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Impinj Reports First Quarter 2022 Financial Results

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

 

 

Contacts

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

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