Xperi Inc. Q1 FY2026 earnings call

• Overall first quarter results show success in delivering on financial objectives and monetization strategy. - TiVo One footprint grew to over 5.5 million monthly active users and auto stage footprint to over 16 million vehicles globally. - Media platform revenue grew 45% year over year due to growth in advertising monetization. - IPTV subscriber base grew 19% year-over-year. - Renewed DTS decoder and post-processing contracts and entered into multi-year partnership with Tencent Music. - Launched AutoStage Broadcast Portal and signed multi-year HD radio renewal agreements

Media Platform: Recorded $12 million revenue in the quarter, up 45% year-over-year, driven by growth in advertising monetization. TiVo One monthly active users grew to 5.5 million, with average revenue per user $7.10. Connected Car: Auto stage footprint expanded over 45% year-over-year to over 16 million vehicles across 13 automotive brands. Launched AutoStage Broadcast Portal and signed multi-year HD radio renewal agreements. Pay TV: IPTV subscriber base increased 19% year-over-year to 3.28 million subscriber households at quarter end. Signed agreements for new service offerings and expanded set-top box partnership. Consumer Electronics: Recorded $18 million of revenue, a decrease of 19%, due to non-recurring revenue and memory-related challenges in certain end product categories. Renewed DTS decoder and post-processing contracts and entered into multi-year partnership with Tencent Music

• Reaffirmed the guidance given for the full year. - Revenue range of $440 to $470 million. - Now expect revenue for the first half and second half of the year to be relatively even, as opposed to being slightly more back half-weighted as previously projected

Q: John, you called out in the PR that you guys are beginning to see an inflection point in monetization strategy. Can you sort of talk about what the drivers are that are catalyzing this inflection?

A: First, worked for last two years to build broad enough footprint to have scale to attract advertisers and partners. Second, built out and connected Tivo one ad platform. Third, making bigger presence known and uniqueness of platform driving advertiser interest.

Q: When we look at your operating expenses in Q1, does that sort of represent all the cost-cutting initiatives you put in place, just kind of trying to determine if this is the right cost base to build off of for the remainder of the year as we sort of move forward?

A: Most of our work on the cost-cutting is complete at this point, and Q1 is a good representation of the run rate for the remainder of the year.

Q: Can you touch on how unit availability is today in the U.S. market and how kind of that user growth is shaping up between U.S. and Europe?

A: Majority of Tivo one connected devices are in Europe, expect more TV volume in US later this year, balance roughly 60% Europe, 40% US.

Q: Any thoughts on the capital structure, particularly given the kind of the shift in, you know, pick up in the media platform business and the collection of the perceived payment. Does that change anything about, you know, your position towards debt on the balance sheet or, you know, how do you feel today?

A: Continue to operate in uncertain environment, nothing has fundamentally changed with capital allocation policy. Carry small amount of debt, want to fund growth initiatives first priority and look to return capital through buybacks as appropriate.

Q: Could you just talk about, you know, you're making good advancement here on how many people are using your auto stage, but why wouldn't that, you know, translate into higher media platform revenue for you right now?

A: Ultimately will lead to more data and advertising-based monetization, but it's a matter of timing. First license data licenses happening in broadcaster space likely this quarter