InterDigital, Inc. (NASDAQ:IDCC) Q2 2023 Earnings Call Transcript August 3, 2023 10:00 AM ET

Company Participants

Raiford Garrabrant - Head of Investor Relations

Liren Chen - President & Chief Executive Officer

Richard Brezski - Chief Financial Officer

Conference Call Participants

Anja Soderstrom - Sidoti

Brian Chen - Jefferies

Operator

Good morning and thank you for standing by. Welcome to InterDigital Second Quarter 2023 Earnings Call. At this time all participants are in a listen-only. After the speaker’s presentation there will be a question-and-session. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Raiford Garrabrant, Head of Investor Relations. Please go ahead.

Raiford Garrabrant

Good morning to everyone, and welcome to InterDigital's Second Quarter 2023 Earnings Conference Call. I am Raiford Garrabrant, Head of Investor Relations for InterDigital. With me on today's call are Liren Chen, our President and CEO; and Richard Brezski, our CFO. Consistent with last quarter's call, we will offer some highlights about the quarter and the company and then open the call up for questions.

Before we begin our remarks, I need to remind you that in this call we will make forward-looking statements regarding our current beliefs, plans and expectations, which are not guarantees of future performance and are made only as of the date hereof. Forward-looking statements are subject to risks and uncertainties that could cause actual results and events to differ materially from results and events contemplated by such forward-looking statements. These risks and uncertainties include those described in the Risk Factors section of our 2022 Annual Report on Form 10-K and in our other SEC filings.

In addition, today's presentation may contain references to non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in our financial metrics tracker, which is available on the Investor Relations section of our website.

With that taken care of, I will turn the call over to Liren.

Liren Chen

Thank you, Raiford. Good morning, everyone. Thanks for joining us today. This was another strong quarter for the business. We added to our recent momentum once again demonstrated our ability to deliver stable recurring revenue and strong profitability, and continued our excellent track record of returning capital to shareholders.

Let me start with the status update on licensing. We continue to make solid progress in the smartphone space where we added a new licensee in Q2. In addition, we closed a new licensing agreement with Alps Alpine a specialist system and technology provider in the IoT and auto sector. In the first half of the year, our recurring revenue from the consumer electronics and IoT, including auto, increased by almost 20% year-over-year, once again highlighting how we are capitalizing the opportunities in multiple verticals. In addition, early in the third quarter, we added another new licensee from consumer electronics sector.