Dolby Laboratories Reports Second Quarter 2024 Financial Results

Dolby - Second Quarter 2024 Financials
San Francisco ( May 2, 2024 ) -

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

“Our second quarter results were in line with our expectations,” said Kevin Yeaman, President and CEO, Dolby Laboratories. “Dolby Atmos and Dolby Vision content is expanding across movies, TV, sports, music and more, driving more consumer device adoption and bringing Dolby to more people worldwide.”

Second Quarter Fiscal 2024 Financial Highlights

  • Total revenue was $364.5 million, compared to $375.9 million for the second quarter of fiscal 2023.
  • GAAP net income was $97.8 million, or $1.01 per diluted share, compared to GAAP net income of $95.7 million, or $0.98 per diluted share, for the second quarter of fiscal 2023. On a non-GAAP basis, second quarter net income was $123.2 million, or $1.27 per diluted share, compared to $122.6 million, or $1.26 per diluted share, for the second quarter of fiscal 2023.
  • Dolby repurchased 294 thousand shares of its common stock and ended the quarter with approximately $107 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

  • Max announced the launch of Dolby Vision for live sports in addition to Dolby Atmos.
  • The Indian Premier League broadcasted cricket in Dolby Atmos and Dolby Vision for the first time.
  • Transsion, a global mobile device maker, announced that their latest smartphones will support Dolby Atmos.
  • Xiaomi expanded its premium smartphone portfolio in India with smartphones supporting Dolby Vision Capture, Dolby Vision, and Dolby Atmos.
  • Oppo recently announced that they introduced five new phones supporting Dolby Vision Capture.
  • Honor launched the Magic 6 Pro smartphone that supports Dolby Vision.
  • Lava Mobiles launched its new Blaze Curve 5G smartphone in India that supports Dolby Atmos.
  • Xiaomi also announced that their first electric vehicle, the SU7, will support Dolby Atmos.
  • Automotive manufacturer Hyundai began shipping its Genesis model that supports Dolby Atmos.

Dividend
Today, Dolby announced a cash dividend of $0.30 per share of Class A and Class B common stock, payable on May 22, 2024, to stockholders of record as of the close of business on May 14, 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 second quarter of fiscal 2024, to be filed on or around the date hereof.

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

  • Total revenue is estimated to range from $270 million to $300 million.
  • Licensing revenue is estimated to range from $245 million to $275 million.
  • Gross margins are anticipated to be approximately 87%.
  • 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 around 24% on a GAAP basis and around 21% on a non-GAAP basis.
  • Diluted earnings per share is anticipated to range from $0.21 to $0.36 on a GAAP basis and from $0.51 to $0.66 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.