Executive Summary

Q2 2024 revenue surged to $99.4M, driven by a sharp increase in fixed-fee licensing and initial consolidation of Barnes & Noble Education (BNED) from June 10; GAAP diluted EPS was $0.89 and Non-GAAP EPS $1.14 .
Sequentially, revenue rose from $43.8M in Q1 to $99.4M, while diluted EPS increased from $0.59 to $0.89; YoY revenue was up from $7.0M amid substantial licensing wins and BNED consolidation .
Management highlighted continued monetization of IP (including settlement and license with Xiaomi) and capital allocation, alongside strategic BNED investment and control via board seats; Immersion standalone Non-GAAP stockholders’ equity rose >$50M YTD to $236.1M .
Dividend maintained at $0.045/share, payable Oct 18, 2024; estimates comparison was unavailable from S&P Global at this time due to data limits .

What Went Well and What Went Wrong

What Went Well
- Material increase in fixed-fee licensing revenue: Immersion segment fixed-fee license revenue rose to $48.8M in Q2 (vs $1.3M YoY) on new mobility and gaming agreements; total segment revenue reached $52.4M .
- Strategic BNED transaction closed, adding $47.0M revenue (June 10–30) and establishing control via five board seats; fair value of NCI recorded at $203.7M .
- “The second quarter was very strong… we continue to work to protect and monetize our intellectual property… make an important investment in BNED… standalone Non-GAAP stockholders’ equity has increased by more than $50 million” — Eric Singer, Chairman & CEO .
What Went Wrong
- BNED contributed an operating loss of $(12.8)M in the partial quarter due to seasonality, restructuring costs, and cost-of-sales burden; interest expense of $(0.9)M appeared post facility restatement .
- Per-unit royalty revenue decreased YoY (to $3.6M from $5.7M) reflecting lower royalties from mobility, gaming, and automotive licensees .
- Operating expenses increased materially (Immersion S&A to $14.2M in Q2 and $41.4M YTD), largely due to higher legal and personnel costs tied to new licensing and BNED transactions .

Financial Results

Metric	Q2 2023	Q1 2024	Q2 2024
Revenue ($USD Millions)	$6.983	$43.847	$99.424
Operating Income ($USD Millions)	$3.113	$16.614	$25.406
Operating Margin (%)	44.6% (3.113/6.983)	37.9% (16.614/43.847)	25.6% (25.406/99.424)
Net Income Attributable to IMMR ($USD Millions)	$7.028	$18.655	$28.945
Diluted EPS ($)	$0.21	$0.59	$0.89
Non-GAAP Net Income ($USD Millions)	$8.415	$19.824	$36.992
Non-GAAP Diluted EPS ($)	$0.26	$0.63	$1.14

Segment breakdown (Q2 2024):

Segment	Q2 2024
Immersion Royalty & License ($M)	$52.403
BNED Product & Other ($M)	$45.073
BNED Rental Income ($M)	$1.948
Total Revenues ($M)	$99.424

Immersion revenue composition:

Metric	Q2 2023	Q2 2024
Fixed-Fee License ($M)	$1.254	$48.779
Per-Unit Royalty ($M)	$5.729	$3.624
Total Immersion ($M)	$6.983	$52.403

BNED revenue composition (June 10–30, 2024):

Metric	Q2 2024 Partial
Course Material Sale ($M)	$26.814
General Merchandise Sale ($M)	$16.008
Services & Other ($M)	$2.251
Rental Income ($M)	$1.948
Total ($M)	$47.021

Selected KPIs and balance items:

KPI	Period	Value
Immersion Contract Assets (current + noncurrent)	Jun 30, 2024	$2.8M + $33.7M
Immersion Deferred Revenue Ending Balance	Jun 30, 2024	$20.747M
BNED Deferred Revenue Ending Balance	Jun 30, 2024	$11.552M
Total Stockholders’ Equity (IMMR attributable)	Jun 30, 2024	$230.272M

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Quarterly Dividend ($/share)	Q4 2024 payable	$0.045/share	$0.045/share; payable Oct 18, 2024; record Oct 4, 2024	Maintained

No quantitative revenue/EPS/margin guidance was provided. Forward-looking statements focused on IP protection/monetization and capital allocation; dividend subject to Board review .

Earnings Call Themes & Trends

Note: No Q2 2024 earnings call transcript was available in the dataset; themes below are synthesized from the press release and 10‑Q.

Topic	Previous Mentions (Q4 2023 and Q1 2024)	Current Period (Q2 2024)	Trend
IP monetization/licensing	Emphasis on enforcement, renewals; steady execution	Large fixed-fee deals in mobility/gaming; Xiaomi license settlement	Strengthening
Capital allocation/dividends/buybacks	Dividends maintained; repurchases in 2023	Dividend maintained; standalone Non-GAAP equity +$50M YTD	Positive discipline
Strategic investments (BNED)	Optionality noted by mgmt	Acquired 42% BNED; control via board; consolidation begins	Structural shift
Legal/regulatory	LGE tax matter ongoing appeals	Valve IPRs instituted; district case stayed pending PTAB; Xiaomi resolved	Mixed: de-risk Xiaomi; ongoing Valve
Segment reporting	Single segment historically	Two segments (Immersion; BNED) post-close	Expanded scope
Seasonality/supply chain (BNED)	N/A	BNED highly seasonal; cash collections shift under First Day programs	Important factor
Geographic revenue mix	Asia/N.A./EU mix varied in 2023	Asia 98% in Q2 2024 (Immersion)	Shift to Asia in quarter

Management Commentary

“The second quarter was very strong for the Company… protect and monetize our intellectual property… important investment in Barnes & Noble Education… standalone Non-GAAP stockholders equity has increased by more than $50 million…” — Eric Singer, Chairman & CEO .
MD&A highlights material increases in fixed-fee license revenue, with detail on declines in per‑unit royalties by end-market and geography .
BNED strategy emphasizes First Day Complete access programs and Fanatics/Lids relationships to drive unit volumes and GM expansion longer term .

Q&A Highlights

No Q2 2024 earnings call transcript was identified; therefore Q&A highlights and any real-time guidance clarifications are not available in the current dataset [functions.ListDocuments returned none].

Estimates Context

S&P Global (Capital IQ) consensus estimates for Q2 2024 EPS and revenue were unavailable due to data access limits, so a beat/miss comparison cannot be provided at this time. Values to compare against estimates will be updated once accessible.

Key Takeaways for Investors

Immersion delivered outsized revenue and earnings in Q2, primarily from fixed-fee licenses; sequential and YoY gains were substantial though operating margin contracted due to BNED consolidation and higher operating costs .
BNED adds scale and diversification but is seasonal and initially loss-making; watch Q3/Q4 cadence for textbook seasonality and cash conversion under First Day programs .
Ongoing legal posture: Xiaomi risk de‑risked via license; Valve IPRs instituted and district case stayed—monitor PTAB timelines and legal expense run-rate .
Dividend maintained at $0.045/share; substantial equity base and liquidity remain, but BNED borrowing introduces interest expense and covenant monitoring (availability, FCCR, EBITDA minimums) .
Revenue mix shifted heavily to Asia in Q2 within Immersion; fixed-fee durability and pipeline quality will drive sustainability of licensing revenue into 2H .
Operating expense step-up linked to transactions and legal; watch for normalization vs. Q2 spike to gauge margin trajectory .
Without current consensus data, positioning hinges on confidence in repeatability of fixed-fee wins and BNED integration benefits; next quarters will be pivotal for validating the new consolidated model .

IMMERSION CORP (IMMR)·Q2 2024 Earnings Summary