Dolby Q3 2021 earnings call notes - 7/29/21
- Comcast is broadcasting the Tokyo Olympics in DA/DV. They were later asked about new opportunities in live broadcasting and they indicated it is like a snowball effect, as broadcasters and individuals gain experience with events like the Olympics they take that with them to new events.
- Significant discussion on DA, it is expanding via the titles and artists using DA, in live broadcasts and music services, and seeing broad geographic expansion.
- Mobile gaming is expanding the opportunity for the use of DA/DV on the mobile side, both from the content side and from the gaming handsets being announced.
- DC has 95% of the current screens open globally. They believe DC's market share is increasing as customers opt for premium experiences.
- There is a new update to dolby.io rolling out. They indicated the new APIs would enable larger events. They didn't say if the new update included video.
- 172M in free cash flow in Q3, ended Q with 1.3B in cash. Answering a later question they said their strong cash flow is getting a bump from improving GM/OM, but in general it is a reflection of a strong biz model and solid growth. 37M left in stock repurchase auth. Added another 350M, new auth. is 387M.
- There was a trueup of 14M in Q3 from Q2.
- No update on new CFO search.
- In music, they are engaging with the auto OEMs in the manner Sirius/XM does to get their service in new cars. They have only announced Lucid, but believe the lead times in the auto industry have come down significantly in recent years, especially with electric autos. They think it can be as low as a year now.
- No update on DV penetration, but did indicate broad adoption across all markets.
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