InterDigital raises annual forecast after strong Q3

InterDigital surprised with impressive results in the third quarter of 2024, exceeding the upper end of its guidelines. Thanks to significant market deals and a dynamic business environment, the annual forecast was raised by $145 million to $860 million. Milestones include a new license agreement with the OPPO Group, bringing the total to approximately 70% of global smartphone devices now being licensed. The agreement with OPPO, one of the world's largest smartphone manufacturers, highlights the strength of InterDigital's patent portfolio in the fields of wireless, video, and AI. Existing licenses with industry leaders such as Samsung, Apple, and Xiaomi further bolster this position. InterDigital has also made significant progress in the consumer electronics and IoT sectors, as evidenced by recently signed agreements with Panasonic and TPV, a leading television manufacturer. These agreements cover a variety of key technologies, including 4G, 5G, Wi-Fi, and HEVC video patents. The company is increasingly focusing on arbitration to resolve global licensing disputes more efficiently. A current example is the binding arbitration agreement with Lenovo to clarify the terms of a new license agreement. Concurrently, arbitration proceedings with Samsung are underway, with a resolution expected by the end of the year. Looking ahead, InterDigital is pursuing ambitious goals. At the investor day in September, the company announced its target to achieve annual revenue of $1 billion by 2030. A significant portion of this is expected to come from smartphone programs, with a revenue target of $500 million set for 2027. The latest agreements demonstrate that InterDigital is well-positioned to achieve these goals and strengthen its position in the areas of 5G, video, and Wi-Fi. Through innovative technologies and strong partnerships, InterDigital is well-equipped to secure future growth in key industries such as smartphones, consumer electronics, and IoT, as well as in new cloud-based video services.