SAN JOSE, CA--(Marketwired - Nov 24, 2015) - TiVo Inc. (NASDAQ: TIVO) Record Service and Software & Technology revenue of $102.8 million, an increase of 17% year-over-year; top-end of guidance range
Highest quarterly net subscription additions in ten years
MSO service revenue growth accelerated, up approximately 60% year-over-year; driven by highest ever third quarter MSO net subscription additions of 418,000
Adjusted EBITDA was $29.3 million
GAAP Net Income was $5.3 million; Non-GAAP Net Income grew 39% year-over-year to $9.9 million
Launched TiVo BOLT to overwhelming accolades
TiVo-Owned gross additions of 52,000 were up 44% year-over-year; ninth straight quarter of double-digit growth
Total TiVo subscriptions now approximately 6.5 million, up 26% versus a year-ago
Signed new international distribution, including a deal with Millicom in Latin America
Announced Tom Rogers to relinquish CEO position at TiVo; will become Chairman of the Board
TiVo Inc. (NASDAQ: TIVO), a leader in the advanced television entertainment market, today reported financial results for the third quarter ended October 31, 2015.
Tom Rogers, President and CEO of TiVo, said, This was a strong quarter of execution and growth. We posted record Service and Software & Technology revenue. Our continued innovation is leading to new distribution deals as well as a strengthening in our existing operator relationships. This drove an acceleration in the growth of MSO service revenue in the third quarter, which was up 60% year-over-year. In addition, the turnaround in the TiVo-Owned business continues as we launched the innovative TiVo BOLT and gross additions were up 44% year-over-year, our ninth straight quarter of double-digit growth. Our business trends are improving, and as we move forward, we believe we are well positioned to deliver strong results for the full fiscal year and beyond.
Third Quarter Financial Overview
For the third quarter, service and software & technology revenues were $102.8 million. This compared to guidance in the range of $100 million to $103 million, and $88.1 million for the same quarter last year. TiVo reported Adjusted EBITDA of $29.3 million compared to $27.7 million in the same quarter last year. GAAP Net Income was $5.3 million; Non-GAAP Net Income grew 39% to $9.9 million compared to the year ago quarter. Non-GAAP net income excluded $1.9 million relating to amortization & earn-outs from Cubiware, $1.9 million of interest expense on the 2021 convertible notes, and $0.9 million loss on the repurchase of 2016 convertible notes, all net of tax. Additionally, the company repurchased $40 million of its 4% convertible notes, representing 3.6 million shares during the third quarter based on the conversion price of 4% convertible notes.
MSO Business
Rogers continued, Our relationships with more than 70 global operator partners through our traditional TiVo solution, Digitalsmiths and Cubiware (all coming together in a next-generation solution -- TiVo Lite) products continue to strengthen and we are seeing significant interest from new operators across all offerings. We now stand at over 5.5 million MSO subscriptions for the traditional TiVo offering, and experienced the strongest growth in 10 years, with net additions of 418,000, up 47% sequentially, and 24% year-over-year.
On the international MSO front, we reached over four million subscriptions, driven by strong results from Vodafone Spain and Virgin Media. We also reached a new deal with Millicom, a global provider of wireless and wireline communication services to over 50 million subscribers, including to 6 million wireline homes passed in Latin America, to provide our products in various countries across its Latin American footprint. In addition, we made strong progress with Cubiware, announcing new relationships with Supercanal, Argentinas leading MSO and MultiMedia Polska, Polands leading cable operator.
In North America, we had another strong quarter with MSO cable subscription net additions growing 44% year-over-year as we are now deploying the TiVo experience across more than 15 mid-sized operators. This is in addition to the seven out of the top-ten operators, such as Charter, Time Warner Cable and Dish Network, we serve through Digitalsmiths, which posted double-digit year-over-year revenue growth.
TiVo Retail Business
Our TiVo-Owned business showed an improving trajectory, highlighted by an increase of 44% year-over-year in gross additions, an acceleration over last quarter and the ninth straight quarter of year-over-year double-digit growth. And we grew our overall sub base with the strongest third quarter net additions in 9 years. This success was driven by the continued strength of TiVo Roamio, our whole home offering, as well as the launch of TiVo BOLT, the newest TiVo innovation. Additionally, we launched a marketing campaign around TiVo BOLT at the end of third quarter that will continue through the holiday season, and while this discretionary spend impacts Adjusted EBITDA, we believe it is an investment in future growth for our TiVo-Owned business.
BOLT was hailed as breakthrough by many in the tech space, including from The Verges Walt Mossberg, who wrote that Now, with the Bolt, TiVo is ready to proclaim itself the One Box To Rule Them All. Yahoo! Techs David Pogue wrote that BOLTs speed, its software layout, its consolidation of both cable and Web services, its playback stunts, its ad skipping, its ability to set your recordings free from the box in the living room Now more than ever, TiVo is the closest thing well get to a time machine. BOLT is a significant step forward and it should have a meaningful role in advancing our TiVo-Owned efforts.
Data Analytics Business
Turning to our research efforts, we are starting to see traction from our efforts to utilize our unique data for targeted and p
