Dolby Laboratories reported its Q2 fiscal 2023 financial results, which demonstrated a strong performance in areas related to displays, TVs, and similar technologies. Key financial figures are provided below:
| Financials (in thousands) | March 31, 2023 | April 1, 2022 | FYTD March 31, 2023 | FYTD April 1, 2022 |
|---|---|---|---|---|
| Revenue: | ||||
| Licensing | $351,608 | $313,833 | $659,619 | $646,117 |
| Products and services | $24,283 | $20,538 | $51,193 | $39,887 |
| Total revenue | $375,891 | $334,371 | $710,812 | $686,004 |
| Cost of revenue: | ||||
| Cost of licensing | $21,365 | $16,672 | $34,724 | $31,607 |
| Cost of products and services | $19,684 | $18,843 | $40,775 | $36,617 |
| Total cost of revenue | $41,049 | $35,515 | $75,499 | $68,224 |
| Gross profit | $334,842 | $298,856 | $635,313 | $617,780 |
| Operating expenses: | ||||
| Research and development | $67,951 | $67,421 | $132,401 | $136,245 |
| Sales and marketing | $95,695 | $84,230 | $177,900 | $181,400 |
| General and administrative | $61,939 | $98,693 | $121,911 | $161,137 |
| Restructuring charges/(credits) | $33 | $5,162 | ($211) | $5,067 |
| Total operating expenses | $225,618 | $255,506 | $432,001 | $483,849 |
| Operating income | $109,224 | $43,350 | $203,312 | $133,931 |
The company’s licensing business, which includes displays and TVs segments, has shown considerable growth. This growth can be attributed to the adoption of Dolby Vision and Dolby Atmos in a wide range of products, such as televisions, mobile devices, and other consumer electronics. Dolby’s increasing presence in the display and TV market is evident.
Major Chinese companies like Oppo and Xiaomi have adopted Dolby technologies in their products, contributing to Dolby’s growth in the region. Oppo and Xiaomi are utilizing Dolby Vision and Dolby Atmos in their smartphones and televisions, enhancing the visual and audio experiences for users. Weibo, one of China’s largest social media platforms, now supports Dolby Vision and Dolby Atmos joining WeChat, Bilibili, and QQ. Dolby Vision offers an advanced High Dynamic Range (HDR) imaging technology that delivers stunning color, brightness, and contrast, while Dolby Atmos provides an immersive audio experience with three-dimensional sound.
