Xperi saw significant Q1 2022 revenue growth in its pay TV and TiVo businesses, with CEO Jon Kirchner expecting the latter to have “double-digit growth” this year – fueled by enhanced connected TV advertising.
TiVo makes up Xperi’s media platform product category. It encompasses TiVo’s Stream OS and Stream 4K products as well as TiVo’s monetization and TV viewership data. Kirchner noted in Monday’s earnings call the media platform is Xperi’s “fastest growing category,” and anticipates monetization revenue from connected TV advertising to drive that growth moving forward.
Xperi has wasted no time in solidifying that outlook. TiVo in February launched its Xtend advertising platform, which uses first-party deterministic viewership data to bolster CTV ad reach. TiVo also renewed in April its data licensing contract with VideoAmp, which gained access to TiVo’s dataset of household viewing patterns.
In regard to streaming, TiVo recently integrated YouTube TV into its Stream OS and Stream 4K devices, bringing over 85 channels of live TV content. TiVo also added the Shudder, SundanceNow and Allblk streaming services onto TiVo Stream OS. Xperi plans to deploy smart TVs equipped with TiVo Stream OS sometime within the next two years.
Xperi’s pay TV category represented 54% of total Q1 product revenue, increasing to $64 million despite continued churn of legacy pay TV subscribers, said CFO Robert Andersen. Pay TV revenue was boosted by internet protocol TV growth from TiVo’s MobiTV customers. TiVo acquired MobiTV’s IPTV business last year. MobiTV’s assets included a managed pay TV service that uses TiVo’s licensed media software for linear, on-demand and network DVR services.
Kirchner added on the call he expects pay TV revenue will be “flat to slightly down” this year, but Xperi has a “substantial pipeline” of IPTV business coming its way.
“I think we have done an outstanding job of normalizing and working to transform the pay TV business in a way where it is not a large drag on the overall business, but rather is beginning to move ever more toward where we think the future of that business lies,” he said.
Metrics
Xperi’s total Q1 revenue went up 16% year-over-year, from $221.6 million to $257.4 million. Revenue for the media platform category jumped 19% in the same period, to $7 million. Xperi reported a net income of $24.9 million for Q1.