NYSE$DLB

Dolby Laboratories Inc. · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Dolby reported solid Q4 2023 financial results, with revenue increasing and strategic advancements in key technology integrations.

Dolby Laboratories announced its Q4 and full year fiscal 2023 financial results, with Q4 revenue at $290.6 million compared to $278.2 million for the fourth quarter of fiscal 2022. GAAP net income was $9.2 million, or $0.09 per diluted share, compared to GAAP net income of $27.8 million, or $0.28 per diluted share, for the fourth quarter of fiscal 2022. On a non-GAAP basis, fourth quarter net income was $63.9 million, or $0.65 per diluted share, compared to $52.8 million, or $0.54 per diluted share, for the fourth quarter of fiscal 2022.

  • Total revenue for Q4 2023 reached $290.6 million, an increase from $278.2 million in Q4 2022.
  • GAAP net income for Q4 2023 was $9.2 million, or $0.09 per diluted share.
  • Non-GAAP net income for Q4 2023 was $63.9 million, or $0.65 per diluted share.
  • Apple debuted its latest iPhones powered by Dolby Vision and Dolby Atmos.

Headline financials

Total Revenue

$291M

Previous: $278M+4.4%
EPS (adj)

$0.65

Previous: $0.54+20.4%
Capital Expenditures

$8.19M

Previous: $10.7M-23.6%
Free Cash Flow

$76.8M

Previous: $40.6M+89.2%
Net Income

$9.2M

Previous: $27.8M-66.9%
Operating Income

-$3.49M

Previous: $27.1M-112.9%
Gross Profit

$255M

Previous: $241M+5.8%
Cash & Equivalents

$745M

Previous: $620M+20.2%
Total Assets

$2.98B

Previous: $2.69B+10.8%
Stock-Based Comp

$28.2M

Previous: $27M+4.6%

Revenue & EPS history

Dolby · Revenue · Quarterly

$291M

Q4 2023+4.4%vs Q4 2022
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 first quarter and full year of fiscal 2024, but actual results could differ materially due to increased uncertainty resulting from macroeconomic events, geopolitical instability, and continuing concerns around inflation and elevated interest rates.

Tailwinds

  • Total revenue is estimated to range from $300 million to $330 million for Q1 2024.
  • Gross margins are anticipated to range from 89% to 90% for Q1 2024.
  • Diluted earnings per share is anticipated to range from $0.44 to $0.59 on a GAAP basis for Q1 2024.
  • Diluted earnings per share is anticipated to range from $0.80 to $0.95 on a non-GAAP basis for Q1 2024.
  • Total revenue is expected to be approximately $1.30 billion for FY 2024.

Headwinds

  • Actual results could differ materially from the estimates due to macroeconomic events, including supply chain constraints, international conflicts, and consumer demand for electronic products.
  • Increased uncertainty resulting from geopolitical instability.
  • Continuing concerns around inflation.
  • Elevated interest rates.
  • Reduced visibility into its future outlook.

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

-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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