Adeia Announces Fourth Quarter and Full Year 2024 Financial Results
Adeia (NASDAQ: ADEA) reported strong Q4 2024 results with record post-separation revenue of $119.2 million, up from $86.1 million in Q3 2024. The company achieved a 67% operating margin and signed 10 new deals across multiple verticals, including strategic agreements with Amazon, Canon, and a luxury retailer.
Q4 highlights include GAAP diluted EPS of $0.32, non-GAAP diluted EPS of $0.47, and operating cash flows of $107.5 million. The company executed $50 million in debt payments and repurchased $20 million of common stock.
Full-year 2024 revenue was $376.0 million compared to $388.8 million in 2023. The company's patent portfolio grew 12% year-over-year to over 12,000 assets. For 2025, Adeia projects revenue between $390.0-430.0 million.
Adeia (NASDAQ: ADEA) ha riportato risultati solidi per il quarto trimestre del 2024, con entrate record post-separazione di 119,2 milioni di dollari, in aumento rispetto agli 86,1 milioni di dollari del terzo trimestre del 2024. L'azienda ha raggiunto un margine operativo del 67% e ha firmato 10 nuovi accordi in diversi settori, inclusi accordi strategici con Amazon, Canon e un rivenditore di lusso.
Tra i punti salienti del quarto trimestre ci sono un utile per azione (EPS) diluito GAAP di 0,32 dollari, un EPS diluito non GAAP di 0,47 dollari e flussi di cassa operativi di 107,5 milioni di dollari. L'azienda ha eseguito pagamenti di debito per 50 milioni di dollari e ha riacquistato azioni ordinarie per 20 milioni di dollari.
Le entrate totali per l'anno 2024 sono state di 376,0 milioni di dollari rispetto ai 388,8 milioni di dollari del 2023. Il portafoglio di brevetti dell'azienda è cresciuto del 12% su base annua, superando i 12.000 asset. Per il 2025, Adeia prevede entrate comprese tra 390,0 e 430,0 milioni di dollari.
Adeia (NASDAQ: ADEA) reportó resultados sólidos para el cuarto trimestre de 2024, con ingresos récord post-separación de 119,2 millones de dólares, en comparación con los 86,1 millones de dólares del tercer trimestre de 2024. La compañía logró un margen operativo del 67% y firmó 10 nuevos acuerdos en múltiples verticales, incluidos acuerdos estratégicos con Amazon, Canon y un minorista de lujo.
Los puntos destacados del cuarto trimestre incluyen un EPS diluido GAAP de 0,32 dólares, un EPS diluido no GAAP de 0,47 dólares y flujos de efectivo operativos de 107,5 millones de dólares. La compañía ejecutó pagos de deuda por 50 millones de dólares y recompró acciones ordinarias por 20 millones de dólares.
Los ingresos totales del año 2024 fueron de 376,0 millones de dólares en comparación con los 388,8 millones de dólares de 2023. La cartera de patentes de la compañía creció un 12% interanual, superando los 12.000 activos. Para 2025, Adeia proyecta ingresos entre 390,0 y 430,0 millones de dólares.
Adeia (NASDAQ: ADEA)는 2024년 4분기 실적을 발표했으며, 분리 이후 기록적인 수익인 1억 1,920만 달러를 기록했습니다. 이는 2024년 3분기의 8,610만 달러에서 증가한 수치입니다. 회사는 67%의 운영 마진을 달성했으며, Amazon, Canon 및 고급 소매업체와의 전략적 계약을 포함하여 여러 분야에서 10개의 새로운 계약을 체결했습니다.
4분기 주요 내용으로는 GAAP 기준 희석 EPS가 0.32달러, 비GAAP 기준 희석 EPS가 0.47달러, 운영 현금 흐름이 1억 7,500만 달러입니다. 회사는 5천만 달러의 부채 상환을 실행했으며, 2천만 달러의 보통주를 재매입했습니다.
2024년 전체 연간 수익은 3억 7,600만 달러로, 2023년의 3억 8,880만 달러에 비해 감소했습니다. 회사의 특허 포트폴리오는 12% 증가하여 12,000개 이상의 자산을 보유하게 되었습니다. 2025년에는 Adeia가 3억 9,000만 달러에서 4억 3,000만 달러 사이의 수익을 예상하고 있습니다.
Adeia (NASDAQ: ADEA) a annoncé de solides résultats pour le quatrième trimestre 2024, avec des revenus record post-séparation de 119,2 millions de dollars, en hausse par rapport aux 86,1 millions de dollars du troisième trimestre 2024. L'entreprise a atteint une marge opérationnelle de 67 % et a signé 10 nouveaux contrats dans plusieurs secteurs, y compris des accords stratégiques avec Amazon, Canon et un détaillant de luxe.
Les points forts du quatrième trimestre comprennent un BPA dilué GAAP de 0,32 dollar, un BPA dilué non-GAAP de 0,47 dollar et des flux de trésorerie opérationnels de 107,5 millions de dollars. L'entreprise a effectué des paiements de dette de 50 millions de dollars et a racheté 20 millions de dollars d'actions ordinaires.
Le chiffre d'affaires total pour l'année 2024 s'élevait à 376,0 millions de dollars, contre 388,8 millions de dollars en 2023. Le portefeuille de brevets de l'entreprise a augmenté de 12 % par rapport à l'année précédente, dépassant les 12 000 actifs. Pour 2025, Adeia prévoit un chiffre d'affaires compris entre 390,0 et 430,0 millions de dollars.
Adeia (NASDAQ: ADEA) hat starke Ergebnisse für das vierte Quartal 2024 berichtet, mit einem Rekordumsatz nach der Trennung von 119,2 Millionen Dollar, ein Anstieg von 86,1 Millionen Dollar im dritten Quartal 2024. Das Unternehmen erzielte eine Betriebsgewinnmarge von 67% und unterzeichnete 10 neue Verträge in verschiedenen Sektoren, einschließlich strategischer Vereinbarungen mit Amazon, Canon und einem Luxus-Einzelhändler.
Die Highlights des vierten Quartals umfassen einen verwässerten GAAP-EPS von 0,32 Dollar, einen nicht-GAAP verwässerten EPS von 0,47 Dollar und operative Cashflows von 107,5 Millionen Dollar. Das Unternehmen hat 50 Millionen Dollar an Schuldenzahlungen geleistet und 20 Millionen Dollar an Stammaktien zurückgekauft.
Der Gesamtumsatz für das Jahr 2024 betrug 376,0 Millionen Dollar im Vergleich zu 388,8 Millionen Dollar im Jahr 2023. Das Patentportfolio des Unternehmens wuchs im Jahresvergleich um 12% auf über 12.000 Vermögenswerte. Für 2025 prognostiziert Adeia einen Umsatz zwischen 390,0 und 430,0 Millionen Dollar.
- Record Q4 revenue of $119.2 million, up 38.4% from Q3 2024
- Strong operating margin of 67%
- Secured strategic deals with major companies including Amazon and Canon
- 12% growth in patent portfolio to over 12,000 assets
- Reduced term loan debt by $114.2 million in 2024
- Projects revenue growth to $390-430 million for 2025
- Full-year 2024 revenue declined to $376.0 million from $388.8 million in 2023
Insights
Adeia's Q4 2024 results reveal a company executing exceptionally well on multiple fronts. The $119.2 million quarterly revenue represents a remarkable 38.4% sequential increase from Q3, demonstrating accelerating growth momentum. The 67% operating margin is particularly impressive, significantly outperforming typical technology licensing companies that average 30-40% margins.
The strategic agreements with Amazon and Canon are transformative developments that diversify revenue streams beyond traditional consumer electronics. These partnerships, combined with the luxury retailer e-commerce deal, indicate Adeia's successful expansion into higher-growth digital commerce segments. The company's patent portfolio growth to 12,000 assets, with specific focus on generative AI and semiconductor technologies, positions them well for future licensing opportunities in emerging technologies.
The company's financial management deserves particular attention. The $50 million debt reduction and successful term loan repricing (reducing interest rate by 50 basis points) demonstrate strong cash flow management and will result in meaningful interest savings. The $20 million stock repurchase at current valuation levels suggests management's confidence in the company's intrinsic value.
Looking ahead, the 2025 guidance of $390-430 million in revenue indicates continued growth potential, supported by a robust pipeline of licensing opportunities. The focus on generative AI and semiconductor technologies, coupled with strategic patent acquisitions in OTT and broadband connectivity, suggests a well-planned approach to capturing value in high-growth market segments.
Achieved record post-separation revenue and cash from operations in the fourth quarter
Signed 10 deals in the fourth quarter and 32 during the year
Paid down
SAN JOSE, Calif., Feb. 18, 2025 (GLOBE NEWSWIRE) -- Adeia Inc. (Nasdaq: ADEA) (the “Company” or “Adeia”) today announced financial results for the fourth quarter and full year ended December 31, 2024.
“Our fourth quarter results showed the evolution of our business model as we continued to grow and expand into our target growth markets. During the quarter, we signed 10 deals across multiple verticals, bringing the total deals for the year to 32. We are very pleased with our deal execution closing out the year with 4 new customer agreements, including important new strategic deals with Amazon, Canon and with a luxury retailer e-commerce customer. These new deals further expand and diversify our customer base. In addition, we continued our strong track record of renewal agreements with Roku and Sharp in the consumer electronics market,” said Paul E. Davis, chief executive officer of Adeia. “Our record post-separation revenue and operating cash flows, and our best-in-class operating margin of
“In 2024 we grew our total patent portfolio by an impressive
Fourth Quarter Financial Highlights
- Revenue was
$119.2 million as compared to$86.1 million in the third quarter of 2024 - GAAP diluted earnings per share (EPS) was
$0.32 and non-GAAP diluted EPS was$0.47 - GAAP net income was
$36.0 million and adjusted EBITDA was$80.3 million - Cash flows from operations was
$107.5 million - Paid down
$50.0 million on our term loan - Repurchased
$20.0 million of our common stock
Full Year 2024 Financial Highlights
- Revenue was
$376.0 million as compared to$388.8 million in 2023 - GAAP diluted EPS was
$0.57 and non-GAAP diluted EPS was$1.26 - GAAP net income was
$64.6 million and adjusted EBITDA was$234.3 million - Cash flows from operations was
$212.5 million - Paid down
$114.2 million on our term loan - Repurchased
$20.0 million of our common stock
Business Highlights
- Signed multi-year license agreements with new customers, including Amazon, Canon and a luxury retailer e-commerce customer for access to our media portfolio
- Signed multi-year renewals with Roku and Sharp for access to our media portfolio
- Signed multi-year renewals with three Pay-TV operators and an international OTT provider for access to our media portfolio
- Signed a technology transfer agreement with a new semiconductor customer, providing high performance imaging and detection systems, for access to our hybrid bonding technology
- In 2024, we acquired strategic patent portfolios for targeted growth markets, including OTT and broadband connectivity
- In January 2025, repriced our term loan B, which lowered our interest rate by 50 basis points
Capital Allocation
During the quarter, the Company made
During the quarter, the Company repurchased
On December 18, 2024, the Company distributed
The Board of Directors declared a dividend of
Financial Outlook
The Company’s full year 2025 outlook is as follows:
Category (in millions, except for tax rate) | 2025 GAAP Outlook | 2025 Non-GAAP Outlook | ||
Revenue | ||||
Operating expenses(1) | ||||
Interest expense | ||||
Other income | ||||
Tax rate | ||||
Net income(2) | ||||
Adjusted EBITDA(2) | N/A | |||
Diluted shares outstanding | 113.0 − 114.0 | 113.0 − 114.0 |
(1) | See tables for reconciliation of GAAP to non-GAAP operating expenses |
(2) | See tables for reconciliation of GAAP net income to (i) non-GAAP net income and (ii) adjusted earnings before interest expense, income taxes, depreciation and amortization (adjusted EBITDA) |
Conference Call Information
The Company will hold its fourth quarter 2024 earnings conference call at 2:00 PM Pacific Time (5:00 PM Eastern Time) on Tuesday, February 18, 2025. To access the call in the U.S., please dial +1 (888) 660-6411, and for international callers, dial +1 (929) 203-0849. All participants should dial in 15 minutes prior to the start of the conference call. The Company also suggests utilizing the webcast link to access the live call and the replay at Q4 2024 Earnings Call Webcast.
Safe Harbor Statement
This press release contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on information available to the Company as of the date hereof, as well as the Company’s current expectations, assumptions, estimates and projections that involve risks and uncertainties. In this context, forward-looking statements often address expected future business, financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “could,” “seek,” “see,” “will,” “may,” “would,” “might,” “potentially,” “estimate,” “continue,” “target,” similar expressions or the negatives of these words or other comparable terminology that convey uncertainty of future events or outcomes. All forward-looking statements by their nature address matters that involve risks and uncertainties, many of which are beyond the Company’s control, and are not guarantees of future results.
Forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statements. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. Important risk factors that may cause such a difference include, but are not limited to: the Company’s ability to implement its business strategy; the Company’s ability to enter into new and renewal license agreements with customers on favorable terms; the Company’s ability to retain and hire key personnel; uncertainty as to the long-term value of the Company’s common stock; legislative, regulatory and economic developments affecting the Company’s business; general economic and market developments and conditions; the Company’s ability to grow and expand its patent portfolios; changes in technology and development of new technology in the industries in which in which the Company operates; the evolving legal, regulatory and tax regimes under which the Company operates; unforeseen liabilities and expenses; risks associated with the Company’s indebtedness; the Company’s ability to achieve the intended benefits of, and its ability to recognize the anticipated tax treatment of, the spin-off of its product business; unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism or outbreak of war or hostilities, natural disasters and global health pandemics, each of which may have an adverse impact on the Company’s business, results of operations, and financial condition. These risks, as well as other risks associated with the Company’s business, are more fully discussed in the Company’s filings with the U.S. Securities and Exchange Commission (“SEC”), including the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. While the list of factors presented here is, and the list of factors presented in the Company’s filings with the SEC are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements.
Causes of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, failure to complete licensing arrangements on anticipated terms and timeline, failure to prevail in litigation we may bring against third parties, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on the Company’s consolidated financial condition, results of operations, liquidity or trading price of common stock. The Company does not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.
About Adeia Inc.
Adeia is a leading R&D and intellectual property (IP) licensing company that accelerates the adoption of innovative technologies in the media and semiconductor industries. Adeia’s fundamental innovations underpin technology solutions that are shaping and elevating the future of digital entertainment and electronics. Adeia’s IP portfolios power the connected devices that touch the lives of millions of people around the world every day as they live, work and play. For more, please visit www.adeia.com.
Non-GAAP Financial Measures
In addition to disclosing financial results calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP), the Company’s earnings release contains non-GAAP financial measures adjusted, where applicable, for either one-time or ongoing non-cash acquired intangibles amortization charges, costs related to actual or planned business combinations including transaction fees, integration costs, severance, facility closures, and retention bonuses, separation costs, all forms of stock-based compensation, loss on debt extinguishment, expensed debt refinancing costs, impairment of intangible assets, impact of certain foreign currency adjustments, discontinued operations and related tax effects. In addition, adjusted EBITDA adjusts for recurring charges of interest expense, income taxes, depreciation and amortization. Management believes that the non-GAAP measures used in this release provide investors with important perspectives on the Company’s ongoing business and financial performance and are helpful to provide investors with an understanding of our core operating results reflecting our normal business operations. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. Our use of non-GAAP financial measures has certain limitations in that the non-GAAP financial measures we use may not be directly comparable to those reported by other companies. For example, the terms used in this press release, such as EBITDA margin, which is defined as EBITDA as a percentage of revenue, adjusted EBITDA, non-GAAP operating expenses, non-GAAP net income and non-GAAP diluted earnings per share (EPS) do not have a standardized meaning. Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of our performance in relation to other companies. We seek to compensate for the limitation of our non-GAAP presentation by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures in the tables attached hereto. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures. All financial data is presented on a GAAP basis except where the Company indicates its presentation is on a non-GAAP basis.
Set forth below are reconciliations of the Company’s reported and forecasted GAAP to non-GAAP financial metrics.
Investor Contact:
Chris Chaney
Vice President, Investor Relations
IR@adeia.com
– Tables Follow –
SOURCE: ADEIA INC.
ADEA
ADEIA INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||||||||||
Revenue | $ | 119,168 | $ | 86,867 | $ | 376,024 | $ | 388,788 | |||||||
Operating expenses: | |||||||||||||||
Research and development | 16,049 | 14,369 | 59,598 | 54,264 | |||||||||||
Selling, general and administrative | 27,894 | 24,049 | 103,443 | 95,226 | |||||||||||
Amortization expense | 13,934 | 23,010 | 70,721 | 93,735 | |||||||||||
Litigation expense | 3,809 | 2,172 | 13,653 | 9,333 | |||||||||||
Total operating expenses | 61,686 | 63,600 | 247,415 | 252,558 | |||||||||||
Operating income | 57,482 | 23,267 | 128,609 | 136,230 | |||||||||||
Interest expense | (12,310 | ) | (15,437 | ) | (52,539 | ) | (62,574 | ) | |||||||
Other income and expense, net | 1,311 | 1,597 | 5,570 | 6,320 | |||||||||||
Loss on debt extinguishment | — | — | (453 | ) | — | ||||||||||
Income before income taxes | 46,483 | 9,427 | 81,187 | 79,976 | |||||||||||
Provision for (benefit from) income taxes | 10,455 | (3,273 | ) | 16,564 | 12,604 | ||||||||||
Net income | $ | 36,028 | $ | 12,700 | $ | 64,623 | $ | 67,372 | |||||||
Net income per share: | |||||||||||||||
Basic | $ | 0.33 | $ | 0.12 | $ | 0.59 | $ | 0.63 | |||||||
Diluted | $ | 0.32 | $ | 0.11 | $ | 0.57 | $ | 0.60 | |||||||
Weighted average number of shares used in per share calculations: | |||||||||||||||
Basic | 109,113 | 107,242 | 108,647 | 106,554 | |||||||||||
Diluted | 113,597 | 112,833 | 113,061 | 112,849 | |||||||||||
ADEIA INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) | |||||||
December 31, | December 31, | ||||||
2024 | 2023 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 78,825 | $ | 54,560 | |||
Marketable securities | 31,567 | 29,012 | |||||
Accounts receivable, net | 34,145 | 39,651 | |||||
Unbilled contracts receivable | 104,047 | 74,919 | |||||
Other current assets | 9,792 | 7,700 | |||||
Total current assets | 258,376 | 205,842 | |||||
Long-term unbilled contracts receivable | 62,767 | 73,843 | |||||
Property and equipment, net | 6,278 | 6,971 | |||||
Operating lease right-of-use assets | 9,322 | 9,484 | |||||
Intangible assets, net | 301,177 | 347,172 | |||||
Goodwill | 313,660 | 313,660 | |||||
Long-term income tax receivable | 112,441 | 120,338 | |||||
Other long-term assets | 33,940 | 28,246 | |||||
Total assets | $ | 1,097,961 | $ | 1,105,556 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 8,045 | $ | 9,623 | |||
Accrued liabilities | 24,517 | 19,138 | |||||
Current portion of long-term debt, net | 21,021 | 66,145 | |||||
Deferred revenue | 19,523 | 7,132 | |||||
Total current liabilities | 73,106 | 102,038 | |||||
Deferred revenue, less current portion | 64,555 | 17,672 | |||||
Long-term debt, net | 454,435 | 519,550 | |||||
Noncurrent operating lease liabilities | 9,480 | 9,730 | |||||
Long-term income tax payable | 84,585 | 81,834 | |||||
Other long-term liabilities | 15,229 | 18,110 | |||||
Total liabilities | 701,390 | 748,934 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Preferred stock | — | — | |||||
Common stock | 125 | 121 | |||||
Additional paid-in capital | 648,914 | 635,331 | |||||
Treasury stock at cost | (255,301 | ) | (222,497 | ) | |||
Accumulated other comprehensive loss | (1 | ) | (8 | ) | |||
Accumulated deficit | 2,834 | (56,325 | ) | ||||
Total stockholders’ equity | 396,571 | 356,622 | |||||
Total liabilities and stockholders’ equity | $ | 1,097,961 | $ | 1,105,556 | |||
ADEIA INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) | |||||||
Twelve Months Ended | |||||||
December 31, 2024 | December 31, 2023 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 64,623 | $ | 67,372 | |||
Adjustments to reconcile net income to net cash from operating activities: | |||||||
Depreciation of property and equipment | 2,058 | 1,539 | |||||
Amortization of intangible assets | 70,721 | 93,735 | |||||
Stock-based compensation expense | 26,641 | 18,057 | |||||
Deferred income tax | (7,141 | ) | 11,392 | ||||
Loss on debt extinguishment | 453 | — | |||||
Amortization of debt issuance costs | 3,475 | 4,302 | |||||
Other | (1,573 | ) | (252 | ) | |||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 6,256 | 18,268 | |||||
Unbilled contracts receivable | (18,052 | ) | (34,303 | ) | |||
Other assets | 7,414 | (4,502 | ) | ||||
Accounts payable | (372 | ) | (894 | ) | |||
Accrued and other liabilities | 3,684 | (14,604 | ) | ||||
Deferred revenue | 54,274 | (7,355 | ) | ||||
Net cash from operating activities | 212,461 | 152,755 | |||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (1,821 | ) | (3,812 | ) | |||
Purchases of intangible assets | (20,476 | ) | (2,531 | ) | |||
Purchases of short-term investments | (33,175 | ) | (42,845 | ) | |||
Proceeds from maturities of investments | 31,450 | 14,700 | |||||
Net cash from investing activities | (24,022 | ) | (34,488 | ) | |||
Cash flows from financing activities: | |||||||
Dividends paid | (21,767 | ) | (21,339 | ) | |||
Repayment of debt | (114,167 | ) | (148,000 | ) | |||
Proceeds from employee stock purchase program and exercise of stock options | 3,247 | 2,351 | |||||
Repurchases of common stock | (18,706 | ) | — | ||||
Repurchases of common stock for tax withholdings on equity awards | (12,781 | ) | (11,274 | ) | |||
Net cash from financing activities | (164,174 | ) | (178,262 | ) | |||
Net increase (decrease) in cash and cash equivalents | 24,265 | (59,995 | ) | ||||
Cash and cash equivalents at beginning of period | 54,560 | 114,555 | |||||
Cash and cash equivalents at end of period | $ | 78,825 | $ | 54,560 | |||
ADEIA INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands, except per share amounts) (unaudited) | |||||||||||||||
Net income | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||||||||||
GAAP net income | $ | 36,028 | $ | 12,700 | $ | 64,623 | $ | 67,372 | |||||||
Adjustments to GAAP net income: | |||||||||||||||
Stock-based compensation expense: | |||||||||||||||
Research and development | 1,178 | 814 | 4,206 | 2,911 | |||||||||||
Selling, general and administrative | 6,307 | 4,173 | 22,435 | 15,146 | |||||||||||
Amortization expense | 13,934 | 23,010 | 70,721 | 93,735 | |||||||||||
Transaction costs recorded in selling, general and administrative | — | — | 1,255 | — | |||||||||||
Separation and other related costs recorded in selling, general and administrative (1) | 843 | 2,409 | 5,047 | 12,632 | |||||||||||
Severance and retention costs recorded in selling, general and administrative | — | — | — | 78 | |||||||||||
Total operating expenses adjustments | 22,262 | 30,406 | 103,664 | 124,502 | |||||||||||
Other income and expense, net | — | — | — | (302 | ) | ||||||||||
Loss on debt extinguishment | — | — | 453 | — | |||||||||||
Non-GAAP tax adjustment (2) | (5,356 | ) | (12,435 | ) | (26,055 | ) | (34,356 | ) | |||||||
Non-GAAP net income | $ | 52,934 | $ | 30,671 | $ | 142,685 | $ | 157,216 | |||||||
Diluted earnings per share | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||||||||||
GAAP diluted earnings per share | $ | 0.32 | $ | 0.11 | $ | 0.57 | $ | 0.60 | |||||||
Adjustments to GAAP diluted earnings per share: | |||||||||||||||
Stock-based compensation expense: | |||||||||||||||
Research and development | 0.01 | 0.01 | 0.04 | 0.03 | |||||||||||
Selling, general and administrative | 0.06 | 0.04 | 0.20 | 0.13 | |||||||||||
Amortization expense | 0.12 | 0.20 | 0.63 | 0.83 | |||||||||||
Transaction costs recorded in selling, general and administrative | — | — | 0.01 | — | |||||||||||
Separation and other related costs recorded in selling, general and administrative (1) | 0.01 | 0.02 | 0.04 | 0.11 | |||||||||||
Total operating expenses adjustments | 0.20 | 0.27 | 0.92 | 1.10 | |||||||||||
Other income and expense, net | — | — | — | — | |||||||||||
Loss on debt extinguishment | — | — | — | — | |||||||||||
Non-GAAP tax adjustment (2) | (0.05 | ) | (0.11 | ) | (0.23 | ) | (0.31 | ) | |||||||
Non-GAAP diluted earnings per share | $ | 0.47 | $ | 0.27 | $ | 1.26 | $ | 1.39 |
(1) | Represents separation and related costs that were incurred subsequent to the separation on October 1, 2022, including expenses incurred on a transitional basis under a contract shared with Xperi Inc. |
(2) | The provision for income taxes is adjusted to reflect the net income tax effects of the various non-GAAP pretax adjustments. |
ADEIA INC. GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION (in thousands) (unaudited) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||||||||||
GAAP net income | $ | 36,028 | $ | 12,700 | $ | 64,623 | $ | 67,372 | |||||||
Adjustments to GAAP net income: | |||||||||||||||
Stock-based compensation expense: | |||||||||||||||
Research and development | 1,178 | 814 | 4,206 | 2,911 | |||||||||||
Selling, general and administrative | 6,307 | 4,173 | 22,435 | 15,146 | |||||||||||
Transaction costs recorded in selling, general and administrative | — | — | 1,255 | — | |||||||||||
Separation and other related costs recorded in selling, general and administrative (1) | 843 | 2,409 | 5,047 | 12,632 | |||||||||||
Severance and retention costs recorded in selling, general and administrative | — | — | — | 78 | |||||||||||
Amortization expense | 13,934 | 23,010 | 70,721 | 93,735 | |||||||||||
Depreciation expense | 522 | 388 | 2,058 | 1,539 | |||||||||||
Interest expense | 12,310 | 15,437 | 52,539 | 62,574 | |||||||||||
Other income and expense, net | (1,311 | ) | (1,597 | ) | (5,570 | ) | (6,320 | ) | |||||||
Loss on debt extinguishment | — | — | 453 | — | |||||||||||
Provision for (benefit from) income taxes | 10,455 | (3,273 | ) | 16,564 | 12,604 | ||||||||||
Adjusted EBITDA | $ | 80,266 | $ | 54,061 | $ | 234,331 | $ | 262,271 |
(1) | Represents separation and related costs that were incurred subsequent to the separation on October 1, 2022, including expenses incurred on a transitional basis under a contract shared with Xperi Inc. |
ADEIA INC. RECONCILIATION FOR GUIDANCE ON OPERATING EXPENSES (in millions) (unaudited) | |||||||
Year Ended | |||||||
December 31, 2025 | |||||||
Low | High | ||||||
GAAP operating expenses | $ | 263.0 | $ | 275.0 | |||
Amortization expense | 55.0 | 55.0 | |||||
Stock-based compensation expense | 36.0 | 38.0 | |||||
Separation and related costs (1) | 6.0 | 8.0 | |||||
Total of non-GAAP adjustments | 97.0 | 101.0 | |||||
Non-GAAP operating expenses | $ | 166.0 | $ | 174.0 |
(1) | Represents separation and related costs that were incurred subsequent to the separation on October 1, 2022, including expenses incurred on a transitional basis under a contract shared with Xperi Inc. |
ADEIA INC. RECONCILIATION FOR GUIDANCE ON NET INCOME (in millions) (unaudited) | |||||||
Year Ended | |||||||
December 31, 2025 | |||||||
Low | High | ||||||
GAAP net income | $ | 76.5 | $ | 81.6 | |||
Amortization expense | 55.0 | 55.0 | |||||
Stock-based compensation expense | 36.0 | 38.0 | |||||
Separation and related costs (1) | 6.0 | 8.0 | |||||
Total of non-GAAP operating expenses | 97.0 | 101.0 | |||||
Non-GAAP tax adjustment (2) | (29.5 | ) | (15.1 | ) | |||
Non-GAAP net income | $ | 144.0 | $ | 167.5 |
(1) | Represents separation and related costs that were incurred subsequent to the separation on October 1, 2022, including expenses incurred on a transitional basis under a contract shared with Xperi Inc. |
(2) | The provision for income taxes is adjusted to reflect the net income tax effects of the various non-GAAP pretax adjustments. |
ADEIA INC. RECONCILIATION FOR GUIDANCE ON ADJUSTED EBITDA (in millions) (unaudited) | |||||||
Year Ended | |||||||
December 31, 2025 | |||||||
Low | High | ||||||
GAAP net income | $ | 76.5 | $ | 81.6 | |||
Stock-based compensation expense | 36.0 | 38.0 | |||||
Separation and related costs (1) | 6.0 | 8.0 | |||||
Amortization expense | 55.0 | 55.0 | |||||
Depreciation expense | 2.3 | 2.3 | |||||
Interest expense | 41.0 | 43.0 | |||||
Other income | (4.0 | ) | (4.5 | ) | |||
Income tax expense | 13.5 | 34.9 | |||||
Total of non-GAAP adjustments | 149.8 | 176.7 | |||||
Adjusted EBITDA | $ | 226.3 | $ | 258.3 |
(1) | Represents separation and related costs that were incurred subsequent to the separation on October 1, 2022, including expenses incurred on a transitional basis under a contract shared with Xperi Inc. |
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FAQ
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