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Dec 31, 2020
InterDigital Q4 2020 Earnings Report
Reported a 13% year-over-year revenue growth driving a 118% increase in earnings per share.
Key Takeaways
InterDigital reported strong Q4 2020 results, with recurring revenue increasing by 15% year-over-year due to new patent license agreements. While total revenue decreased slightly due to past sales from deals signed in Q4 2019, the company saw increases in cash provided by operating activities and free cash flow.
Recurring revenue increased by 15% year-over-year, driven by six new patent license agreements.
Operating expenses increased due to one-time charges of approximately $10.0 million.
Cash provided by operating activities increased to $19.3 million.
Free cash flow increased to $10.4 million, driven by timing of collections under fixed-fee agreements.
InterDigital
InterDigital
Forward Guidance
InterDigital enters 2021 with strong licensing momentum and remains confident in its long-term opportunities as it diligently pursues agreements with remaining unlicensed companies in the handset and consumer electronics business.