Identiv Reports Second Quarter 2022 Results
Identiv reported strong Q2 2022 results, with total revenue increasing 16% year-over-year to $27.9 million. RFID revenue surged 41% and premises revenue rose 19%, significantly outpacing industry averages. Gross profit margins expanded sequentially, with GAAP at 37% and non-GAAP at 38%. The company maintained a debt-free balance sheet and reported a backlog of $34.2 million, a 23% increase year-over-year. Management expects revenues of $125 million to $135 million for FY 2022 and 30% to 35% growth for FY 2023, reflecting confidence in continued demand in the IoT sector.
- RFID revenue grew 41% year-over-year, surpassing industry averages.
- Total revenue increased 16% year-over-year to $27.9 million.
- GAAP gross profit margin improved to 37%, up from 36% in the previous quarter.
- Strong backlog of $34.2 million, up 23% year-over-year.
- Maintained debt-free status with $25.9 million in cash.
- Guidance raised for FY 2022, expecting revenues of $125 million to $135 million.
- GAAP net loss of $0.3 million compared to a profit of $2.5 million in Q2 2021.
RFID Revenue Grew
Premises Grew
Total Revenue Increases
GAAP Gross Profit Margin Expansion +87 bps Sequentially to
Non-GAAP Gross Profit Margin Expansion +97 bps Sequentially to
FREMONT, Calif., Aug. 03, 2022 (GLOBE NEWSWIRE) -- Identiv, Inc. (NASDAQ: INVE), global digital security and identification leader in the Internet of Things (IoT), reported financial results for the second quarter ended June 30, 2022, reflecting the company’s continued leadership in specialty RFID applications for the IoT sector.
Second Quarter 2022 and Recent Financial and Operational Highlights
- RFID revenues grew
41% year-over-year, consistent with long-term model growth rate. - Premises revenue grew
19% year-over-year, three times the average industry growth rate. - Second quarter total revenue grew
16% year-over-year to$27.9 million . - Sequential improvement in GAAP and non-GAAP gross profit margins to
37% and38% , respectively. - Exited the second quarter of 2022 with total backlog for all future shipments of
$34.2 million , up23% year-over-year. - Remained debt free while supporting a strong balance sheet to meet working capital requirements and accelerate growth in our core RFID market, with
$25.9 million of cash, cash equivalents, and restricted cash at quarter end. - Maintained
100% customer retention in RFID, broadening our base of RFID customers with new design wins and a company record 38 non-recurring engineering (NRE) contracts. - Launched first-to-market Battery-Assisted Pixel (BAP) cold-chain solution with IoT platform company Wiliot that incorporates both Bluetooth and RFID.
- Named RFID industry visionary and Founder of Smartrac Group Manfred Rietzler as a Strategic Advisor.
- Expanded engagement with OTACA Tequila for NFC-enabled smart packaging solution following outstanding customer engagement results during the initial pilot program.
- Supporting cannabis pilot across approximately 100 dispensaries with one of nation’s largest multi-state operators (MSOs).
- Awarded NFC Forum 2022 Innovation Award for Identiv-powered Spoken Rx accessibility solution developed for CVS.
Second Quarter 2022 Financial Results
Revenue for the second quarter of 2022 was
Revenues in our Identity segment grew
GAAP gross profit margin was
GAAP operating expenses, including research and development, sales, and marketing, and general and administrative were
GAAP net loss was
Non-GAAP adjusted EBITDA in the second quarter of 2022 was
Management Commentary
“We continue to make progress securing our position as a leading solutions provider in the IoT sector, with RFID revenue up
“We’re well-positioned to continue growing strongly regardless of the macroeconomic environment. We expect demand in our core end markets – medical devices in RFID and security in Premises – to be recession-resistant. Furthermore, we are laser focused on expanding our margins, building upon the progress we have made as we work towards achieving scale. Our above-plan non-GAAP adjusted EBITDA reflects strong execution of our RFID and Premises growth strategy, which remains our top priority in 2022. Combined with the sustained outperformance of our Premises business and proactive supply chain management, we expect to maintain our strategic growth trajectory through the second half of 2022 and into 2023.”
Identiv CFO Justin Scarpulla added, “Our second quarter financial performance reflects our continued progress towards reaching our long-term operating model, with the delivery of sequential and year-over-year growth in revenue, sequential increase in gross profit margin and positive non-GAAP adjusted EBITDA. Our total backlog of orders grew
Financial Outlook
Identiv provides guidance based on current market conditions and expectations. Momentum exiting the second quarter of 2022, combined with a robust backlog, gives management confidence in the company's growth expectations for fiscal years 2022 and 2023. Management is expanding its guidance range for fiscal year 2022, with expected revenues of
Conference Call
Identiv management will hold a conference call today (August 3, 2022) at 5:00 p.m. ET (2:00 p.m. PT) to discuss the company’s second quarter 2022 financial results. A question-and-answer session will follow management's presentation.
Toll-Free Number: +1 877.545.0523
International Number: +1 973.528.0016
Call ID: 891291
Webcast link: Register and Join
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at +1.949.574.3860.
The conference call will be broadcast simultaneously and available for replay here.
The replay of the call will be available after 8 PM ET on the same day through August 17, 2022 under +1 877.481.4010 (Toll-Free Replay Number) and +1 919.882.2331 (International Replay Number) with Replay ID: 46119.
About Identiv
Identiv, Inc. is a global leader in digitally securing the physical world. Identiv's platform encompasses RFID and NFC, cybersecurity, and the full spectrum of physical access, video, and audio security. Identiv is a publicly traded company, and its common stock is listed on the NASDAQ Stock Market LLC in the U.S. under the symbol “INVE.” For more information, visit identiv.com.
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 profit and gross profit margins, and non-GAAP operating expenses. Identiv uses non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating ongoing operational performance. Identiv believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. Non-GAAP gross profit and gross profit margin exclude stock-based compensation and amortization and depreciation. Non-GAAP adjusted EBITDA excludes items that are included in GAAP net income (loss), GAAP operating expenses, and GAAP gross profit margin, and excludes income tax benefit (provision), interest expense, foreign currency (gains) losses, stock-based compensation, amortization and depreciation, restructuring and severance, and gain on investment. Non-GAAP operating expenses exclude stock-based compensation, amortization and depreciation, and restructuring and severance. For historical periods, the exclusions are detailed in the reconciliation table included in this press release. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures as detailed in this press release.
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 2022 expectations and 2022 and 2023 guidance and the Company’s ability to meet such guidance, the Company’s beliefs regarding its ability to achieve its business and strategic objectives and growth trajectory and expected benefits thereof, its business strategy and the drivers of momentum in its business, the Company’s beliefs regarding its capital and the sufficiency and uses thereof, the Company’s beliefs regarding its supply chain, the Company’s beliefs regarding customer demand in its core end markets, customer production and design wins and the associated benefits, the Company’s beliefs regarding its ability to execute on its key initiatives and the potential benefits thereof, the Company’s beliefs regarding its competitive position, and the Company’s beliefs regarding design wins, backlog and future orders is a forward-looking statement. 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, the success of its products and strategic partnerships, industry trends and seasonality, the impact of inflation and increases in prices, the impact of COVID-19, the effects of shortages of semiconductors and the other factors discussed in its periodic reports, including its Annual Report on Form 10-K for the year ended December 31, 2021, Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, and subsequent reports filed with the U.S. Securities and Exchange Commission. All forward-looking statements are based on information available to us on the date hereof, and we assume no obligation to update such statements.
Investor Relations Contact:
Matt Glover and Sophie Pearson
Gateway Investor Relations
+1 949.574.3860
IR@identiv.com
Media Contact:
press@identiv.com
| Identiv, Inc. | |||||||||||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||||||||||
| (in thousands, except per share data) | |||||||||||||||||||
| (unaudited) | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||
| 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||
| Net revenue | $ | 27,857 | $ | 25,061 | $ | 23,993 | $ | 52,918 | $ | 46,155 | |||||||||
| Cost of revenue | 17,647 | 16,095 | 15,153 | 33,742 | 29,623 | ||||||||||||||
| Gross profit | 10,210 | 8,966 | 8,840 | 19,176 | 16,532 | ||||||||||||||
| Operating expenses: | |||||||||||||||||||
| Research and development | 2,479 | 2,529 | 2,131 | 5,008 | 4,468 | ||||||||||||||
| Selling and marketing | 5,273 | 5,110 | 4,147 | 10,383 | 8,211 | ||||||||||||||
| General and administrative | 2,496 | 2,488 | 2,595 | 4,984 | 4,720 | ||||||||||||||
| Restructuring and severance | 223 | (140 | ) | 274 | 83 | 662 | |||||||||||||
| Total operating expenses | 10,471 | 9,987 | 9,147 | 20,458 | 18,061 | ||||||||||||||
| Loss from operations | (261 | ) | (1,021 | ) | (307 | ) | (1,282 | ) | (1,529 | ) | |||||||||
| Non-operating income (expense): | |||||||||||||||||||
| Interest expense, net | (37 | ) | (25 | ) | (144 | ) | (62 | ) | (389 | ) | |||||||||
| Gain on forgiveness of Paycheck Protection Program note | — | — | 2,946 | — | 2,946 | ||||||||||||||
| Gain on investment | 6 | 24 | — | 30 | — | ||||||||||||||
| Foreign currency gains, net | 95 | 19 | — | 114 | 46 | ||||||||||||||
| Income (loss) before income tax benefit (provision) | (197 | ) | (1,003 | ) | 2,495 | (1,200 | ) | 1,074 | |||||||||||
| Income tax benefit (provision) | (54 | ) | 4 | (29 | ) | (50 | ) | (73 | ) | ||||||||||
| Net income (loss) | (251 | ) | (999 | ) | 2,466 | (1,250 | ) | 1,001 | |||||||||||
| Cumulative dividends on Series B convertible preferred stock | (300 | ) | (298 | ) | (286 | ) | (598 | ) | (570 | ) | |||||||||
| Net income (loss) available to common stockholders | $ | (551 | ) | $ | (1,297 | ) | $ | 2,180 | $ | (1,848 | ) | $ | 431 | ||||||
| Net income (loss) per common share: | |||||||||||||||||||
| Basic | $ | (0.02 | ) | $ | (0.06 | ) | $ | 0.10 | $ | (0.08 | ) | $ | 0.02 | ||||||
| Diluted | $ | (0.02 | ) | $ | (0.06 | ) | $ | 0.09 | $ | (0.08 | ) | $ | 0.02 | ||||||
| Weighted average shares used in computing net income (loss) per common share: | |||||||||||||||||||
| Basic | 22,639 | 22,574 | 21,908 | 22,606 | 20,185 | ||||||||||||||
| Diluted | 22,639 | 22,574 | 28,751 | 22,606 | 21,092 | ||||||||||||||
| Identiv, Inc. | |||||||||
| Condensed Consolidated Balance Sheets | |||||||||
| (in thousands) | |||||||||
| (unaudited) | |||||||||
| June 30, | March 31, | December 31, | |||||||
| 2022 | 2022 | 2021 | |||||||
| ASSETS | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 25,016 | $ | 27,614 | $ | 28,553 | |||
| Restricted cash | 905 | 1,074 | 1,254 | ||||||
| Accounts receivable, net of allowances | 20,951 | 19,452 | 19,963 | ||||||
| Inventories | 22,235 | 20,493 | 19,924 | ||||||
| Prepaid expenses and other current assets | 3,495 | 2,673 | 3,032 | ||||||
| Total current assets | 72,602 | 71,306 | 72,726 | ||||||
| Property and equipment, net | 5,153 | 4,341 | 4,066 | ||||||
| Operating lease right-of-use assets | 1,498 | 1,780 | 2,088 | ||||||
| Intangible assets, net | 5,869 | 6,182 | 6,445 | ||||||
| Goodwill | 10,250 | 10,288 | 10,268 | ||||||
| Other assets | 1,055 | 1,012 | 1,070 | ||||||
| Total assets | $ | 96,427 | $ | 94,909 | $ | 96,663 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | $ | 13,809 | $ | 11,335 | $ | 10,502 | |||
| Operating lease liabilities | 949 | 1,143 | 1,269 | ||||||
| Deferred revenue | 2,035 | 1,489 | 2,153 | ||||||
| Accrued compensation and related benefits | 2,671 | 2,675 | 3,150 | ||||||
| Other accrued expenses and liabilities | 2,343 | 3,316 | 3,774 | ||||||
| Total current liabilities | 21,807 | 19,958 | 20,848 | ||||||
| Long-term operating lease liabilities | 645 | 748 | 938 | ||||||
| Long-term deferred revenue | 444 | 295 | 280 | ||||||
| Other long-term liabilities | 25 | 74 | 85 | ||||||
| Total liabilities | 22,921 | 21,075 | 22,151 | ||||||
| Total stockholders' equity | 73,506 | 73,834 | 74,512 | ||||||
| Total liabilities and stockholders' equity | $ | 96,427 | $ | 94,909 | $ | 96,663 | |||
| Identiv, Inc. | |||||||||||||||||||
| Reconciliation of GAAP and Non-GAAP Financial Information | |||||||||||||||||||
| (in thousands) | |||||||||||||||||||
| (unaudited) | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||
| 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||
| Reconciliation of GAAP gross profit margin and non-GAAP gross profit margin | |||||||||||||||||||
| GAAP gross profit | $ | 10,210 | $ | 8,966 | $ | 8,840 | $ | 19,176 | $ | 16,532 | |||||||||
| Reconciling items included in GAAP gross profit: | |||||||||||||||||||
| Stock-based compensation | 44 | 56 | 48 | 100 | 81 | ||||||||||||||
| Amortization and depreciation | 344 | 270 | 254 | 614 | 481 | ||||||||||||||
| Total reconciling items included in GAAP gross profit | 388 | 326 | 302 | 714 | 562 | ||||||||||||||
| Non-GAAP gross profit | $ | 10,598 | $ | 9,292 | $ | 9,142 | $ | 19,890 | $ | 17,094 | |||||||||
| Non-GAAP gross profit margin | |||||||||||||||||||
| Reconciliation of GAAP operating expenses to non-GAAP operating expenses | |||||||||||||||||||
| GAAP operating expenses | $ | 10,471 | $ | 9,987 | $ | 9,147 | $ | 20,458 | $ | 18,061 | |||||||||
| Reconciling items included in GAAP operating expenses: | |||||||||||||||||||
| Stock-based compensation | (774 | ) | (839 | ) | (649 | ) | (1,613 | ) | (1,374 | ) | |||||||||
| Amortization and depreciation | (232 | ) | (239 | ) | (238 | ) | (471 | ) | (477 | ) | |||||||||
| Restructuring and severance | (223 | ) | 140 | (274 | ) | (83 | ) | (662 | ) | ||||||||||
| Total reconciling items included in GAAP operating expenses | (1,229 | ) | (938 | ) | (1,161 | ) | (2,167 | ) | (2,513 | ) | |||||||||
| Non-GAAP operating expenses | $ | 9,242 | $ | 9,049 | $ | 7,986 | $ | 18,291 | $ | 15,548 | |||||||||
| Reconciliation of GAAP net income (loss) to non-GAAP adjusted EBITDA | |||||||||||||||||||
| GAAP net income (loss) | $ | (251 | ) | $ | (999 | ) | $ | 2,466 | $ | (1,250 | ) | $ | 1,001 | ||||||
| Reconciling items included in GAAP net income (loss): | |||||||||||||||||||
| Income tax provision (benefit) | 54 | (4 | ) | 29 | 50 | 73 | |||||||||||||
| Interest expense, net | 37 | 25 | 144 | 62 | 389 | ||||||||||||||
| Gain on forgiveness of Paycheck Protection Program note | — | — | (2,946 | ) | — | (2,946 | ) | ||||||||||||
| Gain on investment | (6 | ) | (24 | ) | — | (30 | ) | — | |||||||||||
| Foreign currency gains (losses), net | (95 | ) | (19 | ) | — | (114 | ) | (46 | ) | ||||||||||
| Stock-based compensation | 818 | 895 | 697 | 1,713 | 1,455 | ||||||||||||||
| Amortization and depreciation | 576 | 509 | 492 | 1,085 | 958 | ||||||||||||||
| Restructuring and severance | 223 | (140 | ) | 274 | 83 | 662 | |||||||||||||
| Total reconciling items included in GAAP net income (loss) | 1,607 | 1,242 | (1,310 | ) | 2,849 | 545 | |||||||||||||
| Non-GAAP adjusted EBITDA | $ | 1,356 | $ | 243 | $ | 1,156 | $ | 1,599 | $ | 1,546 | |||||||||
FAQ
What were Identiv's revenue figures for Q2 2022?
How much did RFID revenue grow for Identiv in Q2 2022?
What is Identiv's guidance for fiscal year 2022?
What is the gross profit margin for Identiv in Q2 2022?
What is the total backlog for Identiv as of Q2 2022?
