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Xperi Inc (XPER)
NYSE:XPER
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Xperi Inc
(NYSE:XPER)
57Neutral
Positive Factors
Cost Management
The expansion in adjusted EBITDA margin from 9.8% to 18.6% reflects a significant reduction in operating expenses, indicating improved cost management.
Financial Performance
Xperi Inc. reported a significant increase in adjusted EBITDA, up 70% year-over-year, showcasing strong financial performance despite a revenue decline.
Monetization Growth
Xperi Inc. had a buildup in active users in the fourth quarter of 2024 that is expected to help fuel monetization revenue growth in 2025.
Negative Factors
Cash Flow Concerns
Xperi projecting negative cash flow in 2024 is likely to put a lid on the stock for the remainder of 2024.
Market Valuation
Shares of Xperi Inc. trade at a lower EV/EBITDA multiple compared to a peer group average, reflecting market skepticism about the company's current valuation.
Revenue Decline
The revenue decline in Xperi's media platform was influenced by the timing of revenue recognition and a shift in customer ad spending, impacting financial results.
Xperi Inc (XPER) vs. S&P 500 (SPY)
Market Cap
$351.40M
Dividend YieldN/A
Average Volume (3M)382.62K
Price to Earnings (P/E)―
Beta (1Y)1.33
Revenue Growth-5.30%
EPS Growth90.66%
CountryUS
Employees1,680
SectorTechnology
Sector Strength43
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.32
Shares Outstanding45,518,257
10 Day Avg. Volume305,336
30 Day Avg. Volume382,615
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.72
Price to Cash Flow (P/CF)72.20
P/FCF Ratio48.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$18.25Price Target Upside136.40% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Xperi Inc Business Overview & Revenue Model
Company DescriptionXperi Inc (XPER) is a technology company that operates in the semiconductor and intellectual property sectors. It is known for its innovations in digital media, automotive, and mobile computing markets. Xperi's core products and services include advanced imaging solutions, audio technologies, and semiconductor packaging and interconnect technologies. The company is committed to enhancing the digital entertainment experience and improving consumer electronics through its diverse technology portfolio.
How the Company Makes MoneyXperi Inc generates revenue primarily through licensing its technology and intellectual property to various industries. The company's key revenue streams include licensing fees from its patented technologies used in semiconductor manufacturing, as well as audio and imaging solutions integrated into consumer electronics and automotive infotainment systems. Significant partnerships with leading electronics manufacturers and automotive companies contribute to Xperi's earnings. Additionally, the company benefits from ongoing innovation and development of new technologies, which further bolsters its licensing income and market reach.
Xperi Inc Financial Statement Overview
Summary
Xperi Inc has demonstrated a commendable financial recovery in 2024, with profitability metrics showing improvement and cash flow management being robust. The income statement reflects a significant turnaround with a net profit margin of 17.18%, although revenue declined by 3.28%. The balance sheet's low debt-to-equity ratio of 0.08 indicates reduced financial risk, but a decrease in total assets may impact growth. Cash flow improvements, including a positive free cash flow of $210.64 million, enhance financial stability.Income Statement
Xperi Inc showed significant improvement in its financial performance in 2024, reversing a net loss to a net profit, resulting in a net profit margin of 17.18%. The gross profit margin is strong at 100%, indicating effective cost management. However, the revenue declined by 3.28% compared to the previous year, suggesting potential challenges in sales growth. EBIT and EBITDA margins are both 34.20%, reflecting improved operational efficiency.65
Positive
Balance Sheet
The company's debt-to-equity ratio improved to 0.08, indicating lower leverage and reduced financial risk. The return on equity is 16.30%, showing a strong contribution to shareholder value. The equity ratio is 36.11%, suggesting a solid capital structure with moderate reliance on debt. However, the total assets have decreased, which may impact future growth potential.60
Neutral
Cash Flow
Xperi Inc experienced a significant turnaround in free cash flow, with robust growth, achieving a positive free cash flow of $210.64 million. The operating cash flow to net income ratio is 3.29, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 3.26, reflecting excellent cash flow management. These improvements enhance the company's financial flexibility and stability.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 493.69M | 388.79M | 502.26M | 486.48M | 376.10M | Gross Profit |
| 379.93M | 270.16M | 379.31M | 360.86M | 298.31M | EBIT |
| -87.08M | -129.64M | 475.13M | -162.48M | -152.56M | EBITDA |
| 70.60M | -53.53M | -54.44M | -33.93M | -37.69M | Net Income Common Stockholders |
| -14.01M | -136.61M | -761.21M | -181.86M | -141.29M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 130.56M | 142.09M | 160.13M | 120.69M | 257.13M | Total Assets |
| 667.76M | 673.63M | 736.91M | 1.23B | 2.70B | Total Debt |
| 85.28M | 95.36M | 109.86M | 63.74M | 857.24M | Net Debt |
| -45.28M | -46.73M | -50.27M | -56.95M | 687.05M | Total Liabilities |
| 238.68M | 286.50M | 287.93M | 212.75M | 1.25B | Stockholders Equity |
| 396.57M | 404.23M | 463.42M | 1.03B | 1.46B |
| Cash Flow | Free Cash Flow | |||
| -72.29M | -12.87M | -42.82M | -32.53M | -30.81M | Operating Cash Flow |
| -55.34M | 62.00K | -28.45M | -23.45M | -23.78M | Investing Cash Flow |
| 50.82M | -12.93M | -64.85M | -21.48M | 26.52M | Financing Cash Flow |
| -19.35M | 7.05M | 135.75M | 83.33M | 34.24M |
Xperi Inc Technical Analysis
Negative
7.72
Price Trends
8.53
Negative
9.02
Negative
8.72
Negative
Market Momentum
-0.18
Negative
39.22
Neutral
18.46
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XPER, the sentiment is Negative. The current price of 7.72 is below the 20-day moving average (MA) of 7.95, below the 50-day MA of 8.53, and below the 200-day MA of 8.72, indicating a bearish trend. The MACD of -0.18 indicates Negative momentum. The RSI at 39.22 is Neutral, neither overbought nor oversold. The STOCH value of 18.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XPER.
Xperi Inc Risk Analysis
Xperi Inc disclosed 62 risk factors in its most recent earnings report. Xperi Inc reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Xperi Inc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $100.02B | 64.31 | 4.43% | 1.82% | -19.28% | -44.00% | |
68 Neutral | $26.04B | 85.36 | 4.71% | 3.75% | -44.31% | -86.74% | |
67 Neutral | $17.15B | 11.06 | 18.97% | ― | -14.19% | -27.42% | |
57 Neutral | $20.89B | 10.40 | -13.99% | 2.52% | 4.47% | -23.34% | |
57 Neutral | $351.40M | ― | -3.36% | ― | -5.30% | 90.66% | |
55 Neutral | $6.76B | 255.32 | 0.77% | ― | 9.51% | ― | |
53 Neutral | $3.66B | ― | -16.69% | ― | -25.29% | -449.44% |
* Technology Sector Average
Performance Comparison
XPER
Xperi Inc
7.75
-3.59
-31.66%
ADI
Analog Devices
199.18
7.48
3.90%
MCHP
Microchip
48.50
-37.35
-43.51%
ON
ON Semiconductor
40.20
-30.28
-42.96%
SLAB
Silicon Laboratories
114.21
-21.12
-15.61%
QRVO
Qorvo
72.23
-41.57
-36.53%
Xperi Inc Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -9.81% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balanced view with significant growth in key business areas such as Connected Car and TiVo OS deployment. The company's business transformation efforts resulted in improved profitability and operational success. However, challenges remain in media platform and PayTV revenue segments, which saw declines. With successful strategic initiatives and partnerships, the company is well-positioned for future growth.Highlights
Revenue Growth in Core Areas
Revenue for the fourth quarter was $122 million, up 2% from the prior year after adjusting for divestitures. Adjusted EBITDA was $23 million for the quarter, representing 19% of revenue compared to $13 million in the prior year quarter.
Successful Business Transformation
The business transformation efforts led to an adjusted EBITDA margin of 15% for the full year, more than doubling year over year.
Connected Car Segment Expansion
DTS AutoStage now has a footprint of over 10 million vehicles, exceeding the original goal of 7 million, with significant growth anticipated in 2025.
TiVo OS Deployment Success
The TiVo OS exceeded its goal of over 2 million activated devices across Europe, with U.S. market expansion underway.
New Partnerships and Product Launches
Eight TV partners were secured, exceeding the year's goal, with several partners being top 10 global TV manufacturers.
Lowlights
Media Platform Revenue Decline
Media Platform was down 15% due to a decline in a large linear ad campaign buy and minimum guarantee deals from the prior year.
PayTV Revenue Challenges
PayTV revenue showed a decline due to timing issues and the impact of multiyear agreements that were recognized upfront in the prior year.
Consumer Electronics Decline
Consumer Electronics revenue was down 27% excluding divestitures, impacted by prior year revenue recognition of multiyear renewals.
Company Guidance
During Xperi's fourth quarter and full-year 2024 earnings call, the company provided guidance for fiscal 2025, highlighting anticipated revenue growth, profitability, and strategic goals. Revenue for 2025 is expected to be between $480 million and $500 million, with a focus on expanding the TiVo OS platform and achieving meaningful monetization through the TiVo One platform, particularly in the media platform sector. The company aims to exit the year with over 5 million active TiVo One devices and an average ARPU above $10. Adjusted EBITDA margin is projected to be between 16% and 18%, driven by continued business transformation efforts. Xperi also targets growth in its connected car and IPTV segments, expecting to increase the DTS AutoStage vehicle footprint to over 13 million vehicles and IPTV subscriber households to 3 million by year-end. The guidance reflects a strategic emphasis on scaling operations to drive significant revenue growth in 2026 and beyond.Xperi Inc Corporate Events
Executive/Board Changes
Xperi Inc. Announces New Executive Bonus Plan
Neutral
Jan 24, 2025
On January 21, 2025, Xperi Inc.’s Board of Directors’ Compensation Committee approved a new Annual Bonus Plan, which awards cash incentives to executive officers based on pre-set performance criteria. The 2025 target bonuses for executives Jon Kirchner, Robert Andersen, and Geir Skaaden are tied to the company’s financial performance, with Skaaden’s bonus also linked to operational objectives. The target bonus amounts remain unchanged, and the awards are subject to the company’s clawback policy and relevant regulatory requirements.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.