In This Article:
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Q4 Revenue: $253 million, a 140% increase year over year.
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Full Year 2024 Revenue: $869 million, a 58% increase year over year.
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Adjusted EBITA Q4: $198 million, with a margin of 78%.
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Adjusted EBITA Full Year 2024: 63% margin, a 20-point improvement over four years.
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GAAP EPS Q4: $4.09.
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Non-GAAP EPS Q4: $5.15.
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GAAP EPS Full Year 2024: $12.07.
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Non-GAAP EPS Full Year 2024: $14.97.
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Cash Flow from Operations Q4: $192 million.
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Free Cash Flow Q4: $169 million.
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Cash at Year End 2024: Almost $1 billion, with net cash over $500 million.
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Shareholder Returns 2024: $110 million through buybacks and dividends.
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2025 Revenue Guidance: $660 to $760 million.
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2025 Adjusted EBITA Guidance: $400 to $495 million.
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2025 Non-GAAP EPS Guidance: $9.69 to $12.92.
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Dividend Increase: 33% to $0.60 per share.
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Annualized Recurring Revenue Q4 2024: $468 million.
Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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InterDigital Inc (NASDAQ:IDCC) reported a 140% year-over-year increase in revenue for Q4 2024, reaching $253 million.
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The company achieved its highest annual revenue in history, with a 60% increase to $869 million for the year.
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InterDigital Inc (NASDAQ:IDCC) has licensed the top four largest smartphone manufacturers, covering approximately 70% of annual smartphone shipments worldwide.
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The company closed 14 new agreements in 2024, including significant deals with Google, Samsung, and TPV.
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InterDigital Inc (NASDAQ:IDCC) was recognized for its innovation, receiving an award for AI-powered receiver design for 6G communication and being named one of the world's 100 most innovative companies by LexisNexis.
Negative Points
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The company is engaged in a multijurisdictional enforcement action against Disney for intellectual property infringement, indicating potential legal challenges.
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InterDigital Inc (NASDAQ:IDCC) faces uncertainties in the timing and outcome of arbitration with Samsung, which could impact financial results.
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The company has $91 million in contract expirations expected in 2025, which may affect recurring revenue if not renewed timely.
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Geopolitical tensions, particularly between the US and China, could impact negotiations and contract renewals with Chinese customers.
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The company's guidance for 2025 includes assumptions about new agreements and arbitration results, which may not materialize as expected, leading to potential revenue fluctuations.
Q & A Highlights
Q: Can you provide some parameters around the timing and milestones for the Disney litigation and your engagement with other video streaming vendors? A: We have engaged Disney for over 2.5 years in bilateral negotiations and concluded that enforcement is needed. The timing of the lawsuit's resolution is uncertain, as it can vary from being resolved quickly to taking multiple years. We are also engaging with other major streaming service providers and hope to make progress through bilateral negotiations. - Liren Chen, President, CEO