TiVo Reports Q3 Loss, $164.71M in Revenue
SAN JOSE -- TiVo Corporation today reported financial results for the third quarter ended September 30, 2018.
“We delivered solid third-quarter results, achieving our internal plan targets while continuing to optimize our costs and are focused on driving sequential revenue growth in the fourth quarter. We also continue to expand our product portfolio and recently launched TiVo BOLT OTA,” said Raghu Rau, Interim President, and Chief Executive Officer. “While the strategic review is still in process, it has informed us of our growth strategy. Combined with the TiVo Experience 4, we will bring together a broad portfolio of video content from a variety of sources into a single discovery experience with multiple advanced advertising possibilities. I am excited about the prospects of the business and the strategic initiatives we are undertaking, including moving to more transactional models, to drive long-term profitable growth.”
The Company continues to explore all possible strategic alternatives to maximize value for our shareholders. As mentioned on our prior call, we believe there is strategic value in each of our product and IP businesses. We remain in various active discussions, but due to the unique nature of our business, the process is taking longer than we hoped. It is our intention to complete the strategic review process by no later than our fourth quarter and year-end 2018 earnings call. Significantly, the strategic review process is informing our view of TiVo’s growth strategy which we will discuss on our earnings call.
TiVo’s management and board are still conducting an in-depth review of its businesses, cost structure and strategic options to maximize shareholder value. Due to the broad range of potential outcomes, the Company is not currently providing financial estimates. That said, TiVo is focusing on driving sequential growth quarter-on-quarter. However, we also expect sequential quarter growth in IP litigation spend given the fourth quarter timing of the Comcast ITC trial.
As discussed in detail during previous earnings calls, the Company adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, which superseded the previous revenue recognition requirements on January 1, 2018 using the modified retrospective transition approach. The Company’s results for 2017 are reported under the prior standard and results for 2018 are reported under the new standard. While there is no change in either the nature of our business operations or our cash flows, revenue recognition in 2018 is considerably different than in 2017. For instance, in the third quarter of 2018, TiVo recognized approximately $6.2 million less in revenue than it would have under the previous requirements.
TiVo Inc. (Nasdaq: TIVO)