Executive Summary

Q1 2024 revenue was $118.8M and GAAP diluted EPS was $(0.29); non-GAAP EPS was $(0.05). Adjusted EBITDA was $5.4M, with non-GAAP gross margin at $90M (76%) and adjusted EBITDA margin ~5% .
The company reaffirmed FY 2024 guidance: revenue $500–$530M and non-GAAP adjusted EBITDA margin 12–14%. Management indicated Q2 likely flat to slightly down vs 2023, with accelerating growth in Q4 as TiVo OS monetization builds .
Strategic momentum in key growth vectors: Connected Car (AutoStage deployments >6M vehicles), Pay TV Video-over-Broadband subscribers >2M, and TiVo OS footprint expansion across Europe; CE segment faced renewal timing headwinds .
Board authorized share repurchases up to $100M, balancing capital return with growth investments and debt paydown—an incremental capital allocation lever and potential stock catalyst .
S&P Global consensus estimates were unavailable at the time of retrieval due to an API limit; estimate comparison is omitted. We attempted to fetch Q1 2024 EPS and revenue consensus values but could not complete due to S&P daily request limit.

What Went Well and What Went Wrong

What Went Well

TiVo OS expansion: Vestel shipping across major European countries; Argos’ Bush brand launched; additional Japanese global brand expected to launch ahead of UEFA Euro 2024—supporting footprint growth and future monetization .
Connected Car strength: DTS AutoStage now deployed in >6M vehicles (+50% over nine months); HD Radio standard in 58% of North American vehicles built in 2023; Hyundai and Genesis standardizing HD Radio .
Video-over-Broadband: IPTV subscriber households surpassed 2M, sustaining double-digit YoY subscriber growth and helping offset secular Pay TV declines .

Management quotes:

“We expect the next several quarters will be an exciting time for Xperi as our TiVo OS footprint begins to scale… and our Connected Car deployments accelerate.” — CEO Jon Kirchner .
“Adjusted EBITDA was over $5 million for the quarter or 5% of revenue.” — CEO Jon Kirchner .
“Our Board of Directors recently provided authorization for share repurchases of up to $100 million.” — CFO Robert Andersen .

What Went Wrong

Revenue down YoY: $118.8M vs $126.8M; management cited the AutoSense/imaging divestiture impact and weakness in core CE and Pay TV .
Segment headwinds: Consumer Electronics down 21% YoY on fewer multi-year license renewals; Pay TV down 6% YoY (core product declines and timing), partially offset by IPTV growth .
Operating cash flow seasonal usage: $(49.8)M in Q1 driven by variable compensation, working capital, cash taxes, and severance/divestiture costs; end cash decreased to $95.2M .

Financial Results

Metric	Q1 2023	Q4 2023	Q1 2024
Revenue ($USD Millions)	$126.8	$137.2	$118.8
GAAP Net Loss ($USD Millions)	$(32.9)	$(25.3)	$(13.4)
GAAP Diluted EPS ($USD)	$(0.76)	$(0.57)	$(0.29)
Non-GAAP EPS ($USD)	$0.04	$0.11	$(0.05)
Adjusted EBITDA ($USD Millions)	$6.8	$13.4	$5.4
Non-GAAP Gross Margin ($USD Millions)	—	$105	$90
GAAP Operating Loss ($USD Millions)	$(33.6)	$(29.8)	$(32.3)
Cash and Equivalents ($USD Millions)	$110.7	$154.4	$95.2

Segment performance (YoY growth/decline where disclosed):

Segment	Q4 2023 YoY	Q1 2024 YoY (ex-AutoSense divestiture context)
Pay TV	Down <1%	Down 6%
Consumer Electronics	Up 16%	Down 21%
Connected Car	Up 17%	Up 23%
Media Platform	Down 34% (contract timing, strikes)	Up 25%

Key KPIs:

KPI	Q3 2023	Q4 2023	Q1 2024
Video-over-Broadband (IPTV) Subscriber Households	—	1.9M	>2.0M
AutoStage Deployed Vehicles	—	—	>6M
HD Radio Penetration in North America (2023)	58% (vs 52% in 2021)	—	58% reiterated

Non-GAAP adjustments (Q1 2024):

Stock-based compensation: $14.8M; amortization of intangibles: $11.0M; transaction/separation/restructuring: $3.2M; severance/retention: $2.9M; gain on divestiture: $(22.9)M; non-GAAP tax adjustment: $2.1M . Adjusted EBITDA: $5.4M .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($USD Millions)	FY 2024	$500–$530	$500–$530	Maintained
Adjusted EBITDA Margin (%)	FY 2024	12–14%	12–14%	Maintained
Non-GAAP Gross Margin (%)	FY 2024	75–77%	75–77% (unchanged, per mgmt)	Maintained
Non-GAAP Taxes ($USD Millions)	FY 2024	~$20	~$20 (unchanged)	Maintained
Operating Cash Flow ($USD Millions)	FY 2024	$20–$30	$20–$30 (unchanged)	Maintained
CapEx ($USD Millions)	FY 2024	~$20	~$20 (unchanged)	Maintained
Share Count (Basic/Diluted, Millions)	FY 2024	~46 basic / ~48 diluted	Unchanged	Maintained
Share Repurchase Authorization ($USD Millions)	Ongoing	—	Up to $100	New/Announced Q1

Management noted Q2 likely flat to slightly down vs 2023; modest Q3 growth; accelerating Q4 growth as TiVo OS monetization begins in 2H .

Earnings Call Themes & Trends

Topic	Q3 2023 Mentions	Q4 2023 Mentions	Q1 2024 Mentions	Trend
TiVo OS expansion	Vestel shipping; 4th OEM signed; “Best of IFA” awards	Skyworth partnership; Vestel shipping into 7 countries; Sharp/Argos spring launches	Additional Japanese global brand; Argos Bush brand launched; Vestel shipping widely	Expanding OEMs and retail presence; preparing for U.S. launch later in 2024
Connected Car (AutoStage)	BMW AutoStage Video Service integrated; Ford program; 100M cars with HD Radio	BMW OTA expansion; >$300M committed business; 3 new AutoStage wins	AutoStage deployed >6M vehicles; Hyundai/Genesis standardize HD Radio	Strong deployment growth; widening OEM adoption
Pay TV Video-over-Broadband	Double-digit IPTV growth; >100 service providers selected TiVo IPTV	$60M 2023 revenue; 1.9M subs; TiVo Broadband launch	>2M subs; 3 new TiVo Broadband operators; target 2.4M subs by YE	Sustained double-digit subscriber growth and operator wins
Consumer Electronics	Multiyear renewals (Sony, Vestel, Skyworth); Top-3 PC OEM DTS:X	IMAX Enhanced renewals (Hisense, Xgimi); DTS:X for U.S. retailer; Masimo renewal	DTS:X renewals (Hisense, Xiaomi, TCL); new ASUS/MSI decoder licenses; Disney+/IMAX Enhanced titles	Mixed: renewals continue; Q1 revenue impacted by renewal timing
Perceive (strategic review)	License agreement with Big Tech; revenue recognized	Initiated formal process to evaluate alternatives (Centerview)	Review progressing; expected completion by end of summer	Monetization plus strategic options in flight
Capital allocation	—	Operating cash breakeven; share count framework	$100M repurchase authorization; maintain ~$100M operating cash balance	New capital return lever introduced

Management Commentary

“We remain focused on building out our TiVo OS footprint… accelerating the deployment of our TiVo Video-over-Broadband and DTS AutoStage solutions.” — CEO Jon Kirchner .
“We expect full year revenue to be in the range of $500 million to $530 million… monetizing our TVOS footprint in the second half of 2024.” — CFO Robert Andersen .
“AutoStage is now deployed in more than six million vehicles worldwide – a 50% increase since August 2023.” — CEO Jon Kirchner .
“We are taking steps to further reduce expenses as part of our ongoing business transformation.” — CEO Jon Kirchner .
“Authorization for share repurchases of up to $100 million… balanced approach considering growth and debt paydown.” — CFO Robert Andersen .

Q&A Highlights

TiVo OS partners and footprint: Management confident in reaching 2M active TVs by year-end; sixth brand launching “relatively quickly,” with additional partners in pipeline .
Pay TV dynamics: Declines in core products offset by IPTV growth; Pay TV down ~6% in Q1 similar to last year and tracking to smaller decline for full year .
U.S. TV launch timing/seasonality: Aim for retail presence ahead of holiday season; monetization lag follows installation; near-term monetization skew to Europe .
HD Radio penetration and AutoStage pull-through: Long-term target mid-60% penetration seen as reasonable; AutoStage drives enhanced infotainment differentiation globally .

Estimates Context

S&P Global consensus EPS and revenue estimates for Q1 2024 were unavailable at time of retrieval due to an API request limit. As a result, we cannot present a quantitative beat/miss analysis versus consensus for Q1.
We attempted to fetch “Primary EPS Consensus Mean,” “Revenue Consensus Mean,” and number of estimates for Q1 2024; retrieval failed due to daily request cap. Future comparisons will be anchored on S&P Global consensus once accessible.

Key Takeaways for Investors

Reaffirmed FY24 guide with clear H2 ramp narrative: TiVo OS monetization expected to drive accelerating revenue and EBITDA in Q4; sustained growth in AutoStage and IPTV should support margin expansion .
Capital return potential: $100M buyback authorization alongside ~75–77% non-GAAP gross margin framework and OpEx reductions improves per-share economics and downside support .
Connected Car momentum: >6M AutoStage deployments, HD Radio standardization, and multi-OEM engagements broaden monetization avenues (including video) and underpin long-term endpoint targets .
Pay TV transformation: IPTV subscriber base >2M with operator wins (Midco, Bluepeak, Buckeye) provides recurring growth vector to offset legacy declines; target 2.4M subs by YE24 .
CE volatility near-term: Renewal timing depressed Q1 CE revenue; however, multi-year DTS:X renewals and new decoder wins (ASUS/MSI) sustain platform relevance .
Near-term setup: Q2 likely flat to slightly down vs 2023, then gradual improvement; traders should watch TiVo OS U.S. launch milestones, incremental OEM wins, and AutoStage deployments as catalysts .
Medium-term thesis: Execution on multi-year targets (20M monetizable endpoints by end-2025) supports higher revenue quality and operating leverage; strategic actions (Perceive review) align capital with core entertainment platforms .

Additional Relevant Press Releases in Q2 Window

Board refresh: Appointment of Jeremi Gorman (ex-Netflix/Snap/Amazon) and Rod Randall (Siris Capital) adds expertise in content monetization, digital media, automotive and capital allocation; Board expanded to seven directors .
Connected Car consumer demand study: DTS “Connected Car Entertainment Trends” shows 25% YoY growth in in-vehicle video use, strong interest in gaming, and AM/FM radio as a critical purchasing factor—supporting AutoStage and HD Radio value propositions .

Citations:

Xperi Inc. (XPER)·Q1 2024 Earnings Summary