Acacia Q4 2023 Earnings Report
Key Takeaways
Acacia Research Corporation reported a significant increase in total revenues for Q4 2023, primarily driven by its Intellectual Property business. The company also saw an increase in operating income and GAAP net income compared to the same quarter last year.
Generated $92.3 million in consolidated revenue, a substantial increase from $13.1 million in Q4 2022.
The Intellectual Property business generated $82.8 million in licensing and other revenue, compared to $2.5 million in the same quarter last year.
Recorded GAAP net income of $74.8 million, or $0.75 per diluted share, compared to a net loss of $18.4 million, or $0.50 per diluted share, in Q4 2022.
Book value increased from $5.04 per share at September 30, 2023 to $5.90 at December 31, 2023.
Acacia
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Acacia Revenue by Segment
Forward Guidance
Acacia continues to advance its business strategy, focusing on driving earnings and book value per share growth through disciplined and unique methods, including acquisitions and leveraging its significant capital base.
Positive Outlook
- Continued to meaningfully advance business strategy.
- Generated $82 million in gross revenue from WiFi-6 licensing initiatives.
- Committed a portion of income and proceeds from the sale of a life science asset into a highly attractive near-term addition to oil and gas business.
- Expect to execute on additional acquisitions, including in the oil and gas space.
- Anticipate further IP-related income setting the stage for meaningful future cash flows while preserving our capital base.
Challenges Ahead
- Risks relating to price and other fluctuations in the oil and gas market.
- Environmental liability risk.
- Regulatory changes related to the oil and gas industry.
- Other risks inherent in the ownership and operation of oil and gas assets.
- Benchmark’s ability to close the Transaction.
Revenue & Expenses
Visualization of income flow from segment revenue to net income