Executive Summary

Q4 2024 delivered $122.4M revenue and non-GAAP EPS of $0.39, while GAAP diluted EPS was $1.02 boosted by a $77.9M divestiture gain; adjusted EBITDA was $22.7M with an 18.6% margin, nearly double the prior-year quarter’s 9.8% .
Mix was mixed: IPTV households rose to 2.6M (+37% YoY) and DTS AutoStage footprint reached 10M vehicles, but Media Platform revenue fell YoY due to lower linear ad spend and prior-year minimum-guarantee comparisons .
FY2025 guidance: revenue $480–$500M and adjusted EBITDA margin 16–18%; management expects back-half weighting, slightly positive operating cash flow, non-GAAP tax expense ~$20M, capex ~$20M, SBC ~$50M, and ~46M shares outstanding .
Near-term stock catalysts: ramp of TiVo OS in U.S. retail (Sharp launch), activation of TiVo One ad platform, and visible growth in active users/ARPU exiting 2025 (>5M active users; ARPU >$10), offset by expected core Pay TV declines and macro uncertainty in consumer electronics/auto .

What Went Well and What Went Wrong

What Went Well

TiVo OS footprint surpassed 2M activated smart TVs; Sharp TVs powered by TiVo launched in the U.S., adding an important retail channel .
IPTV footprint reached 2.6M subscriber households (+37% YoY), expanding the base for U.S. monetization via TiVo One .
“We closed the 2024 fiscal year on a strong operational note…expanding our independent media platform footprint across Smart TV, connected car, and video-over-broadband,” said CEO Jon Kirchner .

What Went Wrong

Media Platform revenue declined 15% YoY, driven by lower linear TV ad budgets from a repeat customer and tough comps from prior-year middleware minimum guarantees .
Reported revenue fell 11% YoY in Q4 (though up ~2% adjusted for divestitures), reflecting continued pressure in legacy Pay TV and core solutions amid market challenges .
Consumer Electronics and Connected Car face broader macro uncertainties; management highlighted cautious FY2025 expectations despite long-term opportunity .

Financial Results

Quarterly P&L Snapshot

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Millions)	$119.6	$132.9	$122.4
GAAP Diluted EPS ($)	($0.67)	($0.37)	$1.02
Non-GAAP EPS ($)	$0.12	$0.51	$0.39
Adjusted EBITDA ($USD Millions)	$14.6	$31.4	$22.7
Adjusted EBITDA Margin (%)	N/A	23.7%	18.6%

Notes: Q4 GAAP EPS and net income benefited from divestiture gains (Perceive/AutoSense), masking underlying profitability trends, which are better reflected in non-GAAP EPS and adjusted EBITDA .

Year-Over-Year vs Prior Quarter Commentary

Q4 revenue down 11% YoY (reported) but up ~2% after adjusting for AutoSense/Perceive divestitures; sequentially down from Q3 reflecting mix impacts and ad softness .
Adjusted EBITDA margin improved YoY to 18.6% vs 9.8% in Q4 2023; Q3 margin was stronger at 23.7% on mix and upfront minimum-guarantee recognition .

Segment and End-Market Highlights (Q4 2024, YoY)

Segment/Category	Q4 YoY Performance	Commentary
Pay TV	Down 8%	IPTV +35% YoY, offset by declines in core Pay TV and prior-year timing benefits
Consumer Electronics (ex-divestitures)	Up 2%	Strength in game console unit volumes; renewals in DTS audio
Connected Car	Up 9% reported; +42% ex-AutoSense	Upfront revenue from legacy audio minimum guarantees; HD Radio >110M vehicles
Media Platform	Down 15%	Lower linear ad spend and prior-year middleware minimum guarantees

KPIs and Footprint

KPI	Q2 2024	Q3 2024	Q4 2024
TiVo OS Activated Smart TVs	“Approaching 1M”	“Approaching 1M”	>2M
IPTV Subscriber Households	>2.25M	>2.4M	2.6M (+37% YoY)
DTS AutoStage Vehicles	>7M	>8M	>10M (doubling YoY)
HD Radio Vehicles	N/A	>8 brands/models expanded	>110M installed; ~60% penetration of new cars in N. America

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY2025	N/A	$480M–$500M	New
Adjusted EBITDA Margin	FY2025	N/A	16%–18%	New
Operating Cash Flow	FY2025	N/A	Slightly positive	New
Non-GAAP Tax Expense	FY2025	N/A	~$20M	New
Capital Investments (Capex)	FY2025	N/A	~$20M	New
Stock-Based Compensation (GAAP)	FY2025	N/A	~$50M (down vs 2024)	New
Basic/Diluted Shares	FY2025	N/A	~46M	New
FY2024 Outlook (for context)	FY2024	$500M–$530M revenue; Adj. EBITDA margin 12%–14%	Revised to $490M–$505M; Adj. EBITDA margin 14%–16%	Raised margin; revenue lowered

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2, Q3)	Current Period (Q4)	Trend
TiVo OS footprint & OEMs	Signed 7th partner; approaching 1M units; Europe availability across 15 countries	>2M activated; U.S. launch with Sharp; Thomson named 8th partner; continued OEM pipeline	Accelerating footprint; OEM expansion in U.S./EU
Monetization platform (TiVo One) & ARPU	Early deployment plans; focus on future monetization	TiVo One launched on video-over-broadband; homepage ads rolling out; exit-2025 goals: >5M active users; ARPU >$10	Activation ramp in 2025; ARPU scaling targeted
IPTV growth	>2.25M subs (Q2); >2.4M subs (Q3); NCTC broadband TV deal	2.6M subs; +37% YoY; 7 new TiVo Broadband customers in Q4 (total 20)	Consistent double-digit growth; expanded operators
Connected Car (AutoStage/HD Radio)	>7M AutoStage vehicles; continued HD Radio penetration	>10M vehicles; 3 AutoStage video wins in 2024; HD Radio >110M vehicles; ~60% penetration of new cars	Footprint doubled YoY; monetization potential
Macro/tariffs & CE/Auto caution	Ongoing macro pressures noted	Risks acknowledged; moderated FY2025 guidance; sequential active user/ARPU growth expected	Balanced tone; cautious near-term
Non-GAAP profitability focus	Profitability improving; business transformation	FY2024 adj. EBITDA margin 15% (doubled YoY); FY2025 guide 16–18%	Margin expansion trajectory

Management Commentary

“We closed the 2024 fiscal year on a strong operational note…This progress validates the value proposition of our independent media platform” — Jon Kirchner, CEO .
“Our multiyear goal is to drive meaningful revenue growth from over 20 million monetizable endpoints in home and in the car…we aim to achieve more than 5 million active TiVo One devices and ARPU above $10 exiting 2025” .
“Total revenue for the fourth quarter was $122M, down 11% from last year, but up 2% adjusting for AutoSense and Perceive…Media Platform was down 15% due to lower linear ad budgets and prior-year middleware MGs” — Robert Andersen, CFO .
“We expect full-year 2025 revenue of $480–$500M and adjusted EBITDA margin of 16%–18%…operating cash flow slightly positive; non-GAAP tax ~$20M; capex ~$20M; SBC ~$50M; ~46M shares” .

Q&A Highlights

TiVo OS strategy: Company plans to both deepen share with existing OEMs and add new partners; pipeline includes advanced discussions with potential back-half 2025 footprint impact .
Monetization ramp: TiVo One is a unified ad platform across smart TVs and IPTV devices; management targets sequential growth in active users and ARPU, exiting 2025 with >5M active users and ARPU >$10, with North America’s ad market as a key lever .
Shipments timing: Delayed 2024 launches are now ramping into spring 2025; Sharp’s U.S. units began shipping in December and became available in February .
IPTV monetization economics: Historically traditional ad models; TiVo One enables homepage/streaming ad monetization with rev share differences by partner but economics are not materially different for achieving U.S.-based ARPU .
Cash flow and macro tone: FY2025 operating cash flow guided slightly positive; free cash flow could turn positive with a stronger year, but not guided; macro/tariffs acknowledged with moderated expectations .

Estimates Context

Wall Street consensus EPS, revenue, and EBITDA estimates via S&P Global were unavailable at time of request due to data access limits; as a result, formal beat/miss analysis versus consensus cannot be provided at this time. Values retrieved from S&P Global.*

Key Takeaways for Investors

TiVo ecosystem is entering a monetization phase: activation of TiVo One across IPTV and smart TVs, with visibility to active user and ARPU targets exiting 2025; track quarterly progress in active users and ARPU for evidence of scaling .
Automotive footprint scale is significant: >10M AutoStage vehicles and >110M HD Radio installations provide long-term optionality for licensing/data/advertising; watch early monetization pilots in North America .
Profitability trajectory improving: FY2024 adj. EBITDA margin doubled to 15% with FY2025 guided to 16–18%; mix and cost actions are the drivers even as core Pay TV declines persist .
Media Platform revenue variability remains a watch item: linear ad budget lumpiness and prior-year MG comps pressured YoY; homepage/streaming ads via TiVo One should offset through 2025, albeit back-half weighted .
Balance sheet/liquidity stable: $131M cash at year-end, receivables-backed $55M facility refinancing, and $10M buyback in Q4; monitor operating cash flow inflection and capex discipline .
Near-term positioning: Expect Q1 2025 to be the lowest quarter with back-half improvement; core Pay TV declines are anticipated to offset IPTV growth near term, but 2026 growth is targeted as endpoints scale .

Appendix: Additional Data

GAAP to Non-GAAP Reconciliation Highlights (Q4 2024)

GAAP net income $62.964M included $77.899M gain on divestitures; non-GAAP adjusted EBITDA $22.711M; non-GAAP net income attributable to Company $17.682M .
Non-GAAP operating income $17.478M; Q4 2024 non-GAAP adjusted EBITDA margin 18.6% .

Balance Sheet and Cash Flow (Year-End 2024)

Cash and equivalents $130.564M; total assets $667.760M; total liabilities $238.683M; equity $429.077M .
Operating cash flow use $(55.340)M for 2024; net proceeds from divestitures $67.773M; buybacks $(19.990)M for full-year .

Selected Operating Metrics

U.S. retail presence established with Sharp TVs powered by TiVo; Thomson added as 8th European partner .
TiVo Broadband: 7 new customers in Q4; total 20 operators committed .
HD Radio penetration approaching 60% of new cars shipped annually in North America .

All figures and statements are sourced from Xperi’s Q4 2024 8-K and press release, Q2/Q3 2024 8-Ks, and Q4 2024 earnings call transcript, as cited above.

Xperi Inc. (XPER)·Q4 2024 Earnings Summary