Xperi Holding Corporation (NASDAQ:XPER) Q2 2023 Earnings Call Transcript

There certainly are also some Tier 1s and Tier 2s that are working on potentially building solutions. But one of the unique things that we bring to the game is we bring decades of detailed imaging expertise through all the work that we’ve done around facial recognition and body posture that partially comes out of our substantial mobile imaging work for many, many years. And so we have a bedrock of both data as well as expertise in that space. And I think we’ve been working for a couple of years now to apply it to the car. And I think it is showing very well as we’re in the competitive pitching process.

Hamed Khorsand: And then looking out into the second half, would the revenue breakdown looks almost similar to what the first half looked like? Are you expecting some sort of pickup in 1 of the 4 segments?

Robert Andersen: Well, I think when we look — this is Robert, when we look at the revenue breakdown for the remainder of the year, we expect that the profile or rather the timing of the revenue in the year is actually pretty similar to last year. So if one was going to kind of forecast out the revenue for Q3 and Q4 in aggregate, I think it follows the pattern from Q3 and Q4 as a percentage basis. I think if you were raising last year by about 5% or 6% you’d get there. And in terms of that mix, I think that’s what you were getting at, we’ve seen kind of continued progress along what we expected with strength in the Automotive, Connected car business as well as Media Platform and even for the remainder of the year probably contribution from Consumer Electronics.

Hamed Khorsand: And then one final question is regarding Sharp, is that purely for Europe? Or will that broaden out to other regions?

Jon Kirchner: It starts initially in Europe, and I think we’ll have more to say about broadening that relationship over time.

Operator: Your next question comes from Matthew Galinko from the Maxim Group.

Matthew Galinko: Can we — I think the idea of North American entry for TiVo OS maybe a little unexpected relative to maybe what you’ve signaled in the past. So I guess I’m curious what’s changed in either the market or your positioning that the U.S. has become — or North America has become more addressable than other regions?

Jon Kirchner: Matt, I don’t know that it necessarily has been any recent event. We’ve been in pipeline discussions for some time kind of globally with different partners. I think there is, however, a wide and growing recognition that for the brands who don’t have the resources, perhaps to build their own, and we believe it’s a substantial amount of TVs that exist in the North American and European markets that an independent media platform becomes really important and one that can provide the benefits that TiVo OS offers, and that is the brand’s ability to own their customer to share the data to have a content-neutral platform that really is all about driving the best user experience and therefore, monetization and then ultimately participating in the back-end economics of the long tail of the TV.

And I think that value proposition is something that has a lot of resonance. And I think some have been sitting on the sidelines kind of watching us further develop. But I think it’s very clear now that we’re coming to market with multiple players. And as we have more success, I think that — and gives ever more confidence. And I think the quality of the solution that we’re showing, I think, has also been instrumental in getting people comfortable that we’ve got a solution that will make it easy to find, watch and enjoy what consumers want and the higher the engagement with content, the higher the potential revenue monetization and sharing in partnership with these TV brands. So in short, I think it’s what we expected. I think in some ways, maybe it’s moving even more quickly than we expected, but we still have a lot of work to do, but we are very, very excited about the trajectory and where it will end up here in the next couple of years, completely consistent with what we more or less outlined last September in our Investor Day and likely ends up better sooner.