Adeia Inc.

2025 earnings conference call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the call will be open for questions. I would now like to turn the call over to Chris Cheney, Vice President in Investor Relations for Audio. Chris, please go ahead.

Good afternoon, everyone. Thank you for joining us as we share with you details of our first quarter of 2024 financial results. With me on the call today are Paul Davis, our president and CEO, and Keith Jones, our CFO. Paul will share with you some general observations regarding our first quarter, and then Keith will give further details on our financial results and guidance. We will then conclude with a question and answer period. In addition to today's earnings release, there is an earnings presentation which you can access along with the webcast in the IR portion of our website. Before turning the call over to Paul, I'd like to provide a few reminders. First, today's discussion contains forward-looking statements that are predictions, projections, or other statements about future events which are based on management's current expectations and beliefs and therefore are subject to risks, uncertainties, and changes in circumstances. For information on the risks and uncertainties that could cause our actual results to differ materially from what we discussed today, please refer to the Risk Factors section in our SEC filings, including our annual report on Form 10-K and our quarterly report on Form 10-Q. Please note that the company does not intend to update or alter these forward-looking statements to reflect events or circumstances arising after this call. To enhance investors' understanding of our ongoing economic performance, we will discuss non-GAAP information during this call. We use non-GAAP financial measures internally to evaluate and manage our operations. We have therefore chosen to provide this information to enable you to perform comparisons of our operating results as we do internally. We have provided reconciliations of these non-GAAP measures to the most directly comparable GAAP measures in the earnings release, the earnings presentation, and on the investor relations section of our website. A recording of this conference call will be available on the investor relations website at adia.com. Now, I'd like to turn the call over to our CEO, Paul Davis.

Thank you, Chris, and thank you everyone for joining us today. I'm glad to be here again to share the results and progress we made in the first quarter. We are off to a great start to the year. We generated $88 million in revenue and $57 million in cash from operations, which was in line with our expectations. We also executed on all four elements of our balanced capital allocation strategy and ended the quarter with an even stronger cash position. Before I get into the details on the progress we made in the first quarter, I want to highlight that our full year 2025 outlook remains unchanged despite the volatility in the current macroeconomic environment. We feel confident in the resilience of our business model, even in times of uncertainty. Over 80% of our full year revenue outlook is supported by contracted revenue. Our average contract term is five years. So our visibility is not measured in quarters, but in years. And thus our business is less impacted by near-term economic volatility. The vast majority of our customers are well-established leaders in their industries. We have built a strong track record of building long-term relationships, renewing customers again and again with many relationships spanning over 25 years. As a result, our business model has proven to be stable and resilient. Lastly, our focus on growth aspects of our business, including OTT, semiconductors, and adjacent media markets is paying dividends. Our Q1 2025 recurring revenue is up modestly year over year as compared to Q1 of 2024, even when taking into account the anticipated declines in pay TV. And when you look at the non-pay TV parts of our business, recurring revenue is up an impressive 25% year over year. Turning now to our first quarter momentum, we signed 10 license agreements, highlighted by four agreements with new customers in key growth areas, including social media, OTT, and semiconductors. I'm proud of the progress we made in signing new customers. Adding new customers is critical to our growth strategy, and we are executing well on this front. Over the past two quarters, we have signed 20 license agreements, including eight new deals. We further expanded our already impressive social media presence with yet another new customer in the first quarter. Social media is an area where we've made great progress, having signed most of the major players over the last few years. As our media portfolio has continued to grow, particularly in areas such as imaging, video, and content delivery, so has its applicability to social media. Another significant new customer we signed in the first quarter was a leading international multi-platform media company for their OTT offerings. OTT is one of our high priority growth markets because of our media portfolio's applicability to it and its growing subscriber base. Having penetrated only a portion of this market today, we see a significant opportunity as we continue to pursue large customers in this key growth area. We also signed a new long-term license agreement with a major U.S. professional sports league for access to our media portfolio. The relevance of our video assets to their online streaming offerings was a driver for this new customer, and we're happy to have added them to our OTT vertical. We are excited to welcome a large domestic manufacturer of analog and mixed signal semiconductor devices as a new customer in the first quarter. Hybrid bonding continues to gain adoption due to its cost, power, and performance advantages, and is a key driver to our new semiconductor deal flow. In addition to these four new deals, we signed six renewals during the first quarter. Four of these renewals were in pay TV and the others were in OTT and consumer electronics. One pay TV renewal was with SK Broadband, a leading IPTV provider of high quality media and telecommunication services in South Korea. And another was with domestic pay TV provider Frontier Communications. Renewals are vital because they support our ongoing revenue stream and provide a stable, predictable foundation upon which we can grow in the future. These renewals continue our strong track record of over 90% of our customers renewing their license agreements with us. We are on track to deliver sustainable long-term growth. Existing customer renewals maintain a recurring revenue stream, while new customer license agreements are the primary growth catalysts. In media, we expect that declines in pay TV will be offset by new customers in OTT and adjacent media markets such as e-commerce, ad tech, and gaming. In semiconductor, adoption of hybrid bonding in logic and memory devices and our continued success signing volume-based agreements with customers ramping new products provides an additional avenue for growth. In the first quarter of 2025, we grew our total patent portfolio by another 4% to over 12,750 patent assets. We anticipate the growth of our portfolio to moderate through the rest of the year. Our focus on expanding our portfolios has been a clear differentiator and creates value for our customers. But increasing our numbers is not our primary goal. Rather, we aim to focus our efforts on expanding and diversifying our portfolios to meet the evolving needs of the markets we serve. While over 85% of our patent assets are generated organically through our R&D efforts, we augment our internal growth through actively searching for patent assets we believe will accelerate our growth opportunities. Last quarter, we acquired two IP portfolios for $5 million in total. One was in micro LEDs, an area that has synergies with our hybrid bonding IP and that we believe expands our value proposition with customers in this market. We also acquired an imaging portfolio, which has a broad applicability today across several of our growth verticals, such as e-commerce, social media, and automotive. Our strong cash generation has enabled us to balance our capital allocation between investing in growth through strategic tuck-in acquisitions, improving our balance sheet through significant deleveraging, and returning capital to shareholders through dividend payments and share repurchases. Keith will share additional details on our progress during the first quarter in a moment. Before I turn the call over to Keith, I'm happy to note that Sandeep Vij has been nominated to join our board of directors, replacing Raghu Rao, who will be retiring from our board after our upcoming shareholder meeting later this week. Sandy's extensive expertise in the technology sector, particularly in semiconductors and intellectual property, combined with his significant leadership experience as a CEO and board member, will be invaluable as we continue to execute our strategic growth initiatives. Additionally, his deep understanding of the technology landscape will be a tremendous asset as we continue to drive innovation and expand our market leadership. On behalf of the entire team at Audia, I want to express our gratitude to Raghu for his outstanding contributions over the past several years. Now I'll turn the call over to Keith for review of our financial performance.