TiVo just recently launched its new ad-supported streaming service, TiVo+, but the company said people can expect more from the company around CES early next year.
During Thursday’s earnings call, TiVo CEO Dave Shull said his company has been consolidating its product and engineering teams and pushing toward a unified strategy.
“That also really focuses our revenue goals for 2020 and beyond, to say that we’re very focused on the concept of bringing all this entertainment together and we’re all about making it easier to find and watch and enjoy the content,” said Shull. “That’s driving a very specific set of product development efforts and product deployment efforts.”
He said that TiVo+ is a big first step considering that TiVo has not historically been known as a content company, but he promised much more to come early next year.
“But you’re going to see really the next, what I would call a coming out party, early next year around CES and around the Q1 roadshow. I think at that point it will be a lot clearer what we’re looking at in terms of ramping up the deployment of the TiVo Experience and where we see the future growth for the product side coming,” Shull said.
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TiVo is still targeting April 2020 as the date when it will finalize the separation of its IP licensing and product businesses. While TiVo’s product business gets much of the attention – particularly with TiVo+ and more operator deployments of the Android TV-based IPTV version of TiVo User Experience 4 – IP licensing is growing. The company's IP licensing business revenues grew 8% year over year thanks to international deals in Canada and Korea. That helped offset a 12% decline in product revenues.
TiVo’s overall net revenues fell 4% to approximately $158.5 million. At the same time, total operating costs and expenses swelled by 72% from $172.4 million to $296 million. That pushed TiVo’s operating loss for the quarter up to $137.7 million, significantly higher than the $7.7 million TiVo lost in the year-ago quarter.
During the quarter, the company recorded a $137.5 million non-cash Goodwill impairment charge which it said was driven by the sustained decline in its stock price and a decrease in its long-term forecast for the product business.