InterDigital (IDCC) 53rd Annual Nasdaq Investor Conference summary

Company evolution and leadership

• Transitioned from digital telephony to a broad research focus in wireless, video, and AI, with significant expansion after acquiring Technicolor’s research team.

• Leadership strengthened by hiring executives from Qualcomm, driving recent success and growth.

Patent portfolio and business model

• Generates nearly all patents in-house, focusing on standard essential patents (SEPs) for wireless and video technologies.

• SEPs are critical for global device interoperability, with technology present in 100% of smartphones and compensation from 85% of global sales.

• Majority of licenses are negotiated without litigation, with over 50 agreements and $4B in contract value in recent years.

Financial targets and progress

• Set a goal of $1B in annual recurring revenue (ARR) by 2030, up from $400M in 2023.

• Achieved $588M ARR within 14 months, with smartphone revenue nearing $500M, and strong growth in consumer electronics and IoT.

• Expects ARR growth to be stepwise due to large contracts and catch-up sales, making topline results choppy.