InterDigital (IDCC) 2024 RBC Capital Markets Global Technology, Internet, Media and Telecommunications Conference summary

Business overview and leadership

• Focuses on innovation-driven IP licensing, with a strong history in wireless communication and a large, valuable patent portfolio.

• Collaborates with industry to embed technology into standards, ensuring broad adoption across devices and sectors.

• CEO brings extensive experience from Qualcomm, emphasizing belief in IP and American innovation.

• Achieved significant business growth over the past four years.

Patent portfolio and standardization

• Holds about 32,000 patents, adding five new patents daily; two-thirds relate to standards like cellular, Wi-Fi, and video codec.

• Standard essential patents (SEPs) are core, ensuring broad infringement coverage and licensing leverage.

• Remaining patents are implementation or early-stage, potentially future SEPs.

Growth strategy and revenue targets

• Targets $1 billion in recurring revenue by 2030, with three pillars: smartphone, consumer electronics/IoT, and cloud licensing.

• Smartphone licensing aims to grow from $300M+ to $500M by 2027, with 70% of the market already under license.

• Consumer electronics/IoT segment grew from ~$20M to $90M in four years, targeting $200M by decade's end.

• Cloud (video codec) is a greenfield opportunity, targeting $300M+ in recurring revenue by 2030.

• Additional catch-up revenue from past infringement is substantial and supplements recurring revenue.