InterDigital, Inc. Q4 FY2024 earnings call

• 2024 was the best business results in InterDigital's history. • In the fourth quarter, revenue increased 140% year-over-year. • Signed new license agreements with Oppo, ZTE, Google, Samsung, TPV, etc. • Research teams leading in standard development and AI application, received innovation awards. • Made more than 5,000 new patent filings in 2024, global portfolio over 33,000 assets. • Outlined path to $1 billion+ annual recurring revenue and $600 million+ adjusted EBITDA by 2030 at Investor Day.

In the fourth quarter, revenue increased 140% year-over-year to $253 million. For the full year 2024, revenue increased almost 60% to $869 million, the highest annual revenue in the company's history. More than 30% of 2024 revenue came from the consumer electronics and IoT program.

• 2025 total revenue guided in range of $660 million to $760 million. • Adjusted EBITDA guided in range of $400 million to $495 million. • Non-GAAP diluted earnings per share guided in range of $9.69 to $12.92. • Expect to improve free cash flow in 2025. • Board of Directors approved 33% increase in dividend. • Annualized recurring revenue ended 2024 at $468 million, expect double-digit growth in 2025.

• Forward-looking statements are subject to risks and uncertainties that could cause actual results and events to differ materially from those contemplated. • Risks include those described in the Risk Factors section of the 2024 Annual Report on Form 10-K and other SEC filings. • Potential risks related to ongoing litigation with Disney and other uncertain outcomes of negotiations/arbitrations.

Q: Scott Searle asked about the timing of the Disney litigation progress and engagement with other video streaming vendors, and capital structure.

A: Liren Chen mentioned Disney engagement for over 2.5 years, prefer amicable discussions but enforcement needed; engagement with other streaming providers is patient through bilateral negotiation. Rich Brezski talked about first quarter factors and capital structure optionality.

Q: Arjun Bhatia inquired about the streaming opportunity monetization metric and Samsung arbitration uplift.

A: Liren Chen said flexible in negotiating, could be subscription-based or other arrangements; Samsung arbitration last hearing in October, waiting for outcome, value of portfolio has increased.

Q: Tal Liani asked about recurring revenue trends vs revenue growth and handling of expired agreements.

A: Rich Brezski said ARR has double-digit CAGR, Liren Chen explained renewal process for expired agreements, starting ahead of time to demonstrate value.

Q: Anja Soderstrom asked about guidance approach and geopolitical sentiment.

A: Liren Chen said holistic view of open opportunities, general approach to giving guidance; discussed positive sentiment towards IP protection with new US administration.