In This Article:
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Q1 Revenue: $357 million, up 13% year-over-year.
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Licensing Revenue: $330 million, up 12% year-over-year.
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Products and Services Revenue: $27 million, up 22% year-over-year.
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Mobile Revenue: Up 74% year-over-year.
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Non-GAAP Earnings Per Share (EPS): $1.14 per diluted share.
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Operating Cash Flow: $107 million.
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Stock Repurchase: $15 million worth of common stock repurchased.
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Dividend: $0.33 per share, up 10% from the previous year.
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Cash and Investments: Approximately $611 million.
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Restructuring Charge: Approximately $5 million.
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Q2 Revenue Guidance: $355 million to $385 million.
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Q2 Licensing Revenue Guidance: $330 million to $360 million.
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Q2 Gross Margin Guidance: Approximately 91% on a non-GAAP basis.
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Q2 Non-GAAP Operating Expenses Guidance: $190 million to $200 million.
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Q2 Non-GAAP EPS Guidance: $1.19 to $1.34 per diluted share.
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Full-Year Revenue Guidance: $1.33 billion to $1.39 billion.
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Full-Year Non-GAAP Earnings Guidance: $3.99 to $4.14 per share.
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Full-Year Licensing Revenue Guidance: $1.22 billion to $1.28 billion.
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Full-Year Non-GAAP Operating Expenses Guidance: $765 million to $775 million.
Release Date: January 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Licensing revenue and total revenue came in towards the high end of the guidance range, with non-GAAP earnings exceeding expectations.
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Dolby Atmos and Dolby Vision are expected to grow roughly 15% for the full year, indicating strong market demand.
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The company has announced partnerships with over 20 OEMs in the automotive sector, expanding Dolby Atmos into more car models.
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Dolby Laboratories Inc (NYSE:DLB) reported a 13% increase in Q1 revenue compared to the previous year, driven by strong licensing performance.
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The company has a robust ecosystem with strong engagement from content creators, distributors, and OEM partners, supporting future growth.
Negative Points
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Foundational revenues are expected to be roughly flat for the full year, indicating limited growth in some core areas.
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The timing of recoveries, minimum volume commitments, and true-ups can drive volatility between quarters, affecting financial predictability.
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Consumer Electronics revenue is expected to decline mid-single digits for the year, reflecting challenges in that segment.
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The macroeconomic environment, including supply chain issues and geopolitical instability, poses risks to the company's outlook.
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GAAP operating expenses included a restructuring charge of approximately $5 million, indicating ongoing adjustments in resource allocation.