Good morning, everybody. Our next presentation this morning is InterDigital Corporation. InterDigital is a global research and development company focusing on wireless, visual, AI, and related technologies, specifically those technologies that allow for a range of communications between all the devices that we use every day. The stock trades in New York under the symbol IDCC. With us from management this morning are Raiford Garrabrant, Head of IR, and Anthony Mancuso, VP Finance. Raiford. Thank you so much, John. It's a pleasure to be with you. Good morning, everyone. Before I start, I'd like to thank. Heart for having us. There's nothing I enjoy more than telling people about InterDigital, and we appreciate this opportunity. Also, thanks to all of you that are in the room here, seeing some familiar faces and some new faces. That's great. For those listening virtually, we know your time is precious, and we appreciate you sharing it with us today. For our agenda today, I'll start with a brief company introduction, talk about the premier management team we have leading our company, our essential technology development, the business momentum we have, and how this flywheel effect is feeding the long-term growth strategy for sustained growth. How should you think of InterDigital? We are a pioneer in wireless, video, and AI research. We're led by a world-class team, really a team of all- stars in our industry with extensive industry experience. We've been driving foundational research in wireless, video, and AI since 1972. Just a quick origin story for our company. Our founder was a visionary, and he was sitting on the beach, and he was wishing that he could trade stocks remotely. It was not possible at the time. He thought wireless technology would be a nice way to be able to do that. The first generation of wireless, as you may recall, was analog-based. InterDigital and Qualcomm and others helped pave the way for digital cellular, which started with 2G. Going way back, InterDigital was born from that idea. Also, our founder, the visionary that he was, you may know the company called Universal Display. He founded that company as well. We've been leading the industry with pioneering research across the decades. With that, we've built an evergreen IP portfolio with over 34,000 patent assets and growing. We have long-term customers. This is an important point of emphasis. You'll hear me say across the presentation today that our revenue is subscription-like. We enter long-term fixed-price agreements with our customers. And, since 2021, we've signed new agreements with total contract value greater than $4 billion. Within this, we play a role in enabling a massive ecosystem of over 2 billion devices and economic value of almost $6 trillion per year. Some quick financial highlights for 2024. We generated over $800 million in revenue. We had adjusted EBITDA margin of 63% and a very strong balance sheet with around $1 billion of cash. In terms of who our top customers are, it's the who's who in technology: Apple, Samsung, Lenovo, and companies like Oppo. I mentioned we have an all-star leadership team, and it really is world-class. I trust that as part of your investment process, like you, I started my career on your side of the presentation, 10 years on the buy side. I trust that, like me, an important part of your investment criteria is the quality of the management team. Ours is top-notch. We'll start with the top left, Liren Chen. He's been our CEO for the last 4+ years. For those of you that are familiar with Qualcomm, you know that Qualcomm has two businesses. They're best known for the chips that go into smartphones and things like that. They too have a licensing business like InterDigital. We're just sort of a pure-play standalone version of that. They, along with us, have been doing pioneering groundbreaking research that makes cellular technology possible. Liren was born and raised in China. He went to the MIT of China, came to the U.S. to get his master's in engineering, and then joined Qualcomm and worked there for 25 years. He rose up through the ranks. He was an engineer, an inventor, and ultimately ended up in the licensing side of Qualcomm and rose all the way through the ranks. He ended up getting a law degree at night. He got his MBA degree at night and rose up to essentially be the number two person in what's called QTL, Qualcomm's licensing business. When it was time for InterDigital to hire a new CEO four years ago, there could not have been a better candidate, a better profile than Liren to join our team. I'll show you in a little bit how he's had a profound impact on the company since joining. Next to him is Rajesh Pankaj, also 25 years at Qualcomm. Rajesh went to the MIT of India, and then he came to the United States and went to our MIT, got a PhD, was a professor, but wanted to spend time in the private sector and rose through Qualcomm to become their head of corporate R&D, the side of the house that was doing this foundational research. Liren recruited him a year after he joined to be our head of, to be our CTO. We are very fortunate to have such credentialed and experienced leaders on our team. Rich Brezski, who could not be here today, last minute matter came up. He has provided great continuity. He has been with InterDigital for 20+ years, been CFO for 10+ years. We'll go through the rest of the team, but you can rest assured that it's a team of industry experts with tremendous credentials in their fields. InterDigital, from a business model standpoint, we call it IP as a service. What does that mean? I'll ask you to focus first on the left where it says research and innovation. At our core, we are a research and innovation company. Roughly half our employees are engineers. Roughly 90% of those are inventors. They have patents to their name. These aren't your garden-variety engineers. They're PhDs, very advanced, doing groundbreaking work, and that's what gives them energy every single day. The way we take those innovations to market is we work with standards bodies. Most of us have heard of 5G, and before that was 4G and 3G, and now we're working on 6G. We're not doing our work in a vacuum. We're doing it in a collaborative form with the standards bodies. We share our technology upfront. Along the way, we're filing patents. We're working with the standards bodies to have some of our ideas woven into 5G, along with Qualcomm and Nokia and Ericsson and others. We work together to do this to solve the problems of each generation. To the extent some of our ideas and innovations are woven into the standard, we're entitled to fair compensation for that, and we protect it through patents. You have the product implementers. This would be the Apples and the Samsungs who are bringing 5G phones to market. If it's using 5G, it's using our innovations. Then we move to the licensing box, which is how we are reaching agreements with the implementers to receive fair compensation for the work we've done. This is what is funding this virtuous cycle of innovation. We're spending $200 million per year on the advanced work that makes many of these services and products possible. What do we focus on in terms of the foundational technologies? We're focused on wireless. That's probably what we're best known for. We've been doing groundbreaking work in video and AI as well. If you just think about what you've done so far today, I trust that all of us in this room have used some form of service or technology that InterDigital helped make possible. Maybe when you woke up, you checked your email. Maybe when you were driving here, you used a navigation system to help bring you here. If you're like me, maybe you looked at YouTube, or some of you might have been on TikTok or Instagram Reels or a wide variety of applications and services that are made possible by the work InterDigital and others have brought to the market. Our research and patents in these areas underpin our business. Another slide and stat that's really powerful to me, and maybe most of you realize this, but if you don't, over the past 10 years, this chart shows from 2017- 2027, the amount of traffic crossing the mobile network is growing at an exponential rate. Within that, additionally, what's really driving it and the dominant form of data traffic now is video. Video is something that we've been working on for a very long time, and I'll speak more on why that's important. InterDigital innovations have helped make this possible. If you went back 20+ years ago, the mobile network, the internet wasn't capable of carrying this much video traffic. Video files are very data-intensive. An example here is how we show a 4K movie, Deadpool & Wolverine, 130-minute runtime. Without video compression, the time to download it to your phone or to your laptop or TV would be measured in days, maybe weeks. With video compression, it can be measured in minutes. At the same time that cellular technology has been moving from 3G to 4G to 5G, the same thing's been happening in the video realm. It just hasn't been as well understood. Another example I like to use is my mother, who will be turning 92 soon. When I came to work at InterDigital almost three years ago, she says, "What does InterDigital do?" I said, "I can't really explain the technology, but I can give you an example. I can say, 'Remember, she loves her Netflix.'" I say, "Mom, remember when 15 years ago on Netflix, you had to go on your computer and order a show you wanted to watch or a movie, and within a few days, it would show up in your mailbox, and then you'd watch it and you'd send it back. Now, when you want to watch your Netflix, you just go to your TV and you type in whatever show you want to watch, and it's available instantly." She's like, "Yeah, that's great. Y'all do that?" It's like, "Well, we played a big part. We played a really important part in that. We're not alone, but that's part of the value we brought to the market. And these video compression, decompression algorithms and technologies are a key part of that." Let's talk a little bit about standards. I mentioned that we don't do our work in a vacuum. We do it in a collaborative way across our ecosystem. There are lots of ways to think about standards. In the room we're in, there are some standards, the most obvious being either the lighting or the outlet that we plug our devices into. In the U.S., there's a standard way how much electricity is there and what the outlet looks like. There aren't global standards. Recently, we were in Europe doing some investor meetings, and who forgot to take his adapter? I did. I didn't have my U.K. adapter, and I didn't have my EU adapter. I land, and I'm like scrambling because without those adapters, my devices will not plug into the wall. In some cases, standards are not global, but there's still this idea of standards being a positive thing. In the cellular world, similar 20+ years ago, if I traveled to Europe, when I landed, my smartphone wouldn't work. I'd either need a new phone or a SIM card that would work on the networks over there. The cellular industry and the standards bodies have worked together to make that's not the case anymore. When I land in London or I land in Paris, the phone just works. I don't have to know which network it's on. I don't have to know if it's 5G or 4G or 3G. It just works. It's backwards compatible. My Apple phone will talk to an Android phone. It just all works. That is because of the standards work that InterDigital and others have done. The benefits are for consumers. Standards help ensure interoperability. For the implementers, it lowers barriers to entry, and you get benefits of economies of scale. For the operators and service providers, it increases system capacity and lowers the total cost of ownership. Quick slide on us. We work, as I mentioned, very closely in the standard development process. Uniting principles are we have a strong belief in global standards. We have leadership across the organization. We participate in over 100 standard development organizations, and we take leadership roles. We are broad collaborations. We collaborate with many industry partners as well as leading universities. As we dig into this just a little bit deeper, what we see here is there's a wide array of different standards bodies that are involved with advancing cellular, Wi-Fi, and video standards. There is sort of a representative list here of some of those and some of the leadership positions we have. On the next slide, we'll double-click on the top left, which is 3GPP. 3GPP is the body that is responsible for advancing cellular standards and is now moving us from 5G- 6G. If we double-click on that, this slide tells a few things. It shows you the company we keep. It shows you how we are viewed by our peers as a leader. In 3GPP, there are 15 working groups across three different categories. Each working group has a chairperson. This is an elected position, elected by our peers. InterDigital is one of only three companies to have multiple chair positions, the other two being Samsung and China Mobile. Other companies that do have chair positions, the names you would expect: Qualcomm, Ericsson, Nokia, Apple. What this says is, while these other companies are household names, either because they have a consumer brand or a product that people are familiar with, we may not be a household name for the average consumer. In our industry, we're very highly regarded for the quality of our innovations and our willingness to collaborate and work together. Do not just take our word for it. This is a recognition we've received from LexisNexis. Over the past four years, they have honored InterDigital as being one of the world's 100 most innovative companies. It's not by a particular industry or a particular company size. Of all the companies in the world, LexisNexis has said, "We are one of the 100 most innovative companies." I should have mentioned earlier on that InterDigital is world-class in three things. We talked about research and innovation earlier. Research and innovation is one of the areas where we are world-class. Another area that we are world-class is in protecting our innovation through patenting our inventions. That fuels what we call an evergreen portfolio. Since 2017, our patent portfolio has grown more than 70%. We call it an innovation engine because we're spending $200 million per year on innovation. The portfolio is growing on average by 6 patents per day, including weekends, if you do the math. So, we license the portfolio, not an individual patent. We do it on a subscription basis. As the portfolio grows and becomes more valuable, our value proposition to our partners increases. Let's talk a little bit about the momentum in the business and the improvement we've seen in recent years. Again, going back to 2020 as sort of the starting point, Liren came on board, as I mentioned, brought a tremendous pedigree to InterDigital. I think what he saw was a company that had a very strong foundation. It was maybe a hidden gem to him. He felt like, based on the success he'd had at Qualcomm, there were ways he could elevate our company. This chart is one way of demonstrating that. It shows that since 2021, we've reached agreements for more than 50 licenses with total contract value of greater than $4 billion. As I mentioned earlier, it's a who's who of logos you see here, recent new agreements, companies like Honor and Vivo that are important players in the China smartphone market. As we mentioned earlier, Samsung and Apple those are our two biggest customers. Samsung's been a customer since the 1990s. Apple's been a customer since they came out with the iPhone. Decades of experience and relationship with some of these customers where others are new to our platform. This growth and success in driving total contract value has translated to significant growth in our annualized recurring revenue. This idea that we are a subscription-based business, our agreements with Apple and Samsung, and most of our agreements, we get paid the same amount every single year, regardless of how many products they sell. When that contract comes for renewal, we'll make the argument on why we've brought more value to them and should receive a higher value at the next step up. When we did that with Apple three years ago, we were able to get a 15% increase in annual value for a 7-year contract that's roughly worth just under $1 billion. What you see here is ARR in 2021, just around $400 million. Here we are in 2025, close to $600 million. Almost a 50% increase in annualized recurring revenue across this timeframe. If Rich was here, he would tell you this is his favorite slide because it shows the power of our model from a financial standpoint. Revenue has grown nicely, as you see on the top left, because our cost base is fairly fixed. We haven't had to increase the number of engineers. We haven't really had to increase the amount of spend on an annual basis, except maybe for inflationary increases since talent and labor is our primary cost. Outside of that, we've been able to grow revenue much faster than expenses. You've seen adjusted EBITDA grow much faster than revenue and 20 points of margin expansion from 43%- 63% over that timeframe. The bottom right shows you that our business generates a tremendous amount of cash flow. Incremental, to sign a new license, we don't have any cost of goods. We don't have to have a call center to answer customer support questions. We don't have to run a data center to support running a software service for someone. We're just granting permission for them to have access to our IP. New agreements carry essentially 100% gross margin, high flow through, generate a lot of cash. What you see here on the bottom right is since we instituted our dividend in 2011, we've returned almost $2 billion of cash to shareholders. Our share count is down by over 40% in that timeframe. I'll repeat that. Our share count is down over 40% over this timeframe. As a result, the denominator, the [guees-NAGAB EPS], grows even faster than the other metrics. I spent my first 10 years on your side of the table investing in innovation companies like InterDigital. I find this to be fairly unique to have a company that can drive such sustained growth, but at the same time, generate excess cash. You don't often find both of those attributes in one company. We're getting recognition from third parties for the success. Newsweek recently came out and named us one of America's greatest companies. Fortune named us one of the 100 fastest growing companies, and Time Magazine called us a growth leader. With all that said, that's looking back. We know that what matters most is where are we going? Two years ago, we did a perception study with the investment community to understand how we were seen versus how we saw ourselves. It was very encouraging what we learned. The investment community said, "We see you, InterDigital, as a company with an excellent management team, foundational research and innovation, a strong patent portfolio, and great financials, but nobody identified us as a company positioned for sustained growth, even though we'd been growing." They didn't say the word growth. We were viewed more as a cash cow, if you will. Internally, we had plans, and we saw ourselves as a growth company, but we hadn't yet shared the growth plans with the investment community. We held an investor day 14 months ago. This is when, for the first time, we laid out, planted our flag, and said, "We are a growth company. Here's the opportunity. Here's the strategy, and here's what we think we can accomplish." This was when we came out for the first time with our target to achieve $1 billion plus of annualized recurring revenue by 2030. We've made significant progress towards that goal since the investor day. We've got three growth pillars. What we're best known for is smartphone. We laid out a target to get by 2027 to $500 million of ARR. At the time, in 2023, we were around just under $350 million. We have made significant progress and are very close to the goal we have laid out ahead of schedule. The two other buckets, consumer electronics, Internet of Things, and ALDO. When Liren came on board, the $97 million of ARR you see was around $20 million. So almost a five-fold increase, yet we still see room to double by 2030. The greenfield opportunity that gets a lot of excitement from us and from the investment community is in streaming and cloud services. We do not have revenue there today, but our technology is being used. We do not have to invent anything new. We do not have to convince anyone to use our technology. We are making concrete progress that I will touch on in just a moment on that front. I will move quickly through the market opportunities because I want to be mindful of time here. On the smartphone side, we now have roughly 85% of the market under license. Great progress there, as we've talked about. In terms of consumer electronics and IoT, where are the opportunities? Four primary buckets. Top left, you see PCs and tablets, a huge market. We have around 60% of the market under license today. You can see in the light blue who the primary opportunities are there. In televisions, we have around 35% of the market under license. You can see in the light blue the primary opportunities we're focused on there. Passenger vehicles, bottom left. This is a really interesting opportunity. Increasingly, cars are connected with cellular technology. The estimate is in 2025, around 65 million cars are connected. Interestingly, there's a lag. Most cars that are connected are still 4G. Two things are forecast to happen over the next few years. One, the growth rate of connected cars is expected to be 10% plus. Equally, if not more importantly, there is a shift happening from 4G connectivity to 5G connectivity. The reason that is important is we license this market through a licensing pool called Avanci. The licensing rates that come to the pool and get distributed for 5G are roughly 2x what they are for 4G. You have unit growth plus an improving mix from 4G- 5G. In the bottom right, cellular IoT is a huge market, more fragmented, but 250 million units just in the three focus areas of point of sale, smart meters, and asset tracking going to 350 million units in the coming years. Let's dig a little deeper on the streaming and cloud services opportunity for us. As I talked about earlier, the subscription video-on-demand services like Netflix and Disney+, the ad-supported video services like TikTok, YouTube, and Reels. All of these services have been made possible by the foundation that InterDigital and others have laid through the years. The video compression/decompression technology we talked about, that's what makes these services technically feasible, and it makes them economically feasible. Without this technology, without this foundation, these services don't exist. It's only been in the past few years, post-COVID, that we've seen these applications really, really explode and hit critical mass. For InterDigital, we've started a program to license these players. What's pretty interesting is the TAM. If you look at SVOD and AVOD, the light blue, which is the 2025 forecast, you add those together, that's $475 billion. These two have just crossed over to be larger than the smartphone market, the primary market we've been serving for years, both of them close to $0.5 trillion. It is a huge opportunity. Our technology is critical to enable that. We are entitled to fair compensation. As I mentioned, we do not have any revenue yet, but we are making concrete progress. Disney is one of the companies we have been talking to, all the major players. We were talking to Disney for a couple of years. In February of this year, we came to the conclusion that we were not going to be able to reach an agreement through bilateral negotiation. As a last resort, we do not want to, and most of the time we do not have to, but we will when needed use enforcement to protect our rights. We filed suits against Disney in February in Brazil, Germany, UPC in Europe, and in the United States. An important couple of things have happened since then. In September, the Brazilian court issued a preliminary injunction for the two patents in suit that we had brought. This was based on a 200-page report from an independent court-appointed expert. This was really the first time that someone outside of InterDigital had validated what we've been saying, which is our IP is critical and our IP is being infringed. Since then, a couple of weeks ago in Germany, the court issued a preliminary injunction on one of the suits we brought there. So far, three rulings, three preliminary injunctions. Very good progress. No guarantee of anything to come, but it's encouraging for us that the outside world is seeing what we've been saying for some time. Couple more slides, and then we'll have some time for a couple of questions. Capital allocation priorities, we get asked a lot. We have such a strong balance sheet. Excuse me. Cash now in our most recent quarter is over $1.2 billion. The top priority is to maintain the fortress balance sheet. You can imagine we're negotiating with companies that might be a thousand times our size or even more. We're also committing to them that we're here for the long haul, and we're going to keep taking the money we receive from them and investing in future research. We want to demonstrate staying power. We want to demonstrate financial strength. Secondly, we've got to continue to invest organically in the business. We always prioritize innovation and investing in the IP portfolio. It's important to note that to reach our 2030 goals, we don't need to make any inorganic investments. What we have in place is sufficient to do that. At the same time, we're continuously assessing inorganic investments that can be opportunistic or strategic. We made an acquisition a few weeks ago of an AI company in London called Deep Render. We're always looking at ways we can complement what we have or explore new areas. Even with all that, we've still, as I mentioned, generated tremendous amounts of excess cash across time. We've been good stewards returning that to shareholders through buybacks, $1.4 billion since 2011, and dividend increases. We just increased at 17% on September 25th. Target financial model for 2030, we talked about the fact that we're targeting $1 billion of annualized recurring revenue. From where we sit today, that would represent a double-digit compound growth rate. Powerful operating leverage, as we mentioned, there's a lot of leverage in our model. With that, we target 60% plus adjusted EBITDA margins just on recurring revenue. Our guidance for Q4, which we just provided recently, just on recurring revenue, adjusted EBITDA is around 50%. Not only can we grow top line, we believe recurring at a double-digit rate, but we see meaningful room to expand margins. There's something we haven't talked about yet. Maybe it comes up in Q&A. We also, when we sign a new customer for the first time, we typically are able to get a one-time payment called catch-up revenue for their past use. That's just icing on top of all of this. We feel we're well-positioned to drive value going forward. Just to wrap it up, I mentioned that we have a world-class all-star team, strong momentum in the business, large addressable markets, and growth to $1 billion. If you only remember one thing from my presentation today, it's InterDigital, the future is bright. Thank you for that, and happy to take any questions. Yes. What percentage of your revenue is for renewal next year? Is your dividend policy now that you've started growing? What's up for renewal? We have announced right now our ARR is around $588 million. Total revenue is higher than that. We have around $90 million of revenue that expires at the end of 2025. The two biggest within that would be Xiaomi, a Chinese smartphone maker, and Samsung TV. Ninety may sound like a big number, but in context, our agreements, there's no exact average, but let's say they're plus or minus five years. In a given year, you're probably going to have ±20% of your agreements up for renewal. Historically, if you're in the smartphone market and your phones are 5G compliant, it's not like you have an alternative. You can't design us out. If we're in the standard and your phone's standard- compliant, we're entitled to fair compensation for that. That is something that as long as those companies remain in the market, then we'll find a way to reach an agreement. They don't always happen right at the time that the agreement renews. If there is any type of gap in that, we're entitled to catch-up revenue for that. Your second question, sorry. Dividend policies, since you've been growing since 2023? Yeah, the question is about the dividend policy. I think what you've seen is, without an explicit policy that we've stated publicly, is a belief that slow and steady increases are the best way to think about the dividend. Yes. You mentioned you have a long-term contract, 17 years, as an example. How many of those are fixed price versus are you able to get an inflation adjustment during that period rather than only looking at more phones as an example plus inflation at the end? Yeah. The question is, what percentage of our contracts are fixed price, and do we have an ability to have inflation adjustments in that? Most 90%+ of our revenue is coming from fixed price agreements that aren't dependent on smartphone unit sales, for instance. Not that there is an annual increase baked into that each year, but it's contemplated when we sign the agreement upfront. Let's say Apple, 7-year agreement renewed in 2022, we're getting $134 million per year, almost a billion dollars. You can imagine that baked into that number was some amount of inflationary increase over time. When we have the next renewal, our commitment to the industry and to others is that we're going to make our portfolio more valuable. We're going to help make 6G happen. That's what's being discussed now. By the time of the next renewal, hopefully we can sit down with Apple and say, "Hey, we've made our portfolio even more valuable." We hope that we can reach an agreement where we have a step up in that annual value. Okay. Oh, one more. You had a wonderful deal this year with all the catch-up payments for Samsung and all the litigation going in your favor. What's going to drive the next phase of growth to your $1 billion ARR? You already have a big contract. Yeah, yeah. Right. The question is, we've had a great year this year. We've had some catch-up revenue and some good wins. What drives us to have sustained growth going forward? This is where we'd really parse it apart and ask people to focus on the annualized recurring revenue because that's the part that's easier for us to forecast, and that's what we run the business on. Hopefully the opportunities we laid out in front of you, where we're at $588 million of ARR today, working towards $1 billion, the biggest upside opportunities from where we sit today would be consumer electronics and IoT. We're at $97 million of ARR, targeting $200 million. I laid out some of the opportunities there. The biggest greenfield opportunity is in streaming, where we do not have any revenue today, no ARR, but we think we can get to $300 million+ by 2030. That is where the bigger upside is, and that is about getting new customers under license who are already using our technology, just reaching agreements with them. It looks like we are out of time, but thank you so much for being here.