InterDigital Raises First Quarter Outlook

Core Viewpoint - InterDigital, Inc. has signed a new multi-year, worldwide, non-exclusive, royalty-bearing license agreement with a major Chinese smartphone vendor, leading to an increased outlook for the first quarter of 2025 [1][2]. Financial Outlook - The revised first quarter 2025 outlook includes an increase in annualized recurring revenue (ARR) by $40 million to approximately $500 million [2]. - Current revenue expectations for the first quarter are projected to be between $202 million and $206 million, compared to the prior estimate of $112 million to $116 million [4]. - Adjusted EBITDA is expected to be between $143 million and $150 million, up from the previous range of $53 million to $60 million [4]. - Diluted EPS is now forecasted to be between $2.78 and $2.99, significantly higher than the prior estimate of $0.58 to $0.79 [4]. - Non-GAAP EPS is projected to be between $3.66 and $3.90, compared to the previous range of $1.19 to $1.42 [4]. Market Position - InterDigital now holds licenses with seven of the ten largest smartphone vendors, covering nearly 80% of the global smartphone market [2]. - The new agreement reflects the growing value of InterDigital's technology and the increasing momentum of its business [2]. Company Overview - InterDigital is a global research and development company focused on wireless, video, AI, and related technologies, providing foundational technologies for various communication and entertainment products [5]. - The company has a history of innovation in wireless technology, from early digital cellular systems to advanced 5G and Wi-Fi technologies [5].