Adeia Inc. Revenue Decreases by 15.1% in Q3 2024

By Bobby Samwell • Tuesday, November 12 15:16 • Permanent Link

Adeia Inc., a leading media and semiconductor intellectual property licensing company, recently released its 10-Q report. The company operates globally, licensing its patent portfolios to various markets, including multichannel video programming distributors, consumer electronics manufacturers, and social media companies. In the third quarter of 2024, Adeia's revenue decreased by $15.3 million, or 15.1%, from $101.4 million in 2023 to $86.1 million in 2024. Recurring revenues decreased by $0.9 million, or 1.1%, from $83.6 million in 2023 to $82.7 million in 2024. Non-recurring revenues also decreased by $14.4 million, or 80.9%, from $17.8 million in 2023 to $3.4 million in 2024. Cash provided by operating activities decreased by $6.9 million, or 32.6%, from $21.2 million in 2023 to $14.3 million in 2024. The company made $12.0 million in principal payments on its term loan, bringing the outstanding balance to $537.1 million as of September 30, 2024.

For the nine months ended September 30, 2024, Adeia's revenue decreased by $45.1 million, or 14.9%, from $301.9 million in 2023 to $256.9 million in 2024. Recurring revenues decreased by $5.2 million, or 2.1%, from $255.1 million in 2023 to $249.8 million in 2024. Non-recurring revenues decreased by $39.8 million, or 85.0%, from $46.8 million in 2023 to $7.0 million in 2024. Cash provided by operating activities decreased by $8.3 million, or 7.3%, from $113.3 million in 2023 to $105.0 million in 2024. The company repriced its term loan, lowering the interest rate by 61 basis points, and made $64.2 million in principal payments, bringing the outstanding balance to $537.1 million as of September 30, 2024.

Adeia's research and development expense increased by $1.1 million, or 8%, from $13.8 million in 2023 to $14.8 million in 2024 for the three months ended September 30, 2024. For the nine months ended September 30, 2024, research and development expense increased by $3.7 million, or 9%, from $39.9 million in 2023 to $43.5 million in 2024. This increase was primarily due to an increase in patent prosecution, patent portfolio development costs, and personnel-related costs as a result of increased headcount.

Today the company's shares have moved 5.0% to a price of $12.56. Check out the company's full 10-Q submission here.

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