|Q4 Notes highlights - |
I have many pages of notes, much of which I do not yet understand fully. This will be highlights that stuck out to me, I hope to re-visit these notes in the near future, ie expand on them.
- There is a lot of timing in the quarterly revenue, big moves QoQ and Q3(ending June) is apparently the big quarter and a tough comparison. That will continue in 2018.
- Quarterly dividend goes from .14 to .16.
- They emphasized they are going from 5% revenue growth to a range of 5%-8%, and their goal is double digit revenue growth on an ongoing basis.
- +$70M in cash flow in Q4, over $1.1B in cash, bought back 490K shares and have plenty of room on existing auth.
- Lot of discussion on each product category and the new customers and titles in each. Audio progress in India, China, and Indonesia.
- New initiatives growth doubled in 2017, from $30M to $60M, and will double again in 2018. I believe this is Dolby Vision, Atmos, and Cinema, but am not certain.
- They believe they exited 2017 with 35-40% marketshare for DV in the premium TV segment, but are seeing SKUs being added in higher volume segments. They get paid on volume and not generally tied to price, an indication to me these numbers can ramp significantly in the near term.
- Positive discussions with all their mobile partners to expand DV, Apple was a big step forward in their goal of expanding into handsets(from TVs) but they have a long way to go, early days.
- Layoff and charge was an ongoing review of resource allocation, especially with new initiatives seeing such rapid growth. That is their focus.
- Sound bar penetration(Atmos) is a dozen(I think, 10 or 12), at the premium +$500 level.
- Dolby Cinema is a revenue sharing model. Same expansion in 2018 as 2017 in absolute numbers, but I am a little unclear which numbers to use. One is they went from 40 to 140(theaters or screens?), another is 360 open or committed(screens?). They have 140 open or committed screens in China.
- All areas of the new initiatives grew within that doubling this year and next, but not breaking it out.
- They consider HDR10+ as a confirmation of using metadata, believe DV has a big head start, the ecosystem is expanding rapidly while HDR10+ is still developing. They also believe DV is a superior product and tailors the delivery to the TV's specs.