Impinj, Inc. (NASDAQ: PI), a leading RAIN RFID provider and
Internet of Things pioneer, today released its financial results
for the third quarter ended September 30, 2023.
“Third-quarter results were solid, with profitability exceeding
our expectations,” said Chris Diorio, Impinj co-founder and CEO.
“While macroeconomic pressures continue to impact our
fourth-quarter outlook, we believe our long-term opportunity
remains intact. We see early signs of retail demand improvement,
strong ongoing endpoint IC unit-volume growth despite the downturn
and remain optimistic for the future.”
Third Quarter 2023 Financial Summary
- Revenue of $65.0 million
- GAAP gross margin of 47.3%; non-GAAP gross margin of 50.5%
- GAAP net loss of $15.8 million, or loss of $(0.59) per diluted
share using 26.9 million shares
- Adjusted EBITDA of $0.3 million
- Non-GAAP net income of $0.1 million, or income of $0.00 per
diluted share using 28.1 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.
Fourth 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 fourth
quarter of 2023 (in millions, except per share data):
Three Months Ending
December 31, 2023
Revenue
$65.5 to $68.5
GAAP Net loss
($17.0) to ($15.5)
Adjusted EBITDA income (loss)
($0.9 ) to $0.7
GAAP Weighted-average shares — basic and
diluted
27.00 to 27.20
GAAP Net loss per share — basic and
diluted
($0.63 ) to ($0.57 )
Non-GAAP Net income (loss)
($1.2 ) to $0.3
Non-GAAP Weighted-average shares —
basic
27.00 to 27.20
Non-GAAP Weighted-average shares —
diluted
27.00 to 28.10
Non-GAAP Net income (loss) per share —
basic and diluted
($0.04) to $0.01
A reconciliation between GAAP and non-GAAP financial measures is
provided in the "Non-GAAP Financial Measures" section below.
Conference Call Information
Impinj will host a conference call today, October 25, 2023 at
5:00 p.m. ET / 2:00 p.m. PT to discuss its third-quarter 2023
results, as well as its outlook for its fourth-quarter 2023.
Interested parties may access the call by dialing +1-412-317-6789.
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 8377826.
Management’s prepared written remarks, along with quarterly
financial data, will be made available on Impinj’s website at
investor.impinj.com along with this release.
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, statements regarding conditions in the markets
in which we compete as well as the broader economy, and our
financial guidance and considerations for the fourth 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)
September 30, 2023
December 31, 2022
Assets:
Current assets:
Cash and cash equivalents
$
78,100
$
19,597
Short-term investments
35,129
154,148
Accounts receivable, net
48,482
49,996
Inventory
106,806
46,397
Prepaid expenses and other current
assets
4,446
5,032
Total current assets
272,963
275,170
Long-term investments
—
19,200
Property and equipment, net
44,923
39,027
Intangible assets, net
14,727
—
Operating lease right-of-use assets
10,326
10,490
Other non-current assets
1,613
1,969
Goodwill
19,049
3,881
Total assets
$
363,601
$
349,737
Liabilities and stockholders'
equity:
Current liabilities:
Accounts payable
$
11,017
$
25,024
Accrued compensation and employee related
benefits
7,702
9,048
Accrued and other current liabilities
9,306
2,925
Current portion of operating lease
liabilities
3,308
3,122
Current portion of deferred revenue
2,425
2,250
Total current liabilities
33,758
42,369
Long-term debt
281,449
280,244
Operating lease liabilities, net of
current portion
10,205
11,066
Deferred tax liabilities, net
3,062
118
Deferred revenue, net of current
portion
327
349
Total liabilities
328,801
334,146
Stockholders' equity:
Common stock, $0.001 par value
27
26
Additional paid-in capital
450,746
403,599
Accumulated other comprehensive loss
(1,002
)
(1,249
)
Accumulated deficit
(414,971
)
(386,785
)
Total stockholders' equity
34,800
15,591
Total liabilities and stockholders'
equity
$
363,601
$
349,737
IMPINJ, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except per
share data, unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2023
2022
2023
2022
Revenue
$
65,005
$
68,270
$
236,888
$
181,210
Cost of revenue
34,237
30,835
118,776
83,494
Gross profit
30,768
37,435
118,112
97,716
Operating expenses:
Research and development
21,588
18,766
67,426
55,124
Sales and marketing
10,073
9,326
30,678
28,239
General and administrative
13,532
11,087
45,098
33,888
Amortization of intangibles
1,409
—
3,555
—
Total operating expenses
46,602
39,179
146,757
117,251
Loss from operations
(15,834
)
(1,744
)
(28,645
)
(19,535
)
Other income, net
1,090
774
3,620
1,367
Induced conversion expense
—
—
—
(2,232
)
Interest expense
(1,213
)
(1,205
)
(3,633
)
(3,716
)
Loss before income taxes
(15,957
)
(2,175
)
(28,658
)
(24,116
)
Income tax benefit (expense)
195
(24
)
472
(67
)
Net loss
$
(15,762
)
$
(2,199
)
$
(28,186
)
$
(24,183
)
Net loss per share — basic and diluted
$
(0.59
)
$
(0.09
)
$
(1.06
)
$
(0.95
)
Weighted-average shares — basic and
diluted
26,920
25,743
26,639
25,384
IMPINJ, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands,
unaudited)
Nine Months Ended
September 30,
2023
2022
Operating activities:
Net loss
$
(28,186
)
$
(24,183
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
9,733
4,456
Stock-based compensation
35,679
32,230
Accretion of discount or amortization of
premium on investments
(1,600
)
301
Amortization of debt issuance costs
1,206
1,203
Induced conversion expense related to
convertible notes
—
2,232
Deferred tax expense
(662
)
—
Changes in operating assets and
liabilities, net of amounts acquired:
Accounts receivable
2,683
(5,218
)
Inventory
(59,239
)
(9,967
)
Prepaid expenses and other assets
1,407
45
Accounts payable
(10,054
)
1,107
Accrued compensation and employee related
benefits
(1,904
)
1,571
Accrued and other liabilities
1,677
1,252
Operating lease right-of-use assets
1,990
2,490
Operating lease liabilities
(2,501
)
(3,064
)
Deferred revenue
(1,038
)
2,358
Net cash provided by (used in) operating
activities
(50,809
)
6,813
Investing activities:
Purchases of investments
—
(159,837
)
Proceeds from sales of investments
13,372
—
Proceeds from maturities of
investments
127,449
79,508
Purchases of intangible assets
(250
)
—
Proceeds from sale of property and
equipment
234
—
Purchases of property and equipment
(15,968
)
(5,975
)
Business acquisitions, net of cash
acquired
(23,357
)
—
Net cash provided by (used in) investing
activities
124,837
(86,304
)
Financing activities:
Proceeds from exercise of stock options
and employee stock purchase plan
7,890
12,462
Payment of 2019 Notes
—
(17,564
)
Net cash provided by (used in) financing
activities
7,890
(5,102
)
Effect of exchange rate changes on cash
and cash equivalents
(58
)
—
Net increase (decrease) in cash and cash
equivalents
81,860
(84,593
)
Cash and cash equivalents
Beginning of period
19,597
123,903
End of period
$
101,457
$
39,310
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 and related purchase accounting adjustments.
During the first quarter of 2023, we revised our definition of
adjusted EBITDA to exclude acquisition transaction expenses and
related purchase accounting adjustments 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),
adjusted for, if applicable for the periods presented, the effects
of stock-based compensation; depreciation; restructuring costs;
settlement and related costs; induced conversion expense;
amortization of debt discount related to the equity component of
our convertible notes; prepayment penalty on debt extinguishment;
acquisition transaction expense; and the corresponding income tax
impacts of adjustments to net income (loss). During the first
quarter of 2023, we revised our definition of non-GAAP net income
(loss) to adjust for acquisition transaction expenses and related
purchase accounting adjustments in connection with our Voyantic Oy
acquisition. Excluding acquisition transaction expenses and related
purchase accounting adjustments did not impact the non-GAAP net
income (loss) previously reported for periods preceding the
revision.
During the second quarter of 2023, we further revised our
definition of non-GAAP net income (loss) to adjust for income tax
effects of adjustments to net income (loss), calculated at the
statutory rate for current and historical periods. We have revised
the prior period amounts to conform to our current period
presentation.
IMPINJ, INC.
RECONCILIATIONS OF GAAP
FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES
(in thousands, except
percentages, unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2023
2022
2023
2022
GAAP Gross margin
47.3
%
54.8
%
49.9
%
53.9
%
Adjustments:
Depreciation and amortization
2.2
%
1.4
%
1.5
%
1.5
%
Purchase accounting adjustments
0.2
%
0.0
%
0.2
%
0.0
%
Stock-based compensation
0.8
%
0.7
%
0.6
%
0.8
%
Non-GAAP Gross margin
50.5
%
56.9
%
52.2
%
56.2
%
GAAP Net loss
$
(15,762
)
$
(2,199
)
$
(28,186
)
$
(24,183
)
Adjustments:
Depreciation and amortization
3,668
1,483
9,734
4,456
Purchase accounting adjustments
112
—
388
—
Stock-based compensation
12,307
10,057
35,679
32,230
Other income, net
(1,090
)
(774
)
(3,620
)
(1,367
)
Interest expense
1,213
1,205
3,633
3,716
Income tax expense (benefit)
(195
)
24
(472
)
67
Induced conversion expense
—
—
—
2,232
Acquisition transaction expense
4
—
1,676
—
Adjusted EBITDA
$
257
$
9,796
$
18,832
$
17,151
GAAP Net loss
$
(15,762
)
$
(2,199
)
$
(28,186
)
$
(24,183
)
Adjustments:
Depreciation and amortization
3,668
1,483
9,734
4,456
Purchase accounting adjustments
112
—
388
—
Stock-based compensation
12,307
10,057
35,679
32,230
Induced conversion expense
—
—
—
2,232
Acquisition transaction expense
4
—
1,676
—
Income tax effects of adjustments (1)
(207
)
(878
)
(1,990
)
(1,385
)
Non-GAAP Net income
$
122
$
8,463
$
17,301
$
13,350
Non-GAAP Net income per share:
Basic
$
0.00
$
0.33
$
0.65
$
0.53
Diluted
$
0.00
$
0.31
$
0.61
$
0.49
GAAP Weighted-average shares — diluted
26,920
25,743
26,639
25,384
Dilutive shares from stock plans
1,196
1,930
1,758
1,699
Dilutive shares from 2021 Notes
—
—
—
—
Non-GAAP Weighted-average shares —
diluted
28,116
27,673
28,397
27,083
(1) The tax effects of the adjustments are
calculated using the statutory rate, taking into consideration the
nature of the item and relevant taxing jurisdictions.
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
December 31,
2023
GAAP Net loss
$
(16,250
)
Adjustments:
Forecasted Depreciation and
amortization
3,607
Forecasted Stock-based compensation
12,355
Forecasted Interest expense
1,258
Forecasted Other income, net
(850
)
Forecasted Income tax benefit
(220
)
Adjusted EBITDA
$
(100
)
GAAP Net loss
$
(16,250
)
Adjustments:
Forecasted Depreciation and
amortization
3,607
Forecasted Stock-based compensation
12,355
Forecasted Income tax effects of
adjustments
(172
)
Non-GAAP Net loss
$
(460
)
GAAP Net loss per share — basic and
diluted
$
(0.60
)
Non-GAAP Net loss per share — basic and
diluted
$
(0.02
)
GAAP weighted-average shares — basic and
diluted
27,100
Non-GAAP weighted-average shares — basic
and diluted
27,100
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231025595700/en/
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
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