Q3 2024 Dolby Laboratories Inc Earnings Call Transcript
Key Points
- Revenue for the quarter came in just above the midpoint of the range provided in the last earnings call, and earnings were above the high end of the range.
- Dolby Atmos and Dolby Vision are performing slightly ahead of expectations, driven by strong content growth and device attach rates.
- Significant milestones in content for Dolby Vision, with over 25,000 TV shows and movies available as of this spring.
- Momentum in automotive with new partnerships, including GM's Cadillac OPTIQ and Hyundai's Genesis, expanding Dolby Atmos to more models.
- Pending acquisition of GE licensing, which will strengthen and expand Dolby's patent offerings, particularly in imaging, and is expected to be accretive to operating margins and EPS in fiscal 2025.
- Full-year revenue is expected to be down approximately 1% to 2%, at the lower end of expectations.
- Foundational audio revenue is lower than expected due to soft global device sales, particularly in set-top boxes and gaming consoles.
- Cinema products are underperforming as the box office remains sluggish and exhibitors delay capital expenditures.
- Revenue guidance for the full year is skewing towards the lower end of what has been described as roughly flat all year.
- Consumer electronics revenue was down 18% year over year in the quarter, and broadcast revenue is expected to be down for the full year due to tough comparisons and lower set-top box revenue.
(audio in progress) (Operator Instructions) As a reminder, this call is being recorded Wednesday, August 7, 2024.
I would now like to turn the conference over to Mr. Peter Goldmacher, Vice President of Investor Relations. Peter, please go ahead.
Thank you, operator, and good afternoon, everyone. Welcome to Dolby Laboratories third quarter 2024 earnings conference call.
Joining me today are Kevin Yeaman, Dolby Laboratories' CEO, and Robert Park, our CFO.
As a reminder, today's discussion will include forward-looking statements, including our fiscal 2024 fourth quarter and full year outlook and our assumptions underlying that outlook. These statements are subject to risks and uncertainties that may cause actual results to differ materially from the statements made today, including, among other things, the impact of macroeconomic events, supply chain issues, inflation rates, changes in consumer spending and geopolitical instability on our business.
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