InterDigital Inc (IDCC) 2024 Q3 法說會逐字稿

Good day, and thank you for standing by. Welcome to the InterDigital, Inc. third quarter 2024 earnings call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Raiford Garrabrant, Head of Investor Relations. Please go ahead.

美好的一天，感謝您的支持。歡迎參加 InterDigital, Inc. 2024 年第三季財報電話會議。（操作員指示）請注意，今天的會議正在錄製中。現在我想將會議交給今天的第一位發言人，投資者關係主管 Raiford Garrabrant。請繼續。

Thank you, Grace, and good morning, everyone. Welcome to InterDigital's third quarter 2024 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 Rich Brezski, our CFO. Consistent with prior calls, we will offer some highlights about the quarter and the company and then open the call up for questions.

謝謝你，格蕾絲，大家早安。歡迎參加 InterDigital 2024 年第三季財報電話會議。我是 Raiford Garrabrant，InterDigital 投資者關係主管。與我一起參加今天電話會議的是我們的總裁兼執行長陳立人；和我們的財務長 Rich Brezski。與先前的電話會議一致，我們將提供有關本季度和公司的一些亮點，然後開始電話提問。

For additional details, you can access our earnings release and a slide presentation that accompany this call on our Investor Relations website. 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.

如需了解更多詳細信息，您可以在我們的投資者關係網站上訪問我們的收益發布和本次電話會議隨附的幻燈片演示。在我們開始發言之前，我需要提醒您，在本次電話會議中，我們將就我們當前的信念、計劃和期望做出前瞻性聲明，這些聲明不是對未來業績的保證，並且僅在本次電話會議中做出。

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 2023 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.

前瞻性陳述存在風險和不確定性，可能導致實際結果和事件與此類前瞻性陳述預期的結果和事件有重大差異。這些風險和不確定性包括我們 10-K 表 2023 年年度報告的風險因素部分以及我們其他 SEC 文件中所述的風險和不確定性。此外，今天的演示可能包含對非公認會計準則財務指標的引用。

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the supplemental materials posted to the Investor Relations section of our website.

這些非公認會計原則財務指標與最直接可比較的公認會計原則財務指標的調節包含在我們網站投資者關係部分發布的補充資料中。

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

處理完之後，我會把電話轉給立人。

Thanks, Raiford. Good morning, everyone. Thanks for joining us today. I'm very pleased to share that we have delivered a strong third quarter with revenue, adjusted EBITDA, and EPS all exceeding the high end of our guidance range.

謝謝，雷福德。大家早安。感謝您今天加入我們。我很高興地告訴大家，我們第三季業績強勁，營收、調整後 EBITDA 和每股盈餘都超過了我們指引範圍的高端。

Driven by accelerating momentum of our business and major deals completed at the beginning of Q4, we have also raised our 2024 annual guidance by $145 million at midpoint to $860 million. To start, as some of you may have already seen a couple of days ago, we announced that we signed a new license with OPPO Group, covering the worldwide sales of OPPO, Realme, and OnePlus branded mobile devices.

在我們的業務成長動能和第四季初完成的重大交易的推動下，我們還將 2024 年年度指引中位數上調了 1.45 億美元，達到 8.6 億美元。首先，正如幾天前你們可能已經看到的那樣，我們宣布與 OPPO 集團簽署了新的許可證，涵蓋 OPPO、Realme 和 OnePlus 品牌行動裝置的全球銷售。

As part of the agreement, both parties agreed to dismiss all pending litigations between us. Based in China, OPPO Group is one of the largest smartphone manufacturers in the world. With this agreement, combining with our existing licenses with Samsung, Apple, and Xiaomi, we now have the top four smartphone OEMs under license and have licensed about 70% of the smartphone devices globally.

作為協議的一部分，雙方同意駁回我們之間所有未決訴訟。OPPO 集團總部位於中國，是全球最大的智慧型手機製造商之一。透過該協議，加上我們與三星、蘋果和小米的現有許可，我們現在擁有四大智慧型手機 OEM 廠商的許可，並獲得了全球約 70% 的智慧型手機設備的許可。

This agreement provides more validation of the importance of our foundational innovations in wireless, video, and AI, and the strength of our patent portfolio to drive our future growth. It also accelerates the momentum we continue to build across all our licensing programs as we work to license the remaining major smartphone vendors, drive more growth from consumer electronic, IoT, and auto and address our greenfield opportunity in video services.

該協議進一步驗證了我們在無線、視訊和人工智慧方面基礎創新的重要性，以及我們的專利組合推動我們未來成長的實力。它還加速了我們繼續在所有許可計劃中建立的勢頭，因為我們致力於向剩餘的主要智慧型手機供應商提供許可，推動消費電子、物聯網和汽車的更多成長，並抓住我們在視訊服務領域的綠地機會。

Turning now to our performance in the third quarter, I'm pleased to share that we delivered revenue of about $129 million, exceeding the top end of our guidance. Rich will go over the numbers in more detail in his section. We delivered a strong performance in Q3, mainly from the growth from our consumer electronic and IoT licensing program.

現在談談我們第三季的業績，我很高興地告訴大家，我們實現了約 1.29 億美元的收入，超過了我們指導的上限。里奇將在他的部分中更詳細地討論這些數字。我們在第三季取得了強勁的業績，主要得益於我們的消費性電子和物聯網授權計畫的成長。

Our new licensing agreement with TPV, a top 10 television vendor that sells devices and several different brands are an excellent example of our recent success in closing deals with leading CE manufacturers. The agreements include both our joint licensing program with Sony and InterDigital's valuable HEVC video assets.

我們與 TPV（銷售設備和多個不同品牌的十大電視供應商）簽訂的新授權協議是我們最近成功與領先的消費性電子製造商達成交易的一個很好的例子。這些協議包括我們與索尼的聯合許可計劃以及 InterDigital 寶貴的 HEVC 視訊資產。

In the third quarter, we also signed a new agreement with Panasonic, which covers our 4G and 5G cellular patents as well as our Wi-Fi and HEVC patents. Staying on the licensing front, as I mentioned earlier, we are off to a great start at the beginning of Q4. In addition to the OPPO agreement, we have signed a binding global arbitration agreement to set the terms of a new license agreement with Lenovo.

第三季度，我們也與松下簽署了一項新協議，涵蓋我們的4G和5G蜂窩專利以及Wi-Fi和HEVC專利。正如我之前提到的，在許可方面，我們在第四季度初取得了良好的開端。除了 OPPO 協議外，我們還與聯想簽署了具有約束力的全球仲裁協議，以製定新許可協議的條款。

As part of arbitration agreement, both parties have also agreed to dismiss our pending litigations. As we have said before, binding arbitration can be an excellent mechanism for settling global licensing disputes, providing a more efficient way of reaching an agreement.

作為仲裁協議的一部分，雙方也同意駁回我們的未決訴訟。正如我們之前所說，具有約束力的仲裁可以成為解決全球授權糾紛的絕佳機制，提供更有效的達成協議方式。

We expect the process to take roughly 18 months to complete. As you may recall, we are in a binding arbitration to settle the final terms of our licensing with Samsung for mobile devices. The parties just finished last round of hearings and we expect to have a final decision soon after the end of the year. As a reminder, Samsung already agreed to take a license to our portfolio starting from January 1, 2023.

我們預計該過程大約需要 18 個月才能完成。您可能還記得，我們​​正在進行具有約束力的仲裁，以解決我們與三星行動裝置授權的最終條款。雙方剛結束了最後一輪聽證會，我們預計將在年底後做出最終決定。謹此提醒，三星已同意從 2023 年 1 月 1 日起獲得我們產品組合的許可。

And this binding arbitration will determine the final terms of the license. Our licensing success further strengthens our ability to reinvest in cutting-edge R&D and foster innovation for next-generation technology that benefits the whole industry and billions of consumers in the future. Our engineering and patent team continue to fire on all cylinders.

此次具有約束力的仲裁將決定許可的最終條款。我們的授權成功進一步增強了我們對尖端研發進行再投資的能力，並促進下一代技術的創新，從而在未來造福整個產業和數十億消費者。我們的工程和專利團隊繼續全力以赴。

We keep on adding to our leadership in advanced video technology, such as HEVC and VVC and our video engineers on track for a record year in new invention filings. Our position at the cutting edge of video innovation was recognized at a recent award ceremony hosted at this year's International Broadcasting Convention, where we received awards for the best immersive video technology and for best video processing technology.

我們不斷增強在 HEVC 和 VVC 等先進視訊技術方面的領先地位，並且我們的視訊工程師在新發明申請方面有望創下新紀錄。我們在視訊創新前沿的地位在今年國際廣播大會最近舉辦的頒獎典禮上得到了認可，我們獲得了最佳沉浸式視訊技術和最佳視訊處理技術獎。

Both awards demonstrate why we believe our innovation will remain central to the video space, including consumer electronics, in streaming, and in new more immersive video experiences. The amount of video data consumed globally continues to increase every day, making our innovation even more critical in ensuring that end-to-end content distribution system works efficiently and reliably.

這兩個獎項都證明了為什麼我們相信我們的創新將仍然是視訊領域的核心，包括消費性電子產品、串流媒體和新的更身臨其境的視訊體驗。全球消耗的視訊資料量每天都在持續增加，這使得我們的創新對於確保端到端內容分發系統高效可靠地工作變得更加重要。

In wireless, our innovation pipeline are also growing at an impressive rate, including a record number of 5G invention declared this year, bringing our total patent and applications declared as potentially essential to 5G, 4G, and 3G to just over 13,000. For a company focused on driving foundational research, this constant creation of new invention is the engine that drives our business growth for years to come.

在無線領域，我們的創新管道也以驚人的速度成長，包括今年宣布的 5G 發明數量創歷史新高，使我們宣布對 5G、4G 和 3G 潛在重要的專利和應用總數超過 13,000 項。對於一家專注於推動基礎研究的公司來說，不斷創造新發明是推動我們未來幾年業務成長的引擎。

Recently, we are ranked among the top five patent owners in Wi-Fi when analyzed in terms of quantity and quality in a new report from LexisNexis. Across three separate reports from LexisNexis, we are one of just three companies in the world to rank in the top five in 5G, Wi-Fi, and advanced video compression when judged on both size and quality of our portfolio.

最近，在 LexisNexis 的一份新報告中，根據數量和品質進行分析，我們在 Wi-Fi 專利擁有者中名列前五名。根據 LexisNexis 的三份獨立報告，根據我們產品組合的規模和品質來判斷，我們是全球僅有的三家在 5G、Wi-Fi 和高級視訊壓縮領域排名前五的公司之一。

As the world becomes more connected, we believe this puts us in a very powerful position to continue to drive more growth of our business. During our Investor Day in September, we announced a target of $1 billion in annual recurring revenue by 2030, including a target of $500 million in annual recurring revenue for our smartphone program by 2027.

隨著世界變得更加互聯，我們相信這使我們處於非常有利的地位，可以繼續推動我們業務的進一步成長。在 9 月的投資者日期間，我們宣布了 2030 年實現年度經常性收入 10 億美元的目標，其中包括 2027 年智慧型手機專案年度經常性收入達到 5 億美元的目標。

Our new license agreement with OPPO and arbitration agreement with Lenovo represents excellent progress towards those targets. In summary, we are a recognized leader in technology like 5G, video, Wi-Fi, and AI, which are only becoming more critical to devices and services in multiple industries.

我們與 OPPO 的新許可協議以及與聯想的仲裁協議表明我們在實現這些目標方面取得了巨大進展。總而言之，我們是 5G、視訊、Wi-Fi 和人工智慧等技術領域公認的領導者，這些技術對於多個行業的設備和服務只會變得越來越重要。

We have a world-class team and a track record of superb execution. With the large addressable markets, including smartphone, CE, and IoT, and our greenfield opportunity in cloud-based video services, we believe we have a clear path to drive significant growth going forward. And with that, I'll hand you over to Rich.

我們擁有世界一流的團隊和卓越執行力的記錄。憑藉智慧型手機、消費電子和物聯網等龐大的潛在市場，以及我們在基於雲端的視訊服務方面的綠地機會，我們相信我們有一條明確的道路來推動未來的顯著成長。這樣，我就把你交給里奇了。

Thanks, Liren. I'm pleased to share that in Q3, we again delivered excellent results with revenue, adjusted EBITDA, and non-GAAP EPS exceeding the high end of our guidance range. These excellent Q3 results were driven by new license agreements signed in Q3 as well as the resolution of outstanding litigation.

謝謝立仁。我很高興與大家分享，在第三季度，我們再次取得了出色的業績，收入、調整後 EBITDA 和非 GAAP 每股收益均超過了我們指導範圍的高端。第三季的出色業績得益於第三季簽署的新授權協議以及未決訴訟的解決。

Our Q3 agreements, together with our Q4 OPPO license agreement and Q4 Lenovo arbitration agreement, have also resulted in us increasing our full year revenue guidance to $860 million. This is a 20% or $145 million increase from our prior guide. I'll cover our forward-looking guidance in a moment.

我們第三季的協議，加上第四季的 OPPO 授權協議和第四季的聯想仲裁協議，也導致我們將全年營收指引提高至 8.6 億美元。這比我們之前的指南增加了 20%，即 1.45 億美元。我稍後將介紹我們的前瞻性指導。

But getting back to Q3, total revenue of $129 million was well above our outlook of $94 million to $98 million. Our Q3 '24 revenue included recurring revenue of $99 million and catch-up revenue of $30 million. As Liren mentioned, our new license agreements with TPV, a top 10 TV manufacturer were leading contributors to our better-than-expected results.

但回到第三季度，總營收 1.29 億美元遠高於我們預期的 9,400 萬至 9,800 萬美元。我們 24 年第三季的收入包括 9,900 萬美元的經常性收入和 3,000 萬美元的追趕收入。正如立人所提到的，我們與排名前十的電視製造商冠捷簽訂的新授權協議是我們業績優於預期的主要貢獻者。

And through the end of Q3, CE and IoT continued to be our fastest-growing program with revenue up 15% year over year. On a year over-year basis, Q3 total revenue decreased primarily due to lower catch-up revenue in Q3 '24 and the expiration of the Huawei agreement at the end of 2023.

截至第三季末，CE 和 IoT 仍然是我們成長最快的項目，營收年增 15%。與去年同期相比，第三季總營收下降，主要是由於 24 年第三季追趕營收下降以及華為協議於 2023 年底到期。

Our adjusted EBITDA for the quarter of $65 million meaningfully exceeded our outlook range of $36 million to $39 million. Non-GAAP EPS came in at $1.63 per share compared to our outlook of $0.70 to $0.80 per share. Cash generation was very strong in the quarter with cash from operations of $78 million and free cash flow of $65 million.

我們調整後的本季 EBITDA 為 6,500 萬美元，大大超出了我們 3,600 萬至 3,900 萬美元的預期範圍。非 GAAP 每股收益為 1.63 美元，而我們的預期為每股 0.70 美元至 0.80 美元。本季現金產生非常強勁，營運現金為 7,800 萬美元，自由現金流為 6,500 萬美元。

As a result, we ended the quarter with over $800 million in cash. Stepping back for a moment, I'd like to reiterate some of the key points from our recent Investor Day that illustrate why we believe we are well-positioned to drive value going forward. First, our innovation engine is running strong and powers three pillars of growth.

結果，本季結束時我們擁有超過 8 億美元的現金。退後一步，我想重申一下最近投資者日的一些要點，這些要點說明了為什麼我們相信我們處於有利地位，可以推動價值向前發展。首先，我們的創新引擎運轉強勁，為三大成長支柱提供動力。

As Liren mentioned, we are one of just three companies in the world to be ranked by LexisNexis among the top five patent holders in each of 5G, Wi-Fi, and advanced video compression. This portfolio of innovation drives our growth toward our long-term annual recurring revenue target of $1 billion across smartphone, consumer electronics, and IoT as well as video streaming.

正如立人所提到的，我們是全球僅有的三家被 LexisNexis 評為 5G、Wi-Fi 和高級視訊壓縮專利持有者前五名的公司之一。這項創新組合推動我們在智慧型手機、消費性電子產品、物聯網以及視訊串流領域實現 10 億美元的長期年度經常性收入目標。

Second, the operational leverage inherent in our business enables the growth to translate into margin expansion and strong cash flow. Our long-term target includes an adjusted EBITDA margin of 60%, equating to $600 million of adjusted EBITDA. Third, our financial strength and capital allocation philosophy allow us to reinvest for growth, while also returning a significant amount of cash to shareholders.

其次，我們業務固有的營運槓桿使成長能夠轉化為利潤率擴張和強勁的現金流。我們的長期目標包括 60% 的調整後 EBITDA 利潤率，相當於 6 億美元的調整後 EBITDA。第三，我們的財務實力和資本配置理念使我們能夠進行再投資以實現成長，同時也向股東返還大量現金。

In 2024, we have paid roughly $225 million to reduce our debt and return capital to shareholders, including repurchasing 2.5% of our outstanding share count since the beginning of the year, and a 13% increase to our dividend, which we announced last month.

到 2024 年，我們已支付約 2.25 億美元來減少債務並向股東返還資本，包括回購年初以來已發行股票的 2.5%，以及我們上個月宣布的股息增加 13%。

We discussed all of these points at our Investor Day this September. In the short time since, we have delivered meaningful progress against these targets. Specifically, as a result of recent agreements with OPPO and Lenovo, we have raised the midpoint of our 2024 revenue guidance by $145 million to $860 million.

我們在今年九月的投資者日討論了所有這些要點。此後不久，我們在實現這些目標方面取得了有意義的進展。具體來說，由於最近與 OPPO 和聯想達成的協議，我們將 2024 年收入指導中位數上調了 1.45 億美元，達到 8.6 億美元。

This includes our expectation for a record level of recurring revenue for Q4 of approximately $118 million from existing agreements, equating to an ARR of roughly $470 million, an increase of more than $80 million in ARR. It's important to highlight that despite the significant increase in expected revenue, our expected expense level has not changed that much and in fact, remains within the prior range.

這包括我們對現有協議中第四季經常性收入約 1.18 億美元創紀錄水準的預期，相當於 ARR 約 4.7 億美元，ARR 增加超過 8,000 萬美元。需要強調的是，儘管預期收入大幅增加，但我們的預期費用水準並未發生太大變化，事實上仍保持在先前的範圍內。

As a result, we expect the increase in revenue will mostly flow through to adjusted EBITDA, driving our expectations for full year 2024 adjusted EBITDA to $538 million with a 63% margin at the midpoint. As a final point of clarification, this updated full year guidance is based only on contracts we have signed to date. With two months remaining in the year, any new agreements would be additive to this guidance. With that, I'll turn it back to Raiford.

因此，我們預期營收的成長將大部分轉化為調整後 EBITDA，推動我們對 2024 年全年調整後 EBITDA 的預期達到 5.38 億美元，中點利潤率為 63%。最後需要澄清的是，更新後的全年指導僅基於我們迄今為止簽署的合約。距離今年還剩兩個月，任何新協議都將成為本指南的補充。有了這個，我會把它轉回給雷福德。

Thanks, Rich. Before we move to Q&A, I'd like to mention that we'll be attending a number of investor events in Q4, including the RBC Tech Conference and the ROTH Tech Conference, both in New York. Please reach out to your representatives at those firms if you'd like to schedule a meeting. Now we are ready to take questions.

謝謝，里奇。在進行問答之前，我想提一下，我們將參加第四季度的一系列投資者活動，包括在紐約舉行的 RBC 技術會議和 ROTH 技術會議。如果您想安排會議，請聯絡您在這些公司的代表。現在我們準備好回答問題了。

(Operator Instructions) Scott Searle, ROTH Capital Partners.

（操作員說明）Scott Searle，ROTH Capital Partners。

Congratulations on the quarter. Congratulations on getting OPPO done. I know this one has been a long time coming.

恭喜本季。恭喜 OPPO 完成。我知道這個已經等了很久了。

Thanks, Scott.

謝謝，斯科特。

Liren and Rich, maybe just to dive in on the fourth quarter guidance, it sounds like, certainly, you have OPPO in there from a recurring revenue standpoint, TPV. But I want to get some clarifications in terms of what you're doing from a Lenovo standpoint, given that it's in an arbitration process, are you going to be recognizing some revenue like Samsung?

Liren 和 Rich，也許只是為了深入了解第四季度的指導，從經常性收入的角度來看，聽起來當然有 OPPO，TPV。但我想從聯想的角度澄清一下你們正在做的事情，考慮到它正處於仲裁過程中，你們會像三星一樣確認一些收入嗎？

And I thought you said in your opening remarks that Samsung, you expect the resolution or disclosure of the arbitration after the first of the year. Just wanted to clarify that and if there's any Samsung in that recurring number that you talked about of $118 million?

我想您在開場白中表示，三星希望在今年年初之後解決或披露仲裁。只是想澄清一下，您提到的 1.18 億美元的經常性數字中是否有三星的身影？

Yeah, Scott. So I'll take the first part of the question. Yeah, our Q4 guidance does include revenue from OPPO, the new agreement we signed there in Q4 as well as from Lenovo based on the arbitration agreement we signed there in Q4 as well. So similar to Samsung, the terms will be set through the arbitration process. So at the moment, under our accounting rules, we're booking revenue based on what we believe is a conservative estimate.

是的，斯科特。所以我將回答問題的第一部分。是的，我們第四季度的指導確實包括來自 OPPO 的收入、我們第四季度在那裡簽署的新協議以及基於我們第四季度在那裡簽署的仲裁協議的聯想的收入。與三星類似，條款將透過仲裁程序確定。因此，目前，根據我們的會計規則，我們根據我們認為保守的估計來登記收入。

Yeah. Hey Scott. Good morning. So let me follow up on the Samsung arbitration question. So you are correct that I did say in my prepared remarks, that based on the latest hearing we had with the arbitrator we believe the result of the arbitration will be completed soon after end of the year. The primary reason is there are some additional questions that arbitrator was asking and plus as we approach the holiday season.

是的。嘿斯科特。早安.那我來跟進一下三星仲裁問題。所以你說得對，我在準備好的發言中確實說過，根據我們與仲裁員舉行的最新聽證會，我們相信仲裁結果將在今年年底後很快完成。主要原因是仲裁員也提出了一些其他問題，而且隨著假期臨近，仲裁員也提出了一些其他問題。

So we fact this will take a bit longer. Regarding the revenue recognition, as you are aware, we have been recognizing Samsung revenue under the conservative estimation, the same as the prior agreement which we believe is conservative. And that's the case we continue to do for Q4 and when the arbitration is complete, if the number turns out to be higher, then we will true up the number at the time of the award.

所以我們事實上這將需要更長的時間。關於收入確認，如您所知，我們一直在保守估計下確認三星收入，與我們認為保守的先前協議相同。這就是我們在第四季度繼續做的情況，當仲裁完成時，如果數字更高，那麼我們將在裁決時調整該數字。

Great. Very helpful. And if I could, Rich, on the litigation front, it was down a little bit your cost this quarter. But now that we've got resolution on some of your major cost factors, Lenovo going to arbitration and OPPO resolution litigation dropping, how should we think about that number going forward and into 2025?

偉大的。非常有幫助。里奇，如果我可以的話，在訴訟方面，本季您的成本會下降一點。但既然我們已經解決了一些主要成本因素，聯想將提起仲裁，OPPO 解決訴訟也已減少，那麼我們應該如何看待未來以及 2025 年的數字？

Yeah. So Scott, I don't want to comment on details of our expense items other than to say that our current expectations for litigation expense are baked into our guidance for the fourth quarter.

是的。因此，斯科特，我不想評論我們的費用項目的細節，只是想說我們目前對訴訟費用的預期已納入我們第四季度的指導中。

Got you. Fair enough. And lastly, if I could. Liren just on the video services, there's streaming opportunity. I'm wondering if you could just outline some broad steps and milestones as we go forward. I know this continues to be an evolutionary process. But maybe give us an update in terms of the level of engagement, anticipation and kind of what we should be looking forward to in 2025?

明白你了。很公平。最後，如果可以的話。立人只是在視訊服務上，有串流媒體的機會。我想知道您是否可以概述我們前進的一些主要步驟和里程碑。我知道這仍然是一個進化的過程。但也許可以為我們介紹一下參與程度、預期以及 2025 年我們應該期待什麼方面的最新情況？

Thanks, Scott. First of all, we believe video services is a great opportunity for us. As a matter of fact, we believe it's one of the largest greenfield opportunities for us. We, as a company, has been working on this for multiple years. We always start with innovation, which we believe our video codec assets and others are very critical to the overall service level and which frankly others has benefited from quite a bit.

謝謝，斯科特。首先，我們認為視訊服務對我們來說是一個很好的機會。事實上，我們相信這對我們來說是最大的綠地機會之一。作為一家公司，我們多年來一直致力於此。我們始終從創新開始，我們相信我們的視訊編解碼器資產和其他資產對於整體服務水準非常關鍵，坦白說，其他人也從中受益匪淺。

We have been engaging in the field. We have a dedicated team. We are engaging with all the major players but it is hard to predict the precise timing when we get the deals done. But Scott, we have demonstrated over the years, we always prefer bilateral negotiations. We will try to negotiate and we are quite patient and try to drive the fair value for our assets.

我們一直致力於該領域。我們有一支敬業的團隊。我們正在與所有主要參與者進行接觸，但很難預測我們完成交易的確切時間。但斯科特，多年來我們已經證明，我們始終更喜歡雙邊談判。我們將嘗試進行談判，我們非常有耐心，並努力提高我們資產的公允價值。

But in the meantime, though, as you are aware, we are always ready to defend the value of our patent portfolio if we have to. So this is partially why when we get into litigation planning, we always spend a certain amount of money to get ready if we have to.

但同時，正如您所知，如果有必要，我們隨時準備捍衛我們專利組合的價值。因此，這就是為什麼當我們進行訴訟計劃時，如果有必要的話，我們總是會花費一定的資金來做好準備。

Congrats on the quarter and OPPO.

恭喜本季和 OPPO。

Thanks.

謝謝。

Thanks, Scott.

謝謝，斯科特。

Arjun Bhatia, William Blair.

阿瓊·巴蒂亞，威廉·布萊爾。

Great. Congrats guys on getting the Oppo and Lenovo deals done. Nice to see that. Maybe Liren, actually starting off on that point for you. Obviously, these are significant deals for InterDigital. When you think about how this might impact your future opportunities to get licenses signed with the remaining Chinese manufacturers, what kind of impact are you expecting there? Does it kind of speed up the process with Huawei and Vivo? Or is it maybe a little bit too early to tell what that impact might be?

偉大的。恭喜大家完成了 Oppo 和聯想的交易。很高興看到這一點。也許立人，實際上是從這一點開始為你服務的。顯然，這些交易對 InterDigital 來說意義重大。當您考慮這可能會如何影響您未來與其餘中國製造商簽署許可的機會時，您預計會產生什麼樣的影響？這是否會加快與華為和 Vivo 的合作進程？或者現在判斷這種影響可能有點太早？

Yeah. Arjun, good morning. Thanks for the kind words. I do feel getting OPPO done is very, very positive for us as a company. As you are aware, OPPO is very large regarding their volume. We did see combining with Samsung, Apple, and Xiaomi, now we have the top four vendors signed up.

是的。阿瓊，早安。謝謝你的客氣話。我確實覺得完成 OPPO 對我們公司來說是非常非常積極的。如你所知，OPPO 的體積非常大。我們確實看到了與三星、蘋果和小米的結合，現在我們已經簽約了前四名供應商。

And together with some other license agreement we have in place, we are covering 70% of the overall global smartphone sales. So getting OPPO done, I do think accelerates our momentum to get a few other vendors. If you look at who else do we need to sign up we are really identifying Vivo, Honor, Huawei, and Transsion, which is primarily selling devices in Africa and a few other places.

加上我們已經簽署的其他一些授權協議，我們涵蓋了全球智慧型手機總銷量的 70%。因此，在完成 OPPO 後，我確實認為會加速我們獲得其他一些供應商的動力。如果你看看我們還需要與誰簽約，我們確實會發現 Vivo、榮耀、華為和傳音，後者主要在非洲和其他一些地方銷售設備。

And then we will essentially sign up all the major players. So I do think it's very positive. As I said in my prepared remarks, give us yet another benchmark for the value of our portfolio and also giving us further momentum to engage those customers.

然後我們基本上會簽約所有主要參與者。所以我認為這是非常積極的。正如我在準備好的演講中所說，這為我們的投資組合價值提供了另一個基準，並為我們提供了進一步吸引這些客戶的動力。

Okay. Perfect. Understood. And then just in terms of -- I know Lenovo was still in arbitration, but in terms of pricing and your economics with at least the OPPO agreement, what can you comment on in terms of what those economics look like relative to some of the other smartphone licensing agreements that you have? Were you satisfied with how that turned out? And how do we -- how should we compare OPPO to your prior agreements?

好的。完美的。明白了。然後就——我知道聯想仍在仲裁中，但就定價和至少與 OPPO 協議的經濟性而言，您可以就這些經濟性相對於其他一些協議的情況發表什麼評論您擁有智慧型手機許可協議嗎？您對結果滿意嗎？我們應該如何將 OPPO 與你們先前的協議進行比較？

Yeah. So I mean those individual agreement are confidential, so I would not be able to comment specifically. One thing I do want to draw attention to in Rich's prepared remarks, we did see in Q4, if you look at our ARR for the quarter, it got up substantially.

是的。所以我的意思是這些個人協議是保密的，所以我無法具體發表評論。我確實想在 Rich 準備好的講話中提請注意一件事，我們確實在第四季度看到，如果您查看本季度的 ARR，您會發現它大幅上升。

And if you translate the increase in Q4 over the year, the whole year, we are essentially expecting an $80 million increase on an annualized basis. So that's obviously a combination of multiple accounts, but that should give you some indication.

如果你將第四季的成長轉化為全年的成長，我們基本上預計年化成長將達到 8,000 萬美元。這顯然是多個帳戶的組合，但這應該會給您一些指示。

Okay. Got it. Rich, actually on that point, can you maybe help us understand what the catch-up revenues, what we should expect there in Q4? Are we going to see revenue and cash flow from both of these deals coming in Q4? Or is that something that's going to happen a little bit later?

好的。知道了。Rich，實際上在這一點上，您能否幫助我們了解追趕收入是多少，我們在第四季應該期待什麼？我們會在第四季看到這兩筆交易的收入和現金流嗎？或者這是稍後才會發生的事情？

Yeah. So I can comment on the revenue that the revenue is kind of baked into that full year guide. And I did mention that in Q4, we're expecting about $118 million of recurring revenue. So I think you can kind of do the algebra to get to the catch-up there. And it's from that $118 million that we get to the ARR increase of $80 million and $470 million overall.

是的。因此，我可以對收入發表評論，該收入已納入全年指南中。我確實提到過，我們預計第四季的經常性收入約為 1.18 億美元。所以我認為你可以做一些代數來趕上那裡。正是從這 1.18 億美元中，我們的 ARR 增加了 8,000 萬美元，整體增加了 4.7 億美元。

Madeline Brooks, BofA.

馬德琳布魯克斯，美國銀行。

Great. I guess I just want to talk a little bit more around longer term as we start to think about 2025. Obviously, 2024 has been a great year for you all with the different agreements as well as litigation resolvements. Can you just remind us what we potentially have in terms of what we can see from litigation and renegotiation that's coming up in 2025?

偉大的。我想當我們開始思考 2025 年時，我只是想多談談更長期的問題。顯然，2024 年對你們所有人來說都是美好的一年，達成了不同的協議以及訴訟解決方案。您能否提醒我們，從 2025 年即將發生的訴訟和重新談判中我們可以看到什麼？

Yeah. Hey Madeline. Good morning. So if you look at our 2024 with our increased projection, we are predicting a record-setting year for both the top line revenue as well as recurring revenue, but as you're aware most of the recurring revenue will carry on into 2025. So we are set out to be a very strong starting point for '25.

是的。嘿瑪德琳。早安.因此，如果您以更高的預測來看待 2024 年，我們預計營收和經常性收入都將創紀錄，但正如您所知，大部分經常性收入將持續到 2025 年。因此，我們將成為 25 年的一個非常強勁的起點。

Obviously, we still have two more months for this year, which we hope to add more. And then next year, we will continue to make progress in smartphone, consumer electronics, IoT as well as the streaming licensing side.

顯然，今年我們還有兩個月的時間，我們希望能增加更多。明年，我們將繼續在智慧型手機、消費性電子產品、物聯網以及串流媒體授權方面取得進展。

Regarding major contract for expiration, we do disclose quite a bit in our filings as well as on our website. I think the major one that come to my mind is our Xiaomi contract, we are up for renewal, which we obviously will negotiate these in due course.

關於到期的主要合同，我們確實在我們的文件和網站上披露了大量資訊。我認為我想到的主要問題是我們的小米合同，我們即將續簽，我們顯然會在適當的時候進行談判。

Yeah. I just want to be clear, that's at the end of '25. So we only have five agreements that contributed $17 million of revenue in 2023 that expire at the end of '24, going into '25 that was disclosed in our last 10-K.

是的。我只是想澄清一下，那是在 25 年底。因此，我們只有五項協議在 2023 年貢獻了 1700 萬美元的收入，這些協議將於 24 年底到期，進入我們上一個 10-K 中披露的 25 年。

(Operator Instructions) Anja Soderstrom, Sidoti.

（操作員說明）Anja Soderstrom，Sidoti。

Congrats on the nice progress here and getting OPPO on board. As you grow the recurring revenue and add these large OEMs, how should we think about the fixed fee ratio in terms of the smartphone revenue?

恭喜我們取得的良好進展並獲得 OPPO 的加入。隨著經常性收入的成長並增加這些大型 OEM，我們應該如何考慮智慧型手機收入中的固定費用比率？

Anja, I didn't quite hear that, what ratio were you looking for?

安雅，我沒聽清楚，你要找的比例是多少？

The fixed fee, are these contracts going to be on a fixed basis as they are also larger? Or are they going to be on a variable ratio basis?

固定費用，這些合約是否會是固定的，因為它們也更大？或者它們將以可變比率為基礎？

Yeah, Anja, so the exact term of the contract is under NDA, so I won't be able to specifically comment on the OPPO agreement. However, you are aware a vast majority of our large accounts are signed on fixed fees.

是的，Anja，所以合約的具體條款是在 NDA 下的，所以我無法具體評論 OPPO 協議。然而，您知道我們絕大多數的大型帳戶都是以固定費用簽署的。

And then in terms of the taxes, with this step-up in recurring revenue, how should we think about the tax rate going forward?

那麼在稅收方面，隨著經常性收入的增加，我們該如何考慮未來的稅率？

Yeah. So Anja, I think when you think about the tax rate going forward, it doesn't dramatically change our view of the tax rate going forward. We've said kind of like our long-term cash tax rate we see in the mid to high teens, and there's no real change there.

是的。所以安雅，我認為當你考慮未來的稅率時，它不會顯著改變我們對未來稅率的看法。我們已經說過，我們的長期現金稅率有點像我們看到的中高青少年稅率，而且沒有真正的變化。

This concludes the question-and-answer session. I would now like to turn it back to Liren Chen for closing remarks.

問答環節到此結束。現在我想請陳立人致閉幕詞。

Thank you. Before we close, I'd like to thank all our employees for their dedication and contribution to InterDigital as well as our many partners and customers for an outstanding quarter and continued progress throughout the year. Thank you, everyone, who joined the call today, and we look forward to updating you on our progress next quarter.

謝謝。在結束之前，我要感謝所有員工對 InterDigital 的奉獻和貢獻，以及我們的眾多合作夥伴和客戶，感謝他們在本季度的出色表現和全年的持續進步。感謝今天參加電話會議的所有人，我們期待向您通報下個季度的最新進展。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

感謝您參加今天的會議。這確實結束了該程式。您現在可以斷開連線。