Q3 2025 Xperi Inc Earnings Call
Speaker #4: Good day everyone . Thank you for standing by . Welcome to the expiry . Third quarter 2020 Earnings Conference call . During today's presentation , all parties will be in listen only mode .
Speaker #4: Following the presentation , the call will be open for questions . I would now like to turn the call over to Sam Levenson from Aarberg advisory Group .
Speaker #4: Sam , please go ahead .
Speaker #5: Good afternoon and thank you for joining us . As expiry reports , its third quarter 2020 financial results . With me in today's call are John Kirshner , chief Executive Officer , and Robert Anderson , chief financial officer .
Speaker #5: In addition to today's earnings release , there is an earnings presentation on our Investor Relations website at Investor . We encourage you to download the presentation and follow along with today's commentary .
Speaker #5: Before we begin , I would like to provide a few reminders . First , I would like to note that unless otherwise stated , all comparisons are to the same period in the prior year .
Speaker #5: Second , today's discussion contains forward looking statements about our anticipated business and financial performance that are predictions , projections , or other statements about future events which are based on management's current expectations and beliefs .
Speaker #5: Therefore , subject to risks , uncertainties and changes in circumstances . For more information on the risks and uncertainties that could cause our actual results to differ materially from what we discussed today , please refer to the risk factors and MDA sections in our SEC filings , including our most recent form 10-K for the year ended December 31st , 2020 .
Speaker #5: Four , and our form 10-q for the quarter ended September 30th , 2025 , to be filed with the SEC . Please note that the company does not intend to update or alter these forward looking statements to reflect events or circumstances arising after this call .
Speaker #5: Third , we refer to certain non-GAAP financial measures which are detailed in the earnings release and accompanied by reconciliations to their most directly comparable GAAP measures , which can be found in the Investor Relations section of our website .
Speaker #5: And last , a replay of this conference call will be available on our website shortly after the conclusion of this call . Now , I'll turn the call over to Xperi Inc CEO Jon Kirchner .
Speaker #6: Thank you , Sam , and thank you everyone for joining us on our third quarter 2020 earnings call . For those new to our story , we're still learning about our business .
Speaker #6: I'll start this call with a brief overview of the company and our long term goals . Expiry is a global software and services company that delivers products through our well-known brands , including TiVo , DTS , and HD radio .
Speaker #6: Our established and profitable core businesses , which include HD radio , the digital radio standard in the United States , pay TV program guides and audio licensing solutions , and home and automotive have enabled us to build a strategic , connected and synergistic platform for media monetization .
Speaker #6: We believe media monetization represents a large and attractive market opportunity , and after investment over the past several years , our growth strategies as an independent media platform are reaching an inflection point .
Speaker #6: To put that in perspective , it's important to recognize the progress we've made against the ambitious strategic goals we outlined a few years ago .
Speaker #6: Today , we have either accomplished or on , or are on a path to realize each of our strategic goals , which collectively represent a pivot for our business and creates a platform that has significant potential to grow and create long term value .
Speaker #6: Now , let me provide an overview of the progress we made during the quarter against this year's goals . Progress that continues to give us confidence that we are reaching a key inflection point as a business for media platform footprint .
Speaker #6: Our most critical growth area . We are extremely pleased with the ongoing partner rollout of our TiVo one CTV advertising platform , into the US and European markets .
Speaker #6: We achieved 30% sequential growth to finish with 4.8 million monthly active users at quarter end . The continued growth of our footprint is instrumental for us to reach larger scale in the US and the larger European countries as we work to expand monetization of the installed base .
Speaker #6: We also continue to engage new industry partners to help monetize our growing TiVo . One user base in the connected car market . Our platform footprint also continued to grow , reaching over 13 million vehicles installed with auto stage at quarter end .
Speaker #6: Importantly , as we have now built meaningful scale , we have initiated collaboration with leading audio media companies to monetize this unique and highly valuable footprint in our pay-TV business .
Speaker #6: Our video over broadband subscriber count grew 32% year over year to reach 3.2 million subscriber households . We signed important renewals with customers during the quarter that validate the market commitment to our video over broadband technologies and services .
Speaker #6: Turning to our summary financial results for the quarter , we recorded consolidated revenue of $112 million . As expected , revenue was lower than the prior year period , which had included a large minimum guarantee arrangement with Panasonic .
Speaker #6: In our pay-TV business . In the consumer electronics and connected car markets , we achieved year over year growth as planned . Our non-GAAP adjusted operating expenses decreased approximately 20% as compared to the prior year .
Speaker #6: The decrease was due primarily to our continued focus on cost transformation and from the divestiture of the perceived business . In October of last year .
Speaker #6: Our focus on cost transformation , investment alignment and improving profitability and cash flow generation has been an ongoing effort at the company . Concurrently with today's earnings release , we announced a workforce reduction of 250 employees spanning the entire business .
Speaker #6: For the third quarter . We posted $0.28 of non-GAAP earnings per share , achieved positive operating cash flow of $8 million , and recorded our second consecutive quarter of positive free cash flow at $2 million .
Speaker #6: Turning now to the media platform business , I noted earlier that we have reached 4.8 million monthly active users on the TiVo one platform , a key indicator for our business performance and one that continued to increase over the first month of the fourth quarter .
Speaker #6: Notably , more than 75% of this footprint is located in the US , and the five largest countries in Europe . Consumer and retailer feedback on TVs with the TiVo OS operating system continues to be very positive , and TiVo is powered by TiVo .
Speaker #6: Are available at a range of and price points . For example , a number of recent retailer promotions in the UK have highlighted aggressive , low pricing for TVs that feature TiVo OS , which we expect will further expand our footprint in that market .
Speaker #6: Also , in addition to sharp , a second brand sizes partner is in production and expected to deliver TVs powered by TiVo to certain US retailers before year end .
Speaker #6: We expect the U.S. distribution of smart TVs powered by TiVo to scale next year and represent national coverage by the second half of 2026.
Speaker #6: We are also pleased to announce our 10th TiVo OS TV partnership with the signing of a European brand for a leading Asia based original device manufacturer .
Speaker #6: This further validates the strong OEM interest in our cost effective built for TV independent platform across a range of partners . We believe large OEMs without their own operating system leading retail house brands and ODM producers all see unique value in being able to brand the experience , retain their first party engagement data , and participate in long term monetization .
Speaker #6: Given the significant progress we've made in establishing footprint for our TiVo , one advertising platform across many brands , we believe now would be an appropriate time to start reporting .
Speaker #6: Another key performance indicator . Average revenue per user for TiVo . One or ARPU . Our definition for ARPU is consistent with industry practice , and we calculated by dividing the trailing four quarters of monetization revenue within the media platform business by the average number of TiVo , one monthly active users .
Speaker #6: During that same period . Our monetization revenue includes all advertising and data monetization revenue from the TiVo one platform and from other parts of our media platform business .
Speaker #6: Our calculated rpu for TiVo one at the end of the quarter was $8.75 , which is approaching the $10 goal . We are working toward as we exit 2025 .
Speaker #6: And a metric that over time , we expect to continue to grow to north of $20 . Rpu growth is not expected to be linear as it is impacted by not only monetization revenue , but changes in our underlying footprint and in what quarters .
Speaker #6: More unit growth comes online . To help further our goal of growing ARPU for TiVo , one in the periods ahead , we recently signed multiple monetization partnerships , including agreements with Titan Ads , a CTV industry leader across key .
Speaker #6: You markets . Kargo , a leading CTV ad reseller in the United States and comScore , a US based media measurement leader . Moving to connected car , we continue to grow our footprint for DTS Auto Stage and had more than 13 million vehicles using this unique platform at quarter end .
Speaker #6: The vast majority of which are in North America . While this initial footprint is focused primarily on audio and data solutions , we also secured two new video based auto stage OEM programs in the quarter , one in Europe and one in Asia .
Speaker #6: Over the past two weeks , we announced and launched an updated version of the DTS Auto Stage Broadcaster portal . The world's first global in-car radio audience measurement platform .
Speaker #6: This gives radio broadcasters insights into listening patterns , allows stations to fine tune programming in near real time , and delivers advertisers accurate measurement of the audience engagement across 250 designated market areas .
Speaker #6: This level of measurement has traditionally only been available on digital streaming platforms , and enables radio stations to deliver higher value to advertisers .
Speaker #6: The technology and scale of the platform has been years in development . We have now initiated commercial discussions around measurement and data licensing with leading broadcasters and media companies to very strong interest across the industry .
Speaker #6: Separately , as auto Stage has reached significant scale , we also initiated collaboration with leading audio media companies in the US and UK to launch targeted advertising trials on the platform .
Speaker #6: We expect these ultimate partnerships will form the basis of additional revenue streams for advertising and data in terms of HD radio expansion , several radio stations , several new radio stations went on the air with HD radio , digital broadcasting , new vehicle models were launched by companies such as Audi , Hyundai , Tesla , Mercedes-Benz , and Lexus .
Speaker #6: During the quarter . Notably , we also signed a significant multi-year HD radio contract with a large Asia based tier one supplier , which is expected to help HD radio continue to grow with Japanese car brands moving to our pay TV business in the third quarter .
Speaker #6: IPTV subscribers increased 32% year over year , reaching 3.2 million households . Revenue was up 18% year over year from a mix of subscriber growth in the US and Latin America .
Speaker #6: We renewed the agreement with NCTC , the national content and technology cooperative covering over 70 operators in the US . This agreement guarantees IPTV subscriber commitments for four more years and encourages operators to launch and scale broadband TV .
Speaker #6: During the quarter , we continued to see strong interest from video over broadband operators to extend their video offerings with new , more cost effective OTT video service bundles .
Speaker #6: As a result , by quarter end , over 40 operators had committed to our TiVo broadband product and over 100,000 households had activated .
Speaker #6: We secured a multi-year renewal with Mitchell , Seaforth Cable TV , or MSC , a key partnership that impacts multiple operators in Canada and which is expected to drive our continued subscriber growth .
Speaker #6: There . Lastly , at the beginning of October , we exited the DVR hardware business under the TiVo brand , closing one innovative and industry changing chapter in the company's history .
Speaker #6: The TiVo brand will continue to empower consumers to find , watch and enjoy the content they love on innovative video over broadband and smart TV solutions .
Speaker #6: Let me next cover highlights in our consumer electronics business. During the quarter, we renewed a multi-year contract with Vestal to deploy DTS audio solutions across its TV brands.
Speaker #6: Vestal is the largest television manufacturer in Europe and an important customer and partner to Experie . Given their volumes across many brands in our Imax enhanced initiative , a partnership with Imax that brings the Imax experience into the living room , we expanded our contract with Sony Pictures to release hundreds of additional titles in Imax enhanced format , coupled with DTS X immersive audio .
Speaker #6: These titles will be available for direct distribution through free ad supported streaming television . We believe providing free access to the Imax enhanced experience offers unique value for consumers and will help our program licensing partners further differentiate their Imax enhanced products .
Speaker #6: We also expanded the Imax enhanced program in the home Projector category through new agreements with Optoma and Epson . To wrap up what we've discussed today are strategic progress is evident against the growth goals we set for the year within media platform .
Speaker #6: We expect to finish the year above 5 million monthly active users on our TiVo one platform . Further , we've achieved our goal of signing two additional partners to reach a total of ten TiVo OS partners .
Speaker #6: The RPU that we announced today of $8.75 brings us closer to our year-end goal of $10. Importantly, we've made progress in securing advertising partnerships that we expect will enable us to monetize our expanding and valuable footprint for pay-TV.
Speaker #6: Weve had considerable success in activating TiVo one through updates in North America on video over broadband devices . This effort helps us build scale in the US market to further our monetization efforts .
Speaker #6: We also achieved our goal of over 3 million subscriber households in our IPTV footprint within connected Car . We've surpassed 13 million vehicles with auto stage and expect this large and unique footprint to continue growing as new cars enter the market .
Speaker #6: Also , we've started collaborations with leading audio media companies in the US and the UK to launch targeted advertising trials on the auto Stage platform .
Speaker #6: In summary , we're confident this strategic progress sets us up for long term growth , improved profitability and increased cash flow . Let me now turn the call over to Robert to discuss our financial results .
Speaker #6: Robert .
Speaker #7: Thanks , John . I will start by reviewing the revenue results for the quarter . When excluding the impact of the perceived divestiture .
Speaker #7: Overall revenue was lower by $20 million compared to last year as expected , due to a large multi-year minimum guarantee agreement with Panasonic recorded in the prior year period .
Speaker #7: Looking at each of our primary markets , pay-TV was lower than last year by 32 million , or 39% , due primarily to last year's Panasonic agreement .
Speaker #7: Excluding all minimum guarantee agreements from the prior year period . pay-TV would have decreased on a percentage basis in the high single digits , consistent with the overall market for IPTV .
Speaker #7: Revenue grew approximately $4 million , or 18% , as subscribers continued to grow at a brisk pace , particularly in Latin America . For the consumer electronics market , excluding the impact of the perceived divestiture , revenue grew by $3 million , or 20% , due to a higher level of new agreements .
Speaker #7: This year , along with higher revenue on a per unit basis from audio technologies in game consoles in connected car , revenue was up by $9 million , or 36% , due to a higher level of long term arrangements in this year's number , including the significant Asia based program that John mentioned earlier .
Speaker #7: Revenue and media platform was approximately flat on a year over year basis . Turning to the income statement , our year over year revenue increased by approximately $2 million , driven by higher costs related to long term arrangements recorded in the quarter .
Speaker #7: non-GAAP adjusted operating expense decreased by $16 million , or approximately 20% , primarily due to reduced personnel expense . As a result of our ongoing business transformation efforts , and also from last year's divestiture of perceive .
Speaker #7: At the beginning of the fourth quarter , our adjusted EBITDA was $23 million , a 21% adjusted EBITDA margin down from last year's 31 million .
Speaker #7: As our expense decrease was more than offset by the lower revenue year over year . Our non-GAAP earnings per share was $0.28 compared to the $0.51 we posted in the third quarter last year .
Speaker #7: From a balance sheet perspective , we finished the quarter with $97 million of cash and cash equivalents , up 2 million from last quarter due to the positive free cash flow of 2 million generated in the quarter .
Speaker #7: Notably , operating cash flow was approximately $8 million in the quarter , an increase of over $12 million from the same quarter last year , due primarily to the absence this year of transaction costs related to the perceived divestiture and other restructuring costs that occurred last year .
Speaker #7: Turning now to our financial outlook , I'd like to cover two topics that are related to our outlook . First , minimum guarantee arrangements with customers .
Speaker #7: And second , the workforce reduction that we announced today , beginning with Minimum Guarantee arrangements , which for simplicity , I'll refer to as MGS .
Speaker #7: We enter into MGS with our customers to lock in certainty of value , ensure usage of the technology over multiple years , and product cycles , and to lower the company's service costs .
Speaker #7: As discussed on previous calls , the accounting standard for MGS creates difficult revenue comparisons on a quarterly basis . Since revenue is required to be recognized when the agreement is signed , the amount of revenue is generally recorded as an unbilled receivable on the balance sheet , and cash is collected over the term of the agreement .
Speaker #7: Arrangements average three years in length and cash is received when customers are billed quarterly over the duration . We have entered into . MGS over many years for audio technologies within consumer electronics , and have more recently seen customer interest in MGS in pay-TV and connected car as they offer customers benefits in product planning , supply chain management and pricing .
Speaker #7: As a percentage of revenue , milligrams comprised just over 20% of total revenue in 2020 for and are expected to be in the low 20% range for 2025 .
Speaker #7: Importantly , these MGS are term based arrangements that are typically renewed when the contract expires . For example , over the past two years , approximately 90% of the annualized dollar value of expiring contracts has been a MG contracts has been renewed .
Speaker #7: As such , we consider MG contracts to be ordinary course of business and re-occurring revenue . While MGS may cause comparability issues from one quarter to the next , we believe the locking in of key customers revenue and predictable cash flows , all with a high probability of renewal , has significant strategic value for our business over the next few years , as our business continues to move toward greater monetization and advertising revenue , we expect MGS to decrease as a percentage of overall revenue .
Speaker #7: On the second topic , we announced concurrently with today's release that we are reducing our workforce by approximately 250 people across the company .
Speaker #7: This action will impact all business and functional areas and represents approximately 15% of our workforce . We view this as an important step to improve profitability and cash flow .
Speaker #7: Generation will enable and continued investment in our primary growth areas . We expect to incur a one time expense of between 16 to $18 million of restructuring and related charges , primarily for employee severance and related costs .
Speaker #7: And substantially all of which will be completed by the end of the first half of 2026 . We expect that these reductions , once completed , will generate savings of 30 to $35 million on an annualized basis .
Speaker #7: These expense reductions are intended to help offset an expected revenue mix shift as our media platform expands in 2026 , which we expect will initially have higher cost of sales than other parts of our business .
Speaker #7: Turning now to our outlook for 2025 , we are reiterating our annual revenue guidance range of 440 to $460 million , and our adjusted EBITDA margin of 15 to 17% .
Speaker #7: While we expect to incur certain cash charges associated with the restructuring of our workforce , we also expect some cash savings in the quarter as employees depart .
Speaker #7: As such , we are not changing our outlook for operating cash flow , which is still expected to be neutral plus or -$10 million .
Speaker #7: Looking ahead , while we are not providing 2026 guidance at this point , our preliminary view is broadly consistent with consensus estimates for next year .
Speaker #7: We plan to share a more formal outlook for 2026 , when we report our fourth quarter results . That concludes our prepared remarks .
Speaker #7: Let's now open up the call for questions . Operator .
Speaker #4: Thank you . We will now begin the question and answer session . If you have dialed in and would like to ask a question , please press star one on your telephone keypad to raise your hand and join the queue .
Speaker #4: If you would like to withdraw your question , simply press star one again . We will pause for just a moment to assemble our Q&A .
Speaker #4: And your first question comes from the line of Matthew Jelenko with Maxim Group . Please go ahead .
Speaker #8: Hi , thanks for taking my questions . Can you maybe touch on the pieces that drive the initially lower gross margin in the media platform business that scales and , you know , sort of how long do you expect to kind of operate at a lower margin before you reach kind of your terminal or a mature margin ?
Speaker #6: Well , I think there's there's a couple of things going on . You know , there is , you know , a , a semi-fixed cost of operating a platform as you start to , you know , grow that business .
Speaker #6: And so that will , you know , that will hit things harder initially . But as you build scale , your marginal advertising dollars will obviously come through at higher margin .
Speaker #6: There . Are there are also , you know , various deals that we have we have done pretty customarily that help us ensure there's plenty of content , you know , on the on the platform and whatnot and other market , what I'll call market incentives that as revenue starts to emerge within that , within that business , some of those costs will be will be recognized .
Speaker #6: So I think it's elements like that . But , you know , we we have a very strong belief that over time , as you certainly build significantly more revenue scale , that you should you will see margin acceleration in that in that business .
Speaker #8: Got it . Thanks . And I guess as a follow up , as you begin to deliver targeted ads to automotive , do you expect the similar kind of individual , you know , fixed cost basis that you need to clear before contributing at a , at a higher margin level ?
Speaker #8: Or is that kind of all amortized through the same fixed cost as you do , kind of on the traditional side ?
Speaker #6: I mean , some of I would say it's it's more the latter . It it's kind of part and parcel to the platform .
Speaker #6: We've been we've been working on for some time . And I think the way to think about the opportunity there is , is that we are unlocking a level of , of measurement that currently does not exist in radio broadcast .
Speaker #6: And , you know , the interest around being able to run targeting and measurement in that space , you know , is is very high .
Speaker #6: It's obviously a sizable business , you know , and , and has been , you know , for , for a long time .
Speaker #6: But what we've been able to do now is as we've finished some of the the platform development work , and we've also seen the scale get to the point where we can offer , I think , a very compelling solution to various partners , whether it be for data or for advertising .
Speaker #6: I think we are , and this was part of , I think we're turning the corner into a really interesting next chapter . As we look ahead , you know , over the next 12 to to 24 months .
Speaker #6: And this is something that , you know , we've been working towards for some time . Part of the broader vision , but it is great to see it coming together .
Speaker #8: Great . Thank you .
Speaker #4: And the next question comes from the line of Steve Frankel with Rosenblatt . Please go ahead .
Speaker #9: Well , good afternoon , John . And congratulations on the progress in starting to scale the business . Thank you . Maybe help me with a couple numbers and for starters , I appreciate the TiVo MoU progress , but maybe tell us where that was last year in the third and fourth quarters so we can gauge it going forward .
Speaker #6: Well , that's a good question . I don't I don't have that exact number off the top of my head .
Speaker #7: Your question from a geographic standpoint , Steve .
Speaker #6: Or total MOU .
Speaker #9: Total Emma's .
Speaker #6: Much , much smaller . It has grown significant sub you know , in the the low millions .
Speaker #10: I think .
Speaker #9: Very low and and what was do you know what Rpu was last quarter . So the 875 compares to to what was the most recent data point that you gave out on that ?
Speaker #7: It's not one we have at our fingertips here , but I think it's fair to say that it would be probably . Yeah , probably pretty similar number .
Speaker #7: It just this happens when you do a 12 month lookback , when you're calculating the average revenue per user and your you're denominator actually ends up being pretty small .
Speaker #7: So we're looking at all of our monetization revenue as a business from both TiVo one and from other parts of our business .
Speaker #6: I think the expectation , Steve , is that , you know , as you start to see more monetization happening , particularly as you look into 26 and beyond , you'll start to see that number move , move northward .
Speaker #6: Although , as we said , it won't necessarily be linear because there's , you know , there's two things going on in that in that calculation .
Speaker #6: You know , the speed or the speed at which stuff is coming online in any given quarter will , relative to various , you know , monetization related deals .
Speaker #6: You may be doing in any particular given , given quarter .
Speaker #9: Okay . Let me let me take a different tack then TiVo one is scaling up nicely . What is the critical mass you need to have meaningful ad revenue generated on that platform ?
Speaker #9: Are we halfway there or .
Speaker #6: It's let me let me kind of answer . I think the the bigger question and then I'll maybe come back to another one .
Speaker #6: The the answer is we expect to see material progress on the platform . We have . And based on the visibility that we have into 26 .
Speaker #6: Footprint growth , we expect that to occur in 26 . So we feel very good about that . The the question of of how much do you need to have , you know , generally speaking , scale is important .
Speaker #6: To advertisers and the scale number is kind of different based on market . So it's different for the UK than it is for Germany or the US for that matter .
Speaker #6: But but one of the things that we are doing very proactively , you know , to address the fact that , you know , in places where scale may not fully exist immediately or even , you know , even in the near term , where people , you know , let's call it some advertisers might ideally want it .
Speaker #6: That is , pursuing partnerships where people can bring other footprint in conjunction with our inventory and successfully sell it . And I and I and I think as we've said , we've announced a number of partnerships that I think do two things .
Speaker #6: It helps provide some of that , that scale , obviously helps get our inventory into various selling pipelines without having to take , you know , lots of extra time to build out those those pipelines as well , from an ad sales perspective .
Speaker #6: But I think more than anything , it speaks to the fact that there is real interest in the industry in our inventory and footprint .
Speaker #6: And as you know , these partners who you know , who obviously deal in this space and have for some time are are keen to engage with us to to enter those partnerships and take it forward in conjunction with us .
Speaker #6: So we're not outsourcing , you know , everything we're doing on the platform , it's we're finding strategic partners in different ways and places so that we can augment and accelerate the revenue growth efforts .
Speaker #9: Okay . And then , yeah , seems very exciting that you're making progress with auto stage and early discussions around monetizing . Do you think that revenue becomes material kind of exiting 2026 , or are we ought to think about 2027 when that platform is is a monetization machine ?
Speaker #6: I think the trial , Steve , will play out through 2026 , and I certainly expect to see revenue off the platform in 26 , that in 27 .
Speaker #9: Great . Thank you so much .
Speaker #4: Thank you . And the next question comes from the line of Hamad Korsan with BW financial . Please go .
Speaker #11: Ahead .
Speaker #12: Hey , could you just talk a little bit more about these minimum guarantees and how it's becoming ? You know , you're saying it's going to be more than 20% of 20 , 25 revenue .
Speaker #12: Is that because of the competitive necessity that you have to provide such a deals ?
Speaker #6: I think I think there's there's multiple things going on . Hamid . And I think Robert touched on some of them in the script .
Speaker #6: You've got partners in many cases interested in trying to , you know , have very clear , you know , kind of windows on how they think about , you know , what their , what technology they're including in there platforms .
Speaker #6: They obviously manage their supply chains also in some cases looking for , you know , greater certainty and not having to deal with potential renegotiations .
Speaker #6: And on the flip side , we are , you know , in a similar , you know , place where we we look out and there's certainly some uncertainty in the market in these spaces .
Speaker #6: And to the extent that we can lock in our technology into various platforms for longer periods of time , lowers our service cost , gives us greater predictability .
Speaker #6: And I think the key point about them is that , you know , they're not you know , one and done , they're they're just , you know , it's kind of it's a slightly different , more committed structure to our technology and our solutions .
Speaker #6: The only thing that's different about it is , is the accounting standards require you to recognize the revenue a little bit differently than you would on a pure , you know , as you go , you know , type licensing reporting basis .
Speaker #6: So , you know , I think there's there's clear benefits on both sides . You know , and obviously visibility on both sides being , you know , one of the , one of the key ones .
Speaker #12: What was minimum guarantee a reason why the connected car revenue jumped this quarter .
Speaker #10: Yes .
Speaker #7: We had higher level of minimum guarantees this quarter than we had last year .
Speaker #12: Okay . My last question is when would you see platform revenue stabilize ? Seems like it's quite volatile . Quarter over quarter .
Speaker #7: Can you define what you mean by platform ?
Speaker #12: Well , the the media platforms are okay . The media revenue . Yeah .
Speaker #6: Yeah I , I , I think as you start to see meaningful growth in 26 , you'll see less volatility , which has to do with , you know , some of the existing what I'll call underlying parts of that number .
Speaker #6: So it'll it'll take on more stability . You know over time as the number grows . .
Speaker #10: Okay I think .
Speaker #7: If I can add on there , given that we recognize our advertising as we synonymously call it , monetization in media platform for the TiVo , one growth that we expect that to be a grower next year and going forward .
Speaker #12: Okay . Thank you .
Speaker #10: You're welcome .
Speaker #4: And we have no further questions at this time . I would like to turn it back to John for closing remarks .
Speaker #6: Thanks, Operator. We're pleased with the meaningful progress we've made in achieving nearly all of our 2025 strategic goals ahead of schedule.
Speaker #6: I want to thank the entire team for their continued focus and execution as we work to deliver long term value for our shareholders .
Speaker #6: We look forward to sharing further updates on our year end call . Thanks everyone for joining us today .