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TiVo (TIVO) Q4 Loss Narrows Y/Y, Revenues Beat Estimates
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TiVo Corporation’s fourth-quarter 2019 loss of $1.75 per share narrowed from the year-ago quarter’s loss of $2.33.
On a non-GAAP basis, earnings per share came in at 33 cents, compared with 22 cents in the year-ago quarter.
TiVo’s revenues of $175 million surpassed the Zacks Consensus Estimate of $169 million and improved 4% year over year. Increase in IP licensing revenue driven by new deals signed in New Media, International Pay TV was a key driver.
The company’s core revenues (excluding revenues from Legacy TiVo Solutions IP Licenses, Hardware and Other Products) of $171 million (97.7% of total) reflected a 6.3% decrease from the year-ago quarter.
Further, the company mentioned that the separation of its product division from its intellectual property (IP) licensing unit is on track and the split-up is likely to be completed in April 2020.
At the same time, management sounded very optimistic about its agreement to combine in an all-stock transaction with Xperi. The company believes that combining the respective product and IP business to operate as separate business units will put them in a stronger operating and competitive position.
Quarter in Detail
In terms of business segments, Product Revenues were down 5% to $91.7 million. This decline was primarily due to a decrease in consumer revenues attributed to an increase in the amortization period for product lifetime subscriptions and lower hardware sales. Lower Platform Solutions revenue from pay TV customers was also a downside.
Revenues from Platform Solutions decreased 8% to $68.6 million.
Additionally, revenues from Other products, primarily legacy analog ACP product, plunged 57% to $1.7 million. However, Software and Services improved 18% to $19.8 million, aided by new TV Viewership Data deals.
Core Product revenues (excluding revenues from Hardware and Other Products) fell 2% to $87.6 million.
IP Licensing Revenues increased 16% year over year to $83.5 million. Revenues from US Pay TV Providers, CE Manufacturers, and New Media, International Pay TV Providers and Other grew 11%, 19% and 24% to $47.2 million, $10.6 million and 425.7 million, respectively.
Adjusted EBITDA was up 45% from the year-ago quarter to $61.2 million due to higher IP licensing revenues and the company’s cost-saving initiatives.
TiVo exited the reported quarter with cash, cash equivalents and short-term marketable securities of $425 million compared with $276.7 million at the end of the previous quarter.
TiVo Corporation Price, Consensus and EPS Surprise
Long-term earnings growth rate for CEVA, SYNNEX and Silicon Motion is currently pegged at 20%, 10.37% and 7%, respectively.
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TiVo (TIVO) Q4 Loss Narrows Y/Y, Revenues Beat Estimates
TiVo Corporation’s fourth-quarter 2019 loss of $1.75 per share narrowed from the year-ago quarter’s loss of $2.33.
On a non-GAAP basis, earnings per share came in at 33 cents, compared with 22 cents in the year-ago quarter.
TiVo’s revenues of $175 million surpassed the Zacks Consensus Estimate of $169 million and improved 4% year over year. Increase in IP licensing revenue driven by new deals signed in New Media, International Pay TV was a key driver.
The company’s core revenues (excluding revenues from Legacy TiVo Solutions IP Licenses, Hardware and Other Products) of $171 million (97.7% of total) reflected a 6.3% decrease from the year-ago quarter.
Further, the company mentioned that the separation of its product division from its intellectual property (IP) licensing unit is on track and the split-up is likely to be completed in April 2020.
At the same time, management sounded very optimistic about its agreement to combine in an all-stock transaction with Xperi. The company believes that combining the respective product and IP business to operate as separate business units will put them in a stronger operating and competitive position.
Quarter in Detail
In terms of business segments, Product Revenues were down 5% to $91.7 million. This decline was primarily due to a decrease in consumer revenues attributed to an increase in the amortization period for product lifetime subscriptions and lower hardware sales. Lower Platform Solutions revenue from pay TV customers was also a downside.
Revenues from Platform Solutions decreased 8% to $68.6 million.
Additionally, revenues from Other products, primarily legacy analog ACP product, plunged 57% to $1.7 million. However, Software and Services improved 18% to $19.8 million, aided by new TV Viewership Data deals.
Core Product revenues (excluding revenues from Hardware and Other Products) fell 2% to $87.6 million.
IP Licensing Revenues increased 16% year over year to $83.5 million. Revenues from US Pay TV Providers, CE Manufacturers, and New Media, International Pay TV Providers and Other grew 11%, 19% and 24% to $47.2 million, $10.6 million and 425.7 million, respectively.
Adjusted EBITDA was up 45% from the year-ago quarter to $61.2 million due to higher IP licensing revenues and the company’s cost-saving initiatives.
TiVo exited the reported quarter with cash, cash equivalents and short-term marketable securities of $425 million compared with $276.7 million at the end of the previous quarter.
TiVo Corporation Price, Consensus and EPS Surprise
TiVo Corporation price-consensus-eps-surprise-chart | TiVo Corporation Quote
2019 Highlights
TiVo reported revenues of $668.1 million in 2019, down 4% year over year.
Licensing, services and software accounted for 98.6% of TiVo’s 2019 total revenues while Hardware contributed 1.4%.
Guidance
For 2020, TiVo expects revenues in the range of $650-$690 million. Adjusted EBITDA is anticipated between $230 million and $260 million.
Zacks Rank and Stocks to Consider
TiVo currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader technology sector are CEVA, Inc. (CEVA - Free Report) , SYNNEX (SNX - Free Report) and Silicon Motion Technology Corporation (SIMO - Free Report) , all sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for CEVA, SYNNEX and Silicon Motion is currently pegged at 20%, 10.37% and 7%, respectively.
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
See 5 Stocks Set to Double>>