Impinj Reports Fourth Quarter and Full Year 2024 Financial Results

Rhea-AI Impact

(Moderate)

Rhea-AI Sentiment

(Negative)

Insights

Impinj's Q4 and full-year 2024 results reveal a company at an inflection point. The Q4 performance shows some pressure with a modest $2.7 million GAAP loss, but the full-year metrics paint a more robust picture with $40.8 million in GAAP net income on $366.1 million revenue.

The gross margin profile is particularly noteworthy. Q4's non-GAAP gross margin of 53.1% demonstrates strong pricing power and operational efficiency in the RFID space, where margins typically range from 35-45%. This suggests Impinj maintains competitive advantages in its core technology and manufacturing processes.

The resolution of patent litigation removes a significant overhang and potential future legal expenses, though investors should note management's cautionary tone regarding Q1 2025 headwinds. These headwinds likely relate to inventory adjustments among retail customers and broader semiconductor industry cyclicality.

Key metrics to monitor include:

Adjusted EBITDA of $15.0 million for Q4 and $65.9 million for the full year, indicating healthy cash generation
Non-GAAP diluted EPS of $0.48 for Q4 and $2.11 for the full year, showing solid profitability when excluding one-time items
Share count increase from 28.4M (GAAP) to 32.5M (non-GAAP) in Q4, suggesting potential dilution effects

The company's position in the RAIN RFID market remains strong, but near-term challenges could create volatility. The focus should be on monitoring customer inventory levels, new product adoption rates and the company's ability to maintain its premium margins amid potential industry headwinds.

02/05/2025 - 04:15 PM

SEATTLE--(BUSINESS WIRE)-- Impinj, Inc. (NASDAQ: PI), a leading RAIN RFID provider and Internet of Things pioneer, today released its financial results for the fourth quarter and year ended December 31, 2024.

“In 2024, we delivered strong financial results, successfully resolved our patent litigation and delivered market-leading products and innovations,” said Chris Diorio, Impinj co-founder and CEO. “Looking forward, we see first-quarter headwinds but intend to press our competitive advantages and emerge a stronger company.”

Fourth Quarter 2024 Financial Summary

Revenue of $91.6 million
GAAP gross margin of 50.5%; non-GAAP gross margin of 53.1%
GAAP net loss of $2.7 million, or loss of $0.09 per diluted share using 28.4 million shares
Adjusted EBITDA of $15.0 million
Non-GAAP net income of $14.5 million, or income of $0.48 per diluted share using 32.5 million shares

Full Year 2024 Financial Summary

Revenue of $366.1 million
GAAP gross margin of 51.6%; non-GAAP gross margin of 54.0%
GAAP net income of $40.8 million, or income of $1.39 per diluted share using 29.5 million shares
Adjusted EBITDA of $65.9 million
Non-GAAP net income of $62.9 million, or income of $2.11 per diluted share using 32.1 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.

First Quarter 2025 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 first quarter of 2025 (in millions, except per share data):

		Three Months Ending
		March 31, 2025
Revenue		$70.0 to $73.0
GAAP Net loss		($16.8) to ($15.3)
Adjusted EBITDA income		$1.1 to $2.6
GAAP Weighted-average shares — basic and diluted		28.6 to 28.8
GAAP Net loss per share — basic and diluted		($0.59) to ($0.53)
Non-GAAP Net income		$1.7 to $3.2
Non-GAAP Weighted-average shares — diluted		30.1 to 30.3
Non-GAAP Net income per share — diluted		$0.06 to $0.11

A reconciliation between GAAP and non-GAAP financial measures is provided in the "Non-GAAP Financial Measures" section below.

Conference Call Information

Impinj will host a conference call and webcast to discuss its fourth-quarter and full-year 2024 results and first-quarter 2025 outlook today, February 5, 2025 at 5:00 p.m. ET / 2:00 p.m. PT. Interested parties may access the call by dialing +1-412-317-1863. 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 4138753.

Management’s prepared written remarks, along with quarterly financial data, will be made available on Impinj’s 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 our strategy, investment plans and prospects, statements regarding conditions in the markets in which we compete as well as the broader economy, and our financial guidance and considerations for the first quarter of 2025 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)

	December 31, 2024			December 31, 2023
Assets:
Current assets:
Cash and cash equivalents	$	46,053		$	94,793
Short-term investments		118,661			18,440
Accounts receivable, net		56,802			54,919
Inventory		99,346			97,172
Prepaid expenses and other current assets		5,536			4,372
Total current assets		326,398			269,696
Long-term investments		74,871			—
Property and equipment, net		50,610			44,891
Intangible assets, net		10,291			13,913
Operating lease right-of-use assets		7,142			9,735
Other non-current assets		1,045			1,478
Goodwill		18,723			19,696
Total assets	$	489,080		$	359,409
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable	$	17,254		$	8,661
Accrued compensation and employee related benefits		22,309			8,519
Accrued and other current liabilities		2,684			8,614
Current portion of operating lease liabilities		3,589			3,373
Current portion of long-term debt		283,493			—
Current portion of deferred revenue		1,848			1,713
Total current liabilities		331,177			30,880
Long-term debt		—			281,855
Operating lease liabilities, net of current portion		5,719			9,360
Deferred tax liabilities, net		2,200			2,911
Deferred revenue, net of current portion		120			272
Total liabilities		339,216			325,278
Stockholders' equity:
Common stock, $0.001 par value		29			27
Additional paid-in capital		541,090			463,900
Accumulated other comprehensive income (loss)		(1,942	)		355
Accumulated deficit		(389,313	)		(430,151	)
Total stockholders' equity		149,864			34,131
Total liabilities and stockholders' equity	$	489,080		$	359,409

IMPINJ, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data, unaudited)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2024			2023			2024			2023
Revenue	$	91,569		$	70,651		$	366,087		$	307,539
Cost of revenue		45,347			36,781			177,232			155,557
Gross profit		46,222			33,870			188,855			151,982
Operating expenses:
Research and development		25,894			21,136			98,829			88,562
Sales and marketing		10,688			10,445			40,579			41,123
General and administrative		12,762			15,730			51,802			60,828
Amortization of intangibles		491			1,398			2,902			4,953
Restructuring costs		—			—			1,812			—
Total operating expenses		49,835			48,709			195,924			195,466
Income (loss) from operations		(3,613	)		(14,839	)		(7,069	)		(43,484	)
Other income, net		2,107			1,024			7,937			4,644
Income from settlement of litigation		—			—			45,000			—
Interest expense		(1,221	)		(1,215	)		(4,873	)		(4,848	)
Income (loss) before income taxes		(2,727	)		(15,030	)		40,995			(43,688	)
Income tax benefit (expense)		37			(150	)		(157	)		322
Net income (loss) per share attributable to common stockholders:	$	(2,690	)	$	(15,180	)	$	40,838		$	(43,366	)

Net income (loss) per share — basic	$	(0.09	)	$	(0.56	)	$	1.46		$	(1.62	)
Net income (loss) per share — diluted	$	(0.09	)	$	(0.56	)	$	1.39		$	(1.62	)

Weighted-average shares outstanding — basic		28,398			27,089			27,953			26,752
Weighted-average shares outstanding — diluted		28,398			27,089			29,471			26,752

IMPINJ, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited)

	Year Ended
	December 31,
	2024			2023
Operating activities:
Net income (loss)	$	40,838		$	(43,366	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		13,588			13,623
Stock-based compensation		56,546			47,986
Restructuring equity modification expense		366			—
Accretion of discount or amortization of premium on investments		(1,122	)		(1,637	)
Amortization of debt issuance costs		1,638			1,611
Deferred tax expense		(567	)		(931	)
Revaluation of acquisition-related contingent consideration liability		986			1,570
Changes in operating assets and liabilities, net of amounts acquired:
Accounts receivable		(1,999	)		(3,713	)
Inventory		(2,220	)		(49,577	)
Prepaid expenses and other assets		227			1,625
Accounts payable		9,270			(12,303	)
Accrued compensation and employee related benefits		13,855			(1,119	)
Accrued and other liabilities		244			(591	)
Acquisition-related contingent consideration liability		(2,556	)		—
Operating lease right-of-use assets		2,560			2,607
Operating lease liabilities		(3,392	)		(3,308	)
Deferred revenue		48			(1,859	)
Net cash provided by (used in) operating activities		128,310			(49,382	)
Investing activities:
Purchases of investments		(202,063	)		—
Proceeds from sales of investments		—			13,372
Proceeds from maturities of investments		26,605			144,401
Business acquisitions, net of cash acquired		—			(23,357	)
Purchases of intangible assets		—			(250	)
Proceeds from sale of property and equipment		—			234
Purchases of property and equipment		(17,112	)		(18,592	)
Net cash provided by (used in) investing activities		(192,570	)		115,808
Financing activities:
Proceeds from exercise of stock options and employee stock purchase plan		20,281			8,736
Payment of acquisition-related contingent consideration		(4,602	)		—
Net cash provided by financing activities		15,679			8,736
Effect of exchange rate changes on cash and cash equivalents		(159	)		34
Net increase (decrease) in cash and cash equivalents		(48,740	)		75,196
Cash and cash equivalents
Beginning of period		94,793			19,597
End of period	$	46,053		$	94,793

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, non-GAAP net income (loss), free cash flow and adjusted free cash flow 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 use free cash flow and adjusted free cash flow as key measures when assessing our sources of liquidity, capital resources, and quality of earnings. 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 and amortization; restructuring costs; settlement income and related costs; induced conversion expense; other income, net; interest expense; acquisition related expense and related purchase accounting adjustments; and income tax benefit (expense). During the year ended December 31, 2023, we revised our definition of adjusted EBITDA to exclude acquisition related expenses, related purchase accounting adjustments, and amortization of intangibles in connection with our Voyantic Oy acquisition. During the three months ended March 31, 2024, we further revised our definition of adjusted EBITDA to exclude settlement income. We have excluded these items because we do not believe they reflect our core operations and us excluding them enables more consistent evaluation of our operating performance. The revision to our definition of adjusted EBITDA did not impact adjusted EBITDA for any previously reported periods because there was no impact of a similar nature in such prior periods affecting comparability.

Non-GAAP Net Income (Loss)

We define non-GAAP net income as net income (loss), excluding, if applicable for the periods presented, the effects of stock-based compensation; depreciation and amortization; restructuring costs; settlement income and related costs; induced conversion expense; acquisition related expense and related purchase accounting adjustments; and the corresponding income tax impacts of adjustments to net income (loss).

During the year ended December 31, 2023, we revised our definition of non-GAAP net income to adjust for acquisition related expenses, related purchase accounting adjustments, and amortization of intangibles in connection with our Voyantic Oy acquisition. During the three months ended March 31, 2024, we further revised our definition of non-GAAP net income to exclude settlement income. The revisions to our definition of non-GAAP net income did not impact non-GAAP net income for any previously reported periods because there was no impact of a similar nature in such prior periods affecting comparability.

Additionally, during the year ended December 31, 2023, we revised our definition of non-GAAP net income (loss) to adjust for income tax effects of adjustments to net income (loss), calculated at the statutory rate for current and historical periods. We have revised the prior period amounts to conform to our current period presentation.

Free cash flow

We define free cash flow as net cash provided by (used in) operating activities, determined in accordance with GAAP, less purchases of property and equipment. We define adjusted free cash flow as free cash flow less cash received from gain on litigation settlement.

IMPINJ, INC. RECONCILIATIONS OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (in thousands, except percentages, unaudited)

	Three Months Ended								Year Ended
	December 31,								December 31,
	2024					2023			2024					2023
GAAP Gross margin		50.5	%				47.9	%		51.6	%				49.4	%
Adjustments:
Depreciation and amortization		2.1	%				2.3	%		1.9	%				1.8	%
Purchase accounting adjustments		0.0	%				0.0	%		0.0	%				0.1	%
Stock-based compensation		0.6	%				0.7	%		0.6	%				0.6	%
Non-GAAP Gross margin		53.1	%				50.9	%		54.0	%				51.9	%
Certain amounts may be off due to rounding

GAAP Net income (loss)	$	(2,690	)			$	(15,180	)	$	40,838				$	(43,366	)
Adjustments:
Depreciation and amortization		3,433					3,889			13,588					13,623
Stock-based compensation		15,210					12,307			56,546					47,986
Restructuring costs		—					—			1,812					—
Acquisition related expenses		—					1,596			986					3,272
Purchase accounting adjustments		—					—			—					388
Other income, net		(2,107	)				(1,024	)		(7,937	)				(4,644	)
Income from settlement of litigation		—					—			(45,000	)				—
Interest expense		1,221					1,215			4,873					4,848
Income tax expense (benefit)		(37	)				150			157					(322	)
Adjusted EBITDA	$	15,030				$	2,953		$	65,863				$	21,785

GAAP Net income (loss)	$	(2,690	)			$	(15,180	)	$	40,838				$	(43,366	)
Adjustments:
Depreciation and amortization		3,433					3,889			13,588					13,623
Stock-based compensation		15,210					12,307			56,546					47,986
Restructuring costs		—					—			1,812					—
Acquisition transaction expenses		—					1,596			986					3,272
Purchase accounting adjustments		—					—			—					388
Income from settlement of litigation		—					—			(45,000	)				—
Income tax effects of adjustments ⁽¹⁾		(1,426	)				(110	)		(5,860	)				(2,100	)
Non-GAAP Net income	$	14,527				$	2,502		$	62,910				$	19,803

Non-GAAP Net income per share — diluted	$	0.48		⁽²	⁾	$	0.09		$	2.11		⁽²	⁾	$	0.70

GAAP Weighted-average shares — diluted		28,398					27,089			29,471		⁽³	⁾		26,752
Dilutive shares from stock plans		1,500					1,255			—					1,632
Dilutive shares from convertible debt		2,589					—			2,589					—
Non-GAAP Weighted-average shares — diluted		32,487		⁽²	⁾		28,344			32,060		⁽²	⁾		28,384
⁽¹⁾ The tax effects of the adjustments are calculated using the statutory rate, taking into consideration the nature of the item and relevant taxing jurisdictions.
⁽²⁾ Diluted net income per share includes the impact of our convertible debt using the if-converted method, which assumes full share settlement. Interest expense is added back to net income and weighted average shares includes total shares issuable at conversion of 2.6 million.
⁽³⁾ GAAP weighted average shares — diluted includes the impact of dilutive shares from stock plans.

IMPINJ, INC. RECONCILIATIONS OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (in thousands, except percentages, unaudited)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2024			2023			2024			2023
GAAP Net cash provided by (used in) operating activities	$	12,623		$	1,427		$	128,310		$	(49,382	)
Adjustments:
Purchases of property and equipment		(4,133	)		(2,624	)		(17,112	)		(18,592	)
Free cash flow	$	8,490		$	(1,197	)	$	111,198		$	(67,974	)
Adjustments:
Income from settlement of litigation		—			—			(45,000	)		—
Adjusted free cash flow	$	8,490		$	(1,197	)	$	66,198		$	(67,974	)

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
	March 31,
	2025
GAAP Net loss	$	(16,055	)
Adjustments:
Forecasted Depreciation and amortization		3,660
Forecasted Stock-based compensation		15,180
Forecasted Interest expense		1,215
Forecasted Other income, net		(2,100	)
Forecasted Income tax expense (benefit)		(100	)
Adjusted EBITDA	$	1,800

GAAP Net loss	$	(16,055	)
Adjustments:
Forecasted Depreciation and amortization		3,660
Forecasted Stock-based compensation		15,180
Forecasted Income tax effects of adjustments		(334	)
Non-GAAP Net income	$	2,451

GAAP Net loss per share — basic and diluted	$	(0.56	)
Non-GAAP Net income per share — diluted	$	0.08

GAAP weighted-average shares — basic and diluted		28,700
Dilutive shares		1,500
Non-GAAP weighted-average shares — diluted		30,200

View source version on businesswire.com: https://www.businesswire.com/news/home/20250205111361/en/

For more information, contact:

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 was Impinj's (PI) revenue for full-year 2024?

Impinj reported revenue of $366.1 million for the full year 2024.

What was Impinj's (PI) Q4 2024 earnings per share?

Impinj reported a GAAP loss of $0.09 per diluted share and non-GAAP income of $0.48 per diluted share in Q4 2024.

What were Impinj's (PI) gross margins in Q4 2024?

Impinj achieved a GAAP gross margin of 50.5% and non-GAAP gross margin of 53.1% in Q4 2024.

What challenges does Impinj (PI) expect in 2025?

Impinj has indicated it expects headwinds in the first quarter of 2025.

What was Impinj's (PI) full-year 2024 earnings per share?

Impinj reported full-year 2024 GAAP earnings of $1.39 per diluted share and non-GAAP earnings of $2.11 per diluted share.

Impinj Reports Fourth Quarter and Full Year 2024 Financial Results

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What was Impinj's (PI) Q4 2024 earnings per share?

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Impinj Reports Fourth Quarter and Full Year 2024 Financial Results

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