Xperi Inc (XPER) Posts Mixed Fiscal Year 2023 Results Amid Strategic Refocus
Revenue: Xperi Inc (NYSE:XPER) reported a slight increase in annual revenue to $521.3 million in FY 2023 from $502.3 million in FY 2022.
GAAP Net Loss: The company saw a GAAP net loss of $139.7 million for the full year, an improvement from a net loss of $761.2 million in the previous year.
Non-GAAP Financials: Non-GAAP operating income stood at $11.2 million for the year, with adjusted EBITDA of $34.7 million.
Earnings Per Share: GAAP loss per share was $3.18, compared to a loss of $18.02 per share in FY 2022. Non-GAAP earnings per share were $0.01.
Strategic Developments: Xperi completed the divestiture of AutoSense and initiated a process to evaluate strategic alternatives for Perceive.
Outlook for FY 2024: The company forecasts revenue between $500 to $530 million with an adjusted EBITDA margin of 12% to 14%.
On February 28, 2024, Xperi Inc (NYSE:XPER) released its 8-K filing, announcing the fourth quarter and full-year 2023 financial results. The company, known for inventing, developing, and delivering technologies that enable extraordinary experiences across various platforms, has shown resilience in its financial performance despite facing industry-wide challenges.
Financial Performance Overview
Xperi's revenue for the full year 2023 saw a modest increase to $521.3 million from $502.3 million in the previous year. This growth reflects the company's ongoing efforts to expand its media platform and connected car solutions. However, the company reported a GAAP operating loss of $129.6 million for the year, which is a significant improvement from the $749.4 million operating loss in 2022. The GAAP net loss also narrowed to $139.7 million from a loss of $761.2 million in the prior year, indicating progress in the company's cost transformation initiatives.
On a non-GAAP basis, Xperi reported an operating income of $11.2 million and adjusted EBITDA of $34.7 million for the full year. Non-GAAP earnings per share stood at $0.01, demonstrating the company's ability to maintain profitability on an adjusted basis.
Strategic Developments and Outlook
CEO Jon Kirchner highlighted the company's focus on building out its TiVo OS footprint and accelerating the deployment of its TiVo Video-over-Broadband and DTS AutoStage solutions. The divestiture of AutoSense and the strategic review of Perceive are part of Xperi's efforts to streamline its business and focus on core growth areas.
For fiscal year 2024, Xperi anticipates revenue to be in the range of $500 to $530 million, with an adjusted EBITDA margin of 12% to 14%. This outlook reflects the company's confidence in its strategic initiatives and its commitment to delivering sustainable, profitable growth.
Key Operating Achievements
The company has secured several important design wins and partnerships throughout the year. Notably, Skyworth, a Top 10 global Smart TV manufacturer, has agreed to integrate the TiVo Operating System into their 2024 Smart TV lineup. Additionally, Xperi's Connected Car business has seen growth, with BMW deploying the DTS AutoStage Video Service and three new contracts secured with major automotive partners.
Financial Health and Balance Sheet
Xperi's balance sheet reflects a cash and cash equivalents position of $142.1 million as of December 31, 2023. The company's long-term debt stands at $50 million, with total equity amounting to $387.1 million. These figures indicate a solid financial position that supports the company's strategic investments and operational needs.
Overall, Xperi's mixed financial results for FY 2023 underscore the company's ongoing transformation and strategic refocusing efforts. With a modest increase in revenue and a significant reduction in net loss, Xperi is positioning itself for future growth and profitability in the dynamic entertainment technology industry.
For detailed financial tables and further information, investors and interested parties are encouraged to review the full 8-K filing.
Xperi Investor Contact: Mike Iburg, VP, Investor Relations, +1 408-321-3827, ir@xperi.com
Media Contact: Amy Brennan, Senior Director, Corporate Communications, +1 949-518-6846, amy.brennan@xperi.com
Explore the complete 8-K earnings release (here) from Xperi Inc for further details.
This article first appeared on GuruFocus.
