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 third
quarter ended September 30, 2019.
“Our third-quarter results were strong, with revenue and
adjusted EBITDA outperforming our guidance,” said Chris Diorio,
Impinj co-founder and CEO. “Quarterly revenue exceeded $40 million
for the first time, driven by strong performance in both endpoint
ICs and systems.”
Third Quarter 2019 Financial Summary
- Revenue of $40.8 million
- GAAP gross margin of 48.5%; non-GAAP gross margin of 50.2%
- GAAP net loss of $4.1 million, or loss of $0.19 per diluted
share using 22.0 million shares
- Adjusted EBITDA of $2.1 million
- Non-GAAP net income of $1.9 million, or income of $0.09 per
diluted share using 22.9 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 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 fourth
quarter of 2019 (in millions, except per share data):
Three Months Ending
December 31, 2019
Revenue
$37.0 to $39.0
GAAP Net loss
$(7.1) to $(6.1)
Adjusted EBITDA (loss)
$(0.5) to $1.0
Non-GAAP net income (loss)
$(0.7) to $0.9
GAAP Weighted-average shares — basic and
diluted
22.05 to 22.15
GAAP Net loss per share — basic and
diluted
$(0.32) to $(0.28)
Non-GAAP Weighted-average shares —
basic
22.05 to 22.15
Non-GAAP Weighted-average shares —
diluted
22.05 to 23.05
Non-GAAP Net income (loss) per share —
basic and diluted
$(0.03) to $0.04
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, Nov. 4, 2019 at 5:00
p.m. ET / 2:00 p.m. PT for analysts and investors to ask questions
on its third quarter 2019 results, as well as its outlook for its
fourth 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 Following the webcast, an archived version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 10135364.
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 fourth
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)
September 30, 2019
December 31, 2018
Assets:
Current assets:
Cash and cash equivalents
$
16,931
$
17,530
Short-term investments
46,151
38,543
Accounts receivable, net
24,803
18,462
Inventory
36,274
44,725
Prepaid expenses and other current
assets
2,259
1,954
Total current assets
126,418
121,214
Property and equipment, net
16,704
19,778
Operating lease right-of-use assets
17,149
—
Other non-current assets
256
196
Goodwill
3,881
3,881
Total assets
$
164,408
$
145,069
Liabilities and stockholders'
equity:
Current liabilities:
Accounts payable
$
6,074
$
4,643
Accrued compensation and employee related
benefits
4,908
7,409
Accrued liabilities
2,722
2,887
Current portion of operating lease
liabilities
3,292
—
Current portion of restructuring
liabilities
94
582
Current portion of long-term debt
3,200
5,930
Current portion of finance lease
liabilities
353
523
Current portion of deferred rent
—
402
Current portion of deferred revenue
794
649
Total current liabilities
21,437
23,025
Long-term debt, net of current portion
20,183
17,633
Operating lease liabilities, net of
current portion
19,778
—
Finance lease liabilities, net of current
portion
18
258
Long-term liabilities — other
302
304
Long-term restructuring liabilities
—
487
Deferred rent, net of current portion
—
5,294
Deferred revenue, net of current
portion
154
185
Total liabilities
61,872
47,186
Stockholders' equity:
Common stock, $0.001 par value
22
21
Additional paid-in capital
357,541
337,627
Accumulated other comprehensive income
(loss)
36
(9
)
Accumulated deficit
(255,063
)
(239,756
)
Total stockholders' equity
102,536
97,883
Total liabilities and stockholders'
equity
$
164,408
$
145,069
IMPINJ, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except per
share data, unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2019
2018
2019
2018
Revenue
$
40,762
$
34,405
$
112,015
$
88,015
Cost of revenue
20,981
17,857
57,945
46,045
Gross profit
19,781
16,548
54,070
41,970
Operating expenses:
Research and development
10,344
8,804
27,678
25,170
Sales and marketing
7,842
7,864
24,579
24,746
General and administrative
5,503
6,695
16,653
16,981
Restructuring costs
—
—
—
3,749
Total operating expenses
23,689
23,363
68,910
70,646
Loss from operations
(3,908
)
(6,815
)
(14,840
)
(28,676
)
Other income, net
317
204
947
561
Interest expense
(413
)
(390
)
(1,263
)
(970
)
Loss before income taxes
(4,004
)
(7,001
)
(15,156
)
(29,085
)
Income tax expense
(77
)
(69
)
(151
)
(159
)
Net loss
$
(4,081
)
$
(7,070
)
$
(15,307
)
$
(29,244
)
Net loss per share — basic and diluted
$
(0.19
)
$
(0.33
)
$
(0.70
)
$
(1.37
)
Weighted-average shares — basic and
diluted
21,961
21,403
21,738
21,287
IMPINJ, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands,
unaudited)
Nine Months Ended
September 30,
2019
2018
Operating activities:
Net loss
$
(15,307
)
$
(29,244
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation
3,637
3,394
Stock-based compensation
11,813
8,013
Non-cash restructuring benefit
—
(454
)
Accretion of discount or amortization of
premium on short-term investments
(464
)
(247
)
Amortization of debt issuance costs
51
57
Changes in operating assets and
liabilities:
Accounts receivable
(6,341
)
2,656
Inventory
8,451
(2,112
)
Prepaid expenses and other assets
(222
)
391
Deferred revenue
114
(288
)
Deferred rent
—
(176
)
Accounts payable
1,508
(774
)
Accrued compensation and employee related
benefits
(2,440
)
(720
)
Operating lease right-of-use assets
1,505
—
Operating lease liabilities
(2,255
)
—
Accrued liabilities and other
liabilities
164
1,223
Restructuring liabilities
—
1,576
Net cash provided by (used in) operating
activities
214
(16,705
)
Investing activities:
Purchases of investments
(59,036
)
(33,397
)
Proceeds from maturities of
investments
51,794
35,402
Purchases of property and equipment
(971
)
(3,051
)
Net cash used in investing activities
(8,213
)
(1,046
)
Financing activities:
Principal payments on finance lease
obligations
(410
)
(717
)
Payments on term and equipment loans
(4,222
)
(2,230
)
Proceeds from term loans, net of debt
issuance costs
3,991
16,379
Proceeds from exercise of stock options
and employee stock purchase plan
8,041
2,627
Net cash provided by financing
activities
7,400
16,059
Net decrease in cash and cash
equivalents
(599
)
(1,692
)
Cash and cash equivalents
Beginning of period
17,530
19,285
End of period
$
16,931
$
17,593
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
Nine Months Ended
September 30,
September 30,
2019
2018
2019
2018
GAAP Gross profit
$
19,781
$
16,548
$
54,070
$
41,970
Adjustments:
Depreciation
496
497
1,543
1,500
Stock-based compensation
192
144
495
325
Non-GAAP Gross profit
$
20,469
$
17,189
$
56,108
$
43,795
GAAP Gross margin
48.5
%
48.1
%
48.3
%
47.7
%
Adjustments:
Depreciation
1.2
%
1.5
%
1.4
%
1.7
%
Stock-based compensation
0.5
%
0.4
%
0.4
%
0.4
%
Non-GAAP Gross margin
50.2
%
50.0
%
50.1
%
49.8
%
GAAP Research and development
$
10,344
$
8,804
$
27,678
$
25,170
Adjustments:
Depreciation
(499
)
(403
)
(1,406
)
(1,190
)
Stock-based compensation
(1,717
)
(1,039
)
(4,028
)
(2,620
)
Non-GAAP Research and development
$
8,128
$
7,362
$
22,244
$
21,360
GAAP Sales and marketing
$
7,842
$
7,864
$
24,579
$
24,746
Adjustments:
Depreciation
(127
)
(129
)
(383
)
(389
)
Stock-based compensation
(1,622
)
(1,188
)
(4,028
)
(2,876
)
Non-GAAP Sales and marketing
$
6,093
$
6,547
$
20,168
$
21,481
GAAP General and administrative
$
5,503
$
6,695
$
16,653
$
16,981
Adjustments:
Depreciation
(98
)
(107
)
(305
)
(315
)
Stock-based compensation
(1,262
)
(964
)
(3,262
)
(2,192
)
Investigation costs
—
(1,449
)
—
(1,449
)
Non-GAAP General and administrative
$
4,143
$
4,175
$
13,086
$
13,025
GAAP Total operating expenses
$
23,689
$
23,363
$
68,910
$
70,646
Adjustments:
Depreciation
(724
)
(639
)
(2,094
)
(1,894
)
Stock-based compensation
(4,601
)
(3,191
)
(11,318
)
(7,688
)
Investigation costs
—
(1,449
)
—
(1,449
)
Restructuring costs
—
—
—
(3,749
)
Non-GAAP Total operating expenses
$
18,364
$
18,084
$
55,498
$
55,866
IMPINJ, INC.
RECONCILIATIONS OF GAAP
FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per
share data, unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2019
2018
2019
2018
GAAP Net loss
$
(4,081
)
$
(7,070
)
$
(15,307
)
$
(29,244
)
Adjustments:
Depreciation
1,220
1,136
3,637
3,394
Stock-based compensation
4,793
3,335
11,813
8,013
Investigation costs
—
1,449
—
1,449
Restructuring costs
—
—
—
3,749
Other income, net
(317
)
(204
)
(947
)
(561
)
Interest expense
413
390
1,263
970
Income tax expense
77
69
151
159
Adjusted EBITDA
$
2,105
$
(895
)
$
610
$
(12,071
)
GAAP Net loss
$
(4,081
)
$
(7,070
)
$
(15,307
)
$
(29,244
)
Adjustments:
Depreciation
1,220
1,136
3,637
3,394
Stock-based compensation
4,793
3,335
11,813
8,013
Investigation costs
—
1,449
—
1,449
Restructuring costs
—
—
—
3,749
Amortization of debt issuance costs
16
18
51
57
Non-cash income tax benefit
—
12
—
40
Non-GAAP Net income (loss)
$
1,948
$
(1,120
)
$
194
$
(12,542
)
Non-GAAP Net income (loss) per share:
Basic
$
0.09
$
(0.05
)
$
0.01
$
(0.59
)
Diluted
$
0.09
$
(0.05
)
$
0.01
$
(0.59
)
GAAP and non-GAAP Weighted-average shares
— basic
21,961
21,403
21,738
21,287
GAAP Weighted-average shares — diluted
21,961
21,403
21,738
21,287
Dilutive shares from stock plans
894
—
658
—
Non-GAAP Weighted-average shares —
diluted
22,855
21,403
22,396
21,287
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,
2019
GAAP Net loss
$
(6,640
)
Adjustments:
Forecasted Depreciation
1,319
Forecasted Stock-based compensation
5,400
Forecasted Interest expense
422
Forecasted Other income, net
(340
)
Forecasted Income tax expense
64
Adjusted EBITDA
$
225
GAAP Net loss
$
(6,640
)
Adjustments:
Forecasted Depreciation
1,319
Forecasted Stock-based compensation
5,400
Forecasted Amortization of debt issuance
costs
21
Forecasted Non-cash income tax expense
—
Non-GAAP Net income
$
100
GAAP Net loss per share — basic and
diluted
$
(0.30
)
Non-GAAP Net loss per share — basic and
diluted
$
0.00
GAAP weighted-average shares — basic and
diluted
22,100
Non-GAAP weighted-average shares —
basic
22,100
Dilutive shares from stock plans
900
Non-GAAP weighted-average shares —
diluted
23,000
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191104005968/en/
Investor Relations ir@impinj.com +1-206-315-4470
Impinj (NASDAQ:PI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Impinj (NASDAQ:PI)
Historical Stock Chart
From Apr 2023 to Apr 2024