Impinj, Inc. (NASDAQ: PI), a leading RAIN RFID provider and
Internet of Things pioneer, today released its financial results
for the first quarter ended March 31, 2024.
“2024 started strong, with revenue and profitability exceeding
both our fourth-quarter results and first-quarter guidance,” said
Chris Diorio, Impinj co-founder and CEO. “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.”
First Quarter 2024 Financial Summary
- Revenue of $76.8 million
- GAAP gross margin of 48.9%; non-GAAP gross margin of 51.5%
- GAAP net income of $33.3 million, or income of $1.10 per
diluted share using 31.4 million shares
- Adjusted EBITDA of $6.7 million
- Non-GAAP net income of $6.2 million, or income of $0.21 per
diluted share using 28.8 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 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 second
quarter of 2024 (in millions, except per share data):
Three Months Ending
June 30, 2024(1)
Revenue
$96.0 to $99.0
GAAP Net income
$5.9 to $7.4
Adjusted EBITDA income
$23.9 to $25.4
GAAP Weighted-average shares — diluted
29.0 to 29.4
GAAP Net income per share — diluted
$0.20 to $0.25
Non-GAAP Net income
$21.7 to $23.2
Non-GAAP Weighted-average shares —
diluted(2)
31.7 to 31.9
Non-GAAP Net income per share —
diluted(2)
$0.72 to $0.77
(1) The outlook for our revenue and related results for the
second quarter ended June 30, 2024 includes $15 million related to
recognition of an annual license fee for use of our intellectual
property. (2) 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, April 24, 2024 at 5:00
p.m. ET / 2:00 p.m. PT to discuss its first-quarter 2024 results,
as well as its outlook for its second-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 3992794.
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 second 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)
March 31, 2024
December 31, 2023
Assets:
Current assets:
Cash and cash equivalents
$
166,852
$
94,793
Short-term investments
7,292
18,440
Accounts receivable, net
59,384
54,919
Inventory
87,757
97,172
Prepaid expenses and other current
assets
3,120
4,372
Total current assets
324,405
269,696
Property and equipment, net
47,451
44,891
Intangible assets, net
12,207
13,913
Operating lease right-of-use assets
9,107
9,735
Other non-current assets
1,370
1,478
Goodwill
19,343
19,696
Total assets
$
413,883
$
359,409
Liabilities and stockholders'
equity:
Current liabilities:
Accounts payable
$
9,416
$
8,661
Accrued compensation and employee related
benefits
8,207
8,519
Accrued and other current liabilities
11,694
8,614
Current portion of operating lease
liabilities
3,454
3,373
Current portion of deferred revenue
1,672
1,713
Total current liabilities
34,443
30,880
Long-term debt
282,262
281,855
Operating lease liabilities, net of
current portion
8,444
9,360
Deferred tax liabilities, net
2,574
2,911
Deferred revenue, net of current
portion
237
272
Total liabilities
327,960
325,278
Stockholders' equity:
Common stock, $0.001 par value
28
27
Additional paid-in capital
482,972
463,900
Accumulated other comprehensive income
(loss)
(270
)
355
Accumulated deficit
(396,807
)
(430,151
)
Total stockholders' equity
85,923
34,131
Total liabilities and stockholders'
equity
$
413,883
$
359,409
IMPINJ, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except per
share data, unaudited)
Three Months Ended
March 31,
2024
2023
Revenue
$
76,825
$
85,897
Cost of revenue
39,277
42,367
Gross profit
37,548
43,530
Operating expenses:
Research and development
22,519
22,435
Sales and marketing
10,176
9,973
General and administrative
13,365
15,564
Amortization of intangibles
1,409
—
Restructuring costs
1,812
—
Total operating expenses
49,281
47,972
Income (loss) from operations
(11,733
)
(4,442
)
Other income, net
1,292
1,365
Income from settlement of litigation
45,000
—
Interest expense
(1,216
)
(1,209
)
Income (loss) before income taxes
33,343
(4,286
)
Income tax benefit (expense)
1
(72
)
Net income (loss) per share attributable
to common stockholders:
$
33,344
$
(4,358
)
Net income (loss) per share — basic
$
1.22
$
(0.17
)
Net income (loss) per share — diluted
$
1.10
(1
)
$
(0.17
)
Weighted-average shares outstanding —
basic
27,357
26,285
Weighted-average shares outstanding —
diluted
31,425
(1
)
26,285
(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)
Three Months Ended
March 31,
2024
2023
Operating activities:
Net income (loss)
$
33,344
$
(4,358
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
3,909
1,793
Stock-based compensation
11,790
10,224
Restructuring equity modification
expense
366
—
Accretion of discount or amortization of
premium on investments
(67
)
(766
)
Amortization of debt issuance costs
407
400
Deferred tax expense
(278
)
—
Revaluation of acquisition-related
contingent consideration liability
907
—
Changes in operating assets and
liabilities, net of amounts acquired:
Accounts receivable
(4,503
)
(10,970
)
Inventory
9,400
(39,412
)
Prepaid expenses and other assets
1,355
1,389
Accounts payable
1,878
14,650
Accrued compensation and employee related
benefits
(292
)
(2,006
)
Accrued and other liabilities
2,182
4,472
Operating lease right-of-use assets
614
695
Operating lease liabilities
(820
)
(891
)
Deferred revenue
(52
)
(1,780
)
Net cash provided by (used in) operating
activities
60,140
(26,560
)
Investing activities:
Proceeds from sales of investments
—
13,372
Proceeds from maturities of
investments
11,248
34,136
Purchases of property and equipment
(6,202
)
(7,582
)
Net cash provided by investing
activities
5,046
39,926
Financing activities:
Proceeds from exercise of stock options
and employee stock purchase plan
6,917
4,520
Net cash provided by financing
activities
6,917
4,520
Effect of exchange rate changes on cash
and cash equivalents
(44
)
—
Net increase in cash and cash
equivalents
72,059
17,886
Cash and cash equivalents
Beginning of period
94,793
19,597
End of period
$
166,852
$
37,483
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
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.
IMPINJ, INC.
RECONCILIATIONS OF GAAP
FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES
(in thousands, except
percentages, unaudited)
Three Months Ended
March 31,
2024
2023
GAAP Gross margin
48.9
%
50.7
%
Adjustments:
Depreciation and amortization
2.0
%
1.2
%
Purchase accounting adjustments
0.0
%
0.0
%
Stock-based compensation
0.6
%
0.5
%
Non-GAAP Gross margin
51.5
%
52.4
%
GAAP Net income (loss)
$
33,344
$
(4,358
)
Adjustments:
Depreciation and amortization
3,909
1,793
Stock-based compensation
11,790
10,224
Restructuring costs
1,812
—
Acquisition related expenses
907
1,042
Other income, net
(1,292
)
(1,365
)
Income from settlement of litigation
(45,000
)
—
Interest expense
1,216
1,209
Income tax expense (benefit)
(1
)
72
Adjusted EBITDA
$
6,685
$
8,617
GAAP Net income (loss)
$
33,344
$
(4,358
)
Adjustments:
Depreciation and amortization
3,909
1,793
Stock-based compensation
11,790
10,224
Restructuring costs
1,812
—
Acquisition transaction expenses
907
1,042
Income from settlement of litigation
(45,000
)
—
Income tax effects of adjustments (1)
(591
)
(818
)
Non-GAAP Net income
$
6,171
$
7,883
Non-GAAP Net income per share —
diluted
$
0.21
$
0.28
GAAP Weighted-average shares — diluted
31,425
26,285
Dilutive shares from stock plans
—
2,268
Anti-dilutive shares from convertible
debt
(2,589
)
—
Non-GAAP Weighted-average shares —
diluted
28,836
28,553
(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
June 30,
2024
GAAP Net income
$
6,668
Adjustments:
Forecasted Depreciation and
amortization
3,159
Forecasted Stock-based compensation
14,865
Forecasted Interest expense
1,258
Forecasted Other income, net
(1,300
)
Forecasted Income tax expense
(50
)
Adjusted EBITDA
$
24,600
GAAP Net income
$
6,668
Adjustments:
Forecasted Depreciation and
amortization
3,159
Forecasted Stock-based compensation
14,865
Forecasted Income tax effects of
adjustments
(2,201
)
Non-GAAP Net income
$
22,491
GAAP Net income per share — diluted
$
0.23
Non-GAAP Net income per share —
diluted(1)
$
0.75
GAAP weighted-average shares — diluted
29,200
Dilutive shares from convertible debt
2,600
Non-GAAP weighted-average shares —
diluted(1)
31,800
(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/20240424296191/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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