Summary of InterDigital (IDCC) FY Conference Call - August 27, 2025 Company Overview - InterDigital is a technology and research company established in 1972, focusing on advanced wireless technologies, video compression, and AI [4][5] - The company has a strong leadership team, including CEO Liren Chen, who joined from Qualcomm [8][9] Core Business Model - InterDigital operates on a dual track model: - **Technology Track**: Research and development of fundamental technologies, contributing to global standards like 5G and video codecs [10][11] - **Business Track**: Monetization through licensing agreements with major companies [13][30] - The company holds a significant patent portfolio of 34,000 assets, up from 19,000 prior to the Technicolor acquisition [27][28] Industry Position and Achievements - InterDigital is recognized as a leader in the development of standards, holding chair positions in over 100 different standards bodies, including 3GPP for cellular technology [22][24] - The company has been listed among the top 100 most innovative companies globally for four consecutive years [25] - In 2023, InterDigital ranked 24th among the top patent filers in Europe [26] Financial Performance - Revenue has been growing at a compound annual growth rate (CAGR) of approximately 25% since 2020, with adjusted EBITDA margins around 60% [33][51] - The company signed over 40 licensing agreements since 2021, including renewals with Apple and Samsung, which are under long-term licenses [29][30] - Annualized recurring revenue (ARR) has increased significantly, reaching approximately $555 million, with goals of $1 billion by 2030 [40][41] Future Growth Strategy - InterDigital aims to achieve $1 billion in ARR by 2030, with specific targets in various segments: - **Smartphones**: Targeting $500 million in ARR by 2027 [40] - **Consumer Electronics and IoT**: Aiming for $200 million by 2030 [41] - **Streaming and Cloud Services**: Targeting over $300 million, currently at zero [41] - The company plans to maintain a strong balance sheet with close to $1 billion in cash, allowing for continued investment in R&D and potential acquisitions [47][48] Key Technologies and Market Trends - Video technology is crucial, accounting for 80-90% of mobile data traffic, and is essential for the streaming ecosystem [16][19] - The shift from 4G to 5G in the automotive sector is expected to drive growth, particularly for connected and autonomous vehicles [44] Conclusion - InterDigital is positioned as a leader in technology innovation and patent licensing, with a robust growth strategy focused on expanding its market presence and enhancing its technology offerings [51]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $44.5 million, up 1% year over year, while subscription revenue was $42.4 million, up 3% year over year [5][22] - Adjusted EBITDA was $4.1 million, consistent with the record from Q1 2025, marking the eighth consecutive quarter of adjusted EBITDA profitability [6][27] - Non-GAAP net profit reached $2.5 million, an improvement of $4.5 million year over year [6][29] - Cash flow from operations was $2.7 million, the highest second quarter result since 2020 [7][29] Business Line Data and Key Metrics Changes - E and T segment revenue grew by 7% year over year to $33.2 million, with subscription revenue up 9% to $32.6 million [24] - M and T segment revenue declined by 14% year over year to $11.2 million, with subscription revenue down 13% to $9.8 million [25] - Average ARR per customer reached a record high, indicating strong customer consolidation around the platform [8][19] Market Data and Key Metrics Changes - The company reported a net dollar retention rate of 101%, above 100% for the fourth consecutive quarter [10][23] - The company anticipates improved M and T gross retention rates in Q4 2025, supported by a renewed contract with Vodafone [6][25] Company Strategy and Development Direction - The company is focusing on enhancing its AI offerings, with plans to expand its AI agents and improve automation in content publishing [12][18] - A reorganization plan was announced, involving a 10% workforce reduction aimed at increasing efficiency and productivity [16][30] - The company aims to achieve double-digit revenue growth and adjusted EBITDA margin by 2028 or sooner [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory despite market uncertainties and geopolitical turbulence [20][36] - The company expects to see sequential growth in M and T revenue in Q4 2025, driven by improved gross retention and new bookings [6][19] - Management highlighted the importance of customer consolidation and the maturity of newer products in driving future growth [20][36] Other Important Information - The company closed its first three AI deals in Q2 2025, indicating a strong sales pipeline with over 100 qualified opportunities [8][9] - The company received multiple industry awards, including recognition as a leader in AI-enabled enterprise video platforms [14][15] Q&A Session Summary Question: What is working well in your incremental new bookings momentum? - Management noted that the maturity of their events offering, customer consolidation, and the introduction of AI products are contributing to increased bookings [40][41] Question: Why do you think churn was elevated and what are you doing to address it? - Management explained that elevated churn in M and T was due to industry shifts towards IP and cloud, but they expect improvements with major customers like Vodafone [44][45] Question: How are your new AI products integrated into your selling motion and pricing? - The AI products are currently offered as upsells, with flexible pricing based on usage and integration into existing offerings [54][56] Question: Can you discuss the bookings mix in terms of new logos versus sales back into the base? - Management indicated that while upsells have been strong, they are seeing an increase in new logos, with a growing pipeline of potential new customers [72][74]

Core Insights - The premiere of the AI story collection "New World Loading" marks the beginning of AIGC content commercialization, with the industry still in its early stages and lacking a complete business model [1] - AI is expected to bring significant changes to commercialization, with a focus on helping creators find advertising and promotional opportunities [1][4] - Current AIGC content cannot fully replicate live-action content, but it shows potential for cost reduction and efficiency in production [3] Industry Trends - The trend of decreasing model costs is evident, with major companies engaging in price competition, leading to a significant drop in costs for large models [4] - The user base for 可灵AI has surpassed 22 million, generating over 168 million videos and 344 million images since its launch, with a revenue of over 150 million yuan in Q1 2025 [4] - The industry is still in its infancy, and companies like 可灵AI are focused on validating market and user demand rather than solely pursuing commercial numbers [4] Product Development - The primary task for 可灵AI is to enhance the foundational model's expression, stability, and controllability before developing new practical product forms [5] - Future product offerings will include simple workflows and creative release modes based on existing models, as well as exploring the value of intelligent agents in video creation [6]

Core Insights - Haivision has launched the latest version of its Kraken video processing platform, integrating Shield AI's object detection technology to enhance intelligence, surveillance, and reconnaissance (ISR) capabilities [1][6]. Group 1: Product Features - The Kraken platform is designed for ISR and situational awareness, capable of encoding, transcoding, and transporting high-quality video and metadata in real-time, even in challenging network conditions [2]. - The new Shield AI's Sentient Tracker software enhances Kraken's capabilities by providing superior object detection for multi-domain operations, utilizing two decades of computer vision research [3][4]. - The integration allows for real-time transcoding of live video streams and the transportation of essential metadata, enabling automatic detection and tracking of objects in complex environments [4][5]. Group 2: Strategic Collaboration - The collaboration between Haivision and Shield AI aims to combine advanced AI object detection with trusted ISR video ecosystems, facilitating faster and more informed decision-making for users [6][7]. - Shield AI's technology is designed to transform raw data into actionable intelligence, enhancing operational effectiveness for defense and public safety organizations [7]. Group 3: Market Position and Applications - Haivision's video solutions are deployed globally across various sectors, including aerospace, government, military, and public safety, supporting critical missions and real-time decision-making [8][10]. - The Kraken platform is a key component of Haivision's ISR video solutions portfolio, which includes other rugged video encoding and transcoding products that meet stringent cybersecurity and interoperability standards [6][8].

Core Viewpoint - The company is entering a phase of implementation for its research outcomes, with an anticipated turning point in performance driven by advancements in video codec technology and strategic partnerships [1][2]. Group 1: Video Codec Technology - The company's video codec technology serves as a competitive moat, with leadership in industry standard formulation and compatibility with heterogeneous computing architectures [1]. - The integration of DeepSeek enhances the understanding capabilities of the company's BlackEye model, leading to the launch of multiple DeepSeek integrated machines that contribute to new growth [1]. - The company is progressing well with key research projects, including in-vehicle video processing technology and AI-generated video content, which are now in the product testing phase [1]. Group 2: Automotive Sector - In 2024, the revenue share from in-vehicle smart cockpit products is expected to rise to 15%, driven by consumer interest in smart cockpit features [2]. - The company collaborates with major automotive manufacturers to develop integrated content and middleware solutions, enhancing the visual experience of smart cockpits [2]. - Partnerships with content providers like Zhejiang Radio and Television Group and iQIYI are expected to diversify revenue streams through new models such as subscription and advertising [2]. Group 3: Industrial and Satellite Applications - The demand for high-definition video transmission and storage is projected to accelerate in the AI era, with over 74% of China's internet traffic being video-related [3]. - The company is one of the few in China with capabilities in ultra-low latency video encoding and AI recognition, serving various sectors including smart transportation and energy [3]. - The integration of advanced models like DeepSeek significantly enhances the company's product capabilities, with faster market deployment anticipated [3]. Group 4: Media and Culture - The company's primary revenue source, expected to account for approximately 61% of total revenue in 2024, benefits from the increase in high-definition channel content [4]. - The company is deeply involved in the formulation of ultra-high-definition industry standards and has supported major events like the Beijing Winter Olympics and the Qatar World Cup [4]. - AI technology is being applied in video production processes, enhancing content quality and expanding business opportunities [4]. Group 5: Financial Projections - Revenue forecasts for the company from 2025 to 2027 are projected at 439 million, 587 million, and 735 million yuan, reflecting year-on-year growth rates of 43.01%, 33.93%, and 25.14% respectively [5]. - The net profit attributable to the parent company is expected to reach 12 million, 34 million, and 59 million yuan during the same period, with significant growth rates of 111.59%, 187.25%, and 73.53% [5]. - The company is valued at a price-to-sales ratio (PS) of 8, 6, and 5 for the years 2025 to 2027, indicating a favorable position compared to peer companies [5].

Company Participation in Conferences - Beamr Imaging Ltd. will present at the Ladenburg Thalmann Technology Innovation Expo in New York on May 21, 2025, at 10:30 am ET [2] - The company will also participate virtually in the Needham Technology, Media, & Consumer 1x1 Conference on May 12, 2025, with one-on-one meetings [1] Company Overview - Beamr is a leader in content-adaptive video optimization, trusted by major media companies such as Netflix and Paramount [3] - The company's perceptual optimization technology (CABR) is supported by 53 patents and has won an Emmy® Award for Technology and Engineering [3] - Beamr's technology can reduce video file sizes by up to 50% while maintaining quality [3] Product Offering - Beamr Cloud is a high-performance, GPU-accelerated video optimization service available to Amazon Web Services (AWS) and Oracle Cloud Infrastructure (OCI) customers [4] - The service enables cost-effective video modernization to advanced formats like AV1 and includes efficient AI-powered enhancements [4]

Core Insights - Vislink Technologies, Inc. announced that its DragonFly V 5G miniature wireless video camera transmitter won the TV Tech Best of Show Award at NAB 2025, highlighting its leadership in high-quality live video technology [1][3] Company Overview - Vislink Technologies is a global leader in capturing, delivering, and managing high-quality live video and associated data, with over 50 years of experience in video communications [8] - The company specializes in providing live streaming solutions using RF, bonded cellular, 5G, and AI-driven technologies, enabling seamless and secure live video sharing for broadcasters, defense, and public safety agencies [8] Product Features - The DragonFly V 5G is designed for immersive, on-the-move live productions, featuring an ultra-compact design and advanced HD video transmission capabilities over 5G [2][4] - It is recognized as the world's smallest cellular bonding transmitter, ideal for challenging environments, and supports applications in sports broadcasting, news coverage, and public safety [2][7] - Key features include ultra-compact and lightweight design, 5G and Wi-Fi support, HEVC video encoding for efficient streaming, remote configuration via LinkMatrix, and a durable build for demanding conditions [9] Strategic Partnerships - Vislink has partnered with Ericsson to join its Enterprise Wireless Solutions Industry 4.0 Partner Program, aiming to drive innovation in private 5G networks for live video transmission [5]

Core Insights - Vislink Technologies, Inc. announced that its DragonFly V 5G miniature wireless video camera transmitter won the TV Tech Best of Show Award at NAB 2025, highlighting its innovation in live video transmission technology [1][3]. Product Features - The DragonFly V 5G is designed for immersive, on-the-move live productions, featuring an ultra-compact design and advanced HD video transmission capabilities over 5G, making it the world's smallest cellular bonding transmitter [2][12]. - Key features include support for 5G and Wi-Fi, HEVC video encoding for high-quality streaming, remote configuration via a cloud-based management platform, and a durable build optimized for demanding environments [12]. Strategic Partnerships - Vislink has partnered with Ericsson to join its Enterprise Wireless Solutions Industry 4.0 Partner Program, aiming to drive innovation in private 5G networks and enhance live video transmission capabilities across various industries [5]. Industry Context - The demand for private 5G networks is growing, and Vislink's solutions are positioned to support this transformation, particularly in sectors such as broadcasting and public safety [4].

Core Insights - Beamr Imaging Ltd. will present its high-performance AV1 solutions at the 2025 NAB Show in Las Vegas, emphasizing competitive pricing and advanced technology [1][4] - The company's AV1 technology, accelerated by NVIDIA GPUs, offers scalable and efficient upgrades with up to 30% additional compression compared to existing solutions [2][3] - Beamr's AV1 encoding is available at a quarter of the cost or less compared to CPU-based alternatives, aligning costs with AVC (H.264) encoding [3] Technology and Performance - Beamr's technology integrates with NVENC, NVIDIA's hardware-accelerated video encoder, enabling superior performance and high-quality results for AV1 upgrades [2][5] - The AV1 codec provides improved image quality and compression, but its adoption has been limited due to complexity and high costs [4] - Beamr's optimized AV1 files maintain full accuracy in AI applications, such as facial recognition and machine learning models [4] Market Accessibility - Beamr's solutions are readily accessible on cloud platforms like Amazon Web Services (AWS) and Oracle Cloud Infrastructure (OCI), as well as private cloud and on-premises environments [3][8] - The company aims to simplify AV1 adoption for various industries, including media, entertainment, and AI [3][4] - Beamr's video optimization technology is backed by 53 patents and has received an Emmy® award for Technology and Engineering [7]

Group 1 - Beamr Imaging Ltd. will present virtually at the Loop Capital Markets 2025 Investor Conference on March 10, 2025, with CEO Sharon Carmel and CFO Danny Sandler as presenters [1] - Beamr is a leader in content-adaptive video optimization and modernization, serving major media companies like Netflix and Paramount [2] - The company's perceptual optimization technology (CABR) is protected by 53 patents and has won an Emmy® award, enabling video file size reduction by up to 50% while maintaining quality [2] Group 2 - Beamr Cloud is a high-performance, GPU-based video optimization service available to AWS and Oracle Cloud customers, facilitating video modernization to advanced formats like AV1 and HEVC [3] - The service is designed for businesses and video professionals across various industries and is ready for video AI workflows [3]