New York, NY ( November 17, 2022 ) -

Dolby Laboratories, Inc. (NYSE:DLB) today announced the company’s financial results for the fourth quarter and full year of fiscal 2022.

“We continue to make progress in bringing the Dolby experience to all the ways people enjoy their content,” said Kevin Yeaman, President and CEO, Dolby Laboratories. “While results came in below our expectations, we grew our presence across movies and TV, music, and user-generated content and we are confident in our long-term growth opportunities.”

Fourth Quarter Fiscal 2022 Financial Highlights

Total revenue was $278.2 million, compared to $285.0 million for the fourth quarter of fiscal 2021.

GAAP net income was $27.8 million, or $0.28 per diluted share, compared to GAAP net income of $44.2 million, or $0.42 per diluted share, for the fourth quarter of fiscal 2021. On a non-GAAP basis, fourth quarter net income was $52.8 million, or $0.54 per diluted share, compared to $60.4 million, or $0.58 per diluted share, for the fourth quarter of fiscal 2021.

Cash flows from operations were $51.3 million, compared to $109.8 million for the fourth quarter of fiscal 2021.

We repurchased 2.9 million shares of our common stock and ended the quarter with about $361 million of stock repurchase authorization available going forward.

Full Year Fiscal 2022 Financial Highlights

Total revenue was $1.25 billion, compared to $1.28 billion for the full year of fiscal 2021.

GAAP net income was $184.1 million, or $1.81 per diluted share, compared to GAAP net income of $310.2 million, or $2.97 per diluted share, for the full year of fiscal 2021. On a non-GAAP basis, full year net income was $319.9 million, or $3.14 per diluted share, compared to $383.3 million, or $3.66 per diluted share, for the full year of fiscal 2021.

Cash flows from operations were $318.6 million, compared to $447.8 million for the full year of fiscal 2021.

We held cash, cash equivalents, and investments of $911.9 million as of September 30, 2022.

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

Volvo, Polestar, Lotus, and XPENG all announced their first vehicles to support Dolby Atmos.

Gaana.com, a leading music streaming service in India, launched the support of Dolby Atmos.

The German Super Cup final match was broadcast for the first time in Dolby Atmos.

Moong Labs announced the launch of its popular mobile game “Epic Cricket – Big League” in Dolby Atmos.

Xiaomi introduced the MIX Fold 2, their second smartphone to support Dolby Vision Capture.

Microsoft announced three new Surface computers, all with Dolby Atmos and Dolby Vision.

Dividend
Today, Dolby announced a cash dividend of $0.27 per share of Class A and Class B common stock, payable on December 8, 2022, to stockholders of record as of the close of business on November 30, 2022.

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 Annual Report on Form 10-K for fiscal 2022, 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 first quarter of fiscal 2023:

Total revenue is estimated to range from $300 million to $330 million.

Operating expenses are anticipated to range from $214 million to $224 million on a GAAP basis and from $180 million to $190 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 $0.46 to $0.61 on a GAAP basis and from $0.76 to $0.91 on a non-GAAP basis.

Financial Results
The financial results for the fourth quarter and fiscal year ended September 30, 2022 discussed in this release are subject to the completion of the audit of our year-end financial statements and to adjustment, pursuant to our revenue recognition policies under ASC 606. In accordance with ASC 606, we may be required to recognize revenue between the date of this release and the time at which we issue our audited consolidated financial statements. Any changes to the estimated financial results discussed above as a result of our revenue recognition policies under ASC 606 will be included in our Annual Report on Form 10-K for fiscal 2022.

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, Inc. in the United States and/or other countries. Other trademarks remain the property of their respective owners.