Qualcomm, but for audio and video technologies.

The 'Intel Inside' for superior sound and picture.

• Dolby Atmos: An immersive audio technology that adds height channels and object-based sound, creating a three-dimensional listening experience.
• Dolby Vision: An advanced high dynamic range (HDR) video technology delivering brighter highlights, deeper darks, and a wider color gamut for a more lifelike viewing experience.
• Dolby Audio Technologies: A suite of audio coding and processing technologies, including codecs like AC-4 and AC-3, used across broadcast, streaming, and consumer devices.
• Dolby.io: A developer platform providing APIs and SDKs to integrate Dolby's audio, video, and interactivity technologies into applications and services.

Dolby Laboratories (DLB) primarily operates on a Business-to-Business (B2B) model. It does not sell directly to individual consumers but rather licenses its advanced audio and video technologies to other companies that integrate these technologies into their products and services. Due to the diversified nature of its licensing model across numerous product categories and industries, Dolby typically does not have a small number of "major customers" that account for a significant percentage of its total revenue, as explicitly stated in its SEC filings.

However, its broad customer base includes hundreds of companies across several key industries. The primary categories of these customers and examples of prominent companies within each category that widely integrate Dolby technologies include:

• Consumer Electronics Manufacturers: Companies that embed Dolby technologies like Dolby Digital, Dolby Atmos, and Dolby Vision into their televisions, soundbars, smartphones, PCs, gaming consoles, and other devices.
  • Samsung (005930.KS)
  • LG (066570.KS)
  • Sony (SONY)
  • Apple (AAPL)
  • Microsoft (MSFT - for Xbox consoles and Windows PCs)
  • Vizio (VZIO)
• Content Creators and Distributors (Media & Entertainment): Studios, broadcasters, and streaming services that produce, mix, and distribute content utilizing Dolby's audio and video standards, and often license Dolby technologies for their playback platforms.
  • Netflix (NFLX)
  • The Walt Disney Company (DIS - for Disney+ and studio content)
  • Amazon (AMZN - for Prime Video and Amazon MGM Studios)
  • Warner Bros. Discovery (WBD)
  • Universal Music Group (UMG.AS)
• Automotive Manufacturers: Car manufacturers that integrate Dolby Atmos into their in-car entertainment systems to provide immersive audio experiences.
  • Mercedes-Benz Group (MBG.DE)
  • Lucid Group (LCID)
  • Nio (NIO)

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Kevin Yeaman, President, Chief Executive Officer and Director

Kevin Yeaman is the President, Chief Executive Officer, and Director of Dolby Laboratories, a role he has held since March 2009. Before becoming CEO, he served as Dolby's Chief Financial Officer starting in 2005. Prior to joining Dolby, he was the Chief Financial Officer at Epiphany Inc. from 1999 to 2005, guiding the technology start-up through its early stages. He also served as the Vice President of Worldwide Field Finance Operations at Informix Software Inc. from 1998 to 1998. Yeaman was also a Senior Manager at KPMG LLP.

Robert Park, Senior Vice President and Chief Financial Officer

Robert Park is the Senior Vice President and Chief Financial Officer at Dolby Laboratories, a position he has held since 2021. He leads the company's global finance organization. Throughout his over 25-year career, Park has held financial and strategic business leadership roles at several companies, including serving as CFO at BlueJeans Network, Practice Fusion, Chegg Inc., and PayPal. Notably, BlueJeans Network, where he was CFO, was acquired by Verizon in 2020. He began his finance career with Ernst & Young LLP.

Andy Sherman, Executive Vice President, General Counsel and Corporate Secretary

Andy Sherman is the Executive Vice President, General Counsel and Corporate Secretary at Dolby Laboratories. He oversees Dolby's patent and intellectual property licensing businesses, government relations, and worldwide legal affairs. Before joining Dolby, Sherman was Senior Vice President, General Counsel and Secretary at CNET Networks, responsible for global legal and regulatory matters, and he joined CBS Interactive after CBS acquired CNET Networks. Earlier in his career, he worked in private practice with Gray Cary Ware & Freidenrich (now DLA Piper), specializing in intellectual property and technology-related legal matters for emerging technology companies.

John Couling, Senior Vice President of Entertainment

John Couling is the Senior Vice President of Entertainment at Dolby Laboratories. He leads a global team responsible for developing and delivering entertainment experiences for consumers worldwide, overseeing Dolby's consumer entertainment and cinema businesses. Couling joined Dolby in 1997 as an applications engineer, working in the emerging DVD market.

Shriram Revankar, Senior Vice President, Advanced Technology Group

Dr. Shriram Revankar is the Senior Vice President of the Advanced Technology Group at Dolby Laboratories. In this role, he oversees teams that create and deliver innovations in immersive entertainment experiences, including the office of the Chief Technology Officer, image and sound research and development, prototyping, and technical operations. Prior to Dolby, Revankar served as Vice President and Fellow at Adobe, where he focused on delivering high-impact technologies to Adobe's Digital Experience and Document Cloud Businesses.

The key risks to Dolby Laboratories' business include:

1. Dependence on Licensing Agreements and Market Demand: Dolby Laboratories faces significant business risks due to its reliance on licensees and Original Equipment Manufacturers (OEMs) to incorporate its technologies into their products. The majority of Dolby's revenue is derived from these non-exclusive licensing agreements, making it vulnerable if partners opt not to use their technologies, experience reduced sales, or if key licensees are lost. This risk is amplified by external market fluctuations, such as weakened consumer spending on discretionary consumer goods that utilize Dolby's technologies, and macroeconomic conditions like semiconductor shortages.
2. Intellectual Property Protection and Intense Competition: Dolby's business model is fundamentally built upon its intellectual property (IP) moat and extensive patent portfolio. A constant and global challenge for the company is the protection of its IP rights against unauthorized use and potential litigation. Furthermore, Dolby operates in highly competitive markets and faces threats from other technologies, including those developed by its key partners or open-source alternatives, which can erode its pricing power and market share.
3. Technological Disruption and Evolving Market Landscape: The rapid evolution of audio and imaging technologies presents a continuous risk of obsolescence for Dolby's offerings. The company must continuously innovate and invest in research and development to maintain its competitive edge. Shifts in content distribution (e.g., transition from traditional media to streaming services), changing consumer preferences, and intense competition in markets such as mobile devices and PCs also pose significant challenges to revenue generation and the adoption of new technologies.

Dolby Laboratories (DLB) operates in several significant addressable markets for its main products and services:

• Dolby Vision: The global market for Dolby Vision was estimated at USD 15.1 billion in 2024. This technology is a premium High Dynamic Range (HDR) standard. The broader "High Dynamic Range Market," which includes Dolby Vision, saw its "Display devices market" reach USD 19.2 billion in 2023, and the "Capturing devices market" was USD 17.7 billion in 2024, both globally. The consumer electronics sector within the HDR market accounted for USD 13.8 billion globally in 2024, while the media and entertainment market was USD 8.4 billion globally in 2023.
• Dolby Atmos TV: The global Dolby Atmos TV market was valued at approximately USD 4.911 billion in 2024 and is projected to reach around USD 6.743 billion by 2033.
• Dolby Atmos Soundbar: The global Dolby Atmos soundbar market is projected to reach USD 7.467 billion in 2025.
• Dolby Atmos Music: The global Dolby Atmos Music market size was valued at USD 1.2 billion in 2024 and is forecasted to reach USD 7.8 billion by 2033.
• 3D Audio Market (including Dolby Atmos): The global 3D audio market, where Dolby Labs is a prominent player, is forecasted to grow from USD 5.8 billion in 2023 to an estimated USD 17.22 billion by 2033. In 2023, North America led the global 3D audio market with a 36.4% share, translating to USD 2.1 billion in revenue. The North America 3D Audio Market held the largest revenue share of 33.8% in 2024.

Here are 3-5 expected drivers of future revenue growth for Dolby Laboratories (DLB) over the next 2-3 years:

1. Expansion in the Automotive Market: Dolby Atmos and, more recently, Dolby Vision are experiencing significant and accelerating adoption in the automotive sector. The number of auto manufacturers supporting Dolby Atmos has more than doubled in the past year, growing from 10 to over 20 companies, including major brands like Cadillac, Mercedes-Benz, Volvo Cars, and Li Auto. This growth is driven by increasing consumer demand for immersive audio and visual experiences in vehicles, transforming cars into entertainment hubs, particularly in electric vehicles with advanced infotainment systems. Partnerships with automotive SoC and DSP suppliers, as well as aftermarket potential through companies like Pioneer, are further accelerating this adoption.
2. Growing Adoption of Dolby Atmos and Dolby Vision in Streaming Content and Consumer Devices: There is a continuous increase in the creation and distribution of content in Dolby Atmos and Dolby Vision across various platforms. This includes major streaming services like HBO Max expanding their Dolby Atmos and Dolby Vision offerings globally, as well as the increasing availability of live sports content in these formats on platforms like Comcast Xfinity and various global partners. Furthermore, growth is anticipated from increased penetration in TVs, including new models from manufacturers like Hisense, TCL, LG, and Samsung, and in mobile devices, with new phones from brands like Motorola and Xiaomi supporting Dolby Vision and Dolby Atmos. The music industry is also seeing a surge in demand for Dolby Atmos Music, with major streaming platforms requiring artists to produce music in this format to be featured.
3. Expansion of Dolby Cinema Footprint: Dolby is strategically expanding its presence in the theatrical market. A significant partnership with AMC Entertainment will add an additional 40 Dolby Cinema locations in the United States by the end of 2027, representing a nearly 25% increase in the existing U.S. Dolby Cinema count. This expansion capitalizes on the growing demand for premium moviegoing experiences, with Dolby Cinema having achieved its strongest box office performance in 2024. Dolby Vision has also been selected by AMC as its HDR offering of choice, further solidifying the premium experience.
4. Growth of Dolby.io and Real-time Streaming Solutions: Dolby is expanding its Dolby.io offerings, focusing on enabling more engaging real-time and personalized experiences in sports and entertainment. The acquisition of THEO Technologies in July 2024 is a key part of this strategy, enhancing Dolby's cloud video products for real-time streaming and addressing customer demand for customized experiences. Early success includes securing seven-figure deals for its ultra-low latency real-time streaming product.
5. Contribution from the GE Licensing Acquisition: The acquisition of GE Licensing in fiscal year 2024 significantly bolstered Dolby's imaging patent portfolio with over 5,000 patents, including HEVC and VVC technologies. This acquisition is expected to contribute approximately $55 million to total revenue and be accretive to non-GAAP operating margins and earnings in fiscal 2025, further diversifying Dolby's licensing revenue streams. Analysts estimate these patents could generate over $1 billion in royalties over time.

Share Repurchases

• Dolby's Board of Directors approved an increase of $350 million to its stock repurchase program on August 7, 2024, bringing the total amount available for future repurchases to approximately $422 million.
• In the fourth quarter of fiscal year 2024, Dolby repurchased approximately 251,000 shares of its common stock, with approximately $402 million of authorization remaining.
• During the third quarter of fiscal year 2025, Dolby repurchased approximately 526,000 shares of its common stock for approximately $40 million, leaving about $312 million of stock repurchase authorization available.

Share Issuance

• Dolby Laboratories' shares outstanding have shown a decline over the last few years, decreasing by 0.42% to 0.097 billion in 2024 and by 4.17% to 0.098 billion in 2023.

Outbound Investments

• Dolby acquired THEOplayer, an HTML5 Video Player, in August 2024.
• The company made one investment in Ittiam in November 2021.
• Dolby's cash acquisitions saw a five-year low of -$487.9 million in September 2024, indicating significant cash outflow for investments, after peaking at $25.703 million in September 2023.

Capital Expenditures

• For the fiscal report ending June 27, 2025, Dolby Laboratories Inc.'s Capital Expenditures amounted to -$27.5 million USD.
• The average annual Capital Expenditures growth rates for Dolby have been 23% over the past three years and 18% over the past five years.
• Dolby's business model, which capitalizes on licensing technologies, supports consistent investment in research and development to enhance sensory experiences, including advancements in Dolby Vision technology for image quality.