Xperi (XPER)2025-05-07 22:00Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was 119 million in Q1 2024, and a 2% decrease when adjusting for divestitures [17] - Adjusted EBITDA was 5 million in the prior year quarter [6][19] - Non-GAAP earnings per share was 0.05 per share in the previous year [19] Business Line Data and Key Metrics Changes - Pay TV revenue was 23 million, primarily due to lower production volumes [17] - Connected Car revenue rose 37% to 8 million, down 30% due to lower middleware revenue and timing shifts in advertising commitments [17] Market Data and Key Metrics Changes - IPTV subscriber households increased to over 2.75 million, a 36% year-over-year increase [13] - DTS AutoStage finished the quarter with a footprint of 11 million vehicles in over 130 countries [13] Company Strategy and Development Direction - The company is focused on three growth solutions: Connected TV advertising, in-cabin entertainment, and TiVo video over broadband [6][7] - The rollout of the TiVo One ad platform aims to maximize engagement and monetization across smart TVs and video over broadband devices [8][10] - The company is expanding its partnerships with TV manufacturers and expects to add at least one to two new TV partners this year [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year growth goals despite macroeconomic uncertainties [5] - The company is maintaining its financial outlook for the year, with modest impacts from tariffs observed so far [21][41] - Management anticipates positive cash flow in the second half of the year, with Q1 typically being the weakest quarter [30] Other Important Information - The company completed a financing arrangement with PNC Bank for a $55 million line of credit, which will support operational needs [20] - The company launched over 80 additional entertainment content partner applications on the TiVo OS platform [11] Q&A Session Summary Question: Regarding IPTV and user base growth - Management indicated that improvements in subscribership revenue will play out throughout the year, with ongoing efforts to assist deployments [24] Question: Capacity to handle increased IPTV customers - Management confirmed that they are staging and working with customers to ensure they can handle the increase in IPTV customers over time [28] Question: Positive cash flow expectations - Management stated that while Q1 is seasonally weak, they expect the balance of the year to be positive, particularly in the second half [30] Question: Additional OEMs in the pipeline for TV companies - Management expects to add at least one to two TV partners this year beyond the existing eight [34] Question: Target for active users by year-end - Management is on track to exit the year with 5 million monthly active users and expects to reach at least 7 million by the end of next year [35][36] Question: Macro factors influencing guidance - Management is maintaining guidance despite uncertainties, indicating strong execution in Q1 [41][42] Question: Opportunities for ARPU growth with TiVo One - Management highlighted the value of the homepage ad unit and its potential to enhance monetization across platforms [43][44] Question: Updates on U.S. TiVo OS devices - Management noted that the U.S. footprint will grow as more TVs and set-top boxes are rolled out, increasing advertiser interest [46]