InterDigital, Inc.

Good morning and welcome to the first quarter 2025 earnings call. I am Franz and I'll be the operator assisting you today. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star and then one on your telephone keypad. If you would like to withdraw the question, Press star 1 again. Thank you. I would now like to turn the call over to Rayford Garbrandt, Head of Investor Relations. Please go ahead.

Thank you, France, and good morning, everyone. Welcome to InterDigital's first quarter 2025 earnings conference call. I am Rayford Garbrandt, 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 the call up for questions. For additional details, you can access our earnings release and slide presentation that accompanied 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 factor sections of our 2024 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 Larry.

Thanks, Reefer. Good morning, everyone. Thanks for joining us today. On our last call, we provided annual guidance for 2025 with revenue of between $660 million and $760 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 this year. Today, I'm pleased to share that we have made significant headway in achieving our goal and reconfirm our 2025 annual guidance. During this quarter, we licensed Weibo Mobile, a major smartphone manufacturer, to drive revenue above the top in our guidance and increase our annual recurring revenue to all-time record level. We were also once again recognized as one of the world's leading innovators, demonstrated our cutting-edge technology at the Mobile Congress trade show, and shortly after the quarter closed, we signed another major license agreement, HP, in our consumer electronics and IoT program. Our revenue, adjusted EBITDA, and non-GAAP EPS for Q1 were all above the top in our guidance. The revenue from our smartphone program more than doubled year over year. Our annualized recurring revenue is up 30% year over year at an all-time record of more than half a billion dollars. Rich will go over all the numbers in detail in his section. The program we have made give us a very strong base from which to execute our strategy and drive long-term growth for the company. The long-term stable nature of our licensing agreement with over 90% of our revenue coming from long-term fixed fee agreements give us an incredible strong platform from which to invest in our research, share our innovations through licenses, and deliver shareholder value. As some of you may be aware, Weibo is a top 10 global smartphone manufacturer with significant market share, which ships over 100 million devices per year. Our new agreement with Weibo follows our new agreement with OPPO during the Q4 of last year. We now have seven of the top 10 largest smartphone vendors, and almost 80% of the entire global smartphone market under license. The waiver agreement also represents another significant step towards our goal of achieving $500 million in annual recurring revenue in our smartphone program by 2027. Adding to our recent momentum, at the start of second quarter, we also announced a new multi-year licensing agreement with HP, which licensed HP personal computers to our Wi-Fi and video decoding technologies. HP is one of the world's largest PC manufacturers. With this agreement, we have licensed more than 50% of the PC market. This is also another significant milestone as we keep on driving growth in our consumer electronics and IoT licensing program. I'm also pleased that both HP and VivoLicense, like the vast majority of our license agreement, was signed through amicable negotiation. With additional VIVO and HP contract, the cumulative total contract value that we have signed since 2021 is now more than $3.6 billion. As I mentioned in the prior earning call, we are in a binding arbitration to settle the final terms of our license with Samsung for mobile devices. The party finished all the hearing last October and we expect to have a final decision soon. As a reminder, Samsung already agreed to take a license to our portfolio starting from January 1st of 2023. And this binding arbitration will determine the final term of the license. In the first quarter, we built our strong track record of returning capital to shareholders by increasing our dividend from 45 cents to 60 cents per share. In fact, since Q3 of last year, we have increased our dividend by 50%. Our success in our licensing program is only possible because of the quality of research and the leadership of engineers across wireless, video, and AI. InterDigital is one of the few companies that leads in the development of foundational technology in all these three areas. In the first quarter, For the fourth year in a row, we were recognized by DEXA's Nexus as one of the world's top 100 innovators in analysis, which look at both the impact of our innovation today and its likely impact in the future. Our engineers are already closely involved in the early stage of 6G, which is beginning to take shape and which we believe will help to drive our growth across multiple verticals well into 2030s. Also in the first quarter, at Mobile World Congress in Barcelona, we showcase the way in which we drive evolution of wireless, video, and AI. At this year's event, senior engineers from each of our three labs demonstrate how our research is changing connectivity in areas like immersive video, sensing in wireless network, and the optimization of AI applications. In the first quarter, we also announced our two Inventors of the Year, with one from our Wireless Lab and the other from our Video Lab. We are a company of inventors, and as I tell our teams internally, our Inventor Year of the World is the most important accolades that we announce each year. Both of these years we know experienced engineers who have dedicated their career to make wireless networks smarter and more efficient. to improve connectivity in areas like IoT and XR, and to develop next-generation video through more advanced compression and wider deployment of AI. This dedication to research and our laser-focused technology that are foundational to how we connect, combined with our execution across our licensing programs, what continue to differentiate InterDigital and give us such a powerful platform for growth. And with that, I'll let Rich talk you through our first quarter numbers in more detail.