InterDigital, Inc.

concern a listen only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, we'll need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Rafer Garabrant, Head of Investor Relations. Please go ahead.

Good morning to everyone and welcome to InterDigital's first quarter 2024 earnings conference call. I am Rafer Garabrant, Head of Investor Relations for InterDigital. With me on today's call are Liren Chen, our President and CEO, and Rich Breske, our CFO. Consistent with prior calls, we will offer some highlights about the quarter and the company, and then open up the call for questions. For additional details, you can access our earnings release and slide presentation that accompany this call on our investor relations website. Before we begin our remarks, I need to remind you that in this call, we will make forward-looking statements regarding our current beliefs, plans, and expectations, which are not guarantees of future performance and are made only as of the date hereof. Forward-looking statements are subject to risks and uncertainties that could cause actual results and events to differ materially from results and events contemplated by such forward-looking statements. These risks and uncertainties include those described in the Risk Factors section of our 2023 Annual Report on Form 10-K and in our other SEC filings. In addition, today's presentation may contain references to non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the supplemental materials posted to the investor relations section of our website. With that taken care of, I will turn the call over to Liren.

Thank you, Rupert. Good morning, everyone. Thank you for joining us today. On our last call, we provided annual guidance for 2024 revenue of between $620 million and $670 million. This guidance highlights the increasing momentum of our business and the multiple growth opportunity that we have identified and expect to achieve through the rest of the year. Today, I'm pleased to share that we have made significant headwind in achieving our goal and reconfirm our 2024 annual guidance. Revenue for the first quarter were $264 million, up by 30% year-over-year, and above the high end of our guidance. Our Q1 revenue was one of the highest in our history and an all-time high for our CE and IoT licensing program. Through the quarter, we have made great progress on multiple fronts of our business. We signed seven new license agreements. We enhanced our position as a leader in the application of AI in both wireless and video, and we received several positive court decisions, which we believe will help us to advance negotiations with certain unlicensed smartphone OEMs. We begin the quarter with a new landmark license with Samsung TV business. The agreement covers patents and our joint licensing program with Sony, and introduce our own patent across a range of video and Wi-Fi technologies. Samsung is a market leader in TV, and this agreement highlights both the value of video and Wi-Fi innovation and the goals we continue to build in licensing the consumer electronics sector. I want to emphasize that this new agreement is separate to the Samsung smartphone license. We announced at the start of 2023 that Samsung and InterDigital has agreed to renew the license for their smart TV to our portfolio. The final term of the smartphone license includes how much Samsung must pay us, are still the subject of an arbitration hearing, which is on track to be held this summer, with a final resolution expected by end of this year. The seven new agreements that we signed in the first quarter reflect the momentum we continue to see across all our licensing programs, and our strength in consumer electronics and IoT in particular. The revenue and recurring revenue in Q1 from our CE and IoT program were both record highs. With Samsung and other agreements that we closed in the quarter, we have increased the cumulative value of contracts that we have signed over the last three years to almost $2.7 billion. giving us an incredible strong base from which to drive new long-term agreements and pursue additional growth opportunities. Staying unlicensed, we are making significant progress in our effort to ensure that we receive fair compensation for our innovation from unlicensed smartphone OEMs. Earlier today, a German court issued a very positive decision for us in our dispute with Lenovo. The court ruled that Lenovo infringed one of our 4G and 5G standard essential patents, that Interdigital has acted in a frowned manner, that Lenovo is an unwitting licensee who engaged in holdout and should therefore be enjoined in the German market. The injunction means that Lenovo will be prohibited from selling 4G and 5G compatible devices in Germany. Also, as part of our dispute with OPPO, a German court also ruled that OPPO infringed Interdigital's 4G and 5G standard essential pattern in suit. That Interdigital has acted in a frank manner, that OPPO is an unwitting licensee. The court also awarded injunction against OPPO. In India, in another trial against OPPO, we received yet another positive decision, as OPPO was ordered to pay royalties in the form of a security deposit to the court. The Indian court also heavily criticized and fined OPPO for its delaying tactics during our negotiations and ordered that the trial be concluded before end of the year. We are encouraged by this recent development in our cases, and we believe we have built significant momentum in our negotiations with both companies. As I have said many times before, we always prefer to sign a long-term license through amicable negotiations, but we are ready to enforce our patent rights if necessary. Our strengths as a fundamental innovator in critical technology continue to underpin our progress. Our research team has long been recognized as the world leaders in the development of wireless and video technology, and increasingly our leadership in AI is coming to the forefront. In Q1, one of our senior engineers was appointed to head the AI and Machine Learning Standing Committee of IEEE, the standard development organization which leads the evolution of Wi-Fi. At this year's Mobile World Congress in Barcelona, we showcased two demonstrations which had AI at their heart. One was in partnership with Keysight, which used a neural network developed by our engineers to demonstrate the application of AI in a 6G network. And a second combined advanced video compression and AI to significantly reduce energy consumption of streaming video while preserving picture quality. Also at MWC, we demonstrated cutting-edge immersive video and haptic technology in a specific use case of esports and showed our increasing leadership in integrated sensing and communication and emerging technology, which will be a pillar of 6G. Our research success continues to be reflected in the development of our global patent portfolio. Recently, we were confirmed among the top 25 companies globally that filed the most new patent applications with European Patent Office last year. Our number of new applications filed with the EPO increased by 40% year-over-year, in a clear indication of our success in translating our foundational innovation into patent assets. The strength of our innovation and patent footprint give us an excellent platform to drive further growth in our existing licensing program and in greenfield opportunities such as cloud-based video services. And with our track record for delivering new license agreements with leading manufacturers such as Samsung, we believe we are in an excellent position to reach our financial target for the year. With that, I'll hand it over to Rich to talk you through the numbers in more detail.