Impinj, Inc. (NASDAQ: PI), a leading RAIN RFID provider and
Internet of Things pioneer, today released its financial results
for the second quarter ended June 30, 2024.
“Our second-quarter results were strong, setting several new
records,” said Chris Diorio, Impinj co-founder and CEO. “Revenue
topped $100 million and adjusted EBITDA topped $25 million, both
well above our guidance. Free cash flow topped $40 million. As we
continue driving our bold vision to connect every item in our
everyday world, I remain confident in our market position and
energized by the opportunities ahead.”
Second Quarter 2024 Financial Summary
- Revenue of $102.5 million
- GAAP gross margin of 56.1%; non-GAAP gross margin of 58.2%
- GAAP net income of $10.0 million, or income of $0.34 per
diluted share using 29.4 million shares
- Adjusted EBITDA of $26.8 million
- Non-GAAP net income of $25.3 million, or income of $0.83 per
diluted share using 32.0 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.
Third Quarter 2024 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 third
quarter of 2024 (in millions, except per share data):
Three Months Ending
September 30, 2024
Revenue
$91.0 to $94.0
GAAP Net loss
($3.5) to ($2.0)
Adjusted EBITDA income
$13.8 to $15.3
GAAP Weighted-average shares — diluted
28.2 to 28.4
GAAP Net loss per share — diluted
($0.12) to ($0.07)
Non-GAAP Net income
$13.5 to $15.0
Non-GAAP Weighted-average shares —
diluted(1)
32.1 to 32.3
Non-GAAP Net income per share —
diluted(1)
$0.46 to $0.50
(1) Non-GAAP diluted net income per share
includes the impact of our convertible debt using the if-converted
method, which assumes full share settlement. Interest expense is
added back to net income and weighted average shares includes total
shares issuable at conversion of 2.6 million.
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, July 24, 2024 at 5:00
p.m. ET / 2:00 p.m. PT to discuss its second-quarter 2024 results,
as well as its outlook for its third-quarter 2024. Interested
parties may access the call by dialing +1-412-317-1863. 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 2945814.
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 third quarter of 2024
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)
June 30, 2024
December 31, 2023
Assets:
Current assets:
Cash and cash equivalents
$
214,653
$
94,793
Short-term investments
5,563
18,440
Accounts receivable, net
54,181
54,919
Inventory
80,773
97,172
Prepaid expenses and other current
assets
3,148
4,372
Total current assets
358,318
269,696
Property and equipment, net
47,209
44,891
Intangible assets, net
11,645
13,913
Operating lease right-of-use assets
8,424
9,735
Other non-current assets
1,235
1,478
Goodwill
19,256
19,696
Total assets
$
446,087
$
359,409
Liabilities and stockholders'
equity:
Current liabilities:
Accounts payable
$
15,305
$
8,661
Accrued compensation and employee related
benefits
12,549
8,519
Accrued and other current liabilities
2,848
8,614
Current portion of operating lease
liabilities
3,462
3,373
Current portion of long-term debt
282,671
—
Current portion of deferred revenue
2,087
1,713
Total current liabilities
318,922
30,880
Long-term debt
—
281,855
Operating lease liabilities, net of
current portion
7,546
9,360
Deferred tax liabilities, net
2,466
2,911
Deferred revenue, net of current
portion
181
272
Total liabilities
329,115
325,278
Stockholders' equity:
Common stock, $0.001 par value
28
27
Additional paid-in capital
504,206
463,900
Accumulated other comprehensive income
(loss)
(418
)
355
Accumulated deficit
(386,844
)
(430,151
)
Total stockholders' equity
116,972
34,131
Total liabilities and stockholders'
equity
$
446,087
$
359,409
IMPINJ, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except per
share data, unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2024
2023
2024
2023
Revenue
$
102,495
$
85,986
$
179,320
$
171,883
Cost of revenue
44,979
42,172
84,256
84,539
Gross profit
57,516
43,814
95,064
87,344
Operating expenses:
Research and development
24,924
23,403
47,443
45,838
Sales and marketing
9,827
10,632
20,003
20,605
General and administrative
13,223
16,002
26,588
31,566
Amortization of intangibles
496
2,146
1,905
2,146
Restructuring costs
—
—
1,812
—
Total operating expenses
48,470
52,183
97,751
100,155
Income (loss) from operations
9,046
(8,369
)
(2,687
)
(12,811
)
Other income, net
2,122
1,165
3,414
2,530
Income from settlement of litigation
—
—
45,000
—
Interest expense
(1,217
)
(1,211
)
(2,433
)
(2,420
)
Income (loss) before income taxes
9,951
(8,415
)
43,294
(12,701
)
Income tax benefit
12
349
13
277
Net income (loss) per share attributable
to common stockholders:
$
9,963
$
(8,066
)
$
43,307
$
(12,424
)
Net income (loss) per share — basic
$
0.36
$
(0.30
)
$
1.57
$
(0.47
)
Net income (loss) per share — diluted
$
0.34
$
(0.30
)
$
1.44
(1
)
$
(0.47
)
Weighted-average shares outstanding —
basic
27,889
26,713
27,623
26,499
Weighted-average shares outstanding —
diluted
29,422
26,713
31,718
(1
)
26,499
(1) Diluted net income per share includes
the impact of our convertible debt using the if-converted method,
which assumes full share settlement. Interest expense is added back
to net income and weighted average shares includes total shares
issuable at conversion of 2.6 million.
IMPINJ, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands,
unaudited)
Six Months Ended
June 30,
2024
2023
Operating activities:
Net income (loss)
$
43,307
$
(12,424
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
6,908
6,066
Stock-based compensation
26,495
23,372
Restructuring equity modification
expense
366
—
Accretion of discount or amortization of
premium on investments
(109
)
(1,285
)
Amortization of debt issuance costs
815
802
Deferred tax expense
(372
)
(399
)
Revaluation of acquisition-related
contingent consideration liability
986
—
Changes in operating assets and
liabilities, net of amounts acquired:
Accounts receivable
699
(7,755
)
Inventory
16,378
(64,733
)
Prepaid expenses and other assets
1,461
2,277
Accounts payable
6,996
6,113
Accrued compensation and employee related
benefits
4,056
(1,879
)
Accrued and other liabilities
290
2,043
Acquisition-related contingent
consideration liability
(2,556
)
—
Operating lease right-of-use assets
1,293
1,331
Operating lease liabilities
(1,706
)
(1,661
)
Deferred revenue
312
(972
)
Net cash provided by (used in) operating
activities
105,619
(49,104
)
Investing activities:
Proceeds from sales of investments
—
13,372
Proceeds from maturities of
investments
13,033
92,424
Business acquisitions, net of cash
acquired
—
(23,357
)
Purchases of intangible assets
—
(250
)
Purchases of property and equipment
(7,568
)
(13,198
)
Net cash provided by investing
activities
5,465
68,991
Financing activities:
Proceeds from exercise of stock options
and employee stock purchase plan
13,446
5,753
Payment of acquisition-related contingent
consideration
(4,602
)
—
Net cash provided by financing
activities
8,844
5,753
Effect of exchange rate changes on cash
and cash equivalents
(68
)
7
Net increase in cash and cash
equivalents
119,860
25,647
Cash and cash equivalents
Beginning of period
94,793
19,597
End of period
$
214,653
$
45,244
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, non-GAAP net income (loss), free
cash flow and adjusted free cash flow 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 use free cash flow and adjusted free
cash flow as key measures when assessing our sources of liquidity,
capital resources, and quality of earnings. 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
and amortization; restructuring costs; settlement income and
related costs; induced conversion expense; other income, net;
interest expense; acquisition related expense and related purchase
accounting adjustments; and income tax benefit (expense). During
the year ended December 31, 2023, we revised our definition of
adjusted EBITDA to exclude acquisition related expenses, related
purchase accounting adjustments, and amortization of intangibles in
connection with our Voyantic Oy acquisition. During the three
months ended March 31, 2024, we further revised our definition of
adjusted EBITDA to exclude settlement income. We have excluded
these items 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 as net income (loss), excluding,
if applicable for the periods presented, the effects of stock-based
compensation; depreciation and amortization; restructuring costs;
settlement income and related costs; induced conversion expense;
acquisition related expense and related purchase accounting
adjustments; and the corresponding income tax impacts of
adjustments to net income (loss).
During the year ended December 31, 2023, we revised our
definition of non-GAAP net income to adjust for acquisition related
expenses, related purchase accounting adjustments, and amortization
of intangibles in connection with our Voyantic Oy acquisition.
During the three months ended March 31, 2024, we further revised
our definition of non-GAAP net income to exclude settlement income.
The revisions to our definition of non-GAAP net income did not
impact non-GAAP net income for any previously reported periods
because there was no impact of a similar nature in such prior
periods affecting comparability.
Additionally, during the year ended December 31, 2023, we
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.
Free cash flow
We define free cash flow as net cash provided by (used in)
operating activities, determined in accordance with GAAP, less
purchases of property and equipment. We define adjusted free cash
flow as free cash flow less cash received from gain on litigation
settlement.
IMPINJ, INC.
RECONCILIATIONS OF GAAP
FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES
(in thousands, except
percentages, unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2024
2023
2024
2023
GAAP Gross margin
56.1
%
51.0
%
53.0
%
50.8
%
Adjustments:
Depreciation and amortization
1.6
%
1.5
%
1.7
%
1.3
%
Purchase accounting adjustments
0.0
%
0.3
%
0.0
%
0.2
%
Stock-based compensation
0.5
%
0.5
%
0.6
%
0.5
%
Non-GAAP Gross margin
58.2
%
53.3
%
55.3
%
52.8
%
GAAP Net income (loss)
$
9,963
$
(8,066
)
$
43,307
$
(12,424
)
Adjustments:
Depreciation and amortization
2,999
4,273
6,908
6,066
Stock-based compensation
14,705
13,148
26,495
23,372
Restructuring costs
—
—
1,812
—
Acquisition related expenses
79
630
986
1,672
Purchase accounting adjustments
—
276
—
276
Other income, net
(2,122
)
(1,165
)
(3,414
)
(2,530
)
Income from settlement of litigation
—
—
(45,000
)
—
Interest expense
1,217
1,211
2,433
2,420
Income tax expense (benefit)
(12
)
(349
)
(13
)
(277
)
Adjusted EBITDA
$
26,829
$
9,958
$
33,514
$
18,575
GAAP Net income (loss)
$
9,963
$
(8,066
)
$
43,307
$
(12,424
)
Adjustments:
Depreciation and amortization
2,999
4,273
6,908
6,066
Stock-based compensation
14,705
13,148
26,495
23,372
Restructuring costs
—
—
1,812
—
Acquisition transaction expenses
79
630
986
1,672
Purchase accounting adjustments
—
276
—
276
Income from settlement of litigation
—
—
(45,000
)
—
Income tax effects of adjustments (1)
(2,433
)
(965
)
(3,024
)
(1,783
)
Non-GAAP Net income
$
25,313
$
9,296
$
31,484
$
17,179
Non-GAAP Net income per share —
diluted
$
0.83
(2
)
$
0.33
$
1.07
(2
)
$
0.60
GAAP Weighted-average shares — diluted
29,422
26,713
31,718
(3
)
26,499
Dilutive shares from stock plans
—
1,809
—
2,039
Dilutive shares from convertible debt
2,589
—
—
—
Non-GAAP Weighted-average shares —
diluted
32,011
(2
)
28,522
31,718
(2
)
28,538
(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.
(2) Diluted net income per share includes
the impact of our convertible debt using the if-converted method,
which assumes full share settlement. Interest expense is added back
to net income and weighted average shares includes total shares
issuable at conversion of 2.6 million.
(3) GAAP weighted average shares — diluted
includes the dilutive effect of convertible debt.
IMPINJ, INC.
RECONCILIATIONS OF GAAP
FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES
(in thousands, except
percentages, unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2024
2023
2024
2023
GAAP Net cash provided by (used in)
operating activities
$
45,479
$
(22,544
)
$
105,619
$
(49,104
)
Adjustments:
Purchases of property and equipment
(1,366
)
(5,616
)
(7,568
)
(13,198
)
Free cash flow
$
44,113
$
(28,160
)
$
98,051
$
(62,302
)
Adjustments:
Income from settlement of litigation
—
—
(45,000
)
—
Adjusted free cash flow
$
44,113
$
(28,160
)
$
53,051
$
(62,302
)
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
September 30,
2024
GAAP Net loss
$
(2,714
)
Adjustments:
Forecasted Depreciation and
amortization
3,250
Forecasted Stock-based compensation
15,049
Forecasted Interest expense
1,215
Forecasted Other income, net
(2,300
)
Forecasted Income tax expense
—
Adjusted EBITDA
$
14,500
GAAP Net loss
$
(2,714
)
Adjustments:
Forecasted Depreciation and
amortization
3,250
Forecasted Stock-based compensation
15,049
Forecasted Income tax effects of
adjustments
(1,361
)
Non-GAAP Net income
$
14,224
GAAP Net loss per share — diluted
$
(0.10
)
Non-GAAP Net income per share —
diluted(1)
$
0.48
GAAP weighted-average shares — diluted
28,300
Dilutive shares
3,900
Non-GAAP weighted-average shares —
diluted(1)
32,200
(1) Non-GAAP diluted net income per share
includes the impact of our convertible debt using the if-converted
method, which assumes full share settlement. Interest expense is
added back to net income and weighted average shares includes total
shares issuable at conversion of 2.6 million.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240724658547/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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