Identiv Reports Fourth Quarter and Fiscal Year 2022 Results
Identiv, Inc. (NASDAQ: INVE) reported a record revenue of $112.9 million for FY 2022, a 9% increase from FY 2021. The company’s fiscal year gross margin was 36.3%, while non-GAAP adjusted EBITDA grew 33% year-over-year to $5.4 million. Backlog increased 16% to $35.0 million, and RFID units shipped surged 28% sequentially. Despite a net loss of $0.4 million for FY 2022, the fourth quarter saw a revenue uptick to $29.0 million. The management anticipates FY 2023 revenues between $125 million and $130 million, signaling continued growth prospects.
- Record FY 2022 revenue at $112.9 million, up 9% from FY 2021.
- Gross margin for FY 2022 was 36.3%, with non-GAAP adjusted EBITDA increasing 33% to $5.4 million.
- Total backlog grew 16% year-over-year to $35.0 million.
- 28% sequential increase in RFID units shipped in Q4 2022.
- GAAP net loss of $0.4 million for FY 2022 compared to a net income of $1.6 million in FY 2021.
- Fourth quarter non-GAAP adjusted EBITDA decreased to $1.7 million from $2.0 million in the prior quarter.
FY 2022 Revenue was a Record
Total Backlog Grew
FY 2022 Revenue from Premises Up
RFID Units Shipped Grew
Fiscal Year 2022, Fourth Quarter 2022, and Recent Financial and Operational Highlights
-
Fiscal year 2022 revenue was a record
; fourth quarter revenue grew to$112.9 million .$29.0 million -
Fiscal year 2022 GAAP gross margin was
36.3% ; fiscal year 2022 non-GAAP gross margin improved to37.6% . -
Fourth quarter 2022 GAAP gross margin was
36.5% ; fourth quarter 2022 non-GAAP gross margin improved 376 basis points year-over-year to37.9% . -
Exited the fourth quarter of 2022 with total backlog for all future shipments of
, up$35.0 million 16% year-over-year. Backlog for shipments in Q1 2023 grew22% year-over-year to .$14.3 million -
Premises revenue in fiscal year 2022 increased
17% year-over-year, more than double the average industry growth rate, to a record .$45.5 million -
GAAP net loss in fiscal year 2022 was
, or$0.4 million per basic and diluted share; fourth quarter 2022 GAAP net income was$0.07 , or$0.3 million per basic and diluted share.$0.00 -
Fiscal year non-GAAP adjusted EBITDA grew
33% year-over-year to ; fourth quarter 2022 non-GAAP adjusted EBITDA grew to$5.4 million .$1.7 million - Shipped 58 million RFID units in the fourth quarter 2022 while continuing to manage supply headwinds for key components.
-
Remained debt free with ample working capital resources, with
of cash, cash equivalents, and restricted cash at fiscal year-end.$17.1 million -
Maintained
100% customer retention in RFID while managing 54 non-recurring engineering (NRE) contracts. - Shipped first million units of Wiliot’s IoT Pixel tags, with remainder of initial 25-million-unit order expected to ship in the first half of fiscal year 2023.
- Launched Identiv Hyperconverged Infrastructure (HCI), in partnership with Scale Computing, to streamline future deployments of video and access control applications into a single, turnkey solution.
- Announced strategic partnership with Spanish RFID manufacturer Trace-ID to produce and sell complex, ruggedized UHF RFID devices for industrial applications.
-
Secured four new federal agency customers within the
Department of the Interior and expect to add more agencies to our customer base in 2023. - Launched Bitse.io IoT software platform, expanding our value-add to IoT customers with a bundled solution that manages their IoT devices and data analytics.
- Expanded our IoT product portfolio with best-in-class NFC and HF solutions based upon chip supplier STMicroelectronic’s ST25TN chips.
-
Announced a comprehensive Velocity Vision deployment at
San Diego International Airport (SAN), incorporating a wide range of Identiv’s physical security solutions within the airport’s access control and surveillance infrastructure.
Fiscal Year 2022 Financial Results
Revenue for fiscal year 2022 was
Revenues in our Premises segment grew
GAAP gross margin was
GAAP operating expenses, including research and development, sales, and marketing, and general and administrative were
GAAP net loss in fiscal year 2022 was
Non-GAAP adjusted EBITDA for fiscal year 2022 was
Fourth Quarter 2022 Financial Results
Revenue for the fourth quarter of 2022 was
Revenues in our Premises segment grew
GAAP gross margin was
GAAP operating expenses, including research and development, sales, and marketing, and general and administrative were
GAAP net income was
Non-GAAP adjusted EBITDA in the fourth quarter of 2022 was
Management Commentary
“We believe the financial and operational milestones we achieved in fiscal year 2022 have strengthened our foundation for continued revenue growth and margin expansion in fiscal year 2023,” said
“In our Premises segment, we continue to outperform the average industry growth rate, taking market share and sustaining strong gross margins. In 2022 we expanded our product range and our sales teams, increasing our share of wallet with both commercial and Federal customers. We announced a significant deployment at the
Identiv CFO
Financial Outlook
Conference Call
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International Number: 973-528-0011
Call ID: 457420
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About
Non-GAAP Financial Measures
This press release includes financial information that has not been prepared in accordance with GAAP, including non-GAAP adjusted EBITDA, non-GAAP gross margins, and non-GAAP operating expenses.
Note Regarding Forward-Looking Information
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those involving future events and future results that are based on current expectations as well as the current beliefs and assumptions of the Company’s management and can be identified by words such as “anticipates”, “believes”, “plans”, “will”, “intends”, “expects”, and similar references to the future. Any statement that is not a historical fact, including statements regarding the Company’s expectations regarding future operating and financial outlook and performance, including statements regarding 2023 guidance; the Company’s beliefs regarding its ability to achieve its business and strategic objectives and growth trajectory and expected benefits thereof; the Company’s focus; the Company’s belief that its focus maximizes its long-term growth as well as its financial strength to support that growth; the Company’s belief that it is well-positioned for growth in 2023; the Company’s opportunities in medical devices, mobile devices, and smart packaging, expected timeline to ramp up and its belief that they will reach scale; the Company’s expectations regarding its products, including expected benefits thereof and timing of delivers are forward-looking statements. Forward-looking statements are only predictions and are subject to a number of risks and uncertainties, many of which are outside our control, which could cause actual results to differ materially and adversely from those expressed in any forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to the Company’s ability to continue the momentum in its business, its ability to successfully execute its business strategy, its ability to capitalize on trends in its business, its ability to satisfy customer demand and expectations, the level and timing of customer orders and changes/cancellations, the success of its products and strategic partnerships, industry trends and seasonality, the impact of macroeconomic conditions, inflation and increases in prices, the impact of COVID-19, the effects of shortages of semiconductors and other components, and the other factors discussed in its periodic reports, including its Annual Report on Form 10-K for the year ended
Condensed Consolidated Statements of Operations | |||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
|
|||||||||||||||||||
|
Three Months Ended | Twelve Months Ended | |||||||||||||||||
|
|||||||||||||||||||
|
2022 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||||
Net revenue |
$ |
29,001 |
|
$ |
30,996 |
|
$ |
28,517 |
|
$ |
112,915 |
|
$ |
103,769 |
|
||||
Cost of revenue |
|
18,421 |
|
|
19,808 |
|
|
19,100 |
|
|
71,971 |
|
|
66,702 |
|
||||
Gross profit |
|
10,580 |
|
|
11,188 |
|
|
9,417 |
|
|
40,944 |
|
|
37,067 |
|
||||
Operating expenses: |
|||||||||||||||||||
Research and development |
|
2,283 |
|
|
2,625 |
|
|
2,117 |
|
|
9,916 |
|
|
8,673 |
|
||||
Selling and marketing |
|
5,021 |
|
|
5,326 |
|
|
4,351 |
|
|
20,730 |
|
|
17,033 |
|
||||
General and administrative |
|
2,806 |
|
|
2,639 |
|
|
4,771 |
|
|
10,429 |
|
|
11,891 |
|
||||
Restructuring and severance |
|
70 |
|
|
49 |
|
|
56 |
|
|
202 |
|
|
817 |
|
||||
Total operating expenses |
|
10,180 |
|
|
10,639 |
|
|
11,295 |
|
|
41,277 |
|
|
38,414 |
|
||||
Income (loss) from operations |
|
400 |
|
|
549 |
|
|
(1,878 |
) |
|
(333 |
) |
|
(1,347 |
) |
||||
Non-operating income (expense): |
|||||||||||||||||||
Interest expense, net |
|
(42 |
) |
|
(39 |
) |
|
(32 |
) |
|
(143 |
) |
|
(483 |
) |
||||
Gain on forgiveness of Paycheck Protection Program note |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,946 |
|
||||
Gain on investment |
|
— |
|
|
— |
|
|
— |
|
|
30 |
|
|
611 |
|
||||
Foreign currency gains (losses), net |
|
44 |
|
|
(3 |
) |
|
(77 |
) |
|
155 |
|
|
(79 |
) |
||||
Income (loss) before income tax benefit (provision) |
|
402 |
|
|
507 |
|
|
(1,987 |
) |
|
(291 |
) |
|
1,648 |
|
||||
Income tax benefit (provision) |
|
(63 |
) |
|
12 |
|
|
66 |
|
|
(101 |
) |
|
(28 |
) |
||||
Net income (loss) |
|
339 |
|
|
519 |
|
|
(1,921 |
) |
|
(392 |
) |
|
1,620 |
|
||||
Cumulative dividends on Series B convertible preferred stock |
|
(304 |
) |
|
(304 |
) |
|
(289 |
) |
|
(1,206 |
) |
|
(1,148 |
) |
||||
Net income (loss) available to common stockholders |
$ |
35 |
|
$ |
215 |
|
$ |
(2,210 |
) |
$ |
(1,598 |
) |
$ |
472 |
|
||||
|
|||||||||||||||||||
Net income (loss) per common share: |
|||||||||||||||||||
Basic |
$ |
0.00 |
|
$ |
0.01 |
|
$ |
(0.10 |
) |
$ |
(0.07 |
) |
$ |
0.02 |
|
||||
Diluted |
$ |
0.00 |
|
$ |
0.01 |
|
$ |
(0.10 |
) |
$ |
(0.07 |
) |
$ |
0.02 |
|
||||
|
|||||||||||||||||||
Weighted average shares used in computing net income (loss) per common share: |
|||||||||||||||||||
Basic |
|
22,737 |
|
|
22,682 |
|
|
22,504 |
|
|
22,659 |
|
|
21,340 |
|
||||
Diluted |
|
23,160 |
|
|
23,315 |
|
|
22,504 |
|
|
22,659 |
|
|
22,267 |
|
Condensed Consolidated Balance Sheets | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
2022 |
2022 |
2021 |
||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ |
16,650 |
$ |
21,202 |
$ |
28,553 |
||
Restricted cash |
|
487 |
|
698 |
|
1,254 |
||
Accounts receivable, net of allowances |
|
24,826 |
|
23,588 |
|
19,963 |
||
Inventories |
|
28,958 |
|
25,060 |
|
19,924 |
||
Prepaid expenses and other current assets |
|
4,177 |
|
3,908 |
|
3,032 |
||
Total current assets |
|
75,098 |
|
74,456 |
|
72,726 |
||
Property and equipment, net |
|
6,719 |
|
6,189 |
|
4,066 |
||
Operating lease right-of-use assets |
|
4,373 |
|
3,997 |
|
2,088 |
||
Intangible assets, net |
|
5,265 |
|
5,533 |
|
6,445 |
||
|
10,190 |
|
10,179 |
|
10,268 |
|||
Other assets |
|
1,120 |
|
1,046 |
|
1,070 |
||
Total assets | $ |
102,765 |
$ |
101,400 |
$ |
96,663 |
||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ |
14,760 |
$ |
15,074 |
$ |
10,502 |
||
Operating lease liabilities |
|
1,190 |
|
941 |
|
1,269 |
||
Deferred revenue |
|
2,068 |
|
2,072 |
|
2,153 |
||
Accrued compensation and related benefits |
|
2,757 |
|
2,753 |
|
3,150 |
||
Other accrued expenses and liabilities |
|
2,618 |
|
2,917 |
|
3,774 |
||
Total current liabilities |
|
23,393 |
|
23,757 |
|
20,848 |
||
Long-term operating lease liabilities |
|
3,366 |
|
3,185 |
|
938 |
||
Long-term deferred revenue |
|
587 |
|
474 |
|
280 |
||
Other long-term liabilities |
|
25 |
|
24 |
|
85 |
||
Total liabilities |
|
27,371 |
|
27,440 |
|
22,151 |
||
Total stockholders' equity |
|
75,394 |
|
73,960 |
|
74,512 |
||
Total liabilities and stockholders' equity | $ |
102,765 |
$ |
101,400 |
$ |
96,663 |
Reconciliation of GAAP and Non-GAAP Financial Information | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
2022 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||||
Reconciliation of GAAP gross profit margin and non-GAAP gross profit margin | |||||||||||||||||||
GAAP gross profit | $ |
10,580 |
|
$ |
11,188 |
|
$ |
9,417 |
|
$ |
40,944 |
|
$ |
37,067 |
|
||||
Reconciling items included in GAAP gross profit: | |||||||||||||||||||
Stock-based compensation |
|
53 |
|
|
38 |
|
|
53 |
|
|
191 |
|
|
183 |
|
||||
Amortization and depreciation |
|
363 |
|
|
335 |
|
|
269 |
|
|
1,312 |
|
|
1,009 |
|
||||
Total reconciling items included in GAAP gross profit |
|
416 |
|
|
373 |
|
|
322 |
|
|
1,503 |
|
|
1,192 |
|
||||
Non-GAAP gross profit | $ |
10,996 |
|
$ |
11,561 |
|
$ |
9,739 |
|
$ |
42,447 |
|
$ |
38,259 |
|
||||
Non-GAAP gross profit margin |
|
38 |
% |
|
37 |
% |
|
34 |
% |
|
38 |
% |
|
37 |
% |
||||
Reconciliation of GAAP operating expenses to non-GAAP operating expenses | |||||||||||||||||||
GAAP operating expenses | $ |
10,180 |
|
$ |
10,639 |
|
$ |
11,295 |
|
$ |
41,277 |
|
$ |
38,414 |
|
||||
Reconciling items included in GAAP operating expenses: | |||||||||||||||||||
Stock-based compensation |
|
(543 |
) |
|
(814 |
) |
|
(526 |
) |
|
(2,970 |
) |
|
(2,423 |
) |
||||
Amortization and depreciation |
|
(236 |
) |
|
(253 |
) |
|
(242 |
) |
|
(960 |
) |
|
(962 |
) |
||||
Loss on disposal of property and equipment |
|
(68 |
) |
|
— |
|
|
— |
|
|
(68 |
) |
|
— |
|
||||
Restructuring and severance |
|
(70 |
) |
|
(49 |
) |
|
(56 |
) |
|
(202 |
) |
|
(817 |
) |
||||
Total reconciling items included in GAAP operating expenses |
|
(917 |
) |
|
(1,116 |
) |
|
(824 |
) |
|
(4,200 |
) |
|
(4,202 |
) |
||||
Non-GAAP operating expenses | $ |
9,263 |
|
$ |
9,523 |
|
$ |
10,471 |
|
$ |
37,077 |
|
$ |
34,212 |
|
||||
Reconciliation of GAAP net income (loss) to non-GAAP adjusted EBITDA | |||||||||||||||||||
GAAP net income (loss) | $ |
339 |
|
$ |
519 |
|
$ |
(1,921 |
) |
$ |
(392 |
) |
$ |
1,620 |
|
||||
Reconciling items included in GAAP net income (loss): | |||||||||||||||||||
Income tax provision (benefit) |
|
63 |
|
|
(12 |
) |
|
(66 |
) |
|
101 |
|
|
28 |
|
||||
Interest expense, net |
|
42 |
|
|
39 |
|
|
32 |
|
|
143 |
|
|
483 |
|
||||
Gain on forgiveness of Paycheck Protection Program note |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(2,946 |
) |
||||
Gain on investment |
|
— |
|
|
— |
|
|
— |
|
|
(30 |
) |
|
(611 |
) |
||||
Loss on disposal of property and equipment |
|
68 |
|
|
— |
|
|
— |
|
|
68 |
|
|
— |
|
||||
Foreign currency gains (losses), net |
|
(44 |
) |
|
3 |
|
|
77 |
|
|
(155 |
) |
|
79 |
|
||||
Stock-based compensation |
|
596 |
|
|
852 |
|
|
579 |
|
|
3,161 |
|
|
2,606 |
|
||||
Amortization and depreciation |
|
599 |
|
|
588 |
|
|
511 |
|
|
2,272 |
|
|
1,971 |
|
||||
Restructuring and severance |
|
70 |
|
|
49 |
|
|
56 |
|
|
202 |
|
|
817 |
|
||||
Total reconciling items included in GAAP net income (loss) |
|
1,394 |
|
|
1,519 |
|
|
1,189 |
|
|
5,762 |
|
|
2,427 |
|
||||
Non-GAAP adjusted EBITDA | $ |
1,733 |
|
$ |
2,038 |
|
$ |
(732 |
) |
$ |
5,370 |
|
$ |
4,047 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230302005751/en/
Investor Relations Contact:
Director of Investor Relations
IR@identiv.com
Media Contact:
arose@identiv.com
Source:
FAQ
What were Identiv's FY 2022 revenue and net loss?
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