XPERI INC., 10-Q filed on 8/11/2023
Quarterly Report
v3.23.2
Document and Entity Information - shares
 6 Months Ended
Jun. 30, 2023
Aug. 01, 2023
Cover [Abstract]    
Entity Registrant Name XPERI INC.  
Trading Symbol XPER  
Entity Central Index Key 0001788999  
Current Fiscal Year End Date --12-31  
Entity Filer Category Non-accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company true  
Entity Ex Transition Period false  
Document Type 10-Q  
Document Period End Date Jun. 30, 2023  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q2  
Amendment Flag false  
Entity Common Stock, Shares Outstanding   43,297,075
Entity Current Reporting Status No  
Entity Interactive Data Current Yes  
Entity Shell Company false  
Entity File Number 001-41486  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 83-4470363  
Entity Address, Address Line One 2190 Gold Street  
Entity Address, City or Town San Jose  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 95002  
City Area Code 408  
Local Phone Number 519-9100  
Document Quarterly Report true  
Document Transition Report false  
Security12b Title Common Stock (par value $0.001 per share)  
Security Exchange Name NYSE  
v3.23.2
Condensed Consolidated Statements of Operations (unaudited) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Income Statement [Abstract]        
Revenue: $ 126,872 $ 126,203 $ 253,711 $ 245,092
Operating expenses:        
Cost of revenue, excluding depreciation and amortization of intangible assets 30,856 26,879 58,648 54,286
Research and development 55,701 51,372 110,557 101,572
Selling, general and administrative 56,497 50,341 114,273 100,193
Depreciation expense 4,202 5,144 8,295 10,707
Amortization expense 14,798 14,760 29,625 29,553
Impairment of long-lived assets     1,096  
Total operating expenses 162,054 148,496 322,494 296,311
Operating loss (35,182) (22,293) (68,783) (51,219)
Other income (expense), net 908 (290) 1,276 226
Loss before taxes (34,274) (22,583) (67,507) (50,993)
Provision for income taxes 5,090 8,395 4,796 10,475
Net loss (39,364) (30,978) (72,303) (61,468)
Less: net loss attributable to noncontrolling interest (969) (848) (1,908) (1,816)
Net loss attributable to the Company $ (38,395) $ (30,130) $ (70,395) $ (59,652)
Loss per share attributable to the Company:        
Basic loss per share $ (0.90) $ (0.72) $ (1.66) $ (1.42)
Diluted loss per share $ (0.90) $ (0.72) $ (1.66) $ (1.42)
Weighted-average number of shares used in net loss per share calculations - basic 42,770 42,024 42,499 42,024
Weighted-average number of shares used in net loss per share calculations - diluted 42,770 42,024 42,499 42,024
v3.23.2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Statement of Comprehensive Income [Abstract]        
Net loss $ (39,364) $ (30,978) $ (72,303) $ (61,468)
Other comprehensive income (loss):        
Change in foreign currency translation adjustment (521) (2,403) 92 (3,449)
Unrealized (loss) gain on cash flow hedges (10)   853  
Comprehensive loss (39,895) (33,381) (71,358) (64,917)
Less: comprehensive loss attributable to noncontrolling interest (969) (848) (1,908) (1,816)
Comprehensive loss attributable to the Company $ (38,926) $ (32,533) $ (69,450) $ (63,101)
v3.23.2
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Current assets:    
Cash and cash equivalents $ 112,159 $ 160,127
Accounts receivable, net 75,870 64,712
Unbilled contracts receivable, net 60,068 65,251
Prepaid expenses and other current assets 39,972 42,174
Total current assets 288,069 332,264
Unbilled contracts receivable, noncurrent 16,840 4,289
Property and equipment, net 46,357 47,827
Operating lease right-of-use assets 47,013 52,901
Intangible assets, net 235,018 264,376
Deferred tax assets 2,395 2,096
Other noncurrent assets 35,435 33,158
Total assets 671,127 736,911
Current liabilities:    
Accounts payable 11,471 14,864
Accrued liabilities 91,122 110,014
Deferred revenue 24,623 25,363
Total current liabilities 127,216 150,241
Long-term debt 50,000 50,000
Deferred revenue, noncurrent 18,126 19,129
Operating lease liabilities, noncurrent 37,821 [1] 42,666
Deferred tax liabilities 12,462 12,899
Other noncurrent liabilities 11,092 12,990
Total liabilities 256,717 287,925
Commitments and contingencies (Note 14)
Equity:    
Preferred stock: $0.001 par value; 6,000 shares authorized as of June 30, 2023 and December 31, 2022; no shares issued and outstanding as of June 30, 2023 and December 31, 2022
Common stock: $0.001 par value; 140,000 shares authorized as of June 30, 2023 and December 31, 2022; 43,214 and 42,066 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively 43 42
Additional paid-in capital 1,173,100 1,136,330
Accumulated other comprehensive loss (3,174) (4,119)
Accumulated deficit (739,230) (668,835)
Total Company stockholders' equity 430,739 463,418
Noncontrolling interest (16,329) (14,432)
Total equity 414,410 448,986
Total liabilities and equity $ 671,127 $ 736,911
[1] Future minimum lease payments exclude short-term leases as well as payments to landlords for variable common area maintenance, insurance and real estate taxes.
v3.23.2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares
Jun. 30, 2023
Dec. 31, 2022
Statement of Financial Position [Abstract]    
Preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Preferred stock, shares authorized (in shares) 6,000,000 6,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 140,000,000 140,000,000
Common stock, shares issued (in shares) 43,214,000 42,066,000
Common stock, shares outstanding (in shares) 43,214,000 42,066,000
v3.23.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Cash flows from operating activities:    
Net loss $ (72,303) $ (61,468)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation of property and equipment 8,295 10,707
Amortization of intangible assets 29,625 29,553
Stock-based compensation expense 34,059 19,176
Deferred income taxes (736) 0
Impairment of long-lived assets 1,096  
Other (105) 930
Changes in operating assets and liabilities:    
Accounts receivable (11,480) 29
Unbilled contracts receivable (7,324) 5,083
Prepaid expenses and other assets 1,106 (4,714)
Accounts payable (4,691) 3,835
Accrued and other liabilities (20,428) (19,911)
Deferred revenue (1,743) (5,474)
Net cash used in operating activities (44,629) (22,254)
Cash flows from investing activities:    
Purchases of property and equipment (6,108) (7,150)
Purchases of intangible assets (91) (73)
Net cash used in investing activities (6,199) (7,223)
Cash flows from financing activities:    
Proceeds from issuance of common stock under employee stock purchase plan 5,850  
Withholding taxes related to net share settlement of restricted awards (3,127)  
Net transfers from Former Parent   44,131
Net cash provided by financing activities 2,723 44,131
Effect of exchange rate changes on cash and cash equivalents 137 (2,092)
Net (decrease) increase in cash and cash equivalents (47,968) 12,562
Cash and cash equivalents at beginning of period 160,127 120,695
Cash and cash equivalents at end of period 112,159 133,257
Supplemental disclosure of cash flow information:    
Interest paid 1,496  
Income taxes paid, net of refunds $ 10,109 $ 8,418
v3.23.2
Condensed Consolidated Statements of Equity (Unaudited) - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-In Capital
Net Investment by Former Parent
Net Parent Company Investment
Accumulated Other Comprehensive Income (Loss)
Accumulated Deficit
Noncontrolling Interest
Beginning balance at Dec. 31, 2021 $ 1,015,957       $ 1,025,838 $ (676)   $ (9,205)
Net loss (61,468)       (59,652)     (1,816)
Foreign currency translation adjustment (3,449)         (3,449)    
Issuance of equity to noncontrolling interest 6             6
Net transfers from Former Parent 63,301       63,301      
Ending balance at Jun. 30, 2022 1,014,347     $ 1,029,487 1,029,487 (4,125)   (11,015)
Beginning balance at Mar. 31, 2022 1,018,813     1,030,704   (1,722)   (10,169)
Net loss (30,978)     (30,130)       (848)
Foreign currency translation adjustment (2,403)         (2,403)    
Issuance of equity to noncontrolling interest 2             2
Net transfers from Former Parent 28,913     28,913        
Ending balance at Jun. 30, 2022 1,014,347     $ 1,029,487 $ 1,029,487 (4,125)   (11,015)
Beginning balance at Dec. 31, 2022 448,986 $ 42 $ 1,136,330     (4,119) $ (668,835) (14,432)
Beginning balance (in shares) at Dec. 31, 2022   42,066,000            
Vesting of restricted stock units, net of tax withholding (3,127)   (3,127)          
Vesting of restricted stock units, net of tax withholding (in shares)   503,000            
Issuance of common stock under employee stock purchase plan 5,850 $ 1 5,849          
Issuance of common stock under employee stock purchase plan (in shares)   644,000            
Stock-based compensation 34,059   34,059          
Unrealized (loss) gain on cash flow hedges 853         853    
Net loss (72,303)           (70,395) (1,908)
Foreign currency translation adjustment 92         92    
Issuance of equity to noncontrolling interest     (11)         11
Ending balance at Jun. 30, 2023 $ 414,410 $ 43 1,173,100     (3,174) (739,230) (16,329)
Ending balance (in shares) at Jun. 30, 2023 43,213,000 43,213,000            
Beginning balance at Mar. 31, 2023 $ 430,574 $ 42 1,149,370     (2,643) (700,835) (15,360)
Beginning balance (in shares) at Mar. 31, 2023   42,497,000            
Vesting of restricted stock units, net of tax withholding (210)   (210)          
Vesting of restricted stock units, net of tax withholding (in shares)   72,000            
Issuance of common stock under employee stock purchase plan 5,850 $ 1 5,849          
Issuance of common stock under employee stock purchase plan (in shares)   644,000            
Stock-based compensation 18,091   18,091          
Unrealized (loss) gain on cash flow hedges (10)         (10)    
Net loss (39,364)           (38,395) (969)
Foreign currency translation adjustment (521)         (521)    
Ending balance at Jun. 30, 2023 $ 414,410 $ 43 $ 1,173,100     $ (3,174) $ (739,230) $ (16,329)
Ending balance (in shares) at Jun. 30, 2023 43,213,000 43,213,000            
v3.23.2
Insider Trading Arrangement
 6 Months Ended
Jun. 30, 2023
Trading Arr By Ind Table  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.23.2
The Company and Basis of Presentation
 6 Months Ended
Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
The Company and Basis of Presentation

NOTE 1 – THE COMPANY AND BASIS OF PRESENTATION

Xperi Spin-Off

In June 2020, Xperi Holding Corporation (“Xperi Holding,” “Adeia,” or the “Former Parent”) announced plans to separate into two independent publicly-traded companies (the “Separation”), one comprising its intellectual property (“IP”) licensing business and one comprising its product business (“Xperi Product”). On October 1, 2022, the Former Parent completed the Separation (the “Spin-Off”) through a pro-rata distribution (the “Distribution”) of all the outstanding common stock of its product-related business (formerly known as Xperi Product, and hereinafter “Xperi Inc.”, “Xperi” or the “Company”) to the stockholders of record of the Former Parent as of the close of business on September 21, 2022, the record date (the “Record Date”) for the Distribution. Each Xperi Holding stockholder of record received four shares of Xperi common stock, $0.001 par value, for every ten shares of Xperi Holding common stock, $0.001 par value, held by such stockholder as of the close of business on the Record Date. As a result of the Distribution, Xperi became an independent, publicly-traded company and its common stock is listed under the symbol “XPER” on the New York Stock Exchange. In connection with the Separation and the Distribution, Xperi Holding was renamed and continues as Adeia Inc. and also changed its stock symbol to “ADEA” on the Nasdaq Global Select Market.

Description of Business

Xperi is a leading consumer and entertainment technology company. The Company believes it creates extraordinary experiences at home and on the go for millions of consumers around the world, elevating content and how audiences connect with it in a way that is more intelligent, immersive and personal. Powering smart devices, connected cars, entertainment experiences and more, the Company has created a unified ecosystem that reaches highly engaged consumers, uncovering significant new business opportunities, now and in the future. The Company’s technologies are integrated into consumer devices and media platforms worldwide, driving increased value for partners, customers and consumers. The Company currently operates in one reportable business segment and groups its business into four categories based on the markets served: Pay-TV, Consumer Electronics, Connected Car and Media Platform.

Unaudited Interim Financial Statements

The accompanying unaudited interim condensed consolidated financial statements have been prepared by the Company in accordance with generally accepted accounting principles (“GAAP”) in the United States and the applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim financial information. The amounts as of December 31, 2022 have been derived from the Company’s annual audited financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2022, filed on March 3, 2023 (the “Form 10-K”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with such rules and regulations. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which consist of normal recurring adjustments, necessary to state fairly the financial position of the Company and its results of operations and cash flows as of and for the periods presented. These financial statements should be read in conjunction with the annual audited financial statements and notes thereto as of and for the year ended December 31, 2022, included in the Form 10-K.

The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2023 or any future period and the Company makes no representations related thereto.

In the Condensed Consolidated Balance Sheet as of December 31, 2022 included in this Form 10-Q filing, the Company has revised the long-term deferred tax liabilities and other long-term liabilities line items to correct an immaterial error in the classification of unrecognized tax benefits. The adjustment results in a $7.7 million decrease of long-term deferred tax liabilities and an increase in other long-term liabilities. The revision has no impact on total long-term liabilities as of December 31, 2022. In relation to this adjustment, the Company will revise its Consolidated Statement of Cash Flows for the year ended December 31, 2022 to decrease deferred income tax and increase accrued and other liabilities within the changes in operating assets and liabilities section by $7.7 million, with no changes to net cash from operating activities for 2022.

The Company determined that the error was not material to any of its prior annual and interim period financial statements, and correcting it had no impact on the condensed consolidated financial statements for the three and six months ended June 30, 2023.

Basis of Presentation

During the three months ended September 30, 2022, all of the assets and liabilities of the Xperi Product business had been transferred to a legal entity (the “Transfer”) under the common control of Xperi. Subsequent to this Transfer and through December 31, 2022, the Company’s financial statements and accompanying notes are prepared on a consolidated basis and include Xperi and its subsidiaries in which Xperi has a controlling financial interest. All intercompany balances and transactions are eliminated in consolidation. Prior to the Transfer, the financial statements and accompanying notes of the Xperi Product business were prepared on a combined basis and were derived from the consolidated financial statements and accounting records of the Former Parent as the Company was not historically held by a single legal entity. All intercompany balances and transactions within the combined businesses of the Company have been eliminated.

The Condensed Consolidated Balance Sheets of Xperi and its subsidiaries for the pre-Transfer periods include Former Parent’s assets and liabilities that are specifically identifiable or otherwise attributable to the Company. In the fourth quarter of 2018, the Company funded a new subsidiary, Perceive Corporation (“Perceive”), which was created to focus on delivering edge inference solutions. As of June 30, 2023, the Company owned approximately 77.0% of the outstanding equity interest of Perceive. The operating results of Perceive have been included in the Company’s condensed consolidated financial statements since the fourth quarter of 2018.

Prior to the Separation, the Company was dependent on the Former Parent for all of its working capital and financing requirements as the Former Parent used a centralized approach to cash management and financing its operations. Financial transactions relating to the Company were accounted for as equity contributions from the Former Parent on the Condensed Consolidated Balance Sheets. Accordingly, none of the Former Parent’s cash and cash equivalents were allocated to the Company for any of the periods presented, unless those balances were directly attributable to the Company. The Company reflects transfers of cash to and from the Former Parent’s cash management system within equity as a component of Net investment by Former Parent on a combined basis and as a component of net capital contribution from Former Parent on a consolidated basis. Other than the debt incurred in connection with the acquisition of Vewd Software Holdings Limited (“Vewd”) discussed in Note 9, the Former Parent’s long-term debt has not been attributed to the Company for any of the periods presented because the Former Parent’s borrowings are not the legal obligation of the Company. The cash and cash equivalents, including the Company’s capitalization from Former Parent on September 30, 2022, is expected to be sufficient to support its operations, capital expenditures and income tax payments, in addition to any investments and other capital allocation needs for at least the next 12 months from the issuance date of these condensed consolidated financial statements.

Prior to the Separation, the Condensed Consolidated Statements of Operations and Comprehensive Loss of the Company reflect allocations of general corporate expenses from the Former Parent, including, but not limited to, executive management, sales and marketing, finance, legal, information technology, employee benefits administration, stock-based compensation, treasury, risk management, procurement and other shared services. These allocations were made on a direct usage basis when identifiable, with the remainder allocated on a pro rata basis of billing, revenue, headcount or other measures as deemed appropriate. Management of the Company and Former Parent consider these allocations to be a reasonable reflection of the utilization of services by, or the benefits provided to, the Company. The allocations may not, however, reflect the expenses the Company would have incurred as a standalone company for the periods presented. Actual costs that may have been incurred if the Company had been a standalone company would depend on a number of factors, such as the chosen organizational structure, whether functions were outsourced or performed by employees and decisions with respect to areas such as facilities, information technology and operating infrastructure.
v3.23.2
Summary of Significant Accounting Policies
 6 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

There have been no significant changes in the Company’s significant accounting policies during the six months ended June 30, 2023, as compared to the significant accounting policies described in the Form 10-K.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The accounting estimates and assumptions that require management’s most significant, challenging, and subjective judgment include the estimation of licensees’ quarterly royalties prior to receiving the royalty reports, the determination of stand-alone selling price and the

transaction price in an arrangement with multiple performance obligations, the assessment of useful lives and recoverability of other intangible assets and long-lived assets, recognition and measurement of current and deferred income tax assets and liabilities, the assessment of unrecognized tax benefits, and purchase accounting resulting from business combinations. Actual results experienced by the Company may differ from management’s estimates.

Concentration of Credit and Other Risks

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company maintains cash and cash equivalents with large financial institutions, and at times, the deposits may exceed the federally insured limits. As part of its risk management processes, the Company performs periodic evaluations of the relative credit standing of these financial institutions. The Company has not sustained material credit losses from instruments held at these financial institutions. In addition, the Company has cash and cash equivalents held in international bank accounts that are denominated in various foreign currencies, and has established risk management strategies designed to minimize the impact of certain currency exchange rate fluctuations. The Company believes that any concentration of credit risk in its accounts receivable is substantially mitigated by its evaluation process, relatively short collection terms and the high level of credit worthiness of its customers. The Company performs ongoing credit evaluations of its customers’ financial condition and limits the amount of credit extended when deemed necessary but generally requires no collateral.

There were no individually significant customers accounting for 10% or more of total revenue for the three and six months ended June 30, 2023. There was one customer who accounted for more than 10% of total revenue for the three months ended June 30, 2022, whereas no single customer reached or exceeded such threshold for the six months ended June 30, 2022. As of June 30, 2023 and December 31, 2022, no single customer represented 10% or more of the Company's net balance of accounts receivable.

Recent Accounting Pronouncements

There have been no recently issued accounting pronouncements that are expected to have a material impact on the Company’s condensed consolidated financial statements.
v3.23.2
Revenue
 6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue

NOTE 3 – REVENUE

Revenue Recognition

The Company derives the majority of its revenue from licensing its technology (”Technology License”) and solutions (”Technology Solutions”) to customers. For Technology License arrangements, the customer obtains rights to the technology delivered at the commencement of the agreement. For Technology Solutions arrangements, the customer receives access to a platform, media or data that includes frequent updates, where access to such updates is critical to the functionality of the technology. The timing of when performance obligations are satisfied, as well as the fee arrangements underlying each agreement, determine when revenue is recognized.

The Company also generates revenue from non-recurring engineering (“NRE”) services, advertising, and hardware products, each of which was less than 10% of total revenue for all periods presented.

Disaggregation of Revenue

The following table summarizes revenue by market (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Pay-TV

 

$

58,031

 

 

$

60,371

 

 

$

118,325

 

 

$

124,525

 

Consumer Electronics

 

 

31,716

 

 

 

39,493

 

 

 

68,451

 

 

 

67,583

 

Connected Car

 

 

23,474

 

 

 

20,855

 

 

 

44,022

 

 

 

40,574

 

Media Platform

 

 

13,651

 

 

 

5,484

 

 

 

22,913

 

 

 

12,410

 

Total revenue

 

$

126,872

 

 

$

126,203

 

 

$

253,711

 

 

$

245,092

 

The following table summarizes revenue by geographic location (in thousands):

 

 

 

Three Months Ended June 30,

 

 

 

2023

 

 

2022

 

U.S.

 

$

69,133

 

 

 

54

%

 

$

78,409

 

 

 

62

%

Japan

 

 

18,566

 

 

 

15

 

 

 

16,494

 

 

 

13

 

China

 

 

10,527

 

 

 

8

 

 

 

4,163

 

 

 

3

 

Europe and Middle East

 

 

8,416

 

 

 

7

 

 

 

7,048

 

 

 

6

 

Other

 

 

20,230

 

 

 

16

 

 

 

20,089

 

 

 

16

 

Total revenue

 

$

126,872

 

 

 

100

%

 

$

126,203

 

 

 

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

U.S.

 

$

134,292

 

 

 

53

%

 

$

138,080

 

 

 

56

%

Japan

 

 

36,061

 

 

 

14

 

 

 

32,044

 

 

 

13

 

China

 

 

22,037

 

 

 

9

 

 

 

14,455

 

 

 

6

 

Europe and Middle East

 

 

18,582

 

 

 

7

 

 

 

18,736

 

 

 

8

 

Other

 

 

42,739

 

 

 

17

 

 

 

41,777

 

 

 

17

 

Total revenue

 

$

253,711

 

 

 

100

%

 

$

245,092

 

 

 

100

%

A significant portion of the Company’s revenue is derived from licensees headquartered outside of the U.S., principally in Asia, Europe and the Middle East, and it is expected that this revenue will continue to account for a significant portion of total revenue in future periods.

Contract Balances

Contract Assets

Contract assets primarily consist of unbilled contracts receivable that are expected to be received from customers in future periods, where the revenue recognized to date exceeds the amount billed. The amount of unbilled contracts receivable may not exceed their net realizable value and is classified as noncurrent if the payments are expected to be received more than one year from the reporting date. Contract assets also include the incremental costs of obtaining a contract with a customer principally consisting of sales commissions and deferred engineering costs for non-recurring engineering.

Contract assets were recorded in the Condensed Consolidated Balance Sheets as follows (in thousands):

 

 

June 30, 2023

 

 

December 31, 2022

 

Unbilled contracts receivable, net

 

$

60,068

 

 

$

65,251

 

Other current assets

 

 

534

 

 

 

848

 

Unbilled contracts receivable, noncurrent

 

 

16,840

 

 

 

4,289

 

Other noncurrent assets

 

 

799

 

 

 

978

 

Total contract assets

 

$

78,241

 

 

$

71,366

 

 

Contract Liabilities

Contract liabilities are mainly comprised of deferred revenue related to technology solutions arrangements, multi-period licensing, and other offerings for which the Company is paid in advance while the promised good or service is transferred to the customer at a future date or over time. Deferred revenue also includes amounts received related to professional services to be performed in the future. Deferred revenue arises when cash payments are received, including amounts which are refundable, in advance of performance obligations being completed. As of June 30, 2023 and December 31, 2022, the current and noncurrent balances of deferred revenue were $42.7 million and $44.5 million, respectively.

The following table presents additional revenue disclosures (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Revenue recognized in the period from:

 

 

 

 

 

 

 

 

 

 

 

 

Amounts included in deferred revenue at the beginning of
   the period

 

$

5,547

 

 

$

6,269

 

 

$

12,266

 

 

$

14,601

 

Performance obligations satisfied in previous periods (true
   ups, licensee reporting adjustments and settlements) (1)(2)

 

$

597

 

 

$

20,830

 

 

$

(1,285

)

 

$

20,866

 

(1) True ups represent the differences between the Company’s quarterly estimates of per-unit royalty revenue and actual production/sales-based royalties reported by licensees in the following period. Licensee reporting adjustments represent corrections or revisions to previously reported per-unit royalties by licensees, generally resulting from the Company’s inquiries or compliance audits. Settlements represent resolutions of litigation or disputes during the period for past royalties owed.

(2) For the three and six months ended June 30, 2022, the Company recorded revenue from both the settlement of a contract dispute with a large mobile imaging customer, and the execution of a long-term license agreement with a leading consumer electronics and over-the-top service provider. The long-term license agreement was effective as of the expiration of the prior agreement, and the Company expected to record revenue from the license agreement in future periods.

Remaining Performance Obligations

Remaining revenue under contracts with performance obligations represents the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied or partially unsatisfied under certain of the Company’s fixed fee arrangements and engineering services contracts. As of June 30, 2023, the Company’s remaining revenue under contracts with performance obligations was as follows (in thousands):

 

Year Ending December 31:

 

Amounts

 

2023 (remaining 6 months)

 

$

32,688

 

2024

 

 

30,962

 

2025

 

 

17,592

 

2026

 

 

6,173

 

2027

 

 

1,633

 

Thereafter

 

 

1,412

 

Total

 

$

90,460

 

Allowance for Credit Losses

The allowance for credit losses, which includes the allowance for accounts receivable and unbilled contracts receivable, represents the Company’s best estimate of lifetime expected credit losses inherent in those financial assets. The Company’s lifetime expected credit losses are determined based on historical experience, relevant information about past events, current conditions, and reasonable and supportable forecasts that affect collectability. The Company monitors its credit exposure through ongoing credit evaluations of its customers’ financial condition and limits the amount of credit extended when deemed necessary. In addition, the Company performs routine credit management activities such as timely account reconciliations, dispute resolution, and payment confirmations. The Company may employ collection agencies and legal counsel to pursue recovery of defaulted receivables.

The Company’s noncurrent unbilled contracts receivable is derived from fixed-fee or minimum-guarantee arrangements, primarily with large well-capitalized companies. It is generally considered to be of high credit quality due to past collection history and the nature of the customers.

The following table presents the activity in the allowance for credit losses for the three and six months ended June 30, 2023 and 2022 (in thousands):

 

 

 

Three Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

 

Accounts Receivable

 

 

Unbilled Contracts Receivable

 

 

Accounts Receivable

 

 

Unbilled Contracts Receivable

 

Beginning balance

 

$

2,067

 

 

$

350

 

 

$

1,962

 

 

$

369

 

Provision for credit losses

 

 

186

 

 

 

(25

)

 

 

201

 

 

 

(63

)

Recoveries/charge-off

 

 

(41

)

 

 

—

 

 

 

(358

)

 

 

—

 

Ending balance

 

$

2,212

 

 

$

325

 

 

$

1,805

 

 

$

306

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

 

Accounts Receivable

 

 

Unbilled Contracts Receivable

 

 

Accounts Receivable

 

 

Unbilled Contracts Receivable

 

Beginning balance

 

$

1,950

 

 

$

369

 

 

$

2,245

 

 

$

480

 

Provision for credit losses

 

 

322

 

 

 

(44

)

 

 

21

 

 

 

(174

)

Recoveries/charge-off

 

 

(60

)

 

 

—

 

 

 

(461

)

 

 

—

 

Ending balance

 

$

2,212

 

 

$

325

 

 

$

1,805

 

 

$

306

 
v3.23.2
Composition of Certain Financial Statement Captions
 6 Months Ended
Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Composition of Certain Financial Statement Captions

NOTE 4 – COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS

Prepaid expenses and other current assets consisted of the following (in thousands):

 

 

 

June 30, 2023

 

 

December 31, 2022

 

Prepaid income tax

 

$

2,170

 

 

$

1,777

 

Prepaid expenses

 

 

18,444

 

 

 

20,001

 

Finished goods inventory

 

 

8,068

 

 

 

6,662

 

Other

 

 

11,290

 

 

 

13,734

 

Total

 

$

39,972

 

 

$

42,174

 

 

Property and equipment, net, consisted of the following (in thousands):

 

 

 

June 30, 2023

 

 

December 31, 2022

 

Equipment, furniture and other

 

$

84,501

 

 

$

78,976

 

Building and improvements

 

 

18,331

 

 

 

18,331

 

Land

 

 

5,300

 

 

 

5,300

 

Leasehold improvements

 

 

16,743

 

 

 

17,038

 

Total property and equipment

 

 

124,875

 

 

 

119,645

 

Less: accumulated depreciation and amortization

 

 

(78,518

)

 

 

(71,818

)

Property and equipment, net

 

$

46,357

 

 

$

47,827

 

Accrued liabilities consisted of the following (in thousands):

 

 

 

June 30, 2023

 

 

December 31, 2022

 

Employee compensation and benefits

 

$

31,504

 

 

$

53,546

 

Third-party royalties

 

 

9,224

 

 

 

7,620

 

Accrued expenses

 

 

26,986

 

 

 

22,928

 

Current portion of operating lease liabilities

 

 

15,592

 

 

 

17,195

 

Accrued income tax

 

 

635

 

 

 

4,926

 

Other

 

 

7,181

 

 

 

3,799

 

Total

 

$

91,122

 

 

$

110,014

 

 

 

Accumulated other comprehensive loss (“AOCI”) consisted of the following (in thousands):

 

 

 

Three Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

 

Unrealized Gains (Losses) on Cash Flow Hedges

 

 

Foreign Currency Translation Adjustment

 

 

Total

 

 

Foreign Currency Translation Adjustment

 

 

Total

 

Beginning balance

 

$

769

 

 

$

(3,412

)

 

$

(2,643

)

 

$

(1,722

)

 

$

(1,722

)

Other comprehensive income (loss) before reclassification

 

 

322

 

 

 

(521

)

 

 

(199

)

 

 

(2,403

)

 

 

(2,403

)

Amounts reclassified from accumulated other comprehensive loss into net loss

 

 

(332

)

 

 

—

 

 

 

(332

)

 

 

—

 

 

 

—

 

Net current period other comprehensive (loss)

 

 

(10

)

 

 

(521

)

 

 

(531

)

 

 

(2,403

)

 

 

(2,403

)

Ending balance

 

$

759

 

 

$

(3,933

)

 

$

(3,174

)

 

$

(4,125

)

 

$

(4,125

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

 

Unrealized Gains (Losses) on Cash Flow Hedges

 

 

Foreign Currency Translation Adjustment

 

 

Total

 

 

Foreign Currency Translation Adjustment

 

 

Total

 

Beginning balance

 

$

(94

)

 

$

(4,025

)

 

$

(4,119

)

 

$

(676

)

 

$

(676

)

Other comprehensive income (loss) before reclassification

 

 

1,181

 

 

 

92

 

 

 

1,273

 

 

 

(3,449

)

 

 

(3,449

)

Amounts reclassified from accumulated other comprehensive loss into net loss

 

 

(328

)

 

 

—

 

 

 

(328

)

 

 

—

 

 

 

—

 

Net current period other comprehensive income (loss)

 

 

853

 

 

 

92

 

 

 

945

 

 

 

(3,449

)

 

 

(3,449

)

Ending balance

 

$

759

 

 

$

(3,933

)

 

$

(3,174

)

 

$

(4,125

)

 

$

(4,125

)
v3.23.2
Financial Instruments
 6 Months Ended
Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]  
Financial Instruments

NOTE 5 – FINANCIAL INSTRUMENTS

Non-marketable Equity Securities

As of June 30, 2023 and December 31, 2022, other noncurrent assets included equity securities accounted for under the equity method with a carrying amount of $4.7 million and $4.4 million, respectively. No impairments to the carrying amount of the Company’s non-marketable equity securities were recognized in the three and six months ended June 30, 2023 and 2022.

Derivatives Instruments

In the fourth quarter of 2022, the Company initiated a foreign exchange hedging strategy to hedge local currency expenses and reduce variability associated with anticipated cash flows. The Company’s derivative financial instruments consist of foreign currency forward contracts. The maturities of these instruments are generally less than twelve months. Fair values for derivative financial instruments are based on prices computed using third-party valuation models and are classified as Level 2 in accordance with the three-level hierarchy of fair value measurements. All the significant inputs to the third-party valuation models are observable in active markets. Inputs include current market-based parameters such as forward rates, yield curves and credit default swap pricing. For additional information related to the three-level hierarchy of fair value measurements, see Note 6—Fair Value.

The notional and fair values of all derivative financial instruments were as follows (in thousands):

 

 

June 30, 2023

 

 

December 31, 2022

 

Derivative instruments in cash flow hedges (foreign exchange contracts):

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Other current assets

 

$

759

 

 

$

—

 

Liabilities

 

 

 

 

 

 

Accrued liabilities

 

 

—

 

 

 

94

 

Total fair value

 

$

759

 

 

$

94

 

Total notional value

 

$

50,880

 

 

$

52,197

 

Undesignated derivative instruments (foreign exchange contracts):

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Other current assets

 

$

464

 

 

$

—

 

Liabilities

 

 

 

 

 

 

Accrued liabilities

 

 

—

 

 

 

41

 

Total fair value

 

$

464

 

 

$

41

 

Total notional value

 

$

7,149

 

 

$

7,402

 

All of the Company’s derivative financial instruments are eligible for netting arrangements that allow the Company and its counterparty to net settle amounts owed to each other. Derivative assets and liabilities that can be net settled under these arrangements have been presented in the Company's Condensed Consolidated Balance Sheets on a net basis.

The gross amounts of the Company’s foreign currency forward contracts and the net amounts recorded in the Company’s Condensed Consolidated Balance Sheets were as follows (in thousands):

 

 

June 30, 2023

 

 

December 31, 2022

 

Gross amount of recognized assets

$

1,320

 

 

$

—

 

Gross amount of recognized liabilities

 

(97

)

 

 

(135

)

Net amount presented in the Condensed Consolidated Balance Sheets

$

1,223

 

 

$

(135

)

Cash Flow Hedges

The Company designates certain foreign currency forward contracts as hedging instruments pursuant to Accounting Standards Codification (“ASC”) No. 815—Derivatives and Hedging. The effective portion of the gain or loss on the derivatives are reported as a component of AOCI in stockholders’ equity and reclassified into earnings on the Condensed Consolidated Statements of Operations in the period upon which the hedged transactions are settled. For information on the unrealized gain or loss on the derivatives included in and reclassified out of the AOCI into Condensed Consolidated Statements of Operations, refer to Note 4—Composition of Certain Financial Statement Captions.

The following table summarizes the gains recognized upon settlement of the hedged transactions in the Condensed Consolidated Statement of Operations for three and six months ended June 30, 2023 (in thousands):

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

Research and development

 

$

403

 

 

$

414

 

Selling, general and administrative

 

 

59

 

 

 

63

 

Total

 

$

462

 

 

$

477

 

Undesignated Derivatives

For derivatives that are not designated as hedge instruments, they are measured and reported at fair value as a derivative asset or liability in the Condensed Consolidated Balance Sheets with their corresponding change in the fair value recognized as gains or losses in other income (expense), net, in the Condensed Consolidated Statements of Operations. For the three and six months ended June 30, 2023, gains on the undesignated derivatives were $0.5 million and $0.7 million, respectively.

v3.23.2
Fair Value
 6 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Fair Value

NOTE 6 – FAIR VALUE

The Company follows the authoritative guidance for fair value measurement and the fair value option for financial assets and financial liabilities. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability, or an exit price, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value:

 

Level 1

Quoted prices in active markets for identical assets.

 

 

Level 2

Observable market-based inputs or unobservable inputs that are corroborated by market data.

 

 

Level 3

Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

When applying fair value principles in the valuation of assets, the Company is required to maximize the use of quoted market prices and minimize the use of unobservable inputs. The Company calculates the fair value of its Level 1 and Level 2 instruments based on the exchange traded price of similar or identical instruments, where available, or based on other observable inputs.

The Company’s derivative financial instruments, consisting of foreign currency forward contracts, are reported at fair value and classified as Level 2 (as described in Note 5—Financial Instruments).

Financial Instruments Not Recorded at Fair Value

The Company’s long-term debt is carried at historical cost and is measured at fair value on a quarterly basis for disclosure purposes. The carrying amounts and estimated fair values were as follows (in thousands):

 

 

 

June 30, 2023

 

 

December 31, 2022

 

 

 

Carrying
Amount

 

 

Estimated
Fair Value

 

 

Carrying
Amount

 

 

Estimated
Fair Value

 

Senior Unsecured Promissory Note

 

$

50,000

 

 

$

49,093

 

 

$

50,000

 

 

$

48,478

 

 

If reported at fair value in the Condensed Consolidated Balance Sheets, the Company’s debt would be classified within Level 2 of the fair value hierarchy. The fair value of the debt was estimated based on the quoted market prices for the same or similar issues.

For more detail related to the senior unsecured promissory note, refer to Note 9—Debt.

Non-Recurring Fair Value Measurements

For purchase accounting related fair value measurements, see Note 7—Business Combination.
v3.23.2
Business Combination
 6 Months Ended
Jun. 30, 2023
Business Combinations [Abstract]  
Business Combination

NOTE 7 – BUSINESS COMBINATION

On July 1, 2022, the Company completed the acquisition of Vewd (the “Vewd Acquisition”). Vewd is a leading global provider of OTT and hybrid TV solutions. The Vewd Acquisition established the Company as a leading independent streaming media platform through its TiVo brand and the largest independent provider of Smart TV middleware globally. The total consideration was approximately $102.9 million, consisting of approximately $52.9 million of cash and $50.0 million of debt. Refer to Note 9—Debt for additional information on this debt.

Purchase Price Allocation

The Vewd Acquisition has been accounted for as a business combination, using the acquisition method. The following table presents the allocation of the purchase price to the identifiable assets acquired and liabilities assumed based on the fair values at the acquisition date with no measurement period adjustments identified (amounts in thousands, except estimated useful life):

 

 

 

Estimated Useful
 Life (years)

 

 

 

 

Final
Fair Value

 

Cash and cash equivalents

 

 

 

 

 

 

$

2,684

 

Accounts receivable

 

 

 

 

 

 

 

3,341

 

Unbilled contracts receivable

 

 

 

 

 

 

 

2,335

 

Other current assets

 

 

 

 

 

 

 

1,208

 

Property and equipment

 

 

 

 

 

 

 

443

 

Operating lease right-of-use assets

 

 

 

 

 

 

 

2,020

 

Identifiable intangible assets:

 

 

 

 

 

 

 

 

Technology

 

7

 

$

28,050

 

 

 

 

Customer relationships – large

 

7

 

 

4,900

 

 

 

 

Customer relationships – small

 

4

 

 

3,500

 

 

 

 

Non-compete agreements

 

2

 

 

870

 

 

 

 

Trade name

 

5

 

 

830

 

 

 

 

Total identifiable intangible assets

 

 

 

 

 

 

 

38,150

 

Goodwill

 

 

 

 

 

 

 

68,115

 

Other long-term assets

 

 

 

 

 

 

 

977

 

Accounts payable

 

 

 

 

 

 

 

(869

)

Accrued liabilities

 

 

 

 

 

 

 

(4,777

)

Deferred revenue

 

 

 

 

 

 

 

(920

)

Long-term deferred tax liabilities

 

 

 

 

 

 

 

(8,393

)

Noncurrent operating lease liabilities

 

 

 

 

 

 

 

(1,094

)

Other long-term liabilities

 

 

 

 

 

 

 

(307

)

Total purchase price

 

 

 

 

 

 

$

102,913

 

 

 

 

 

 

 

 

 

 

Vewd’s results of operations and cash flows have been included in the Company’s condensed consolidated financial statements for periods subsequent to July 1, 2022, and the related assets and liabilities were recorded at their estimated fair values in the Company’s Condensed Consolidated Balance Sheet as of July 1, 2022.
v3.23.2
Goodwill And Intangible Assets, Net
 6 Months Ended
Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill And Intangible Assets, Net

NOTE 8 – GOODWILL AND INTANGIBLE ASSETS, NET

Goodwill impairment

During the three months ended September 30, 2022, indicators of potential impairment for the Former Parent’s Product reporting unit were identified such that management concluded it was more-likely-than-not that goodwill was impaired and a quantitative interim goodwill impairment assessment should be performed as of September 30, 2022. Indicators of potential impairment included a sustained decline in the Former Parent’s stock price during the second half of the third quarter of 2022 reflective of rising interest rates and continued decline in macroeconomic conditions. The Company proceeded to perform a fair value analysis of the Product reporting unit using the market capitalization approach. Under this approach, management estimated the fair value of the Product reporting unit as of September 30, 2022 using quoted market prices of Xperi’s common stock, over its first ten trading days following the Separation, and a control premium representing the synergies a market participant would achieve upon obtaining control of Xperi. As a result of the fair value analysis, the Company recognized a goodwill impairment charge of $354.0 million during the three months ended September 30, 2022. Leveraging the aforementioned fair value assessment, the Company also completed its annual goodwill impairment test as of October 1, 2022 using the financial information as of September 30, 2022.

During the three months ended December 31, 2022, sufficient indicators of potential impairment were identified such that management concluded it was more-likely-than-not that goodwill was impaired and a quantitative interim goodwill impairment test should be performed as of December 31, 2022. Indicators of potential impairment included a significant, sustained decline in the trading price of Xperi’s common stock during the fourth quarter of 2022. The Company proceeded to perform a fair value analysis of the Product reporting unit, the Company's only reporting unit, using the market capitalization approach. Under this approach, management estimated the fair value as of December 31, 2022 using quoted market prices of Xperi’s common stock as of December 30, 2022, the last trading date of 2022, and a control premium representing the synergies a market participant would achieve upon obtaining control of Xperi. As a result of the fair value analysis, a goodwill impairment charge of $250.6 million was recognized during the three months ended December 31, 2022. As a result of this impairment charge, the Company’s goodwill balance was completely written off as of December 31, 2022.

Identified intangible assets consisted of the following (in thousands):

 

 

 

June 30, 2023

 

 

 

Average Life
(Years)

 

Gross Amount

 

 

Accumulated
Amortization

 

 

Net Carrying Value

 

Finite-lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

Acquired patents

 

3-10

 

$

22,189

 

 

$

(7,281

)

 

$

14,908

 

Existing technology / content database

 

5-10

 

 

241,077

 

 

 

(197,040

)

 

 

44,037

 

Customer contracts and related relationships

 

3-9

 

 

502,391

 

 

 

(355,523

)

 

 

146,868

 

Trademarks/trade name

 

4-10

 

 

39,613

 

 

 

(32,243

)

 

 

7,370

 

Non-competition agreements

 

1-2

 

 

3,101

 

 

 

(2,666

)

 

 

435

 

Total finite-lived intangible assets

 

 

 

 

808,371

 

 

 

(594,753

)

 

 

213,618

 

Indefinite-lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

TiVo tradename/trademarks

 

N/A

 

 

21,400

 

 

 

—

 

 

 

21,400

 

Total intangible assets

 

 

 

$

829,771

 

 

$

(594,753

)

 

$

235,018

 

 

 

 

 

December 31, 2022

 

 

 

Average Life
(Years)

 

Gross Amount

 

 

Accumulated
Amortization

 

 

Net Carrying Value

 

Finite-lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

Acquired patents

 

3-10

 

$

22,189

 

 

$

(6,175

)

 

$

16,014

 

Existing technology / content database

 

5-10

 

 

240,894

 

 

 

(190,671

)

 

 

50,223

 

Customer contracts and related relationships

 

3-9

 

 

502,188

 

 

 

(335,981

)

 

 

166,207

 

Trademarks/trade name

 

4-10

 

 

39,613

 

 

 

(29,733

)

 

 

9,880

 

Non-competition agreements

 

1-2

 

 

3,101

 

 

 

(2,449

)

 

 

652

 

Total finite-lived intangible assets

 

 

 

 

807,985

 

 

 

(565,009

)

 

 

242,976

 

Indefinite-lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

TiVo tradename/trademarks

 

N/A

 

 

21,400

 

 

 

—

 

 

 

21,400

 

Total intangible assets

 

 

 

$

829,385

 

 

$

(565,009

)

 

$

264,376

 

As of June 30, 2023, the estimated future amortization expense of total finite-lived intangible assets was as follows (in thousands):

 

Year Ending December 31:

 

 

 

2023 (remaining 6 months)

 

$

28,143

 

2024

 

 

43,388

 

2025

 

 

34,817

 

2026

 

 

31,493

 

2027

 

 

30,650

 

Thereafter

 

 

45,127

 

Total future amortization

 

$

213,618

 
v3.23.2
Debt
 6 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
Debt

NOTE 9 – DEBT

In connection with the Vewd Acquisition as disclosed in Note 7, on July 1, 2022, TiVo Product Holdco LLC, which was subsequently renamed Xperi Inc., issued a senior unsecured promissory note (the “Promissory Note”) to the sellers of Vewd in a principal amount of $50.0 million. Indebtedness outstanding under the Promissory Note bears an interest rate of 6.00% per annum, payable in cash on a quarterly basis. If a certain qualified spin-off transaction occurs, the interest rate will be increased to the greater of (a) 6.00% and (b) the sum of (i) the highest interest rate payable under any credit facility or bonds, debentures, notes or similar instruments where the issuer or any guarantor borrows money or guarantees obligations on a secured basis on or after the date of such spin-off transaction, plus (ii) 2.00%. It was determined that the Spin-Off completed on October 1, 2022 did not trigger any change in the interest rate of the debt. The Promissory Note matures on July 1, 2025. The Company may, at any time and on any one or more occasions, prepay all or any portion of the outstanding principal amount, plus accrued and unpaid interest, if any, under the Promissory Note without premium or penalty. In addition, the Promissory Note has mandatory prepayment provisions upon certain change of control or asset sale events.

The Promissory Note includes certain covenants that restrict the Company and each guarantor’s ability to, among other things, incur certain indebtedness or engage in any material line of business substantially different from those lines of business conducted by such entities on the closing date of the acquisition. The Promissory Note does not contain any financial covenants.

As of June 30, 2023, $50.0 million in principal balance was outstanding. Interest expense on the Promissory Note was $0.8 million and $1.5 million for the three and six months ended June 30, 2023, respectively.
 
v3.23.2
Net Loss Per Share
 6 Months Ended
Jun. 30, 2023
Earnings Per Share [Abstract]  
Net Loss Per Share

NOTE 10 – NET LOSS PER SHARE

On October 1, 2022, 42,023,632 shares of the Company’s common stock, par value $0.001 per share, were distributed to the Former Parent’s stockholders of record as of September 21, 2022. This share amount is utilized for the calculation of basic and diluted earnings per share for all periods presented prior to the Separation and such shares are treated as issued and outstanding for purposes of calculating historical loss per share. For periods prior to the Separation, it is assumed that there are no dilutive equity instruments as there were no Xperi Inc. stock-based awards outstanding prior to the Separation.

For periods subsequent to the Separation, actual outstanding shares are used to calculate both basic and diluted weighted- average number of common shares outstanding. Potentially dilutive common shares, such as common shares issuable upon exercise of stock options and vesting of restricted stock awards and units are typically reflected in the computation of diluted net income per share by application of the treasury stock method. Due to the net losses reported, these potentially dilutive securities were excluded from the computation of diluted net loss per share, since their effect would be anti-dilutive.

The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share amount):

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to the Company - basic and diluted

 

$

(38,395

)

 

$

(30,130

)

 

$

(70,395

)

 

$

(59,652

)

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average number of shares used to compute net loss per share attributable to the Company - basic and diluted

 

 

42,770

 

 

 

42,024

 

 

 

42,499

 

 

 

42,024

 

Net loss per share attributable to the Company - basic and diluted

 

$

(0.90

)

 

$

(0.72

)

 

$

(1.66

)

 

$

(1.42

)

The following potentially dilutive shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented (in thousands):

 

 

Three and Six Months Ended June 30,

 

 

 

2023

 

Options

 

 

120

 

Restricted stock awards and units

 

 

7,345

 

ESPP

 

 

83

 

Total

 

 

7,548

 
v3.23.2
Stockholders' Equity And Stock-Based Compensation
 6 Months Ended
Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Stockholders' Equity And Stock-Based Compensation

NOTE 11 – STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

Equity Incentive Plans

In connection with the Separation and on October 1, 2022, the Company adopted the Xperi Inc. 2022 Equity Incentive Plan (the “2022 EIP”).

Under the 2022 EIP, the Company may grant equity-based awards to employees, non-employee directors, and consultants for services rendered to the Company (or any parent or subsidiary) in the form of stock options, stock awards, restricted stock awards (“RSA”), restricted stock units (“RSU”), stock appreciation rights, dividend equivalents and performance awards, or any combination thereof. A total of 12.2 million shares were reserved for issuance under the 2022 EIP as of June 30, 2023.

The 2022 EIP provides for option grants designated as either incentive stock options or non-statutory options. Options have been granted with an exercise price not less than the value of the common stock on the grant date and generally have a term of ten years from the date of grant and vest over a four-year period. The vesting criteria for RSUs has historically been the passage of time or meeting certain performance-based objectives, and continued service through the vesting period over three or four years for time-based awards or three years for performance-based awards.

As of June 30, 2023, there were approximately 4.2 million shares reserved for future grants under the 2022 EIP.

Employee Stock Purchase Plans

In connection with the Separation and on October 1, 2022, the Company adopted the Xperi Inc. 2022 Employee Stock Purchase Plan (the “2022 ESPP”). The 2022 ESPP is implemented through consecutive overlapping 24-month offering periods, each of which is comprised of four purchase periods that are generally six months in length. The first offering period commenced on December 1, 2022 and will end on November 30, 2024. Each subsequent offering period under the 2022 ESPP will be 24 months long and will commence on each December 1 and June 1 during the term of the plan. Participants may contribute up to 100% of their after tax base earnings and commissions through payroll deductions up to the limit imposed by the Internal Revenue Service (”IRS”), and the accumulated deductions will be applied to the purchase of shares on each semi-annual purchase date. The purchase price per share will equal 85% of the fair market value per share on the start date of the offering period or, if lower, 85% of the fair market value per share on the semi-annual purchase date.

An eligible employee’s right to buy the Company’s common stock under the 2022 ESPP may not accrue at a rate in excess of the $25,000 limit imposed by the IRS on the fair market value of such shares per calendar year. If the fair market value per share of the Company’s common stock on any purchase date during an offering period is less than the fair market value per share on the start date of the 24-month offering period, then that offering period will automatically terminate and a new 24-month offering period will begin on the next business day. All participants in the terminated offering will be transferred to the new offering period.

On May 31, 2023, the Company issued 644,342 shares under the 2022 ESPP, net of shares withheld to satisfy withholding tax requirements for certain employees, for an aggregate net proceeds of $5.9 million.

The following table summarizes the valuation assumptions used in estimating the fair value of the 2022 ESPP for the offering period in effect using Black-Scholes option pricing model:

 

 

Six Months Ended June 30,

 

 

2023

Expected life (years)

 

0.5 — 2.0

Risk-free interest rate

 

4.33% — 5.44%

Dividend yield

 

—%

Expected volatility

 

44.11% — 51.19%

Stock Options

Stock option activity for the six months ended June 30, 2023 is as follows (in thousands, except per share amounts):

 

 

 

Options Outstanding

 

 

 

Number of
Shares
Subject
to Options

 

 

Weighted
Average
Exercise
Price Per
Share

 

Balance at December 31, 2022

 

 

146

 

 

$

25.48

 

Options exercised

 

 

—

 

 

$

—

 

Options canceled / forfeited / expired

 

 

(26

)

 

$

21.43

 

Balance at June 30, 2023

 

 

120

 

 

$

26.35

 

There were no stock options granted during the six months ended June 30, 2023 and 2022.

Restricted Stock Awards and Units

Information with respect to outstanding restricted stock awards and units (including both time-based vesting and performance-based vesting) as of June 30, 2023 is as follows (in thousands, except per share amounts):

 

 

 

Restricted Stock and Restricted Stock Units

 

 

 

Number of
Shares
Subject to
Time-
based Vesting

 

 

Number of
Shares
Subject to
Performance-
based Vesting

 

 

Total
Number of
Shares

 

 

Weighted
Average
Grant Date
Fair Value
Per Share

 

Balance at December 31, 2022

 

 

3,713

 

 

 

891

 

 

 

4,604

 

 

$

20.35

 

Awards and units granted

 

 

2,960

 

 

 

718

 

 

 

3,678

 

 

$

11.47

 

Awards and units vested / earned

 

 

(790

)

 

 

—

 

 

 

(790

)

 

$

20.33

 

Awards and units canceled / forfeited

 

 

(147

)

 

 

—

 

 

 

(147

)

 

$

16.59

 

Balance at June 30, 2023

 

 

5,736

 

 

 

1,609

 

 

 

7,345

 

 

$

15.98

 

Performance-Based Awards

From time to time, the Company may grant performance-based restricted stock units (“PSU”) to senior executives, certain employees and consultants. The value and the vesting of such PSUs are generally linked to one or more performance goals or certain market conditions determined by the Company, in each case on a specified date or dates or over any period or periods determined by the Company, and may range from zero to 200% of the grant. For PSUs subject to a market condition, the fair value per award is fixed at the grant date and the amount of compensation expense is not adjusted during the performance period regardless of changes in the level of achievement of the market condition.

During the second quarter of 2023, in accordance with the Employee Matters Agreement executed by the Company and the Former Parent in connection with the Separation, the Company modified certain vesting conditions related to market-based PSUs granted in 2022, resulting in a total incremental compensation expense of $2.9 million, which will be recognized over the remaining requisite service period through 2025. For the three months ended June 30, 2023, the incremental compensation expense of this modification was $0.3 million.

The following assumptions were used to value the market-based PSUs granted during the period:

 

 

Six Months Ended June 30,

 

 

 

2023

 

Expected life (years)

 

 

2.8

 

Risk-free interest rate

 

 

4.54

%

Dividend yield

 

 

—

%

Expected volatility

 

 

49.02

%

Stock-Based Compensation

Prior to the Separation, the stock-based compensation expense was only based on the expense for employees specifically identifiable to Xperi. Consequently, the amounts presented are not necessarily indicative of future awards and do not necessarily reflect the costs that the Company would have incurred as an independent company.

The effect of recording stock-based compensation expense for the three and six months ended June 30, 2023 and 2022 is as follows (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Cost of revenue, excluding depreciation and amortization of intangible assets

 

$

927

 

 

$

773

 

 

$

1,719

 

 

$

1,398

 

Research and development

 

 

6,405

 

 

 

5,681

 

 

 

11,956

 

 

 

10,780

 

Selling, general and administrative

 

 

10,759

 

 

 

4,085

 

 

 

20,384

 

 

 

6,998

 

Total stock-based compensation expense

 

$

18,091

 

 

$

10,539

 

 

$

34,059

 

 

$

19,176

 

 

Stock-based compensation expense categorized by award type for the three and six months ended June 30, 2023 and 2022 is summarized in the table below (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Restricted stock awards and units

 

$

16,706

 

 

$

9,548

 

 

$

31,686

 

 

$

17,371

 

Employee stock purchase plan

 

 

1,385

 

 

 

991

 

 

 

2,373

 

 

 

1,805

 

Total stock-based compensation expense

 

$

18,091

 

 

$

10,539

 

 

$

34,059

 

 

$

19,176

 

In connection with the conversion of the Former Parent’s PSUs into PSUs with respect to Xperi common stock and Adeia common stock, the Company continued recognizing an incremental compensation expense of $1.4 million and $2.7 million for the three and six months ended June 30, 2023, respectively.

In addition, for the three and six months ended June 30, 2022, the Company recognized $2.0 million and $4.5 million of stock-based compensation expense in operating results, respectively, as part of the corporate and shared functional employees expenses allocation.
v3.23.2
Income Taxes
 6 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 12 – INCOME TAXES

For the three and six months ended June 30, 2023, the Company recorded an income tax expense of $5.1 million and $4.8 million on a pretax loss of $34.3 million and $67.5 million, respectively, which resulted in an effective tax rate of (14.9)% and (7.1)%, respectively. The income tax expense for the three and six months ended June 30, 2023 was primarily related to foreign withholding taxes, foreign income taxes, U.S. federal income taxes, and state income taxes.

For the three and six months ended June 30, 2022, the Company recorded an income tax expense of $8.4 million and $10.5 million on a pretax loss of $22.6 million and $51.0 million, respectively, which resulted in an effective tax rate of (37.2)% and (20.5)%, respectively. The income tax expense for the three months ended June 30, 2022 was primarily related to foreign withholding taxes, U.S. federal income taxes, and state income taxes; whereas for the six months ended June 30, 2022, it was primarily related to foreign withholding taxes and foreign income taxes.

As of June 30, 2023, gross unrecognized tax benefits of $19.3 million decreased by $0.1 million compared to December 31, 2022. Of the $19.3 million, $8.7 million would affect the effective tax rate, if recognized. The Company is unable to reasonably estimate the timing of the long-term payments or the amount by which the liability will increase or decrease.

It is the Company’s policy to classify accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes. The Company recognized an immaterial amount of interest and penalties related to unrecognized tax benefits for the three and six months ended June 30, 2023, and there was no interest and penalties recognized for the three and six months ended June 30, 2022. Accrued interest and penalties were $0.1 million as of June 30, 2023 and December 31, 2022.

As of June 30, 2023, the Company’s 2018 through 2023 tax years are generally open and subject to potential examination in one or more jurisdictions. In addition, in the United States, any net operating losses or credits that were generated in prior years but not yet fully utilized in a year that is closed under the statute of limitations may also be subject to examination.

On July 21, 2023, the U.S. Treasury Department issued Notice 2023-55 announcing temporary relief for taxpayers from certain provisions in the final foreign tax credit regulations released in 2022. The Company expects that the effect of this notice will be a net income tax benefit due to an increase in the Company’s foreign tax credits, partially offset by a decrease of its deductible withholding tax expense for the current year and for the year ended December 31, 2022.
v3.23.2
Leases
 6 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Leases

NOTE 13 – LEASES

The Company leases office and research facilities, data centers and office equipment under operating leases with various expiration dates through 2030. Certain leases offer the option to renew for up to ten years and to terminate before the expiration date. Leases with an initial term of 12 months or less are not recorded on the balance sheets; expense for these leases is recognized on a straight-line basis over the lease term. Variable lease payments are expensed as incurred and are not included within the lease liability and right-of-use assets calculation.

The Company subleases certain real estate to third parties. The sublease portfolio consists of operating leases for previously exited office space. Certain subleases include variable payments for operating costs. The subleases are generally co-terminus

with the head lease, or shorter. Subleases do not include any residual value guarantees or restrictions or covenants imposed by the leases. Income from subleases is recognized as a reduction to selling, general and administrative expenses.

As a result of consolidating our global real estate footprint and decisions to vacate and sublease certain offices following the Spin-Off, the Company recorded impairment charges of $1.1 million to reduce the carrying amount of certain operating lease right-of-use (“ROU”) assets and property and equipment, including leasehold improvements, during the six months ended June 30, 2023. The Company determined that it may not be able to fully recover the carrying amount of the leased offices due to a change in the manner in which the offices are being used, a significant decrease in the expected market price of the leased asset, and expected delays in subleasing the space based on the current real estate leasing market. The Company estimated the fair value using a discounted cash flows approach with assumptions such as expectations of cash flows from projected sublease income, occupancy estimates and its outlook for the local real estate market.

The components of operating lease costs were as follows (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Fixed lease cost (1)

 

$

5,325

 

 

$

4,901

 

 

$

10,483

 

 

$

9,924

 

Variable lease cost

 

 

1,457

 

 

 

1,418

 

 

 

2,944

 

 

 

2,483

 

Less: sublease income

 

 

(2,593

)

 

 

(2,705

)

 

 

(5,273

)

 

 

(4,811

)

Total operating lease cost

 

$

4,189

 

 

$

3,614

 

 

$

8,154

 

 

$

7,596

 

 

(1) Includes short-term leases expensed on a straight-line basis.

The following table presents supplemental cash flow information arising from lease transactions (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Cash payments included in the measurement of operating lease liabilities

 

$

5,000

 

 

$

4,865

 

 

$

10,208

 

 

$

9,900

 

Operating ROU assets obtained in exchange for lease obligations

 

$

4,013

 

 

$

1,195

 

 

$

4,013

 

 

$

1,779

 

 

The weighted-average remaining term of the Company’s operating leases and the weighted-average discount rate used to measure the present value of the operating lease liabilities are as follows:

 

 

 

June 30,
2023

 

 

December 31, 2022

 

Weighted-average remaining lease term (in years)

 

 

3.65

 

 

 

3.69

 

Weighted-average discount rate

 

 

5.2

%

 

 

5.1

%

 

Future minimum lease payments and related lease liabilities as of June 30, 2023 were as follows (in thousands):

 

Year Ending December 31:

 

Operating Lease Payments (1)

 

 

Sublease Income

 

 

Net Operating Lease Payments

 

2023 (remaining 6 months)

 

$

8,782

 

 

$

(3,867

)

 

$

4,915

 

2024

 

 

18,079

 

 

 

(7,849

)

 

 

10,230

 

2025

 

 

16,442

 

 

 

(7,671

)

 

 

8,771

 

2026

 

 

8,582

 

 

 

(1,055

)

 

 

7,527

 

2027

 

 

3,818

 

 

 

—

 

 

 

3,818

 

Thereafter

 

 

3,405

 

 

 

—

 

 

 

3,405

 

Total lease payments

 

 

59,108

 

 

$

(20,442

)

 

$

38,666

 

Less: imputed interest

 

 

(5,695

)

 

 

 

 

 

 

Present value of operating lease liabilities

 

$

53,413

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: operating lease liabilities, current portion

 

 

(15,592

)

 

 

 

 

 

 

Noncurrent operating lease liabilities

 

$

37,821

 

 

 

 

 

 

 

(1) Future minimum lease payments exclude short-term leases as well as payments to landlords for variable common area maintenance, insurance and real estate taxes.
v3.23.2
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

NOTE 14 – COMMITMENTS AND CONTINGENCIES

 

Purchase and Other Contractual Obligations

 

In the ordinary course of business, the Company enters into contractual agreements with third parties that include non-cancelable payment obligations, for which it is liable in future periods. These arrangements primarily include unconditional purchase obligations to service providers. As of June 30, 2023, the Company’s total future unconditional purchase obligations were approximately $84.1 million. Additionally, under certain other contractual arrangements, the Company may be obligated to pay up to $0.8 million, a majority of which is expected to be paid within the next year, if certain milestones are achieved.

Inventory Purchase Commitment

The Company uses contract manufacturers to provide manufacturing services for its products. During the normal course of business, in order to manage manufacturing lead times and help ensure adequate supply, the Company enters into agreements with its contract manufacturers that either allow them to procure inventory based on criteria as defined by the Company or that establish the parameters defining the Company’s requirements. A significant portion of the Company’s purchase commitments arising from these agreements consist of firm, non-cancelable and unconditional purchase commitments. In certain instances, these agreements allow the Company the option to cancel, reschedule or adjust the Company’s requirements based on its business needs prior to firm orders being placed. As of June 30, 2023, the Company had total purchase commitments for inventory of $2.7 million.

Indemnifications

In the normal course of business, the Company provides indemnifications of varying scopes and amounts to certain of its licensees, customers, and business partners against claims made by third parties arising from the use of the Company's products, intellectual property, services or technologies. The Company cannot reasonably estimate the possible range of losses that may be incurred pursuant to its indemnification obligations, if any. Variables affecting any such assessment include, but are not limited to: the scope of the contractual indemnification obligation; the nature of the third party claim asserted; the relative merits of the third party claim; the financial ability of the third party claimant to engage in protracted litigation; the number of parties seeking indemnification; the nature and amount of damages claimed by the party suing the indemnified party; and the willingness of such party to engage in settlement negotiations. The Company has received requests for indemnification, but to date none has been material and no liability has been recorded in the Company’s financial statements.

As permitted under Delaware law, the Company has agreements whereby it indemnifies its officers and directors for certain events or occurrences while the officer or director is, or was, serving at the Company’s request in such capacity. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company believes, given the absence of any such payments in the Company’s history, and the estimated low probability of such payments in the future, that the estimated fair value of these indemnification agreements is not material. In addition, the Company has directors’ and officers’ liability insurance coverage that is intended to reduce its financial exposure and may enable the Company to recover any payments under the indemnification agreements, should they occur.

Contingencies

The Company and its subsidiaries have been involved in litigation matters and claims in the normal course of business. In the past, the Company or its subsidiaries have litigated to enforce their respective patents and other intellectual property rights, to enforce the terms of license agreements, to determine infringement or validity of intellectual property rights, and to defend themselves or their customers against claims of infringement or breach of contract. The Company expects it or its subsidiaries will be involved in similar legal proceedings in the future, including proceedings to ensure proper and full payment of royalties by licensees under the terms of their license agreements.

An adverse decision in any legal actions could result in a loss of the Company’s proprietary rights, subject the Company to significant liabilities, require the Company to seek licenses from others, limit the value of the Company’s licensed technology or otherwise negatively impact the Company’s stock price or its business and consolidated financial results.
 
v3.23.2
Related Party Transactions
 6 Months Ended
Jun. 30, 2023
Related Party Transactions [Abstract]  
Related Party Transactions

NOTE 15 – RELATED PARTY TRANSACTIONS

For periods prior to the Separation, the Condensed Consolidated Financial Statements have been prepared on a standalone basis and were derived from the condensed consolidated financial statements and accounting records of the Former Parent. The following disclosure summarizes activity prior to the Separation between the Company and the Former Parent, including affiliates of the Former Parent that were not part of the Separation.

Allocation of Corporate Expenses

Prior to Separation, the Condensed Consolidated Financial Statements included expenses for certain management and support functions which were provided on a centralized basis within the Former Parent, as described in Note 1—The Company and Basis of Presentation. These management and support functions include, but are not limited to, executive management, sales and marketing, finance, legal, information technology, employee benefits administration, stock-based compensation, treasury, risk management, procurement and other shared services. These allocations were made on a direct usage basis when identifiable, with the remainder allocated on a pro rata basis of billing, revenue, headcount or other measures of the Company and the Former Parent. For the three months ended June 30, 2022, the amount of these allocations from the Former Parent was $15.8 million, which included $1.1 million for depreciation expenses and $14.7 million for selling, general and administrative expenses. For the six months ended June 30, 2022, the amount of these allocations from the Former Parent was $30.7 million, which included $2.2 million for depreciation expenses and $28.5 million for selling, general and administrative expenses.

Management believes these cost allocations are a reasonable reflection of the utilization of services provided to, or the benefit derived by, the Company during the periods presented. The allocations may not, however, be indicative of the actual expenses that would have been incurred had the Company operated as a standalone public company. Actual costs that may have been incurred if the Company had been a standalone public company would depend on a number of factors, such as the chosen organizational structure, whether functions were outsourced or performed by Company’s employees, and strategic decisions made in areas such as selling, information technology and infrastructure.

Net Investment by Former Parent

As a result of the Company consolidating its financial results, as described in Note 1, net investment by Former Parent in the Condensed Consolidated Balance Sheets and Statements of Equity was fully settled. As such, there was no balance in net Investment by Former Parent at December 31, 2022.

Prior to the Company consolidating its financial results, net investment by Former Parent in the historical Balance Sheets and Statements of Equity represented the Former Parent's historical investment in the Company, the net effect of transactions with and allocations from the Former Parent, and the Company’s accumulated deficit.
v3.23.2
Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

During the three months ended September 30, 2022, all of the assets and liabilities of the Xperi Product business had been transferred to a legal entity (the “Transfer”) under the common control of Xperi. Subsequent to this Transfer and through December 31, 2022, the Company’s financial statements and accompanying notes are prepared on a consolidated basis and include Xperi and its subsidiaries in which Xperi has a controlling financial interest. All intercompany balances and transactions are eliminated in consolidation. Prior to the Transfer, the financial statements and accompanying notes of the Xperi Product business were prepared on a combined basis and were derived from the consolidated financial statements and accounting records of the Former Parent as the Company was not historically held by a single legal entity. All intercompany balances and transactions within the combined businesses of the Company have been eliminated.

The Condensed Consolidated Balance Sheets of Xperi and its subsidiaries for the pre-Transfer periods include Former Parent’s assets and liabilities that are specifically identifiable or otherwise attributable to the Company. In the fourth quarter of 2018, the Company funded a new subsidiary, Perceive Corporation (“Perceive”), which was created to focus on delivering edge inference solutions. As of June 30, 2023, the Company owned approximately 77.0% of the outstanding equity interest of Perceive. The operating results of Perceive have been included in the Company’s condensed consolidated financial statements since the fourth quarter of 2018.

Prior to the Separation, the Company was dependent on the Former Parent for all of its working capital and financing requirements as the Former Parent used a centralized approach to cash management and financing its operations. Financial transactions relating to the Company were accounted for as equity contributions from the Former Parent on the Condensed Consolidated Balance Sheets. Accordingly, none of the Former Parent’s cash and cash equivalents were allocated to the Company for any of the periods presented, unless those balances were directly attributable to the Company. The Company reflects transfers of cash to and from the Former Parent’s cash management system within equity as a component of Net investment by Former Parent on a combined basis and as a component of net capital contribution from Former Parent on a consolidated basis. Other than the debt incurred in connection with the acquisition of Vewd Software Holdings Limited (“Vewd”) discussed in Note 9, the Former Parent’s long-term debt has not been attributed to the Company for any of the periods presented because the Former Parent’s borrowings are not the legal obligation of the Company. The cash and cash equivalents, including the Company’s capitalization from Former Parent on September 30, 2022, is expected to be sufficient to support its operations, capital expenditures and income tax payments, in addition to any investments and other capital allocation needs for at least the next 12 months from the issuance date of these condensed consolidated financial statements.

Prior to the Separation, the Condensed Consolidated Statements of Operations and Comprehensive Loss of the Company reflect allocations of general corporate expenses from the Former Parent, including, but not limited to, executive management, sales and marketing, finance, legal, information technology, employee benefits administration, stock-based compensation, treasury, risk management, procurement and other shared services. These allocations were made on a direct usage basis when identifiable, with the remainder allocated on a pro rata basis of billing, revenue, headcount or other measures as deemed appropriate. Management of the Company and Former Parent consider these allocations to be a reasonable reflection of the utilization of services by, or the benefits provided to, the Company. The allocations may not, however, reflect the expenses the Company would have incurred as a standalone company for the periods presented. Actual costs that may have been incurred if the Company had been a standalone company would depend on a number of factors, such as the chosen organizational structure, whether functions were outsourced or performed by employees and decisions with respect to areas such as facilities, information technology and operating infrastructure.
Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The accounting estimates and assumptions that require management’s most significant, challenging, and subjective judgment include the estimation of licensees’ quarterly royalties prior to receiving the royalty reports, the determination of stand-alone selling price and the

transaction price in an arrangement with multiple performance obligations, the assessment of useful lives and recoverability of other intangible assets and long-lived assets, recognition and measurement of current and deferred income tax assets and liabilities, the assessment of unrecognized tax benefits, and purchase accounting resulting from business combinations. Actual results experienced by the Company may differ from management’s estimates.
Concentration of Credit and Other Risks

Concentration of Credit and Other Risks

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company maintains cash and cash equivalents with large financial institutions, and at times, the deposits may exceed the federally insured limits. As part of its risk management processes, the Company performs periodic evaluations of the relative credit standing of these financial institutions. The Company has not sustained material credit losses from instruments held at these financial institutions. In addition, the Company has cash and cash equivalents held in international bank accounts that are denominated in various foreign currencies, and has established risk management strategies designed to minimize the impact of certain currency exchange rate fluctuations. The Company believes that any concentration of credit risk in its accounts receivable is substantially mitigated by its evaluation process, relatively short collection terms and the high level of credit worthiness of its customers. The Company performs ongoing credit evaluations of its customers’ financial condition and limits the amount of credit extended when deemed necessary but generally requires no collateral.

There were no individually significant customers accounting for 10% or more of total revenue for the three and six months ended June 30, 2023. There was one customer who accounted for more than 10% of total revenue for the three months ended June 30, 2022, whereas no single customer reached or exceeded such threshold for the six months ended June 30, 2022. As of June 30, 2023 and December 31, 2022, no single customer represented 10% or more of the Company's net balance of accounts receivable.
Recent Accounting Pronouncements

Recent Accounting Pronouncements

There have been no recently issued accounting pronouncements that are expected to have a material impact on the Company’s condensed consolidated financial statements.
Revenue Recognition

Revenue Recognition

The Company derives the majority of its revenue from licensing its technology (”Technology License”) and solutions (”Technology Solutions”) to customers. For Technology License arrangements, the customer obtains rights to the technology delivered at the commencement of the agreement. For Technology Solutions arrangements, the customer receives access to a platform, media or data that includes frequent updates, where access to such updates is critical to the functionality of the technology. The timing of when performance obligations are satisfied, as well as the fee arrangements underlying each agreement, determine when revenue is recognized.

The Company also generates revenue from non-recurring engineering (“NRE”) services, advertising, and hardware products, each of which was less than 10% of total revenue for all periods presented.
v3.23.2
Revenue (Tables)
 6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Schedule of Revenue by Product Category and Market

The following table summarizes revenue by market (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Pay-TV

 

$

58,031

 

 

$

60,371

 

 

$

118,325

 

 

$

124,525

 

Consumer Electronics

 

 

31,716

 

 

 

39,493

 

 

 

68,451

 

 

 

67,583

 

Connected Car

 

 

23,474

 

 

 

20,855

 

 

 

44,022

 

 

 

40,574

 

Media Platform

 

 

13,651

 

 

 

5,484

 

 

 

22,913

 

 

 

12,410

 

Total revenue

 

$

126,872

 

 

$

126,203

 

 

$

253,711

 

 

$

245,092

 
Schedule of Geographic Revenue Information

The following table summarizes revenue by geographic location (in thousands):

 

 

 

Three Months Ended June 30,

 

 

 

2023

 

 

2022

 

U.S.

 

$

69,133

 

 

 

54

%

 

$

78,409

 

 

 

62

%

Japan

 

 

18,566

 

 

 

15

 

 

 

16,494

 

 

 

13

 

China

 

 

10,527

 

 

 

8

 

 

 

4,163

 

 

 

3

 

Europe and Middle East

 

 

8,416

 

 

 

7

 

 

 

7,048

 

 

 

6

 

Other

 

 

20,230

 

 

 

16

 

 

 

20,089

 

 

 

16

 

Total revenue

 

$

126,872

 

 

 

100

%

 

$

126,203

 

 

 

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

U.S.

 

$

134,292

 

 

 

53

%

 

$

138,080

 

 

 

56

%

Japan

 

 

36,061

 

 

 

14

 

 

 

32,044

 

 

 

13

 

China

 

 

22,037

 

 

 

9

 

 

 

14,455

 

 

 

6

 

Europe and Middle East

 

 

18,582

 

 

 

7

 

 

 

18,736

 

 

 

8

 

Other

 

 

42,739

 

 

 

17

 

 

 

41,777

 

 

 

17

 

Total revenue

 

$

253,711

 

 

 

100

%

 

$

245,092

 

 

 

100

%
Schedule of Contract Assets

Contract assets were recorded in the Condensed Consolidated Balance Sheets as follows (in thousands):

 

 

June 30, 2023

 

 

December 31, 2022

 

Unbilled contracts receivable, net

 

$

60,068

 

 

$

65,251

 

Other current assets

 

 

534

 

 

 

848

 

Unbilled contracts receivable, noncurrent

 

 

16,840

 

 

 

4,289

 

Other noncurrent assets

 

 

799

 

 

 

978

 

Total contract assets

 

$

78,241

 

 

$

71,366

 
Schedule of Revenue Recognized in Period

The following table presents additional revenue disclosures (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Revenue recognized in the period from:

 

 

 

 

 

 

 

 

 

 

 

 

Amounts included in deferred revenue at the beginning of
   the period

 

$

5,547

 

 

$

6,269

 

 

$

12,266

 

 

$

14,601

 

Performance obligations satisfied in previous periods (true
   ups, licensee reporting adjustments and settlements) (1)(2)

 

$

597

 

 

$

20,830

 

 

$

(1,285

)

 

$

20,866

 

(1) True ups represent the differences between the Company’s quarterly estimates of per-unit royalty revenue and actual production/sales-based royalties reported by licensees in the following period. Licensee reporting adjustments represent corrections or revisions to previously reported per-unit royalties by licensees, generally resulting from the Company’s inquiries or compliance audits. Settlements represent resolutions of litigation or disputes during the period for past royalties owed.

(2) For the three and six months ended June 30, 2022, the Company recorded revenue from both the settlement of a contract dispute with a large mobile imaging customer, and the execution of a long-term license agreement with a leading consumer electronics and over-the-top service provider. The long-term license agreement was effective as of the expiration of the prior agreement, and the Company expected to record revenue from the license agreement in future periods.
Schedule of Remaining Performance Obligations Company’s remaining revenue under contracts with performance obligations was as follows (in thousands):

 

Year Ending December 31:

 

Amounts

 

2023 (remaining 6 months)

 

$

32,688

 

2024

 

 

30,962

 

2025

 

 

17,592

 

2026

 

 

6,173

 

2027

 

 

1,633

 

Thereafter

 

 

1,412

 

Total

 

$

90,460

 
Schedule of Allowance for Credit Losses

The following table presents the activity in the allowance for credit losses for the three and six months ended June 30, 2023 and 2022 (in thousands):

 

 

 

Three Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

 

Accounts Receivable

 

 

Unbilled Contracts Receivable

 

 

Accounts Receivable

 

 

Unbilled Contracts Receivable

 

Beginning balance

 

$

2,067

 

 

$

350

 

 

$

1,962

 

 

$

369

 

Provision for credit losses

 

 

186

 

 

 

(25

)

 

 

201

 

 

 

(63

)

Recoveries/charge-off

 

 

(41

)

 

 

—

 

 

 

(358

)

 

 

—

 

Ending balance

 

$

2,212

 

 

$

325

 

 

$

1,805

 

 

$

306

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

 

Accounts Receivable

 

 

Unbilled Contracts Receivable

 

 

Accounts Receivable

 

 

Unbilled Contracts Receivable

 

Beginning balance

 

$

1,950

 

 

$

369

 

 

$

2,245

 

 

$

480

 

Provision for credit losses

 

 

322

 

 

 

(44

)

 

 

21

 

 

 

(174

)

Recoveries/charge-off

 

 

(60

)

 

 

—

 

 

 

(461

)

 

 

—

 

Ending balance

 

$

2,212

 

 

$

325

 

 

$

1,805

 

 

$

306

 
v3.23.2
Composition of Certain Financial Statement Captions (Tables)
 6 Months Ended
Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule Of Prepaid Expenses And Other Current Assets

Prepaid expenses and other current assets consisted of the following (in thousands):

 

 

 

June 30, 2023

 

 

December 31, 2022

 

Prepaid income tax

 

$

2,170

 

 

$

1,777

 

Prepaid expenses

 

 

18,444

 

 

 

20,001

 

Finished goods inventory

 

 

8,068

 

 

 

6,662

 

Other

 

 

11,290

 

 

 

13,734

 

Total

 

$

39,972

 

 

$

42,174

 
Schedule of Property and Equipment, Net

Property and equipment, net, consisted of the following (in thousands):

 

 

 

June 30, 2023

 

 

December 31, 2022

 

Equipment, furniture and other

 

$

84,501

 

 

$

78,976

 

Building and improvements

 

 

18,331

 

 

 

18,331

 

Land

 

 

5,300

 

 

 

5,300

 

Leasehold improvements

 

 

16,743

 

 

 

17,038

 

Total property and equipment

 

 

124,875

 

 

 

119,645

 

Less: accumulated depreciation and amortization

 

 

(78,518

)

 

 

(71,818

)

Property and equipment, net

 

$

46,357

 

 

$

47,827

 
Schedule of Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):

 

 

 

June 30, 2023

 

 

December 31, 2022

 

Employee compensation and benefits

 

$

31,504

 

 

$

53,546

 

Third-party royalties

 

 

9,224

 

 

 

7,620

 

Accrued expenses

 

 

26,986

 

 

 

22,928

 

Current portion of operating lease liabilities

 

 

15,592

 

 

 

17,195

 

Accrued income tax

 

 

635

 

 

 

4,926

 

Other

 

 

7,181

 

 

 

3,799

 

Total

 

$

91,122

 

 

$

110,014

 

 

 
Schedule of Accumulated Other Comprehensive Loss (AOCI)

Accumulated other comprehensive loss (“AOCI”) consisted of the following (in thousands):

 

 

 

Three Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

 

Unrealized Gains (Losses) on Cash Flow Hedges

 

 

Foreign Currency Translation Adjustment

 

 

Total

 

 

Foreign Currency Translation Adjustment

 

 

Total

 

Beginning balance

 

$

769

 

 

$

(3,412

)

 

$

(2,643

)

 

$

(1,722

)

 

$

(1,722

)

Other comprehensive income (loss) before reclassification

 

 

322

 

 

 

(521

)

 

 

(199

)

 

 

(2,403

)

 

 

(2,403

)

Amounts reclassified from accumulated other comprehensive loss into net loss

 

 

(332

)

 

 

—

 

 

 

(332

)

 

 

—

 

 

 

—

 

Net current period other comprehensive (loss)

 

 

(10

)

 

 

(521

)

 

 

(531

)

 

 

(2,403

)

 

 

(2,403

)

Ending balance

 

$

759

 

 

$

(3,933

)

 

$

(3,174

)

 

$

(4,125

)

 

$

(4,125

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

 

Unrealized Gains (Losses) on Cash Flow Hedges

 

 

Foreign Currency Translation Adjustment

 

 

Total

 

 

Foreign Currency Translation Adjustment

 

 

Total

 

Beginning balance

 

$

(94

)

 

$

(4,025

)

 

$

(4,119

)

 

$

(676

)

 

$

(676

)

Other comprehensive income (loss) before reclassification

 

 

1,181

 

 

 

92

 

 

 

1,273

 

 

 

(3,449

)

 

 

(3,449

)

Amounts reclassified from accumulated other comprehensive loss into net loss

 

 

(328

)

 

 

—

 

 

 

(328

)

 

 

—

 

 

 

—

 

Net current period other comprehensive income (loss)

 

 

853

 

 

 

92

 

 

 

945

 

 

 

(3,449

)

 

 

(3,449

)

Ending balance

 

$

759

 

 

$

(3,933

)

 

$

(3,174

)

 

$

(4,125

)

 

$

(4,125

)
v3.23.2
Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]  
Schedule of Notional and Fair Values of All Derivative Instruments

The notional and fair values of all derivative financial instruments were as follows (in thousands):

 

 

June 30, 2023

 

 

December 31, 2022

 

Derivative instruments in cash flow hedges (foreign exchange contracts):

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Other current assets

 

$

759

 

 

$

—

 

Liabilities

 

 

 

 

 

 

Accrued liabilities

 

 

—

 

 

 

94

 

Total fair value

 

$

759

 

 

$

94

 

Total notional value

 

$

50,880

 

 

$

52,197

 

Undesignated derivative instruments (foreign exchange contracts):

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Other current assets

 

$

464

 

 

$

—

 

Liabilities

 

 

 

 

 

 

Accrued liabilities

 

 

—

 

 

 

41

 

Total fair value

 

$

464

 

 

$

41

 

Total notional value

 

$

7,149

 

 

$

7,402

 
Schedule of Gross Amounts of Foreign Currency Forward Contracts

The gross amounts of the Company’s foreign currency forward contracts and the net amounts recorded in the Company’s Condensed Consolidated Balance Sheets were as follows (in thousands):

 

 

June 30, 2023

 

 

December 31, 2022

 

Gross amount of recognized assets

$

1,320

 

 

$

—

 

Gross amount of recognized liabilities

 

(97

)

 

 

(135

)

Net amount presented in the Condensed Consolidated Balance Sheets

$

1,223

 

 

$

(135

)
Summary of the Gains Recognized upon Settlement of the Hedged Transactions

The following table summarizes the gains recognized upon settlement of the hedged transactions in the Condensed Consolidated Statement of Operations for three and six months ended June 30, 2023 (in thousands):

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

Research and development

 

$

403

 

 

$

414

 

Selling, general and administrative

 

 

59

 

 

 

63

 

Total

 

$

462

 

 

$

477

 
v3.23.2
Fair Value (Tables)
 6 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Schedule of Carrying Amounts and Estimated Fair Values The carrying amounts and estimated fair values were as follows (in thousands):

 

 

 

June 30, 2023

 

 

December 31, 2022

 

 

 

Carrying
Amount

 

 

Estimated
Fair Value

 

 

Carrying
Amount

 

 

Estimated
Fair Value

 

Senior Unsecured Promissory Note

 

$

50,000

 

 

$

49,093

 

 

$

50,000

 

 

$

48,478

 

 

If reported at fair value in the Condensed Consolidated Balance Sheets, the Company’s debt would be classified within Level 2 of the fair value hierarchy. The fair value of the debt was estimated based on the quoted market prices for the same or similar issues.

For more detail related to the senior unsecured promissory note, refer to Note 9—Debt.
v3.23.2
Business Combination (Tables)
 6 Months Ended
Jun. 30, 2023
Vewd  
Business Acquisition [Line Items]  
Schedule of Estimated Fair Value that Allocated to Assets and Liabilities The following table presents the allocation of the purchase price to the identifiable assets acquired and liabilities assumed based on the fair values at the acquisition date with no measurement period adjustments identified (amounts in thousands, except estimated useful life):

 

 

 

Estimated Useful
 Life (years)

 

 

 

 

Final
Fair Value

 

Cash and cash equivalents

 

 

 

 

 

 

$

2,684

 

Accounts receivable

 

 

 

 

 

 

 

3,341

 

Unbilled contracts receivable

 

 

 

 

 

 

 

2,335

 

Other current assets

 

 

 

 

 

 

 

1,208

 

Property and equipment

 

 

 

 

 

 

 

443

 

Operating lease right-of-use assets

 

 

 

 

 

 

 

2,020

 

Identifiable intangible assets:

 

 

 

 

 

 

 

 

Technology

 

7

 

$

28,050

 

 

 

 

Customer relationships – large

 

7

 

 

4,900

 

 

 

 

Customer relationships – small

 

4

 

 

3,500

 

 

 

 

Non-compete agreements

 

2

 

 

870

 

 

 

 

Trade name

 

5

 

 

830

 

 

 

 

Total identifiable intangible assets

 

 

 

 

 

 

 

38,150

 

Goodwill

 

 

 

 

 

 

 

68,115

 

Other long-term assets

 

 

 

 

 

 

 

977

 

Accounts payable

 

 

 

 

 

 

 

(869

)

Accrued liabilities

 

 

 

 

 

 

 

(4,777

)

Deferred revenue

 

 

 

 

 

 

 

(920

)

Long-term deferred tax liabilities

 

 

 

 

 

 

 

(8,393

)

Noncurrent operating lease liabilities

 

 

 

 

 

 

 

(1,094

)

Other long-term liabilities

 

 

 

 

 

 

 

(307

)

Total purchase price

 

 

 

 

 

 

$

102,913

 

 

 

 

 

 

 

 

 

 
v3.23.2
Goodwill And Intangible Assets, Net (Tables)
 6 Months Ended
Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Identified Intangible Assets

Identified intangible assets consisted of the following (in thousands):

 

 

 

June 30, 2023

 

 

 

Average Life
(Years)

 

Gross Amount

 

 

Accumulated
Amortization

 

 

Net Carrying Value

 

Finite-lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

Acquired patents

 

3-10

 

$

22,189

 

 

$

(7,281

)

 

$

14,908

 

Existing technology / content database

 

5-10

 

 

241,077

 

 

 

(197,040

)

 

 

44,037

 

Customer contracts and related relationships

 

3-9

 

 

502,391

 

 

 

(355,523

)

 

 

146,868

 

Trademarks/trade name

 

4-10

 

 

39,613

 

 

 

(32,243

)

 

 

7,370

 

Non-competition agreements

 

1-2

 

 

3,101

 

 

 

(2,666

)

 

 

435

 

Total finite-lived intangible assets

 

 

 

 

808,371

 

 

 

(594,753

)

 

 

213,618

 

Indefinite-lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

TiVo tradename/trademarks

 

N/A

 

 

21,400

 

 

 

—

 

 

 

21,400

 

Total intangible assets

 

 

 

$

829,771

 

 

$

(594,753

)

 

$

235,018

 

 

 

 

 

December 31, 2022

 

 

 

Average Life
(Years)

 

Gross Amount

 

 

Accumulated
Amortization

 

 

Net Carrying Value

 

Finite-lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

Acquired patents

 

3-10

 

$

22,189

 

 

$

(6,175

)

 

$

16,014

 

Existing technology / content database

 

5-10

 

 

240,894

 

 

 

(190,671

)

 

 

50,223

 

Customer contracts and related relationships

 

3-9

 

 

502,188

 

 

 

(335,981

)

 

 

166,207

 

Trademarks/trade name

 

4-10

 

 

39,613

 

 

 

(29,733

)

 

 

9,880

 

Non-competition agreements

 

1-2

 

 

3,101

 

 

 

(2,449

)

 

 

652

 

Total finite-lived intangible assets

 

 

 

 

807,985

 

 

 

(565,009

)

 

 

242,976

 

Indefinite-lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

TiVo tradename/trademarks

 

N/A

 

 

21,400

 

 

 

—

 

 

 

21,400

 

Total intangible assets

 

 

 

$

829,385

 

 

$

(565,009

)

 

$

264,376

 
Estimated Future Amortization Expense

As of June 30, 2023, the estimated future amortization expense of total finite-lived intangible assets was as follows (in thousands):

 

Year Ending December 31:

 

 

 

2023 (remaining 6 months)

 

$

28,143

 

2024

 

 

43,388

 

2025

 

 

34,817

 

2026

 

 

31,493

 

2027

 

 

30,650

 

Thereafter

 

 

45,127

 

Total future amortization

 

$

213,618

 
v3.23.2
Net Loss Per Share (Tables)
 6 Months Ended
Jun. 30, 2023
Earnings Per Share [Abstract]  
Computation of Basic and Diluted Net Loss Per Share

The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share amount):

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to the Company - basic and diluted

 

$

(38,395

)

 

$

(30,130

)

 

$

(70,395

)

 

$

(59,652

)

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average number of shares used to compute net loss per share attributable to the Company - basic and diluted

 

 

42,770

 

 

 

42,024

 

 

 

42,499

 

 

 

42,024

 

Net loss per share attributable to the Company - basic and diluted

 

$

(0.90

)

 

$

(0.72

)

 

$

(1.66

)

 

$

(1.42

)
Schedule of Potentially Dilutive Shares Were Excluded From Calculation of Diluted Net Loss Per Share

The following potentially dilutive shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented (in thousands):

 

 

Three and Six Months Ended June 30,

 

 

 

2023

 

Options

 

 

120

 

Restricted stock awards and units

 

 

7,345

 

ESPP

 

 

83

 

Total

 

 

7,548

 
v3.23.2
Stockholders' Equity And Stock-Based Compensation (Tables)
 6 Months Ended
Jun. 30, 2023
Summary of Stock Option Activity

Stock option activity for the six months ended June 30, 2023 is as follows (in thousands, except per share amounts):

 

 

 

Options Outstanding

 

 

 

Number of
Shares
Subject
to Options

 

 

Weighted
Average
Exercise
Price Per
Share

 

Balance at December 31, 2022

 

 

146

 

 

$

25.48

 

Options exercised

 

 

—

 

 

$

—

 

Options canceled / forfeited / expired

 

 

(26

)

 

$

21.43

 

Balance at June 30, 2023

 

 

120

 

 

$

26.35

 
Summary of Restricted Stock Awards and Units

Information with respect to outstanding restricted stock awards and units (including both time-based vesting and performance-based vesting) as of June 30, 2023 is as follows (in thousands, except per share amounts):

 

 

 

Restricted Stock and Restricted Stock Units

 

 

 

Number of
Shares
Subject to
Time-
based Vesting

 

 

Number of
Shares
Subject to
Performance-
based Vesting

 

 

Total
Number of
Shares

 

 

Weighted
Average
Grant Date
Fair Value
Per Share

 

Balance at December 31, 2022

 

 

3,713

 

 

 

891

 

 

 

4,604

 

 

$

20.35

 

Awards and units granted

 

 

2,960

 

 

 

718

 

 

 

3,678

 

 

$

11.47

 

Awards and units vested / earned

 

 

(790

)

 

 

—

 

 

 

(790

)

 

$

20.33

 

Awards and units canceled / forfeited

 

 

(147

)

 

 

—

 

 

 

(147

)

 

$

16.59

 

Balance at June 30, 2023

 

 

5,736

 

 

 

1,609

 

 

 

7,345

 

 

$

15.98

 
Summary of Stock-Based Compensation Expense

The effect of recording stock-based compensation expense for the three and six months ended June 30, 2023 and 2022 is as follows (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Cost of revenue, excluding depreciation and amortization of intangible assets

 

$

927

 

 

$

773

 

 

$

1,719

 

 

$

1,398

 

Research and development

 

 

6,405

 

 

 

5,681

 

 

 

11,956

 

 

 

10,780

 

Selling, general and administrative

 

 

10,759

 

 

 

4,085

 

 

 

20,384

 

 

 

6,998

 

Total stock-based compensation expense

 

$

18,091

 

 

$

10,539

 

 

$

34,059

 

 

$

19,176

 

 
Stock-Based Compensation Expense Categorized by Award Type

Stock-based compensation expense categorized by award type for the three and six months ended June 30, 2023 and 2022 is summarized in the table below (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Restricted stock awards and units

 

$

16,706

 

 

$

9,548

 

 

$

31,686

 

 

$

17,371

 

Employee stock purchase plan

 

 

1,385

 

 

 

991

 

 

 

2,373

 

 

 

1,805

 

Total stock-based compensation expense

 

$

18,091

 

 

$

10,539

 

 

$

34,059

 

 

$

19,176

 
Employee Stock Purchase Plan  
Schedule of Valuation Assumptions Used in Estimating Fair Value and Awards Granted

The following table summarizes the valuation assumptions used in estimating the fair value of the 2022 ESPP for the offering period in effect using Black-Scholes option pricing model:

 

 

Six Months Ended June 30,

 

 

2023

Expected life (years)

 

0.5 — 2.0

Risk-free interest rate

 

4.33% — 5.44%

Dividend yield

 

—%

Expected volatility

 

44.11% — 51.19%
Market-Based Performance Stock Units  
Schedule of Valuation Assumptions Used in Estimating Fair Value and Awards Granted

The following assumptions were used to value the market-based PSUs granted during the period:

 

 

Six Months Ended June 30,

 

 

 

2023

 

Expected life (years)

 

 

2.8

 

Risk-free interest rate

 

 

4.54

%

Dividend yield

 

 

—

%

Expected volatility

 

 

49.02

%
v3.23.2
Leases (Tables)
 6 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Schedule of Operating Lease Costs

The components of operating lease costs were as follows (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Fixed lease cost (1)

 

$

5,325

 

 

$

4,901

 

 

$

10,483

 

 

$

9,924

 

Variable lease cost

 

 

1,457

 

 

 

1,418

 

 

 

2,944

 

 

 

2,483

 

Less: sublease income

 

 

(2,593

)

 

 

(2,705

)

 

 

(5,273

)

 

 

(4,811

)

Total operating lease cost

 

$

4,189

 

 

$

3,614

 

 

$

8,154

 

 

$

7,596

 

 

(1) Includes short-term leases expensed on a straight-line basis.
Schedule of Supplemental Cash Flow Information arising from Lease Transactions

The following table presents supplemental cash flow information arising from lease transactions (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Cash payments included in the measurement of operating lease liabilities

 

$

5,000

 

 

$

4,865

 

 

$

10,208

 

 

$

9,900

 

Operating ROU assets obtained in exchange for lease obligations

 

$

4,013

 

 

$

1,195

 

 

$

4,013

 

 

$

1,779

 
Schedule of Weighted-average Remaining Term of Operating Leases and Weighted-average of Discount Rate of Present Value of Operating Lease Liabilities

The weighted-average remaining term of the Company’s operating leases and the weighted-average discount rate used to measure the present value of the operating lease liabilities are as follows:

 

 

 

June 30,
2023

 

 

December 31, 2022

 

Weighted-average remaining lease term (in years)

 

 

3.65

 

 

 

3.69

 

Weighted-average discount rate

 

 

5.2

%

 

 

5.1

%
Schedule of Future Minimum Lease Payments and Related Lease Liabilities

Future minimum lease payments and related lease liabilities as of June 30, 2023 were as follows (in thousands):

 

Year Ending December 31:

 

Operating Lease Payments (1)

 

 

Sublease Income

 

 

Net Operating Lease Payments

 

2023 (remaining 6 months)

 

$

8,782

 

 

$

(3,867

)

 

$

4,915

 

2024

 

 

18,079

 

 

 

(7,849

)

 

 

10,230

 

2025

 

 

16,442

 

 

 

(7,671

)

 

 

8,771

 

2026

 

 

8,582

 

 

 

(1,055

)

 

 

7,527

 

2027

 

 

3,818

 

 

 

—

 

 

 

3,818

 

Thereafter

 

 

3,405

 

 

 

—

 

 

 

3,405

 

Total lease payments

 

 

59,108

 

 

$

(20,442

)

 

$

38,666

 

Less: imputed interest

 

 

(5,695

)

 

 

 

 

 

 

Present value of operating lease liabilities

 

$

53,413

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: operating lease liabilities, current portion

 

 

(15,592

)

 

 

 

 

 

 

Noncurrent operating lease liabilities

 

$

37,821

 

 

 

 

 

 

 

(1) Future minimum lease payments exclude short-term leases as well as payments to landlords for variable common area maintenance, insurance and real estate taxes.
v3.23.2
The Company and Basis of Presentation - Additional Information (Details)
$ / shares in Units, $ in Thousands
 6 Months Ended 12 Months Ended
Oct. 01, 2022
$ / shares
shares
Jun. 30, 2023
USD ($)
Business
Segment
$ / shares
shares
Dec. 31, 2022
USD ($)
$ / shares
shares
Mar. 31, 2023
Sep. 21, 2022
$ / shares
Organization Consolidation And Presentation [Line Items]          
Common stock, par value (in dollars per share) | $ / shares   $ 0.001 $ 0.001    
Common stock shares distributed | shares   43,214,000 42,066,000    
Number of reportable business segments | Segment   1      
Number of business category | Business   4      
Long-term deferred tax liabilities   $ 12,462 $ 12,899    
Other long-term liabilities   $ 11,092 12,990    
Decrease deferred income tax     (7,700)    
Increase accrued and other liabilities     7,700    
Unrecognized Tax Benefits          
Organization Consolidation And Presentation [Line Items]          
Long-term deferred tax liabilities     (7,700)    
Other long-term liabilities     $ 7,700    
Xperi Holding          
Organization Consolidation And Presentation [Line Items]          
Number of independent publicly traded companies | Business   2      
Number of intellectual property licensing business | Business   1      
Number of product business | Business   1      
Perceive Corporation          
Organization Consolidation And Presentation [Line Items]          
Ownership interest, percentage       77.00%  
Spin-Off | Xperi Holding          
Organization Consolidation And Presentation [Line Items]          
Record date of outstanding common stock distribution for spinoff Sep. 21, 2022        
Number of shares received for every ten common stock shares held on record date | shares 4        
Number of common stock shares considered as one unit for issue of shares in spinoff | shares 10        
Common stock, par value (in dollars per share) | $ / shares $ 0.001       $ 0.001
v3.23.2
Summary of Significant Accounting Policies - Additional Information (Details) - Credit Concentration Risk - Customer
 6 Months Ended 12 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Jun. 30, 2022
Aggregate trade receivables      
Summary of Significant Accounting Policies [Line Items]      
Number of customers, concentration of risk disclosure 0 0  
Aggregate trade receivables | Customer One      
Summary of Significant Accounting Policies [Line Items]      
Concentration risk, percentage (or more) 10.00% 10.00%  
Revenue      
Summary of Significant Accounting Policies [Line Items]      
Number of customers, concentration of risk disclosure 0   1
v3.23.2
Revenue - Schedule of Revenue by Market (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Disaggregation of Revenue [Line Items]        
Total revenue $ 126,872 $ 126,203 $ 253,711 $ 245,092
Pay TV        
Disaggregation of Revenue [Line Items]        
Total revenue 58,031 60,371 118,325 124,525
Consumer Electronics        
Disaggregation of Revenue [Line Items]        
Total revenue 31,716 39,493 68,451 67,583
Connected Car        
Disaggregation of Revenue [Line Items]        
Total revenue 23,474 20,855 44,022 40,574
Media Platform        
Disaggregation of Revenue [Line Items]        
Total revenue $ 13,651 $ 5,484 $ 22,913 $ 12,410
v3.23.2
Revenue - Schedule of Geographic Revenue Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total revenue $ 126,872 $ 126,203 $ 253,711 $ 245,092
Total Revenue | Geographic Concentration Risk        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Concentration risk, percentage (or more) 100.00% 100.00% 100.00% 100.00%
U.S        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total revenue $ 69,133 $ 78,409 $ 134,292 $ 138,080
U.S | Total Revenue | Geographic Concentration Risk        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Concentration risk, percentage (or more) 54.00% 62.00% 53.00% 56.00%
Japan        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total revenue $ 18,566 $ 16,494 $ 36,061 $ 32,044
Japan | Total Revenue | Geographic Concentration Risk        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Concentration risk, percentage (or more) 15.00% 13.00% 14.00% 13.00%
China        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total revenue $ 10,527 $ 4,163 $ 22,037 $ 14,455
China | Total Revenue | Geographic Concentration Risk        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Concentration risk, percentage (or more) 8.00% 3.00% 9.00% 6.00%
Europe and Middle East        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total revenue $ 8,416 $ 7,048 $ 18,582 $ 18,736
Europe and Middle East | Total Revenue | Geographic Concentration Risk        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Concentration risk, percentage (or more) 7.00% 6.00% 7.00% 8.00%
Asia and other        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total revenue $ 20,230 $ 20,089 $ 42,739 $ 41,777
Asia and other | Total Revenue | Geographic Concentration Risk        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Concentration risk, percentage (or more) 16.00% 16.00% 17.00% 17.00%
v3.23.2
Revenue - Schedule of Contract Assets (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]    
Unbilled contracts receivable, net $ 60,068 $ 65,251
Other current assets 534 848
Unbilled contracts receivable, noncurrent 16,840 4,289
Other noncurrent assets 799 978
Total contract assets $ 78,241 $ 71,366
v3.23.2
Revenue - Additional Information (Details) - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
Revenue Recognition [Line Items]    
Deferred revenue, current and noncurrent $ 42.7 $ 44.5
v3.23.2
Revenue - Schedule of Revenue Recognized in Period (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Revenue from Contract with Customer [Abstract]        
Amounts included in deferred revenue at the beginning of the period $ 5,547 $ 6,269 $ 12,266 $ 14,601
Performance obligations satisfied in previous periods (true ups, licensee reporting adjustments and settlements) [1],[2] $ 597 $ 20,830 $ (1,285) $ 20,866
[1] For the three and six months ended June 30, 2022, the Company recorded revenue from both the settlement of a contract dispute with a large mobile imaging customer, and the execution of a long-term license agreement with a leading consumer electronics and over-the-top service provider. The long-term license agreement was effective as of the expiration of the prior agreement, and the Company expected to record revenue from the license agreement in future periods.
[2] True ups represent the differences between the Company’s quarterly estimates of per-unit royalty revenue and actual production/sales-based royalties reported by licensees in the following period. Licensee reporting adjustments represent corrections or revisions to previously reported per-unit royalties by licensees, generally resulting from the Company’s inquiries or compliance audits. Settlements represent resolutions of litigation or disputes during the period for past royalties owed.
v3.23.2
Revenue - Schedule of Remaining Performance Obligations (Details)
$ in Thousands
Jun. 30, 2023
USD ($)
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Remaining performance obligations $ 90,460
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-07-01  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Remaining performance obligations $ 32,688
Performance obligations expected to be satisfied, expected timing 6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Remaining performance obligations $ 30,962
Performance obligations expected to be satisfied, expected timing 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Remaining performance obligations $ 17,592
Performance obligations expected to be satisfied, expected timing 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-01-01  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Remaining performance obligations $ 6,173
Performance obligations expected to be satisfied, expected timing 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2027-01-01  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Remaining performance obligations $ 1,633
Performance obligations expected to be satisfied, expected timing 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2028-01-01  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Remaining performance obligations $ 1,412
Performance obligations expected to be satisfied, expected timing 1 year
v3.23.2
Revenue - Schedule of Remaining Performance Obligations (Details 1)
$ in Thousands
Jun. 30, 2023
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligations $ 90,460
v3.23.2
Revenue - Schedule of Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Accounts Receivable        
Accounts Notes And Loans Receivable [Line Items]        
Beginning balance $ 2,067 $ 1,962 $ 1,950 $ 2,245
Provision for credit losses 186 201 322 21
Recoveries/charge-off (41) (358) (60) (461)
Ending balance 2,212 1,805 2,212 1,805
Unbilled Contracts Receivable        
Accounts Notes And Loans Receivable [Line Items]        
Beginning balance 350 369 369 480
Provision for credit losses (25) (63) (44) (174)
Ending balance $ 325 $ 306 $ 325 $ 306
v3.23.2
Composition of Certain Financial Statement Captions - Schedule of Other Current Assets (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Prepaid Income Tax $ 2,170 $ 1,777
Prepaid expenses 18,444 20,001
Finished goods inventory 8,068 6,662
Other 11,290 13,734
Total $ 39,972 $ 42,174
v3.23.2
Composition of Certain Financial Statement Captions - Schedule of Property and Equipment, Net (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]    
Total property and equipment $ 124,875 $ 119,645
Less: accumulated depreciation and amortization (78,518) (71,818)
Property and equipment, net 46,357 47,827
Equipment, furniture and other    
Property, Plant and Equipment [Line Items]    
Total property and equipment 84,501 78,976
Building and improvements    
Property, Plant and Equipment [Line Items]    
Total property and equipment 18,331 18,331
Land    
Property, Plant and Equipment [Line Items]    
Total property and equipment 5,300 5,300
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Total property and equipment $ 16,743 $ 17,038
v3.23.2
Composition of Certain Financial Statement Captions - Schedule of Accrued Liabilities (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Employee compensation and benefits $ 31,504 $ 53,546
Third-party royalties 9,224 7,620
Accrued expenses 26,986 22,928
Current portion of operating lease liabilities $ 15,592 [1] $ 17,195
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Total Total
Accrued income tax $ 635 $ 4,926
Other 7,181 3,799
Total $ 91,122 $ 110,014
[1] Future minimum lease payments exclude short-term leases as well as payments to landlords for variable common area maintenance, insurance and real estate taxes.
v3.23.2
Composition of Certain Financial Statement Captions - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning balance $ 430,574 $ 1,018,813 $ 448,986 $ 1,015,957
Other comprehensive income (loss) before reclassification (199) (2,403) 1,273 (3,449)
Amounts reclassified from accumulated other comprehensive loss into net loss (332)   (328)  
Other comprehensive income (loss), net of tax (531) (2,403) 945 (3,449)
Ending balance 414,410 1,014,347 414,410 1,014,347
Unrealized Gains (Losses) on Cash Flow Hedges        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning balance 769   (94)  
Other comprehensive income (loss) before reclassification 322   1,181  
Amounts reclassified from accumulated other comprehensive loss into net loss (332)   (328)  
Other comprehensive income (loss), net of tax (10)   853  
Ending balance 759   759  
Foreign Currency Translation Adjustment        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning balance (3,412) (1,722) (4,025) (676)
Other comprehensive income (loss) before reclassification (521) (2,403) 92 (3,449)
Other comprehensive income (loss), net of tax (521) (2,403) 92 (3,449)
Ending balance (3,933) (4,125) (3,933) (4,125)
Accumulated Other Comprehensive Income (Loss)        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning balance (2,643) (1,722) (4,119) (676)
Ending balance $ (3,174) $ (4,125) $ (3,174) $ (4,125)
v3.23.2
Financial Instruments - Additional Information (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Undesignated Derivative Instruments          
Schedule Of Investments [Line Items]          
Gains on derivatives $ 500,000   $ 700,000    
TiVo Merger | Non-marketable Equity Securities          
Schedule Of Investments [Line Items]          
Equity securities accounted for under equity method 4,700,000   4,700,000   $ 4,400,000
Impairment charges related to non-marketable equity securities $ 0 $ 0 $ 0 $ 0  
v3.23.2
Financial Instruments - Schedule of Notional and Fair Values of All Derivative Instruments (Details) - Foreign Exchange Contracts - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Designated Derivative Instruments | Cash Flow Hedging [Member]    
Derivatives, Fair Value [Line Items]    
Other current assets $ 759  
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] Prepaid Expense and Other Assets, Current Prepaid Expense and Other Assets, Current
Accrued liabilities   $ 94
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] Accrued Liabilities, Current Accrued Liabilities, Current
Total fair value $ 759 $ 94
Total notional value 50,880 $ 52,197
Undesignated Derivative Instruments    
Derivatives, Fair Value [Line Items]    
Other current assets $ 464  
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] Prepaid Expense and Other Assets, Current Prepaid Expense and Other Assets, Current
Accrued liabilities   $ 41
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] Accrued Liabilities, Current Accrued Liabilities, Current
Total fair value $ 464 $ 41
Total notional value $ 7,149 $ 7,402
v3.23.2
Financial Instruments - Schedule of Gross Amounts of Foreign Currency Forward Contracts (Details) - Foreign Exchange Contracts - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Derivatives, Fair Value [Line Items]    
Gross amount of recognized assets $ 1,320  
Gross amount of recognized liabilities (97) $ (135)
Net liability presented in the Consolidated Balance Sheets $ 1,223 $ (135)
v3.23.2
Financial Instruments - Summary of the Gains Recognized upon Settlement of the Hedged Transactions (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2023
Derivatives, Fair Value [Line Items]    
Gain on fair value hedges $ 462 $ 477
Research and development    
Derivatives, Fair Value [Line Items]    
Gain on fair value hedges 403 414
Selling, general and administrative    
Derivatives, Fair Value [Line Items]    
Gain on fair value hedges $ 59 $ 63
v3.23.2
Fair Value - Schedule of Carrying Amounts and Estimated Fair Values (Details) - Recurring - Senior Unsecured Promissory Note - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Total long-term debt, net - Carrying Amount $ 50,000 $ 50,000
Total long-term debt, net - Estimated Fair Value $ 49,093 $ 48,478
v3.23.2
Business Combination - Additional Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jul. 01, 2022
Jun. 30, 2023
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Business Acquisition [Line Items]              
Goodwill impairment charge     $ 250,600 $ 354,000      
Revenue:   $ 126,872     $ 126,203 $ 253,711 $ 245,092
Operating loss   $ (35,182)     $ (22,293) $ (68,783) $ (51,219)
Vewd              
Business Acquisition [Line Items]              
Purchase price $ 102,913            
Cash included in the total consideration 52,900            
Debt included in the total consideration 50,000            
Goodwill $ 68,115            
v3.23.2
Business Combination - Schedule of Purchase Price Allocation (Details) - Vewd
$ in Thousands
Jul. 01, 2022
USD ($)
Business Acquisition [Line Items]  
Cash and cash equivalents $ 2,684
Accounts receivable 3,341
Unbilled contracts receivable 2,335
Other current assets 1,208
Property and equipment 443
Operating lease right-of-use assets 2,020
Identifiable intangible assets:  
Identifiable intangible assets 38,150
Goodwill 68,115
Other long-term assets 977
Accounts payable (869)
Accrued liabilities (4,777)
Deferred revenue (920)
Long-term deferred tax liabilities (8,393)
Noncurrent operating lease liabilities (1,094)
Other long-term liabilities (307)
Total purchase price $ 102,913
Technology  
Business Acquisition [Line Items]  
Estimated Useful Life (years) 7 years
Identifiable intangible assets:  
Identifiable intangible assets $ 28,050
Customer Relationships - Large  
Business Acquisition [Line Items]  
Estimated Useful Life (years) 7 years
Identifiable intangible assets:  
Identifiable intangible assets $ 4,900
Customer Relationships - Small  
Business Acquisition [Line Items]  
Estimated Useful Life (years) 4 years
Identifiable intangible assets:  
Identifiable intangible assets $ 3,500
Non-competition agreements  
Business Acquisition [Line Items]  
Estimated Useful Life (years) 2 years
Identifiable intangible assets:  
Identifiable intangible assets $ 870
Trade name  
Business Acquisition [Line Items]  
Estimated Useful Life (years) 5 years
Identifiable intangible assets:  
Identifiable intangible assets $ 830
v3.23.2
Goodwill And Intangible Assets, Net - Additional Information (Details)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2022
USD ($)
Sep. 30, 2022
USD ($)
Dec. 31, 2022
Days
Goodwill and Intangible Assets Disclosure [Abstract]      
Number of trading days | Days     10
Goodwill impairment charge | $ $ 250.6 $ 354.0  
v3.23.2
Goodwill And Intangible Assets, Net - Identified Intangible Assets (Details) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, gross $ 829,771 $ 829,385
Finite-lived intangible assets, Gross Assets 808,371 807,985
Finite-lived intangible assets, Accumulated Amortization (594,753) (565,009)
Intangible assets, net 235,018 264,376
Finite-lived intangible assets, Net 213,618 242,976
TiVo tradename/trademarks    
Finite-Lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets, Gross Assets 21,400 21,400
Indefinite-lived intangible assets, Net 21,400 21,400
Acquired patents    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible assets, Gross Assets 22,189 22,189
Finite-lived intangible assets, Accumulated Amortization (7,281) (6,175)
Finite-lived intangible assets, Net $ 14,908 $ 16,014
Acquired patents | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Estimated Useful Life (years) 3 years 3 years
Acquired patents | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Estimated Useful Life (years) 10 years 10 years
Existing technology / content database    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible assets, Gross Assets $ 241,077 $ 240,894
Finite-lived intangible assets, Accumulated Amortization (197,040) (190,671)
Finite-lived intangible assets, Net $ 44,037 $ 50,223
Existing technology / content database | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Estimated Useful Life (years) 5 years 5 years
Existing technology / content database | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Estimated Useful Life (years) 10 years 10 years
Customer contracts and related relationships    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible assets, Gross Assets $ 502,391 $ 502,188
Finite-lived intangible assets, Accumulated Amortization (355,523) (335,981)
Finite-lived intangible assets, Net $ 146,868 $ 166,207
Customer contracts and related relationships | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Estimated Useful Life (years) 3 years 3 years
Customer contracts and related relationships | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Estimated Useful Life (years) 9 years 9 years
Trademarks/trade name    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible assets, Gross Assets $ 39,613 $ 39,613
Finite-lived intangible assets, Accumulated Amortization (32,243) (29,733)
Finite-lived intangible assets, Net $ 7,370 $ 9,880
Trademarks/trade name | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Estimated Useful Life (years) 4 years 4 years
Trademarks/trade name | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Estimated Useful Life (years) 10 years 10 years
Non-competition agreements    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible assets, Gross Assets $ 3,101 $ 3,101
Finite-lived intangible assets, Accumulated Amortization (2,666) (2,449)
Finite-lived intangible assets, Net $ 435 $ 652
Non-competition agreements | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Estimated Useful Life (years) 1 year 1 year
Non-competition agreements | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Estimated Useful Life (years) 2 years 2 years
v3.23.2
Goodwill And Intangible Assets, Net - Estimated Future Amortization Expense (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]    
2023 (remaining 6 months) $ 28,143  
2024 43,388  
2025 34,817  
2026 31,493  
2027 30,650  
Thereafter 45,127  
Finite-lived intangible assets, Net $ 213,618 $ 242,976
v3.23.2
Debt - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 01, 2022
Jun. 30, 2023
Jun. 30, 2023
Promissory Note      
Line Of Credit Facility [Line Items]      
Interest expense   $ 0.8 $ 1.5
Vewd | Promissory Note      
Line Of Credit Facility [Line Items]      
Debt instrument, principal amount $ 50.0    
Interest rate 6.00%    
Debt instrument, basis spread on variable rate 2.00%    
Debt instrument, maturity date Jul. 01, 2025    
2021 Convertible Notes      
Line Of Credit Facility [Line Items]      
Borrowings   $ 50.0 $ 50.0
v3.23.2
Net Loss Per Share - Additional Information (Details) - $ / shares
Oct. 01, 2022
Jun. 30, 2023
Dec. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Common stock, shares issued (in shares)   43,214,000 42,066,000
Common stock, par value   $ 0.001 $ 0.001
Spin-Off | Xperi Inc.      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Common stock, shares issued (in shares) 42,023,632    
Common stock, par value $ 0.001    
Record date of outstanding common stock distribution for spinoff Sep. 21, 2022    
v3.23.2
Net Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Numerator:        
Net loss attributable to the Company - basic $ (38,395) $ (30,130) $ (70,395) $ (59,652)
Net loss attributable to the Company - diluted $ (38,395) $ (30,130) $ (70,395) $ (59,652)
Denominator:        
Weighted-average number of shares used to compute net loss per share attributable to the Company - basic 42,770 42,024 42,499 42,024
Weighted-average number of shares used to compute net loss per share attributable to the Company - diluted 42,770 42,024 42,499 42,024
Net loss per share attributable to the Company - basic $ (0.90) $ (0.72) $ (1.66) $ (1.42)
Net loss per share attributable to the Company - diluted $ (0.90) $ (0.72) $ (1.66) $ (1.42)
v3.23.2
Net Loss Per Share - Schedule of Potentially Dilutive Shares Were Excluded From Calculation of Diluted Net Loss Per Share (Details) - shares
shares in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potentially dilutive common stock equivalents 7,548 7,548
Options    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potentially dilutive common stock equivalents 120 120
Restricted Stock Awards and Units    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potentially dilutive common stock equivalents 7,345 7,345
ESPP    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potentially dilutive common stock equivalents 83 83
v3.23.2
Stockholders' Equity And Stock-Based Compensation (Additional Information) (Details) - USD ($)
 3 Months Ended 6 Months Ended
May 31, 2023
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Incremental stock based compensation expense   $ 1,400,000   $ 2,700,000  
Stock-based compensation expense recognized   $ 18,091,000 $ 10,539,000 $ 34,059,000 $ 19,176,000
Number of shares, options granted       0 0
Employee Stock Purchase Plan          
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Expiration period       24 months  
Maximum employee subscription rate   100.00%   100.00%  
Purchase price of common stock, percent       85.00%  
Maximum employee subscription amount   $ 25,000,000   $ 25,000,000  
Rolling expiration period       24 months  
Number of shares issued 644,342,000        
Aggregate net proceeds from ESPP $ 5,900,000        
Stock-based compensation expense recognized   1,385,000 991,000 $ 2,373,000 $ 1,805,000
Performance Shares | Minimum [Member]          
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Share Based Compensation Arrangement By Share Based Payment Award Percentage Of Grant Available To Vest       0.00%  
Performance Shares | Maximum [Member]          
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Share Based Compensation Arrangement By Share Based Payment Award Percentage Of Grant Available To Vest       200.00%  
Former Parents PSUs          
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Incremental compensation expense modification, description       During the second quarter of 2023, in accordance with the Employee Matters Agreement executed by the Company and the Former Parent in connection with the Separation, the Company modified certain vesting conditions related to market-based PSUs granted in 2022, resulting in a total incremental compensation expense of $2.9 million, which will be recognized over the remaining requisite service period through 2025.  
Incremental compensation expense recognized over requisite service period through 2025   2,900,000      
Incremental stock-based compensation expense modification   $ 300,000      
Corporate and Shared Functional Employees          
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Stock-based compensation expense recognized     $ 2,000,000.0   $ 4,500,000
2022 EIP          
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Expiration period       10 years  
Vesting period       4 years  
Number of shares reserved for issuance   12,200,000   12,200,000  
Shares reserved for grant (in shares)   4,200,000   4,200,000  
2022 EIP | Performance Shares          
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Vesting period       3 years  
2022 EIP | Time-based Awards | Minimum [Member]          
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Vesting period       3 years  
2022 EIP | Time-based Awards | Maximum [Member]          
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Vesting period       4 years  
v3.23.2
Stockholders' Equity And Stock-Based Compensation - Schedule of Valuation Assumptions Used in Estimating Fair Value and Awards Granted (Details)
 6 Months Ended
Jun. 30, 2023
Employee Stock Purchase Plan  
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]  
Risk-free interest rate, minimum 4.33%
Risk-free interest rate, maximum 5.44%
Expected volatility, minimum 44.11%
Expected volatility, maximum 51.19%
Employee Stock Purchase Plan | Minimum  
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]  
Expected life (in years) 6 months
Employee Stock Purchase Plan | Maximum  
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]  
Expected life (in years) 2 years
Market-Based Performance Stock Units  
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]  
Expected life (in years) 2 years 9 months 18 days
Risk-free interest rate 4.54%
Expected volatility 49.02%
v3.23.2
Stockholder's Equity And Stock-Based Compensation - Summary of Stock Option Activity (Details)
shares in Thousands
 6 Months Ended
Jun. 30, 2023
$ / shares
shares
Number of Shares Subject to Options  
Number of Shares, Beginning balance (shares) | shares 146
Number of Shares, Options canceled / forfeited / expired (shares) | shares (26)
Number of Shares, Ending balance (shares) | shares 120
Weighted Average Exercise Price Per Share  
Weighted Average Exercise Price Per Share, Beginning balance (USD per share) | $ / shares $ 25.48
Weighted Average Exercise Price Per Share, Options canceled / forfeited / expired (USD per share) | $ / shares 21.43
Weighted Average Exercise Price Per Share, Ending balance (USD per share) | $ / shares $ 26.35
v3.23.2
Stockholder's Equity And Stock-Based Compensation - Summary of Restricted Stock Awards and Units (Details)
shares in Thousands
 6 Months Ended
Jun. 30, 2023
$ / shares
shares
Time-Based Restricted Stock Award and Restricted Stock Units  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]  
Restricted stock awards and units, beginning balance (shares) 3,713
Restricted stock awards and units, granted (shares) 2,960
Restricted stock awards and units, vested / earned (shares) (790)
Restricted stock awards and units, canceled / forfeited (shares) (147)
Restricted stock awards and units, ending balance (shares) 5,736
Performance-Based Restricted Stock Award and Restricted Stock Units  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]  
Restricted stock awards and units, beginning balance (shares) 891
Restricted stock awards and units, granted (shares) 718
Restricted stock awards and units, ending balance (shares) 1,609
Restricted Stock and Restricted Stock Units  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]  
Restricted stock awards and units, beginning balance (shares) 4,604
Restricted stock awards and units, granted (shares) 3,678
Restricted stock awards and units, vested / earned (shares) (790)
Restricted stock awards and units, canceled / forfeited (shares) (147)
Restricted stock awards and units, ending balance (shares) 7,345
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]  
Weighted average grant date fair value per share of restricted stock and units, beginning balance (USD per share) | $ / shares $ 20.35
Weighted average grant date fair value per share of restricted stock and units, granted (USD per share) | $ / shares 11.47
Weighted average grant date fair value per share of restricted stock and units, vested / earned (USD per share) | $ / shares 20.33
Weighted average grant date fair value of restricted stock and units, canceled / forfeited (USD per share) | $ / shares 16.59
Weighted average grant date fair value per share of restricted stock and units, ending balance (USD per share) | $ / shares $ 15.98
v3.23.2
Stockholder's Equity And Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Total stock-based compensation expense $ 18,091 $ 10,539 $ 34,059 $ 19,176
Cost of revenue, excluding depreciation and amortization of intangible assets        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Total stock-based compensation expense 927 773 1,719 1,398
Research and development        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Total stock-based compensation expense 6,405 5,681 11,956 10,780
Selling, general and administrative        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Total stock-based compensation expense $ 10,759 $ 4,085 $ 20,384 $ 6,998
v3.23.2
Stockholder's Equity And Stock-Based Compensation - Stock-Based Compensation Expense Categorized by Award Type (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Total stock-based compensation expense $ 18,091 $ 10,539 $ 34,059 $ 19,176
Employee Stock Purchase Plan        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Total stock-based compensation expense 1,385 991 2,373 1,805
Restricted Stock and Restricted Stock Units        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Total stock-based compensation expense $ 16,706 $ 9,548 $ 31,686 $ 17,371
v3.23.2
Income Taxes - Additional Information (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Income Tax Disclosure [Abstract]          
Provision for (benefit from) income taxes $ 5,090,000 $ 8,395,000 $ 4,796,000 $ 10,475,000  
Effective tax rate (percent) (14.90%) (37.20%) (7.10%) (20.50%)  
Income (loss) before taxes $ (34,274,000) $ (22,583,000) $ (67,507,000) $ (50,993,000)  
Decrease in gross unrecognized tax benefits     100,000    
Gross unrecognized tax benefits 19,300,000   19,300,000    
Unrecognized tax benefits that would impact the effective income tax rate 8,700,000   8,700,000    
Interest and tax penalties related to unrecognized tax benefits   $ 0   $ 0  
Accrued interest and tax penalties related to unrecognized tax benefits $ 100,000   $ 100,000   $ 100,000
Income tax examination description     As of June 30, 2023, the Company’s 2018 through 2023 tax years are generally open and subject to potential examination in one or more jurisdictions. In addition, in the United States, any net operating losses or credits that were generated in prior years but not yet fully utilized in a year that is closed under the statute of limitations may also be subject to examinatio    
v3.23.2
Leases - Additional Information (Details)
$ in Millions
 6 Months Ended
Jun. 30, 2023
USD ($)
Lessee Lease Description [Line Items]  
Operating lease existence of option to renew true
Operating lease description The Company leases office and research facilities, data centers and office equipment under operating leases with various expiration dates through 2030. Certain leases offer the option to renew for up to ten years and to terminate before the expiration date. Leases with an initial term of 12 months or less are not recorded on the balance sheets
Impairment charges on operating lease ROU assets and property and equipment including leasehold impariments $ 1.1
Maximum  
Lessee Lease Description [Line Items]  
Lessee term of period to renew 10 years
v3.23.2
Leases - Schedule of Operating Lease Costs (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Leases [Abstract]        
Fixed lease cost [1] $ 5,325 $ 4,901 $ 10,483 $ 9,924
Variable lease cost 1,457 1,418 2,944 2,483
Less: sublease income (2,593) (2,705) (5,273) (4,811)
Total operating lease cost $ 4,189 $ 3,614 $ 8,154 $ 7,596
[1] Includes short-term leases expensed on a straight-line basis.
v3.23.2
Leases - Schedule Of Cash Flow Supplemental Disclosures (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Leases [Abstract]        
Cash payments included in the measurement of operating lease liabilities $ 5,000 $ 4,865 $ 10,208 $ 9,900
Operating ROU assets obtained in exchange for lease obligations $ 4,013 $ 1,195 $ 4,013 $ 1,779
v3.23.2
Leases - Schedule of Weighted-average Remaining Term of Operating Leases and Weighted-average of Discount Rate of Present Value of Operating Lease Liabilities (Details)
Jun. 30, 2023
Dec. 31, 2022
Leases [Abstract]    
Weighted-average remaining lease term ( in years) 3 years 7 months 24 days 3 years 8 months 8 days
Weighted-average discount rate 5.20% 5.10%
v3.23.2
Leases - Schedule of Future Minimum Lease Payments and Related Lease Liabilities (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Operating Lease Payments    
2023 (remaining 6 months) [1] $ 8,782  
2024 [1] 18,079  
2025 [1] 16,442  
2026 [1] 8,582  
2027 [1] 3,818  
Thereafter [1] 3,405  
Total lease payments [1] 59,108  
Less: imputed interest [1] (5,695)  
Present value of lease liabilities: [1] 53,413  
Less: current obligations under leases (accrued liabilities) (15,592) [1] $ (17,195)
Operating lease liabilities, noncurrent 37,821 [1] $ 42,666
Sublease Income    
2023 (remaining 6 months) (3,867)  
2024 (7,849)  
2025 (7,671)  
2026 (1,055)  
Total lease payments (20,442)  
Net Operating Lease Payments    
2023 (remaining 6 months) 4,915  
2024 10,230  
2025 8,771  
2026 7,527  
2027 3,818  
Thereafter 3,405  
Total lease payments $ 38,666  
[1] Future minimum lease payments exclude short-term leases as well as payments to landlords for variable common area maintenance, insurance and real estate taxes.
v3.23.2
Commitments and Contingencies - Additional Information (Details)
 6 Months Ended
Jun. 30, 2023
USD ($)
Commitments And Contingencies Disclosure [Line Items]  
Purchase commitments $ 84,100,000
Other Contractual Arrangements  
Commitments And Contingencies Disclosure [Line Items]  
Contractual obligation expected payment period 1 year
Other Contractual Arrangements | Maximum  
Commitments And Contingencies Disclosure [Line Items]  
Contractual obligation $ 800,000
Inventory  
Commitments And Contingencies Disclosure [Line Items]  
Purchase commitments $ 2,700
v3.23.2
Related Party Transactions - Additional Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Related Party Transaction [Line Items]        
Depreciation expense $ 4,202 $ 5,144 $ 8,295 $ 10,707
Selling, general and administrative $ 56,497 50,341 $ 114,273 100,193
Parent        
Related Party Transaction [Line Items]        
Amount of allocations from parent   15,800   30,700
Depreciation expense   1,100   2,200
Selling, general and administrative   $ 14,700   $ 28,500