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, 2022.
“Our third-quarter results were strong, with both endpoint IC
and reader IC revenue setting new quarterly records,” said Chris
Diorio, Impinj co-founder and CEO. “We entered the fourth quarter
with record backlog and I expect demand to remain strong well into
2023.”
Third Quarter 2022 Financial Summary
- Revenue of $68.3 million
- GAAP gross margin of 54.8%; non-GAAP gross margin of 56.9%
- GAAP net loss of $2.2 million, or loss of $(0.09) per diluted
share using 25.7 million shares
- Adjusted EBITDA of $9.8 million
- Non-GAAP net income of $9.3 million, or income of $0.34 per
diluted share using 27.7 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 2022 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 2022 (in millions, except per share data):
Three Months Ending
December 31, 2022
Revenue
$71.5 to $73.5
GAAP Net loss
($3.1) to ($1.6)
Adjusted EBITDA income
$9.8 to $11.3
GAAP Weighted-average shares — basic and
diluted
25.90 to 26.10
GAAP Net loss per share — basic and
diluted
($0.12 ) to ($0.06 )
Non-GAAP Net income
$9.0 to $10.5
Non-GAAP Weighted-average shares —
basic
25.90 to 26.10
Non-GAAP Weighted-average shares —
diluted
27.90 to 28.10
Non-GAAP Net income per share — basic
$0.35 to $0.40
Non-GAAP Net income per share —
diluted
$0.32 to $0.37
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 26, 2022 at
5:00 p.m. ET / 2:00 p.m. PT to discuss its third quarter 2022
results, as well as its outlook for its fourth quarter 2022.
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 3500921.
Management’s prepared written remarks, along with quarterly
financial data, will be made available on our 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 the market for RAIN RFID,
our strategy, our prospects, the impact of Covid-19, the impact of
silicon wafer and reader component availability and supply, and
financial considerations for fourth quarter of 2022 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, 2022 (1)
December 31, 2021 (1)
Assets:
Current assets:
Cash and cash equivalents
$
39,310
$
123,903
Short-term investments
142,541
69,443
Accounts receivable, net
40,667
35,449
Inventory
31,925
21,958
Prepaid expenses and other current
assets
5,507
5,049
Total current assets
259,950
255,802
Long-term investments
19,200
14,225
Property and equipment, net
31,121
27,500
Operating lease right-of-use assets
11,414
11,667
Other non-current assets
2,223
2,462
Goodwill
3,881
3,881
Total assets
$
327,789
$
315,537
Liabilities and stockholders' equity
(deficit):
Current liabilities:
Accounts payable
$
13,249
$
11,732
Accrued compensation and employee related
benefits
7,936
6,365
Accrued and other current liabilities
6,080
2,481
Current portion of operating lease
liabilities
3,460
4,143
Restructuring liabilities
102
591
Current portion of long-term debt
—
9,633
Current portion of deferred revenue
2,808
558
Total current liabilities
33,635
35,503
Long-term debt, net of current portion
279,846
278,661
Operating lease liabilities, net of
current portion
11,790
11,934
Other long-term liabilities
113
279
Deferred revenue, net of current
portion
344
236
Total liabilities
325,728
326,613
Stockholders' equity (deficit):
Common stock, $0.001 par value
26
25
Additional paid-in capital
390,432
351,422
Accumulated other comprehensive loss
(1,730
)
(39
)
Accumulated deficit
(386,667
)
(362,484
)
Total stockholders' equity (deficit)
2,061
(11,076
)
Total liabilities and stockholders' equity
(deficit)
$
327,789
$
315,537
(1) We adopted ASU 2020-06 on January 1,
2021 using modified retrospective transition method and accounted
for our convertible notes due 2026, or the 2019 Notes, on a
whole-instrument basis. Upon adoption, we no longer had unamortized
debt discount related to the equity component of the 2019 Notes.
The condensed consolidated financial statements under both periods
are presented under ASU 2020-06.
IMPINJ, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except per
share data, unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2022
2021
2022
2021
Revenue
$
68,270
$
45,193
$
181,210
$
137,709
Cost of revenue
30,835
22,180
83,494
67,938
Gross profit
37,435
23,013
97,716
69,771
Operating expenses:
Research and development
18,766
16,789
55,124
46,480
Sales and marketing
9,326
8,736
28,239
24,577
General and administrative
11,087
9,860
33,888
27,012
Restructuring costs
—
—
—
1,263
Total operating expenses
39,179
35,385
117,251
99,332
Loss from operations
(1,744
)
(12,372
)
(19,535
)
(29,561
)
Other income, net
774
2
1,367
21
Induced conversion expense
—
—
(2,232
)
—
Interest expense
(1,205
)
(526
)
(3,716
)
(1,576
)
Loss before income taxes
(2,175
)
(12,896
)
(24,116
)
(31,116
)
Income tax expense
(24
)
(28
)
(67
)
(130
)
Net loss
$
(2,199
)
$
(12,924
)
$
(24,183
)
$
(31,246
)
Net loss per share — basic and diluted
$
(0.09
)
$
(0.53
)
$
(0.95
)
$
(1.30
)
Weighted-average shares — basic and
diluted
25,743
24,330
25,384
24,040
IMPINJ, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands,
unaudited)
Nine Months Ended
September 30,
2022
2021
Operating activities:
Net loss
$
(24,183
)
$
(31,246
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation
4,456
3,171
Stock-based compensation
32,230
28,951
Accretion of discount or amortization of
premium on investments
301
694
Amortization of debt issuance costs
1,203
283
Induced conversion expense related to
convertible notes
2,232
—
Changes in operating assets and
liabilities:
Accounts receivable
(5,218
)
(2,042
)
Inventory
(9,967
)
17,895
Prepaid expenses and other assets
45
(758
)
Accounts payable
1,107
(1,831
)
Accrued compensation and employee related
benefits
1,571
754
Accrued and other liabilities
1,741
1,063
Operating lease right-of-use assets
2,490
2,218
Operating lease liabilities
(3,064
)
(2,772
)
Restructuring liabilities
(489
)
133
Deferred revenue
2,358
(6,106
)
Net cash provided by operating
activities
6,813
10,407
Investing activities:
Purchases of investments
(159,837
)
(36,431
)
Proceeds from maturities of
investments
79,508
70,000
Purchases of property and equipment
(5,975
)
(14,181
)
Net cash provided by (used in) investing
activities
(86,304
)
19,388
Financing activities:
Principal payments on finance lease
obligations
—
(2
)
Proceeds from exercise of stock options
and employee stock purchase plan
12,462
11,761
Payment of 2019 Notes
(17,564
)
—
Net cash provided by (used in) financing
activities
(5,102
)
11,759
Net increase (decrease) in cash and cash
equivalents
(84,593
)
41,554
Cash and cash equivalents
Beginning of period
123,903
23,636
End of period
$
39,310
$
65,190
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;
investigation costs; restructuring costs; settlement and related
costs; other income, net; interest expense; loss on debt
extinguishment; induced conversion expense associated with
repurchases of our 2019 Notes; and income tax benefit
(expense).
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; investigation costs;
restructuring costs; settlement and related costs; amortization of
debt discount related to the equity component of our convertible
notes prior to the adoption of ASU 2020-06; induced conversion
expense associated with repurchases of our 2019 Notes; and
prepayment penalty on debt extinguishment.
On January 1, 2021, we adopted ASU 2020-06 using the modified
retrospective transition method, accounting for the 2019 Notes on a
whole-instrument basis. Upon adoption, the condensed consolidated
financial statements for the three and nine months ended September
30, 2022 and September 30, 2021, are presented under the new
standard and we no longer recorded amortization of debt discount.
In fourth-quarter 2021, we revised our definition of adjusted
EBITDA to exclude the expense incurred in connection with the
induced conversion expense associated with repurchases of our 2019
Notes.
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,
2022
2021
2022
2021
GAAP Gross margin
54.8
%
50.9
%
53.9
%
50.7
%
Adjustments:
Depreciation
1.4
%
1.3
%
1.5
%
1.1
%
Stock-based compensation
0.7
%
1.1
%
0.8
%
0.9
%
Non-GAAP Gross margin
56.9
%
53.3
%
56.2
%
52.7
%
GAAP Net loss
$
(2,199
)
$
(12,924
)
$
(24,183
)
$
(31,246
)
Adjustments:
Depreciation
1,483
1,095
4,456
3,171
Stock-based compensation
10,057
10,920
32,230
28,951
Other income, net
(774
)
(2
)
(1,367
)
(21
)
Interest expense
1,205
526
3,716
1,576
Income tax expense
24
28
67
130
Restructuring costs
—
—
—
1,263
Induced conversion expense
—
—
2,232
—
Adjusted EBITDA
$
9,796
$
(357
)
$
17,151
$
3,824
GAAP Net loss
$
(2,199
)
$
(12,924
)
$
(24,183
)
$
(31,246
)
Adjustments:
Depreciation
1,483
1,095
4,456
3,171
Stock-based compensation
10,057
10,920
32,230
28,951
Restructuring costs
—
—
—
1,263
Induced conversion expense
—
—
2,232
—
Non-GAAP Net income (loss)
$
9,341
$
(909
)
$
14,735
$
2,139
Non-GAAP Net income per share:
Basic
$
0.36
$
(0.04
)
$
0.58
$
0.09
Diluted
$
0.34
$
(0.04
)
$
0.54
$
0.08
GAAP and non-GAAP Weighted-average shares
— basic
25,743
24,330
25,384
24,040
GAAP Weighted-average shares — diluted
25,743
24,330
25,384
24,040
Dilutive shares from stock plans
1,930
—
1,699
1,626
Non-GAAP Weighted-average shares —
diluted
27,673
24,330
27,083
25,666
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,
2022
GAAP Net loss
$
(2,350
)
Adjustments:
Forecasted Depreciation
1,600
Forecasted Stock-based compensation
10,500
Forecasted Interest expense
1,270
Forecasted Other income, net
(500
)
Forecasted Income tax expense
30
Adjusted EBITDA
$
10,550
GAAP Net loss
$
(2,350
)
Adjustments:
Forecasted Depreciation
1,600
Forecasted Stock-based compensation
10,500
Non-GAAP Net income
$
9,750
GAAP Net loss per share — basic and
diluted
$
(0.09
)
Non-GAAP Net income per share
Basic
$
0.38
Diluted
$
0.35
GAAP weighted-average shares — basic and
diluted
26,000
Non-GAAP weighted-average shares —
basic
26,000
Dilutive shares from stock plans
2,000
Non-GAAP weighted-average shares —
diluted
28,000
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221026005830/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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