Impinj Reports First Quarter 2022 Financial Results

Rhea-AI Summary

Impinj, a leader in RAIN RFID technology, reported strong first-quarter results for 2022, with revenue reaching $53.1 million. The company achieved a GAAP gross margin of 54.2% and a non-GAAP gross margin of 57.0%. Despite a GAAP net loss of $10.5 million or $(0.42) per diluted share, Impinj posted a non-GAAP net income of $2.4 million or $0.09 per diluted share. The company remains optimistic about continued demand for its products, reflecting a solid investment in growth.

Positive

• Record revenue of $53.1 million.
• GAAP gross margin of 54.2% and non-GAAP gross margin of 57.0%.
• Non-GAAP net income of $2.4 million or $0.09 per diluted share.

Negative

• GAAP net loss of $10.5 million, or loss of $(0.42) per diluted share.

SEATTLE--(BUSINESS WIRE)-- Impinj, Inc. (NASDAQ: PI), a leading RAIN RFID provider and Internet of Things pioneer, today released its financial results for the first quarter ended March 31, 2022.

“Our first-quarter results were strong, with demand for our endpoint ICs, reader ICs, readers and gateways all showing extraordinary strength,” said Chris Diorio, Impinj co-founder and CEO. “We delivered record revenue and solid profitability while investing in our team, company and platform.”

First Quarter 2022 Financial Summary

• Revenue of $53.1 million
• GAAP gross margin of 54.2%; non-GAAP gross margin of 57.0%
• GAAP net loss of $10.5 million, or loss of $(0.42) per diluted share using 25.0 million shares
• Adjusted EBITDA of 3.5 million
• Non-GAAP net income of 2.4 million, or income of $0.09 per diluted share using 27.0 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.

Second Quarter 2022 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 second quarter 2022 (in millions, except per share data):

		Three Months Ending
		June 30, 2022
Revenue		$54.0 to $56.0
GAAP Net loss		($13.5) to ($12.0)
Adjusted EBITDA income (loss)		$0.1 to $1.6
GAAP Weighted-average shares — basic and diluted		25.30 to 25.50
GAAP Net loss per share — basic and diluted		($0.54 ) to ($0.47 )
Non-GAAP net income (loss)		($1.1 ) to $0.4
Non-GAAP Weighted-average shares — basic		25.30 to 25.50
Non-GAAP Weighted-average shares — diluted		25.30 to 27.20
Non-GAAP Net income (loss) per share — basic and diluted		($0.05) to $0.01

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, April 27, 2022 at 5:00 p.m. ET / 2:00 p.m. PT to discuss its first quarter 2022 results, as well as its outlook for its second quarter 2022. Interested parties may access the call by dialing +1-412-317-5196. A live webcast and replay will also be available on the company’s website at investor.impinj.com. Following the call, a telephonic replay will be available for five business days and may be accessed by dialing +1-412-317-0088 and entering passcode 4398646.

Management’s prepared written remarks, along with quarterly financial data, will be made available on our website at investor.impinj.com along 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, our prospects, the impact of Covid-19, the impact of silicon wafer availability and supply, and financial considerations for second quarter of 2022 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)
	March 31, 2022 (1)				December 31, 2021 (1)
Assets:
Current assets:
Cash and cash equivalents	$	63,543			$	123,903
Short-term investments		101,724				69,443
Accounts receivable, net		38,533				35,449
Inventory		31,561				21,958
Prepaid expenses and other current assets		7,195				5,049
Total current assets		242,556				255,802
Long-term investments		28,144				14,225
Property and equipment, net		29,133				27,500
Operating lease right-of-use assets		10,863				11,667
Other non-current assets		2,365				2,462
Goodwill		3,881				3,881
Total assets	$	316,942			$	315,537
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable	$	9,103			$	11,732
Accrued compensation and employee related benefits		4,590				6,365
Accrued and other current liabilities		3,878				2,481
Current portion of operating lease liabilities		3,967				4,143
Restructuring liabilities		554				591
Current portion of long-term debt		9,643				9,633
Current portion of deferred revenue		907				558
Total current liabilities		32,642				35,503
Long-term debt, net of current portion		279,054				278,661
Operating lease liabilities, net of current portion		11,102				11,934
Other long-term liabilities		113				279
Deferred revenue, net of current portion		320				236
Total liabilities		323,231				326,613
Stockholders' equity:
Common stock, $0.001 par value		25				25
Additional paid-in capital		367,347				351,422
Accumulated other comprehensive (loss) income		(716	)			(39	)
Accumulated deficit		(372,945	)			(362,484	)
Total stockholders' equity		(6,289	)			(11,076	)
Total liabilities and stockholders' equity	$	316,942			$	315,537
(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 under both periods are presented under ASU 2020-06.

IMPINJ, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data, unaudited)
		Three Months Ended
		March 31,
		2022				2021
Revenue		$	53,144			$	45,248
Cost of revenue			24,365				23,267
Gross profit			28,779				21,981
Operating expenses:
Research and development			17,989				13,791
Sales and marketing			9,299				7,645
General and administrative			10,806				8,154
Restructuring costs			—				1,263
Total operating expenses			38,094				30,853
Loss from operations			(9,315	)			(8,872	)
Other income, net			164				23
Interest expense			(1,261	)			(525	)
Loss before income taxes			(10,412	)			(9,374	)
Income tax expense			(49	)			(42	)
Net loss		$	(10,461	)		$	(9,416	)
Net loss per share — basic and diluted		$	(0.42	)		$	(0.40	)
Weighted-average shares — basic and diluted			24,980				23,671

IMPINJ, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited)
		Three Months Ended
		March 31,
		2022				2021
Operating activities:
Net loss		$	(10,461	)		$	(9,416	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation			1,508				1,040
Stock-based compensation			11,314				7,449
Accretion of discount or amortization of premium on investments			301				218
Amortization of debt issuance costs			403				94
Changes in operating assets and liabilities:
Accounts receivable			(3,084	)			1,498
Inventory			(9,603	)			8,262
Prepaid expenses and other assets			(2,142	)			880
Accounts payable			(2,768	)			(2,137	)
Accrued compensation and employee related benefits			(1,775	)			345
Accrued and other liabilities			1,279				722
Operating lease right-of-use assets			804				723
Operating lease liabilities			(1,008	)			(911	)
Restructuring liabilities			(37	)			1,235
Deferred revenue			433				(633	)
Net cash provided by (used in) operating activities			(14,836	)			9,369
Investing activities:
Purchases of investments			(67,085	)			(12,333	)
Proceeds from maturities of investments			20,000				25,000
Purchases of property and equipment			(3,050	)			(4,398	)
Net cash provided by (used in) investing activities			(50,135	)			8,269
Financing activities:
Principal payments on finance lease obligations			—				(2	)
Proceeds from exercise of stock options and employee stock purchase plan			4,611				8,524
Net cash provided by financing activities			4,611				8,522
Net increase (decrease) in cash and cash equivalents			(60,360	)			26,160
Cash and cash equivalents
Beginning of period			123,903				23,636
End of period		$	63,543			$	49,796

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 months ended March 31, 2022 and March 31, 2021, are presented under the new standard and we no longer recorded amortization of debt discount.

IMPINJ, INC. RECONCILIATIONS OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (in thousands, except percentages, unaudited)
		Three Months Ended
		March 31,
		2022				2021
GAAP Gross margin			54.2	%			48.6	%
Adjustments:
Depreciation			1.7	%			1.1	%
Stock-based compensation			1.1	%			0.6	%
Non-GAAP Gross margin			57.0	%			50.3	%
GAAP Net loss		$	(10,461	)		$	(9,416	)
Adjustments:
Depreciation			1,508				1,040
Stock-based compensation			11,314				7,449
Other income, net			(164	)			(23	)
Interest expense			1,261				525
Income tax expense			49				42
Restructuring costs			—				1,263
Adjusted EBITDA		$	3,507			$	880
GAAP Net loss		$	(10,461	)		$	(9,416	)
Adjustments:
Depreciation			1,508				1,040
Stock-based compensation			11,314				7,449
Restructuring costs			—				1,263
Non-GAAP Net income		$	2,361			$	336
Non-GAAP Net income per share:
Basic		$	0.09			$	0.01
Diluted		$	0.09			$	0.01
GAAP and non-GAAP Weighted-average shares — basic			24,980				23,671
GAAP Weighted-average shares — diluted			24,980				23,671
Dilutive shares from stock plans			2,001				1,983
Non-GAAP Weighted-average shares — diluted			26,981				25,654

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
		June 30,
		2022
GAAP Net loss		$	(12,790	)
Adjustments:
Forecasted Depreciation			1,620
Forecasted Stock-based compensation			10,750
Forecasted Interest expense			1,260
Forecasted Other income, net			(30	)
Forecasted Income tax expense			30
Adjusted EBITDA		$	840
GAAP Net loss		$	(12,790	)
Adjustments:
Forecasted Depreciation			1,620
Forecasted Stock-based compensation			10,750
Non-GAAP Net loss		$	(420	)
GAAP Net loss per share — basic and diluted		$	(0.50	)
Non-GAAP Net loss per share — basic and diluted		$	(0.02	)
GAAP and Non-GAAP weighted-average shares — basic and diluted			25,400

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220427005870/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

Source: Impinj, Inc.

FAQ

What were Impinj's Q1 2022 earnings results for stock symbol PI?

Impinj reported Q1 2022 revenue of $53.1 million, a GAAP net loss of $10.5 million, and non-GAAP net income of $2.4 million.

What is Impinj's financial outlook for Q2 2022?

Impinj has provided guidance for Q2 2022 based on current market conditions, though actual results may vary.

How did Impinj perform in Q1 2022 in terms of gross margin?

Impinj achieved a GAAP gross margin of 54.2% and a non-GAAP gross margin of 57.0% in Q1 2022.