Inpixon Reports Second Quarter 2021 Financial Results and Provides Corporate Update
Inpixon (Nasdaq: INPX) reported a remarkable 221% increase in revenue to $3.5 million for Q2 2021, up from $1.1 million in the same period last year, primarily driven by growth in Indoor Intelligence sales. The company achieved a net income of $14.8 million, significantly improving from a loss of $7.3 million a year ago. With approximately $70 million available, including $24.9 million in cash, Inpixon is poised for further expansion. The company highlights strong momentum in securing new customer relationships and enhancing its product offerings, focusing on smart workplace solutions.
- Revenue increased by 221% to $3.5 million year-over-year.
- Net income increased to $14.8 million from a loss of $7.3 million.
- Gross profit rose to $2.6 million, with a margin of 74%.
- Strong momentum with new customer acquisitions for smart office applications.
- Company has approximately $70 million available for business expansion.
- Non-GAAP Adjusted EBITDA loss increased to $6.3 million from $3.9 million year-over-year.
- Increased operating expenses due to recent acquisitions.
PALO ALTO, Calif., Aug. 16, 2021 /PRNewswire/ -- Inpixon (Nasdaq: INPX), the Indoor Intelligence™ company, today provided a business update and reported financial results for the second quarter of 2021.
Nadir Ali, CEO of Inpixon, stated, "We continue to make tremendous growth strides, reporting a
"We are delivering a range of solutions that enhance indoor experiences by allowing our customers to provide smarter, safer and more secure environments. With activity around in-person events restarting including conferences and executive briefings, the need to deliver hybrid event options remains, and our app and events platform is optimized to deliver hybrid and omni-device experiences in a way that we believe other event app vendors don't provide. We are also delivering solutions for other work environments such as industrial, manufacturing and mining, where heavy equipment and vehicles are in close proximity to one another or people, and determining precise location is critical to ensure the safety of visitors and personnel. Utilization of our chirp and UWB technologies, such as is offered with our recently launched Inpixon Asset Tag and Inpixon Personnel Tag, can deliver increased visibility of people and assets, enhancing safety and resource utilization. Our technology offers a unique performance profile combining high accuracy, long operational range and interference resilience that makes it an excellent choice for a wide range of location and ranging use cases. According to MarketsandMarkets, the RTLS market is expected to grow at a CAGR of
"Overall, we have approximately
Recent milestones:
- Selected by leading global social media and information sharing company with hundreds of millions of active users worldwide for smart office app implementation across dozens of corporate locations.
- Added to the Russell Microcap® Index.
- Secured purchase order for implementation of smart office app with multinational mass media and entertainment conglomerate.
- Launched Inpixon Asset Tag, a compact, active radio frequency (RF) tag for long-range RTLS asset tracking.
- Won multi-year contract for smart office app for implementation with international banking organization, supporting European-based financial company's hybrid return-to-work initiative for employees in more than 75 locations.
- Won "Best Smart Building Solution for Return to Work" award. Recognition was based on ability to add value and drive change through innovative solutions.
- Secured purchase orders for tens of thousands of units in Inpixon's RTLS product line from integrator partners for customers in Europe, Asia, Africa and North America.
Financial Results
Revenues for the three months ended June 30, 2021 were
Proforma non-GAAP net loss per basic and diluted common share for the three months ended June 30, 2021 was a loss of
Conference Call
Inpixon management will host a conference call at 4:30 p.m. Eastern Time on Monday, August 16, 2021 to discuss the company's financial results for the second quarter ended June 30, 2021, as well as the company's corporate progress and other developments.
The conference call will be available via telephone by dialing toll free 888-506-0062 for U.S. callers or +1 973-528-0011 for international callers and using entry code 560491. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2235/42390, or on the company's Investor Relations section of the website, ir.inpixon.com. Investors and other interested parties are invited to submit questions to management prior to the call's start via email to inpx@crescendo-ir.com.
A webcast replay of the call will be available on the company's Investor Relations section of the website (ir.inpixon.com) through August 16, 2022. A telephone replay will be available approximately one hour following the call, through August 23, 2021 and can be accessed by dialing 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and entering conference ID 42390.
About Inpixon
Inpixon® (Nasdaq: INPX) is the innovator of Indoor Intelligence™, delivering actionable insights for people, places and things. Combining the power of mapping, positioning and analytics, Inpixon helps to create smarter, safer, and more secure environments. The company's Indoor Intelligence and mobile app solutions are leveraged by a multitude of industries to optimize operations, increase productivity, and enhance safety. Inpixon customers can take advantage of industry leading location awareness, RTLS, workplace and hybrid event solutions, analytics, sensor fusion and the IoT to create exceptional experiences and to do good with indoor data. For the latest insights, follow Inpixon on LinkedIn, Twitter, and visit inpixon.com.
Safe Harbor Statement
All statements in this release that are not based on historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. While management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties and other factors, many of which are outside of the control of Inpixon and its subsidiaries, which could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not limited to, the fluctuation of economic conditions, the impact of COVID-19 on Inpixon's results of operations and global supply chain constraints, Inpixon's ability to integrate the products and business from recent acquisitions into its existing business, the performance of management and employees, the regulatory landscape as it relates to privacy regulations and their applicability to Inpixon's technology, Inpixon's ability to maintain compliance with Nasdaq's minimum bid price requirement and other continued listing requirements, the valuation associated with the Sysorex shares owned by Inpixon may fluctuate on a quarter by quarter basis and is anticipated to be subject to discounts or other adjustments for a variety of factors including but not limited to fluctuations in the market price of Sysorex's common stock which may result in unrealized losses if the value of such securities declines and require us to recognize a charge against earnings, the ability to obtain financing, competition, general economic conditions and other factors that are detailed in Inpixon's periodic and current reports available for review at sec.gov. Furthermore, Inpixon operates in a highly competitive and rapidly changing environment where new and unanticipated risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. Inpixon disclaims any intention to, and undertakes no obligation to, update or revise forward-looking statements.
Non-GAAP Financial Measures
Management believes that certain financial measures not in accordance with generally accepted accounting principles in the United States ("GAAP") are useful measures of operations. EBIDTA, Adjusted EBITDA and pro forma net loss per share are non-GAAP measures. Inpixon defines "EBITDA" as net income (loss) before interest, provision for (benefit from) income taxes, and depreciation and amortization. Management uses Adjusted EBITDA as a metric for which it manages the business, and Inpixon defines "Adjusted EBITDA" as EBITDA plus adjustments for other income or expense items, non-recurring items and non-cash items. Inpixon defines "pro forma net loss per share" as GAAP net loss per share adjusted for stock-based compensation, amortization of intangibles and one-time charges including loss on the exchange of debt for equity and provision for valuation allowances.
Management provides Adjusted EBITDA and pro forma net loss per share measures so that investors will have the same financial information that management uses, which may assist investors in assessing Inpixon's performance on a period-over-period basis. Adjusted EBITDA or pro forma net loss per share is not a measure of financial performance under GAAP, and should not be considered an alternative to net income (loss) or any other measure of performance under GAAP, or to cash flows from operating, investing or financing activities as an indicator of cash flows or as a measure of liquidity. Adjusted EBITDA and pro forma net loss per share have limitations as analytical tools and should not be considered either in isolation or as a substitute for analysis of Inpixon's results as reported under GAAP.
For more information on our non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, please see the "Reconciliation of Non-GAAP Financial Measures" table accompanying this press release.
Inpixon Contacts
Media relations and general inquiries:
Inpixon
Email: marketing@inpixon.com
Web: inpixon.com/contact-us
Investor relations:
Crescendo Communications, LLC
Tel: +1 212-671-1020
Email: INPX@crescendo-ir.com
###
INPIXON AND SUBSIDIARIES | ||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
(In thousands, except number of shares and par value data) | ||||||
As of | ||||||
June 30, 2021 | December 31, 2020 | |||||
(Unaudited) | (Audited) | |||||
ASSETS | ||||||
Current Assets | ||||||
Cash and cash equivalents | $ | 24,912 | $ | 17,996 | ||
Accounts receivable, net of allowances of | 2,694 | 1,739 | ||||
Notes and other receivables | 272 | 152 | ||||
Inventory, net of reserve of | 1,919 | 1,243 | ||||
Short-term investments | 45,303 | 7,998 | ||||
Prepaid assets and other current assets | 1,381 | 1,197 | ||||
Total Current Assets | 76,481 | 30,325 | ||||
Property and equipment, net | 1,499 | 1,445 | ||||
Operating lease right-of-use asset, net | 1,775 | 2,077 | ||||
Software development costs, net | 1,658 | 1,721 | ||||
Investment in Equity Securities | 29,940 | -- | ||||
Long-term investments | 2,500 | 2,500 | ||||
Intangible assets, net | 36,530 | 14,203 | ||||
Goodwill | 23,890 | 6,588 | ||||
Other assets | 141 | 152 | ||||
Total Assets | $ | 174,414 | $ | 59,011 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current Liabilities | ||||||
Accounts payable | $ | 1,726 | $ | 908 | ||
Accrued liabilities | 5,717 | 2,739 | ||||
Income tax liabilities | 6,750 | -- | ||||
Operating lease obligation, current | 602 | 647 | ||||
Deferred revenue | 2,780 | 1,922 | ||||
Short-term debt | 4,251 | 5,401 | ||||
Acquisition liability | 440 | 500 | ||||
Total Current Liabilities | 22,266 | 12,117 | ||||
Long Term Liabilities | ||||||
Operating lease obligations, noncurrent | 1,202 | 1,457 | ||||
Other liabilities, noncurrent | 35 | 7 | ||||
Acquisition liability, noncurrent | 5,425 | 750 | ||||
Total Liabilities | 28,928 | 14,331 | ||||
Commitments and Contingencies | -- | -- | ||||
Stockholders' Equity | ||||||
Preferred Stock - | -- | -- | ||||
Common Stock - | 116 | 53 | ||||
Additional paid-in capital | 322,196 | 225,613 | ||||
Treasury stock, at cost, 1 share | (695) | (695) | ||||
Accumulated other comprehensive income | 52 | 660 | ||||
Accumulated deficit | (178,931) | (180,992) | ||||
Stockholders' Equity Attributable to Inpixon | 142,738 | 44,639 | ||||
Non-controlling interest | 2,748 | 41 | ||||
Total Stockholders' Equity | 145,486 | 44,680 | ||||
Total Liabilities and Stockholders' Equity | $ | 174,414 | $ | 59,011 | ||
INPIXON AND SUBSIDIARIES | |||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | |||||||||||||
(In thousands, except per share data) | |||||||||||||
For the Three Months Ended, | For the Six Months Ended | ||||||||||||
June 30, | June 30, | ||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||
(Unaudited) | (Unaudited) | ||||||||||||
Revenues | $ | 3,453 | $ | 1,076 | $ | 6,407 | $ | 2,880 | |||||
Cost of Revenues | 896 | 305 | 1,780 | 814 | |||||||||
Gross Profit | 2,557 | 771 | 4,627 | 2,066 | |||||||||
Operating Expenses | |||||||||||||
Research and development | 3,223 | 1,278 | 5,931 | 2,612 | |||||||||
Sales and marketing | 2,073 | 1,468 | 3,712 | 2,159 | |||||||||
General and administrative | 8,828 | 2,476 | 17,999 | 6,268 | |||||||||
Acquisition related costs | 535 | 169 | 1,005 | 196 | |||||||||
Amortization of intangibles | 1,191 | 508 | 1,693 | 1,524 | |||||||||
Total Operating Expenses | 15,850 | 5,899 | 30,340 | 12,759 | |||||||||
Loss from Operations | (13,293) | (5,128) | (25,713) | (10,693) | |||||||||
Other Income (Expense) | |||||||||||||
Interest income (expense), net | 1,555 | (777) | 1,206 | (1,397) | |||||||||
Loss on exchange of debt for equity | -- | (47) | (30) | (132) | |||||||||
Benefit (provision) for valuation allowance on | 7,462 | (835) | 7,345 | (835) | |||||||||
Other income (expense) | 125 | (517) | 511 | (499) | |||||||||
Gain on related party loan - held for sale | 49,817 | -- | 49,817 | -- | |||||||||
Unrealized loss on equity securities | (28,965) | -- | (28,965) | -- | |||||||||
Total Other Income (Expense) | 29,994 | (2,176) | 29,884 | (2,863) | |||||||||
Net Income (Loss), before tax | 16,701 | (7,304) | 4,171 | (13,556) | |||||||||
Income tax (provision) benefit | (2,195) | -- | (2,204) | 87 | |||||||||
Net Income (Loss) | 14,506 | (7,304) | 1,967 | (13,469) | |||||||||
Net (Loss) Income Attributable to Non-controlling | (253) | 19 | (235) | 9 | |||||||||
Net Income (Loss) Attributable to Stockholders of | $ | 14,759 | $ | (7,323) | $ | 2,202 | $ | (13,478) | |||||
Net Income (Loss) Per Share - Basic | $ | 0.13 | $ | (0.32) | $ | 0.02 | $ | (0.97) | |||||
Net Income (Loss) Per Share - Diluted | $ | 0.13 | $ | (0.32) | $ | 0.02 | $ | (0.97) | |||||
Weighted Average Shares Outstanding | |||||||||||||
Basic | 110,040,532 | 22,823,976 | 94,577,520 | 13,931,245 | |||||||||
Diluted | 110,041,378 | 22,823,976 | 94,591,619 | 13,931,245 | |||||||||
Comprehensive Income (Loss) | |||||||||||||
Net Income (Loss) | $ | 14,506 | $ | (7,304) | $ | 1,967 | (13,469) | ||||||
Unrealized foreign exchange (loss) gain from | 52 | 318 | (619) | (295) | |||||||||
Comprehensive Income (Loss) | $ | 14,558 | $ | (6,986) | $ | 1,348 | $ | (13,764) | |||||
INPIXON AND SUBSIDIARIES | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
(In thousands) | ||||||
For the Six Months Ended | ||||||
June 30, | ||||||
2021 | 2020 | |||||
(Unaudited) | ||||||
Cash Flows Used In Operating Activities | ||||||
Net Income (loss) | $ | 1,967 | $ | (13,469) | ||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||
Depreciation and amortization | 625 | 384 | ||||
Amortization of intangible assets | 2,007 | 1,524 | ||||
Amortization of right of use asset | 370 | 356 | ||||
Stock based compensation | 7,149 | 685 | ||||
Loss on exchange of debt for equity | 30 | 132 | ||||
Amortization of debt discount | 224 | 1,909 | ||||
Accrued interest income, related party | (1,627) | (32) | ||||
Unrealized gain on note | (490) | -- | ||||
(Recovery) provision for the valuation allowance for held for sale loan | (7,345) | 835 | ||||
Provision for the valuation allowance for related party receivable | -- | 648 | ||||
Gain on settlement of related party promissory note and loan related party receivable | (49,817) | -- | ||||
Deferred income tax | (4,507) | (87) | ||||
Unrealized loss on equity securities | 28,965 | -- | ||||
Other | 57 | 21 | ||||
Changes in operating assets and liabilities: | ||||||
Accounts receivable and other receivables | 532 | (107) | ||||
Inventory | (555) | 22 | ||||
Prepaid expenses and other current assets | (319) | (905) | ||||
Other assets | 203 | (13) | ||||
Accounts payable | (331) | (1,539) | ||||
Accrued liabilities | 2,494 | (593) | ||||
Income tax liabilities | 6,711 | -- | ||||
Deferred revenue | (238) | 105 | ||||
Operating lease obligation | (364) | (362) | ||||
Other liabilities | 96 | 117 | ||||
Net Cash Used in Operating Activities | (14,163) | (10,369) | ||||
Cash Flows Used in Investing Activities | ||||||
Purchase of property and equipment | (149) | (39) | ||||
Purchases of capitalized software | (373) | (433) | ||||
Purchases of other short term investments | (2,000) | -- | ||||
Purchases of treasury bills | (63,362) | -- | ||||
Sales of treasury bills | 28,000 | -- | ||||
Purchase of Systat licensing agreement | (900) | -- | ||||
Acquisition of Game Your Game | 184 | -- | ||||
Acquisition of CXApp | (15,186) | -- | ||||
Acquisition of Visualix | (61) | -- | ||||
Net Cash Flows Used in Investing Activities | (53,847) | (472) | ||||
Cash From Financing Activities | ||||||
Net repayments to bank facility | -- | (150) | ||||
Net proceeds from issuance of common stock and warrants | 77,853 | 41,771 | ||||
Taxes paid related to net share settlement of restricted stock units | (1,687) | -- | ||||
Net proceeds from notes payable | -- | 1 | ||||
Loans to related party | (117) | (1,035) | ||||
Repayments from related party | -- | 200 | ||||
Net proceeds from promissory notes | -- | 5,000 | ||||
Repayment of CXApp acquisition liability | (137) | -- | ||||
Repayment of acquisition liability to Nanotron shareholders | (467) | -- | ||||
Repayment of acquisition liability to Locality shareholders | (500) | (250) | ||||
Net Cash Provided By Financing Activities | 74,945 | 45,537 | ||||
Effect of Foreign Exchange Rate on Changes on Cash | (19) | (15) | ||||
Net Increase in Cash, Cash Equivalents and Restricted Cash | 6,916 | 34,681 | ||||
Cash, Cash Equivalents and Restricted Cash - Beginning of period | 17,996 | 4,849 | ||||
Cash, Cash Equivalents and Restricted Cash - End of period | $ | 24,912 | $ | 39,530 | ||
Reconciliation of Non-GAAP Financial Measures: | ||||||||
For the Three Months Ended | For the Six Months Ended | |||||||
(In thousands) | June 30, | June 30, | ||||||
2021 | 2020 | 2021 | 2020 | |||||
Net loss attributable to common stockholders | 14,759 | (7,323) | 2,202 | (13,478) | ||||
Adjustments: | ||||||||
Non-recurring one-time charges: | ||||||||
Loss on exchange of debt for equity | - | 47 | 30 | 132 | ||||
(Recovery) provision for valuation allowance on held for sale loan | (7,462) | 835 | (7,345) | 835 | ||||
Provision for the valuation allowance related party receivable | - | 648 | - | 648 | ||||
Gain on related party loan held for sale | (49,817) | - | (49,817) | - | ||||
Unrealized loss on equity securities | 28,965 | - | 28,965 | - | ||||
Acquisition transaction/financing costs | 535 | 169 | 1,005 | 196 | ||||
Earn out Compensation Expense | 2,059 | - | 2,059 | - | ||||
Professional service fees | 422 | - | 771 | - | ||||
Unrealized gain on note | (128) | - | (491) | - | ||||
Stock-based compensation – compensation and related benefits | 2,053 | 286 | 7,149 | 685 | ||||
Interest expense, net | (1,555) | 777 | (1,206) | 1,397 | ||||
Income tax provision (benefit) | 2,195 | - | 2,204 | (87) | ||||
Depreciation and amortization | 1,695 | 682 | 2,638 | 1,908 | ||||
Adjusted EBITDA | (6,279) | (3,879) | (11,836) | (7,764) | ||||
For the Three Months Ended | For the Six Months Ended | |||||||
(In thousands, except share data) | June 30, | June 30, | ||||||
2021 | 2020 | 2021 | 2020 | |||||
Net income (loss) attributable to common stockholders | 14,759 | (7,323) | 2,202 | (13,478) | ||||
Adjustments: | ||||||||
Non-recurring one-time charges: | ||||||||
Loss on exchange of debt for equity | - | 47 | 30 | 132 | ||||
(Recovery) provision for valuation allowance on held for sale loan | (7,462) | 835 | (7,345) | 835 | ||||
Provision for the valuation allowance related party receivable | - | 648 | - | 648 | ||||
Gain on related party loan held for sale | (49,817) | - | (49,817) | - | ||||
Unrealized loss on equity securities | 28,965 | - | 28,965 | - | ||||
Acquisition transaction/financing costs | 535 | 169 | 1,005 | 196 | ||||
Earnout compensation expense | 2,059 | - | 2,059 | - | ||||
Professional service fees | 422 | - | 771 | - | ||||
Unrealized gain on note | (128) | - | (491) | - | ||||
Stock-based compensation – compensation and related benefits | 2,053 | 286 | 7,149 | 685 | ||||
Amortization of intangibles | 1,361 | 508 | 2,011 | 1,524 | ||||
Proforma non-GAAP net loss | (7,253) | (4,830) | (13,461) | (9,458) | ||||
Proforma non-GAAP net loss per share - Basic | (0.07) | (0.21) | (0.14) | (0.68) | ||||
Proforma non-GAAP net loss per share - Diluted | (0.07) | (0.21) | (0.14) | (0.68) | ||||
Weighted average shares outstanding | ||||||||
Basic | 110,040,532 | 22,823,976 | 94,577,520 | 13,931,245 | ||||
Diluted | 110,041,378 | 22,823,976 | 94,591,619 | 13,931,245 | ||||
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SOURCE Inpixon
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