Impinj, Inc. (NASDAQ: PI), a leading provider and pioneer of
RAIN RFID solutions, today released its financial results for the
fourth quarter and year ended December 31, 2019.
“I am very pleased with Impinj's 2019 execution and results,”
said Chris Diorio, Impinj co-founder and CEO. “We delivered three
consecutive record revenue quarters and strengthened our balance
sheet. We also introduced game-changing new products that
solidified our platform and advanced our strategy. We enter 2020
with strong momentum and a solid foundation for our business.”
Fourth Quarter 2019 Financial Summary
- Revenue of $40.8 million
- GAAP gross margin of 48.8%; non-GAAP gross margin of 50.6%
- GAAP net loss of $7.7 million, or loss of $0.35 per diluted
share using 22.2 million shares
- Adjusted EBITDA of $1.0 million
- Non-GAAP net income of $0.8 million, or income of $0.03 per
diluted share using 22.8 million shares
Full Year 2019 Financial Summary
- Revenue of $152.8 million
- GAAP gross margin of 48.4%; non-GAAP gross margin of 50.2%
- GAAP net loss of $23.0 million, or loss of $1.05 per diluted
share using 21.8 million shares
- Adjusted EBITDA of $1.6 million
- Non-GAAP net income of $0.9 million, or income of $0.04 per
diluted share using 22.6 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.
First Quarter 2020 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 first
quarter of 2020 (in millions, except per share data):
Three Months Ending
March 31, 2020
Revenue
$37.0 to $41.0
GAAP Net loss
($9.5) to ($8.5)
Adjusted EBITDA
($2.3) to $0.7
Non-GAAP net income (loss)
($2.5) to $0.5
GAAP Weighted-average shares — basic and
diluted
22.35 to 22.45
GAAP Net loss per share — basic and
diluted
($0.43) to ($0.38)
Non-GAAP Weighted-average shares — basic
and diluted
22.35 to 23.20
Non-GAAP Net income (loss) per share —
basic and diluted
($0.11) to $0.02
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, Mar. 2, 2020 at 5:00
p.m. ET / 2:00 p.m. PT for analysts and investors to ask questions
on its fourth quarter and full year 2019 results, as well as its
outlook for its first quarter of 2020. 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 10138002.
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 first
quarter of 2020. 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)
December 31, 2019
December 31, 2018
Assets:
Current assets:
Cash and cash equivalents
$
66,898
$
17,530
Short-term investments
49,597
38,543
Accounts receivable, net
23,735
18,462
Inventory
34,153
44,725
Prepaid expenses and other current
assets
2,386
1,954
Total current assets
176,769
121,214
Property and equipment, net
17,442
19,778
Operating lease right-of-use assets
16,501
—
Other non-current assets
453
196
Goodwill
3,881
3,881
Total assets
$
215,046
$
145,069
Liabilities and stockholders'
equity:
Current liabilities:
Accounts payable
$
5,600
$
4,643
Accrued compensation and employee related
benefits
5,859
7,409
Accrued liabilities
3,755
2,887
Current portion of operating lease
liabilities
3,380
—
Current portion of restructuring
liabilities
94
582
Current portion of long-term debt
—
5,930
Current portion of finance lease
liabilities
258
523
Current portion of deferred rent
—
402
Current portion of deferred revenue
551
649
Total current liabilities
19,497
23,025
Long-term debt, net of current portion
50,876
17,633
Operating lease liabilities, net of
current portion
18,907
—
Finance lease liabilities, net of current
portion
1
258
Long-term liabilities — other
313
304
Long-term restructuring liabilities
—
487
Deferred rent, net of current portion
—
5,294
Deferred revenue, net of current
portion
213
185
Total liabilities
89,807
47,186
Stockholders' equity:
Common stock, $0.001 par value
22
21
Additional paid-in capital
387,926
337,627
Accumulated other comprehensive income
(loss)
34
(9
)
Accumulated deficit
(262,743
)
(239,756
)
Total stockholders' equity
125,239
97,883
Total liabilities and stockholders'
equity
$
215,046
$
145,069
IMPINJ, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except per
share data, unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2019
2018
2019
2018
Revenue
$
40,821
$
34,618
$
152,836
$
122,633
Cost of revenue
20,889
18,307
78,834
64,352
Gross profit
19,932
16,311
74,002
58,281
Operating expenses:
Research and development
11,202
8,998
38,880
34,168
Sales and marketing
8,063
8,188
32,642
32,934
General and administrative
7,488
5,318
24,141
22,299
Restructuring costs
—
—
—
3,749
Total operating expenses
26,753
22,504
95,663
93,150
Loss from operations
(6,821
)
(6,193
)
(21,661
)
(34,869
)
Other income, net
295
247
1,242
808
Interest expense
(531
)
(433
)
(1,794
)
(1,403
)
Loss on debt extinguishment
(576
)
—
(576
)
—
Loss before income taxes
(7,633
)
(6,379
)
(22,789
)
(35,464
)
Income tax benefit (expense)
(47
)
392
(198
)
233
Net loss
$
(7,680
)
$
(5,987
)
$
(22,987
)
$
(35,231
)
Net loss per share — basic and diluted
$
(0.35
)
$
(0.28
)
$
(1.05
)
$
(1.65
)
Weighted-average shares — basic and
diluted
22,173
21,477
21,847
21,334
IMPINJ, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands,
unaudited)
Year Ended
December 31,
2019
2018
Operating activities:
Net loss
$
(22,987
)
$
(35,231
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation
4,809
4,534
Stock-based compensation
18,486
11,317
Non-cash restructuring benefit
—
(454
)
Accretion of discount or amortization of
premium on short-term investments
(506
)
(419
)
Amortization of debt issuance costs and
debt discount
206
75
Loss on debt extinguishment
576
—
Deferred income taxes
—
(395
)
Changes in operating assets and
liabilities:
Accounts receivable
(5,273
)
3,782
Inventory
10,572
2,358
Prepaid expenses and other assets
(524
)
473
Deferred revenue
(70
)
(381
)
Deferred rent
—
(260
)
Accounts payable
1,046
326
Accrued compensation and employee related
benefits
(1,486
)
1,819
Operating lease right-of-use assets
2,153
—
Operating lease liabilities
(3,038
)
—
Accrued liabilities and other
liabilities
744
(390
)
Restructuring liabilities
—
1,069
Net cash provided by (used in) operating
activities
4,708
(11,777
)
Investing activities:
Purchases of investments
(72,413
)
(51,651
)
Proceeds from maturities of
investments
61,743
52,352
Purchases of property and equipment
(2,429
)
(6,367
)
Net cash provided by (used in) investing
activities
(13,099
)
(5,666
)
Financing activities:
Proceeds from issuance of 2019 Notes, net
of issuance costs
83,475
—
Premiums paid for Capped Call
Transactions
(10,126
)
—
Principal payments on finance lease
obligations
(522
)
(900
)
Payments on term and equipment loans
(28,192
)
(2,451
)
Proceeds from term loans, net of debt
issuance costs
3,991
16,350
Proceeds from exercise of stock options
and employee stock purchase plan
9,133
2,689
Net cash provided by financing
activities
57,759
15,688
Net increase (decrease) in cash and cash
equivalents
49,368
(1,755
)
Cash and cash equivalents
Beginning of period
17,530
19,285
End of period
$
66,898
$
17,530
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 performance measures include adjusted
EBITDA and non-GAAP net income (loss), the definitions of which are
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
items can 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
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 differently in this report than we
have in the past, due to loss on debt extinguishment incurred in
connection with the December 2019 repayment of our senior credit
facility. 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; loss on debt extinguishment and income tax
benefit (expense). We have excluded loss on debt extinguishment
because we do not believe they reflect our core operations. The
exclusion of loss on debt extinguishment does not impact adjusted
EBITDA previously reported for prior periods.
Non-GAAP Net Income (Loss)
We define non-GAAP net income (loss) differently in this report
than we have in the past due to the prepayment penalty on debt
extinguishment incurred in connection with repayment of our senior
credit facility and amortization of debt discount related to the
equity component of the convertible notes we issued in December
2019. Amortization of debt issuance costs and non-cash income tax
benefit (expense) are no longer excluded from 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 discount related to the equity component of
our convertible notes; and prepayment penalty on debt
extinguishment. We have revised the prior period non-GAAP net
income (loss) to conform to current period presentation. Under
GAAP, certain convertible debt instruments that may be settled in
cash on conversion are required to be accounted for as separate
liability and equity components in a manner that reflects our
non-convertible debt borrowing rate. This results in the debt
component being treated as though it was issued at a discount, with
the debt discount being accreted as additional non-cash interest
expense over the term of the notes using the effective interest
method. As a result, we believe that excluding this non-cash
interest expense attributable to the debt discount in calculating
our non-GAAP net income (loss) is useful because this interest
expense is not indicative of our ongoing operational performance.
We incurred prepayment penalty on debt extinguishment in connection
with the December 2019 repayment of our senior credit facility,
which was included in loss on debt extinguishment in our condensed
consolidated statements of operations. Because of the non-recurring
nature of the prepayment fees, we believe this expense is not
representative of ongoing operation costs.
IMPINJ, INC.
RECONCILIATIONS OF GAAP
FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES
(in thousands, except
percentages, unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2019
2018
2019
2018
GAAP Gross margin
48.8
%
47.1
%
48.4
%
47.5
%
Adjustments:
Depreciation
1.1
%
1.5
%
1.3
%
1.6
%
Stock-based compensation
0.7
%
0.4
%
0.5
%
0.4
%
Non-GAAP Gross margin
50.6
%
49.0
%
50.2
%
49.5
%
GAAP Net loss
$
(7,680
)
$
(5,987
)
$
(22,987
)
$
(35,231
)
Adjustments:
Depreciation
1,172
1,140
4,809
4,534
Stock-based compensation
6,673
3,304
18,486
11,317
Investigation costs
—
—
—
1,449
Restructuring costs
—
—
—
3,749
Other income, net
(295
)
(247
)
(1,242
)
(808
)
Interest expense
531
433
1,794
1,403
Loss on debt extinguishment
576
—
576
—
Income tax benefit (expense)
47
(392
)
198
(233
)
Adjusted EBITDA
$
1,024
$
(1,749
)
$
1,634
$
(13,820
)
GAAP Net loss
$
(7,680
)
$
(5,987
)
$
(22,987
)
$
(35,231
)
Adjustments:
Depreciation
1,172
1,140
4,809
4,534
Stock-based compensation
6,673
3,304
18,486
11,317
Investigation costs
—
—
—
1,449
Restructuring costs
—
—
—
3,749
Amortization of debt discount
140
—
140
—
Prepayment fees on debt extinguishment
470
—
470
—
Non-GAAP Net income (loss)
$
775
$
(1,543
)
$
918
$
(14,182
)
Non-GAAP Net income (loss) per share:
Basic
$
0.03
$
(0.07
)
$
0.04
$
(0.66
)
Diluted
$
0.03
$
(0.07
)
$
0.04
$
(0.66
)
GAAP and non-GAAP Weighted-average shares
— basic
22,173
21,477
21,847
21,334
GAAP Weighted-average shares — diluted
22,173
21,477
21,847
21,334
Dilutive shares from stock plans
657
—
705
—
Non-GAAP Weighted-average shares —
diluted
22,830
21,477
22,552
21,334
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
March 31,
2020
GAAP Net loss
$
(9,000
)
Adjustments:
Forecasted Depreciation
1,200
Forecasted Stock-based compensation
5,900
Forecasted Interest expense
1,300
Forecasted Other income, net
(200
)
Forecasted Income tax expense
—
Adjusted EBITDA
$
(800
)
GAAP Net loss
$
(9,000
)
Adjustments:
Forecasted Depreciation
1,200
Forecasted Stock-based compensation
5,900
Forecasted Accretion of debt discount
900
Non-GAAP Net loss
$
(1,000
)
GAAP Net loss per share — basic and
diluted
$
(0.40
)
Non-GAAP Net loss per share — basic and
diluted
$
(0.04
)
GAAP weighted-average shares — basic and
diluted
22,400
Non-GAAP weighted-average shares — basic
and diluted
22,400
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version on businesswire.com: https://www.businesswire.com/news/home/20200302005912/en/
Investor Relations +1-206-315-4470 ir@impinj.com
Media Relations Jill West Sr. Director, Marketing &
Communications +1 206-834-1110 jwest@impinj.com
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