TiVo OS footprint approaching one million activated Smart TVs

Xperi Inc. Announces Third Quarter 2024 Results

SAN JOSE, Calif. — Xperi Inc. (NYSE: XPER) (the “Company” or “Xperi”), an entertainment technology company that invents, develops, and delivers technologies that enable extraordinary experiences, today announced third quarter 2024 financial results for the three-month period ended September 30, 2024.

“With the Perceive transaction now closed, we are fully focused on entertainment-based solutions to grow our independent media platform and licensing businesses. Our TiVo OS Smart TV footprint is approaching one million units, and with accelerating partner activity we believe we remain on-track toward our year-end target of two million active connected devices,” said Jon Kirchner, chief executive officer of Xperi.

Mr. Kirchner continued, “Our innovation pipeline continues to yield exciting new product solutions, including those benefiting from our prior work in the AI space. As an example, we recently launched our award-winning, AI-driven DTS Clear Dialogue solution, which addresses a real-world problem for TV audiences – dialogue intelligibility. Lastly, and very importantly, our business transformation efforts have helped us drive operating leverage and deliver meaningful improvements in our profitability metrics, in line with the three-to-five-year targets that we announced in September of 2022.”

Financial Highlights

GAAP Highlights ($ millions, except per share data)         Q3 FY24    Q3 FY23
----------------------------------------------------------  -------  ---------
Revenue                                                      $132.9  $130.4[1]
GAAP operating loss                                         ($18.6)    ($31.1)
GAAP net loss[2]                                            ($16.8)    ($41.4)
GAAP loss per share[2]                                      ($0.37)    ($0.96)

Non-GAAP[3] Highlights ($ millions, except per share data)  Q3 FY24    Q3 FY23
----------------------------------------------------------  -------  ---------
Revenue                                                      $132.9  $130.4[1]
Non-GAAP operating income                                     $24.5       $4.3
Non-GAAP net income/(loss)[2]                                 $23.3     ($3.3)
Non-GAAP earnings/(loss) per share[2]                         $0.51    ($0.08)
Non-GAAP adjusted EBITDA                                      $31.4       $9.3

1. The contribution from AutoSense and the related imaging business, which was divested on January 31, 2024, accounted for $5.3 million of revenue in Q3 2023.
2. Attributable to the Company.
3. For further information on supplemental non-GAAP metrics included in this press release, refer to the “Non-GAAP Financial Measures” description and “GAAP to Non-GAAP Reconciliations” provided in the financial statement tables in the full press release.

Recent Key Operating Achievements

Media Platform

• TiVo OS footprint is now approaching one million activated Smart TVs and tracking toward our year-end goal of two million Smart TVs.
• Global TV manufacturers and retailers are accelerating the deployment of “Powered by TiVo” Smart TVs in important growth markets.
• Smart TVs “Powered by TiVo” are now generally available across Europe from Panasonic, Argos, Sharp and numerous Vestel brands.

Connected Car

• Awarded our second DTS AutoStage video design win by a Japanese automotive OEM with deployments expected to begin in 2025.
• Signed a new AutoStage license agreement with an American car company.
• AutoStage is now integrated into more than eight million vehicles across 146 countries – double the number of vehicles since August 2023 – with more than five million vehicles in North America that utilize both AutoStage and HD Radio.
• HD Radio is now being deployed in new models from Ford, Cadillac, Volkswagen, Audi, Porsche, Mercedes-Benz, Genesis, BMW, Nissan, and Aston Martin.

Pay TV

• Ended Q3 2024 with over 2.4 million Video-over-Broadband (IPTV) subscriber households, continuing the trend of consecutive quarters of double-digit year-over-year subscriber growth.
• We executed an agreement with NCTC for a new Broadband TV solution, providing a low-cost over-the-top content bundle for operators, expanding the opportunity for U.S.-based monetization through our TiVo platform.
• Expanded TiVo Broadband with the signing of two new operators (MSC and Westman) bringing the total number of operators to 12, of which eight were added this year.
• Signed a significant multi-year classic guide renewal with Panasonic, extending the commercial use of our core Pay TV technology.

Consumer Electronics

• We launched DTS Clear Dialogue, a new on-device solution that leverages the latest advancements in AI-based audio processing to improve dialogue intelligibility for TVs. At the IFA Berlin tradeshow in September, our Clear Dialogue solution won two Best of IFA awards.
• Signed multiple renewals with existing customers, including Vestel, Honor, and Masimo.

Perceive

• Announced sale to Amazon.com Services LLC for gross proceeds of $80 million in cash.
• Transaction was announced on August 19th and closed on October 2nd.
• With additional tax planning, net proceeds now expected to be approximately $60 million.

Capital Allocation

• Repurchased approximately 1.1 million shares in the quarter at an average price of $8.92.