Dolby Labs Q1 beats forecasts
February 6, 2023
By Chris Forrester
Dolby Laboratories’ (DLB) Q1 numbers have impressed the market. Total Q1 revenues were $334.9 million (€310.9m), down from $351.6 million in the same period a year ago, with the revenue fall down to lower shipments in PC, broadcast, consumer electronics and gaming. However, the company continued to witness increased adoption of Dolby Atmos and Dolby Vision product lines.
Revenues from its main source Licensing division were $308 million, down from $332.3 million reported in the previous year. Products and Services’ revenues were $26.9 million compared with $19.3 million reported in the year-ago quarter.
Looking at how its revenues were achieved, its Broadcast Licensing income contributed 38 per cent to the total licensing revenues in Q1. Mobile Licensing accounted brought in 21 per cent, Consumer Electronics 18 per cent, PC Licensing 8 per cent and Licensing from Other Markets contributed 15 per cent to licensing revenues.
DLB’s gross profit in Q1 was $300.4 million compared with $318.9 million in the previous year. Total operating expenses marginally declined to $206.4 million from $228.3 million reported in the previous-year quarter. Operating income was $94 million compared with $90.5 million a year ago.
As of December 31st 2022, the company had $626.2 million in cash and cash equivalents, with $456 million in total liabilities.
Looking forward to the rest of 2023, the company expects revenues to grow in the range of low single digits year-over-year. Dolby Vision, Dolby Atmos and its imaging patents business are likely to witness growth in the range of 15-25 per cent this fiscal year, driven by continued momentum in broadcast, mobile and other markets, says the company’s guidance.