The following is a summary of the Xperi Inc. (XPER) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Xperi reported Q3 revenue of $133 million, up 2% from the previous year, and 6% when adjusting for the AutoSense divestiture.

• Non-GAAP adjusted operating expenses declined 18% or $18 million from the prior year, primarily due to ongoing cost optimization efforts and the AutoSense divestiture.

• Adjusted EBITDA was $31.4 million or 24% of revenue, more than tripling from the prior year quarter.

Business Progress:

• Xperi is focusing on connected TV advertising, in-cabin entertainment, and TiVo video over broadband as key growth areas.

• Their goal is to achieve 20 million monetizable endpoints by 2025, with expectations of generating nearly $200 million of incremental revenue in 2026 relative to 2023.

• Recent divestitures of AutoSense and Perceive have allowed for a sharper strategic focus and increased profitability.

• Notable achievements in Q3 include progress with the TiVo OS Smart TVs, despite some partner delays.

Opportunities:

• Positive effects from divestitures and strategic focus on media platforms and licensing are expected to drive profitability and long-term growth.

• Connected TV advertising, in-cabin entertainment, and TiVo video over broadband are seen as major future revenue sources as these markets are projected to double over the next five to seven years.

Risks:

• Partner delays and mixed macro environment impacted business, particularly in the timing of rollouts for TiVo OS Smart TVs.

• There are emerging signs of market weakness in the connected car sector which may impact per unit HD Radio business.

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