Dolby Laboratories Reports First Quarter 2025 Financial Results

Core Insights - Dolby Laboratories reported strong financial results for Q1 FY2025, with continued momentum in Dolby Atmos and Dolby Vision across various device categories [1][9] - The company announced a cash dividend of $0.33 per share, payable on February 19, 2025 [4] - Dolby's financial outlook for FY2025 includes estimated total revenue ranging from $1.33 billion to $1.39 billion, with licensing revenue estimated between $1.22 billion and $1.28 billion [10] Financial Highlights - Total revenue for Q1 FY2025 was $357 million, up from $316 million in Q1 FY2024, representing a 13% increase [9] - GAAP net income was $68 million or $0.70 per diluted share, compared to $67 million or $0.69 per diluted share in the same quarter last year [9] - Non-GAAP net income for Q1 FY2025 was $111 million or $1.14 per diluted share, compared to $99 million or $1.01 per diluted share in Q1 FY2024 [9] Business Developments - At CES, Dolby's partners announced a variety of new products incorporating Dolby technologies, including soundbars, TVs, and automotive displays [9] - Dolby Atmos was featured in all eight of the 2025 Grammy nominees for Best New Artist, and seven out of eight nominees for Record of the Year and Album of the Year [9] - In 2024, over 80% of the domestic box office and nearly 70% of the global box office came from titles released in Dolby Atmos and Dolby Vision [9] Financial Outlook - For Q2 FY2025, Dolby estimates total revenue to range from $355 million to $385 million, with licensing revenue between $330 million and $360 million [10] - Gross margins are anticipated to be approximately 89% on a GAAP basis and approximately 91% on a non-GAAP basis [10] - Operating expenses are expected to range from $230 million to $240 million on a GAAP basis and from $190 million to $200 million on a non-GAAP basis [10]