Xperi Inc.

question, press star 1 again. Thank you. I would now like to turn the call over to Mike Iberg, Head of Investor Relations. You may begin.

Thank you. Good afternoon, and thank you for joining us as Xperia reports its second quarter 2024 financial results. With me on today's call are John Kirchner, Chief Executive Officer, and Robert Anderson, Chief Financial Officer. In addition to today's earnings release, there is an earnings presentation which you can access along with this webcast on our investor relations website at investor.expery.com. Before we begin, I'd like to provide a few reminders. First, I would like to note that unless otherwise stated, all quarterly comparisons are to the same quarter in the prior year. Second, today's discussions 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 subject to risks, uncertainties, and changes in circumstances. For more 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 and MD&A section in our SEC filings, including our most recent Form 10-K and 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. Third, we refer to certain non-GAAP financial measures, which are detailed in the earnings release and accompanied by reconciliations to their most directly comparable GAAP measures, which can be found in the investor relations section of our website. Lastly, a replay of this conference call will be available on our website shortly after the conclusion of this call. I would now like to turn the call over to Xperia CEO, John Kirchner.

Thank you, Mike, and thank you, everyone, for joining us on our second quarter 2024 earnings call. Since our separation from Adia, we focused our efforts on a multi-year business transformation designed to drive revenue growth and margin expansions. Many of the steps we've taken and decisions we've made are now coming to fruition and yielding the positive results we expected. We've streamlined the product portfolio with the divestiture of AutoSense, providing greater alignment with our key growth markets and allowing us to benefit from the associated cost reductions. We've taken steps to remove organizational complexity, improve our systems, and simplify our processes, which has also contributed to improved profitability. These transformational actions have been accomplished while making targeted investments to support our strategic initiatives and achieving major milestones in key growth areas. Today, these initiatives better position the company for long-term success. In conjunction with this transformation effort and in preparation for our next cycle of growth, we've expanded our board of directors with the addition of Jeremy Gorman and Rob Randall two highly qualified candidates who have hit the ground running, adding value with their insights and expertise in ad tech, monetization, automotive, and capital allocation. I'll let Robert walk you through the financial details in just a moment, but let me first touch on a few highlights. Strong performance in connected car and IPTV were the highlights in the quarter. These were offset by the expected decline in consumer electronics due to the large number of multi-year deals closed last year, and media platform softness due to a unique initial ad buy last year. The net result was Q2 revenue of approximately $120 million, up 1% sequentially, and down 2% from the year-ago quarter when adjusting for the AutoSense divestiture, consistent with the commentary provided on our last call. Non-GAAP adjusted operating expense declined $15 million, or 15% from the prior year, due mainly to the recent divestiture and also from our ongoing cost optimization efforts. Adjusted EBITDA was $15 million, or 12% of revenue, nearly tripling, both sequentially and from the prior year quarter. We remain focused on three key growth opportunities where we see strong potential and differentiation. These are connected TV advertising, where we offer our TiVo media platform to power smart TVs and other broadband devices and monetize their usage. In-cabin entertainment, where DTS AutoStage combines broadcast, radio, internet metadata, and video to enhance the automotive experience and drive long-term monetization. And TiVo video over broadband, where we provide subscribers access to our industry-leading content-first streaming platform for broadband-only and IPTV linear households. Each of these markets is expected to roughly double over the next five to seven years. We continue to strengthen our position in each market and believe we're increasingly well positioned to grow our revenue as these markets expand. Consistent with past communications, our goal is to have 20 million monetizable endpoints by the end of 2025, consisting of approximately 10 million devices in the home and 10 million in cars. Breaking this down, we expect an active footprint of 7 million devices comprised of connected TVs and other broadband devices, including our video over broadband solutions, where ARPU comes from the viewing of ad-supported content and usage of our TiVo media platform. Additionally, we expect approximately 3 million IPTV households utilizing our video over broadband solution, where we primarily earn subscription revenue on a per household basis. Lastly, we expect to have DTS auto stage in 10 million cars, which we will monetize through license fees, upselling features, and advertising. We expect these 20 million monetizable endpoints to generate nearly $200 million of incremental revenue in 2026 relative to 2023. Let me walk you through some of our recent achievements that reflect our progress. Within Media Platform, we hosted a very successful industry launch event in London at the end of May, showcasing the TiVo operating system as well as our recently announced TiVo One cross-screen ad platform. The launch included a number of key partners, including OEMs, retailers, content providers, and advertisers. A video summary of the event is available on our Investor Relations website. A week after we reported earnings in May, Panasonic announced they were our sixth TiVo OS partner. We previously referred to Panasonic in our earnings materials as a Japanese global brand. Panasonic Smart TVs powered by TiVo are now available in Europe. More recently, we signed our seventh Smart TV partner to integrate TiVo OS into their Smart TV lineup. This latest partner is a top five supplier of smart TVs into the U.S. market with plans to launch TVs powered by TiVo in the U.S. next spring. Today, smart TVs powered by TiVo are available in 15 countries across Europe, including the largest economies under 17 different brands. Our TiVo OS production volumes are increasing with daily activations accelerating. At this stage of the rollout, our primary focus is to ensure maximum customer satisfaction and user engagement with these smart TVs powered by TiVo. Importantly, we're receiving data from activated units, allowing us to study consumer engagement and viewership behaviors and validate our ability to monetize ad-supported content. These initial steps will allow us to maximize platform value over time. Overall, we're encouraged by our progress and remain on track to achieve our year-end target of 2 million active connected devices. Within Connected Car, we saw continued positive momentum during the quarter. We were awarded a multi-year program with a major Asia-based Tier 1 automotive supplier to integrate our DTS subversive audio codec into their entertainment platform for planned deployment into millions of vehicles over the next several years. We continue to make progress in furthering HD radio penetration in the North American market as automotive OEMs, including Ford, General Motors, Audi, Volvo, Acura, Mazda, and Lotus incorporate HD radio into additional models. AutoStage is now deployed in more than 7 million vehicles worldwide, an increase of over a million cars in the last three months, and we expect this footprint to grow as automotive OEMs begin production of the 2025 models later this fall. The market for in-cabin entertainment is growing rapidly. Our near-term approach to this market is to take the steps necessary to expand our footprint and enhance end-user customer satisfaction and engagement, which we believe will strategically position us to maximize the long-term revenue potential. Within PayTV, video over broadband, our IPTV solution, continues to make steady progress, surpassing 2.25 million subscriber households in the quarter and rapidly closing in on our year-end target of 2.4 million subscribers. This is helping to offset the secular decline in some of our core pay TV solutions. Additionally, we expanded our relationship with three TiVo operators, Service Electric Cablevision, HTC, and Eastlink, by not only renewing our IPTV agreements, but also adding TiVo broadband. This brings the total number of TiVo broadband providers to 10 and significantly increases our available footprint of video over broadband active devices in both the U.S. and Canada. Lastly, within our legacy pay TV products, we sign classic guides renewals with Claro VTR and Liberty Latin America. These multi-year transactions are instrumental in ensuring the longevity of our legacy solutions. Turning to consumer electronics, We signed multiple license agreements with HP to integrate our DTS X decoder into the commercial division's laptops and PCs in addition to expanding their commitment to our headphone X solution for HP's HyperX brand. We also signed a license agreement with Tencent Music Entertainment to provide our DTS encoded content and post-processing technology to Tencent and QCube Music. And Play for Dream, a leading esports entertainment platform, has selected IMAX Enhanced with immersive sound from DTS for the virtual reality headset. With respect to Perceive, we remain in the process of evaluating strategic alternatives and we expect this review to be complete by the end of summer. Meanwhile, Perceive has significantly reduced its cash burn and remains on track to deliver technology to a big tech partner for product commercialization. Against our year-end objectives within Media Platform, we are now in the five largest European countries and expect to be in the U.S. market later this year. We announced our sixth TiVo OS partner last quarter and announced our seventh today, and we believe we're on track to have approximately 2 million active devices by year-end. Within Pay TV, we announced six additional TiVo broadband wins so far and are on track to add at least 10 this year. Our IPTV footprint currently stands at 2.25 million subscriber households. We expect to exceed our year-end target of 2.4 million subscribers. For connected car, we remain in active conversations on specific opportunities and expect to deliver three additional auto stage wins, with at least one including video by year-end. AutoStage is now deployed in over 7 million cars, and we will continue to drive our pipeline as aggressively as possible to expand the AutoStage footprint. In summary, we expect our operational progress, coupled with ongoing business transformation efforts, will allow us to achieve our profitability objectives in 2024 and accelerate growth and profitability in the years ahead. With that, I'll turn the call over to Robert to discuss our financials. Robert?