Released on November 6, 2023, Adeia Inc (ADEA, Financial)'s Q3 2023 earnings report showcases a strong financial performance, driven by significant renewals with Samsung for mobile devices and Starz in OTT. These renewals have validated the value of Adeia's growing media portfolio.
Financial Highlights
The company reported a revenue of $101.4 million for Q3 2023, compared to $83.2 million in the second quarter of the same year. GAAP diluted earnings per share (EPS) was $0.21, and non-GAAP diluted EPS was $0.38. GAAP net income was $24.2 million, and adjusted EBITDA was $70.7 million. Cash flows from operations stood at $21.2 million.
Business Highlights
Adeia Inc (ADEA, Financial) signed a long-term renewal with Samsung, a global leader in the electronics industry, for access to its media portfolio for their mobile devices. The company also signed a multi-year renewal with Starz, a leading media and entertainment company offering a premium OTT streaming service. Adeia also settled all existing litigation with NVIDIA, a leading semiconductor company, related to certain legacy IP.
Capital Allocation
During the quarter, the company made $15.1 million in principal payments towards its term loan B, bringing the outstanding balance to $630.4 million as of September 30, 2023. The company also distributed $5.3 million to stockholders of record on August 28, 2023, for a quarterly cash dividend of $0.05 per share of common stock.
Financial Outlook
The company is narrowing and adjusting its full-year 2023 outlook. The GAAP and non-GAAP revenue is expected to be between $385.0 million and $395.0 million. The GAAP net income is expected to be between $54.7 million and $56.7 million, while the non-GAAP net income is expected to be between $152.0 million and $158.0 million.
Conclusion
Adeia Inc (ADEA, Financial) has demonstrated a strong financial performance in Q3 2023, driven by significant renewals with key customers. The company's strategic vision remains on track, and it continues to strengthen and expand its deal pipeline. The company's financial outlook for the full year 2023 has been adjusted and narrowed, reflecting the company's confidence in its continued growth.
Explore the complete 8-K earnings release (here) from Adeia Inc for further details.
