense technology in the US market - Management noted growing interest in Cabin Safety Solutions and engagement with a sizable pipeline of automakers [44] Question: Marketing strategy for TiVo OS in new TVs - Management indicated that there will be a clear marketing campaign to highlight the advantages of the new interface and technology [48][49] Question: Update on the Vestel TV launch - Management expects Vestel TVs to hit retail in late 2023, just before the holiday season [57] Question: Media Platform revenue performance and advertising pressure - Management acknowledged some softness in the advertising market but indicated that growth in monetization and contributions from acquisitions are helping mitigate the impact [59]

Q1 2023 Earnings May 9, 2023 Safe Harbor This presentation contains "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on information available to Xperi Inc. (the "Company") as of the date hereof, as well as the Company's current expectations, assumptions, estimates and projections that involve risks and u ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 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) 2190 Gold Str ...

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XPERI Q2 2022 EARNINGS DECK August 8, 2022 Safe Harbor This document contains "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on Xperi Holding Corporation's (the "Company") current expectations, estimates and projections about the Company's financial results, forecasts, business outlook, strategic prior ...