DLB - Earnings call transcript Q1 2025 | Dolby Laboratories, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Dolby Laboratories Conference Call discussing First Quarter Fiscal Year 2025 results. [Operator Instructions] As a reminder, this call is being recorded, Wednesday, January 29, 2025. I would now like to turn the conference over to Mr. Peter Goldmacher, Vice President and Investor Relations. Peter, please go ahead.

Peter Goldmacher

good and operator, you, afternoon. Thank Laboratories Welcome call. XXXX conference quarter to Dolby earnings first

Joining Laboratories Yeaman, Park, Kevin me are today Dolby CFO. Dolby CEO; Laboratories Robert and

Form of and section As Factors in to we and our statements, found and as information underlying that include Xnd discussion forward-looking quarterly statements and assumes uncertainties assumptions discussion call a are not that These A future release fiscal subject on quarter outlook our statements today and our XXXX forward-looking year does full and section any issued outlook. these well reminder, new today's recently this risks including made to additional will during rates obligation things, supply Risk captioned uncertainties can results of or statements that the of and on made among intend inflation other the press chain earnings spending differ risks statements events, today, be macroeconomic result from most the no in materially the to of update as geopolitical events. a cause forward-looking our XX-Q. Dolby actual impact under consumer business. changes as the issues, including, report instability in may

like GAAP financial Investor Relations non-GAAP section discuss measures. During we turn Analyst the on release Interactive call to today's I'd Center the Kevin. earnings call, will and of measures in press website. With A and reconciliation our financial over available between non-GAAP is in that, to the our

Kevin Yeaman

came achieve the call. the the we which to the high quarter end everyone in that of last call. Both and are non-GAAP revenue annual to the quarter quarter us It's we range. range of earnings end earnings first earnings financial a on and towards fourth earnings the on licensing thanks for gave high gives confidence track our to revenue total provided FY Thanks, year, joining for on the guidance strong today the we guidance start the that the us Peter, above for call, of came and 'XX in

grow the expect full expect year. And grow revenue. I'll Robert year, creators, to to Dolby we financials. of to roughly I'll continue and OEM broad positioned continue engagement to the flat patents ecosystem roughly foundational a well be XX% content highlights non-GAAP over call to for and are turn and for We Vision quarter, few revenues Atmos, faster Dolby the imaging full to the cover of we than partners. the earnings robust our then from review distributors have to for and the

support New are community of Dolby for are Record creative the continues out to of nominees Our show strong Dolby Artist Dolby for Grammy Year of Album available and Year X XXXX the nominees Atmos, Dolby Best in and of X in and Vision. X Atmos. Grammy available Atmos for the All

For XXXX, XX% Vision. and box office domestic titles global released local Dolby Dolby calendar year over office almost box from of XX% and came the and in Hollywood Atmos of the

content. We Dolby TVs, In in and PCs continues the a on up sports including music, ago, user-generated display show wrapped the across live momentum to cars, build addition and the TV, bars. Starting movies, and CES was with and across weeks few auto. sound floor, to music experience

their of their with Dolby into deeper expanding starting partnerships market in announced have XX Dolby with and have with We after OEM high-end models our over over are partners, models, OEMs those Many XX-plus XX brands lineups. Atmos. Atmos

XXXX. the our end models in partners, of market Mercedes, over by One of had XX earliest

ahead. consumers now transformed supporting CES, Atmos Dolby automakers, priority broader they're that whether aftermarket as a X-channel is and making growth more automotive a for We and Dolby demonstrated into Lee Texas opportunity getting around Display Vision. The entertainment coalesce it is for are Dolby or of high-end all first the pick entertainment excited we Auto implement. about to the car it With charge. to has has its experience. At are sound Samsung Atmos it in up and family cars, Dolby and are ecosystem easier Dolby someone and and Dolby chips new a experience, include Atmos Vision will OEMs that the waiting Pioneer also that automotive to entertainment announced displays an in-car Atmos and their continues system. Instruments adopt Dolby market around in Vision, the car an entertainment in with announced Dolby also for Also time and excited spending both investment enjoying solution In-car

with make all the and new Dolby Samsung, and Amazon laptops CES support bar support TV lineup bars this Lenovo adoption bars were TVs. In with Vision, Harmon will including Sharp Panasonic, lot from complement Samsung Dolby or sound sound of introduced Dolby and/or Omni progress Vision. Also TVs. new Dolby Dolby and and Enchanted at TCL, launches Atmos Atmos Dolby Dell, mini first RCA. In that We continue that OEMs, Fire peripherals Atmos its Dolby town LED and to Amazon Vision there on their Atmos with Dolby announced partners, November, to enabled and further Dolby Atmos. launched Carton quarter, the PCs, new computers, Asus, TV Hisense, announced announced a supporting including Atmos,

rest quarter first the what partners. a for we with seeing and like from our forward, are hearing behind optimistic and solid FY 'XX of We us, we remain Looking beyond.

is ecosystem Our strong.

continues distributors to our and continues creatives to partners. with OEM our momentum energy build propel with opportunities that and Our

financials bit take you And so the it over I'll with turn who that, a more detail. Robert, to in will through

Robert Park

for joining today. us and Kevin, the on everyone call Thanks, thanks

Revenue earnings earnings high detail, the in was of to favorable for in some QX a range. high the I'd the end Before the hit above near quarter we out end review call, of in the by like laid true-up driven came we range and the primarily the highlights. QX

it's our early same the so in are We the keeping we're time, unchanged. start off year for a At fiscal guidance to good year, 'XX. full

front business the on engaged. progress our remain partners making and are We

value up the to proposition long-term million the solid, remains minimum And was by year our and Licensing financials $XX strong, ago prospects. are and The volume of Detailed up commitments. commitments quarter. are compared $XXX quarters. increase growth performance million, $XXX revenue licensing confident XX% and was QX in revenue revenue auto. in movement of we Products main Our was our a timing but services of shipments all reasons up for quarter 'XX mobile reported million $XX XX% estimate. our was was above was across markets, original drive includes end a This most notable notable true-up that on were favorable true-up are XX% licensing true-ups timing broadcast QX our this year-over-year. volatility minimum mark was The between fiscal up can million, reminder, A from GE year-over-year. IR as XX% and recoveries, is and X year-over-year. for volume this which end website. revenue in

and line. we and Moving non-GAAP of stronger $XX diluted in to end we about $X.XX have earned approximately operating $XXX approximately generated million guidance, operating $X with align on authorization. to the continue remaining ended $XXX plan of million. GAAP we from dividend per primarily above In year bottom XX% cash cash $XXX investments the basis revenue priorities. as due to high the our the worth a with expenses our on common charge We repurchase share million included stock in million our quarter QX, up flow. repurchased a business our ago $X.XX dividend, a million and resources of a of and our a declared quarter restructuring We

Turning to guidance.

expect year, year. weighted Last Our to the first the half similar weighting a of year. typically full year and the this towards XX% we half first half, weighting more revenue was XX%, is second

expect $XXX to from million. Gross For QX year licensing XX% margin million million to between fiscal million. revenue that, and should a on 'XX, basis. be $XXX Within is $XXX revenue we non-GAAP estimated range approximately $XXX

million. to We $XXX expect million $XXX and non-GAAP operating between expenses be

to basis. be QX Our XX.X% effective around rate tax a on for non-GAAP is projected

So that we per non-GAAP EPS be estimate should and between diluted $X.XX $X.XX as result, share. a

Moving full the on to year.

for be what for and between revenue last our To we reiterate billion earnings. we $X.XX on $X.XX year, expect and full are $X.XX non-GAAP $X.XX revenue repeat We year maintaining billion. guidance to earnings and said and quarter, the between full

$X.XX million be expenses non-GAAP expect billion revenue and operating be $X.XX $XXX million. to to We $XXX between license between and billion and

from no change there's revenue from to to Dolby technology Dolby roughly we patents be market and what and end audio revenue Vision flat last expect perspective, imaging an to Atmos, quarter. foundational grow We communicated roughly XX%. From

the expected year. To the engaged. We grow are wrap expect Dolby-enabled growth to for still up, and in down and content mobile are partners and expected other to to be be things markets. distribution electronics and digits continues mid-single nicely, our very is of and creation consumer Broadcast PC flattish

line the to like for Our for growth. With back strong, to Operator? the we well questions. I'd financials to remain positioned operator open long-term and turn it your are that,

Operator

Steven We'll Instructions] Rosenblat Securities. to [Operator Frankel, go first

Steven Frankel

And that also the of opportunity relative seeing the was I comment beginning on true QX, the or in foundational appreciate questions. you're different some trends in of the the to year? year, for any ask the flatness

Robert Park

here. be other nothing anything to our indicated than flattish, Robert but QX it's the still on We year Steve, is full being view focus to -- in that.

Steven Frankel

land number that then that that you growth the would Okay. anything the later into deals? about is we as deeper of level mobile sizes timing penetration ebbs outsized there in rates deal year, of in a pull-in read just the was of thought these a of the that's well? kind And flows maybe this and Or or simply or something in could QX, in

Kevin Yeaman

Two mobile. about we've can minimum fact things, the that you on Steve. there's so prevalence volume know, a talked of more commitments, One from within quarter-to-quarter timing is just, mobile, vary higher as --

integration affected GE impact. had was other largest of The the markets, licensing, that -- is the mobile thing while all

Steven Frankel

the review, this of beginning pretty then to do exciting. design pretty typical the years show quickly, auto Is is could couple seems And vehicles or out? cycle Okay. up that time that to your in that What cars screens be table CES be models. OLED is that you OEM these Samsung a for something think happens on your for

Kevin Yeaman

Yes.

Vision, strong automotive, So the to momentum a we and big have in-car we're is center -- of with at mean we ourselves in have put all, Dolby excited the well, opportunity really priority the addition Dolby clearly, entertainment I about Atmos. for investment with of that. first

Vision know, CES, As you to Auto demonstrating in market, have that's were at the car Dolby Lee we we're demonstrating that. first

think that we the So it. is for ready ecosystem

the see the also think opportunity. that in partnership, shows particular they I Samsung

their having Dolby into And Vision natively so them automotive. displays for integrating

and I cycles. working it Steve. think both the on easier -- we've didn't opportunity We've been implementation for makes this, validates obviously

and expect more year, would and we're progress Atmos Vision Dolby Dolby car in Dolby we we've include excited to the So Atmos. extend what to throughout with the done

Steven Frankel

last Okay. one quick for Robert. One

particular, undershot where you X QX, ended general, outsized in or the in it was the Was actual true-up On that manufacturer quarter. just volumes in in up?

Robert Park

really was particularly up excuse X all -- There's and Yes. partner markets, TVs that me, stands but across It auto. particular not or vendor OEM out. in

Operator

from the Sholl, take Research. next We'll Patrick question Barrington

Patrick Sholl

the growth about on of Just your be you maybe take the expected for image some Can what target that end variables like the drag XXXX? Vision kind versus key and of talk patent would for of that range like the in higher the might a growth to you licensing. Atmos

Kevin Yeaman

Yes.

the we a have, and factors an where market -- of pace from pace especially and automotive think there the about rollout. we biggest feel it's are of just end of so momentum I view matter great of the adoption the point the

the that's variable biggest So there.

have with far grew -- from TV that speed was we TVs XX% on And being couple and for areas in and to in that content, all that's working where with Dolby Atmos mobile, our able keep experience that And the content. getting been manufacturers of rate each Dolby is off, years on up They're also wins that have to paying TV of quarter ecosystem before So user and is we're edit the to content we're -- capture of share-wise. extend doing where with of the to last focus and we adoption share increase their Dolby room, XK to the going. as well year, up living bringing particular Hisense, one our we'll lineups, the likes saying our deeper about highest market into our that Vision Vision, a TCL. more Vision capture speed the we've of traction work Dolby you mobile. doing, as Dolby then XX% side, the

So those areas. X the are

getting of would is of it shipping going them and -- if what's if and obviously produce those so are. and And more popular the are the the upside market models obviously, drive what how -- those things pace into wins to

Patrick Sholl

Okay.

Just then that? screen provide Cinema, on guess, update you Dolby of any I on could base sort for the

Kevin Yeaman

again. wasn't a And last premium to X of it's outlook forward. after Dolby years, this for improvement increased the And year-over-year the Certainly, getting a Yes, partners where as tough we in did working going seen large environment -- going premium exhibitors being been It invest, our significant for has to we've quarter. I there. see significant We pickup increase, that screens said we both to Cinema and it's but the add -- add screens in last over did X cinema format these think Dolby a we're as products. Cinema, years, the office so box significantly. like before, screens, percentage accrues the screens with able the

exhibitors look invest office, they box look want in and they screens. and 'XX forward, confidence invest have to is as beginning in to so the they And are premium where to greater 'XX

Operator

Next, Schackart, you'll hear from Blair. Ralph William

Ralph Schackart

year Robert. as into look you to see maybe of some now you start looking just as XXXX then? follow up the you're If or And there product speak now ago versus saw maybe the foundational XXXX, you either versus obviously, macro maybe momentum for I'll and is environment a if contrast maybe But then you better. you compare in out out could

Kevin Yeaman

is -- Dolby highly and the of that we our Vision, so flat ago a that. for that be all, customers and partners is to into they environment which Dolby which what excited Well, Ralph. to we continue about Thanks, increasingly the first came year continue Yes. foundational, be why to were stabilized, saying has we us engaged and gave quarter roughly on optimistic Atmos, guided

into automotive, We've relates than now partners of Vision FY it of 'XX. we the OEM Each doubled as Auto. most are more expand -- looking to added of to where deeper course also, we those -- their number with partners Lee think the I those over lineups. have of extend Dolby

a there. obviously, looking pipeline have, grow to we're We that

the we're potential TVs coming areas for X years, that said and a initiatives base, Dolby one having to XX% keep momentum. And TV Dolby So at is getting Capture pipeline risen also and the in I In think -- heatisystem. Vision, continuing our earlier, were to optimistic continue just our as mobile growing. to a where off growth of again, lot Vision have the about we to further that for in -- XK we're strong we rooms, larger that XX% keep [ of ] the rolling ball have about and higher to of living

Ralph Schackart

And maybe of follow-up a Great. did sense investor since you sort I a opportunity. lot on pivoted questions the then. I model then get frame and of to a kind while of just just then a get how the you ago, know of could

if bolt the then a take on to for And that. sort could of to frame step of you just back us. maybe So opportunity maybe kind and

a apps, guess As of product the could sense environment over the beyond there is could clear. evolve us here you we or opportunity IO, enterprise maybe -- that give sort in-app about I to are an think benefits it's pretty in time? of the But play if speak how

Kevin Yeaman

course. Yes, of

a latency, pivot, companies touch it ability talked how I'm here into do demand which that about X kind could audio have average to and recognizing experiences, you Chicago. where makes customers solution. signal our brought our seconds, digital such particular, engaging experience have real-time when it in XX are great an of to from today the a I these sub-seconds, their but stream we target -- an it offer could real in game do we the you sports have was complete to Francisco, the 'XX ultra-low So it could which very XX, watching the in important San you're of days. looking In be we so we areas, developer watching in that top interactive are to a built And coming XX. game. seconds hard right? whereas yes, other more video audiences we are in the And I'm seconds, part their in down can FY more TIO, model see can self-service content evolve that on improve with are -- and and that, strong and high-quality of functionality. to in course, went ] continue before So [ have we've a of you list you, around of on for

would I So say, think that continues be Ralph, to experiences. organizations. our significant it see for these those -- We we digital priority a investment as

But added Paddy we now to going is is talk Ireland. has us which has be entities. into flutter It does using shop to the One the we're continues speed thing extend Paddy solution which It's the about. Power, over ] year, using that the customer flutter for that ] now it in so experiences be Power up [ which earlier [ ] to in-shop might And is XX sports the Paddy that Power [ gotten experience. company, not flutter. of this yes, betting original and digital. first was first And their is

the go always And low the when latency And been important. so into you horse them, and early. were it for doing race you're -- has but shop, watching they

the using So was be some stuff. sort might own it and even their a horse. if reliability of not a It cut real was you And going, number would the out they of able start-up of to problem. the discern were

shops. up streams different so those live to of And now reliability in has gone the dramatically. have at on forward just dozen has -- X up any going Each and shops or went X We're more given time, XXX they at with betting can us. events

And audio that high-quality they're video a about that now they've that so course, look stream reduction forward to of dramatic in in the creating and as a group part because more forward. we had And fact opportunities excited larger we go latency. the we're calls of service they're the getting

Operator

have this at time, the closing Everyone no are there Does questions. further any management remarks.

Kevin Yeaman

us, Thank up you keeping look for and to to speed forward No. you. on joining we you progress. Thank our

Operator

once Thank Thank participation. ladies all and again, your this conference. gentlemen, you. that you for And conclude does

You now disconnect. may

Dolby Laboratories (DLB) 29 Jan 252025 Q1 Earnings call transcript