Xperi Stock Price, News & Analysis

Xperi Inc. (NYSE: XPER) announced its Q2 2024 financial results, showing improved profitability despite a slight revenue decline. Key highlights include:

- Revenue: $119.6M (vs $126.9M in Q2 2023)
- GAAP net loss: $30.3M (vs $38.4M in Q2 2023)
- Non-GAAP net income: $5.6M (vs $3.7M loss in Q2 2023)
- Adjusted EBITDA: $14.6M (vs $5.2M in Q2 2023)

The company made significant progress in its TiVo OS and video-over-broadband businesses, signing a seventh TV partner and expanding TiVo Broadband with three new operators. Xperi maintains its 2024 outlook with revenue projected between $500M to $530M and an Adjusted EBITDA margin of 12% to 14%.

Xperi's DTS subsidiary has released its Top Most Listened-To Songs In-Vehicle for Q2 2024, based on data from the DTS AutoStage Broadcaster Portal. Key highlights include:

1. Sabrina Carpenter rose to prominence across U.S., U.K., and global charts.

2. Teddy Swims and Benson Boone replaced Q1 chart-toppers.

3. Doja Cat maintained her position from Q1, while Ariana Grande entered the Top 5 in the U.S. and globally.

4. Beyoncé's "Texas Hold 'Em" hit #3 globally.

5. The data reflects actual listening engagement in millions of vehicles equipped with DTS AutoStage.

Xperi (NYSE: XPER), a leading entertainment technology company, is set to release its second-quarter 2024 financial results on August 5, 2024. The results will be announced after the market closes, followed by an earnings conference call at 2 p.m. PST (5 p.m. EST). U.S. participants can join the call by dialing 1-888-596-4144, while international callers can use +1 646-968-2525 with the conference ID 5483252. The call will also be webcast live, providing an accessible option for stakeholders to tune in. Investors are encouraged to log in 15 minutes early to ensure smooth access.

DTS has released its 'Connected Car Entertainment Trends' report highlighting the evolving landscape of in-vehicle entertainment. Key findings indicate audio remains dominant, with nearly 70% of consumers tuning into AM/FM radio, 53% using music streaming services, and 30% opting for satellite radio.

Video consumption in vehicles grew by 25%, with millennials and Gen Z showing increasing interest in gaming, particularly casual games. The report reveals that 46% of millennials and 38% of Gen Z play games while in the car.

In-vehicle entertainment is a significant factor in car purchase decisions, with over 50% of consumers willing to pay more for enhanced entertainment systems. The study also found that 58% of participants prefer rear cabin screens, while 54% favor front cabin screens, and 52% of respondents are interested in paying extra for better in-car entertainment.

Rubric Capital Management, owning 9% of Xperi's common stock, issued an open letter addressing the preliminary results of Xperi's 2024 Annual Meeting. Disappointed by the results, Rubric highlighted that less than 50% of shares voted for the contested nominees, indicating stockholder dissatisfaction.

Rubric's engagement led to several commitments from Xperi's Board, including initiating a strategic alternatives process for Perceive, expanding the Board with new directors in 2024, and eliminating supermajority voting requirements.

Additionally, Xperi promised to achieve $500-$530 million in revenue and 12-14% EBITDA margins in 2024, reaffirm 3-5 year revenue CAGR of 12-15%, and execute a stock repurchase plan. Rubric emphasized the necessity for Xperi to follow through on these commitments.

Institutional Shareholder Services warned that failure to meet these promises could lead to increased activist interventions in the next annual meeting.

Xperi announced preliminary results of its 2024 Annual Meeting of Stockholders, showing that all five incumbent directors have been re-elected: Darcy Antonellis, Laura J. Durr, David C. Habiger, Jon E. Kirchner, and Christopher Seams. The company emphasized the significance of stockholder engagement and commitment to delivering sustainable growth. All other proposals at the meeting were also approved, with final results pending certification. Xperi expressed confidence in its strategy to enhance long-term shareholder value. Legal and financial advisories were provided by Latham & Watkins LLP and Spotlight Advisors , respectively.

TiVo, a subsidiary of Xperi, has launched the TiVo One cross-screen ad platform designed to integrate ad inventory across home and car entertainment systems. This platform aims to optimize branded campaigns with advanced targeting and measurement capabilities. The launch coincides with an expansion of TiVo-powered smart TVs by brands such as Bush, Telefunken, JVC, and Panasonic across Europe, in time for summer sports events. TiVo One's features include enhanced targeting based on user behaviors, advanced measurement tools, and a 'Homepage Ad' unit for targeted, data-driven advertising. This development aligns with Xperi's strategy to enhance audience engagement and monetization.

Xperi's Board of Directors issued a letter urging shareholders to vote for all five incumbent directors at the upcoming Annual Meeting on May 24, 2024. The Board emphasized the company's progress since becoming an independent entity in October 2022, highlighting a revenue growth target of 12-15% CAGR and adjusted EBITDA margins of 25-30% within three to five years from September 2022. Xperi completed the divestiture of its AutoSense business in January 2024 and is considering strategic alternatives for its AI business, Perceive. Proxy advisory firms ISS and Glass Lewis have recommended supporting the incumbent Board members. The Board also plans to expand its membership and align executive compensation with shareholder interests.

Rubric Capital Management, owning 9.0% of Xperi's shares, urges stockholders to vote against incumbent directors David Habiger and Darcy Antonellis at the May 24, 2024, Annual Meeting. Rubric, citing poor stock performance and mismanagement, proposes new board members, Thomas A. Lacey and Deborah S. Conrad, to drive value creation. Rubric's plan includes restoring accountability, evaluating projects, cutting costs, and aligning executive pay with performance. They claim this could increase Xperi's share price by $5.25 to $19.01. Rubric emphasizes the need for new leadership to avoid further value destruction.