InterDigital Inc (IDCC, Financial), a leading mobile and video technology research and development company, announced its financial results for the third quarter ended September 30, 2023, on November 2, 2023. The company reported a 22% increase in YoY revenue, primarily due to catch-up revenues from two new patent license agreements signed in Q3 2023. The net income increased by 116% YoY, reaching $47.9 million.
Financial Highlights
InterDigital's total revenue for Q3 2023 was $140.1 million, a 22% increase from the same period last year. This increase was primarily driven by catch-up revenues from two new patent license agreements signed in Q3 2023. The company's smartphone revenue increased by 19% to $104.3 million, while CE, IoT/Auto revenue increased by 30% to $35.4 million. The recurring revenue was $104.5 million, a 3% increase from Q3 2022.
The company's net income for Q3 2023 was $47.9 million, a significant increase of 116% from the same period last year. The net income margin was 34%. Diluted earnings per share were $1.72, a 132% increase from Q3 2022.
Return of Capital to Shareholders
During Q3 2023, InterDigital returned $66.1 million to shareholders. This included $9.3 million, or $0.35 per share, of cash dividends paid and $56.9 million through the repurchase of 0.7 million shares of common stock. The company also announced an increase to the quarterly cash dividend from $0.35 to $0.40 per share, beginning with the dividend paid in the fourth quarter 2023.
Business Highlights
InterDigital signed new license agreements covering its HEVC video compression technology with Lenovo for smartphones and consumer devices such as PCs, and Humax for set-top boxes. The company also joined the Avanci 5G automotive pool as a founding member. In Q3 2023, InterDigital filed the highest number of new invention filings ever in a quarter and is on track for a record year. The company's patent portfolio passed 30,000 granted patents and pending applications.
Q4 2023 Outlook
InterDigital expects its revenue for Q4 2023 to be between $102 million and $106 million. The company's operating expenses are expected to be between $77 million and $79 million, and net income is expected to be between $18 million and $21 million. Adjusted EBITDA is expected to be between $49 million and $52 million, and diluted earnings per share are expected to be between $0.70 and $0.80.
Explore the complete 8-K earnings release (here) from InterDigital Inc for further details.
