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, 2021.
“Our third-quarter results were strong, with revenue and
profitability exceeding our guidance,” said Chris Diorio, Impinj
co-founder and CEO. “We accelerated Impinj M700 endpoint IC
production, navigated unprecedented supply challenges and see
strong, long-term demand from enterprise digital
transformation.”
Third Quarter 2021 Financial Summary
- Revenue of $45.2 million
- GAAP gross margin of 50.9%; non-GAAP gross margin of 53.3%
- GAAP net loss of $12.9 million, or loss of $(0.53) per diluted
share using 24.3 million shares
- Adjusted EBITDA loss of $0.4 million
- Non-GAAP net loss of $0.9 million, or loss of $(0.04) per
diluted share using 24.3 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 2021 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 2021 (in millions,
except per share data):
Three Months Ending
December 31, 2021
Revenue
$46.0 to $48.0
Adjusted EBITDA income (loss)
($0.5) to $1.0
GAAP Net loss
($13.8) to ($12.8)
GAAP Weighted-average shares — basic and
diluted
24.33 to 25.00
GAAP Net loss per share — basic and
diluted
($0.57) to ($0.51)
Non-GAAP net income (loss)
($1.1) to $0.4
Non-GAAP Weighted-average shares —
basic
24.33 to 25.00
Non-GAAP Weighted-average shares —
diluted
24.33 to 26.50
Non-GAAP Net income (loss) per share —
basic
($0.04) to $0.02
Non-GAAP Net income (loss) per share —
diluted
($0.04) 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, Oct. 27, 2021 at 5:00
p.m. ET / 2:00 p.m. PT for analysts and investors to ask questions
on its third quarter 2021 results, as well as its outlook for its
fourth quarter 2021. 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 after the call and will run for five business days and
may be accessed by dialing +1-412-317-0088 and entering passcode
10160731.
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, the impact of Covid-19, and financial
considerations for fourth quarter of 2021 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, 2021 (1)
December 31, 2020
Assets:
Current assets:
Cash and cash equivalents
$
65,190
$
23,636
Short-term investments
48,153
82,453
Accounts receivable, net
27,045
25,003
Inventory
18,434
36,329
Prepaid expenses and other current
assets
4,238
3,943
Total current assets
163,060
171,364
Property and equipment, net
28,638
16,531
Operating lease right-of-use assets
12,241
13,761
Other non-current assets
2,573
2,079
Goodwill
3,881
3,881
Total assets
$
210,393
$
207,616
Liabilities and stockholders'
equity:
Current liabilities:
Accounts payable
$
8,439
$
10,144
Accrued compensation and employee related
benefits
6,283
5,529
Accrued and other current liabilities
3,634
1,468
Current portion of operating lease
liabilities
3,990
3,641
Current portion of long-term debt
84,140
—
Current portion of deferred revenue
729
6,811
Total current liabilities
107,215
27,593
Long-term debt, net of current portion
—
54,556
Operating lease liabilities, net of
current portion
12,843
15,266
Other long-term liabilities
804
805
Deferred revenue, net of current
portion
253
277
Total liabilities
121,115
98,497
Stockholders' equity:
Common stock, $0.001 par value
24
23
Additional paid-in capital
431,727
423,759
Accumulated other comprehensive income
(3
)
3
Accumulated deficit
(342,470
)
(314,666
)
Total stockholders' equity
89,278
109,119
Total liabilities and stockholders'
equity
$
210,393
$
207,616
(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 as of March 31,
2021, June 30, 2021, and September 30, 2021 are presented under ASU
2020-06, while comparative prior reporting period presented is not
adjusted and continue to be reported in accordance with our
historical accounting policy.
IMPINJ, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except per
share data, unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2021
2020
2021
2020
Revenue
$
45,193
$
28,196
$
137,709
$
102,475
Cost of revenue
22,180
14,824
67,938
54,749
Gross profit
23,013
13,372
69,771
47,726
Operating expenses:
Research and development
16,789
11,901
46,480
33,619
Sales and marketing
8,736
6,964
24,577
20,577
General and administrative
9,860
7,527
27,012
26,215
Restructuring costs
—
—
1,263
-
Total operating expenses
35,385
26,392
99,332
80,411
Loss from operations
(12,372
)
(13,020
)
(29,561
)
(32,685
)
Other income, net
2
49
21
584
Interest expense
(526
)
(1,360
)
(1,576
)
(4,021
)
Loss before income taxes
(12,896
)
(14,331
)
(31,116
)
(36,122
)
Income tax expense
(28
)
(15
)
(130
)
(84
)
Net loss
$
(12,924
)
$
(14,346
)
$
(31,246
)
$
(36,206
)
Net loss per share — basic and diluted
$
(0.53
)
$
(0.63
)
$
(1.30
)
$
(1.60
)
Weighted-average shares — basic and
diluted
24,330
22,931
24,040
22,686
IMPINJ, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands,
unaudited)
Nine Months Ended
September 30,
2021
2020
Operating activities:
Net loss
$
(31,246
)
$
(36,206
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation
3,171
3,402
Stock-based compensation
28,951
15,501
Accretion of discount or amortization of
premium on short-term investments
694
85
Amortization of debt issuance costs and
debt discount
283
2,719
Changes in operating assets and
liabilities:
Accounts receivable
(2,042
)
6,005
Inventory
17,895
(3,829
)
Prepaid expenses and other assets
(758
)
(1,637
)
Deferred revenue
(6,106
)
449
Accounts payable
(1,831
)
2,608
Accrued compensation and employee related
benefits
754
(1,797
)
Operating lease right-of-use assets
2,218
2,029
Operating lease liabilities
(2,772
)
(2,509
)
Accrued and other liabilities
1,196
(372
)
Net cash provided by (used in) operating
activities
10,407
(13,552
)
Investing activities:
Purchases of investments
(36,431
)
(57,298
)
Proceeds from maturities of
investments
70,000
41,675
Purchases of property and equipment
(14,181
)
(2,336
)
Net cash provided by (used in) investing
activities
19,388
(17,959
)
Financing activities:
Principal payments on finance lease
obligations
(2
)
(240
)
Proceeds from exercise of stock options
and employee stock purchase plan
11,761
4,916
Net cash provided by financing
activities
11,759
4,676
Net increase (decrease) in cash and cash
equivalents
41,554
(26,835
)
Cash and cash equivalents
Beginning of period
23,636
66,898
End of period
$
65,190
$
40,063
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; 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; 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, 2021, are presented under the new standard and we no longer
recorded amortization of debt discount, and comparative prior
reporting period presented is not adjusted.
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,
2021
2020
2021
2020
GAAP Gross margin
50.9
%
47.4
%
50.7
%
46.6
%
Adjustments:
Depreciation
1.3
%
1.9
%
1.1
%
1.3
%
Stock-based compensation
1.1
%
0.8
%
0.9
%
0.6
%
Non-GAAP Gross margin
53.3
%
50.1
%
52.7
%
48.5
%
GAAP Net loss
$
(12,924
)
$
(14,346
)
$
(31,246
)
$
(36,206
)
Adjustments:
Depreciation
1,095
1,108
3,171
3,402
Stock-based compensation
10,920
5,683
28,951
15,501
Other income, net
(2
)
(49
)
(21
)
(584
)
Interest expense
526
1,360
1,576
4,021
Income tax expense
28
15
130
84
Settlement and related costs
—
—
—
5,359
Adjusted EBITDA income (loss)
$
(357
)
$
(6,229
)
$
3,824
$
(8,423
)
GAAP Net loss
$
(12,924
)
$
(14,346
)
$
(31,246
)
$
(36,206
)
Adjustments:
Depreciation
1,095
1,108
3,171
3,402
Stock-based compensation
10,920
5,683
28,951
15,501
Amortization of debt discount
—
897
—
2,637
Settlement and related costs
—
—
—
5,359
Non-GAAP Net income (loss)
$
(909
)
$
(6,658
)
$
2,139
$
(9,307
)
Non-GAAP Net income (loss) per share:
Basic
$
(0.04
)
$
(0.29
)
$
0.09
$
(0.41
)
Diluted
$
(0.04
)
$
(0.29
)
$
0.08
$
(0.41
)
GAAP and non-GAAP Weighted-average shares
— basic
24,330
22,931
24,040
22,686
GAAP Weighted-average shares — diluted
24,330
22,931
24,040
22,686
Dilutive shares from stock plans
—
—
1,626
—
Non-GAAP Weighted-average shares —
diluted
24,330
22,931
25,666
22,686
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,
2021
GAAP Net loss
$
(13,300
)
Adjustments:
Forecasted Depreciation
1,800
Forecasted Stock-based compensation
11,150
Forecasted Interest expense
550
Forecasted Other income, net
0
Forecasted Income tax expense
50
Adjusted EBITDA income
$
250
GAAP Net loss
$
(13,300
)
Adjustments:
Forecasted Depreciation
1,800
Forecasted Stock-based compensation
11,150
Non-GAAP Net loss
$
(350
)
GAAP Net loss per share — basic and
diluted
Basic
$
(0.54
)
Diluted
$
(0.54
)
Non-GAAP Net loss per share — basic and
diluted
Basic
$
(0.01
)
Diluted
$
(0.01
)
GAAP and non-GAAP weighted-average shares
— basic and diluted
24,500
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211027006030/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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