TiVo Inc. Announces Strong First Quarter FY-2006 Results

Strategic Insights -

TiVo Inc. reported impressive financial results for the first quarter of FY-2006, marked by significant revenue growth, gross margin expansion, and a substantial increase in the subscription base. The company's service and technology revenue grew to $40.0 million, a 59% increase from the same period last year, while gross margin jumped to $22.4 million, a 121% rise compared to the first quarter of FY-2005. The number of subscribers more than doubled in the last 12 months, reaching over 3.3 million.

Key Takeaways:

  • TiVo's service and technology revenue increased by 59% to $40.0 million in the first quarter of FY-2006, compared to $25.2 million in the same period last year.
  • Gross margin expanded by 121% to $22.4 million, up from $10.1 million in the first quarter of FY-2005.
  • The subscription base more than doubled in the last 12 months, reaching over 3.3 million.
  • TiVo announced a multi-year strategic partnership with Comcast, the nation's largest cable provider, to develop a version of the TiVo service for Comcast.
  • The company's next-generation service strategy, which includes the ability to view content from Internet-based services, is expected to drive growth and differentiate the TiVo experience from generic cable and satellite DVR systems.
  • TiVo's intellectual property portfolio grew with the grant of 8 new domestic and foreign patents, bringing the total number of patents to 85.
  • Management guidance for net loss for the year was narrowed to a range of $10.0 million to $20.0 million.
  • The company expects to reach profitability by the fourth quarter of the year.

Statistics:

  • Service and technology revenue for the first quarter of FY-2006: $40.0 million
  • Gross margin for the first quarter of FY-2006: $22.4 million
  • Subscription base as of April 30, 2005: 3,320,000
  • Number of net new subscriptions in the quarter: 319,000
  • Number of DIRECTV subscriptions: 2.1 million
  • Number of TiVo-Owned subscriptions: 1.2 million
  • Revenue growth percentage: 59%
  • Gross margin growth percentage: 121%

Sources:

  • TiVo Inc. press release, dated May 26, 2005
  • TiVo Inc. Annual Report on Form 10-K for the fiscal year ended January 31, 2005, filed with the Securities and Exchange Commission
  • TiVo Inc. website: http://www.tivo.com/