Xperi Inc (XPER) Reports Revenue Growth and Narrowed Losses in Q3 2023
Xperi Inc (NYSE:XPER) announces a 6% year-over-year revenue growth in Q3 2023.
Non-GAAP operating income shows improvement, turning from a loss in Q3 2022 to a gain in Q3 2023.
The company narrows its full-year revenue outlook and expects an Adjusted EBITDA Margin of 6% to 8%.
Key operational milestones include the integration of TiVo OS in Vestel Smart TVs and DTS AutoStage Video Service in BMW cars.
On November 13, 2023, Xperi Inc (NYSE:XPER) released its 8-K filing, announcing its financial results for the third quarter ended September 30, 2023. The company reported a solid financial performance with a 6% increase in revenue compared to the prior year's trailing twelve months, reflecting significant design wins and strong business momentum.
Financial Performance Overview
Xperi Inc (NYSE:XPER) reported third-quarter revenue of $130.4 million, a notable increase from $121.6 million in the same period last year. The company's GAAP operating loss significantly improved to $(31.1) million in Q3 2023 from $(399.1) million in Q3 2022. Non-GAAP operating income turned positive at $4.3 million, compared to a loss of $(5.9) million in the prior year's quarter. Adjusted EBITDA also saw a positive shift, reaching $9.3 million against a $(0.3) million loss in Q3 2022. The non-GAAP loss per share narrowed to $(0.08), improving from $(0.22) in the same quarter of the previous year.
Operational Highlights
The company's Media Platform saw Vestel shipping Smart TVs powered by TiVo, and a fourth Smart TV OEM was signed to integrate the TiVo Operating System into its 2024 European TV lineup. Xperi's Connected Car achievements include the integration of DTS AutoStage Video Service in the new generation BMW 5-Series and a second program with another major European automotive OEM. The Pay TV segment continued to grow with double-digit year-over-year IPTV subscriber growth for the 17th consecutive quarter. In Consumer Electronics, Xperi signed several multi-year license renewals and a Top-3 global PC OEM to deploy DTS:X audio solutions. The Perceive segment also saw a license agreement with a Big Tech customer, validating its approach to low-power AI at the edge.
Financial Outlook
For fiscal 2023, Xperi Inc (NYSE:XPER) is narrowing its outlook, with revenue expected to be between $518 to $532 million. The company anticipates an Adjusted EBITDA Margin of 6% to 8%, reflecting ongoing efforts to drive cost transformation and improve profitability.
Balance Sheet and Cash Flow Statements
The balance sheet shows a decrease in total assets from $736.9 million at the end of 2022 to $664.2 million as of September 30, 2023. Total liabilities decreased from $287.9 million to $277.8 million in the same period. The cash flow statements indicate a net loss of $(114.4) million for the nine months ended September 30, 2023, with net cash used in operating activities totaling $(20.6) million.
Company's Strategic Vision and Market Position
CEO Jon Kirchner stated,
We are entering a particularly exciting phase as our business momentum is translating into tangible operational milestones."
These developments are seen as crucial steps towards achieving the company's strategic vision and long-term revenue growth.
Xperi Inc (NYSE:XPER) continues to innovate and integrate its technologies across various platforms, driving value for partners and customers. With a focus on delivering extraordinary experiences through its technologies, the company is well-positioned to capitalize on its recent achievements and maintain its growth trajectory.
For more detailed information, investors and stakeholders are encouraged to review the full 8-K filing.
Explore the complete 8-K earnings release (here) from Xperi Inc for further details.
This article first appeared on GuruFocus.
