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Xperi Inc (XPER) Q1 2024 Earnings: Misses Revenue Estimates, Narrows Losses

GuruFocus Research
·3-min read

  • Revenue: Reported at $118.8 million for Q1 FY24, falling short of estimates of $122.11 million.

  • GAAP Net Loss: Recorded at $13.4 million, significantly improving compared to $32.9 million in Q1 FY23, but performing worse than the estimated loss of $6.83 million.

  • GAAP Loss per Share: Came in at $0.29, an improvement from the previous year's $0.76, but still above the estimated loss per share of $0.15.

  • Non-GAAP Operating Income/Loss: Showed a minimal non-GAAP operating loss of $0.9 million, a downturn from a non-GAAP operating income of $0.9 million in Q1 FY23.

  • Adjusted EBITDA: Amounted to $5.4 million, slightly below the $6.8 million reported in the same period last year.

  • Non-GAAP Earnings/Loss per Share: Reported a non-GAAP loss per share of $0.05, contrasting with a non-GAAP earnings per share of $0.04 in Q1 FY23.

  • Annual Revenue Outlook: Reaffirmed at $500 to $530 million for FY24, aligning with previous forecasts.

On May 8, 2024, Xperi Inc (NYSE:XPER) disclosed its financial outcomes for the first quarter of the fiscal year 2024, as detailed in its 8-K filing. The company, known for its innovative entertainment technology solutions, reported a revenue of $118.8 million for the quarter, which shows a decline from the previous year's $126.8 million and falls short of the estimated $122.11 million.

Company Overview

Xperi Inc operates primarily in the consumer and entertainment technology sector, offering a diverse portfolio of software and services. The company's business is segmented into Pay-TV, Consumer Electronics, Connected Car, and Platform Solutions, with the majority of its revenue derived from the Consumer Electronics segment.

Financial Performance Insights

The reported revenue of $118.8 million represents a decrease from the year-ago quarter, primarily impacted by the divestiture of the AutoSense and imaging business. Despite this, Xperi has seen robust growth in its Connected Car, Media Platform, and Video-over-Broadband segments. The GAAP net loss improved significantly to $13.4 million from a loss of $32.9 million in the previous year, and the loss per share narrowed to $0.29 from $0.76.

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Non-GAAP measures also reflected a tightening of losses, with a non-GAAP operating loss of $0.9 million compared to a non-GAAP operating income of $0.9 million in Q1 FY23, and a non-GAAP loss per share of $0.05 compared to earnings of $0.04 per share in the prior year.

Strategic and Operational Highlights

CEO Jon Kirchner emphasized the company's focus on strategic initiatives and cost reduction to drive future growth. Notable achievements include the expansion of the TiVo OS footprint, double-digit growth in Video-over-Broadband subscriptions, and accelerated deployments in Connected Car technology. Additionally, Xperi's collaboration with global brands like Disney+ and major consumer electronics manufacturers underscores its influence and reach in the entertainment technology space.

Outlook and Forward-Looking Statements

Xperi reaffirmed its full-year 2024 guidance, projecting revenues between $500 million and $530 million, with an Adjusted EBITDA margin of 12% to 14%. These projections reflect the company's confidence in its strategic direction and operational adjustments aimed at long-term growth and profitability.

The company's balance sheet remains solid with $95.2 million in cash and cash equivalents. Total assets were reported at $630.39 million, with liabilities totaling $248.63 million, demonstrating a healthy financial position to support ongoing and future initiatives.

In conclusion, while Xperi Inc faces challenges such as revenue declines due to divestitures, its strategic initiatives and focus on high-growth areas are poised to drive future performance. The company's ability to narrow losses and maintain a robust balance sheet provides a stable foundation for continued innovation and market expansion.

For detailed financial figures and further information, refer to the full earnings report and the upcoming earnings call scheduled for later today.

Explore the complete 8-K earnings release (here) from Xperi Inc for further details.

This article first appeared on GuruFocus.