22:36:27 EDT Sun 19 May 2024
Enter Symbol
or Name
USA
CA



Impinj Reports First Quarter 2023 Financial Results

2023-04-26 16:15 ET - News Release


Company Website: https://www.impinj.com
SEATTLE -- (Business Wire)

Impinj, Inc. (NASDAQ: PI), a leading provider and pioneer of RAIN RFID solutions, today released its financial results for the first quarter ended March 31, 2023.

“Our first-quarter results were solid, with record revenue and a very strong multi-quarter endpoint IC backlog,” said Chris Diorio, Impinj co-founder and CEO. “With confidence in our platform solutions and the secular market growth, we are well positioned to capitalize on our opportunity.”

First Quarter 2023 Financial Summary

  • Revenue of $85.9 million
  • GAAP gross margin of 50.7%; non-GAAP gross margin of 52.4%
  • GAAP net loss of $4.4 million, or loss of $(0.17) per diluted share using 26.3 million shares
  • Adjusted EBITDA of $8.6 million
  • Non-GAAP net income of $8.7 million, or income of $0.30 per diluted share using 28.6 million shares

A reconciliation between GAAP and non-GAAP information is contained in the tables below. Additionally, descriptions of these non-GAAP financial measures are provided in the “Non-GAAP Financial Measures” sections below.

Second Quarter 2023 Financial Outlook

Impinj provides guidance based on current market conditions and expectations; actual results may differ materially. Please refer to the comments below regarding forward-looking statements. The following table presents Impinj’s financial outlook for the second quarter of 2023 (in millions, except per share data):

 

 

Three Months Ending

 

 

June 30, 2023

Revenue

 

$84.0 to $87.0

GAAP Net loss

 

($6.8) to ($5.3)

Adjusted EBITDA income

 

$8.8 to $10.3

GAAP Weighted-average shares — basic and diluted

 

26.60 to 26.80

GAAP Net loss per share — basic and diluted

 

($0.25) to ($0.20)

Non-GAAP Net income

 

$8.2 to $9.7

Non-GAAP Weighted-average shares — basic

 

26.60 to 26.80

Non-GAAP Weighted-average shares — diluted

 

28.80 to 29.00

Non-GAAP Net income per share — basic

 

$0.31 to $0.36

Non-GAAP Net income per share — diluted

 

$0.28 to $0.33

A reconciliation between GAAP and non-GAAP is provided in the "Non-GAAP Financial Measures" section below.

Conference Call Information

Impinj will host a conference call today, April 26, 2023 at 5:00 p.m. ET / 2:00 p.m. PT to discuss its first-quarter 2023 results, as well as its outlook for its second-quarter 2023. Interested parties may access the call by dialing +1-412-317-5196. A live webcast and replay will also be available on the company’s website at investor.impinj.com. Following the call, a telephonic replay will be available for five business days and may be accessed by dialing +1-412-317-0088 and entering passcode 1025662.

Management’s prepared written remarks, along with quarterly financial data, will be made available on the company’s website at investor.impinj.com along with this release.

Impinj Investor Day 2023

Impinj will host an Investor Day on June 13, 2023, beginning at 4:30 p.m. ET / 1:30 p.m. PT. A live audio webcast and replay of the presentations with slides will be available on the company’s website at investor.impinj.com. Due to limited space, in-person attendance is by invitation only.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding our strategy, investment plans and prospects, as well as financial considerations for the second quarter of 2023 and future periods.

Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance.

The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption "Risk Factors" and elsewhere in our annual report on Form 10-K and quarterly reports on Form 10-Q filed with the U.S. Securities and Exchange Commission. All information provided in this release and in the attachments is as of the date hereof, and we undertake no duty to update this information unless required by law.

About Impinj

Impinj (NASDAQ: PI) helps businesses and people analyze, optimize, and innovate by wirelessly connecting billions of everyday things — such as apparel, automobile parts, luggage, and shipments — to the Internet. The Impinj platform uses RAIN RFID to deliver timely data about these everyday things to business and consumer applications, enabling a boundless Internet of Things. www.impinj.com

Impinj is a registered trademark of Impinj, Inc. All other trademarks are the property of their owners.

IMPINJ, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except par value, unaudited)

 

 

March 31, 2023

 

 

December 31, 2022

 

Assets:

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

$

37,483

 

 

$

19,597

 

Short-term investments

 

117,061

 

 

 

154,148

 

Accounts receivable, net

 

60,966

 

 

 

49,996

 

Inventory

 

85,809

 

 

 

46,397

 

Prepaid expenses and other current assets

 

3,835

 

 

 

5,032

 

Total current assets

 

305,154

 

 

 

275,170

 

Long-term investments

 

10,177

 

 

 

19,200

 

Property and equipment, net

 

41,800

 

 

 

39,027

 

Operating lease right-of-use assets

 

9,795

 

 

 

10,490

 

Other non-current assets

 

1,844

 

 

 

1,969

 

Goodwill

 

3,881

 

 

 

3,881

 

Total assets

$

372,651

 

 

$

349,737

 

Liabilities and stockholders' equity (deficit):

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

$

36,713

 

 

$

25,024

 

Accrued compensation and employee related benefits

 

7,042

 

 

 

9,048

 

Accrued and other current liabilities

 

7,381

 

 

 

2,925

 

Current portion of operating lease liabilities

 

2,966

 

 

 

3,122

 

Current portion of deferred revenue

 

502

 

 

 

2,250

 

Total current liabilities

 

54,604

 

 

 

42,369

 

Long-term debt, net of current portion

 

280,644

 

 

 

280,244

 

Operating lease liabilities, net of current portion

 

10,331

 

 

 

11,066

 

Other long-term liabilities

 

134

 

 

 

118

 

Deferred revenue, net of current portion

 

317

 

 

 

349

 

Total liabilities

 

346,030

 

 

 

334,146

 

Stockholders' equity:

 

 

 

 

 

Common stock, $0.001 par value

 

27

 

 

 

26

 

Additional paid-in capital

 

418,342

 

 

 

403,599

 

Accumulated other comprehensive loss

 

(605

)

 

 

(1,249

)

Accumulated deficit

 

(391,143

)

 

 

(386,785

)

Total stockholders' equity

 

26,621

 

 

 

15,591

 

Total liabilities and stockholders' equity (deficit)

$

372,651

 

 

$

349,737

 

IMPINJ, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data, unaudited)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2023

 

 

2022

 

Revenue

 

$

85,897

 

 

$

53,144

 

Cost of revenue

 

 

42,367

 

 

 

24,365

 

Gross profit

 

 

43,530

 

 

 

28,779

 

Operating expenses:

 

 

 

 

 

 

Research and development

 

 

22,435

 

 

 

17,989

 

Sales and marketing

 

 

9,973

 

 

 

9,299

 

General and administrative

 

 

15,564

 

 

 

10,806

 

Total operating expenses

 

 

47,972

 

 

 

38,094

 

Income (loss) from operations

 

 

(4,442

)

 

 

(9,315

)

Other income, net

 

 

1,365

 

 

 

164

 

Interest expense

 

 

(1,209

)

 

 

(1,261

)

Loss before income taxes

 

 

(4,286

)

 

 

(10,412

)

Income tax expense

 

 

(72

)

 

 

(49

)

Net loss

 

$

(4,358

)

 

$

(10,461

)

Net loss per share — basic and diluted

 

$

(0.17

)

 

$

(0.42

)

Weighted-average shares — basic and diluted

 

 

26,285

 

 

 

24,980

 

IMPINJ, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, unaudited)

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2023

 

 

2022

 

Operating activities:

 

 

 

 

 

 

Net loss

 

$

(4,358

)

 

$

(10,461

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation

 

 

1,793

 

 

 

1,508

 

Stock-based compensation

 

 

10,224

 

 

 

11,314

 

Accretion of discount or amortization of premium on investments

 

 

(766

)

 

 

301

 

Amortization of debt issuance costs

 

 

400

 

 

 

403

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(10,970

)

 

 

(3,084

)

Inventory

 

 

(39,412

)

 

 

(9,603

)

Prepaid expenses and other assets

 

 

1,389

 

 

 

(2,142

)

Accounts payable

 

 

14,650

 

 

 

(2,768

)

Accrued compensation and employee related benefits

 

 

(2,006

)

 

 

(1,775

)

Accrued and other liabilities

 

 

4,472

 

 

 

1,242

 

Operating lease right-of-use assets

 

 

695

 

 

 

804

 

Operating lease liabilities

 

 

(891

)

 

 

(1,008

)

Deferred revenue

 

 

(1,780

)

 

 

433

 

Net cash used in operating activities

 

 

(26,560

)

 

 

(14,836

)

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

Purchases of investments

 

 

 

 

 

(67,085

)

Proceeds from sales of investments

 

 

13,372

 

 

 

 

Proceeds from maturities of investments

 

 

34,136

 

 

 

20,000

 

Purchases of property and equipment

 

 

(7,582

)

 

 

(3,050

)

Net cash provided by (used in) investing activities

 

 

39,926

 

 

 

(50,135

)

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

Proceeds from exercise of stock options and employee stock purchase plan

 

 

4,520

 

 

 

4,611

 

Net cash provided by financing activities

 

 

4,520

 

 

 

4,611

 

Net increase (decrease) in cash and cash equivalents

 

 

17,886

 

 

 

(60,360

)

Cash and cash equivalents

 

 

 

 

 

 

Beginning of period

 

 

19,597

 

 

 

123,903

 

End of period

 

$

37,483

 

 

$

63,543

 

Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements prepared and presented in accordance with U.S. generally accepted accounting principles, or GAAP, our key non-GAAP performance measures include adjusted EBITDA and non-GAAP net income (loss), as defined below. We use adjusted EBITDA and non-GAAP net income (loss) as key measures to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operating plans. We believe these measures provide useful information for period-to-period comparisons of our business to allow investors and others to understand and evaluate our operating results in the same manner as our management and board of directors. Our presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP, and our non-GAAP measures may be different from similarly termed non-GAAP measures used by other companies.

Adjusted EBITDA

We define adjusted EBITDA as net income (loss) determined in accordance with GAAP, excluding, if applicable for the periods presented, the effects of stock-based compensation; depreciation; restructuring costs; settlement and related costs; induced conversion expense; other income, net; interest expense; loss on debt extinguishment; income tax benefit (expense); and acquisition transaction expense. During the first quarter of 2023, we revised our definition of adjusted EBITDA to exclude acquisition transaction expenses in connection with our Voyantic Oy acquisition. We have excluded these costs and expenses because we do not believe they reflect our core operations and us excluding them enables more consistent evaluation of our operating performance. The revision to our definition of adjusted EBITDA did not impact adjusted EBITDA for any previously reported periods because there was no impact of a similar nature in such prior periods affecting comparability.

Non-GAAP Net Income (Loss)

We define non-GAAP net income (loss) as net income (loss), excluding, if applicable for the periods presented, the effects of stock-based compensation; depreciation; restructuring costs; settlement and related costs; amortization of debt discount related to the equity component of our convertible notes; and prepayment penalty on debt extinguishment. During the first quarter of 2023, we revised our definition of non-GAAP net income (loss) to exclude acquisition transaction expenses in connection with our Voyantic Oy acquisition.

GAAP requires that certain convertible debt instruments that may be settled in cash on conversion be accounted for as separate liability and equity components in a manner that reflects our non-convertible debt borrowing rate. This accounting results in the debt component being treated as though it was issued at a discount, with the debt discount being amortized as additional non-cash interest expense over the debt instrument term using the effective interest method. As a result, we believe that excluding this non-cash interest expense attributable to the debt discount in calculating our non-GAAP net income (loss) is useful because this interest expense is not indicative of our ongoing operational performance.

IMPINJ, INC.

RECONCILIATIONS OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES

(in thousands, except percentages, unaudited)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2023

 

 

2022

 

GAAP Gross margin

 

 

50.7

%

 

 

54.2

%

Adjustments:

 

 

 

 

 

 

Depreciation

 

 

1.2

%

 

 

1.7

%

Stock-based compensation

 

 

0.5

%

 

 

1.1

%

Non-GAAP Gross margin

 

 

52.4

%

 

 

57.0

%

 

 

 

 

 

 

 

GAAP Net loss

 

$

(4,358

)

 

$

(10,461

)

Adjustments:

 

 

 

 

 

 

Depreciation

 

 

1,793

 

 

 

1,508

 

Stock-based compensation

 

 

10,224

 

 

 

11,314

 

Other income, net

 

 

(1,365

)

 

 

(164

)

Interest expense

 

 

1,209

 

 

 

1,261

 

Income tax expense

 

 

72

 

 

 

49

 

Acquisition transaction expense

 

 

1,042

 

 

 

 

Adjusted EBITDA

 

$

8,617

 

 

$

3,507

 

 

 

 

 

 

 

 

GAAP Net loss

 

$

(4,358

)

 

$

(10,461

)

Adjustments:

 

 

 

 

 

 

Depreciation

 

 

1,793

 

 

 

1,508

 

Stock-based compensation

 

 

10,224

 

 

 

11,314

 

Acquisition transaction expense

 

 

1,042

 

 

 

 

Non-GAAP Net income

 

$

8,701

 

 

$

2,361

 

Non-GAAP Net income per share:

 

 

 

 

 

 

Basic

 

$

0.33

 

 

$

0.09

 

Diluted

 

$

0.30

 

 

$

0.09

 

 

 

 

 

 

 

 

GAAP Weighted-average shares — diluted

 

 

26,285

 

 

 

24,980

 

Dilutive shares from stock plans

 

 

2,268

 

 

 

2,001

 

Non-GAAP Weighted-average shares — diluted

 

 

28,553

 

 

 

26,981

 

IMPINJ, INC.

RECONCILIATIONS OF GAAP FINANCIAL OUTLOOK TO NON-GAAP FINANCIAL OUTLOOK

(in thousands, except per share data, unaudited – calculated at the midpoint of the outlook range)

 

 

 

 

 

 

Three Months Ending

 

 

 

June 30,

 

 

 

2023

 

GAAP Net loss

 

$

(6,010

)

Adjustments:

 

 

 

Forecasted Depreciation

 

 

1,930

 

Forecasted Stock-based compensation

 

 

13,060

 

Forecasted Interest expense

 

 

1,260

 

Forecasted Other income, net

 

 

(750

)

Forecasted Income tax expense

 

 

60

 

Adjusted EBITDA

 

$

9,550

 

 

 

 

 

GAAP Net loss

 

$

(6,010

)

Adjustments:

 

 

 

Forecasted Depreciation

 

 

1,930

 

Forecasted Stock-based compensation

 

 

13,060

 

Non-GAAP Net income

 

$

8,980

 

 

 

 

 

GAAP Net loss per share — basic and diluted

 

$

(0.23

)

Non-GAAP Net income per share

 

 

 

Basic

 

$

0.34

 

Diluted

 

$

0.31

 

 

 

 

 

GAAP weighted-average shares — basic and diluted

 

 

26,700

 

 

 

 

 

Non-GAAP weighted-average shares — basic

 

 

26,700

 

Dilutive shares from stock plans

 

 

2,200

 

Non-GAAP weighted-average shares — diluted

 

 

28,900

 

 

Contacts:

Investor Relations
Andy Cobb, CFA
Vice President, Strategic Finance
+1-206-315-4470
ir@impinj.com

Media Relations
Jill West
Vice President, Strategic Communications
+1 206-834-1110
jwest@impinj.com

Source: Impinj, Inc.

© 2024 Canjex Publishing Ltd. All rights reserved.