NASDAQ$IMMR

Immersion Corporation · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Immersion reported Q4 2020 results exceeding preliminary announcements, with over 40% sequential quarterly revenue growth and GAAP and Non-GAAP EPS of $0.30 and $0.29 per share respectively.

Immersion Corporation reported a strong fourth quarter with a 40% increase in revenue compared to the previous quarter. The company achieved GAAP net income of $8.1 million, or $0.30 per diluted share, and non-GAAP net income of $8.0 million, or $0.29 per diluted share. Cash and cash equivalents increased to $59.5 million.

  • Total revenues reached $10.9 million, slightly down from $11.5 million in Q4 2019.
  • GAAP operating expenses decreased by 48% to $5.7 million compared to $11.0 million in Q4 2019.
  • GAAP net income was $8.1 million, or $0.30 per diluted share, a significant increase from $1.0 million, or $0.03 per diluted share, in Q4 2019.
  • Cash and cash equivalents increased to $59.5 million as of December 31, 2020.

Headline financials

Total Revenue

$10.9M

Previous: $11.5M-4.6%
EPS (adj)

$0.29

Previous: $0.10+190.0%
Capital Expenditures

$7K

Previous: $138K-94.9%
Free Cash Flow

$3M

Previous: -$3.37M+189.1%
Net Income

$8.09M

Previous: $979K+725.9%
Operating Income

$5.24M

Previous: $478K+996.7%
Gross Profit

$10.9M

Previous: $11.4M-4.4%
Cash & Equivalents

$59.5M

Previous: $86.5M-31.2%
Total Assets

$96.1M

Previous: $125M-23.0%
Stock-Based Comp

$1.32M

Previous: $1.09M+21.0%

Revenue & EPS history

Immersion · Revenue · Quarterly

$10.9M

Q4 2020-4.6%vs Q4 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Immersion · $9.47M total across 1 segment · Q3 2023

  • Royalty and license
    $9.47M

Forward guidance

Immersion anticipates double-digit top-line and profitability growth year-over-year in 2021.

Tailwinds

  • Strong fourth quarter performance with significant revenue growth.
  • Effective control over operating expenses.
  • Innovation in next-generation haptic technology.
  • Several exciting customer wins.
  • Positive momentum entering 2021.

Headwinds

  • The effects of the COVID-19 global pandemic on the Company and its business, and on the business of its suppliers and customers
  • Unanticipated changes in the markets in which the Company operates
  • The effects of the current macroeconomic climate (especially in light of the ongoing adverse effects of the COVID-19 global pandemic)
  • Delay in or failure to achieve adoption of or commercial demand for the Company’s products or third party products incorporating the Company’s technologies
  • The inability of Immersion to renew existing licensing arrangements, or enter into new licensing arrangements on favorable terms

Historical earnings impact

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

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

-0.9%

Avg return

Earnings day

-1.0%

Avg return

5 days after

+2.6%

Avg return

30 days after

49%

31 / 63 earnings

Positive

+23.8%

Q3 2022

Best reaction

-23.0%

Q4 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026
Q3 2026+3.6%+6.7%
Q2 2026+3.6%+15.2%+11.3%
Q1 2025+5.0%+5.2%+4.1%
Q3 2025-0.1%+0.9%-7.9%
Q3 2024+7.6%+1.2%+3.3%
Q2 2024-6.5%-10.1%-16.1%
Q1 2024+9.6%+14.0%+32.0%
Q4 2023+7.7%+15.8%+10.2%
Q3 2023-8.6%-4.6%-0.1%
Q2 2023+7.8%+6.4%+0.7%
Q1 2023-6.7%-1.0%+9.2%
Q4 2022+11.9%+13.1%+20.1%
Q3 2022+23.8%+24.0%+47.4%
Q2 2022-9.2%-9.9%-0.3%
Q1 2022+20.1%+29.4%+26.0%
Q4 2021+8.5%+13.2%+13.4%
Q3 2021-23.0%-22.7%-39.4%
Q2 2021-10.9%-3.2%-1.4%
Q1 2021-7.9%-13.3%+1.3%
Q4 2020-3.3%+3.4%-3.5%
Q3 2020-1.2%-0.7%+15.4%
Q2 2020+14.1%+20.9%+30.9%
Q1 2020+1.0%-3.3%+2.9%
Q4 2019-19.5%-26.4%-27.8%
Q3 2019-6.7%-8.5%-19.4%
Q2 2019+0.5%-3.0%+2.1%
Q1 2019-18.2%-23.8%-30.1%
Q4 2018-7.4%-9.7%-16.4%
Q3 2018+1.8%-5.0%-5.2%
Q2 2018-22.3%-18.4%-16.3%
Q1 2018+9.2%+16.9%+41.4%
Q4 2017+13.3%+15.9%+19.8%
Q3 2017-4.5%-19.8%-5.5%
Q2 2017-20.5%-21.0%-12.9%
Q1 2017-10.5%-9.3%-5.0%
Q4 2016-23.0%-26.5%-22.3%
Q3 2016+8.5%+15.2%+34.6%
Q2 2016-14.6%-15.3%-0.3%
Q1 2016-3.9%
Q4 2015+16.7%
Q3 2015+11.8%
Q2 2015+17.9%
Q1 2015+3.6%
Q4 2014-1.2%
Q3 2014+0.7%
Q2 2014-21.0%
Q1 2014-7.2%
Q4 2013+6.8%
Q3 2013+7.6%
Q2 2013-0.5%
Q1 2013+20.7%
Q4 2012-5.4%
Q3 2012+5.3%
Q2 2012+7.4%
Q1 2011+3.9%
Q1 2012-0.4%
Q4 2011+5.4%
Q3 2011-11.1%
Q2 2011-18.5%
Q2 2010-18.5%
Q4 2010-3.8%
Q3 2010-9.0%
Q1 2010+4.9%

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