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Xperi Inc. (XPER) Q4 2022 Earnings Call Transcript

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Xperi Inc. (NYSE:XPER) Q4 2022 Results Conference Call February 21, 2023 5:00 PM ET

Company Participants

Mike Iburg - Head of Investor Relations

Jon Kirchner - Chief Executive Officer

Robert Andersen - Chief Financial Officer

Conference Call Participants

Nick Zangler - Stephens

Hamed Khorsand - BWS Financial

Matthew Galinko - The Maxim Group

Operator

Good day, everyone. Thank you for opinionated by. Welcome to Xperi Fourth Quarter and Full Year 2022 Earnings Conference Call. During today’s presentation, each participants will beryllium successful a perceive only mode. Following nan presentation, nan telephone will beryllium unfastened for questions.

I would now for illustration to move nan telephone complete to Mike Iburg, Xperi's Head of Investor Relations. Mike, please spell ahead.

Mike Iburg

Good afternoon. And convey you for joining america arsenic Xperi reports its 4th fourth and afloat twelvemonth 2022 financial results. With maine connected today’s telephone are Jon Kirchner, Chief Executive Officer; and Robert Andersen, Chief Financial Officer. In summation to today's net release, location is an net presentation, which tin beryllium accessed on pinch this webcast connected our Investor Relations Web tract astatine investor.xperi.com. Before we begin, I would for illustration to supply a fewer reminders. First, I would for illustration to statement that our afloat twelvemonth 2022 financial results see results presented connected a carve retired ground for nan periods anterior to Xperi separation from Xperi Holding Corporation connected October 1, 2022. Xperi Holding Corporation is now known arsenic Adeia. Second, today's chat contains forward-looking statements that are predictions, projections and different statements astir early events, which are based connected management's existent expectations and beliefs and truthful taxable to risks, uncertainties and changes successful circumstances. For much accusation connected nan risks and uncertainties that could origin our existent results to disagree materially from what we discussed today, please mention to nan consequence factors and MD&A sections of our SEC filings, including our registration connection connected Form 10. Please statement that nan institution does not intend to update aliases change these forward-looking statements to bespeak nan events aliases circumstances arising aft this call. Third, we mention to definite non GAAP financial measures, which are elaborate in nan net merchandise and accompanied by reconciliations to their astir straight comparable GAAP measures, which tin beryllium recovered successful nan investor relations conception of our Web site. Lastly, a replay of this convention telephone will beryllium disposable connected our Web tract soon aft nan conclusion of this call.

I will now move nan telephone complete to Xperi CEO, Jon Kirchner.

Jon Kirchner

Thank you, Mike. And convey you everyone for joining america connected our 4th fourth and afloat twelvemonth 2022 net call. We're excited to denote beardown financial results for our first 4th arsenic an independent company. Revenue successful nan 4th was $136 million, an summation of 9% from nan anterior year. For nan afloat twelvemonth of 2022, full gross was $502 million, representing a 3% summation from nan anterior year. Robert will supply a much elaborate reappraisal of our financial capacity successful conscionable a moment. We're making worldly advancement successful our cardinal maturation areas pinch incremental traction successful media platform, IPTV and connected car. Recent announcements, specified arsenic Amlogic, integrating our TV OS and related technologies into their Smart TV chipsets and our latest creation triumph for DTS AutoStage, which has been expanded to see TiVo’s video level successful nan connected car infotainment acquisition are premier examples of our accrued momentum. As discussed astatine past fall’s Investor Day, we connection a wide scope of solutions designed to create bonzer intermezo experiences for extremity users arsenic good arsenic to amended safety, comfortableness and convenience successful nan car. Four of our solutions are successful markets that are expected to grow quickly complete nan adjacent respective years, while different solutions are successful markets that are much mature and comparatively unchangeable complete nan longer word horizon. We mention to these areas arsenic maturation and halfway respectively.

Our strategy is focused connected driving gross maturation successful 4 cardinal areas; connected TV advertising, IPTV, in-vehicle infotainment, and in-cabin monitoring. With decades of experience, we person brought to marketplace independent media platforms that are differentiated, unbiased and tailored to supply a personalized user experience. We judge these attributes will let america to seizure stock and thrust gross maturation done a operation of licence fees and monetization. The connected TV advertizing marketplace is expected to much than double complete nan adjacent 5 years arsenic advertisers displacement their trading investments toward nan increasing inclination successful video streaming. The IPTV marketplace is besides expected to much than double complete nan adjacent 5 years arsenic broadband into nan location continues to increase. More than 80% of family broadband depletion is for video, a inclination that is expected to continue. With complete 70% of caller vehicles projected to beryllium tin of broadband connectivity by 2025, nan in-vehicle infotainment marketplace is expected to quickly grow arsenic much vehicles link to nan Internet and a wider assortment of contented is consumed. Lastly, nan in-vehicle driver and caretaker monitoring markets are expanding quickly arsenic nan manufacture and regulators purpose to make nan conveyance a safer place.

Diving a small deeper into each of these markets. Our strategy successful connected TV advertizing is to activity pinch Smart TV OEMs to bring TVs to marketplace incorporating our TiVo OS. With our level arsenic nan conduit for consuming content, we’ll beryllium capable to seizure a information of nan advertisement gross generated by consumers arsenic they position advertisement supported contented complete nan life of nan TV. As you whitethorn person heard, we impressed astatine CES pinch unrecorded demos of nan first Vestel TVs powered by TiVo. It was breathtaking to spot these smart TVs, which are expected to statesman shipping later this year, moving nan TiVo level successful a accumulation situation astatine afloat scale. The TV OS has respective cardinal advantages for TV OEMs. We connection a genuinely independent media level pinch unbiased hunt and find that is not influenced by a peculiar contented supplier aliases advertiser. Our unsocial business exemplary enables Smart TV OEMs to marque nan experience, clasp customer ownership and participate successful usage based economics complete nan life of nan product. These aren’t TiVo TVs, they are OEM branded TVs powered by TiVo. As smart TVs pinch TV OS began to ship, nan way to monetization is comparatively straightforward. And by sharing a information of nan advertisement gross pinch nan TV manufacturers, we judge we tin build stronger OEM relationships to thrust higher volumes complete time.

We expect to person a footprint of astatine slightest 7 cardinal TVs powered by TiVo wrong 3 years, which would output an annualized gross tally complaint of astir $140 cardinal while delivering meaningful separator description complete time. Our IPTV offering sits wrong our Pay TV business and has seen accelerated success. We connection a champion successful people unreality based intermezo level for video and broadband work providers. Our contented agnostic attack wherever we bring each intermezo together to find, watch and bask provides consumers pinch a personalized engagement acquisition that is superior to replacement offerings. We proceed to grow our IPTV subscriber guidelines done caller work providers crossed nan Americas and ended nan twelvemonth pinch 1.2 cardinal subscriber households. IPTV maturation was beardown successful nan 4th quarter, offsetting humble declines successful nan larger much mature Pay TV markets, resulting successful full Pay TV gross being modestly higher year-over-year. Over nan adjacent 3 years, we expect IPTV gross to turn from astir $40 cardinal to complete $100 million.

Within our connected car business, we person 2 important maturation opportunities, namely in-vehicle infotainment and in-cabin monitoring. We reside these opportunities pinch our DTS AutoStage infotainment and DTS AutoSense solutions. The automotive manufacture is making extended investments successful connected car arsenic Internet connectivity is turning nan compartment into a individual intermezo space. We person longstanding relationships pinch automotive manufacturers who person adopted our HD Radio solution deployed successful complete 95 cardinal vehicles. And now we are leveraging our media level solutions incorporating metadata, our legendary hunt and find and TiVo’s video capabilities to supply a vastly improved in-cabin intermezo experience. As anyone acquainted pinch nan automotive marketplace understands, these contracts return a agelong clip to triumph and are agelong word successful nature. As we look astatine our committed business and connected car astatine twelvemonth end, we person complete $300 cardinal of gross to beryllium recognized complete nan adjacent respective years. And to put that successful perspective, that's much than $300 cardinal connected a business that posted $84 cardinal successful gross past year. Importantly, our pipeline of caller automotive opportunities continues to grow. During nan quarter, we were awarded our first creation triumph incorporating video into our AutoStage in-car infotainment platform. This offering, which goes into accumulation later this year, will bring TiVo’s video level into nan halfway console. Also successful connected car, we proceed to beryllium awarded creation wins for AutoSense, our in-car driver and caretaker monitoring systems, astir precocious winning a awesome programme pinch a ample Asian automotive OEM. Together, these wins proceed to group nan shape for meaningful agelong word connected car gross growth.

We expect these 4 cardinal maturation areas to correspond complete 40% of our full gross successful 3 years, a important summation from astir 20% today. Our existing monetization business, which includes licensing our viewership data, advertizing connected our programme guides and licensing nan precocious acquired Vewd technologies generates astir $40 cardinal of gross annually. By launching smart TVs powered by TiVo and participating successful nan monetization of advertisement supported content, we expect this business to much than quadruple to complete $190 cardinal annually successful a 3 twelvemonth timeframe. Next, having exceeded 1.2 cardinal paid subscriber households, our TiVo IPTV level is presently generating astir $40 cardinal of gross annually, chiefly from recurring subscriber fees. Over nan adjacent 3 years, we expect yearly gross to much than double to complete $100 cardinal owed to subscriber maturation and accrued gross per household. Our AutoStage and AutoSense platforms proceed to triumph caller contracts for early exemplary years and we expect accelerating gross maturation arsenic these contracts spell into production. In addition, we scheme to incorporated advertisement monetization into nan AutoStage platform, which will create different opportunity for gross maturation downstream. As antecedently discussed, this is simply a agelong word play wherever we expect gross to turn from $4 cardinal to astir $40 cardinal annually successful 3 years, pinch much important gross coming successful nan 5 to 7 twelvemonth range. Altogether, we expect our cardinal maturation areas of connected car, monetization and IPTV to turn from astir $84 cardinal to complete $330 cardinal successful 3 years, contributing $246 cardinal of precocious separator nett caller revenue.

Lastly, turning to Perceive. We expect first gross to hap successful 2023. Though owed to immoderate uncertainty astir timing and amount, location is nary perceived gross included successful our yearly guidance. We proceed to judge Perceive represents a important action for worth creation arsenic instrumentality learning usage cases move to nan Edge. For example, there's expanding consciousness successful nan manufacture of nan powerfulness of ample instrumentality learning models, specified arsenic ample connection models that are delivering awesome results. We proceed to supply devices and package applications for prospective customers arsenic they measure and scope features based connected nan implementation of ample networks connected their Edge devices. Notably, astatine CES, we demonstrated a ample connection exemplary moving connected our platform, sparking important customer interest. We judge that our attack is unique and represents a clear worth proposition of moving ample information halfway people networks astatine nan separator astatine little powerfulness than anyone successful nan industry. Thus, we intend to proceed to put prudently arsenic we measure really champion to make nan highest return connected our finance and navigate what we judge will beryllium a important move to nan Edge complete nan longer run.

With that, I'll move nan telephone complete to Robert to talk our financials. Robert?

Robert Andersen

Thanks, Jon. As Jon mentioned earlier, our 4th fourth net correspond our first 4th arsenic a afloat independent company. And earlier I walked done nan financials, I'd for illustration to mention that each comparisons are against nan aforesaid 4th successful nan anterior year. Total gross for nan 4th fourth was $136 million, an summation of 9%. This summation was chiefly driven by our media level and user electronics businesses. Media platform, although, only 14% of full revenue, was up 57%, driven chiefly by monetization and nan Vewd acquisition, which occurred past summer. Consumer electronics astatine 20% of full gross was up 11%, driven by maturation successful mobile arsenic we widen our audio and video enhancement technologies into much mobile and PC devices, arsenic good arsenic from incremental licence fees from a ample mobile customer. Similar to anterior quarters, Pay TV represented astir half of our full gross and was fundamentally level arsenic beardown maturation successful IPTV offset humble declines successful our halfway Pay TV merchandise lines, specified arsenic classical guides and user DVR hardware. Connected car represented 17% of full gross and was up 4% owed chiefly to nan advancement we've made successful AutoStage and AutoSense successful summation to automotive caput portion accumulation that includes our audio solutions.

For nan afloat twelvemonth of 2022, user electronics accrued 29% chiefly driven by incremental licence fees from a ample mobile customer and by stronger mobile and PC penetration. Media level accrued 13% owed to nan Vewd acquisition and maturation and monetization. Pay TV declined 5% arsenic declines successful nan much mature classical guides business were mostly offset by beardown maturation successful IPTV. Connected car declined 5%, chiefly owed to little automobile accumulation volumes that impacted HD Radio revenue. Our non-GAAP gross separator for nan 4th was $99 cardinal aliases 73%. Non-GAAP operating disbursal for nan 4th was $104 cardinal and adjusted EBITDA was $3.6 million. Non-GAAP net per stock was $0.08, favorably impacted by a beardown disbursal guidance and by a twelvemonth extremity taxation travel they created an income taxation use successful nan quarter. Moving to nan equilibrium sheet, nan institution ended nan 4th pinch $160 cardinal of rate and rate equivalents. As portion of our twelvemonth extremity reappraisal of goodwill and fixed assets, we booked a non-cash complaint of $251 cardinal for goodwill impairment and an further $8 cardinal related to closing a redundant agency building arsenic we activity to optimize our accommodation footprint. Looking forward, we expect to incur further existent property related charges arsenic portion of our business optimization goals. Our rate travel from operations successful nan 4th was a antagonistic $17 cardinal owed to $5 cardinal of onetime expenses associated pinch nan business separation and changes successful moving superior mostly driven by an summation successful unbilled receivables of astir $11 million.

In position of our 2023 financial outlook, we are providing nan pursuing ranges and commentary. We expect afloat twelvemonth gross to beryllium successful nan scope of $510 cardinal to $540 million, successful statement pinch nan gross estimate we provided astatine our Investor Day successful September. We expect this maturation to travel chiefly from our media level and connected car businesses. In position of quarterly cadence, we expect fiscal '23 gross to travel a akin seasonal shape to fiscal '22 pinch each 4th showing a comparable percent summation from nan anterior twelvemonth quarter. Full twelvemonth adjusted EBITDA separator is expected to beryllium successful nan scope of 6% to 10%. This scope accounts for incremental investments successful AutoStage, AutoSense and TV OS owed to accelerated business momentum and caller creation wins that successful nan midpoint somewhat little than nan estimate we provided successful September. We estimate rate taxes and non-GAAP taxation for nan twelvemonth to beryllium successful nan scope of $20 cardinal to $25 million. Note that our taxation disbursal is affected by 2 precocious implemented US taxation rule changes. First, we are required to capitalize definite R&D costs complete 5 aliases much years, which has nan effect of expanding our US taxable income. It is unclear whether this request will beryllium repealed during nan people of 2023. Second, we tin nary longer deduct withholding taxes incurred successful various countries pinch which nan US does not person a taxation treaty. At nan mediate of our gross and adjusted EBITDA guidance ranges, we expect operating rate travel to beryllium astir breakeven for nan year. Basic stock count is expected to mean 43 cardinal for nan twelvemonth and afloat diluted stock count is expected to mean astir 49 cardinal for nan year.

That concludes our prepared remarks. Let's now unfastened nan telephone to your questions. Operator?

Question-and-Answer Session

Operator

[Operator Instructions] Your first mobility comes from nan statement of Nick Zangler pinch Stephens.

Nick Zangler

Congrats connected each nan awesome news this quarter. I conjecture I'll commencement pinch this connected car win. Just tin you framework up, I conjecture what nan TiVo OS looks for illustration connected a connected car, does it look akin to nan TiVo OS that's connected a TV conscionable benignant of reformatted to nan car aliases are location important differences there? And past conscionable arsenic good possibly for illustration conscionable -- does nan OEM get to support nan branding for illustration you do connected nan TV broadside arsenic well. If you'll stock nan economics, package economics there, conscionable for illustration you do pinch nan TVs? And past possibly conscionable immoderate early thoughts connected nan ARPU imaginable that you spot there?

Jon Kirchner

I deliberation it's early stages. So Nick, I deliberation what I'm going to beryllium capable to respond to present is to benignant of springiness you bigger picture. So we do expect nan business opportunity to create adjacent word licence fees, if you will, connected a subscribership ground arsenic good arsenic monetization complete nan longer run. Secondly, I deliberation from a creation perspective, obviously, nan automaker has a awesome woody of input connected really they would for illustration nan video services to look successful nan vehicle. So I would opportunity that it will not beryllium identical to what you spot successful our surviving room. However, astatine nan core, what's down it TiVo’s legendary hunt and recommendation, metadata usage, et cetera, et cetera, and each nan things that really create a unsocial and personalized engagement experience, each those elements are each there. And I deliberation uniquely deployed, fixed that nan car is not nan surviving room contempt nan truth that I deliberation you're going to spot this expanding magnitude of contented consumed successful vehicles, peculiarly arsenic group look astatine electrical vehicles wherever you person immoderate somewhat different usage cases arsenic you deliberation astir longer stays, while cars are being charged, you person beforehand spot entertainment, each of a abrupt becoming much applicable successful that discourse is -- and you besides person nan longer tally benignant of semi autonomous aliases autonomous conveyance driving that will lead to an summation successful intermezo consumption. So successful short, early days, ace excited astir nan win. I deliberation it shows nan powerfulness of nan level arsenic we deliberation astir what we're doing successful not only nan surviving room, but ultimately, successful car and connected mobile, bringing together that intermezo acquisition that we've been moving towards for a number of years. And I deliberation we'll person a batch much to opportunity astir nan economics of this agelong word arsenic we began to do much business successful nan abstraction wherever we tin put a small much style astir it successful a measurement that does strategically discuss ongoing discussions pinch a number of folks.

Nick Zangler

I'm not judge if you're aware, but besides connected nan Roku telephone nan different day, TiVo sewage a outcry out. And truthful I sewage to ask, conscionable fixed each nan dynamics that are happening wrong nan TV OEM industry, Roku now is building retired their ain branded TV, it efficaciously will compete pinch their TV OEM partners arsenic it presently stands. Curious what effect possibly this has had connected your engagement pinch imaginable TV OEM partners and their liking successful utilizing TiVo, powered by TiVo option, which seems to beryllium a small spot much TV OEM friendly?

Jon Kirchner

I think, first and foremost, I deliberation that announcement underscores nan request for an independent media platform. And I deliberation we've had rather robust engagement anterior to that announcement but I would opportunity that announcement further, has created immoderate interest, arsenic group look to prosecute astir independent platforms. So I deliberation our model, our business model, sharing gross pinch TV partners agelong term, arsenic good arsenic our champion successful people interface and hunt and rec and whatnot really helps thrust wherever there's liking successful what we're doing. I deliberation nan different mobility that was brought up, I think, I cognize successful discourse aliases successful and astir that was a mobility astir scale. And I deliberation nan fascinating point connected nan standard mobility is that we already powerfulness much than 30 cardinal households coming pinch video based services. So we are uniquely positioned arsenic being a institution that already has a very ample video work business, doing business each complete nan world, complete decades to beryllium capable to service up an independent media platform. And I deliberation that therein lies portion of nan cardinal is that we're seen arsenic a reliable partner by TV OEMs and I deliberation group are recognizing nan independency of nan exemplary and a measurement for america each to triumph wherever they get to ain nan brand, they get to ain nan customer, we evidently stock information and they get to participate successful nan longtail of nan economics.

Nick Zangler

And past conscionable last 1 for maine connected nan fundamentals present successful nan quarter. It was a wide based hit connected nan disbursal side, conscionable comparative to nan expectations that you guys benignant of laid retired connected nan past call, and it drove important adjusted EBITDA upside comparative to your anterior expectations. So conscionable curious, it looks for illustration it's wide based. But comparative to what you guys had alluded to astatine first, what type of disbursal mitigation efforts took spot successful nan quarter? And is location immoderate push retired into adjacent twelvemonth perchance aliases conscionable thoughts connected nan dispersed I conjecture and wherever we expected expenses to rotation successful and wherever they really did?

Jon Kirchner

I would say, mostly speaking, our disbursal guidance successful nan quarter, moreover arsenic I noted connected call, is very good. And we are making bully advancement toward optimizing nan costs building of nan company, and I would expect that to proceed into 2023. But I deliberation we made bully advancement moreover during nan quarter. So I deliberation our numbers supported that, which is really a affirmative adjusted EBITDA and we expected disbursal guidance and optimization efforts to proceed arsenic we spell forward.

Operator

[Operator Instructions] Your adjacent mobility comes from Hamed Khorsand pinch BWS Financial.

Hamed Khorsand

Could you conscionable grow connected nan mobile customer that you make gross from? Is this related to nan imaging gross you talked astir a mates quarters ago, is this recurring successful quality astatine all? And what's nan anticipation of adding much mobile customers?

Jon Kirchner

The mobile customer that we referred to connected nan telephone is, and arsenic this occurred early during 2022, is simply a settling a conflict pinch that customer and besides entering into a longer word statement pinch that customer. So it was, let's say, benignant of nan champion of some worlds. And we still spot from our products a sizeable opportunity for america successful mobile done our CE products. So bully maturation outlook location successful nan future.

Hamed Khorsand

And past astir nan advertisement monetization, really are you building inventory available, what benignant of consequence are you getting from advertisers for your platform?

Jon Kirchner

I deliberation group are very willing successful nan insights we person into nan audiences we presently person crossed our various TV products that are successful household, and they're surely willing successful what we're going to beryllium capable to bring to array successful conjunction pinch that arsenic it relates to connected TV. And truthful we already -- 1 of nan different questions we sometimes get is, arsenic you're building towards a monetization model, what astir nan monetization level and motor that has to plug into these TVs, moreover if you sewage nan TVOS embedded. And nan reply is, we already person that monetization platform, we person teams moving connected it coming that could activity pinch advertisers directly, and we person infrastructure plugged into your awesome request broadside and proviso broadside platform. So successful short, we're fresh to proceed to standard that arsenic we get much footprint. And CTV has, of course, been our superior focus, because it's nan spot wherever we tin person nan biggest effect connected nan size and scope of nan footprint to really move connected nan monetization exemplary overtime.

Hamed Khorsand

And nan past mobility I had was related to connected car, you've been talking astir a batch much models lately for AutoStage. Where would you guidelines arsenic acold arsenic generating gross from astir each of those models that you talked astir successful your property release, those 100 models, is this '23 arena aliases '24 event?

Jon Kirchner

I deliberation you're going to see, surely immoderate vehicles travel online successful '23, much successful '24 and moreover much again successful '25. So these deals, commonly impact engineering that has beforehand extremity clip but past they statesman to rotation usually connected immoderate models, and past get expanded into a larger guidelines of models nether a peculiar broader shaper umbrella. So it's building and that's 1 of nan things. We've highlighted and we've recognized we are doing fantastically good astatine winning business. One of nan things nan world can't afloat spot yet is really that business will ramp complete nan adjacent three, five, 7 years. But I deliberation 1 of nan steps we took coming was to effort to supply much penetration into that indicating that our committed business pipeline complete nan adjacent mates of years is successful excess of $300 cardinal plus. And I deliberation that originates to springiness you a consciousness that we're very assured and person won rather a spot of business successful relationship pinch these programs arsenic we move done nan adjacent mates of years.

Hamed Khorsand

What percent of those models is displacement of HD Radio and what percent is marque caller arsenic acold arsenic you're concerned arsenic opportunity?

Jon Kirchner

Well, we do brands, we do business pinch each nan automotive brands sold successful nan United States, 40 positive brands. So we're not really displacing pinch AutoStage those opportunities. Rather it is simply a furniture connected apical of HD Radio successful nan United States, aliases it is simply a caller tranche of business for those manufacturers who are shipping units into different geographies wherever they're not licensing HD Radio, because HD Radio is not nan modular let’s say, successful Europe, for example. So successful those cases, nan AutoStage gross and nan deployment of AutoStage is marque caller successful those markets. So it's a operation of being an adder successful nan US and an extender, if you will, of further business and nett caller gross arsenic you look extracurricular nan United States, and much broadly successful North America.

Operator

Your adjacent mobility is from nan statement of Matthew Galinko pinch The Maxim Group.

Matthew Galinko

So connected Perceive it sounds for illustration there's still a small volatility connected really overmuch and precisely erstwhile it starts successful 2023? So I'm funny if that's conscionable nan consequence of activity that has to hap internally aliases is that your customers’ ain soul activity and spell to marketplace that leads to that mobility connected erstwhile and really much?

Jon Kirchner

I deliberation it's adjacent to qualify it, Matt, arsenic a small spot of both. I deliberation 1 of nan things that this liking successful larger models has done is successful immoderate cases it's caused group to measure wherever they are and successful immoderate cases grow their ambitions, which invariably starts nan cycle. It besides I deliberation -- and I deliberation it besides bears noting that nan quality of benignant of nan challenges successful nan broader CE abstraction and nan title astatine unit has driven a existent interest complete costs astatine nan little extremity of functionality, and I deliberation it's causing group to reassess portion of what they're reasoning astir building and wherever it fits, and that leads to immoderate uncertainty astir timing and deployment. And there's besides been inquire of america to alteration either much functionality aliases assistance group pinch different sorts of implementations. So I deliberation we're moving done each that, stay highly convicted astir nan method differentiation of nan platform, and nan liking remains very strong. And I deliberation getting that cleanable marketplace fresh and taking it guardant and precisely erstwhile and what that's going to look for illustration is going to dangle connected really fewer things autumn present arsenic we look complete nan people of nan coming quarters.

Matthew Galinko

And I conjecture conscionable a follow-up to that. With immoderate of the, I think, accrued engagement that's talked about, does nan pipeline of opportunities benignant of autumn into nan wide benignant of user electronics marketplace that you've antecedently been brushing up against aliases is location a different exploration aliases usage lawsuit that has nan imaginable to look arsenic nan first aliases 2nd aliases stronger thrust of Perceive’s adoption?

Jon Kirchner

Yes, is nan wide answer. There -- surely CE is wherever a batch of this worldly shows up. But there's -- arsenic we deliberation astir industrial, automotive and different usage cases, I deliberation having various discussions that I deliberation are going to lead to productive outcomes, I deliberation nan large mobility arsenic ever is conscionable timing and roadworthy to what that looks like.

Operator

[Operator Instructions] There are nary further questions astatine this time. I will move nan telephone backmost complete to nan institution for closing remarks.

Jon Kirchner

Thanks, operator, and acknowledgment everyone, for joining today's call. We're excited astir our maturation prospects and nan continuing momentum we spot successful our business. And I'd for illustration to convey our employees, customers and partners for helping america execute these beardown results. We look guardant to reviewing our Q1 results pinch you successful early May and I'm judge we'll spot a fewer of you successful betwixt now and then. Thanks truthful much. Have a bully day.

Operator

Ladies and gentlemen, convey you for participating. This concludes today's convention call. You whitethorn now disconnect.

Editor: Naga



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