Xperi (XPER) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue increased 2% year-over-year to $132.9–$133 million, driven by Pay TV and Connected Car growth, offset by declines in Consumer Electronics and Media Platform.

• Non-GAAP adjusted EBITDA was $31.4 million (23.7%–24% margin), more than tripling from the prior year; non-GAAP net income reached $23.3 million, with non-GAAP EPS of $0.51.

• Net loss for Q3 2024 was $16.8–$19.8 million, a significant improvement from the prior year.

• Completed divestitures of AutoSense and Perceive, with the Perceive sale to Amazon netting approximately $60 million after tax planning.

• Repurchased 1.1 million shares for $10 million at an average price of $8.92 per share during Q3 2024.

Financial highlights

• Q3 2024 revenue: $132.9–$133 million (up 2% year-over-year); non-GAAP adjusted operating expenses declined 18% year-over-year.

• GAAP net loss was $16.8–$19.8 million; GAAP loss per share was $(0.37).

• Non-GAAP operating income was $24.5 million; adjusted EBITDA margin was 23.7%–24%.

• Cash and cash equivalents at quarter end were $72.7–$73 million.

• Operating expenses decreased 6% year-over-year in Q3 2024.

Outlook and guidance

• 2024 revenue guidance revised to $490–$505 million from $500–$530 million, reflecting market softness and partner delays.

• Adjusted EBITDA margin outlook raised to 14–16% from 12–14%.

• Full-year operating cash flow expected to be a $50–$60 million use of cash, impacted by minimum guarantee deals, divestiture costs, and lower revenue.

• Year-end cash expected to exceed $100 million following the Perceive sale.

• Proceeds from Perceive sale expected to cover operational needs and debt obligations through at least the next 12 months.