Impinj, Inc. (NASDAQ: PI), a leading provider and pioneer of
RAIN RFID solutions for identifying, locating and authenticating
everyday items, today released its financial results for the second
quarter ended June 30, 2019.
“Our second-quarter results were strong, highlighted by $38.2
million revenue and solid performance in both endpoint ICs and
systems” said Chris Diorio, Impinj co-founder and CEO. “We set
another quarterly revenue record, led by strong system sales.”
Second Quarter 2019 Financial Summary
- Revenue of $38.2 million
- GAAP gross margin of 48.2%; non-GAAP gross margin of 50.0%
- GAAP net loss of $4.2 million, or loss of $0.19 per diluted
share using 21.7 million shares
- Adjusted EBITDA of $0.8 million
- Non-GAAP net income of $0.7 million, or income of $0.03 per
diluted share using 22.3 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.
Third Quarter 2019 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 2019 (in millions, except per share data):
Three Months Ended
September 30, 2019
Revenue
$37.0 to $39.0
GAAP Net loss
$(6.9) to $(5.9)
Adjusted EBITDA
$(0.8) to $0.8
Non-GAAP net income (loss)
$(0.9) to $0.7
GAAP Weighted-average shares — basic and
diluted
21.75 to 21.85
GAAP Net loss per share — basic and
diluted
$(0.32) to $(0.26)
Non-GAAP Weighted-average shares —
basic
21.75 to 21.85
Non-GAAP Weighted-average shares —
diluted
21.75 to 22.43
Non-GAAP Net income (loss) per share —
basic and diluted
$(0.04) to $0.03
A reconciliation between GAAP and non-GAAP is provided in the
"Non-GAAP Financial Measures" section below.
Conference Call Information
Impinj will host a conference call today, Jul. 29, 2019 at 5:00
p.m. ET / 2:00 p.m. PT for analysts and investors to ask questions
on its second quarter 2019 results, as well as its outlook for its
third quarter of 2019. Open to the public, investors may access the
call by dialing +1-412-317-5196. A live webcast of the conference
call will also be accessible on our website at investor.impinj.com.
Following the webcast, an archived version will be available on the
website for one year. A telephonic replay of the call will be
available one hour after the call and will run for five business
days and may be accessed by dialing +1-412-317-0088 and entering
passcode 10132961.
Management’s prepared written remarks, along with quarterly
financial data, will be made available on our website at
investor.impinj.com commensurate 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, prospects, and financial outlook for the third
quarter of 2019. 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, Inc. (NASDAQ: PI) wirelessly connects billions of
everyday items such as apparel, medical supplies, automobile parts,
luggage and food to consumer and business applications such as
inventory management, patient safety, asset tracking and item
authentication. The Impinj platform uses RAIN RFID to deliver
timely information about these items to the digital world, thereby
enabling the Internet of Things.
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, 2019
December 31, 2018
Assets:
Current assets:
Cash and cash equivalents
$
22,153
$
17,530
Short-term investments
37,645
38,543
Accounts receivable, net
21,260
18,462
Inventory
37,910
44,725
Prepaid expenses and other current
assets
1,524
1,954
Total current assets
120,492
121,214
Property and equipment, net
17,759
19,778
Operating lease right-of-use assets
17,786
—
Other non-current assets
237
196
Goodwill
3,881
3,881
Total assets
$
160,155
$
145,069
Liabilities and stockholders'
equity:
Current liabilities:
Accounts payable
$
5,407
$
4,643
Accrued compensation and employee related
benefits
5,938
7,409
Accrued liabilities
2,982
2,887
Current portion of operating lease
liabilities
3,207
—
Current portion of restructuring
liabilities
94
582
Current portion of long-term debt
1,241
5,930
Current portion of finance lease
liabilities
419
523
Current portion of deferred rent
—
402
Current portion of deferred revenue
964
649
Total current liabilities
20,252
23,025
Long-term debt, net of current portion
22,126
17,633
Operating lease liabilities, net of
current portion
20,628
—
Finance lease liabilities, net of current
portion
79
258
Long-term liabilities — other
301
304
Long-term restructuring liabilities
—
487
Deferred rent, net of current portion
—
5,294
Deferred revenue, net of current
portion
137
185
Total liabilities
63,523
47,186
Stockholders' equity:
Common stock, $0.001 par value
22
21
Additional paid-in capital
347,558
337,627
Accumulated other comprehensive income
(loss)
34
(9
)
Accumulated deficit
(250,982
)
(239,756
)
Total stockholders' equity
96,632
97,883
Total liabilities and stockholders'
equity
$
160,155
$
145,069
IMPINJ, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except per
share data, unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2019
2018
2019
2018
Revenue
$
38,190
$
28,542
$
71,253
$
53,610
Cost of revenue
19,774
14,882
36,964
28,188
Gross profit
18,416
13,660
34,289
25,422
Operating expenses:
Research and development
8,773
8,363
17,334
16,366
Sales and marketing
8,188
8,023
16,737
16,882
General and administrative
5,455
5,061
11,150
10,286
Restructuring costs
—
(178
)
—
3,749
Total operating expenses
22,416
21,269
45,221
47,283
Loss from operations
(4,000
)
(7,609
)
(10,932
)
(21,861
)
Other income, net
309
267
630
357
Interest expense
(421
)
(351
)
(850
)
(580
)
Loss before income taxes
(4,112
)
(7,693
)
(11,152
)
(22,084
)
Income tax expense
(46
)
(39
)
(74
)
(90
)
Net loss
$
(4,158
)
$
(7,732
)
$
(11,226
)
$
(22,174
)
Net loss per share — basic and diluted
$
(0.19
)
$
(0.36
)
$
(0.52
)
$
(1.04
)
Weighted-average shares — basic and
diluted
21,709
21,333
21,626
21,229
IMPINJ, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands,
unaudited)
Six Months Ended
June 30,
2019
2018
Operating activities:
Net loss
$
(11,226
)
$
(22,174
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation
2,417
2,258
Stock-based compensation
7,020
4,678
Non-cash restructuring benefit
—
(454
)
Accretion of discount or amortization of
premium on short-term investments
(362
)
(143
)
Amortization of debt issuance costs
35
39
Changes in operating assets and
liabilities:
Accounts receivable
(2,798
)
2,228
Inventory
6,815
(6,195
)
Prepaid expenses and other assets
467
864
Deferred revenue
267
(487
)
Deferred rent
—
(87
)
Accounts payable
798
579
Accrued compensation and employee related
benefits
(1,429
)
341
Operating lease right-of-use assets
868
—
Operating lease liabilities
(1,490
)
—
Accrued liabilities and other
liabilities
459
(34
)
Restructuring liabilities
—
2,275
Net cash provided by (used in) operating
activities
1,841
(16,312
)
Investing activities:
Purchases of investments
(36,569
)
(19,154
)
Proceeds from maturities of
investments
37,794
20,800
Purchases of property and equipment
(799
)
(1,071
)
Net cash provided by investing
activities
426
575
Financing activities:
Principal payments on finance lease
obligations
(283
)
(483
)
Payments on term and equipment loans
(4,222
)
(2,147
)
Proceeds from term loans, net of debt
issuance costs
3,991
12,379
Proceeds from exercise of stock options
and employee stock purchase plan
2,870
2,203
Net cash provided by financing
activities
2,356
11,952
Net increase (decrease) in cash and cash
equivalents
4,623
(3,785
)
Cash and cash equivalents
Beginning of period
17,530
19,285
End of period
$
22,153
$
15,500
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, we use non-GAAP financial measures
by financial statement line items that exclude, if applicable for
the periods presented, the effects of stock-based compensation,
depreciation, investigation costs, restructuring costs and other
expenses that we believe do not reflect our core operating
performance. Our key non-GAAP liquidity and performance measures
include adjusted EBITDA and non-GAAP net income (loss), see
definitions of such 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 excluding those income and expenses inherent in calculating
adjusted EBITDA and non-GAAP net income (loss) can provide useful
measures for period-to-period comparisons of our business.
Accordingly, we believe that adjusted EBITDA and non-GAAP net
income (loss) provide useful information to investors and others in
understanding and evaluating our operating results in the same
manner as it does for 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 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; other income, net;
interest expense; and income tax benefit (expense).
Non-GAAP Net Income (Loss)
We define non-GAAP net income (loss) 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;
amortization of debt issuance costs; and non-cash income tax
benefit (expense). We exclude the non-cash portion of income taxes
because of our ability to offset a substantial portion of future
income tax liabilities by utilizing our deferred tax assets, which
comprise primarily federal net operating loss carryforwards and
federal research and experimentation credit carryforwards.
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,
2019
2018
2019
2018
GAAP Gross profit
$
18,416
$
13,660
$
34,289
$
25,422
Adjustments:
Depreciation
522
503
1,047
1,003
Stock-based compensation
159
98
303
181
Non-GAAP Gross profit
$
19,097
$
14,261
$
35,639
$
26,606
GAAP Gross margin
48.2
%
47.9
%
48.1
%
47.4
%
Adjustments:
Depreciation
1.4
%
1.8
%
1.5
%
1.9
%
Stock-based compensation
0.4
%
0.3
%
0.4
%
0.3
%
Non-GAAP Gross margin
50.0
%
50.0
%
50.0
%
49.6
%
GAAP Research and development
$
8,773
$
8,363
$
17,334
$
16,366
Adjustments:
Depreciation
(512
)
(402
)
(907
)
(787
)
Stock-based compensation
(1,240
)
(822
)
(2,311
)
(1,581
)
Non-GAAP Research and development
$
7,021
$
7,139
$
14,116
$
13,998
GAAP Sales and marketing
$
8,188
$
8,023
$
16,737
$
16,882
Adjustments:
Depreciation
(127
)
(131
)
(256
)
(260
)
Stock-based compensation
(1,116
)
(931
)
(2,406
)
(1,688
)
Non-GAAP Sales and marketing
$
6,945
$
6,961
$
14,075
$
14,934
GAAP General and administrative
$
5,455
$
5,061
$
11,150
$
10,286
Adjustments:
Depreciation
(101
)
(102
)
(207
)
(208
)
Stock-based compensation
(1,028
)
(762
)
(2,000
)
(1,228
)
Non-GAAP General and administrative
$
4,326
$
4,197
$
8,943
$
8,850
GAAP Total operating expenses
$
22,416
$
21,269
$
45,221
$
47,283
Adjustments:
Depreciation
(740
)
(635
)
(1,370
)
(1,255
)
Stock-based compensation
(3,384
)
(2,515
)
(6,717
)
(4,497
)
Restructuring costs
—
178
—
(3,749
)
Non-GAAP Total operating expenses
$
18,292
$
18,297
$
37,134
$
37,782
IMPINJ, INC.
RECONCILIATIONS OF GAAP
FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per
share data, unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2019
2018
2019
2018
GAAP Net loss
$
(4,158
)
$
(7,732
)
$
(11,226
)
$
(22,174
)
Adjustments:
Depreciation
1,262
1,138
2,417
2,258
Stock-based compensation
3,543
2,613
7,020
4,678
Restructuring costs (benefits)
—
(178
)
—
3,749
Other income, net
(309
)
(267
)
(630
)
(357
)
Interest expense
421
351
850
580
Income tax expense
46
39
74
90
Adjusted EBITDA
$
805
$
(4,036
)
$
(1,495
)
$
(11,176
)
GAAP Net loss
$
(4,158
)
$
(7,732
)
$
(11,226
)
$
(22,174
)
Adjustments:
Depreciation
1,262
1,138
2,417
2,258
Stock-based compensation
3,543
2,613
7,020
4,678
Restructuring costs (benefits)
—
(178
)
—
3,749
Amortization of debt issuance costs
17
18
35
39
Non-cash income tax benefit
—
12
—
28
Non-GAAP Net income (loss)
$
664
$
(4,129
)
$
(1,754
)
$
(11,422
)
Non-GAAP Net income (loss) per share:
Basic
$
0.03
$
(0.19
)
$
(0.08
)
$
(0.54
)
Diluted
$
0.03
$
(0.19
)
$
(0.08
)
$
(0.54
)
GAAP and non-GAAP Weighted-average shares
— basic
21,709
21,333
21,626
21,229
GAAP Weighted-average shares — diluted
21,709
21,333
21,626
21,229
Dilutive shares from stock plans
572
—
—
—
Non-GAAP Weighted-average shares —
diluted
22,281
21,333
21,626
21,229
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 Ended
September 30,
2019
GAAP Net loss
$
(6,400
)
Adjustments:
Forecasted Depreciation
1,280
Forecasted Stock-based compensation
5,000
Forecasted Interest expense
430
Forecasted Other income, net
(340
)
Forecasted Income tax expense
30
Adjusted EBITDA
$
—
GAAP Net loss
$
(6,400
)
Adjustments:
Forecasted Depreciation
1,280
Forecasted Stock-based compensation
5,000
Forecasted Amortization of debt issuance
costs
20
Forecasted Non-cash income tax expense
0
Non-GAAP Net loss
$
(100
)
GAAP Net loss per share — basic and
diluted
$
(0.29
)
Non-GAAP Net loss per share — basic and
diluted
$
(0.00
)
Weighted-average shares used to compute
GAAP and Non-GAAP net loss per share attributable to common
stockholders — basic and diluted
21,800
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Investor Relations ir@impinj.com +1-206-315-4470
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