InterDigital Reports 30% YoY Revenue Increase

InterDigital, Inc. has released its financial results for the first quarter of 2024, showcasing significant progress towards its 2024 revenue guidance of $620 million to $670 million. The company reported a 30% increase in year-over-year (YoY) revenue, reaching $263.5 million for the quarter, marking one of the highest quarters in its history.

The company's operating expenses also saw a significant increase, reaching $159.8 million, representing a 92% change from the first quarter of 2023. However, despite the increase in operating expenses, InterDigital still managed to achieve a net income of $81.7 million, albeit with a 22% decrease from the same period last year.

When looking at the non-GAAP metrics, the company's adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the first quarter of 2024 was $130.4 million, reflecting a 16% decrease from the first quarter of 2023. Additionally, the non-GAAP net income for the first quarter of 2024 was $94.5 million, representing a 24% decrease from the same period last year.

The breakdown of revenue by type indicates that recurring revenues amounted to $96.9 million, showing a 5% decrease from the first quarter of 2023, while catch-up revenues surged to $166.7 million, signifying a substantial 65% increase from the previous year.

The revenue by program also exhibited noteworthy changes, with smartphone revenue decreasing by 57% to $80.3 million and CE, IoT/Auto revenue skyrocketing to $182.5 million, marking an impressive 1,035% increase from the first quarter of 2023.

In terms of returning capital to shareholders, InterDigital engaged in share repurchases totaling $29.0 million and declared dividends amounting to $10.2 million in the first quarter of 2024, resulting in a total return of capital of $39.2 million.

Looking ahead, the company has reaffirmed its full year 2024 outlook, with revenue projected to range between $620 million and $670 million and adjusted EBITDA expected to fall within the range of $310 million to $345 million.

InterDigital's first quarter results reflect the company's strong performance in securing new license agreements, particularly in the consumer electronics and IoT sectors, setting the stage for potential growth opportunities as it progresses through 2024. Today the company's shares have moved 5.3% to a price of $103.1. Check out the company's full 8-K submission here.

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