NYSE$DLB

Dolby Laboratories Inc. · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Dolby's first quarter results were in line with expectations with momentum in Dolby Atmos for cars.

Dolby Laboratories reported first quarter fiscal year 2024 financial results with a total revenue of $315.6 million and GAAP net income of $67.0 million, or $0.69 per diluted share. On a non-GAAP basis, net income was $98.6 million, or $1.01 per diluted share.

  • Total revenue was $315.6 million, compared to $334.9 million for the first quarter of fiscal 2023.
  • GAAP net income was $67.0 million, or $0.69 per diluted share, compared to GAAP net income of $79.4 million, or $0.82 per diluted share, for the first quarter of fiscal 2023.
  • Non-GAAP net income was $98.6 million, or $1.01 per diluted share, compared to $107.4 million, or $1.11 per diluted share, for the first quarter of fiscal 2023.
  • Dolby repurchased 968 thousand shares of its common stock and ended the quarter with approximately $132 million of stock repurchase authorization available going forward.

Headline financials

Total Revenue

$316M

Previous: $335M-5.8%
EPS

$0.69

Previous: $1.11-37.8%
Capital Expenditures

-$6.1M

Previous: -$7.22M+15.5%
Free Cash Flow

$60.9M

Previous: $72.2M-15.6%
Net Income

$67M

Previous: $79.4M-15.6%
Operating Income

$66.2M

Previous: $94.1M-29.6%
Gross Profit

$284M

Previous: $300M-5.6%
Cash & Equivalents

$657M

Previous: $626M+4.9%
Total Assets

$2.94B

Previous: $2.75B+6.8%
R&D Expense

$67M

No prior period
Stock-Based Comp

$31.9M

Previous: $31.2M+2.1%

Revenue & EPS history

Dolby · Revenue · Quarterly

$316M

Q1 2024-5.8%vs Q1 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Dolby · $291M total across 2 segments · Q4 2023

  • Licensing
    $265M
  • Products and services
    $25.4M

Forward guidance

Dolby provided estimates for its second quarter and full year of fiscal 2024. Total revenue for Q2 is estimated to range from $345 million to $375 million and is expected to be roughly $1.30 billion for the full year. Diluted earnings per share is anticipated to range from $0.82 to $0.97 on a GAAP basis and from $1.14 to $1.29 on a non-GAAP basis for Q2. For the full year, diluted earnings per share is anticipated to range from $2.30 to $2.45 on a GAAP basis and from $3.60 to $3.75 on a non-GAAP basis.

Tailwinds

  • Total revenue for Q2 is estimated to range from $345 million to $375 million.
  • Gross margins are anticipated to be approximately 90% for Q2.
  • Diluted earnings per share is anticipated to range from $0.82 to $0.97 on a GAAP basis for Q2.
  • Diluted earnings per share is anticipated to range from $1.14 to $1.29 on a non-GAAP basis for Q2.
  • Total revenue is expected to be roughly $1.30 billion for the full year.

Headwinds

  • Operating expenses are anticipated to range from $215 million to $225 million on a GAAP basis for Q2.
  • Operating expenses are anticipated to range from $180 million to $190 million on a non-GAAP basis for Q2.
  • Effective tax rate is anticipated to be roughly 23% on a GAAP basis for Q2.
  • Effective tax rate is anticipated to be roughly 20% on a non-GAAP basis for Q2.
  • Gross margins are anticipated to be roughly 89% for the full year.

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 Q1 2024

Historical avgQ1 2024

-0.9%

Avg return

Earnings day

-1.2%

Avg return

5 days after

-0.5%

Avg return

30 days after

43%

29 / 68 earnings

Positive

+14.9%

Q4 2024

Best reaction

-24.2%

Q3 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-10.5%-9.6%-13.0%
Q1 2026+1.8%+2.3%+5.6%
Q4 2025-0.0%+2.8%+2.0%
Q2 2025-1.9%-3.6%-2.5%
Q1 2025+8.3%+4.6%+1.2%
Q4 2024+14.9%+12.9%+8.6%
Q3 2024-7.6%-9.3%-6.9%
Q2 2024+5.8%+6.9%+4.4%
Q1 2024-3.5%-4.5%-1.0%
Q4 2023-8.0%-4.1%-1.3%
Q3 2023-9.8%-11.7%-3.2%
Q2 2023+2.3%+1.6%+0.8%
Q1 2023+7.4%+5.5%+3.8%
Q4 2022-1.5%-0.8%+1.0%
Q3 2022+0.9%+3.0%-5.7%
Q2 2022-9.0%-8.0%-0.9%
Q1 2022-13.8%-13.0%-17.7%
Q4 2021-1.0%+1.2%+4.0%
Q3 2021+1.6%+4.4%+4.7%
Q2 2021-6.2%-6.5%-7.7%
Q1 2021+1.7%+5.3%+12.7%
Q4 2020+3.8%+6.3%+8.4%
Q3 2020+1.9%+0.8%+2.0%
Q2 2020-5.1%-0.1%+8.7%
Q1 2020-0.5%+1.0%-5.3%
Q4 2019+5.6%+6.3%+3.2%
Q3 2019-13.6%-14.1%-9.6%
Q2 2019+0.8%+0.9%-4.2%
Q1 2019+3.1%+3.5%+3.7%
Q4 2018-3.0%-3.6%+0.4%
Q3 2018+5.3%-0.7%+11.7%
Q2 2018-7.6%-10.1%-8.5%
Q1 2018+8.5%+2.1%-3.7%
Q4 2017-5.3%-5.1%+4.1%
Q3 2017+2.4%-1.5%-8.0%
Q2 2017-0.1%-3.6%-3.9%
Q1 2017-1.6%-2.9%-0.7%
Q4 2016-3.4%-4.9%-5.9%
Q3 2016-1.0%-1.3%-1.1%
Q2 2016+12.3%
Q1 2016+10.7%
Q4 2015+2.8%
Q3 2015-5.7%
Q2 2015+9.5%
Q1 2015-7.9%
Q4 2014+0.7%
Q3 2014+2.0%
Q2 2014-8.7%
Q1 2014+1.5%
Q4 2013+2.1%
Q3 2013-1.3%
Q2 2013+4.6%
Q1 2013+1.3%
Q4 2012-3.5%
Q3 2012-14.9%
Q2 2012+14.3%
Q1 2012+6.4%
Q2 2011-2.2%
Q4 2011-2.2%
Q3 2011-24.2%
Q1 2011-2.2%
Q1 2010-2.2%
Q2 2010-1.0%
Q4 2008-1.0%
Q4 2010-1.0%
Q4 2009-4.5%
Q3 2010-4.5%
Q3 2009-4.5%

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