Key Financial Data
- Q3 Total revenue: $114 million (+2.1% year-over)
- Licensing and other revenue: $99 million (-8.1%)
- Operating income: $1.8 million (compared to $1.4 million loss)
- Operating margin: 1.5% (compared to -1.2%)
- Net loss: $5.2 million (narrowed 14.2%)
- Net loss margin: -4.6% (compared to -5.5%)
- TiVo One monthly active users: 6.8 million (+40%)
- TiVo One average revenue per user (ARPU): $7.65 (+14% sequentially)
- DTS AutoStage cumulative vehicle shipments: More than 18 million
- Global IPTV subscriber households: 3.42 million
- Cost of advertising and related revenue: $10.3 million (+93.2%)
- Research and development expenses: $23.5 million (-21.5%)
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Media technology company Xperi on Wednesday reported a modest increase in revenue during the third quarter (Q3) of the year as growing advertising activity across its TiVo platform helped offset declines in its traditional licensing business.
Revenue reached $114 million during the three months ending September 30, an increase of 2.1 percent from $111.6 million during the same period last year. The company reported a net loss of $5.2 million, compared with a loss of $6.1 million a year earlier. Its operating income reached $1.8 million, reversing a $1.4 million operating loss during the prior-year quarter.
Xperi’s advertising and related revenue increased to $14.9 million from $3.9 million, a gain of approximately 281 percent. The company said the increase helped double revenue from its Media Platform business. Licensing and other revenue declined 8.1 percent to $99 million from $107.7 million.
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The company attributed its advertising growth partly to an expanding audience for TiVo One, its advertising platform integrated into certain smart televisions and video distribution products. TiVo One finished September with 6.8 million monthly active users, an increase of 40 percent from a year earlier. Average revenue per user reached $7.65, up 14 percent compared to Q2.
Xperi also announced an expanded partnership with MediaMarktSaturn, a European consumer electronics retailer that selected TiVo OS for its private-label PEAQ television brand. The agreement brings TiVo OS to 11 television manufacturer design partnerships. Xperi also expanded its U.S. retail distribution through Element smart televisions.
Xperi reported 3.42 million global IPTV subscriber households at the end of September, supported by agreements with broadband providers in the United States and Canada.
In the automotive market, Xperi said its DTS AutoStage platform had been deployed in more than 18 million vehicles across 13 automotive brands and more than 150 countries. The company expanded its AutoStage Broadcaster Portal to cover 550 U.S. metropolitan areas, up from 300, and signed eight additional agreements allowing broadcasters to generate revenue from platform data.
“As expected, our success in building our TiVo One footprint has begun to drive substantial growth in advertising and related revenue,” Jon Kirchner, Xperi’s CEO, said in a statement. “The selection of TiVo’s Operating System by MediaMarktSaturn…demonstrates the benefit of our independent media platform solution, the strength of our retail media product offerings, and our unique competitive position in the market.”
The company narrowed its full-year revenue forecast to between $450 million and $462 million, compared with its previous range of $440 million to $470 million.
In a separate announcement, Xperi said its Chief Financial Officer Robert Andersen will retire from the company next year as part of a planned transition. Anderson will remain in his current role until a successor is named, the company said.
