InterDigital (IDCC) The 44th Annual William Blair Growth Stock Conference summary

Market opportunity and growth targets

• Annualized recurring revenue is just under $400 million, with a near-term target of $650 million and $400 million adjusted EBITDA at that level.

• Double-digit revenue growth, exceptional margins, and robust return on capital have been achieved.

• Revenue guidance for 2024 is $620–$670 million, more than doubling since 2019.

• Operating leverage has expanded margins from 41% to 63% adjusted EBITDA.

• $1.8 billion returned to shareholders since 2011, with a 40% reduction in share count.

Patent portfolio and innovation

• Over 30,000 patent assets, with half in wireless and a quarter in video, ranking among the strongest globally.

• Recognized as one of the 100 most innovative companies by LexisNexis for three consecutive years.

• European Patent Office ranked the company 25th in the world for active filings in 2023.

• Acquisitions, such as Technicolor, have broadened research and patent strength.

• Leadership roles in over 100 standards bodies, including 3GPP, ETSI, ATIS, and Next G Alliance.

Licensing strategy and agreements

• Transparent, fair licensing practices with most agreements reached bilaterally.

• Major agreements include Apple (2022, through 2029, nearly $1 billion), Xiaomi, and Samsung TV.

• Fixed-price agreements preferred by large customers, providing business certainty.

• Recent litigation successes against Lenovo and ongoing actions with OPPO and Vivo to increase smartphone royalty coverage.

• Targeting 85% smartphone market penetration, aiming for $500 million in smartphone royalties.