Dolby Laboratories (DLB) 45th Annual William Blair Growth Stock Conference summary

Business evolution and technology transitions

• Over 65 years, the company has evolved through major technology shifts, from analog to digital, DVD to streaming, and now to immersive experiences like Dolby Atmos and Vision.

• Expansion into new ecosystems includes movies, TV, gaming, sports, music, and user-generated content, driven by a focus on enhancing both quality and efficiency for creators and consumers.

• Revenue is earned through royalties on devices using their technologies, with a strong emphasis on serving the needs of content creators, distributors, and device manufacturers.

• The company’s technologies are integral to iconic entertainment experiences, contributing to memorable moments across film, music, and sports.

Revenue segmentation and growth drivers

• Revenue is split between foundational audio technologies and growth products like Dolby Atmos, Dolby Vision, and imaging patents.

• Foundational technologies, making up 60% of licensing revenue, are expected to grow in the low single digits, influenced by overall consumer device shipments.

• Growth products have increased from 15% to 40% of licensing revenue over four years, with a 20% CAGR, driven by rising attach rates across devices.

• The company expects continued 15–25% annual growth in these advanced technologies as device shipments stabilize.

Product innovation and consumer impact

• Dolby Atmos and Vision expand creative possibilities, enabling more immersive and emotive experiences for consumers.

• Dolby Atmos allows for 3D spatial audio mixing, enhancing realism in entertainment.

• Dolby Vision delivers high dynamic range and richer color, significantly improving visual storytelling.

• These innovations drive value for content creators, device manufacturers, and ultimately consumers.