Xperi reported its third-quarter 2024 earnings, emphasizing growth in connected cars with DTS AutoStage and HD Radio. During the call, CEO Jon Kirchner highlighted additional and ongoing cost optimization efforts, divestitures, and focus on high-potential media platforms and licensing.
In the connected car segment, Xperi reported growth driven by DTS AutoStage, which is now deployed in over 8 million vehicles globally, including 5 million in North America that feature both DTS AutoStage and HD Radio. This comes one year after the company’s announcement that HD Radio receivers are now installed in over 100 million vehicles worldwide.
Despite signs of a softening automotive market, Xperi expects long-term growth opportunities as carmakers continue to integrate HD Radio into new models. The company also secured two new design wins for DTS AutoStage, including an agreement with an unnamed Japanese automotive OEM set to begin production next year.
Xperi’s Q3 revenue reached $133 million, a 2% year-over-year increase, which is up 6% when adjusted for divestitures. Cost reductions, including a headcount decrease and divestitures of non-core assets, contributed to an 18% decline in operating expenses. Xperi is on track with its goal to reach 20 million monetizable endpoints by the end of 2025, with 10 million expected in vehicles.
