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    Dolby Laboratories (DLB)

    Q4 2024 Earnings Summary

    Reported on Apr 14, 2025 (After Market Close)
    Pre-Earnings Price$70.91Last close (Nov 19, 2024)
    Post-Earnings Price$75.50Open (Nov 20, 2024)
    Price Change
    $4.59(+6.47%)
    • Strong organic growth in core segments: The company reported 15% organic growth for Dolby Atmos and Dolby Vision, indicating robust demand in high-margin licensing segments.
    • Growth potential from strategic acquisitions: Integration of acquisitions such as Theo is enhancing the Dolby IO platform by broadening customer reach and solution offerings, which could drive significant revenue expansion going forward.
    • Overall double-digit growth outlook: Despite targeting low single-digit growth in foundational segments, the combination with high growth in Atmos, Vision, and imaging patents sets the stage for overall double-digit revenue expansion.
    • Imaging Patents Vulnerability: The organic growth in the imaging patents segment is challenged by tough comps, with expectations of a mid- to high single-digit decline despite the GE licensing boost.
    • Low Growth in Foundational Revenue: The foundational audio technologies revenue is projected to grow only in low single digits, indicating sluggish performance that may not offset headwinds in other segments.
    • Macroeconomic and Tariff Uncertainty: Uncertainty around tariff impacts and the broader macroeconomic environment could further pressure sales, as management indicated it is too early to fully assess these risks.
    1. Sustainable Growth
      Q: What overall growth should we expect?
      A: Management expects low single-digit growth in Foundational revenue, combined with 15%–25% growth from Dolby Atmos, Dolby Vision, and imaging patents, which together point to roughly double-digit overall growth, further supported by Dolby IO opportunities.

    2. Patent Growth
      Q: What is the patent business’s organic growth rate?
      A: Management described that while Dolby Atmos and Dolby Vision are growing organically at 15%, imaging patents are down in the mid- to high single digits due to tough comps, resulting in an overall category growth of about 15% with GE licensing.

    3. Tariff Impact
      Q: How are expected tariffs affecting revenue?
      A: Management noted it is too early to speculate on tariff impacts; however, Foundational revenue is stabilizing as customer confidence returns, suggesting little disruptive effect in the near term.

    4. Dolby IO Contribution
      Q: When will Dolby IO significantly contribute?
      A: Management indicated that while Dolby IO starts from a small base, strong growth is expected from an expanding customer base and cross-selling initiatives, positioning it to add notable contribution in FY '25.

    5. New Revenue Verticals
      Q: How does the Theo acquisition drive revenue expansion?
      A: The Theo acquisition bolsters the company’s ability to deliver real-time interactive audio experiences in sports and entertainment, thereby opening new revenue-generating verticals outside of traditional licensing.

    Research analysts covering Dolby Laboratories.