8-K
Xperi Inc. (XPER)
UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
| Date of Report (Date of earliest event reported): February 26, 2025 |
|---|
Xperi Inc.
(Exact name of Registrant as Specified in Its Charter)
| Delaware | 001-41486 | 83-4470363 |
|---|---|---|
| (State or Other Jurisdiction<br>of Incorporation) | (Commission File Number) | (IRS Employer<br>Identification No.) |
| 2190 Gold Street | ||
| San Jose, California | 95002 | |
| (Address of Principal Executive Offices) | (Zip Code) | |
| Registrant’s Telephone Number, Including Area Code: 408 519-9100 | ||
| --- | ||
| N/A | ||
| --- |
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br>Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, par value $0.001 per share | XPER | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On February 26, 2025, Xperi Inc. (the “Company”) announced its financial results for the fourth quarter and full fiscal year for the period ended December 31, 2024. A copy of the Company’s press release announcing these financial results and other information regarding its financial condition is furnished as Exhibit 99.1 to this Form 8-K.
The information in this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit<br><br>No. | Description |
|---|---|
| 99.1 | Press Release dated February 26, 2025. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: February 26, 2025 | Xperi Inc. | |
|---|---|---|
| By: | /s/ Robert Andersen | |
| Name: | Robert Andersen | |
| Title: | Chief Financial Officer |
EX-99.1
Exhibit 99.1
| FOR IMMEDIATE RELEASE |
|---|
Xperi Inc. Announces Fourth Quarter and Full Year 2024 Results
Sharp TVs with TiVo OS Have Launched in U.S. Market
Achieved Video-Over-Broadband (IPTV) footprint of 2.6 million subscriber households and DTS
AutoStage footprint of 10 million vehicles
Doubled Year-over-Year Adjusted EBITDA
San Jose, Calif. (February 26, 2025) – Xperi Inc. (NYSE: XPER) (the “Company” or “Xperi”), an entertainment technology company that invents, develops, and delivers technologies that enable extraordinary experiences, today announced fourth quarter and full-year 2024 financial results for the period ended December 31, 2024.
“We closed the 2024 fiscal year on a strong operational note, making significant strides in expanding our independent media platform footprint across Smart TV, connected car, and video-over-broadband. This progress validates the value proposition of our independent media platform and further demonstrates how Xperi is enhancing the way people discover, watch, and enjoy their favorite content,” said Jon Kirchner, chief executive officer of Xperi. “Our revenue in 2024 was slightly up year over year when adjusting for our divested businesses as we saw growth in IPTV and Connected Car offset by a decline in some of our core legacy solutions due to a challenging market environment. Nonetheless, we are pleased with the results of our ongoing business transformation and its positive impact on profitability.”
Mr. Kirchner continued, “Looking ahead to 2025, we will maintain our focus on growing revenue within our strategic initiatives, including by expanding our Smart TV footprint, accelerating deployment of TiVo video-over-broadband, and growing our DTS AutoStage footprint. As our user base of connected devices expands, the scale and unique audiences we reach is expected to create significant monetization opportunities.”
Financial Highlights
| GAAP Highlights ($ millions, except per share data) | Q4 FY24 | Q4 FY23 | Full Year 2024 | Full Year 2023 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $ | 122.4 | $ | 137.2 | 1 | $ | 493.7 | $ | 521.3 | 1 | ||||
| GAAP operating loss | $ | (14.3 | ) | $ | (29.8 | ) | $ | (87.1 | ) | $ | (129.6 | ) | ||
| GAAP net income (loss)2 | $ | 46.2 | $ | (24.8 | ) | $ | (14.0 | ) | $ | (136.6 | ) | |||
| GAAP diluted earnings (loss) per share2 | $ | 1.02 | $ | (0.57 | ) | $ | (0.31 | ) | $ | (3.18 | ) | |||
| Non-GAAP3 Highlights ($ millions, except per share data) | Q4 FY24 | Q4 FY23 | Full Year 2024 | Full Year 2023 | ||||||||||
| Revenue | $ | 122.4 | $ | 137.2 | 1 | $ | 493.7 | $ | 521.3 | 1 | ||||
| Non-GAAP operating income | $ | 17.5 | $ | 7.1 | $ | 49.5 | $ | 11.2 | ||||||
| Non-GAAP net income2 | $ | 17.7 | $ | 5.8 | $ | 44.6 | $ | 0.6 | ||||||
| Non-GAAP earnings per share2 | $ | 0.39 | $ | 0.11 | $ | 0.97 | $ | 0.01 | ||||||
| Non-GAAP adjusted EBITDA | $ | 22.7 | $ | 13.4 | $ | 74.2 | $ | 34.7 |
1 The contribution from AutoSense and the related imaging business, which was divested on January 31, 2024, accounted for $14.7 million of revenue in Q4 2023 and $28.9 million of revenue in 2023, and the contribution from Perceive, which was divested on October 2, 2024, accounted for $2.1 million of revenue in Q4 2023 and $3.6 million of revenue in 2023.
2 Attributable to the Company.
3 For further information on supplemental non-GAAP metrics included in this press release, refer to the “Non-GAAP Financial Measures” description and “GAAP to Non-GAAP Reconciliations” provided in the financial statement tables.
Recent Key Operating Achievements
Media Platform
Achieved TiVo OS milestone of over two million activated Smart TVs.
Sharp Smart TVs Powered by TiVo began production in December and are now available in certain U.S. retail.
Thomson, a leader in Smart TVs, has been named as the 8th partner to launch Smart TVs Powered by TiVo in major European markets, expected later this spring.
Launched TiVo One Ad Platform on video-over-broadband in the U.S., with home page advertising now rolling out across TiVo IPTV and TiVo Broadband footprint.
Connected Car
- DTS AutoStage global installed base of vehicles now exceeds 10 million cars, doubling year over year, exceeding our target, and building a foundation for future monetization-based revenue streams.
- Signed a third license agreement in 2024 for DTS AutoStage video service Powered by TiVo with a Japanese customer.
- HD Radio is now implemented in more than 110 million vehicles and penetration is approaching 60% of new cars shipped annually throughout North America.
Pay TV
- Ended 2024 with 2.6 million video-over-broadband (IPTV) subscriber households, up 37% year over year.
- Signed 7 new TiVo Broadband customers in the fourth quarter 2024, bringing the cumulative total to 20, and expanding the U.S.-based connected TV monetization footprint for the TiVo One Ad Platform.
Consumer Electronics
- Closed several long-term DTS audio renewals with customers including Harman and Yamaha.
- At CES 2025, DTS Clear Dialogue, a new on-device solution that leverages the latest advancements in AI-based audio processing to improve dialogue intelligibility for TVs, won three technology and innovation awards from industry-leading publications. We expect TV market availability in 2026.
Capital Allocation
- Repurchased $10 million of the Company’s common stock in the fourth quarter 2024 at an average price of $9.57.
Financial Outlook
The Company is providing the following outlook for fiscal year 2025:
| Category | GAAP Outlook | Non-GAAP Outlook |
|---|---|---|
| Revenue | $480M to $500M | $480M to $500M |
| Adjusted EBITDA Margin1,2 | n/a | 16% to 18% |
1 See discussion of “Non-GAAP Financial Measures” below.
2 With respect to Adjusted EBITDA Margin, the Company has determined that it is unable to provide a quantitative reconciliation of this forward-looking non-GAAP measure to the most directly comparable forward-looking GAAP measure with a reasonable degree of confidence in its accuracy without unreasonable effort, as items including restructuring and impacts from discrete tax adjustments and tax law changes are inherently uncertain and depend on various factors, many of which are beyond the Company's control.
Conference Call Information
The Company will hold its fourth quarter and full year 2024 earnings conference call at 2:00 PM Pacific Time (5:00 PM Eastern Time) on Wednesday, February 26, 2025. To access the call toll-free, please dial 1-888-596-4144, otherwise dial 1-646-968-2525. The conference ID is 5483252. All participants should dial in 15 minutes prior to the start of the call using the conference ID listed above. Alternatively, the call can be accessed via the following webcast link: Q4 and Full Year 2024 Earnings Call Webcast.
Safe Harbor Statement
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding: expectations regarding our future results of operations and financial position, margin expansion and overall growth, including, without limitation, expectations regarding revenue growth and Adjusted EBITDA Margin growth, the deployment by third parties of their products that use our technology, objectives for future operations, and ongoing strategies and operating initiatives, including, without limitation, subscriber and device targets, monetization goals, expansion expectations, product launches, market penetration, our media platform and licensing businesses growth, reduction of expenses, and other 2025 year-end objectives. These forward-looking statements are based on information available to the Company as of the date hereof, as well as the Company’s current expectations, assumptions, estimates and projections that involve risks and uncertainties. In some cases, you can identify forward-looking statements by the words “expect,” “anticipate,” “intend,” “plan,” “believe,” “could,” “seek,” “see,” “will,” “may,” “would,” “might,” “potentially,” “estimate,” “continue,” “target,” “goal,” and similar expressions or the negatives of
these words or other comparable terminology that convey uncertainty of future events or outcomes. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance, or achievements to be materially different from the information expressed or implied by these forward-looking statements. These risks, uncertainties and other factors are described under the captions “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024, to be filed with the Securities and Exchange Commission (the “SEC”) and our other filings with the SEC from time to time. Any forward-looking statements speak only as of the date of this press release and are based on information available to the Company as of the date of this press release, and the Company does not assume any obligation to, and does not intend to, publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.
About Xperi Inc.
Xperi invents, develops, and delivers technologies that enable extraordinary experiences. Xperi technologies, delivered via its brands (DTS®, HD Radio™, TiVo®) are integrated into billions of consumer devices and media platforms worldwide, powering smart devices, connected cars and entertainment experiences, including IMAX® Enhanced, a certification and licensing program operated by IMAX Corporation and DTS, Inc. Xperi has created a unified ecosystem that reaches highly engaged consumers, driving increased value for partners, customers and consumers.
©2025 Xperi Inc. All Rights Reserved. Xperi, TiVo, DTS, HD Radio, DTS Play-Fi, and their respective logos are trademark(s) or registered trademark(s) of Xperi Inc. or its subsidiaries in the United States and other countries. IMAX is a registered trademark of IMAX Corporation. All other trademarks and content are the property of their respective owners.
Non-GAAP Financial Measures
In addition to disclosing financial results calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company’s press release contains non-GAAP financial measures, including Non-GAAP Operating Income/(Loss), Non-GAAP Net Income/(Loss) attributable to the Company, Non-GAAP Net Income/(Loss) Per Share attributable to the Company, Non-GAAP Adjusted EBITDA, and Non-GAAP Adjusted EBITDA Margin.
Non-GAAP Operating Income/(Loss) is defined as GAAP Operating Income/(Loss), less the impact of stock-based compensation, amortization of intangible assets, transaction and integration costs related to actual or planned acquisitions, financing, and divestitures; severance and retention costs; restructuring costs; separation costs; and other items not indicative of our ongoing operating performance.
Non-GAAP Net Income/(Loss) attributable to the Company is defined as GAAP Net Income/(Loss) attributable to the Company excluding the impact of stock-based compensation, amortization of intangible assets, transaction and integration costs related to actual or planned acquisitions, financing, and divestitures; severance and retention costs; restructuring costs; separation costs; and other items not indicative of our ongoing operating performance, and related tax effects for each adjustment. Non-GAAP Net Income/(Loss) Per Share attributable to the Company is defined as Non-GAAP Income/(Loss) attributable to the Company divided by diluted Non-GAAP weighted average shares outstanding.
Non-GAAP Adjusted EBITDA is defined as GAAP Net Income/(Loss), less the impact of interest expense, income taxes, stock-based compensation, depreciation expense, amortization of intangible assets, amortization of capitalized cloud computing costs, transaction and integration costs related to actual or planned acquisitions, financing, and divestitures; severance and retention costs; restructuring costs; separation costs; and other items not indicative of our ongoing operating performance. Non-GAAP Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenue.
Management believes that the non-GAAP measures used in this press release provide investors with important perspectives into the Company’s ongoing business and financial performance and provide a better understanding of our core operating results reflecting our normal business operations. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. Our use of non-GAAP financial measures has certain limitations in that the non-GAAP financial measures we use may not be directly comparable to those reported by other companies. For example, the terms used in this press release, such as adjusted EBITDA, do not have a standardized meaning. Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of our performance in relation to other companies. We seek to compensate for the limitation of our non-GAAP presentation by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures in the tables attached hereto. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures. All financial data is presented on a GAAP basis except where the Company indicates its presentation is on a non-GAAP basis
Set forth below are reconciliations of the Company’s reported GAAP to non-GAAP financial measures.
Xperi Investor Contact:
Robert Andersen
Chief Financial Officer
+1 408-321-6779
ir@xperi.com
Media Contact:
Allyse Sanchez
Senior Director, External Communications +1 925-548-2535 allyse.sanchez@xperi.com
– Tables Follow –
SOURCE: XPERI INC.
XPER-E
#
XPERI INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Revenue | $ | 122,362 | $ | 137,233 | $ | 493,688 | $ | 521,334 | ||||
| Operating expenses: | ||||||||||||
| Cost of revenue, excluding depreciation and amortization of intangible assets | 27,563 | 33,567 | 113,756 | 118,628 | ||||||||
| Research and development | 42,163 | 55,840 | 191,352 | 222,833 | ||||||||
| Selling, general and administrative | 52,168 | 59,510 | 218,106 | 233,403 | ||||||||
| Depreciation expense | 2,858 | 4,102 | 12,638 | 16,645 | ||||||||
| Amortization expense | 10,361 | 13,403 | 43,376 | 57,752 | ||||||||
| Impairment of long-lived assets | 1,535 | 614 | 1,535 | 1,710 | ||||||||
| Total operating expenses | 136,648 | 167,036 | 580,763 | 650,971 | ||||||||
| Operating loss | (14,286 | ) | (29,803 | ) | (87,075 | ) | (129,637 | ) | ||||
| Interest and other income (expense), net | (3,882 | ) | 807 | 829 | 2,991 | |||||||
| Interest expense - debt | (756 | ) | (756 | ) | (3,008 | ) | (3,000 | ) | ||||
| Gain on divestitures | 77,899 | - | 100,833 | - | ||||||||
| Income (loss) before taxes | 58,975 | (29,752 | ) | 11,579 | (129,646 | ) | ||||||
| (Benefit from) provision for income taxes | (3,989 | ) | (4,439 | ) | 12,448 | 10,042 | ||||||
| Net income (loss) | 62,964 | (25,313 | ) | (869 | ) | (139,688 | ) | |||||
| Less: net income (loss) attributable to noncontrolling interest | 16,748 | (521 | ) | 13,139 | (3,075 | ) | ||||||
| Net income (loss) attributable to the Company | $ | 46,216 | $ | (24,792 | ) | $ | (14,008 | ) | $ | (136,613 | ) | |
| Net income (loss) per share attributable to the Company: | ||||||||||||
| Basic | $ | 1.03 | $ | (0.57 | ) | $ | (0.31 | ) | $ | (3.18 | ) | |
| Diluted | $ | 1.02 | $ | (0.57 | ) | $ | (0.31 | ) | $ | (3.18 | ) | |
| Weighted-average number of shares used in per share calculations - basic | 44,691 | 43,717 | 45,057 | 43,012 | ||||||||
| Weighted-average number of shares used in per share calculations - diluted | 45,522 | 43,717 | 45,057 | 43,012 |
XPERI INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
| December 31, | December 31, | |||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | |||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 130,564 | $ | 142,085 | ||
| Accounts receivable, net | 58,745 | 55,984 | ||||
| Unbilled contracts receivable, net | 83,075 | 64,114 | ||||
| Prepaid expenses and other current assets | 32,488 | 38,874 | ||||
| Assets held for sale | - | 15,860 | ||||
| Total current assets | 304,872 | 316,917 | ||||
| Note receivable, noncurrent | 29,702 | - | ||||
| Deferred consideration from divestiture | 18,217 | - | ||||
| Unbilled contracts receivable, noncurrent | 45,396 | 18,231 | ||||
| Property and equipment, net | 44,473 | 41,569 | ||||
| Operating lease right-of-use assets | 30,082 | 39,900 | ||||
| Intangible assets, net | 163,714 | 206,895 | ||||
| Deferred tax assets | 7,228 | 5,093 | ||||
| Other noncurrent assets | 24,076 | 32,781 | ||||
| Assets held for sale, noncurrent | - | 12,249 | ||||
| Total assets | $ | 667,760 | $ | 673,635 | ||
| LIABILITIES AND EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 16,979 | $ | 20,849 | ||
| Accrued liabilities | 94,420 | 109,961 | ||||
| Deferred revenue | 23,950 | 28,111 | ||||
| Short-term debt | 50,000 | - | ||||
| Liabilities held for sale | - | 6,191 | ||||
| Total current liabilities | 185,349 | 165,112 | ||||
| Long-term debt | - | 50,000 | ||||
| Deferred revenue, noncurrent | 20,932 | 19,425 | ||||
| Operating lease liabilities, noncurrent | 19,932 | 30,598 | ||||
| Deferred tax liabilities | 1,491 | 6,983 | ||||
| Other noncurrent liabilities | 10,979 | 4,577 | ||||
| Liabilities held for sale, noncurrent | - | 9,805 | ||||
| Total liabilities | 238,683 | 286,500 | ||||
| Equity: | ||||||
| Common stock | 44 | 44 | ||||
| Additional paid-in capital | 1,274,561 | 1,212,501 | ||||
| Accumulated other comprehensive loss | (6,084 | ) | (2,865 | ) | ||
| Accumulated deficit | (839,444 | ) | (805,448 | ) | ||
| Total Company stockholders’ equity | 429,077 | 404,232 | ||||
| Noncontrolling interest | - | (17,097 | ) | |||
| Total equity | 429,077 | 387,135 | ||||
| Total liabilities and equity | $ | 667,760 | $ | 673,635 |
XPERI INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
| 2023 | |||||
| Cash flows from operating activities: | |||||
| Net loss | (869 | ) | $ | (139,688 | ) |
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||||
| Gain from divestitures | (100,833 | ) | - | ||
| Deferred income taxes | (2,933 | ) | (8,596 | ) | |
| Accrued interest income from note receivable | (2,026 | ) | - | ||
| Accretion of discount from deferred consideration from divestitures | (1,061 | ) | - | ||
| Stock-based compensation | 60,541 | 69,531 | |||
| Amortization of intangible assets | 43,376 | 57,752 | |||
| Depreciation of property and equipment | 12,638 | 16,645 | |||
| Loss from deconsolidation of Perceive subsidiary | 4,839 | - | |||
| Impairment of long-lived assets | 1,535 | 1,710 | |||
| Other | 1,225 | 748 | |||
| Changes in operating assets and liabilities: | |||||
| Accounts receivable | (5,496 | ) | 5,721 | ||
| Unbilled contracts receivable | (46,315 | ) | (19,386 | ) | |
| Prepaid expenses and other assets | 11,071 | 2,696 | |||
| Accounts payable | (3,041 | ) | 5,071 | ||
| Accrued and other liabilities | (25,325 | ) | 3,688 | ||
| Deferred revenue | (2,666 | ) | 4,170 | ||
| Net cash (used in) provided by operating activities | (55,340 | ) | 62 | ||
| Cash flows from investing activities: | |||||
| Net proceeds from divestitures | 67,773 | - | |||
| Capitalized internal-use software | (11,715 | ) | (5,933 | ) | |
| Purchases of property and equipment | (5,043 | ) | (6,815 | ) | |
| Purchases of intangible assets | (195 | ) | (185 | ) | |
| Net cash provided by (used in) investing activities | 50,820 | (12,933 | ) | ||
| Cash flows from financing activities: | |||||
| Repurchases of common stock | (19,990 | ) | - | ||
| Withholding taxes related to net share settlement of equity awards | (7,215 | ) | (4,875 | ) | |
| Proceeds from issuance of common stock under employee stock purchase plan | 7,855 | 11,927 | |||
| Net cash (used in) provided by financing activities | (19,350 | ) | 7,052 | ||
| Effect of exchange rate changes on cash and cash equivalents | - | 126 | |||
| Net decrease in cash and cash equivalents | (23,870 | ) | (5,693 | ) | |
| Cash and cash equivalents at beginning of period | 154,434 | 160,127 | |||
| Cash and cash equivalents at end of period(1) | 130,564 | $ | 154,434 | ||
| (1) Including 12,349 classified as held for sale at December 31, 2023. |
All values are in US Dollars.
XPERI INC.
GAAP TO NON-GAAP RECONCILIATIONS
(in thousands, except per share amounts)
(unaudited)
| Net income attributable to the Company: | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| GAAP net income (loss) attributable to the Company | $ | 46,216 | $ | (24,792 | ) | $ | (14,008 | ) | $ | (136,613 | ) | |
| Adjustments to GAAP net income (loss) attributable to the Company: | ||||||||||||
| Stock-based compensation(1) | 15,232 | 17,850 | 60,541 | 69,531 | ||||||||
| Amortization of intangible assets | 10,361 | 13,403 | 43,376 | 57,752 | ||||||||
| Impairment of long-lived assets | 1,535 | 614 | 1,535 | 1,710 | ||||||||
| Gain on Perceive divestiture attributable to the Company | (59,485 | ) | - | (59,485 | ) | - | ||||||
| Loss from deconsolidation of Perceive subsidiary | 4,839 | - | 4,839 | - | ||||||||
| Gain on AutoSense divestiture | - | - | (22,934 | ) | - | |||||||
| Transaction, separation, integration and restructuring related costs: | ||||||||||||
| Transaction, separation, integration and restructuring costs(2) | 3,731 | 4,145 | 18,858 | 7,954 | ||||||||
| Severance and retention(3) | 1,073 | 925 | 13,468 | 3,866 | ||||||||
| Non-GAAP tax adjustment(4) | (5,820 | ) | (6,366 | ) | (1,608 | ) | (3,646 | ) | ||||
| Non-GAAP net income attributable to the Company | $ | 17,682 | $ | 5,779 | $ | 44,582 | $ | 554 | ||||
| (1) Stock-based compensation included in above line items: | ||||||||||||
| Cost of revenue, excluding depreciation and amortization of intangible assets | $ | 792 | $ | 941 | $ | 3,216 | $ | 3,466 | ||||
| Research and development | $ | 5,245 | $ | 6,736 | $ | 20,634 | $ | 25,276 | ||||
| Selling, general and administrative | $ | 9,195 | $ | 10,173 | $ | 36,691 | $ | 40,789 | ||||
| (2) Transaction, separation, integration and restructuring related costs included in above line items: | ||||||||||||
| Cost of revenue, excluding depreciation and amortization of intangible assets | $ | - | $ | 214 | $ | - | $ | 214 | ||||
| Research and development | $ | 1,438 | $ | 786 | $ | 5,759 | $ | 786 | ||||
| Selling, general and administrative | $ | 2,125 | $ | 3,145 | $ | 11,856 | $ | 6,954 | ||||
| Interest and other income (expense), net | $ | 168 | $ | - | $ | 1,243 | $ | - | ||||
| (3) Severance and retention included in above line items: | ||||||||||||
| Cost of revenue, excluding depreciation and amortization of intangible assets | $ | 38 | $ | 209 | $ | 1,108 | $ | 263 | ||||
| Research and development | $ | 666 | $ | 138 | $ | 9,344 | $ | 1,554 | ||||
| Selling, general and administrative | $ | 369 | $ | 578 | $ | 3,016 | $ | 2,049 | ||||
| (4) The provision for (benefit from) income taxes is adjusted to reflect the net direct and indirect income tax effects of various non-GAAP pretax adjustments. | ||||||||||||
| Net income per share attributable to the Company: | ||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| GAAP net income (loss) per share attributable to the Company | $ | 1.02 | $ | (0.57 | ) | $ | (0.31 | ) | $ | (3.18 | ) | |
| Adjustments to GAAP net income (loss) per share attributable to the Company: | ||||||||||||
| Stock-based compensation | 0.33 | 0.41 | 1.34 | 1.62 | ||||||||
| Amortization of intangible assets | 0.23 | 0.31 | 0.96 | 1.34 | ||||||||
| Impairment of long-lived assets | 0.03 | 0.01 | 0.03 | 0.04 | ||||||||
| Gain on Perceive divestiture attributable to the Company | (1.31 | ) | - | (1.32 | ) | - | ||||||
| Loss from deconsolidation of Perceive subsidiary | 0.11 | - | 0.11 | - | ||||||||
| Gain on AutoSense divestiture | - | - | (0.51 | ) | - | |||||||
| Transaction, separation, integration and restructuring related costs | 0.11 | 0.12 | 0.72 | 0.27 | ||||||||
| Non-GAAP tax adjustment | (0.13 | ) | (0.15 | ) | (0.04 | ) | (0.08 | ) | ||||
| Difference in shares used in calculation | - | (0.02 | ) | (0.01 | ) | - | ||||||
| Non-GAAP net income per share attributable to the Company | $ | 0.39 | $ | 0.11 | $ | 0.97 | $ | 0.01 | ||||
| GAAP weighted average number of shares - diluted | 45,522 | 43,717 | 45,057 | 43,012 | ||||||||
| Non-GAAP weighted average number of shares - diluted | 45,522 | 50,863 | 45,949 | 49,633 |
XPERI INC.
GAAP TO NON-GAAP RECONCILIATIONS
(in thousands)
(unaudited)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |||||||||
| GAAP operating loss | $ | (14,286 | ) | $ | (29,803 | ) | $ | (87,075 | ) | $ | (129,637 | ) |
| Adjustments to GAAP operating loss: | ||||||||||||
| Stock-based compensation | 15,232 | 17,850 | 60,541 | 69,531 | ||||||||
| Amortization of intangible assets | 10,361 | 13,403 | 43,376 | 57,752 | ||||||||
| Impairment of long-lived assets | 1,535 | 614 | 1,535 | 1,710 | ||||||||
| Transaction, separation, integration and restructuring related costs: | ||||||||||||
| Transaction, separation, integration and restructuring costs | 3,563 | 4,145 | 17,615 | 7,954 | ||||||||
| Severance and retention | 1,073 | 925 | 13,468 | 3,866 | ||||||||
| Non-GAAP operating income | $ | 17,478 | $ | 7,134 | $ | 49,460 | $ | 11,176 |
XPERI INC.
GAAP TO NON-GAAP RECONCILIATIONS
(in thousands)
(unaudited)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |||||||||
| GAAP net income (loss) | $ | 62,964 | $ | (25,313 | ) | $ | (869 | ) | $ | (139,688 | ) | |
| Adjustments to GAAP net income (loss): | ||||||||||||
| Interest expense | 922 | 767 | 3,822 | 3,104 | ||||||||
| (Benefit from) provision for income taxes | (3,989 | ) | (4,439 | ) | 12,448 | 10,042 | ||||||
| Stock-based compensation | 15,232 | 17,850 | 60,541 | 69,531 | ||||||||
| Depreciation expense | 2,858 | 4,102 | 12,638 | 16,645 | ||||||||
| Amortization of intangible assets | 10,361 | 13,403 | 43,376 | 57,752 | ||||||||
| Amortization of capitalized cloud computing costs | 1,084 | 1,339 | 4,353 | 3,756 | ||||||||
| Gain on divestitures | (77,899 | ) | — | (100,833 | ) | — | ||||||
| Loss from deconsolidation of Perceive subsidiary | 4,839 | — | 4,839 | — | ||||||||
| Impairment of long-lived assets | 1,535 | 614 | 1,535 | 1,710 | ||||||||
| Transaction, separation, integration and restructuring related costs: | ||||||||||||
| Transaction, separation, integration and restructuring costs | 3,731 | 4,145 | 18,858 | 7,954 | ||||||||
| Severance and retention | 1,073 | 925 | 13,468 | 3,866 | ||||||||
| Non-GAAP adjusted EBITDA | $ | 22,711 | $ | 13,393 | $ | 74,176 | $ | 34,672 | ||||
| Non-GAAP Adjusted EBITDA Margin(1) | 18.6 | % | 9.8 | % | 15.0 | % | 6.7 | % | ||||
| (1)Non-GAAP Adjusted EBITDA Margin is calculated by dividing Non-GAAP Adjusted EBITDA, derived as above, by the Company's total revenue, expressed as a percentage. |