Xperi Reports Positive Q2 2024 Results

The technology company Xperi, which has been undergoing a multi-year business transformation since its separation from Adeia, reported positive business development for the second quarter of 2024. CEO Jon Kirchner and CFO Robert Andersen discussed the company's progress and new initiatives during the earnings call. Xperi recorded sales of approximately $120 million, representing a 1% increase compared to the previous quarter and a 2% decrease compared to the same quarter the previous year, accounting for the 2024 divestiture of the AutoSense business. These figures reflect the strategic decisions and optimization measures Xperi has undertaken. Particularly noteworthy are the positive developments in the Connected Car and IPTV segments. Revenue from the Connected Car segment grew by 41%, primarily due to a significant multi-year program with an Asian Tier-1 automotive supplier. The IPTV segment also showed strong growth, reaching 2.25 million subscriber households, helping the company offset the seasonal business fluctuations in the traditional pay-TV sector. A crucial step in Xperi's transformation was expanding the board of directors by adding Jeremi Gorman and Rod Randall, experts in ad tech, monetization, and capital allocation. These personnel enhancements aim to optimally prepare the company for future growth. Kirchner particularly emphasized the strategy to monetize over 20 million end devices by the end of 2025. This includes both the use of TiVo OS in smart TVs and embedding DTS AutoStage technology in vehicles. It is expected that these approaches will generate additional revenue of approximately $200 million by 2026. Furthermore, Xperi plans to launch the TiVo OS in the US and has recently gained its seventh smart TV partner, one of the top five providers in the US market. In Europe, TiVo OS is already available in 15 countries. Regarding market outlook and strategic alignment, CFO Andersen also expressed confidence. He explained that non-GAAP operating expenses were reduced by 15% in the second quarter, influenced by the divestiture of AutoSense and ongoing cost reduction measures. EBITDA increased to $15 million, nearly tripling compared to the previous year. Investors showed interest and posed targeted questions about the company's long-term strategy and growth plans. Xperi remains optimistic and focused on advancements in smart TVs, connected cars, and Perceive technology to continue on its growth trajectory. With these developments, Xperi remains firmly committed to shaping and expanding the market for connected entertainment and electronics.