Adeia Inc. (NASDAQ:ADEA) Q3 2023 Earnings Call Transcript

Adeia Inc. (NASDAQ:ADEA) Q3 2023 Earnings Call Transcript November 11, 2023

Operator: Good day, everyone. Thank you for standing by. Welcome to Adeia's Third Quarter 2023 Earnings Conference Call. [Operator Instructions] I would like to now turn the call over to Chris Chaney, Vice President of Investor Relations for Adeia. Chris, please go ahead.

Chris Chaney: Good afternoon, everyone. Thank you for joining us as we share with you details of our third quarter 2023 financial results. With me on the call today are Paul Davis, our President and CEO; and Keith Jones, our CFO. Paul will share with you some general observations regarding our third quarter. And then Keith will give further details on our financial results and guidance. We will then conclude with a question-and-answer period. In addition to today's earnings release, there is an earnings presentation, which you can access along with the webcast in the IR portion of our website. Before I turn the call over to Paul, I would like to provide a few reminders. First, today's discussion 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.

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For more information on the risks and uncertainties that could cause our actual results to differ materially from what we discuss today, please refer to the Risk Factors section in our SEC filings, including our annual report on Form 10-K and our quarterly report on Form 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. To enhance investors' understanding of our ongoing economic performance, we will discuss non-GAAP information during this call. We use non-GAAP financial measures internally to evaluate and manage our operations. We have, therefore, chosen to provide this information to enable you to perform comparisons of our operating results as we do internally.

We have provided reconciliations of these non-GAAP measures to the most directly comparable GAAP measures in the earnings release, the earnings presentation and on the Investor Relations section of our website. A recording of this conference call will be available on the Investor Relations website at adeia.com. Now I'd like to turn the call over to our CEO, Paul Davis.

Paul Davis: Thank you, Chris, and thank you, everyone, for joining us today. During the third quarter, our strong deal momentum continued as we signed 7 agreements with customers in consumer electronics, pay TV, OTT and semiconductor. We delivered strong financial results with $101.4 million in revenue and a non-GAAP operating margin of 69%. In addition, we continue to deleverage our balance sheet as we paid down $15.1 million on our term loan. We are happy to announce we also strengthened our executive team, with Jarl Berntzen joining as our Chief Corporate Development Officer. And we announced today, we appointed Phyllis Turner Brem as an independent director to expand the depth and breadth of the IP experience on our Board.

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