Immersion (IMMR) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $99.4 million, up from $7.0 million in Q2 2023, driven by new license agreements and the acquisition of a controlling interest (42%) in Barnes & Noble Education (BNED) on June 10, 2024, with BNED's results consolidated from that date.

• Net income attributable to stockholders rose to $28.9 million ($0.89 diluted EPS) for Q2 2024, up from $7.0 million ($0.21 diluted EPS) in Q2 2023.

• Non-GAAP net income was $37.0 million ($1.14 per diluted share), up from $8.4 million ($0.26 per share) year-over-year.

• Standalone Non-GAAP stockholders' equity increased by over $50 million in 2024, reaching $236.1 million as of June 30, 2024.

• The company now operates two segments: Immersion (IP licensing) and BNED (education retail and services).

Financial highlights

• Royalty and license revenue was $52.4 million in Q2 2024, up from $7.0 million in Q2 2023.

• Total Q2 2024 revenue was $99.4 million, mainly due to new license agreements and BNED acquisition.

• Operating income for Q2 2024 was $25.4 million, compared to $3.1 million in Q2 2023.

• GAAP operating expenses rose to $33.2 million from $3.9 million year-over-year.

• Cash, cash equivalents, and current investments totaled $133.4 million as of June 30, 2024.

Outlook and guidance

• Management expects continued growth from new license agreements and expansion into the education sector via BNED.

• BNED plans to accelerate adoption of its First Day Complete program and expand e-commerce and merchandising partnerships.

• Management will focus on protecting and monetizing intellectual property and pursue thoughtful capital allocation.

• Management believes it has sufficient capital resources for the next twelve months and beyond.

• The ninth quarterly dividend of $0.045 per share will be paid on October 18, 2024, with future dividends subject to Board review.