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

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Matthew Galinko: And then can you maybe touch on or expand on what a strategic partner might do for you and Perceive in terms of accelerating towards the LLM opportunity? Or yes, just can you cover that in a little bit more detail?

Jon Kirchner: Sure. So as you look to the LLM market and the wide-scale deployment of these larger AI solutions. I think it’s very clear, just given the size and scale of that opportunity that there’s going to be a need for additional resources capabilities, perhaps distribution scale, financial resources and whatnot. If you’re really going to tap in to maximizing the value of the technology. And I think it’s — that recognition that I think has made the conversation interesting with strategic partners. And as we’re engaged in various conversations, I think there’s a tremendous amount of interest in the fundamental challenge, which is if you want to bring the goodness to consumers and mass, how do you deal with the inherent scalability challenges of these massively large models.

And I think Perceive is very much focused on advanced compression technology that can address that challenge and ultimately bring ever higher performance and much greater power efficiency to bear. And I think that is going to be essential to folks as one looks to scale this. So in short, I think it’s a recognition that the market opportunity is vast. And we, as a technology player with part of the solution, likely will be best off as we work with a strategic partner or partners to bring that technology to market.

Operator: [Operator Instructions]. Your next question comes from Nick Zangler with Stephens.

Nicholas Zangler: Is there any way to — well, congrats on the new relationships here, is there any way to size up, I guess, the 3 TV relationships that you have now just in totality or maybe relative to each other, or maybe said another way, did these relationships that you’ve cemented thus far gets you to that $7 million active account number that you have targeted for 2025? Or do you still feel that you might need a few more wins?

Jon Kirchner: No. I think with what we have, I think what we laid out is certainly achievable. And I think we’ll have more to say on this topic, Nick, as we get a couple of quarters down the way.

Nicholas Zangler: And then I did want to ask about the — and sorry if you already discussed it, but the commentary within Media Platform that Sony is going to deploy a content browser, if we’re talking Sony TV, my understanding was that the Google TV OS is exclusively utilized on Sony. So I’m just curious if you could flesh out what exactly is happening here? You mentioned another pathway to monetization. So just if you don’t mind elaborating on that new relationship as well.

Jon Kirchner: Sure. So Vewd as you’ll recall, we acquired them last year, has a web content browser that is been deployed on various systems, including Android TVs. So it’s the use of that in connection with their TVs. And I think it just is one more example of, let’s call it, some of the value that we were able to gain through the Vewd acquisition.

Operator: This concludes the Q&A session. I’ll now turn the call back over to the company for closing remarks.

Jon Kirchner: Thanks, operator, and thank you, everyone, for joining today’s call. We’re excited about our continued strategic momentum and our solid operating performance. I’d like to thank our employees, customers and partners for helping us continue to achieve our objectives. And we look forward to reviewing our Q3 results with you in early November. This concludes today’s call.

Operator: Ladies and gentlemen, thank you all for joining. You may now disconnect.

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