NASDAQ$ACTG

Acacia Research Corporation · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Acacia reported Q4 2023 financial results, driven by intellectual property licensing and settlement agreements.

Acacia Research Corporation reported a significant increase in total revenues for Q4 2023, primarily driven by its Intellectual Property business. The company also saw an increase in operating income and GAAP net income compared to the same quarter last year.

  • Generated $92.3 million in consolidated revenue, a substantial increase from $13.1 million in Q4 2022.
  • The Intellectual Property business generated $82.8 million in licensing and other revenue, compared to $2.5 million in the same quarter last year.
  • Recorded GAAP net income of $74.8 million, or $0.75 per diluted share, compared to a net loss of $18.4 million, or $0.50 per diluted share, in Q4 2022.
  • Book value increased from $5.04 per share at September 30, 2023 to $5.90 at December 31, 2023.

Headline financials

Total Revenue

$92.3M

Previous: $13.1M+603.5%
EPS (adj)

$0.65

Previous: -$0.50+230.0%
Capital Expenditures

$37K

Previous: $180K-79.4%
Net Income

$74.8M

Previous: -$18.4M+506.5%
Operating Income

$55.9M

Previous: -$14.5M+485.5%
Gross Profit

$68.2M

Previous: $3.65M+1771.9%
R&D Expense

$142K

No prior period
Stock-Based Comp

$973K

Previous: $532K+82.9%

Revenue & EPS history

Acacia · Revenue · Quarterly

$92.3M

Q4 2023+603.5%vs Q4 2022
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

Acacia · $10.1M total across 2 segments · Q3 2023

  • Industrial Operations
    $8.32M-12.9%
  • Intellectual Property Operations
    $1.76M-72.2%

Forward guidance

Acacia continues to advance its business strategy, focusing on driving earnings and book value per share growth through disciplined and unique methods, including acquisitions and leveraging its significant capital base.

Tailwinds

  • Continued to meaningfully advance business strategy.
  • Generated $82 million in gross revenue from WiFi-6 licensing initiatives.
  • Committed a portion of income and proceeds from the sale of a life science asset into a highly attractive near-term addition to oil and gas business.
  • Expect to execute on additional acquisitions, including in the oil and gas space.
  • Anticipate further IP-related income setting the stage for meaningful future cash flows while preserving our capital base.

Headwinds

  • Risks relating to price and other fluctuations in the oil and gas market.
  • Environmental liability risk.
  • Regulatory changes related to the oil and gas industry.
  • Other risks inherent in the ownership and operation of oil and gas assets.
  • Benchmark’s ability to close the Transaction.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

-1.1%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+2.8%

Avg return

30 days after

42%

27 / 65 earnings

Positive

+20.7%

Q4 2025

Best reaction

-27.2%

Q1 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-7.3%-7.5%-8.9%
Q4 2025+20.7%+18.8%+18.1%
Q3 2025+9.4%+11.3%+12.8%
Q1 2025+15.7%+26.4%+24.8%
Q4 2024-14.5%-18.5%-31.0%
Q3 2024-8.9%-6.3%-4.9%
Q2 2024-4.8%-6.9%-2.5%
Q1 2024-1.9%+2.1%+0.2%
Q4 2023+16.3%+26.3%+25.5%
Q3 2023+1.7%+3.0%+6.1%
Q2 2023-7.2%-3.2%-5.5%
Q1 2023-1.2%+0.8%+14.5%
Q4 2022-7.5%-5.9%-16.7%
Q3 2022+2.0%+0.0%-5.3%
Q2 2022-3.0%-6.0%-16.1%
Q1 2022-3.9%-1.3%-0.9%
Q4 2021+12.3%+8.4%+12.2%
Q3 2021+5.3%-3.1%-10.2%
Q2 2021-4.9%-4.3%+9.7%
Q1 2021-5.1%+0.5%+12.6%
Q4 2020+0.7%+5.3%+0.8%
Q3 2020+1.4%-2.5%+0.0%
Q2 2020-1.0%-3.4%-7.7%
Q1 2020-0.2%-8.6%+62.9%
Q4 2019+3.6%-0.5%+14.0%
Q3 2019+14.2%+13.0%+13.8%
Q2 2019-3.6%-4.9%-14.4%
Q1 2019+1.0%+1.0%-0.6%
Q4 2018-3.2%-1.9%-1.0%
Q3 2018+2.7%+1.3%+3.7%
Q2 2018+2.6%+2.6%-7.9%
Q1 2018+1.4%+1.4%+5.5%
Q4 2017-1.4%-1.4%+2.8%
Q3 2017+6.1%+9.8%+4.9%
Q2 2017-10.0%-15.0%-17.5%
Q1 2017-4.9%-3.9%-22.5%
Q4 2016-9.6%-11.3%-3.5%
Q3 2016+1.7%-2.5%+24.4%
Q2 2016+7.6%+17.5%+16.7%
Q1 2016+4.1%
Q4 2015-21.8%
Q3 2015-14.4%
Q2 2015+9.1%
Q1 2015+12.9%
Q4 2014-3.6%
Q3 2014+1.2%
Q2 2014+16.8%
Q1 2014-0.2%
Q4 2013-6.1%
Q3 2013-25.3%
Q2 2013-12.4%
Q1 2013-27.2%
Q4 2012+3.8%
Q3 2012-0.2%
Q2 2012+1.1%
Q1 2012+2.3%
Q1 2010-2.9%
Q1 2011-2.9%
Q4 2011-2.9%
Q4 2009-2.9%
Q3 2011-6.9%
Q3 2010-6.9%
Q2 2011-1.8%
Q2 2010-1.8%
Q4 2010-1.8%

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