TiVo: A Step In The Right Direction, But...
TiVo Inc.: 2.0% Busted Convertible Notes Attractive At 86 But Not The Stock At $8.57
Swaraj Chowdhury, CFA
Swaraj Chowdhury, CFA
Tue, May 31, 4:13 PM
Mon, May 30, 5:35 PM
Wed, Mar. 2, 10:50 AM
- TiVo (TIVO -2.9%) is lower after beating FQ4 EPS estimates ($0.06 vs. a consensus of -$0.06), missing revenue estimates, and guiding for FY17 (ends Jan. '17) service, software, and technology revenue of $400M-$420M, below a $431.8M consensus.
- Adjusted EBITDA is expected to rise to $145M-$155M in FY17 from FY16's $116.5M and FY15's $110.7M. The revenue guidance assumes double-digit service revenue growth from "operator-focused" businesses (MSO revenue, Digitalsmiths, Cubiware), a single-digit drop in retail service revenue, and lower IP licensing and professional services revenue. It doesn't assume any contribution from new distribution and products.
- TiVo added 318K MSO subs in FQ4, down slightly from 324K a year ago and raising the total base to 5.83M. TiVo-owned subs grew by 19K to 971K. TiVo-owned monthly ARPU fell by $0.73 Y/Y to $6.95.
- TiVo-owned service revenue fell 7% Y/Y to $20.1M, MSO service revenue rose 45% to $19.8M, and other service/software revenue rose 45% to $7.7M. Excluding restructuring costs, GAAP operating expenses rose 12% Y/Y to $60.9M. TiVo ended FQ4 with $646M in cash and $319M in convertible debt.
- B. Riley's Eric Wold (Buy, $15 target) is pleased with the FY17 adjusted EBITDA guidance, as well as the fact "management laid out a path to generate EBITDA by FY19 that will offset the end of the settlement payments even before additional IP monetization opportunities."
- FBR's Barton Crockett (Market Perform, $9.50 target): "The company, under Interim CEO Naveen Chopra, is cutting costs while paring back its focus on the current hardware-focused consumer service and aspiring to launch new consumer services not yet detailed ... It would be nice if the board, as a sign of confidence in a capable, long-tenured TiVo executive, made Chopra’s position permanent. Furthermore, it is also somewhat confusing to contemplate TiVo’s position in a world in which the FCC is seeking to free consumers to choose whatever set tops they want. While TiVo could sell those set tops to consumers, today it seems much more aligned with the cable providers who rent them."
- TiVo's FQ4 results, earnings release
Tue, Mar. 1, 4:05 PM
Mon, Feb. 29, 5:35 PM
Nov. 24, 2015, 4:50 PM
- TiVo (NASDAQ:TIVO) is off slightly, -0.6% after hours, following Q3 results where it missed EPS but boosted service and software revenues and technology revenues to record highs and grew its pay-TV partner business substantially.
- Adjusted EBITDA of $29.3M beat an expected $29.1M.
- Revenue by segment: Service and software, $44.7M (up 21.7%); Technology, $58.1M (up 13.2%); Hardware, $29.5M (down 2.8%).
- The company added a net 418,000 subscribers through its MSO partners after its strongest growth in that area in 10 years (about 60% Y/Y). The company ended with 5.51M subs in partnership with MSOs. It added net 11,000 TiVo-owned subscribers, for a total of 952,000.
- For Q4, it's guiding to service and software/technology revenues of $101M-$104M, and adjusted EBITDA of $25M-$28M (light of an expected $30.2M).
- Conference call to come at 5 p.m. ET.
Nov. 24, 2015, 4:19 PM
- TiVo (NASDAQ:TIVO): Q3 EPS of $0.06 misses by $0.02.
- Revenue of $102.8M (+16.7% Y/Y) beats by $1.62M.
Nov. 23, 2015, 5:35 PM
Sep. 9, 2015, 6:22 PM
- TIVO fell fractionally in regular trading today after beating FQ2 revenue estimates, posting in-line EPS, and guiding for FQ3 service/software and technology revenue of $100M-$103M, above a $98.2M consensus. Shares are just $0.56 above a 52-week low of $8.50.
- The DVR hardware/software provider used its FQ2 report to state it has added Samsung to its list of litigation targets: In a suit filed with an Eastern Texas federal court, TiVo alleges Samsung's hardware infringes 4 patents, including the company's '389 Time Warp patent (expires in 2018) and '195 Trick Play patent.
- 284K MSO subscribers were added in FQ2, nearly flat Q/Q and bringing the base to 5.1M. TiVo-owned subs fell by 3K to 941K.
- Software/service revenue rose 17% Y/Y to $43.1M - TiVo-owned revenue totaled $20.9M, MSO revenue $15.3M, and media/other revenue $6.9M. Technology (IP licensing) revenue rose 13% to $56M, and hardware revenue fell slightly to $20.4M. Digitalsmiths revenue rose 65%.
- GAAP operating expenses rose 6% Y/Y to $55.2M. TiVo ended FQ2 with $713M in cash/investments, and $356M in convertible debt.
- FQ2 results, PR
Sep. 8, 2015, 4:11 PM
- TiVo (NASDAQ:TIVO): Q2 EPS of $0.09 in-line.
- Revenue of $99.1M beats by $3.13M.
Sep. 7, 2015, 5:35 PM
May 26, 2015, 5:00 PM
- Along with its FQ1 results, TIVO has announced it's acquiring Cubiware, a Polish developer of low-cost set-top and portal server software for emerging markets pay-TV providers. Terms are undisclosed; presumably, offshore cash is being used.
- TiVo states Cubiware's offerings will expand its presence in 25 countries, thereby helping it cross-sell its existing offerings overseas. Altogether, Cubiware claims ~40M Latin American and EMEA customers possessing 12M pay-TV subs between them. The deal follows last year's purchase of content discovery service provider Digitalsmiths.
- Helping shares rally: TiVo has guided for FQ2 service/tech revenue of $94M-$97M, above a $93.6M consensus. Net income guidance is at $7M-$10M.
- Subscriber data: FQ1 net subscriber adds totaled 285K, down from 332K a year ago and bringing the base to 5.76M. MSO subs rose by 285K to 4.81M; TiVo-owned subs were roughly flat at 944K. TiVo-owned ARPU fell to $7.43 from FQ4's $7.68 and the year-ago period's $7.81.
- Business performance: Service revenue +11% Y/Y to $39.8M; tech revenue (licensing) +5% to $52.6M; hardware revenue +6% to $22.3M. MSO service revenue rose 41% Y/Y, and Digitalsmiths revenue roughly doubled.
- Financials: GAAP operating expenses rose by $1M Y/Y to $52.5M. $27.9M was spent on buybacks. TiVo ended FQ1 with $686M in cash, and $354M in convertible debt.
- TiVo has risen to $10.90 AH. FQ1 results, PR
May 26, 2015, 4:11 PM
- TiVo (NASDAQ:TIVO): FQ1 EPS of $0.08 beats by $0.01.
- Revenue of $92.4M (+7.4% Y/Y) beats by $1.05M.
- Shares +6%.
May 25, 2015, 5:35 PM
Mar. 4, 2015, 11:42 AM
- TiVo (NASDAQ:TIVO) is up 2.7% after beating earnings expectations and adding subscribers in Q4.
- Reactions have been positive overall: TAG points to trends among broadcasters for over-the-top services that could make TiVo the default aggregator for a growing number of viewers cutting the cord, and experiencing growth from overseas operators using it as a defense against Netflix -- or to integrate Netflix itself using TiVo software.
- TiVo's Roamio set-top box made a key inroad last month as Frontier Communications agreed to market the OTA/OTT device (which doesn't do pay TV), clearly targeted to its Internet customers.
- Household penetration from operator partners should help TiVo especially with new international licenses driven by tech improvements, Riley says. It's targeted TiVo for a price of $20; shares currently trade at $11.55.
- Brean notes that distribution deals and a revitalized O&O business show that TiVo can maintain its strong subscriber growth into the new fiscal year, and that aggressive buybacks should boost the stock (but slowly).
TiVo, Inc. engages in the development and sale of software for video management and consumer electronic applications. Its operations are generated from television service providers, advertising, research, and licensing services. The company was founded by James Michael Barton and Michael Ramsay... More
Industry: CATV Systems
Country: United States
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