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, 2024.
“Our third-quarter results were strong, with revenue and
profitability well above our guidance,” said Chris Diorio, Impinj
co-founder and CEO. “These results again demonstrate the leverage
in our operating model. 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.”
Third Quarter 2024 Financial Summary
- Revenue of $95.2 million
- GAAP gross margin of 50.0%; non-GAAP gross margin of 52.4%
- GAAP net income of $0.2 million, or income of $0.01 per diluted
share using 29.7 million shares
- Adjusted EBITDA of $17.3 million
- Non-GAAP net income of $16.9 million, or income of $0.56 per
diluted share using 32.3 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 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 fourth
quarter of 2024 (in millions, except per share data):
Three Months Ending
December 31, 2024
Revenue
$91.0 to $94.0
GAAP Net loss
($3.8) to ($2.3)
Adjusted EBITDA income
$13.6 to $15.1
GAAP Weighted-average shares — basic and
diluted
28.4 to 28.6
GAAP Net loss per share — basic and
diluted
($0.14) to ($0.08)
Non-GAAP Net income
$13.4 to $14.9
Non-GAAP Weighted-average shares —
diluted(1)
32.6 to 32.8
Non-GAAP Net income per share —
diluted(1)
$0.45 to $0.49
(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, October 23, 2024 at
5:00 p.m. ET / 2:00 p.m. PT to discuss its third-quarter 2024
results, as well as its outlook for its fourth-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 1320694.
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
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)
September 30, 2024
December 31, 2023
Assets:
Current assets:
Cash and cash equivalents
$
73,704
$
94,793
Short-term investments
96,551
18,440
Accounts receivable, net
64,378
54,919
Inventory
88,357
97,172
Prepaid expenses and other current
assets
6,097
4,372
Total current assets
329,087
269,696
Long-term investments
57,122
—
Property and equipment, net
49,908
44,891
Intangible assets, net
11,563
13,913
Operating lease right-of-use assets
7,817
9,735
Other non-current assets
1,117
1,478
Goodwill
19,833
19,696
Total assets
$
476,447
$
359,409
Liabilities and stockholders'
equity:
Current liabilities:
Accounts payable
$
20,504
$
8,661
Accrued compensation and employee related
benefits
18,043
8,519
Accrued and other current liabilities
3,702
8,614
Current portion of operating lease
liabilities
3,534
3,373
Current portion of long-term debt
283,081
—
Current portion of deferred revenue
2,231
1,713
Total current liabilities
331,095
30,880
Long-term debt
—
281,855
Operating lease liabilities, net of
current portion
6,660
9,360
Deferred tax liabilities, net
2,454
2,911
Deferred revenue, net of current
portion
139
272
Total liabilities
340,348
325,278
Stockholders' equity:
Common stock, $0.001 par value
28
27
Additional paid-in capital
522,100
463,900
Accumulated other comprehensive income
594
355
Accumulated deficit
(386,623
)
(430,151
)
Total stockholders' equity
136,099
34,131
Total liabilities and stockholders'
equity
$
476,447
$
359,409
IMPINJ, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except per
share data, unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2024
2023
2024
2023
Revenue
$
95,198
$
65,005
$
274,518
$
236,888
Cost of revenue
47,629
34,237
131,885
118,776
Gross profit
47,569
30,768
142,633
118,112
Operating expenses:
Research and development
25,492
21,588
72,935
67,426
Sales and marketing
9,888
10,073
29,891
30,678
General and administrative
12,452
13,532
39,040
45,098
Amortization of intangibles
506
1,409
2,411
3,555
Restructuring costs
—
—
1,812
—
Total operating expenses
48,338
46,602
146,089
146,757
Income (loss) from operations
(769
)
(15,834
)
(3,456
)
(28,645
)
Other income, net
2,416
1,090
5,830
3,620
Income from settlement of litigation
—
—
45,000
—
Interest expense
(1,219
)
(1,213
)
(3,652
)
(3,633
)
Income (loss) before income taxes
428
(15,957
)
43,722
(28,658
)
Income tax benefit (expense)
(207
)
195
(194
)
472
Net income (loss) per share attributable
to common stockholders:
$
221
$
(15,762
)
$
43,528
$
(28,186
)
Net income (loss) per share — basic
$
0.01
$
(0.59
)
$
1.57
$
(1.06
)
Net income (loss) per share — diluted
$
0.01
$
(0.59
)
$
1.48
(1)
$
(1.06
)
Weighted-average shares outstanding —
basic
28,168
26,920
27,805
26,639
Weighted-average shares outstanding —
diluted
29,727
26,920
31,918
(1)
26,639
(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)
Nine Months Ended
September 30,
2024
2023
Operating activities:
Net income (loss)
$
43,528
$
(28,186
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
10,155
9,733
Stock-based compensation
41,336
35,679
Restructuring equity modification
expense
366
—
Accretion of discount or amortization of
premium on investments
(247
)
(1,600
)
Amortization of debt issuance costs
1,226
1,206
Deferred tax expense
(471
)
(662
)
Revaluation of acquisition-related
contingent consideration liability
986
—
Changes in operating assets and
liabilities, net of amounts acquired:
Accounts receivable
(9,438
)
2,683
Inventory
8,825
(59,239
)
Prepaid expenses and other assets
(610
)
1,407
Accounts payable
12,056
(10,054
)
Accrued compensation and employee related
benefits
9,515
(1,904
)
Accrued and other liabilities
1,268
1,677
Acquisition-related contingent
consideration liability
(2,556
)
—
Operating lease right-of-use assets
1,921
1,990
Operating lease liabilities
(2,542
)
(2,501
)
Deferred revenue
369
(1,038
)
Net cash provided by (used in) operating
activities
115,687
(50,809
)
Investing activities:
Purchases of investments
(154,331
)
—
Proceeds from sales of investments
—
13,372
Proceeds from maturities of
investments
18,605
127,449
Business acquisitions, net of cash
acquired
—
(23,357
)
Purchases of intangible assets
—
(250
)
Proceeds from sale of property and
equipment
—
234
Purchases of property and equipment
(12,979
)
(15,968
)
Net cash provided by (used in) investing
activities
(148,705
)
101,480
Financing activities:
Proceeds from exercise of stock options
and employee stock purchase plan
16,499
7,890
Payment of acquisition-related contingent
consideration
(4,602
)
—
Net cash provided by financing
activities
11,897
7,890
Effect of exchange rate changes on cash
and cash equivalents
32
(58
)
Net increase (decrease) in cash and cash
equivalents
(21,089
)
58,503
Cash and cash equivalents
Beginning of period
94,793
19,597
End of period
$
73,704
$
78,100
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
Nine Months Ended
September 30,
September 30,
2024
2023
2024
2023
GAAP Gross margin
50.0
%
47.3
%
52.0
%
49.9
%
Adjustments:
Depreciation and amortization
1.9
%
2.2
%
1.8
%
1.5
%
Purchase accounting adjustments
0.0
%
0.2
%
0.0
%
0.2
%
Stock-based compensation
0.5
%
0.8
%
0.5
%
0.6
%
Non-GAAP Gross margin
52.4
%
50.5
%
54.3
%
52.2
%
GAAP Net income (loss)
$
221
$
(15,762
)
$
43,528
$
(28,186
)
Adjustments:
Depreciation and amortization
3,247
3,668
10,155
9,734
Stock-based compensation
14,841
12,307
41,336
35,679
Restructuring costs
—
—
1,812
—
Acquisition related expenses
—
4
986
1,676
Purchase accounting adjustments
—
112
—
388
Other income, net
(2,416
)
(1,090
)
(5,830
)
(3,620
)
Income from settlement of litigation
—
—
(45,000
)
—
Interest expense
1,219
1,213
3,652
3,633
Income tax expense (benefit)
207
(195
)
194
(472
)
Adjusted EBITDA
$
17,319
$
257
$
50,833
$
18,832
GAAP Net income (loss)
$
221
$
(15,762
)
$
43,528
$
(28,186
)
Adjustments:
Depreciation and amortization
3,247
3,668
10,155
9,734
Stock-based compensation
14,841
12,307
41,336
35,679
Restructuring costs
—
—
1,812
—
Acquisition transaction expenses
—
4
986
1,676
Purchase accounting adjustments
—
112
—
388
Income from settlement of litigation
—
—
(45,000
)
—
Income tax effects of adjustments (1)
(1,410
)
(207
)
(4,434
)
(1,990
)
Non-GAAP Net income
$
16,899
$
122
$
48,383
$
17,301
Non-GAAP Net income per share —
diluted
$
0.56
(2)
$
0.00
$
1.63
(2)
$
0.61
GAAP Weighted-average shares — diluted
29,727
26,920
31,918
(3)
26,639
Dilutive shares from stock plans
—
1,196
—
1,758
Dilutive shares from convertible debt
2,589
—
—
—
Non-GAAP Weighted-average shares —
diluted
32,316
(2)
28,116
31,918
(2)
28,397
(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
Nine Months Ended
September 30,
September 30,
2024
2023
2024
2023
GAAP Net cash provided by (used in)
operating activities
$
10,068
$
(1,705
)
$
115,687
$
(50,809
)
Adjustments:
Purchases of property and equipment
(5,411
)
(2,770
)
(12,979
)
(15,968
)
Free cash flow
$
4,657
$
(4,475
)
$
102,708
$
(66,777
)
Adjustments:
Income from settlement of litigation
—
—
(45,000
)
—
Adjusted free cash flow
$
4,657
$
(4,475
)
$
57,708
$
(66,777
)
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,
2024
GAAP Net loss
$
(3,178
)
Adjustments:
Forecasted Depreciation and
amortization
3,388
Forecasted Stock-based compensation
15,175
Forecasted Interest expense
1,215
Forecasted Other income, net
(2,400
)
Forecasted Income tax expense
100
Adjusted EBITDA
$
14,300
GAAP Net loss
$
(3,178
)
Adjustments:
Forecasted Depreciation and
amortization
3,388
Forecasted Stock-based compensation
15,175
Forecasted Income tax effects of
adjustments
(1,252
)
Non-GAAP Net income
$
14,133
GAAP Net loss per share — basic and
diluted
$
(0.11
)
Non-GAAP Net income per share —
diluted(1)
$
0.47
GAAP weighted-average shares — basic and
diluted
28,500
Dilutive shares
4,200
Non-GAAP weighted-average shares —
diluted(1)
32,700
(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/20241023862833/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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