Identiv Reports Fourth Quarter and Full Year 2023 Financial Results
Record Fiscal Year Revenues of
Delivered
Secured Second Facility in
Recent Financial and Operational Highlights
-
FY 2023 revenue was
$116.4 million 3% year-over-year. -
Ended Q4 2023 with
$24.4 million $48.7 million -
Federal billings in FY 2023 increased
9% year-over-year. -
Software, services, and recurring revenues grew to a record
24% of Premises segment revenues in Q4 2023. - FY 2023 RFID units shipped increased to just under 200 million units.
-
Continued to scale production in
Thailand , the facility’s first year in operation, and exited 2023 with a capacity for primary processes of 200 million units. -
Signed lease for adjacent building in
Thailand , securing our ability to expand production as needed. -
Collaborated with Energous and Wiliot on a real-time tracking solution for temperature-sensitive assets; currently in pilot with several logistics companies in
Europe . - Commenced engagement with retail data platform company Nexite to support further growth of BLE-enabled RFID category.
- Launched ScrambleFactor reader with biometrics and multi-factor authentication for Federal market customers.
-
Partnered with Mazars
USA LLP Consulting Group on a new AI-enabled retail operations solution that integrates Microsoft Dynamics 365 with our bitse.io platform. -
Opened the IoT Excellence Center in
Germany , showcasing the breadth of our complete IoT portfolio for current and prospective customers. -
Secured a
$2 million - Released bitse.io 3.0, the latest version of our global IoT connecting cloud platform, which includes advanced features for supply chain monitoring and customer engagement.
- Showed continued strength in OEM reader sales, doubling category revenues quarter-over-quarter.
- Board-led strategic review continued to be a major focus and activity in Q4 2023.
Fiscal Year 2023 Financial Results
Revenue for fiscal year 2023 was
Fiscal year 2023 GAAP gross margin was
GAAP operating expenses, including research and development, sales, and marketing, and general and administrative, totaled
GAAP net loss in fiscal year 2023 was
Non-GAAP adjusted EBITDA for fiscal year 2023 was
Fourth Quarter 2023 Financial Summary
Revenue for the fourth quarter 2023 was
Fourth quarter 2023 GAAP gross margin was
GAAP operating expenses, including research and development, sales, and marketing, and general and administrative, totaled
GAAP net loss for the fourth quarter 2023 was
Non-GAAP adjusted EBITDA in the fourth quarter of 2023 was
Management Commentary
“In 2023, we delivered record fiscal year revenue while keeping margins healthy with a consistent focus on delivering disciplined growth,” said Identiv CEO Steven Humphreys. “Our commitment to maintaining a strong balance sheet enabled us to deliver a record quarter for cash flow from operations, while investing to build our foundation for strategic growth.”
Financial Outlook
Identiv provides guidance based on current market conditions and expectations, including macroeconomic conditions and customer demand. For fiscal Q1 2024, management currently expects net revenues in the range of
Conference Call
Identiv management will hold a conference call today, March 12, 2024, at 5:00 p.m. EDT (2:00 p.m. PDT) to discuss the company’s fourth quarter and fiscal year 2023 financial results. A question-and-answer session will follow management's presentation.
Toll-Free: 888-506-0062
International Number: 973-528-0011
Call ID: 107746
Webcast link: Register and Join
The teleconference replay will be available through March 26, 2024, by dialing 877-481-4010 (Toll-Free Replay Number) or 919-882-2331 (International Replay Number) and entering passcode 49814.
If you have any difficulty connecting with the teleconference, please contact Identiv Investor Relations at IR@identiv.com.
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
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 margin, 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 margin excludes 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 margin, and excludes income tax provision, interest expense, net foreign currency gains (losses), net stock-based compensation, amortization and depreciation, restructuring and severance, gain on investment, and strategic review-related costs. 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 “anticipate,” “believe,” “continue,” “plan,” “will,” “intend,” “expect,” “outlook,” 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 2024 first quarter guidance and outlook; the Company’s strategy, focus and its foundation for growth; the Company’s expectations regarding seasonality; expected benefits of the Company’s
Identiv, Inc. |
|||||||||||||||||||
Condensed Consolidated Statements of Operations |
|||||||||||||||||||
(in thousands, except per share data) |
|||||||||||||||||||
(unaudited) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
||||||||||
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||||
| Net revenue | $ |
28,985 |
|
$ |
31,846 |
|
$ |
29,001 |
|
$ |
116,383 |
|
$ |
112,915 |
|
||||
| Cost of revenue |
|
18,821 |
|
|
19,905 |
|
|
18,421 |
|
|
74,219 |
|
|
71,971 |
|
||||
| Gross profit |
|
10,164 |
|
|
11,941 |
|
|
10,580 |
|
|
42,164 |
|
|
40,944 |
|
||||
| Operating expenses: | |||||||||||||||||||
| Research and development |
|
2,952 |
|
|
2,916 |
|
|
2,283 |
|
|
11,590 |
|
|
9,916 |
|
||||
| Selling and marketing |
|
4,938 |
|
|
5,641 |
|
|
5,021 |
|
|
22,555 |
|
|
20,730 |
|
||||
| General and administrative |
|
3,570 |
|
|
2,939 |
|
|
2,806 |
|
|
12,360 |
|
|
10,429 |
|
||||
| Restructuring and severance |
|
338 |
|
|
104 |
|
|
70 |
|
|
714 |
|
|
202 |
|
||||
| Total operating expenses |
|
11,798 |
|
|
11,600 |
|
|
10,180 |
|
|
47,219 |
|
|
41,277 |
|
||||
| Income (loss) from operations |
|
(1,634 |
) |
|
341 |
|
|
400 |
|
|
(5,055 |
) |
|
(333 |
) |
||||
| Non-operating income (expense): | |||||||||||||||||||
| Interest expense, net |
|
(76 |
) |
|
(211 |
) |
|
(42 |
) |
|
(427 |
) |
|
(143 |
) |
||||
| Gain on investment |
|
— |
|
|
132 |
|
|
— |
|
|
132 |
|
|
30 |
|
||||
| Foreign currency gains (losses), net |
|
209 |
|
|
(264 |
) |
|
44 |
|
|
25 |
|
|
155 |
|
||||
| Income (loss) before income tax provision |
|
(1,501 |
) |
|
(2 |
) |
|
402 |
|
|
(5,325 |
) |
|
(291 |
) |
||||
| Income tax provision |
|
(103 |
) |
|
(20 |
) |
|
(63 |
) |
|
(164 |
) |
|
(101 |
) |
||||
| Net income (loss) |
|
(1,604 |
) |
|
(22 |
) |
|
339 |
|
|
(5,489 |
) |
|
(392 |
) |
||||
| Cumulative dividends on Series B convertible preferred stock |
|
(319 |
) |
|
(319 |
) |
|
(304 |
) |
|
(1,266 |
) |
|
(1,206 |
) |
||||
| Net income (loss) available to common stockholders | $ |
(1,923 |
) |
$ |
(341 |
) |
$ |
35 |
|
$ |
(6,755 |
) |
$ |
(1,598 |
) |
||||
| Net income (loss) per common share: | |||||||||||||||||||
| Basic | $ |
(0.08 |
) |
$ |
(0.01 |
) |
$ |
0.00 |
|
$ |
(0.29 |
) |
$ |
(0.07 |
) |
||||
| Diluted | $ |
(0.08 |
) |
$ |
(0.01 |
) |
$ |
0.00 |
|
$ |
(0.29 |
) |
$ |
(0.07 |
) |
||||
| Weighted average shares used in computing net income (loss) per common share: | |||||||||||||||||||
| Basic |
|
23,248 |
|
|
23,174 |
|
|
22,737 |
|
|
23,068 |
|
|
22,659 |
|
||||
| Diluted |
|
23,248 |
|
|
23,174 |
|
|
23,160 |
|
|
23,068 |
|
|
22,659 |
|
||||
| Identiv, Inc. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (in thousands) | ||||||||
| (unaudited) | ||||||||
December 31, |
September 30, |
December 31, |
||||||
2023 |
2023 |
2022 |
||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ |
23,312 |
$ |
19,674 |
$ |
16,650 |
||
| Restricted cash |
|
1,072 |
|
1,254 |
|
487 |
||
| Accounts receivable, net of allowances |
|
21,969 |
|
25,892 |
|
24,826 |
||
| Inventories |
|
28,712 |
|
29,423 |
|
28,958 |
||
| Prepaid expenses and other current assets |
|
4,421 |
|
5,238 |
|
4,177 |
||
| Total current assets |
|
79,486 |
|
81,481 |
|
75,098 |
||
| Property and equipment, net |
|
9,320 |
|
8,518 |
|
6,719 |
||
| Operating lease right-of-use assets |
|
5,214 |
|
5,525 |
|
4,373 |
||
| Intangible assets, net |
|
4,251 |
|
4,483 |
|
5,265 |
||
| Goodwill |
|
10,218 |
|
10,189 |
|
10,190 |
||
| Other assets |
|
1,234 |
|
1,261 |
|
1,120 |
||
| Total assets | $ |
109,723 |
$ |
111,457 |
$ |
102,765 |
||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ |
12,250 |
$ |
12,099 |
$ |
15,231 |
||
| Financial liabilities |
|
9,949 |
|
9,939 |
|
— |
||
| Operating lease liabilities |
|
1,714 |
|
1,708 |
|
1,190 |
||
| Deferred revenue |
|
2,341 |
|
2,474 |
|
2,068 |
||
| Accrued compensation and related benefits |
|
2,334 |
|
2,580 |
|
2,757 |
||
| Other accrued expenses and liabilities |
|
2,194 |
|
2,872 |
|
2,147 |
||
| Total current liabilities |
|
30,782 |
|
31,672 |
|
23,393 |
||
| Long-term operating lease liabilities |
|
3,716 |
|
4,037 |
|
3,366 |
||
| Long-term deferred revenue |
|
927 |
|
904 |
|
587 |
||
| Other long-term liabilities |
|
26 |
|
25 |
|
25 |
||
| Total liabilities |
|
35,451 |
|
36,638 |
|
27,371 |
||
| Total stockholders' equity |
|
74,272 |
|
74,819 |
|
75,394 |
||
| Total liabilities and stockholders' equity | $ |
109,723 |
$ |
111,457 |
$ |
102,765 |
||
Identiv, Inc. |
|||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Information |
|||||||||||||||||||
(in thousands) |
|||||||||||||||||||
(unaudited) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
||||||||||
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||||
| Reconciliation of GAAP gross margin to non-GAAP gross margin | |||||||||||||||||||
| GAAP gross profit | $ |
10,164 |
|
$ |
11,941 |
|
$ |
10,580 |
|
$ |
42,164 |
|
$ |
40,944 |
|
||||
| Reconciling items included in GAAP gross profit: | |||||||||||||||||||
| Stock-based compensation |
|
60 |
|
|
45 |
|
|
53 |
|
|
195 |
|
|
191 |
|
||||
| Amortization and depreciation |
|
491 |
|
|
458 |
|
|
363 |
|
|
1,737 |
|
|
1,312 |
|
||||
| Total reconciling items included in GAAP gross profit |
|
551 |
|
|
503 |
|
|
416 |
|
|
1,932 |
|
|
1,503 |
|
||||
| Non-GAAP gross profit | $ |
10,715 |
|
$ |
12,444 |
|
$ |
10,996 |
|
$ |
44,096 |
|
$ |
42,447 |
|
||||
| Non-GAAP gross margin |
|
37 |
% |
|
39 |
% |
|
38 |
% |
|
38 |
% |
|
38 |
% |
||||
| Reconciliation of GAAP operating expenses to non-GAAP operating expenses | |||||||||||||||||||
| GAAP operating expenses | $ |
11,798 |
|
$ |
11,600 |
|
$ |
10,180 |
|
$ |
47,219 |
|
$ |
41,277 |
|
||||
| Reconciling items included in GAAP operating expenses: | |||||||||||||||||||
| Stock-based compensation |
|
(938 |
) |
|
(944 |
) |
|
(543 |
) |
|
(3,776 |
) |
|
(2,970 |
) |
||||
| Amortization and depreciation |
|
(241 |
) |
|
(274 |
) |
|
(236 |
) |
|
(995 |
) |
|
(960 |
) |
||||
| Loss on disposal of property and equipment |
|
— |
|
|
— |
|
|
(68 |
) |
|
— |
|
|
(68 |
) |
||||
| Strategic review-related costs |
|
(435 |
) |
|
— |
|
|
— |
|
|
(435 |
) |
|
— |
|
||||
| Restructuring and severance |
|
(338 |
) |
|
(104 |
) |
|
(70 |
) |
|
(714 |
) |
|
(202 |
) |
||||
| Total reconciling items included in GAAP operating expenses |
|
(1,952 |
) |
|
(1,322 |
) |
|
(917 |
) |
|
(5,920 |
) |
|
(4,200 |
) |
||||
| Non-GAAP operating expenses | $ |
9,846 |
|
$ |
10,278 |
|
$ |
9,263 |
|
$ |
41,299 |
|
$ |
37,077 |
|
||||
| Reconciliation of GAAP net income (loss) to non-GAAP adjusted EBITDA | |||||||||||||||||||
| GAAP net income (loss) | $ |
(1,604 |
) |
$ |
(22 |
) |
$ |
339 |
|
$ |
(5,489 |
) |
$ |
(392 |
) |
||||
| Reconciling items included in GAAP net income (loss): | |||||||||||||||||||
| Income tax provision |
|
103 |
|
|
20 |
|
|
63 |
|
|
164 |
|
|
101 |
|
||||
| Interest expense, net |
|
76 |
|
|
211 |
|
|
42 |
|
|
427 |
|
|
143 |
|
||||
| Gain on investment |
|
— |
|
|
(132 |
) |
|
— |
|
|
(132 |
) |
|
(30 |
) |
||||
| Loss on disposal of property and equipment |
|
— |
|
|
— |
|
|
68 |
|
|
— |
|
|
68 |
|
||||
| Foreign currency gains (losses), net |
|
(209 |
) |
|
264 |
|
|
(44 |
) |
|
(25 |
) |
|
(155 |
) |
||||
| Stock-based compensation |
|
998 |
|
|
989 |
|
|
596 |
|
|
3,971 |
|
|
3,161 |
|
||||
| Amortization and depreciation |
|
732 |
|
|
732 |
|
|
599 |
|
|
2,732 |
|
|
2,272 |
|
||||
| Strategic review-related costs |
|
435 |
|
|
— |
|
|
— |
|
|
435 |
|
|
— |
|
||||
| Restructuring and severance |
|
338 |
|
|
104 |
|
|
70 |
|
|
714 |
|
|
202 |
|
||||
| Total reconciling items included in GAAP net income (loss) |
|
2,473 |
|
|
2,188 |
|
|
1,394 |
|
|
8,286 |
|
|
5,762 |
|
||||
| Non-GAAP adjusted EBITDA | $ |
869 |
|
$ |
2,166 |
|
$ |
1,733 |
|
$ |
2,797 |
|
$ |
5,370 |
|
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240312612773/en/
Investor Relations Contact:
IR@identiv.com
Media Contact:
press@identiv.com
Source: Identiv, Inc.
