Xperi (XPER) Q4 2023 earnings summary

Executive summary

• Q4 revenue was $137.233M, up 1% YoY; FY2023 revenue was $521.334M, up 4%.

• Strategic priorities include TiVo OS, IPTV and DTS AutoStage, with combined revenue from key markets targeted to exceed $310M in 2026, versus ~$114M in FY2023.

• AutoSense and related imaging were divested, while Centerview Partners was engaged to explore strategic alternatives for Perceive.

Financial highlights

• Q4 GAAP operating loss was $29.803M; GAAP operating expenses, including cost of revenue, fell 62%, largely reflecting prior-year goodwill impairment, while adjusted operating expenses excluding cost of revenue fell 6%.

• Q4 non-GAAP operating income was $7.1M versus a $4.7M loss; Adjusted EBITDA was $13.393M versus $3.6M, and non-GAAP EPS was $0.11 versus $0.08.

• Q4 GAAP net loss attributable to the Company was $24.792M, or $0.57 per share; prior-year Q4 GAAP operating loss included $250.555M of goodwill impairment.

• FY2023 GAAP operating loss was $129.637M; non-GAAP operating income was $11.2M, Adjusted EBITDA was $34.672M and non-GAAP EPS was $0.01.

Outlook and guidance

• FY2024 revenue guidance is $500M–$530M on GAAP and non-GAAP bases; Adjusted EBITDA margin guidance is 12%–14%.

• FY2024 operating cash flow outlook is $20M–$30M.

• FY2024 milestones include more than 2M active TiVo OS TVs, at least 2.4M IPTV subscribers, over 7M AutoStage vehicles and three additional AutoStage design wins.

• 2026 revenue across Connected TV/Media Platform, IPTV and DTS AutoStage is projected to exceed $310M, versus ~$114M for FY2023.