Dolby Laboratories Reports First Quarter 2023 Financial Results

Dolby Laboratories, Inc. (NYSE:DLB) today announced the company's financial results for the first quarter of fiscal 2023.
San Francisco, CA ( February 7, 2023 ) -

Dolby Laboratories, Inc. (NYSE:DLB) today announced the company’s financial results for the first quarter of fiscal 2023.

“We are bringing an increasing number of Dolby experiences to more people around the world and demand for immersive experiences continues to be strong,” said Kevin Yeaman, President and CEO, Dolby Laboratories. “I’m excited about our momentum with Dolby Vision and Dolby Atmos in movies, television, music, live sports and more.”

First Quarter Fiscal 2023 Financial Highlights

  • Total revenue was $334.9 million, compared to $351.6 million for the first quarter of fiscal 2022.
  • GAAP net income was $79.4 million, or $0.82 per diluted share, compared to GAAP net income of $80.0 million, or $0.77 per diluted share, for the first quarter of fiscal 2022. On a non-GAAP basis, first quarter net income was $107.4 million, or $1.11 per diluted share, compared to $104.5 million, or $1.01 per diluted share, for the first quarter of fiscal 2022.
  • Cash flows from operations were $56.4 million, compared to $31.7 million for the first quarter of fiscal 2022.
  • We repurchased 0.7 million shares of our common stock and ended the quarter with about $311 million of stock repurchase authorization available going forward.

    • A complete listing of Dolby’s non-GAAP measures are described and reconciled to the corresponding GAAP measures at the end of this release.

    Recent Business Highlights

  • Vivo launched its flagship phone with both Dolby Vision capture and playback.
  • OPPO announced their OnePlus 11 phone will include Dolby Atmos and Dolby Vision playback.
  • TCL announced that Dolby Vision and Dolby Atmos will be included on all new 4K TVs in the US. Dividend

    • Today, Dolby announced a cash dividend of $0.27 per share of Class A and Class B common stock, payable on February 22, 2023, to stockholders of record as of the close of business on February 14, 2023.

    Financial Outlook
    Dolby’s financial outlook relies on estimates of royalty-based revenue that take into consideration the macroeconomic effect of certain events, including COVID-19, supply chain constraints, and consumer demand for electronic products. In addition, our actual results could differ materially from the estimates we are providing below due in part to the increased uncertainty resulting from these items as well as the geopolitical instability and continuing concerns around inflation and rising interest rates. The uncertainty resulting from these factors has greatly reduced our visibility into our future outlook. To the extent possible, the estimates we are providing for future periods reflect certain assumptions about the potential impact of certain of these items, based upon a consideration of currently available external and internal data and information. These assumptions are subject to risks and uncertainties. For more information, see “Forward-Looking Statements” in this press release for a description of certain risks that we face, and the section captioned “Risk Factors” in our Quarterly Report on Form 10-Q for the first quarter of fiscal 2023, to be filed on or around the date hereof.

    Dolby is providing the following high-level estimates for the full year of fiscal 2023:

  • Total revenue is expected to grow low single digits year-over-year.
  • GAAP operating expenses are expected to decline roughly 2% year-over-year. Non-GAAP operating expenses are expected to grow roughly 2% year-over-year.
  • We expect operating margins on a GAAP basis to be roughly 19% and on a non-GAAP basis to be roughly 30%.

    • Dolby is providing the following estimates for its second quarter of fiscal 2023:

  • Total revenue is estimated to range from $340 million to $370 million.
  • Operating expenses are anticipated to range from $227 million to $237 million on a GAAP basis and from $193 million to $203 million on a non-GAAP basis.
  • Effective tax rate is anticipated to range from 22% to 24% on a GAAP basis and 19% to 21% on a non-GAAP basis.
  • Diluted earnings per share is anticipated to range from $0.58 to $0.73 on a GAAP basis and from $0.90 to $1.05 on a non-GAAP basis.

    • For the full report, see here.

    About Dolby Laboratories
    Dolby Laboratories (NYSE: DLB) is based in San Francisco, California with offices around the globe. From movies and TV shows, to apps, music, sports and gaming, Dolby transforms the science of sight and sound into spectacular experiences for billions of people worldwide. We partner with artists, storytellers, developers, and businesses to revolutionize entertainment and communications with Dolby Atmos, Dolby Vision, Dolby Cinema, and Dolby.io.

    Dolby, Dolby Atmos, Dolby Vision, Dolby Cinema, Dolby.io, and the double-D symbol are among the registered and unregistered trademarks of Dolby Laboratories in the United States and/or other countries. Other trademarks remain the property of their respective owners.