Dolby Laboratories (DLB) Q3 FY2024 earnings: revenue $289 million, down 3.2% on the year

Dolby Laboratories, Inc. (DLB) reported revenue of $289 million for Q3 FY2024, the quarter ended 28 June 2024, down 3.2% on the same quarter a year earlier. Net income was $38 million, up 134.4% on the year, and diluted earnings per share $0.40. The figures are the company's own, from the 10-Q it filed with the SEC on 7 August 2024.

Revenue$289 milliondown 3.2%

Net income$38 millionup 134.4%

Diluted EPS$0.40

QuarterQ3 FY2024ended 28 June 2024

The quarter, against the one before and a year earlier

Line	Q3 FY2024	Q2 FY2024	A year earlier	Change on the year
Revenue	289	365	n/a	n/a
Cost of revenue	35.7	38.8	n/a	n/a
Gross profit	253	326	n/a	n/a
Gross margin	87.7%	89.4%	n/a
Research and development	65.5	62.5	n/a	n/a
Operating income	36.8	109	n/a	n/a
Operating margin	12.7%	29.9%	n/a
Pre-tax income	50.2	122	n/a	n/a
Income tax	10.5	23.5	n/a	n/a
Effective tax rate	20.9%	19.3%	n/a
Net income	38.4	97.8	n/a	n/a
Net margin	13.3%	26.8%	n/a
Diluted EPS	$0.40	$1.01	n/a	n/a

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q3 FY2024	Q2 FY2024	A year earlier	Change on the year
Operating cash flow	21.3	181	n/a	n/a
Capital expenditure	7.6	8.9	n/a	n/a
Free cash flow	13.7	172	n/a	n/a
Free cash flow margin	4.7%	47.3%	n/a
Cash from investing	-7.7	-17.9	n/a	n/a
Cash from financing	-58.4	-44.2	n/a	n/a
Depreciation and amortisation	18.3	18.0	n/a	n/a
Share-based compensation	29.3	28.9	n/a	n/a
Buybacks	35.0	25.0	n/a	n/a
Dividends paid	28.7	28.7	n/a	n/a
Dividend per share	$0.30	$0.30	n/a	n/a
Diluted shares, weighted	97m	97m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q3 FY2024	Q2 FY2024	A year earlier	Change on the year
Shareholders' equity	2,433	2,421	n/a	n/a
Non-controlling interest	14.6	16.8	n/a	n/a
Operating lease liabilities	35.6	37.7	n/a	n/a
Other liabilities	491	569	n/a	n/a
Total liabilities and equity	2,974	3,045	n/a	n/a
Fixed assets	478	481	n/a	n/a
Goodwill	408	409	n/a	n/a
Intangible assets	145	152	n/a	n/a
Investments	245	244	n/a	n/a
Cash and equivalents	742	710	n/a	n/a
Receivables	286	282	n/a	n/a
Inventory	34.7	35.8	n/a	n/a
Other assets	635	731	n/a	n/a
Total assets	2,974	3,045	n/a	n/a

Quarterly results, the last 12 quarters

	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	291	316	365	289	305	357	370	316	307	347	396	305
Cost of revenue	35.6	32.1	38.8	35.7	34.0	40.8	35.8	44.0	39.5	43.2	44.7	40.3
Gross profit	255	284	326	253	271	316	334	272	268	303	351	265
Gross margin	88%	90%	89%	88%	89%	89%	90%	86%	87%	88%	89%	87%
R&D	70.4	67.0	62.5	65.5	68.6	66.6	61.7	66.0	67.5	69.1	63.7	65.7
Operating income	-3.5	66.2	109	36.8	46.4	79.9	108	47.6	29.7	62.2	113	34.3
Operating margin	-1%	21%	30%	13%	15%	22%	29%	15%	10%	18%	29%	11%
Pre-tax income	9.0	80.8	122	50.2	59.7	86.1	120	55.5	41.7	71.6	120	43.8
Tax rate	-10%	16%	19%	21%	1%	21%	23%	16%	-19%	25%	20%	33%
Net income	9.2	67.0	97.8	38.4	58.6	67.8	91.8	46.1	49.3	53.3	94.9	28.6
Net margin	3%	21%	27%	13%	19%	19%	25%	15%	16%	15%	24%	9%
Diluted EPS	$0.09	$0.69	$1.01	$0.40	$0.61	$0.70	$0.94	$0.48	$0.51	$0.55	$0.99	$0.30
Operating cash flow	85.0	8.4	181	21.3	116	107	175	67.7	123	54.8	92.5	167
Capital expenditure	8.2	6.1	8.9	7.6	7.4	6.8	6.9	6.4	16.2	4.6	9.1	15.0
Free cash flow	76.8	2.3	172	13.7	109	100	168	61.3	107	50.2	83.4	152
Buybacks	25.0	80.0	25.0	35.0	20.0	15.0	35.0	40.0	35.0	70.0	65.0	65.0
Dividends paid	25.8	28.6	28.7	28.7	28.6	31.5	31.8	31.6	31.6	34.3	34.3	34.0
Filing	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 28 June 2024, filed 7 August 2024, accession 0001628280-24-035707: the filing on EDGAR. All of Dolby Laboratories, Inc.'s filings: EDGAR company page.

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