IDCC - Earnings call transcript Q4 2024

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Operator

Good day, and thank you for standing by. Welcome to the InterDigital Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] Today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Raiford Garrabrant, Head of Investor Relations. Please go ahead.

Raiford Garrabrant

good and Michelle, you, morning, everyone. Thank InterDigital's to Fourth Quarter Call. Conference Earnings XXXX Welcome Garrabrant, Relations of am Head I Raiford Investor for InterDigital. With Chen, our Brezski, call are CEO; today's Rich our me and CFO. President on and Liren

and calls, prior the some the then will Consistent the for with and questions. we company up highlights offer about quarter call open

this can Investor Relations our you details, release additional on our earnings and call slide For access presentation that accompany website.

forward-looking call statements I need our to you we Before will and begin this make performance and plans not our remarks, beliefs, as are we are made hereof. guarantees regarding date future that current remind which only in expectations, the of of

Forward-looking and Factors section results Form our by described events are could contemplated XX-K Risk to to uncertainties that in forward-looking in filings. the results uncertainties cause and These statements. report include and statements such actual annual on and those SEC risks risks differ subject of and events materially XXXX our other from

today's presentation measures to In Relations our financial non-GAAP measures GAAP the directly comparable posted supplemental Reconciliations most are to website. non-GAAP may financial measures. of materials to addition, Investor in these the the of contain section references included financial

over With I turn that to will taken Liren. the care call of,

Lawrence Chen

to Thanks growth. Thank shared at positioned this today. never our has for you, moment, belief morning, drive Raiford. A Good everyone. better been I us joining year ago that InterDigital

started. in XXXX, every we ever since roughly best we here sitting economic trillion the our delighted than more XX to just Now we delivered are are year, ecosystem to critical months in later, results value generating getting believe that history. technology in share $X business an our And I'm

and development the details results, highlights our for provide our significant video path a program. and beyond, fourth summarizing Today, growth in I'll full the XXXX quarter through more service recap including on our year

outstanding In the delivered quarter, we fourth performance. another

to $XXX adjusted XXX% million quadrupled year-over-year. EBITDA increased EPS non-GAAP Our nearly while revenue year-over-year and

agreement license a and the quarter, earnings with our OPPO, covering call, in new discussed we worldwide last we sales devices. OPPO As Realme signed of last OnePlus

X smartphone smartphone and top have annual largest manufacturers, worldwide. XX% licensed of approximately We now shipment

to with program through We entered binding the them. that determine and with our technology ZTE, our added our to also arbitration in the with ended our have license a with announcement our final in litigations major renewal company, into the we terms Lenovo quarter momentum Chinese agreement and smartphone of

Looking outstanding another licensing XX% the across momentum at all XX in almost for of increased new makers. and it for the [indiscernible] XXXX with was the annual largest company. the million, programs the our year $XXX the agreement months history. Revenue highest revenue increased overall, to device company's world's some

We record EPS adjusted also in will results cover and detail more XXXX. those in level EBITDA financial delivered his Rich section. in

Across our year. new agreements closed we licensing program, throughout the XX

and license with as and with new our Samsung smartphone program. electronics In signed Google IoT in devices our a range of a with OPPO license TPV, license consumer leading manufacturers, and new addition to covering we ZTE, as well TV

for more now smartphone the XXXX. an use the the This XXXX, how video range IoT XX% and program. VC year cases. $X.X In wireless than since have program agreement revenue reflects and technology of from our start license beyond and more of worth supports of [ closed We ] electronics come consumer than upside billion highlights expanding

terms decision a in in expecting mobile here round are final finished the devices. may of to to for Samsung party license binding October, we and The a final recall, you As soon. arbitration have with we our settle last the are last

license. final will of to Samsung this terms reminder, already a As the and the license X, arbitration determine portfolio our take starting agreed XXXX January from the binding

all research Our are on cylinders. teams firing

of innovation and cutting-edge development focus technology in in As as application quality such the maintain standards, new key in grew our of AI. we our of our ground leadership breaking

again working and fore years, was application our once have leadership FierceWireless in for wireless-related outstanding We ] we throughout to been space XXXX. for [ in of AI video and the an award from to AI. innovation the wireless received December, innovation on In

award design machine for improve AI was network. XG wireless receiver of and the AI-empowered communication, Specifically, use for performance to which a learning

a sets by position and XGPP, From X in we standards. Eeva XXX We people organizations the property Officer, industry AI of only more would licensing, the licensing, to within In IP intellectual hold hold Chief was video, and most companies multiple leadership to the standard wireless Hakoranta, extends named world publication. that than are Licensing across influential our whole X business. standard leadership our cellular in chair leading XX position body among in

of patent excel strength firmly patent filings to worldwide leadership into we more XXXX, The once were were the leading patent one separate world's XX,XXX continue portfolio LexisNexis. on from XXX our made believe assets industry. new of innovative one in was consecutive than converting by holders We our our among innovation third the LexisNexis. patent In what confirmed XG over research the in video in built portfolio reports for X,XXX by advanced as we now WiFi assets. we strongest named global and year again named of is company world's also We most compression with

profit EBITDA significantly revenue a $X at billion adjusted than we target path we outlined our in annual to $XXX Investor new revenue by announced and a our XXXX. more of Day, million where XXXX, in and in Also increase clear recurring

appropriate. to more when a technology level unlicensed our that our year, an technology existing We on a We a is to and our development of every we signing a track last world. valuable strong believe standardized the business are lead to and leadership convert grow turning growth to have focus agreement. vendors year, and remaining on connected continue devices priority proven record at from by of license foundation into by plan to the smartphone research patent to agreement Now build new on higher With renewing execute increasingly billions implemented in our long-term XXXX. in We our our is strategy.

considerable in feel in helping pictures of opportunity video to video build and will make viability We that the enhanced electronic We our consumer quality efficient our and our greenfield to support more video industry, more program, compression, user improving technology of an and video streaming our services. intend IoT in progress we underpins progress strongly experience.

the over This in initiated But innovation subscribers of rights. and billion and Disney, driven Disney But to week, negotiations. million we a in services generates ongoing action by our FY of intellectual their our expect about revenue enforcement could -- including Hulu all infringement be license programs, Disney+, property. paying against multi-jurisdictional we for $XX value ESPN+, from we agreement XXX our streaming 'XX. patent was amicable always prepared in defend of licensing majority so are our

fundamental that the our worldwide past and in which compensated should next-generation will future. research enable We customers believe the that the fairly, several us consumers to in continue benefit be in significant innovation over decades to investment the invest

Before March. over in hope booth X make join [ innovation. I radio can to Please Congress us AI ] it you and latest Mobile I at wireless hand to it our of the in see Rich, to see many very who in to Hall

let in more And Rich numbers talk the through detail. with you I'll that,

Richard J. Brezski

Liren. Thanks,

finish was the primarily prior by outstanding million closed $XXX XXX% As delivered million million Liren our after agreements an and Total to outlook noted, new that increased above in driven the guidance. $XXX revenue to year-over-year we QX, year. of of $XXX

of our related $XXX quarter included OPPO, QX catch-up million Our revenue and to Lenovo license with ZTE. revenue fourth agreements

revenue of of Our $XXX as the quarter of exceeded the adjusted top and of in outlook majority million the the of $XXX XX%. EBITDA vast $XXX margin through an resulted for upside EBITDA to million the end adjusted million flowed

for converts our of EPS $X.XX lower-than-expected share on beat guidance account of dilution the our higher adjustments QX. quarter price for below came and the our guidance. the $X.XX Non-GAAP in greater non-GAAP for from of to due quarter EPS

came high of of However, of $XX.XX in non-GAAP year, strong EPS GAAP or the the operations for free with generation was of cash the million and the full for cash of from EPS million. $XX.XX $XXX and at Meanwhile, $XXX exceptionally end ranch. above cash quarter both flow and

results X demonstrate our success progressing few $X annual additional plus $XXX recurring provide each has of Altogether, in and plus full revenue Liren's year the metrics metrics by XXXX towards years. how comments, Building a XXXX. our delivering of million I'll item on in over billion improved the objective highlight of our EBITDA last from these and noteworthy perspective adjusted

million, to increase the past XX% accelerated in annual revenue growth an $XXX resulting compound XX% of of Total a X year-over-year, over rate years.

which revenue foundational by Our revenue, million ability beyond technologies with smartphones. capitalizing XXXX of -- levels. prior demonstrates our than our bring of included result, includes on This agreement milestone Samsung triple the our grow revenue value the markets to CE/IoT TV, year to more $XXX

the past $X frame, in including $XXX has years. than ended of strong up $XXX in same very last Adjusted million, X.Xx. at a than coming million that XX%, from year XX-point more billion over in again cash adjusted EBITDA XXXX, is improvement almost year. over net with more was which the time Over EBITDA grown We cash, margin X

million flow free flow from operations be $XXX robust to million cash of cash with year. $XXX cash year the of Full and continued for

flow. over nearly cash maturity spring. us the million generated and notes free last and through shareholders our flows These In 'XX to $XXX $XXX fact, allowed upon to X last $X.XX of return buybacks holders strong to have billion dividends million in years, cash we their

the through majority share of returned XX.X or our outstanding Over and count dividends shares buybacks million. the XX% XXXX. that totaling to last shareholders million free X cash share In at have million have time, years, to vast X.X $XXX flow by reduced of our we we shares end the

outlook. Turning to our

to in XXXX earnings of $XXX non-GAAP adjusted to and EBITDA guided $XXX $XXX in to million to million million, We another year range strong revenue with million $XXX share of per have $X.XX of diluted very total $XX.XX. the

arbitration success in our growth In improve flow we of resolution in flow cash XXXX. will efforts drive continued free double-digit upon strong cash licensing delivered we free addition, anticipate an as XXXX and the outstanding for to we the expect from

our per backdrop, increase a as our approved in share. $X.XX Directors to $X.XX Board from that With a dividend of XX%

and we with continued have $XXX we in to expect increased share on million shareholders As to our buyback buybacks, remaining commitment a began returning strong to year capital reminder, the year another Between the authorization. of dividend our XXXX.

in present This simply metric recurring annualizes will our revenue. quarter. metrics annualized a given to that begun have the recurring for revenue You also see financial we

had revenue. we million recurring QX, in example, For of $XXX

get you which and by So far million X, level. by $XXX multiply of record is a that ARR,

rate $XXX have years, Over to of XXXX XXXX. million at start at X the the end at million double-digit of ARR $XXX our the a last increased we growth from

with As at we $XXX which and to begin but close agreements in we year small down expect to XXXX, the this growth we level do expirations, XXXX million due year-end we step concluded to ARR XXXX have double-digit drive a renewals from XXXX.

timing QX for the harder guidance to both of I first because turn quarter. arbitration back the sign includes to the in contrast, it new In arbitration any balance contributions the windows. to is we or reiterate Raiford, of short agreements new of our that quarterly does This agreements it not results from over want 'XX full include Before is and receive year guidance agreements I new our results. may predict or impact

last new combinations of full was results arbitration we can our believe financial range case year As the year, different results. within agreements guided and we achieve through

that, Raiford. back With turn I'll it to

Raiford Garrabrant

Rich. Thanks,

firms attending to California Before those Q&A, investor Please which Conference, to meeting. Dana mention that be reach the Point, out like your in Sidoti a events we ROTH a like virtual. including Conference the in if move QX, to number to is schedule of representatives I'd at you'd and we'll

now questions. we ready take are Michelle, to

Operator

Our come the Capital from is with Partners. line going of Scott ROTH Instructions] first Searle [Operator to question

Scott Searle

like just of Congrats parameters I'm on the around front. some Disney this if Also, the kind maybe ongoing quarter, timing if to the you're other vendors of they're level and in of streaming when address dive seeing. milestones and to wondering guys. you engagement of XXXX, could you Liren, expect opportunities your would kind could the there. the put on progress video as with engagement that you within

Lawrence Chen

question. Yes. Scott, for thanks the

public our filings. Disney, now in it's legal regarding So

amicable after the that of lawsuits. of than years case, X.X as you is more for concluded in and through spending case. bilateral as to in our to negotiation, for are But the enforcement through probably our leading we this reinforcement, fully ] know, X.X most Disney course have we discussions. needed know, committed when deals started filing engaged the have particular we you prefer [ negotiating years And sign we We

negotiation we other during But in any also, for cases open lawsuits. always are the

difficult how to it's the for long So last. lawsuits may me predict precisely

As you quickly our take probably experience, be can it resolve. to and from know smartphone multiple years sometimes fairly sometimes resolved

long how now, of I case, for case this know as really this do of as not will So sure take.

So regarding service license streaming with -- other other engagement with providers.

Day, the make almost always, As in patient engaged have players, Investor with before them. leveraging value [ we And negotiation. all bilateral we our discussed progress, are to major ] we and as to have our we hope in through

Scott Searle

sales catch-up be exiting helpful. could could you us in That's thinking the range to annual a little we guidance. terms the But very that from is probably recurring of it multiple but how provide standpoint? if bit. get a pin color it the I versus terms year different know a ways of Okay. in outcomes, frame down, difficult to how about of one know very shifting would I help you there. there Maybe revenue kind this you're of to some are

recurring that think total $XXX expirations of I think of as revenue this first is the we're that, for it's some layering X there's to million I to guidance? million guidance, and $XX quarter quarter part know the Rich, as of I recurring million, How talked And $XXX year, looking you or much a K, agreements into $XX million. in about that first the

Lawrence Chen

let for I'll then recurring the Rich and have Scott, on the the details me opening numbers. take the Yes. majority opportunities, on of adding

not look have frankly our smartphone Honor you aware. momentum and we there's XXXX need in of probably one resolve that the our with signing [indiscernible], and sign. here, ZTE Weibo opportunity major on we handful the largest We less you as ], is operation order, -- way. we The a know programs, at major if [ really So necessarily for by opportunities others. and have essentially major to need only to you side, are three Then

We in are engaging parallel. with [indiscernible]

the in priority vertical frankly different Rich larger But our to multiple growth team. as the tremendous of TV a On of well section. signing as TV is consumer as electronic, of in lot segments built our covered momentum, his of We in progress have has our we amount side, makers #X see some verticals. making for

the enforcement touched take the obviously, build on we touched with players industry, XXXX, revenue as we a engaging already progress. multiyear not back for on to negotiating For service we Disney. but major already for the important do material here, any and And us

Richard J. Brezski

new that -- Yes. And the looking ended I agreements, of Scott, double-digit through renewals comments, XXXX. I'll my that, just that add ARR drive of we noted million ARR, to with growth XXXX to in $XXX end that we're by and and in number

or typically, that at the year. As -- end always, course end year to and the at correctly we based, million over I'll QX, but expirations the 'XX, of you typically 'XX, or noted have of calendar say again that of $XX typically not the agreements in

million 'XX not that's stepping in really difference QX and down an between revenue dollar the So couple by QX. driven of really impact expirations. That's to recurring

majority kind we had $XX of the you totaling I 'XX that of which noted that we down. that, that's think X expirations math million, step shows

Scott Searle

convert, first us expense, in through Rich, that how about diluted and you're impact structure for in on the the capital in and factoring Great. quarter I just how you progress will capital and you're could interest what Very could, the terms fully if of structure lastly, general. helpful. And share the the thinking also take

think initiated to a a years against be like litigate balance Disney. I It potential be first when ago. was to you sheet able convert robust customers able to to have

cash, and future have net that to forward? instrument is $XXX you an guys going that need of that given you've the got Now million a mechanism in

Richard J. Brezski

Sure.

-- going not income So get really let the that quarter, looking first quarters. as see question the expense. in quarter, then of to And we and have when forward. in In much factoring first interest at differently the we interest in part any that than we're recent me take and we we're, kind of structure it I'll

There, that alluded dilution is We the function also, price. the as looking what factor becomes from potential stock stock you the guidance. around we're that convert to, to hedge. Typically, price or need any in a post of related time the the we at that

you're that impacted column, in table that the on XX-K, sensitivity our in for but at far the there's we our we everybody's warrants know convert this, the hedge. which dilution how statements, dilution itself, reduced the a we you'll shows benefit. financial of I is from In footnotes And dilution right our as have greater aware Again, on to different see issued. the that the through prices. net And Qs,

As for the -- sheet. cap utilizing years, more have bolster the help balance converts structure in for general, to yes, than we've XX been

we're when in much being available we toe make larger to any having buy last enables back that our rights predictions if have of spring That a to the to us customers say they what options we'll our think if I'm toe at we to how capital and us -- the more with than even when while on do position to Because look saying we go structure. shareholders. convert not cap we to to return just more able stock 'XX, need did necessary there. different enjoy forward, enforce in optionality we going I just in we

Operator

question next of William Bhatia Blair. Arjun line comes Our the from with

Arjun Bhatia

kind have of sold smartphones units for appreciate is you your based and this It's technology. understand Liren, on economics work, rate. start I path we're the question far It's we see smartphones, Maybe question I of of opportunity. want there the on one the monetization of video good streaming of on the taking how down is think with all I kind I somewhat here. largely right? litigation royalty first kind the to that to

Is royalty rate billion about opportunity, on number XXX of right? the it rate? some might $XX subscribers. how mentioned get a in it with we You Is think kind million example, grounded here? more should Disney, of sort revenue How for a metric it are stream? subscribers? underlying When should that we per you the this minute we're revenue the streaming Is thinking looking you at I for the in of streaming monetize opportunity think and

Lawrence Chen

Arjun, thank you for question. the

the here, is we on what the actually use. streaming side on to right our negotiating flexible based with So are customers in metric

saving we storage, look well the bring well in underpin fundamentally, cooling forward the as both technology services operating at terms believe a That's If you in on very of set of driving as as their revenue as services. power here. important that side we Internet and cost

may models. have different by and services the streaming -- So business way, different various

some subscription-based, are them of advertisement Some them sponsor-based. be of may

we but for fair to fundamentally table what do the for small price them, bring their charge a when enable we approach very that try So we to services.

So will that where of can the be revenue. of of small subscribers. a get overall be a we amount percentage can subscription All subscription-based, fee that percentage times fairly small monthly the the

We are both actually arrangement. for open

a the the as have data on in of be we about solid same that aware, projecting smartphone which, And a Day, based size in progress we result we recurring Investor the the lot size are project you are as you shown on, that getting and market, by of our smartphone Regarding as XXXX, and commented industry of $XXX overall frankly side of overall Arjun, revenue we third-party million industry. streaming the on have we industry. discussed will in lot have the smartphone. demonstrated from

$XXX to because setting technology my streaming so it's that mature is services, believe us million demonstrate XXXX relatively we for even market for over be target to But patience, our opinion, about therefore for are, conservatively we and the time. our in to the we by ] have we believe them, as new because [ to just though important

Arjun Bhatia

recurring here? the we uplift should there, you expecting and Samsung, coming of a like of Samsung announced that's soon? upsell just I helpful, which follow Wonder in have [ do benchmark arbitration uplift in Okay. XXXX. that Like relatively from sounds the outlook of I incremental that potential be sense With see range QX baking Liren. agreements. in the maybe It think if Understood. should up could revenue you're ] kind Very or you're agreements you particular, QX on if for can some how

Lawrence Chen

is Yes. Arjun, this Liren.

chime to anything might cover Rich be first. people it I'll So in. If there's else,

grow on least by commented growth. at recurring side, any But we revenue outcome. to not deal our that's So XXXX recurring on single any rich based in will or revenue the also target double-digit single

recurring we [ a have And cash of by opportunities these number both carry So way, of are out pursuing. number we as as revenue opportunities a ] well the payment.

opportunity likelihood at we look So estimate all for be that the an this per outcome as case well we holistically and really year. frankly the down they as will

last So this year. is the took same we process

So that's range up them into outcomes of why we, here. added a frankly,

the outcome, process amount already. as commented through earlier, Samsung the substantial boost spent I effort to Regarding have of we arbitration

their holiday us a told matter New that happened hearing fact, due season As take essentially make will us their time, conclusion. Year. it last so will basically, last And arbiter October And to be time they of between, the to the already. told that they writing in after at the decision,

outcome. And earlier commented So we precisely are as here, waiting know the but we what I time. for soon, be really don't that can

that of for the closest the we the calls, substantially to comparable, outcome And to the of believe decide. realize currently the Regarding up believe value. we result. portfolio you value are the our for we range in in look we at And last the ] waiting just should the [ the this contract. most But strongly due gone before is if [ up has ], commented of we prior arbitrator

Operator

to question next America. Our Bank line of with Liani the come Tal going from of is

Tal Liani

hear you me? Can

Operator

We can sir. now,

Tal Liani

think you Once reported a ever significant again, numbers and a Perfect. you're don't It's amount numbers. hard even number predict remotely the guidance. to to I bidding your the is close so that by

part, questions. So want have and the recurring on I I two focus to

ARR, is any than be reasons and Is could the On for you in growth? growth revenues ARR double meaning there should that And between what revenue are the deviation that? recurring, said ARR grow trends digits. -- the different

Are it is, of these they before, and after? in million expirations second XXXX recurring expire that $XX does revenues? expected these expirations? expired question the to How million in go you renewed And noted XXXX. renewed What with $XX with happens

Richard J. Brezski

This is Okay. Rich. Tal. Thanks,

first me with start the Let question.

have will additional comment may Liren for and think an there. make second have question, maybe to I the point I a

this when will the to guidance, my across emphasize, to what when determine the when So and for I yes, -- we agreement guess, time I mentioned period, over a the in again remarks difficult first point today, it's line. window we a short prepared exactly issue quarterly us new

already customers our technology. using are Our

not like that it's we ship So produce so know a They're to already it. certain need they and decision on using it product their a deadline. can make they

reach of And it's a been really when us. them an agreement pay to should the on can function we fair amount they that

consequence, So typically basis, typically agreement, not quarterly a as a we for on potential guidance, And our agreements. higher. come a in the are including we quarterly new on new we'll therefore, if sign

that. the with here, the to outstanding raise came and number out year we for on a and full we we we're last able call guidance XXXX. frankly, year discussed first full year initiate We XXXX very and For it the year an thought guidance, year time guidance. in But full then did as had, beat strong that for we just

the So we're again for to in thrilled feel we delivered about happy numbers confident strong we're can out we 'XX. very performance with come 'XX and

helps. that hopefully, So

along looking As X been years, far over because sales with catch-up revenue double-digit been it. we've mentioned and total the my signing agreements had in new a as CAGR back, recurring revenue getting we have I last versus total, call, on

it in our XXXX revenue, fourth sales we've time metrics. of recurring. One period like problem in We double-digit had it Importantly, with CAGR and ARR. quarter to contributes ARR. X signed though a And OPPO added the it. associated over catch-up even there's with also quarter recurring of that We've I

look you recurring if it's XXXX at think not I that So revenue, in. factoring

mind XXXX the a we earning kind $XXX that's close kind at measure of a what look we're of in better on recurring my where ARR, basis. you million, If at of

a Liren with So comment. let I'll the start second response to

Lawrence Chen

here. Yes. joining Tal, us thank you for

signed longer, sometimes here. we So one, our right, year. recurring amount agreements of sometimes is length agreements, so many contract contract contract have frankly, it's expiration be shorter. to this normal each signed expires have roughly sometime number we X XX they versus And on around absolutely we a certain have have year, years, because I average mean, the it's for

given So a few year, will expire. have contracts on any we

of $XX last X-X. for we So have year, year that's expiration, million this to

So number this it's actually year from a relatively to last year. small

So to they goal, -- before honestly, get renewed our is always them how expire. we

to And sometimes, of time, the in reasons various get them which holiday happen year, frankly those expiration can time. difficult to end for that's a down for different be

be, So pulled frankly, next the year. over to it can

For this for the of our, I I you aware, at our want expiration, at XX-K make end disclose we this year, contracts are for million Xiaomi primarily we of do year. XXXX, about guys to that year, filing, by driven sure $XX are have think, renewal end this

technology, how through I if they portfolio be in compared for the demonstrate we more time. they more. renewal well which to the because get demonstrated value won't benefited as benefited specific is the typically of are have we time contract. as goals And a negotiations But we them of multiple to NDAs. higher here, then have able time demonstrate Tal, comment we on So what the of to for start major to it's ahead months agreement, do, by when the last appropriate, year covered this value roughly X to We contracts the will have try they a

that's So contract had large a a years, Tal. target before And contracts, the we in demonstrated we what expire. X, renewing X general always to practice, last of the including do. track Apple record for the they good That's have we larger

Tal Liani

Or the expired expired will ones? assume for it do also year this this you of year, guidance $XX give a you be numbers? when is the that million So last excluded renewed renewal the the from year? year the that Do assume you

Lawrence Chen

new the trying do way opportunities. unsigned for at look replacing are including open year the dollar target all By Tal, for actually customers we way, we as renewals. as the well is So forecast we to dollar. not

one the share. when lose customer some the by one as them to market customers share the are they up due. over aware, We of And trying are years, come renew you gain may some market of Tal,

gone have in higher Sometimes they in of prices. those a factor devices. may up average have selling parameters. They mix terms all We of XG

are dollar benefits trying So out to frankly and contract. not trying customer, works. normally but replace every how we many That's new higher to it therefore, to get them We valuation of every try more. a are from we renew that

sales a gave also Tal, can I be and look So we frankly, to when some guidance, renew for can. we for this agreements as customers, as try some, difficult at earlier, negotiation. takes them we opportunities tried and as to to But those obviously and complex much all others try the closure know longer year, first-time to the ] open past mentioned we to drive their [ of than sell the

internally, assign of amount outcomes by we the range certain a call of to a multipath of get give a targeting probability result then So total, And the what we to cases. internally we of in each range. and amount certain ourselves for

Tal Liani

Yes.

Okay. customers One your China have of do any from All and the situation, between impact or impact? China. to lot tension on are all type expect them of an elongate last question. other it geopolitics. contract, coming U.S. geopolitical the your A the you

Lawrence Chen

question. Yes. Tal, that's a great

in all mind. are know consider. things But there always keep is several technology in Number geopolitics we one, our to the is global. we So macro environment

[ the frankly in built industry is by associations. developed standard is that open technology Our ]

any export standard. or technology Chinese itself is single subject truly not U.S. open. government, to control. And frankly, a that the So that It's government, own including not license

That's open. point. So starting that's always the

industry industry and to smartphone ]. particular, well [ driven trying at are business, be are it market, right? the look and one large from as opportunity they good you really customers customers in value The always international to as And things. many we who is if sales those want Their different pursue are of by big large have second frankly, domestic open foreign most

for So that's a healthy us. dynamic

amount pro we our have I is developed The fast. come for it's places from frankly, the including who and them, informing really for good which play, model becoming innovation. the the vendor this why spent what ] me, good is good relatively policymakers capital, our other competitor leveraging consumers, enables for business time [ for why and for competition, one, benefiting are important here and in, global is vendors business it's to third a in tremendously is and our model a it's fundamental substantial That's what DCs good of other Beijing Brussels country,

have good across countries model. is tell I'll that quite you, support strong. we our job a business actually frankly, explaining So different And our done Tal,

Operator

comes question Soderstrom line next Sidoti. from Our the Anja with of Instructions] [Operator

Anja Soderstrom

are directed the you My gave most of -- the been have the actually, you into you gave the them a guidance it year. went same gave sense. year, approach questions, year, on guidance into Or... guidance the yes, was little bit which like seemed modest that for XXXX, think? going congrats doing But already. a or performance here. And we you When And this you the great makes

Lawrence Chen

Rich chime let Anja, here. if ask in to me need question So I'll broader to the be. take

amount lead a recurring valuations. deal. holistic the -- And with So to So get frankly, we payment try long of right? And take the how in to well the of here's open renewal, but a certain new to we much completion customers possible are timing we down catch-up we it's explained range a from have amount revenue. year And view brand the can a the and that if of the I pin here, likelihood unsigned of earlier, opportunity: all time, estimate also we it's right? our dollar essentially obviously, opportunities. as hard associate If are as signed,

give wanted obviously to into it. visibility we But enough

provide and it you or year, have the take. we update happen if more our we guidance can done process or deals year, at as we to of That's approach we either come the the latest demonstrated larger information. So we'll year, throughout we And give range. the generally, a do the accordingly off beginning general faster, to the best better the last have or

anything don't Rich so And know I there to wanted if add.

Richard J. Brezski

No, I it. think . that covers

Anja Soderstrom

your Okay. you Again, feel any like just a here way follow-up geopolitical on with environment changed administration. Do in sentiment Or... the the counterparts? has new the with

Lawrence Chen

question, that's Anja. a Yes, great

or stronger So many administration if of And commenting general. person you in anything. look specific specifically new Republicans are any not IP you are U.S., protection I'm at in for aware, the I again, traditionally, guys on think

[indiscernible] So both the decades But IP we last close new administration. a working for And with generally which or beginning thing administrations at good more. of we believe in the are relationship has is the a licensing. still

to business good as So as we why this why technology demonstrate continue in to is important leadership the country. is our for well our relationship. to U.S. them build We U.S., future leadership technology

So support and I strong expect pretty those are well received, forward. going

Operator

to conference would Thank the now Chen I Liren And hand for any like you. back over to further remarks.

Lawrence Chen

Yes. Thank you, operator.

in our look and in XXXX. record us partners our Before InterDigital joined as many we to close, I on you, also everyone, for contribution progress and quarter. thank as for updating who a today, to licenses forward dedication you employees year I'd next thank and well we their like

Operator

conference concludes may today's Thank call. for you. This great Everyone, have you disconnect. and participating, you a Thank now day.

InterDigital (IDCC) 6 Feb 252024 Q4 Earnings call transcript