Dolby Meets Q2 Targets, Keeps Outlook as Vision and Atmos Expand

Management signals a pivot to usage-based sales to extend Dolby formats to more mainstream devices.

Overview

Dolby reported quarterly revenue of $396 million and non-GAAP earnings of $1.37 per share, both within prior guidance.
The company kept its full-year forecast, calling for $1.4 billion to $1.45 billion in revenue and $4.30 to $4.45 in non-GAAP EPS.
Management highlighted $93 million in operating cash flow, $65 million in share buybacks, and a 36-cent dividend that is up 9% from last year.
Adoption of Dolby Vision high dynamic range video and Dolby Atmos immersive audio grew with partners such as Meta and BMW and with mass-market TV makers Hisense and TCL, with brand visibility reinforced at the Super Bowl and the Winter Olympics.
Leaders set a goal for consumption-based revenue to reach 10% of sales within three years and pointed to Dolby Optiview for live sports streaming as a key opportunity.