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InterDigital, Inc. IDCC reported mixed fourth-quarter 2024 results, with the top line beating the Zacks Consensus Estimate but the bottom line missing the same. The company generated higher revenues year over year, driven by solid licensing momentum and product innovation. IDCC is also advancing its leadership position in AI (artificial intelligence) applications for wireless and video technology.
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Net Income
Quarterly net income increased to $133.1 million or $4.09 per share from $39.1 million or $1.41 per share in the year-earlier quarter. The increase was attributable to top-line expansion.
Non-GAAP net income was $150.6 million or $5.15 per share, up from $37.5 million or $1.41 per share in the year-ago quarter. The bottom line missed the Zacks Consensus Estimate of $5.40.
In 2024, the company reported GAAP net income of $358.6 million or $12.07 per share, up from $214.1 million or $7.62 per share in the year-ago quarter. Non-GAAP net income improved to $408.9 million or $14.97 per share up from $254.4 million or $9.23 per share in 2023.
InterDigital, Inc. Price, Consensus and EPS Surprise
InterDigital, Inc. price-consensus-eps-surprise-chart | InterDigital, Inc. Quote
Revenues
Net sales in the quarter rose to $252.8 million from $105.5 million in the year-ago quarter. The year-over-year improvement was induced by higher catch-up revenues in smartphone licensing programs during the quarter. The top line beat the consensus estimate of $244 million.
In 2024, the company generated $868.5 million in revenues up 58% year over year.
In the fourth quarter, Smartphone revenues increased 162% year over year to $230.6 million. Growth was primarily driven by catch-up revenues from new agreements signed with the world’s major device makers in 2024. Revenues from CE, IoT/Auto group improved to $21.8 million from $17 million in the prior year quarter.
Total recurring revenues were $117 million, up 13% year over year. Revenue missed our estimate of $151.1 million. Total catch-up revenues are reported at $135.8 million, up from $2.2 million in the prior year quarter. Catch-up revenues beat our estimate of $92.2 million.
Other Details
Adjusted EBITDA rose to $198.1 million from $53.3 million in the year-ago quarter. Total operating expenses rose to $90.3 million from $80.2 million in the year-ago quarter. The increase in operating costs is attributed to higher research, portfolio development, and general and administrative expenses. Operating income increased to $162.5 million from $25.3 million in the year-earlier quarter.