InterDigital Raises First Quarter Outlook
InterDigital (IDCC) has announced a significant business development, signing a new multi-year, worldwide, non-exclusive, royalty-bearing license agreement with a major Chinese smartphone vendor. This strategic move has led the company to raise its first quarter 2025 outlook.
The company now has licensing agreements with seven of the ten largest smartphone vendors, covering approximately 80% of the global smartphone market. As a result of this new agreement, InterDigital has increased its annualized recurring revenue (ARR) outlook by $40 million, bringing the total to approximately $500 million for the first quarter of 2025.
InterDigital (IDCC) ha annunciato un'importante evoluzione aziendale, firmando un nuovo accordo di licenza non esclusivo, a pagamento di royalty, della durata di più anni con un importante fornitore cinese di smartphone. Questa mossa strategica ha portato l'azienda ad aumentare le previsioni per il primo trimestre del 2025.
L'azienda ha ora accordi di licenza con sette dei dieci maggiori fornitori di smartphone, coprendo circa l'80% del mercato globale degli smartphone. A seguito di questo nuovo accordo, InterDigital ha aumentato le sue previsioni di entrate ricorrenti annualizzate (ARR) di 40 milioni di dollari, portando il totale a circa 500 milioni di dollari per il primo trimestre del 2025.
InterDigital (IDCC) ha anunciado un importante desarrollo empresarial, firmando un nuevo acuerdo de licencia no exclusivo, a nivel mundial y con regalías, con un importante proveedor chino de smartphones. Este movimiento estratégico ha llevado a la empresa a elevar sus perspectivas para el primer trimestre de 2025.
La empresa ahora tiene acuerdos de licencia con siete de los diez mayores proveedores de smartphones, cubriendo aproximadamente el 80% del mercado global de smartphones. Como resultado de este nuevo acuerdo, InterDigital ha aumentado su perspectiva de ingresos recurrentes anualizados (ARR) en 40 millones de dólares, llevando el total a aproximadamente 500 millones de dólares para el primer trimestre de 2025.
InterDigital (IDCC)는 주요 중국 스마트폰 공급업체와 함께 다년간의 비독점적 로열티 라이선스 계약을 체결하며 중요한 사업 개발을 발표했습니다. 이 전략적 움직임은 회사가 2025년 1분기 전망을 상향 조정하게 만들었습니다.
회사는 현재 세계 10대 스마트폰 공급업체 중 7개와 라이선스 계약을 체결하고 있으며, 이는 약 전 세계 스마트폰 시장의 80%를 차지합니다. 이 새로운 계약의 결과로 InterDigital은 연간 반복 수익(ARR) 전망을 4천만 달러 증가시켰습니다, 총액은 2025년 1분기에 약 5억 달러에 이를 것으로 예상됩니다.
InterDigital (IDCC) a annoncé un développement commercial significatif, signant un nouvel accord de licence mondial, non exclusif et à redevances avec un important fournisseur chinois de smartphones. Ce mouvement stratégique a conduit l'entreprise à relever ses prévisions pour le premier trimestre 2025.
L'entreprise a désormais des accords de licence avec sept des dix plus grands fournisseurs de smartphones, couvrant environ 80% du marché mondial des smartphones. En conséquence de ce nouvel accord, InterDigital a augmenté ses prévisions de revenus récurrents annualisés (ARR) de 40 millions de dollars, portant le total à environ 500 millions de dollars pour le premier trimestre 2025.
InterDigital (IDCC) hat eine bedeutende Geschäftsentwicklung bekannt gegeben und einen neuen mehrjährigen, weltweiten, nicht exklusiven Lizenzvertrag mit einem großen chinesischen Smartphone-Anbieter unterzeichnet. Dieser strategische Schritt hat das Unternehmen dazu veranlasst, seine Prognose für das erste Quartal 2025 zu erhöhen.
Das Unternehmen hat jetzt Lizenzvereinbarungen mit sieben der zehn größten Smartphone-Anbieter, die etwa 80% des globalen Smartphone-Marktes abdecken. Infolge dieses neuen Vertrags hat InterDigital seine Jahresprognose für wiederkehrende Einnahmen (ARR) um 40 Millionen Dollar erhöht, was den Gesamtbetrag für das erste Quartal 2025 auf etwa 500 Millionen Dollar anhebt.
- New licensing agreement with major Chinese smartphone vendor
- ARR increase of $40M to $500M in Q1 2025
- Coverage of 80% of global smartphone market
- 7 of 10 largest smartphone vendors now licensed
- None.
New Smartphone License Agreement Drives Increased Outlook for First Quarter
WILMINGTON, Del., March 06, 2025 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq: IDCC), a mobile, video, and AI technology research and development company, today announced that that it has signed a new multi-year, worldwide, non-exclusive, royalty bearing license agreement with a major Chinese smartphone vendor and has raised its outlook for first quarter 2025.
“We continue to execute according to our growth strategy and added a major Chinese smartphone vendor as a new customer. We now have seven of the ten largest smartphone vendors and almost
Near-Term Outlook
The table below presents the company's current and prior outlook for first quarter 2025. The outlook covers existing licenses signed as of the time of this release and does not include any new agreements or arbitration results that we may sign or receive over the balance of the first quarter.
| First Quarter 2025 | |||
| (in millions, except per share data) | Current | Prior | |
| Revenue | |||
| Adjusted EBITDA3 | |||
| Diluted EPS2 | |||
| Non-GAAP EPS4 | |||
About InterDigital®
InterDigital is a global research and development company focused primarily on wireless, video, artificial intelligence (“AI”), and related technologies. We design and develop foundational technologies that enable connected, immersive experiences in a broad range of communications and entertainment products and services. We license our innovations worldwide to companies providing such products and services, including makers of wireless communications devices, consumer electronics, IoT devices, cars and other motor vehicles, and providers of cloud-based services such as video streaming. As a leader in wireless technology, our engineers have designed and developed a wide range of innovations that are used in wireless products and networks, from the earliest digital cellular systems to 5G and today’s most advanced Wi-Fi technologies. We are also a leader in video processing and video encoding/decoding technology, with a significant AI research effort that intersects with both wireless and video technologies. Founded in 1972, InterDigital is listed on Nasdaq.
InterDigital is a registered trademark of InterDigital, Inc.
For more information, visit: www.interdigital.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include information regarding our current beliefs, plans and expectations. Words such as “believe,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “forecast,” “goal,” “could,” “would,” “should,” “if,” “may,” “might,” “future,” “target,” “trend,” “seek to,” “will continue,” “predict,” “likely,” “in the event,” and variations of any such words or similar expressions are intended to identify such forward-looking statements.
Forward-looking statements are made on the basis of management’s current views and assumptions and are not guarantees of future performance. Forward-looking statements are inherently subject to risks and uncertainties that could cause actual results, and actual events that occur, to differ materially from results contemplated by the forward-looking statements. These risks and uncertainties include, but are not limited to: (i) unanticipated delays, difficulties or accelerations in the execution of patent license agreements on acceptable terms or at all; (ii) our ability to expand our revenue opportunities by entering into licensing arrangements with video streaming and other cloud-based service providers; (iii) the resolution of current legal proceedings, including any awards or judgments relating to such proceedings, and changes in the schedules or costs associated therewith; (iv) our ability to identify and acquire technology and patent portfolios that align with our roadmap; (v) our ability to commercialize our technologies; (vi) the failure of the markets for our current or new technologies to materialize to the extent or at the rate that we expect; (vii) our continued ability to develop new technologies and secure new patents, including the risk of unexpected delays or difficulties related to the development of our technologies; (viii) our continued leadership within standards and industry groups and our ability to ensure our inventions become standardized; (ix) risks associated with our capital allocation strategies, including risks associated with our planned dividend payments and share repurchases; (x) changes in our interpretations of, and assumptions and calculations with respect to the impact on us of, the 2017 Tax Cuts and Jobs Act and other U.S. and non-U.S. tax laws; (xi) the timing and impact of potential regulatory, administrative and legislative matters; (xii) U.S./China trade and/or national security tensions; (xiii) changes or inaccuracies in market projections; (xiv) our ability to retain and hire key personnel; (xv) our ability to enter into sales and/or licensing partnering arrangements for certain of our patent assets; (xvi) the potential effects that macroeconomic uncertainty could have on our financial position, results of operations and cash flows; (xvii) operational risks, including cybersecurity events, external hazards, human failures or other difficulties with our information technology systems that could disrupt our business or result in the loss of critical and confidential information and/or increased costs; (xviii) impacts from acts of terrorism, war or political or civil unrest, or any responses thereto, in the United States or elsewhere; (xix) changes in our business strategy; and (xx) risks related to any new accounting standards or our assumptions and application of relevant accounting standards, including with respect to revenue recognition. We undertake no duty to revise or update publicly any forward-looking statement for any reason, except as otherwise required by law.
Footnotes
1 Annualized recurring revenue (ARR) is a supplemental non-GAAP financial measure that InterDigital believes provides investors with important insight into the company's ongoing business performance. InterDigital defines ARR as three months ended recurring revenue multiplied by four to annualize to a full four quarters. This non-GAAP financial measure used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.
2 Throughout this press release, net income and diluted earnings per share (“EPS”) are attributable to InterDigital, Inc. (e.g., after adjustments for non-controlling interests), unless otherwise stated. Net income margin is net income attributable to InterDigital, Inc. over total revenues.
3 Adjusted EBITDA and Adjusted EBITDA margin are supplemental non-GAAP financial measures that InterDigital believes provide investors with important insight into the company's ongoing business performance. InterDigital defines Adjusted EBITDA as net income attributable to InterDigital Inc. plus net loss attributable to non-controlling interest, income tax (provision) benefit, other income (expense) & interest expense, depreciation and amortization, share-based compensation, and other items. Other items include restructuring costs, impairment charges and other non-recurring items. Adjusted EBITDA margin is Adjusted EBITDA over total revenues. These non-GAAP financial measures used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. The presentation of these financial measures, which are not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. A reconciliation of Adjusted EBITDA to the most directly comparable GAAP financial measure is provided below.
4 Non-GAAP net income, Non-GAAP EPS, and Non-GAAP weighted-average diluted shares are supplemental non-GAAP financial measures that InterDigital believes provides investors with important insight into the company's ongoing business performance. InterDigital defines Non-GAAP net income as net income attributable to InterDigital, Inc. plus share-based compensation, acquisition related amortization, depreciation and amortization, restructuring costs, impairment charges and one-time adjustments, losses on extinguishments of long-term debt, the related income tax effect of the preceding items, and adjustments to income taxes. Non-GAAP EPS is defined as Non-GAAP net income divided by Non-GAAP weighted average diluted shares, which adjusts the weighted average number of common shares outstanding for the dilutive effect of the company's convertible notes, offset by our hedging arrangements. InterDigital’s computation of these non-GAAP financial measures might not be comparable to similarly named measures reported by other companies. The presentation of these financial measures, which are not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. A reconciliation of each of these metrics to its most directly comparable GAAP financial measure is provided below.
RECONCILIATION OF NON-GAAP MEASURES
The following tables present a reconciliation between GAAP and non-GAAP versions of the estimated financial measures for the first quarter included in this release:
| First Quarter Outlook | |||
| (in millions) | |||
| Current | Prior | ||
| Net income attributable to InterDigital, Inc. | |||
| Income tax provision | 20 | 5 | |
| Other income, net & interest expense | — | — | |
| Depreciation and amortization | 18 | 18 | |
| Share-based compensation | 11 | 11 | |
| Other items | — | — | |
| Adjusted EBITDA3 | |||
| First Quarter Outlook | |||
| (in millions, except for per share data) | |||
| Current | Prior | ||
| Net income attributable to InterDigital, Inc. | |||
| Share-based compensation | 11 | 11 | |
| Acquisition related amortization | 9 | 9 | |
| Other operating items | — | — | |
| Other non-operating items | — | — | |
| Related income tax effect of above items | (4) | (4) | |
| Adjustments to income taxes | — | — | |
| Non-GAAP net income4 | |||
| Weighted average dilutive shares - GAAP | 33.8 | 33.0 | |
| Less: Dilutive impact of the Convertible Notes | 3.8 | 3.5 | |
| Weighted average dilutive shares - Non-GAAP4 | 30.0 | 29.5 | |
| Diluted EPS2 | |||
| Non-GAAP EPS4 | |||
| CONTACT: | InterDigital, Inc. |
| investor.relations@interdigital.com | |
| +1 (302) 300-1857 |
FAQ
How much did InterDigital (IDCC) increase its ARR outlook for Q1 2025?
What percentage of the global smartphone market does InterDigital's (IDCC) licensing agreements now cover?
What type of agreement did InterDigital (IDCC) sign with the Chinese smartphone vendor?
How many of the top 10 smartphone vendors are now licensed with InterDigital (IDCC)?
