TiVo (NASDAQ:TIVO) reported third-quarter earnings after the market closed today. Revenue increased 43% to $117.3 million on strong technology and hardware revenue as the company expanded into new markets. Subscriber growth was the strongest it's been since TiVo began mass distribution of technology and services in the cable DVR market, despite the cord-cutting that's taking place across the country.
Despite the increased revenue, net income was down from $59.0 million a year ago to $12.5 million. But that's due in large part to $78.4 million in litigation proceeds.
TiVo is charging into streaming TV with TiVo Mini and Stream, opening up options for consumers. As TiVo expands partnerships around the world, it will be able to leverage these products and continue to grow.
The challenge for TiVo comes when cord-cutting becomes a more viable option, so innovation is key to staying relevant in the future. With progress like this and new products from TiVo, the foundation is being laid to become a long-term player in streaming media. This quarter was a big step in bringing that foundation to bottom-line profits.
Fool contributor Travis Hoium and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.