InterDigital (IDCC) Q4 2023 earnings summary

Executive summary

• FY 2023 revenue increased 20% to $549.6M; net income rose 128% to $214.1M and adjusted EBITDA grew 36% to $345.2M.

• FY 2024 revenue guidance is $620M-$670M, supported by contracted revenue and potential new agreements.

Financial highlights

• Q4 2023 revenue was $105.5M, down 10% YoY; net income was $39.1M, up 21%, and diluted EPS was $1.41, up 31%.

• FY 2023 operating expenses were $328.0M, up 7% YoY; diluted EPS was $7.62, up from $3.07.

• FY 2023 non-GAAP net income was $254.4M, up 64%; non-GAAP diluted EPS was $9.23, up 82%.

Outlook and guidance

• Q1 2024 guidance: revenue $245M-$255M; adjusted EBITDA $116M-$131M; diluted EPS $2.40-$2.95 and non-GAAP diluted EPS $3.02-$3.58.

• FY 2024 guidance: revenue $620M-$670M; adjusted EBITDA $310M-$345M; diluted EPS $4.95-$6.15 and non-GAAP diluted EPS $7.45-$8.76.

• Q1 outlook covers existing licenses and excludes new agreements signed over the rest of the quarter; FY guidance includes potential new agreements during the year.

• Revenue-share costs included in adjusted EBITDA outlook: $66M-$69M for Q1 and $80M-$90M for FY 2024.