Dolby Laboratories Reports Fourth Quarter and Fiscal 2021 Financial Results

(November 17, 2021) – Dolby Laboratories, Inc. (NYSE:DLB) today announced the company’s financial results for the fourth quarter and fiscal year that ended September 24, 2021. For the fourth quarter, Dolby reported total revenue of $285.0 million, compared to $271.2 million for the fourth quarter of fiscal 2020. For fiscal 2021, Dolby reported total revenue of $1.28 billion, compared to $1.16 billion for fiscal 2020.

“Dolby continues to expand the breadth and depth of Dolby Vision and Dolby Atmos experiences across a wider range of content in music, gaming, and live sports,” said Kevin Yeaman, President and CEO, Dolby Laboratories. “We are also excited about the opportunity to drive future growth with initiatives like Dolby.io which enables developers to build high-quality, interactive and media-centric applications.”

Fourth quarter GAAP net income was $44.2 million, or $0.42 per diluted share, compared to GAAP net income of $26.8 million, or $0.26 per diluted share, for the fourth quarter of fiscal 2020. On a non-GAAP basis, fourth quarter net income was $60.4 million, or $0.58 per diluted share, compared to $45.8 million, or $0.45 per diluted share, for the fourth quarter of fiscal 2020. Fourth quarter cash flows from operations was $109.8 million, compared to $112.7 million for the fourth quarter of fiscal 2020. A complete listing of Dolby’s non-GAAP measures are described and reconciled to the corresponding GAAP measures at the end of this release.

Fiscal 2021 GAAP net income was $310.2 million, or $2.97 per diluted share, compared to $231.4 million, or $2.25 per diluted share, for fiscal 2020. On a non-GAAP basis, fiscal 2021 net income was $383.3 million, or $3.66 per diluted share, compared to $305.2 million, or $2.97 per diluted share, for fiscal 2020. Fiscal 2021 cash flows from operations was $447.8 million, compared to $343.8 million for fiscal 2020.

Recent Business Highlights

  • Mercedes-Benz announced that it will be offering Dolby Atmos in their Mercedes-Maybach and Mercedes Benz S-Class models, and their optional Burmester sound system.
  • Dolby and MGM Resorts International launched Dolby Live at Park MGM – the first fully integrated performance venue to offer live concerts in Dolby Atmos.
  • Vimeo becomes the first all-in-one platform to support the playback of Dolby Vision content for the Apple ecosystem.
  • Microsoft launched the Surface Pro 8 and Surface Studio with Dolby Vision and Dolby Atmos – the first Microsoft Surface devices with Dolby Vision.
  • COVID-19
    Dolby continues to monitor the COVID-19 pandemic and its impact on our company. The safety and well-being of our employees and supporting our communities continue to be priorities. Since the initial outbreak of COVID-19, our revenue continues to be impacted across various markets within licensing and products and services. The implications of COVID-19 on our future results of operations remain uncertain.

    We expect continued uncertainty in global financial markets. Dolby’s financial results for the fourth quarter of fiscal 2021 rely on estimates of royalty-based revenue that take into consideration the macroeconomic effect of global events, including COVID-19, which may impact supply chain activities and consumer demand for electronic products. For more information, see the section captioned “Risk Factors” in our Annual Report on Form 10-K for fiscal 2021, filed on or around the date hereof.

    Dividend
    Today, Dolby announced a cash dividend of $0.25 per share of Class A and Class B common stock, payable on December 8, 2021, to stockholders of record as of the close of business on November 30, 2021.

    Financial Outlook – First Quarter and Full Year of Fiscal 2022
    The volume of shipments, aggregated across various end markets and devices, continues to be impacted and difficult to predict because of economic uncertainty due to COVID-19. The global cinema market has been adversely impacted by COVID-19, and it remains uncertain when and where cinemas will resume operating at full capacity.

    Our actual results could differ materially from the estimates we are providing due in part to the challenging economic environment and uncertain effects of COVID-19. The estimates we are providing for future periods reflect certain assumptions about the potential impact of COVID-19, based upon a consideration of external and internal data and information. 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 Annual Report on Form 10-K for fiscal 2021, filed on or around the date hereof.

    First Quarter Fiscal 2022
    Dolby is providing the following estimates for its first quarter of fiscal 2022:

  • Total revenue is estimated to range from $345 million to $375 million.
  • Gross margin percentages are anticipated to range from 90% to 91% on a GAAP basis and from 91% to 92% on a non-GAAP basis.
  • Operating expenses are anticipated to range from $221 million to $231 million on a GAAP basis and from $190 million to $200 million on a non-GAAP basis.
  • Effective tax rate is anticipated to range from 18% to 19% on both a GAAP and non-GAAP basis.
  • Diluted earnings per share is anticipated to range from $0.71 to $0.86 on a GAAP basis and from $0.98 to $1.13 on a non-GAAP basis.
  • Fiscal Year 2022
    Dolby is also providing the following estimates for its fiscal year 2022:

  • Total revenue is estimated to range from $1.34 billion to $1.40 billion.
  • Operating expenses are anticipated to range from $869 million to $889 million on a GAAP basis and from $750 million to $770 million on a non-GAAP basis.
  • Operating margin percentages are anticipated to range from 24% to 26% on a GAAP basis and from 34% to 36% on a non-GAAP basis.
  • Diluted earnings per share is anticipated to range from $2.53 to $3.03 on a GAAP basis and from $3.52 to $4.02 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. 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, Inc. in the United States and/or other countries. Other trademarks remain the property of their respective owners. DLB-F

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