Dolby Laboratories Reports First Quarter 2024 Financial Results

Dolby announced the company's financial results for the first quarter of fiscal 2024.
San Francisco, CA ( February 1, 2024 ) -

Dolby Laboratories, Inc. (NYSE:DLB) today announced the company’s financial results for the first quarter of fiscal 2024.

“Our first quarter results were in line with our expectations,” said Kevin Yeaman, President and CEO, Dolby Laboratories. “We continue to bring new Dolby experiences to more people around the world across all of their favorite entertainment content and devices, with particular momentum this quarter in Dolby Atmos for cars.”

First Quarter Fiscal 2024 Financial Highlights

  • Total revenue was $315.6 million, compared to $334.9 million for the first quarter of fiscal 2023.
  • GAAP net income was $67.0 million, or $0.69 per diluted share, compared to GAAP net income of $79.4 million, or $0.82 per diluted share, for the first quarter of fiscal 2023. On a non-GAAP basis, first quarter net income was $98.6 million, or $1.01 per diluted share, compared to $107.4 million, or $1.11 per diluted share, for the first quarter of fiscal 2023.
  • Dolby repurchased 968 thousand shares of its common stock and ended the quarter with approximately $132 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

  • Apple announced support for Dolby Atmos for CarPlay.
  • A leading Indian online video streaming service announced that its platform will support Dolby Vision, in addition to currently supporting Dolby Atmos.
  • Zeeker, a premium electric vehicle brand in China, launched the Zeekr 007 that supports Dolby Atmos.
  • Dolby and Ed Sheeran celebrate the transformative experience of Dolby Atmos Music in new “Love More” global brand campaign.

Dividend

Today, Dolby announced a cash dividend of $0.30 per share of Class A and Class B common stock, payable on February 22, 2024, to stockholders of record as of the close of business on February 13, 2024.

Financial Outlook

Dolby’s financial outlook relies, in part, on estimates of royalty-based revenue that take into consideration various factors that are subject to uncertainty, including consumer demand for electronic products. In addition, actual results could differ materially from the estimates Dolby is providing below due in part to uncertainty resulting from the macroeconomic effect of certain conditions, including supply chain constraints, international conflicts, geopolitical instability, and fluctuations in inflation and interest rates. The uncertainty resulting from these factors has greatly reduced its visibility into Dolby’s future outlook. To the extent possible, the estimates Dolby is 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 Dolby faces, and the section captioned “Risk Factors” in its Quarterly Report on Form 10-Q for the first quarter of fiscal 2024, to be filed on or around the date hereof.

Dolby is providing the following estimates for its second quarter of fiscal 2024:

  • Total revenue is estimated to range from $345 million to $375 million.
  • Gross margins are anticipated to be approximately 90%.
  • Operating expenses are anticipated to range from $215 million to $225 million on a GAAP basis and from $180 million to $190 million on a non-GAAP basis.
  • Effective tax rate is anticipated to be roughly 23% on a GAAP basis and roughly 20% on a non-GAAP basis.
  • Diluted earnings per share is anticipated to range from $0.82 to $0.97 on a GAAP basis and from $1.14 to $1.29 on a non-GAAP basis.

Dolby is providing the following estimates for the full year of fiscal 2024:

  • Total revenue is expected to be roughly $1.30 billion.
  • Gross margins are anticipated to be roughly 89%.
  • Operating expenses are anticipated to range from $885 million to $895 million on a GAAP basis and from $740 million to $750 million on a non-GAAP basis.
  • Dolby expects operating margins on a GAAP basis to be roughly 20% and on a non-GAAP basis to be roughly 32%.
  • Diluted earnings per share is anticipated to range from $2.30 to $2.45 on a GAAP basis and from $3.60 to $3.75 on a non-GAAP basis.

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. Dolby partners 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.