|Dolby Q1 2021 earnings call notes - 1/28/21|
- Q1 rev $389.9M vs 330M-360M guide. gaap eps 1.30 vs .70-.85 guide. non-GAAP 1.48 vs
.97-1.12 guide. GAAP eps includes a pre-tax 13.9m gain from sale of a property and a 10m charge for inventory and severance due to exiting the conferencing business.
- Q2 rev guide 280m-310m vs prior 270m-300m, due to increase in TAM and not timing. This puts 1H rev guide at 670m-700m. They expect 2H somewhere in the mid-high 500M's, due to timing and seasonality. They did see some revenue they expected in 2H land in Q1, maybe 15m-20m. There was also a true-up of +20m in Q1.
- Highlights in revenue by market were in broadcast and mobile, both on YoY and QoQ basis. Mobile was up 170% QoQ and 200% YoY. They attributed the majority of the gain to timing of a customer, likely Apple.
- $82M cash flow, cash up to $1.2B. Bough back 500K shares and have $147M remaining on their existing share repurchase auth.
- They attributed 2H lower than 1H due to lower TAM, timing, and pace of cinema recovery looking slower, offset by increasing adoption. Listed a wide variety of customer wins, new products adopting Dolby tech, new opportunities in music and gaming in content and products, and increased dolby.io support. There were several questions about dolby.io, the analysts seem very interested in this area. It relates to a lot of areas that expanded during the pandemic, like teacher/student interaction and workplace interaction. Also used to clean up user created audio in the cloud.
- Did not add any detail on DV penetration, but re-iterated it reached mid to high teens % of the 4k tv market in 2020.
- 12 new DC screens including Q1 in Taiwan. As IMAX also reported, DC is gaining market share in China vs vanilla tickets.