Xperi (US:XPER)2023-03-03 22:53Consumer Behavior and Media Consumption - OTT media now accounts for 38% of weekly video viewing for adults ages 18 and older, reflecting a significant shift in consumer behavior towards streaming platforms [25] - Average weekly video viewing has increased by 10%, from 40 hours in 2015 to 44 hours in 2020, driven by increased content availability and new consumption platforms [25] Automotive Technology and Connectivity - 37% of consumers express eagerness to switch to cars with increased connectivity, indicating a growing demand for connected car technologies [25] - The company aims to transform the automotive experience by integrating high-quality multimedia and personalization into connected cars [26] - DTS AutoStage was launched by Daimler in September 2020, enhancing in-cabin entertainment experiences for connected cars [53] - DTS AutoSense technology enables real-time detection of occupants and objects, enhancing safety and personalization in vehicles [55] Revenue and Market Growth - Revenues from the shipment of entertainment devices in North America are expected to surpass $190 billion in 2023, with a projected growth of 3% year-over-year through 2025 [25] - The independent media platform allows Smart TV OEMs to generate recurring revenues throughout the typical 5-year lifecycle of TV ownership [26] - The Managed IPTV Service enables operators to launch branded Pay-TV services without heavy infrastructure investments, streamlining the service delivery process [34] - The company anticipates monetization through ad-supported content, SVOD services, and data licensing as the TiVo OS platform scales [64] Technology and Innovation - The company’s Perceive subsidiary delivers AI solutions that run datacenter-class models at the edge, enhancing performance while reducing power consumption [47] - The company’s audio technologies are licensed to major consumer electronics manufacturers, enhancing the immersive audio experience across various devices [44] - The company’s UX solutions integrate virtual channels of internet-delivered video, providing a unified media experience for consumers [29] - TiVo OS drives consumer engagement with rich metadata and AI-defined content recommendations, integrating services from partners like Disney and YouTube TV [60] - TiVo Stream 4K is marketed as a best-in-class streaming media player, sold through various retail and broadband channels [61] - The TiVo OS for Smart TVs is expected to launch in 2023, offering a software-as-a-service model for OEMs [62] - Ongoing investment in R&D is crucial for maintaining competitiveness in audio, imaging, and video discovery technologies [82] Intellectual Property and Competition - The company holds approximately 753 U.S. issued patents and 984 foreign issued patents as of December 31, 2022, with the last patent expiring in 2041 [81] - The company faces competition from major players in various sectors, including Dolby Laboratories in audio licensing and comScore in audience data analytics [68][76] Financial Position and Risk Management - As of December 31, 2022, the company had approximately $160.1 million in cash held with financial institutions, primarily domestic [339] - The company has established foreign currency derivative contracts with a total notional amount of $59.6 million as of December 31, 2022 [344] - The company has implemented risk management strategies to mitigate the impact of foreign currency exchange rate fluctuations [342] - The company is exposed to potential fines of up to RMB 50 million (approximately $7.7 million) or 5% of annual revenue for violations of China's Personal Information Protection Law [92] Employee Relations and Development - The company has a global talent base of approximately 2,100 full-time employees as of December 31, 2022 [93] - The company invested in a global online learning platform in 2020, creating over 200 courses for employee skill development [97] - The company has not experienced any organized work stoppages and considers its relationships with employees to be positive [101] - The company has a strong pay-for-performance culture, benchmarking total rewards annually to remain competitive [95] Environmental Impact - The company aims to enhance its environmental impact by conducting a greenhouse gas inventory and increasing energy efficiency [103] Regulatory Compliance - The company is subject to the California Consumer Privacy Act (CCPA), which became effective on January 1, 2020, and was strengthened by the California Privacy Rights Act (CPRA) effective January 1, 2023 [90]