NYSE$DLB

Dolby Laboratories Inc. · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Dolby's Q3 2024 financial results were announced, showing revenue in line with expectations.

Dolby Laboratories reported third quarter fiscal 2024 financial results with a total revenue of $288.8 million and GAAP net income of $38.4 million, or $0.40 per diluted share. The results were in line with expectations, with continued momentum in Dolby Vision and Dolby Atmos content.

  • Total revenue was $288.8 million, compared to $298.4 million for the third quarter of fiscal 2023.
  • GAAP net income was $38.4 million, or $0.40 per diluted share, compared to $16.4 million, or $0.17 per diluted share, for the third quarter of fiscal 2023.
  • Non-GAAP net income was $68.8 million, or $0.71 per diluted share, compared to $54.1 million, or $0.55 per diluted share, for the third quarter of fiscal 2023.
  • Dolby repurchased approximately 423,000 shares of its common stock.

Headline financials

Total Revenue

$289M

Previous: $298M-3.2%
EPS (adj)

$0.71

Previous: $0.55+29.1%
Capital Expenditures

-$22.6M

Previous: -$22.2M-2.1%
Free Cash Flow

$15.8M

Previous: -$5.76M+374.8%
Net Income

$38.4M

Previous: $16.4M+134.4%
Operating Income

$36.8M

Previous: $15.9M+130.8%
Gross Profit

$253M

Previous: $257M-1.4%
Cash & Equivalents

$742M

Previous: $765M-3.1%
Total Assets

$2.97B

Previous: $3.01B-1.1%
R&D Expense

$65.5M

No prior period
Stock-Based Comp

$29.3M

Previous: $29.2M+0.4%

Revenue & EPS history

Dolby · Revenue · Quarterly

$289M

Q3 2024-3.2%vs Q3 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 fourth quarter of fiscal 2024.

Tailwinds

  • Total revenue is estimated to range from $300 million to $320 million.
  • Licensing revenue is estimated to range from $275 million to $295 million.
  • Gross margins are anticipated to be approximately 88%.
  • Effective tax rate is anticipated to be around 29% on a GAAP basis and around 23% on a non-GAAP basis.
  • Diluted earnings per share is anticipated to range from $0.31 to $0.46 on a GAAP basis and from $0.61 to $0.76 on a non-GAAP basis.

Headwinds

  • Operating expenses are anticipated to range from $225 million to $235 million on a GAAP basis and from $190 million to $200 million on a non-GAAP basis.
  • Financial outlook relies 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 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.
  • Uncertainty resulting from these factors has greatly reduced its visibility into Dolby’s future outlook.
  • Estimates 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, which 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 Q3 2024

Historical avgQ3 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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