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InterDigital (IDCC) investor relations material
InterDigital 53rd Annual Nasdaq Investor Conference summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Company evolution and business model
Evolved from digital telephony to a diversified research focus in wireless, video, and AI, with most patents generated in-house since 1972.
Leadership from former Qualcomm executives has driven significant organizational and financial progress since 2021.
Emphasizes being a research-driven company, not just a patent licensor, with a majority of licenses concluded through negotiation rather than litigation.
Invests heavily in long-term research, including 6G and future video codecs, to maintain technological leadership.
Revenue growth strategy and targets
Set a goal of $1 billion in annual recurring revenue (ARR) by 2030, up from $400 million in 2023 to $588 million in 2025.
Smartphone segment targeted for $500 million ARR by 2027, with recent deals pushing it to $490+ million.
Additional growth expected from consumer electronics ($200 million) and streaming ($300+ million), with streaming currently at zero revenue but high adoption.
Revenue growth is non-linear due to catch-up sales from new licenses, causing choppy top-line results.
Market expansion and licensing approach
Achieved 85% penetration in the global smartphone market, with ongoing efforts to license remaining major manufacturers.
Success in challenging markets like China, with a global patent strategy and licensing program.
Consumer electronics ARR has grown fivefold since 2021, with automotive and IoT also contributing through platforms like Avanci.
Focuses on bilateral negotiations for licensing, resorting to litigation only when necessary to enforce rights.
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