While Xperi’s latest financial report shows a reduction in operating losses for 2024 as compared to 2023, the HD Radio developer’s total revenue for the year still falls below the mark.
Xperi Inc. posted an operating loss of $14.3 million in the fourth quarter 2024, but still reported a positive net income of $46.2 million in the quarter due, in part, to the sale of one of its divisions.
The San Jose-Calif.-based company recorded an operating loss of $87.1 million for the full year 2024. That was less than in 2023, when it reported an operating loss of $129.6 million for the year.
Xperi recorded $122.4 million in revenue in Q4 2024, as compared to $137.2 million the same three months the year prior. The HD Radio developer said its yearly revenue for 2024 was $493.7 million, which was down 5% from $521.3 million in 2023.
“Our revenue in 2024 was slightly up year-over-year when adjusting for our divested businesses as we saw growth in IPTV and Connected Car offset by a decline in some of our core legacy solutions due to a challenging market environment,” said Jon Kirchner, chief executive officer of Xperi.
The company noted in its report to the Securities and Exchange Commission (SEC) that the contribution from AutoSense and the related imaging business, which was divested on Jan. 31, 2024, accounted for $14.7 million of revenue in Q4 of 2023. Xperi sold the in-cabin safety business to Tobii AB.
Kirchner in a press statement said that Xperi saw growth in its Connected Car space, which includes DTS AutoStage and HD Radio. DTS AutoStage-equipped vehicles now exceed 10 million cars. The company also signed a third license agreement in 2024 for a DTS AutoStage video service Powered by TiVo with a Japanese customer.
Meanwhile, Xperi says HD Radio is now implemented in more than 110 million vehicles and penetration is approaching 60% of new cars shipped annually throughout North America.
Xperi CFO Robert Anderson said on an earnings call this week that Connected Car revenue was up 29% for the year, when excluding AutoSense, due to several multiyear DTS audio agreements during the year, along with growth in the HD Radio business.
The tech company’s balance sheet shows the company ended the year with $131 million of cash and cash equivalent. Approximately $58 million of that was the result of its sale of Perceive to Amazon in Oct. 2024, according to the earnings report. Xperi officials confirmed they recently completed a financing arrangement with PNC Bank for a $55 million line of credit backed by Xperi accounts’ receivable assets.
Looking ahead to 2025, Kirchner said Xperi is sticking with its strategic initiatives, including “growing our DTS AutoStage footprint.” The company projects more than 13 million DTS AutoStage vehicles by year’s end.
“DTS Auto Stage combines radio, internet metadata and video to enhance the automotive experience while enabling long term monetization through licensing fees, upselling features, advertising and data,” Kirchner said on Wednesday’s earning call.
Xperi said it expects full-year revenue in 2025 in the range of $480 million to $500 million, according to its earnings report.
“As evidenced by our progress during this past year, we believe we are increasingly well positioned to grow our revenue as our footprint in these markets expands over time. Consistent with past communications, our multiyear goal is to drive meaningful revenue growth from over 20 million monetizable endpoints in home and in the car,” Kirchner said.
[Related: “Xperi Asks FCC to Reject Challenge to Asymmetric Sideband Order“]
