Dolby Laboratories, Inc. (NYSE:DLB) Q4 2019 Earnings Conference Call - Final Transcript

Nov 14, 2019 • 05:00 pm ET

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Dolby Laboratories, Inc. (NYSE:DLB) Q4 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you. [Operator Instructions] Your first question comes from Ralph Schackart with William Blair.

Analyst
Ralph Schackart

Good afternoon. Kevin, a couple of questions just on some of the longer term commentary of accelerating growth. I understand that you have the Dolby Atmos and Dolby Vision come together. But can you just give us a sense of when you talk about accelerating growth, what's the timeline on that? Would that be something that potentially could occur as you exit this fiscal year? And then maybe a follow-up is, I know you switched to 606 and I guess previous fiscal year, but how comparable is 2020 to 2019 given the switch just trying to get a sense of how is this a true growth rate here or if there is any accounting treatment there and I have a follow-up. Thanks.

Executive
Kevin Yeaman

Sure. So, I'll take the first one, I might have Lewis give some color on the -- our first true comparison here. So, Ralph, yes, so thank you for acknowledging that we have -- we are really proud of the momentum we built up with Dolby Vision and Dolby Atmos, and that's what gotten -- has allowed us to get to this mid to high single-digit growth rate, and we see a lot of opportunities ahead. And what I laid out in the script today are some of the areas where we see opportunity to accelerate that growth rate any further. And I guess the short answer to your question is we -- I do believe that those could be -- I think you asked whether we could hit that exiting the year. I believe it could. It's difficult for us to predict these inflection points. It has been difficult in the past, but we know where the opportunities are and we know what it takes to go after them, and that is to continue to increase the amount of available content, that increases the proposition for why people would want to include us on more devices. You look at the progress we've made just recently, where are you now can enjoy Apple TV plus, Disney plus, College Football on Saturday Night, all of these are more reasons to want the Dolby Vision, Dolby Atmos experience. Those are the things that are going to drive us towards that inflection point and we are just heads down working to get there as fast as we possibly can.

And as I said, I'm very excited about new context for Dolby Vision and Dolby Atmos and with Music this quarter, we think that's the beginnings of something which can open up devices for us that we haven't had the opportunity to play in recently. Lewis, do you want to talk about the 606, 605?

Executive
Lewis Chew

Yes. We really haven't spent much time in the company at 606, so it is nice to touch on the topic that didn't take any effort. Yes. I think Ralph, just to clarify on your question, fiscal '19 was -- the year we just