Impinj, Inc. (NASDAQ: PI), a leading RAIN RFID provider and Internet of Things pioneer, today released its financial results for the second quarter ended June 30, 2023.
“Second-quarter revenue set a new record, with strong systems revenue offsetting weak endpoint IC revenue from retail apparel inventory destocking,” said Chris Diorio, Impinj co-founder and CEO. “We expect ongoing headwinds associated with that apparel inventory destocking, as well as weakness in the overall retail macroenvironment, to more-than-offset strength in our enterprise solutions opportunities in the third quarter.”
Second Quarter 2023 Financial Summary
- Revenue of $86.0 million
- GAAP gross margin of 51.0%; non-GAAP gross margin of 53.3%
- GAAP net loss of $8.1 million, or loss of $(0.30) per diluted share using 26.7 million shares
- Adjusted EBITDA of $10.0 million
- Non-GAAP net income of $9.3 million, or income of $0.33 per diluted share using 28.5 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.
Third Quarter 2023 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 third quarter of 2023 (in millions, except per share data):
Three Months Ending | ||
September 30, 2023 | ||
Revenue | $63.0 to $66.0 | |
GAAP Net loss | ($19.7) to ($18.2) | |
Adjusted EBITDA loss | ($3.3) to ($1.8) | |
GAAP Weighted-average shares — basic and diluted | 26.90 to 27.10 | |
GAAP Net loss per share — basic and diluted | ($0.73) to ($0.67) | |
Non-GAAP Net loss | ($3.2) to ($1.7) | |
Non-GAAP Weighted-average shares — basic and diluted | 26.90 to 27.10 | |
Non-GAAP Net loss per share — basic and diluted | ($0.12) to ($0.06) |
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, July 26, 2023 at 5:00 p.m. ET / 2:00 p.m. PT to discuss its second-quarter 2023 results, as well as its outlook for its third-quarter 2023. 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 6963268.
Management’s prepared written remarks, along with quarterly financial data, will be made available on the company’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 third quarter of 2023 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) | |||||||
June 30, 2023 | December 31, 2022 | ||||||
Assets: | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 45,244 | $ | 19,597 | |||
Short-term investments | 63,656 | 154,148 | |||||
Accounts receivable, net | 58,945 | 49,996 | |||||
Inventory | 112,323 | 46,397 | |||||
Prepaid expenses and other current assets | 3,455 | 5,032 | |||||
Total current assets | 283,623 | 275,170 | |||||
Long-term investments | 5,995 | 19,200 | |||||
Property and equipment, net | 45,077 | 39,027 | |||||
Intangible assets, net | 16,587 | — | |||||
Operating lease right-of-use assets | 11,004 | 10,490 | |||||
Other non-current assets | 1,744 | 1,969 | |||||
Goodwill | 19,516 | 3,881 | |||||
Total assets | $ | 383,546 | $ | 349,737 | |||
Liabilities and stockholders' equity (deficit): | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 27,627 | $ | 25,024 | |||
Accrued compensation and employee related benefits | 7,746 | 9,048 | |||||
Accrued and other current liabilities | 9,681 | 2,925 | |||||
Current portion of operating lease liabilities | 3,301 | 3,122 | |||||
Current portion of deferred revenue | 2,523 | 2,250 | |||||
Total current liabilities | 50,878 | 42,369 | |||||
Long-term debt, net of current portion | 281,046 | 280,244 | |||||
Operating lease liabilities, net of current portion | 11,071 | 11,066 | |||||
Deferred tax liabilities, net | 3,415 | 118 | |||||
Deferred revenue, net of current portion | 341 | 349 | |||||
Total liabilities | 346,751 | 334,146 | |||||
Stockholders' equity: | |||||||
Common stock, $0.001 par value | 27 | 26 | |||||
Additional paid-in capital | 436,302 | 403,599 | |||||
Accumulated other comprehensive loss | (325 | ) | (1,249 | ) | |||
Accumulated deficit | (399,209 | ) | (386,785 | ) | |||
Total stockholders' equity | 36,795 | 15,591 | |||||
Total liabilities and stockholders' equity (deficit) | $ | 383,546 | $ | 349,737 | |||
IMPINJ, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data, unaudited) | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
Revenue | $ | 85,986 | $ | 59,796 | $ | 171,883 | $ | 112,940 | |||||||||
Cost of revenue | 42,172 | 28,294 | 84,539 | 52,659 | |||||||||||||
Gross profit | 43,814 | 31,502 | 87,344 | 60,281 | |||||||||||||
Operating expenses: | |||||||||||||||||
Research and development | 23,403 | 18,369 | 45,838 | 36,358 | |||||||||||||
Sales and marketing | 10,632 | 9,614 | 20,605 | 18,913 | |||||||||||||
General and administrative | 16,002 | 11,995 | 31,566 | 22,801 | |||||||||||||
Amortization of intangibles | 2,146 | — | 2,146 | — | |||||||||||||
Total operating expenses | 52,183 | 39,978 | 100,155 | 78,072 | |||||||||||||
Loss from operations | (8,369 | ) | (8,476 | ) | (12,811 | ) | (17,791 | ) | |||||||||
Other income, net | 1,165 | 429 | 2,530 | 593 | |||||||||||||
Induced conversion expense | — | (2,232 | ) | — | (2,232 | ) | |||||||||||
Interest expense | (1,211 | ) | (1,250 | ) | (2,420 | ) | (2,511 | ) | |||||||||
Loss before income taxes | (8,415 | ) | (11,529 | ) | (12,701 | ) | (21,941 | ) | |||||||||
Income tax benefit (expense) | 349 | 6 | 277 | (43 | ) | ||||||||||||
Net loss | $ | (8,066 | ) | $ | (11,523 | ) | $ | (12,424 | ) | $ | (21,984 | ) | |||||
Net loss per share — basic and diluted | $ | (0.30 | ) | $ | (0.45 | ) | $ | (0.47 | ) | $ | (0.87 | ) | |||||
Weighted-average shares — basic and diluted | 26,713 | ||||||||||||||||
