NYSE$DLB

Dolby Laboratories Inc. · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Dolby's Q2 2024 financial results were announced, revealing a slight decrease in revenue compared to the previous year, but an increase in GAAP net income.

Dolby Laboratories reported second quarter fiscal 2024 financial results, with total revenue of $364.5 million, a decrease from $375.9 million in the second quarter of fiscal 2023. GAAP net income increased to $97.8 million, or $1.01 per diluted share, compared to $95.7 million, or $0.98 per diluted share, for the same quarter last year. Non-GAAP net income also increased slightly to $123.2 million, or $1.27 per diluted share.

  • Total revenue was $364.5 million, a decrease from $375.9 million in the second quarter of fiscal 2023.
  • GAAP net income was $97.8 million, or $1.01 per diluted share, compared to $95.7 million, or $0.98 per diluted share, for the second quarter of fiscal 2023.
  • Non-GAAP net income was $123.2 million, or $1.27 per diluted share, compared to $122.6 million, or $1.26 per diluted share, for the second quarter of fiscal 2023.
  • Dolby repurchased 294 thousand shares of its common stock and ended the quarter with approximately $107 million of stock repurchase authorization available going forward.

Headline financials

Total Revenue

$365M

Previous: $376M-3.0%
EPS

$1.01

Previous: $1.26-19.8%
Diluted weighted-average shares outstanding

96.9M

No prior period
Basic weighted-average shares outstanding

95.7M

No prior period
Capital Expenditures

-$15M

Previous: -$14.7M-1.9%
Free Cash Flow

$82.8M

Previous: $81M+2.3%
Net Income

$97.8M

Previous: $95.7M+2.2%
Operating Income

$109M

Previous: $109M-0.2%
Gross Profit

$326M

Previous: $335M-2.7%
Cash & Equivalents

$710M

Previous: $688M+3.1%
Total Assets

$3.04B

Previous: $2.84B+7.4%
R&D Expense

$62.5M

No prior period
Stock-Based Comp

$28.9M

Previous: $29.8M-3.1%

Revenue & EPS history

Dolby · Revenue · Quarterly

$365M

Q2 2024-3%vs Q2 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 the third quarter of fiscal year 2024. Total revenue is estimated to range from $270 million to $300 million. Diluted earnings per share is anticipated to range from $0.21 to $0.36 on a GAAP basis and from $0.51 to $0.66 on a non-GAAP basis.

Tailwinds

  • Total revenue is estimated to range from $270 million to $300 million.
  • Licensing revenue is estimated to range from $245 million to $275 million.
  • Gross margins are anticipated to be approximately 87%.
  • Effective tax rate is anticipated to be around 24% on a GAAP basis and around 21% on a non-GAAP basis.
  • Diluted earnings per share is anticipated to range from $0.21 to $0.36 on a GAAP basis and from $0.51 to $0.66 on a non-GAAP basis.

Headwinds

  • Dolby’s financial outlook relies, in part, on estimates of royalty-based revenue that take into consideration various factors that are subject to uncertainty, including consumer demand for electronic products.
  • Actual results could differ materially from the estimates Dolby is providing below due in part to uncertainty resulting from the macroeconomic effect of certain conditions, including supply chain constraints, international conflicts, geopolitical instability, and fluctuations in inflation and interest rates.
  • The uncertainty resulting from these factors has greatly reduced its visibility into Dolby’s future outlook.
  • Estimates Dolby is providing for future periods reflect certain assumptions about the potential impact of certain of these items, based upon a consideration of currently available external and internal data and information.
  • These assumptions are subject to risks and uncertainties.

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 Q2 2024

Historical avgQ2 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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