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Dolby Laboratories Reports Third Quarter 2024 Financial Results

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SAN FRANCISCO, Aug. 7, 2024 /PRNewswire/ — Dolby Laboratories, Inc. (NYSE:DLB) today announced the company’s financial results for the third quarter of fiscal 2024.

“Our third quarter results were in line with expectations,” said Kevin Yeaman, President and CEO, Dolby Laboratories. “This quarter we continued to build momentum for the content available in Dolby Vision and Dolby Atmos, especially in sports, with viewers around the world enjoying the T20 Cricket World Cup, UEFA EURO 2024, Wimbledon, the NHL and NBA post seasons and right now, the Olympics in Dolby.”

Third Quarter Fiscal 2024 Financial Highlights

Total revenue was $288.8 million, compared to $298.4 million for the third quarter of fiscal 2023.GAAP net income was $38.4 million, or $0.40 per diluted share, compared to GAAP net income of $16.4 million, or $0.17 per diluted share, for the third quarter of fiscal 2023. On a non-GAAP basis, third quarter net income was $68.8 million, or $0.71 per diluted share, compared to $54.1 million, or $0.55 per diluted share, for the third quarter of fiscal 2023.Dolby repurchased approximately 423,000 shares of its common stock and ended the quarter with approximately $72 million of stock repurchase authorization available going forward.

A complete listing of Dolby’s non-GAAP measures are described and reconciled to the corresponding GAAP measures at the end of this release.

Recent Business Highlights

Cadillac announced the 2025 OPTIQ EV with Dolby Atmos.Electric automotive manufacturer Rivian launched the second generation of its flagship vehicles, the R1S SUV and R1T pickup, that feature support for Dolby Atmos.Great Wall Motors launched its new smart cabin system, Coffee OS 3, and a new automobile model with Dolby Atmos.Transsion added a Dolby enabled low cost phone for consumers in Malaysia.Sharp Singapore launched the R8s Pro smartphone series with Dolby Vision and Dolby Atmos.Realme launched the GT6, the first smartphone to support Dolby Vision video capture in telephoto video.The T20 Cricket World Cup, UEFA EURO 2024, Wimbledon, and the NHL and NBA post seasons were all available in Dolby Atmos and Dolby Vision.Comcast announced that the 2024 Olympics coverage will be available in Dolby Vision and Dolby Atmos.Sonos launched headphones that support Dolby Head Tracking with Dolby Atmos.VIZIO announced integration of Dolby Atmos across its entire 2024 soundbar lineup.Lenovo launched several new flagship products that support Dolby Vision and Dolby Atmos – including the Yoga Air, moto razr, and moto S50 Neo.Melco Resorts & Entertainment opened Studio City Cinema, which is the first Dolby Cinema in the Hong Kong Macau Region.

Dividend

Today, Dolby announced a cash dividend of $0.30 per share of Class A and Class B common stock, payable on August 27, 2024, to stockholders of record as of the close of business on August 19, 2024.

Stock Repurchase Program

Today, Dolby also announced that its Board of Directors has approved increasing the size of its stock repurchase program by $350 million, bringing the amount available for future repurchases of its Class A Common Stock to approximately $422 million. Stock repurchases under this program may be made through open market transactions, negotiated purchases, or otherwise, at times and in amounts that the company considers appropriate.

Financial Outlook

Dolby’s financial outlook relies, in part, on estimates of royalty-based revenue that take into consideration various factors that are subject to uncertainty, including consumer demand for electronic products. In addition, actual results could differ materially from the estimates Dolby is providing below due in part to uncertainty resulting from the macroeconomic effect of certain conditions, including supply chain constraints, international conflicts, geopolitical instability, and fluctuations in inflation and interest rates. The uncertainty resulting from these factors has greatly reduced its visibility into Dolby’s future outlook. To the extent possible, the estimates Dolby is providing for future periods reflect certain assumptions about the potential impact of certain of these items, based upon a consideration of currently available external and internal data and information. These assumptions are subject to risks and uncertainties. For more information, see “Forward-Looking Statements” in this press release for a description of certain risks that Dolby faces, and the section captioned “Risk Factors” in its Quarterly Report on Form 10-Q for the third quarter of fiscal 2024, to be filed on or around the date hereof.

Dolby is providing the following estimates for its fourth quarter of fiscal 2024:

Total revenue is estimated to range from $300 million to $320 million.Licensing revenue is estimated to range from $275 million to $295 million.Gross margins are anticipated to be approximately 88%.Operating expenses are anticipated to range from $225 million to $235 million on a GAAP basis and from $190 million to $200 million on a non-GAAP basis.Effective tax rate is anticipated to be around 29% on a GAAP basis and around 23% on a non-GAAP basis.Diluted earnings per share is anticipated to range from $0.31 to $0.46 on a GAAP basis and from $0.61 to $0.76 on a non-GAAP basis.

Dolby is providing the following estimates for the full year of fiscal 2024:

Total revenue is expected to range from $1.27 billion to $1.29 billion.Gross margins are anticipated to be roughly 89%.Operating expenses are anticipated to range from $875 million to $885 million on a GAAP basis and from $735 million to $745 million on a non-GAAP basis.Dolby expects operating margins on a GAAP basis to be roughly 20% and on a non-GAAP basis to be roughly 31%.Diluted earnings per share is anticipated to range from $2.40 to $2.55 on a GAAP basis and from $3.60 to $3.75 on a non-GAAP basis.

Conference Call Information

Members of Dolby management will lead a conference call open to all interested parties to discuss third quarter fiscal 2024 financial results for Dolby Laboratories at 2:00 p.m. PT (5:00 p.m. ET) on Wednesday, August 7, 2024. Access to the teleconference will be available at http://investor.dolby.com or by dialing 1-888-210-2212 (+1-646-960-0390 for international callers) and entering confirmation code 5587811.

A replay of the call will be available from 5:00 p.m. PT (8:00 p.m. ET) on Wednesday, August 7, 2024, until 8:59 p.m. PT (11:59 p.m. ET) on Wednesday, August 14, 2024 by dialing 1-800-770-2030 (+1-647-362-9199 for international callers) and entering the confirmation code 5587811. An archived version of the teleconference will also be available on the Dolby website, http://investor.dolby.com

Non-GAAP Financial Information

To supplement Dolby’s financial statements presented on a GAAP basis, Dolby management uses, and Dolby provides to investors, certain non-GAAP financial measures as an additional tool to evaluate Dolby’s operating results in a manner that focuses on what Dolby’s management believes to be its ongoing business operations and performance. We believe these non-GAAP financial measures are also helpful to investors in enabling comparability of operating performance between periods and among peer companies. Additionally, Dolby’s management regularly uses our supplemental non-GAAP financial measures to make operating decisions, for planning and forecasting purposes and determining bonus payouts. Specifically, Dolby excludes the following as adjustments from one or more of its non-GAAP financial measures:

Stock-based compensation expense: Stock-based compensation, unlike cash-based compensation, utilizes subjective assumptions in the methodologies used to value the various stock-based award types that Dolby grants. These assumptions may differ from those used by other companies. To facilitate more meaningful comparisons between its underlying operating results and those of other companies, Dolby excludes stock-based compensation expense.

Amortization of acquisition-related intangibles: Dolby amortizes intangible assets acquired in connection with business combinations. These intangible assets consist of patents and technology, customer relationships, and other intangibles. Dolby records amortization charges relating to these intangible assets in its GAAP financial statements, and Dolby views these charges as items arising from pre-acquisition activities that are determined by the timing and valuation of its acquisitions. As these amortization charges do not directly correlate to its operations during any particular period, Dolby excludes these charges to facilitate an evaluation of its current operating performance and comparisons to its past operating results. In addition, while amortization expense of acquisition-related intangible assets is excluded from Non-GAAP Net Income, the revenue generated from those assets is not excluded.

Restructuring charges or credits: Restructuring charges are costs associated with restructuring plans and primarily relate to costs associated with exit or disposal activities, employee severance benefits, and asset impairments. Dolby excludes restructuring costs, including any adjustments to charges recorded in prior periods (which may be credits), as Dolby believes that these costs are not representative of its normal operating activities and therefore, excluding these amounts enables a more effective comparison of its past operating performance and to that of other companies.

Income tax adjustments: The income tax effects of the aforementioned non-GAAP adjustments do not directly correlate to its operating performance so Dolby believes that excluding such income tax effects provides a more meaningful view of its underlying operating results to management and investors.

Using the aforementioned adjustments, Dolby provides various non-GAAP financial measures including, but not limited to: non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, and non-GAAP effective tax rate. Dolby’s management believes it is useful for itself and investors to review both GAAP and non-GAAP measures to assess the performance of Dolby’s business, including as a means to evaluate period-to-period comparisons. Dolby’s management does not itself, nor does it suggest that investors should, consider non-GAAP financial measures in isolation from, superior to, or as a substitute for, financial information prepared in accordance with GAAP. Whenever Dolby uses non-GAAP financial measures, it provides a reconciliation of the non-GAAP financial measures to the most closely applicable GAAP financial measures. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures as detailed above and below. Investors are also encouraged to review Dolby’s GAAP financial statements as reported in its US Securities and Exchange Commission (SEC) filings. A reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release and on the Dolby investor relations website, http://investor.dolby.com

Forward-Looking Statements

Certain statements in this press release and in our earnings calls, including, but not limited to, expected financial results for the fourth quarter of fiscal 2024 and full year fiscal 2024, Dolby’s ability to expand existing business, navigate challenging periods, pursue its long-term growth opportunities, and advance its other long-term objectives are “forward-looking statements” that inherently involve substantial risks and uncertainties. These forward-looking statements are based on management’s current expectations, and as a result of certain risks and uncertainties, actual results may differ materially from those provided. The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: the potential impacts of economic conditions on Dolby’s business operations, financial results, and financial position (including the impact to Dolby partners and disruption of the supply chain and delays in shipments of consumer products; the level at which Dolby technologies are incorporated into products and the consumer demand for such products; delays in the development and release of new products or services that contain Dolby technologies; delays in royalty reporting or delinquent payment by partners or licensees; lengthening sales cycles; the impact to the overall cinema market including adverse impact to Dolby’s revenue recognized on box-office sales and demand for cinema products and services; and macroeconomic conditions that affect discretionary spending and access to products that contain Dolby technologies); risks associated with geopolitical issues and international conflicts; risks associated with trends in the markets in which Dolby operates, including the broadcast, mobile, consumer electronics, PC, and other markets; the loss of, or reduction in sales by, a key customer, partner, or licensee; pricing pressures; risks relating to changing trends in the way that content is distributed and consumed; risks relating to conducting business internationally, including trade restrictions and changes in diplomatic or trade relationships; risks relating to maintaining patent coverage; the timing of Dolby’s receipt of royalty reports and payments from its licensees, including recoveries; changes in tax regulations; timing of revenue recognition under licensing agreements and other contractual arrangements; Dolby’s ability to develop, maintain, and strengthen relationships with industry participants; Dolby’s ability to develop and deliver innovative products and technologies in response to new and growing markets; competitive risks; risks associated with conducting business in China and other countries that have historically limited recognition and enforcement of intellectual property and contractual rights; risks associated with the health of the motion picture and cinema industries generally, including the continued impacts of the recent strikes by the WGA and SAG-AFTRA; Dolby’s ability to increase its revenue streams and to expand its business generally, and to continue to expand its business beyond its current technology offerings; risks associated with acquiring and successfully integrating businesses or technologies; and other risks detailed in Dolby’s SEC filings and reports, including the risks identified under the section captioned “Risk Factors” in its Quarterly Report on Form 10-Q filed on or around the date hereof. Dolby may not actually achieve the plans, intentions, or expectations disclosed in its forward-looking statements. Forward-looking statements are based upon information available to us as of the date of such statements, and while Dolby believes such information forms a reasonable basis for such statements, such information may be limited or incomplete. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. Except as required by law, Dolby disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.

About Dolby Laboratories

Dolby Laboratories (NYSE: DLB) is based in San Francisco, California with offices around the globe. From movies and TV shows, to apps, music, sports and gaming, Dolby transforms the science of sight and sound into spectacular experiences for billions of people worldwide. Dolby partners with artists, storytellers, developers, and businesses to revolutionize entertainment and communications with Dolby Atmos, Dolby Vision, Dolby Cinema, and Dolby.io.

Dolby, Dolby Atmos, Dolby Vision, Dolby Cinema, Dolby.io, and the double-D symbol are among the registered and unregistered trademarks of Dolby Laboratories in the United States and/or other countries. Other trademarks remain the property of their respective owners.

DOLBY LABORATORIES, INC.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts; unaudited)

Fiscal Quarter Ended

Fiscal Year-To-Date Ended

June 28,
2024

June 30,
2023

June 28,
2024

June 30,
2023

Revenue:

  Licensing

$                267,082

$                273,108

$                899,089

$                932,727

  Products and services

21,736

25,262

69,826

76,455

Total revenue

288,818

298,370

968,915

1,009,182

Cost of revenue:

  Cost of licensing

17,386

15,610

48,440

50,334

  Cost of products and services

18,277

25,905

58,060

66,680

Total cost of revenue

35,663

41,515

106,500

117,014

Gross profit

253,155

256,855

862,415

892,168

Operating expenses:

  Research and development

65,501

68,696

195,027

201,097

  Sales and marketing

77,518

85,594

246,559

263,494

  General and administrative

69,275

69,954

201,183

191,865

  Restructuring charges

4,078

16,676

7,674

16,465

Total operating expenses

216,372

240,920

650,443

672,921

Operating income

36,783

15,935

211,972

219,247

Other income/(expense):

  Interest income/(expense), net

9,439

7,202

27,223

18,806

  Other income, net

3,942

620

13,550

2,967

Total other income

13,381

7,822

40,773

21,773

Income before income taxes

50,164

23,757

252,745

241,020

Provision for income taxes

(10,509)

(7,352)

(47,295)

(49,284)

Net income including noncontrolling interest

39,655

16,405

205,450

191,736

Less: net income attributable to noncontrolling interest

(1,211)

(6)

(2,195)

(266)

Net income attributable to Dolby Laboratories, Inc.

$                  38,444

$                  16,399

$                203,255

$                191,470

Net income per share:

Basic

$                      0.40

$                      0.17

$                      2.13

$                      2.00

Diluted

$                      0.40

$                      0.17

$                      2.09

$                      1.96

Weighted-average shares outstanding:

Basic

95,686

95,658

95,593

95,794

Diluted

96,959

97,459

97,412

97,588

 

DOLBY LABORATORIES, INC.

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands; unaudited)

June 28,
2024

September 29,
2023

ASSETS

Current assets:

Cash and cash equivalents

$                741,636

$                745,364

Restricted cash

36,988

72,602

Short-term investments

127,321

139,148

Accounts receivable, net

285,843

262,245

Contract assets, net

190,803

182,130

Inventories, net

34,716

35,623

Prepaid expenses and other current assets

51,348

50,692

Total current assets

1,468,655

1,487,804

Long-term investments

117,901

97,812

Property, plant, and equipment, net

477,686

481,581

Operating lease right-of-use assets

39,857

40,199

Goodwill and intangible assets, net

553,096

575,836

Deferred taxes

219,822

201,860

Other non-current assets

96,618

94,674

Total assets

$             2,973,635

$             2,979,766

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$                  16,413

$                  20,925

Accrued liabilities

280,611

351,399

Income taxes payable

12,294

4,769

Contract liabilities

32,650

31,505

Operating lease liabilities

12,568

13,628

Total current liabilities

354,536

422,226

Non-current contract liabilities

35,647

39,997

Non-current operating lease liabilities

35,619

37,020

Other non-current liabilities

100,401

108,339

Total liabilities

526,203

607,582

Stockholders’ equity:

Class A common stock

53

53

Class B common stock

41

41

Retained earnings

2,462,928

2,391,990

Accumulated other comprehensive loss

(30,172)

(36,984)

Total stockholders’ equity – Dolby Laboratories, Inc.

2,432,850

2,355,100

Noncontrolling interest

14,582

17,084

Total stockholders’ equity

2,447,432

2,372,184

Total liabilities and stockholders’ equity

$             2,973,635

$             2,979,766

 

DOLBY LABORATORIES, INC.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands; unaudited)

Fiscal Year-To-Date Ended

June 28,
2024

June 30,
2023

Operating activities:

Net income including noncontrolling interest

$                205,450

$                191,736

Adjustments to reconcile net income to net cash provided by operating activities:

  Depreciation and amortization

54,199

61,428

  Stock-based compensation

90,146

90,291

  Amortization of operating lease right-of-use assets

8,745

9,829

  Amortization of premium on investments

(2,586)

(179)

  Benefit from (provision for) credit losses

(2,382)

(348)

  Deferred income taxes

(18,009)

(21,653)

  Other non-cash items affecting net income

(6,181)

(1,751)

  Changes in operating assets and liabilities:

  Accounts receivable, net

(21,319)

43,546

  Contract assets, net

(8,642)

(10,105)

  Inventories

(4,615)

(2,425)

  Operating lease right-of-use assets

(7,681)

(3,799)

  Prepaid expenses and other assets

7,527

775

  Accounts payable and accrued liabilities

(80,837)

(83,737)

  Income taxes, net

15,265

14,975

  Contract liabilities

(3,189)

(1,686)

  Operating lease liabilities

(2,577)

(7,452)

  Other non-current liabilities

(12,232)

2,621

Net cash provided by operating activities

211,082

282,066

Investing activities:

Purchases of marketable securities

(147,646)

(123,075)

Proceeds from sales of marketable securities

4,451

54,020

Proceeds from maturities of marketable securities

140,839

139,423

Purchases of property, plant, and equipment

(22,628)

(22,154)

Business combinations, net of cash and restricted cash acquired

25,703

Net cash provided by (used in) investing activities

(24,984)

73,917

Financing activities:

Proceeds from issuance of common stock

39,487

37,231

Repurchase of common stock

(139,999)

(124,276)

Payment of cash dividend

(85,971)

(77,584)

Distribution to noncontrolling interest

(4,507)

(266)

Shares repurchased for tax withholdings on vesting of restricted stock

(37,428)

(28,619)

Equity issued in connection with business combination

722

Payment of deferred consideration for prior business combinations

(500)

Net cash used in financing activities

(227,696)

(194,014)

Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash

2,256

8,819

Net increase/(decrease) in cash, cash equivalents, and restricted cash

(39,342)

170,788

Cash, cash equivalents, and restricted cash at beginning of period

817,966

628,371

Cash, cash equivalents, and restricted cash at end of period

$                778,624

$                799,159

 

Licensing Revenue by Market

(unaudited)

The following table presents the composition of our licensing revenue for all periods presented (in thousands, except percentage amounts):

Fiscal Quarter Ended

Fiscal Year-To-Date Ended

Market

June 28, 2024

June 30, 2023

June 28, 2024

June 30, 2023

Broadcast

$     95,430

36 %

$    102,966

38 %

$    313,326

35 %

$      349,271

37 %

Mobile

63,096

24 %

50,363

18 %

187,073

21 %

207,775

22 %

CE

28,352

11 %

34,417

13 %

123,793

14 %

128,515

14 %

PC

27,606

10 %

29,489

11 %

107,223

12 %

97,122

10 %

Other

52,598

19 %

55,873

20 %

167,674

18 %

150,044

17 %

Total licensing revenue

$    267,082

100 %

$    273,108

100 %

$    899,089

100 %

$      932,727

100 %

 

GAAP to Non-GAAP Reconciliations

(unaudited)

The following tables present Dolby’s GAAP financial measures reconciled to the non-GAAP financial measures included in this release for the third quarter and year-to-date periods ended June 28, 2024 and June 30, 2023:

Net income:

Fiscal Quarter Ended

Fiscal Year-To-Date Ended

(in thousands)

June 28,
2024

June 30,
2023

June 28,
2024

June 30,
2023

GAAP net income attributable to Dolby Laboratories, Inc.

$               38,444

$               16,399

$             203,255

$          191,470

Stock-based compensation (1)

29,337

29,224

90,146

90,291

Amortization of acquisition-related intangibles (2)

3,101

3,031

9,256

6,750

Restructuring charges

4,078

16,676

7,674

16,465

Income tax adjustments

(6,210)

(11,255)

(19,751)

(20,910)

Non-GAAP net income attributable to Dolby Laboratories, Inc.

$               68,750

$               54,075

$             290,580

$          284,066

(1) Stock-based compensation included in above line items:

  Cost of products and services

$                     373

$                     375

$                  1,139

$              1,309

  Research and development

9,456

9,681

28,511

29,829

  Sales and marketing

9,726

9,756

30,134

30,759

  General and administrative

9,782

9,412

30,362

28,394

(2) Amortization of acquisition-related intangibles included in above line items:

  Cost of licensing

$                       54

$                       62

$                     101

$                 185

  Cost of products and services

524

866

1,582

2,599

  Research and development

254

  Sales and marketing

651

806

1,957

2,415

  General and administrative

1,872

1,297

5,616

1,297

Diluted earnings per share:

Fiscal Quarter Ended

Fiscal Year-To-Date Ended

June 28,
2024

June 30,
2023

June 28,
2024

June 30,
2023

GAAP diluted earnings per share

$                    0.40

$                    0.17

$                    2.09

$                1.96

Stock-based compensation

0.30

0.30

0.93

0.93

Amortization of acquisition-related intangibles

0.03

0.03

0.09

0.06

Restructuring charges

0.04

0.17

0.07

0.17

Income tax adjustments

(0.06)

(0.12)

(0.20)

(0.21)

Non-GAAP diluted earnings per share

$                    0.71

$                    0.55

$                    2.98

$                2.91

Weighted-average shares outstanding – diluted (in thousands)

96,959

97,459

97,412

97,588

The following tables present a reconciliation between GAAP and non-GAAP versions of the estimated financial measures for the fourth quarter of fiscal 2024 and full year fiscal 2024 included in this release:

Operating expenses (in millions):

Q4 2024

Fiscal 2024

GAAP operating expenses (low – high end of range)

$225 – $235

$875 – $885

Stock-based compensation

(31)

(120)

Amortization of acquisition-related intangibles

(4)

(12)

Restructuring charges

(8)

Non-GAAP operating expenses (low – high end of range)

$190 – $200

$735 – $745

Operating margin:

Fiscal 2024

GAAP operating margin

20% +/-

Stock-based compensation

9 %

Amortization of acquisition-related intangibles

1 %

Restructuring charges

1 %

Non-GAAP operating margin

31% +/-

Effective tax rate:

Q4 2024

GAAP effective tax rate

29 %

Stock-based compensation (low – high end of range)

(5%) – 1%

Amortization of acquisition-related intangibles (low – high end of range)

(2%) – 0%

Non-GAAP effective tax rate

23 %

Diluted earnings per share:

Q4 2024

Fiscal 2024

Low

High

Low

High

GAAP diluted earnings per share

$                    0.31

$                    0.46

$                    2.40

$                2.55

Stock-based compensation

0.31

0.31

1.23

1.23

Amortization of acquisition-related intangibles

0.03

0.03

0.13

0.13

Restructuring charges

0.08

0.08

Income tax adjustments

(0.04)

(0.04)

(0.24)

(0.24)

Non-GAAP diluted earnings per share

$                    0.61

$                    0.76

$                    3.60

$                3.75

Weighted-average shares outstanding – diluted (in thousands)

97,000

97,000

97,200

97,200

 

Investor Contact:
Peter Goldmacher
415-254-7415
peter.goldmacher@dolby.com 

Media Contact:
media@dolby.com 

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SOURCE Dolby Laboratories, Inc.

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Reward completes acquisition of Hospitality Data Insights (HDI), a UK market-leading data insights company and longtime partnerThe acquisition will strengthen Reward’s Commerce Media proposition, enhancing consumer insights capabilities that unlock growth opportunities for global retail partnersThis acquisition follows a period of strong growth for Reward, further bolstered by recent strategic investment from Experian PLC, A FTSE 25 company, solidifying Reward’s position as a leader in Customer Engagement and Commerce Media

LONDON, Nov. 14, 2024 /PRNewswire/ — Reward, a global leader in Customer Engagement and Commerce Media, today announces the acquisition of Hospitality Data Insights (HDI), a prominent UK-based data insights company and trusted partner. This acquisition is set to further elevate Reward’s Commerce Media capabilities, driving enriched consumer insights for retail and bank partners worldwide.

HDI is known for delivering high-quality, independent data solutions to over 100 global and national brands in the hospitality and convenience sectors, including industry leaders McDonald’s, Pizza Express, and Deliveroo. With a focus on high-spend, high-frequency sectors representing over 20% of household spending, HDI strengthens Reward’s capability to deliver significant consumer value, supporting Reward’s commitment to deliver over £2 billion in rewards by 2025.

By combining HDI’s SKU-level data, product range, pricing insights, and consumer sentiment analysis with Reward’s transactional and behavioural insights, the acquisition enhances Reward’s suite of products for retail marketing, performance optimisation, and operational insights. HDI’s extensive sector expertise and talented team of data analysts add further depth to Reward’s offerings, positioning the company for growth as it establishes itself as the preferred marketing and insights partner. This strategic focus aims to help banks and retailers better understand customers while securing a larger share of marketing budgets.

The all cash acquisition reflects Reward’s period of significant growth. The recent strategic investment from Experian PLC has further enhanced Reward’s consumer insights capabilities, integrating new assets like its Mosaic product. Reward has also expanded its international footprint, with new investment directed at scaling operations in key regions such as Europe, the Middle East and Asia.

Effective immediately, Darroch Bagshaw, Managing Director of HDI, will join Reward’s Leadership Team, reporting to CEO Jamie Samaha. While HDI has been primarily servicing its global brands in the UK, Reward and HDI are well-positioned to scale their enhanced capabilities internationally. The combined efforts will start in the hospitality and convenience sectors and move into other high priority spend categories including convenience and grocery.

Jamie Samaha, CEO of Reward, commented: “In today’s fast-evolving Commerce Media landscape, expanding consumer insights capabilities is more critical than ever. This acquisition of HDI marks a transformative step in our journey to deepen our understanding of consumer behaviour and amplify the value we deliver to our customers, banking partners, and retailers. HDI’s diverse portfolio of leading hospitality brands and innovative insight products opens significant opportunities for us to strengthen our retailer relationships in this key sector, all while driving toward our goal of delivering $2 billion in rewards by 2025.”

Darroch Bagshaw, Managing Director of HDI, added: “HDI’s mission has always been to provide market-leading insights to businesses across the hospitality sector using accurate and actionable data. Reward’s endorsement of our services is testament to our aligned commitment to high quality data analytics that drive investment decisions for the world’s largest retailers. We look forward to combining insights capabilities to provide enriched products and services to retailers and greater value to customers.”

ABOUT REWARD

Reward is a global leader in Customer Engagement and Commerce Media, operating in more than 15 markets across the UK, Europe, the Middle East and Asia. Uniquely positioned at the intersection of banking and retail, Reward’s platform combines technology, data insights and digital marketing to deliver personalised products and services that help brands deepen connections with customers.

As businesses strive to better understand and influence customer behaviour, Reward is poised to lead in the fast-growing commerce media space, offering consumer insights that enhance omnichannel experiences, boost sales and build customer loyalty.

Beyond unifying consumer insight and commerce, Reward is on a mission to make everyday spending more rewarding and every interaction count, delivering billions in rewards to customers.

For more information, please visit www.rewardinsight.com.

ABOUT HDI

Hospitality Data Insights (HDI) is a leading UK insights business, providing independent data insight to global and national brands operating in the UK hospitality sector since 2017, supporting over 100 different clients spanning Pubs & Bars, Restaurants & Casual Dining, QSR, Coffee Shops, Delivery, Convenience, Drinks Suppliers & Manufacturers, Investors and Consulting Firms.

HDI turns vast amounts of high-quality data into meaningful products and services that help operators improve their investment decisions, offer development and customer marketing; and help manufacturers sell and support their brands more effectively

Since late 2022, HDI have extended their capabilities into the UK grocery sector, tracking online pricing for 10 national grocers and monitoring customer spending patterns within over 40,000 individual convenience & grocery stores.

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From Pollution to Restoration: The Art of Living’s Powerful Partnerships to Heal Karnataka

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BENGALURU, India, Nov. 14, 2024 /PRNewswire/ — On November 11, 2024, The Art of Living Social Projects signed a landmark Memorandum of Understanding (MoU) with Bangalore University, the Environmental Management and Policy Research Institute (EMPRI), and the Department of Forest Ecology and Environment, Government of Karnataka. This marks a powerful new chapter in advancing environmental sustainability and climate action through rigorous research, community-driven initiatives, and participatory governance. Rooted in Gurudev Sri Sri Ravi Shankar’s vision, The Art of Living Social Projects’ methodology is holistic, nature-centred and emphasises hands-on community involvement to create tangible and lasting change.

The organisation brings extensive expertise in programme management and Corporate Social Responsibility (CSR) engagement to the partnership, which aims to address some of Karnataka’s most pressing environmental challenges. At the top of the agenda is an ambitious plan to clean and restore the heavily polluted Vrishabhavathi River, which flows through Bangalore University’s campus. 

Reviving the Vrishabhavathi River Through Nature-Based Solutions (NBS)

Traditional approaches to river restoration often fall short when faced with severe pollution, requiring more innovative strategies. This is precisely where the Art of Living Social Projects’ Nature-Based Solutions come into play. Leveraging natural elements like microorganisms, plants, and algae; NBS techniques use bioremediation and phytoremediation to detoxify the water. Microbial communities work to break down pollutants, while specially chosen plants absorb harmful substances. 

In addition to these natural detoxifiers, aeration plays a crucial role by oxygenating the water, which helps revitalise aquatic habitats and promotes the overall health of the ecosystem. These initiatives demonstrate the organisation’s dedication to lasting environmental interventions and will be utilised in the restoration of the Vrishabhavathi River.

Tackling Broader Environmental Challenges in Karnataka

The MoU extends far beyond river restoration to addressing other urgent environmental issues such as deforestation, air and water pollution, waste management, and ecosystem conservation. The alliance plans to drive change through joint research projects, workshops, and seminars, offering hands-on training and creating educational opportunities that empower the next generation of environmental leaders.

Bridging Academic Research and Practical Implementation

The MoU draws on the unique strengths of each partner. Bangalore University brings academic depth, while EMPRI contributes expertise in policy research. The Art of Living Social Projects’ extensive experience with large-scale projects  and community engagement rounds out this powerful team. The synergy facilitates the implementation of evidence-based plans that are not only effective but also engage the community in enduring practices.

Empowering Communities for Lasting Change

The MoU also reflects a commitment to participatory governance, a principle close to The Art of Living’s ethos. Shared Sri Prasana Prabhu, Chairman of The Art of Living Social Projects, “We believe that sustainability must be rooted in the participatory governance framework. This MoU allows us to deepen our engagement and leverage our resources to empower academia and civil society organisations towards sustainable practices.”

A Model for Environmental Protection

A new standard in environmental governance and action will be set by this collaboration. By bridging academic research with practical, community-driven game plans, it presents a model that could inspire similar initiatives in other regions. As this collaborative effort unfolds, The Art of Living Social Projects, Bangalore University, EMPRI, and the Department of Forest, Ecology, and Environment are poised to make significant strides in tackling Karnataka’s environmental challenges, from cleaner rivers to thriving ecosystems.

Through this landmark MoU, The Art of Living Social Projects, under the inspiration of Gurudev Sri Sri Ravi Shankar, reaffirms its commitment to nature-driven solutions, working towards a future of cleaner water, healthier ecosystems, and stronger communities.

About The Art of Living Social Projects 

Inspired by the world-renowned humanitarian and spiritual leader Gurudev Sri Sri Ravi Shankar; The Art of Living is a global non-profit organisation dedicated to peace, well-being, and humanitarian service. Committed to holistic development, The Art of Living champions various initiatives, including water conservation, sustainable agriculture, afforestation, free education, skill development, women empowerment, integrated village development, renewable energy and waste management. Through these multifaceted efforts, The Art of Living strives to create positive social and environmental impact, fostering a more sustainable and harmonious future for all.

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CIOs Struggle to Define AI Value For Their Business as They Continue to Invest in New Projects

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Tech leaders are divided on whether AI investments should boost productivity, revenue, or worker satisfaction

SAN FRANCISCO, Nov. 14, 2024 /PRNewswire/ — New research from revenue intelligence leader Gong reveals widely varying viewpoints among CIOs and other tech leaders over how to evaluate the success of AI projects. Surveying over 500 CIOs and heads of IT across the UK and US, the findings illustrate the challenge many businesses face when it comes to strategically implementing AI and the uncertainty in measuring whether those AI investments are paying off.

While over half of CIOs (53 percent) prioritize productivity gains, an equal proportion focus on revenue growth as their key success metrics, with worker satisfaction trailing closely behind (46 percent). This divergence underscores a broader challenge: confusion about where AI can deliver the most business value and a well-defined approach for evaluation.

Key insights from the study include:

Revenue Growth vs. Time Savings: 61 percent of global CIOs believe increased revenue alone justifies AI costs, while 60 percent say that time savings alone will justify costs. Yet, only 32 percent actively measure both, suggesting that many companies still don’t have systems in place to measure and assess the impact on the variables they say matter most.A Growing Interest in Predictive AI: While generative AI attracts much of the buzz around the technology, it is not the clear leader among CIOs in terms of driving value. Fifty-four percent of tech leaders prioritize generative AI, 51 percent prioritize automation, and 31 percent prioritize predictive AI. To capitalize on this discord and deliver value across a broad spectrum, AI models must be tuned to support workflow automation and predictive analytics.Adoption of Domain-Specific Solutions: While nearly three-quarters of tech leaders rely on off-the-shelf large language models (LLMs) as part of their AI investments, 58 percent are utilizing domain-specific solutions. These AI tools are trained on industry- and function-specific data to deliver more precise and measurable results.Security is a Key Obstacle…: Security remains a top priority for 68 percent of tech leaders, but 28 percent admit this is where their AI projects most often fall short.…As is Data Integration: Data integration challenges also threaten project success, with 36 percent of CIOs likely to pause initiatives if implementation complexities arise. Without the right underlying data, AI outputs risk delivering little value or, worse, biased or inaccurate results.AI’s Long-Term Value Persists: Despite mixed measurement strategies, only a small fraction (under 20 percent) cited a lack of provable ROI as a reason to abandon AI initiatives, indicating that most companies continue to explore its potential and long-term value.Smaller companies are more eager to prove ROI: Smaller US firms (250-500 employees) are more ROI-focused, with 40 percent willing to halt projects lacking clear ROI, compared to just 19 percent of larger companies. This suggests that while smaller US firms see the value in investing in AI, they need to focus on initiatives that deliver measurable and immediate returns and have less budget for experimentation. In contrast, larger companies might have more capacity to invest in long-term projects without immediate ROI.

“Over the last two years, the AI hype and pace of innovation has created incredible excitement and confusion for CIOs and tech leaders about its potential and where to focus,” said Eilon Reshef, co-founder and Chief Product Officer, Gong. “But one thing is clear: leaders are pursuing value and exploring different areas across the business where AI can have a transformative impact.”

To learn more about the survey’s findings, read the blog.

Methodology
The research was conducted by Censuswide with 573 CIOs/Heads of IT (aged 25+) in medium and large companies who have purchased an off-the-shelf AI application in the last 2 years across the UK and US (250 and 323 respondents respectively) between October 9 -October 16, 2024. Censuswide abide by and employ members of the Market Research Society which is based on the ESOMAR principles. Censuswide are also members of the British Polling Council.

About Gong
Gong transforms revenue organizations by driving business efficiency, revenue growth, and improved decision-making. The Revenue Intelligence Platform uses proprietary artificial intelligence technology to enable teams to capture, understand, and act on all customer interactions in a single, integrated platform. Thousands of companies around the world rely on Gong to support their go-to-market strategies and grow revenue efficiently. For more information, visit www.gong.io.

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