Impinj Reports Fourth Quarter and Full Year 2018 Financial Results
Impinj, Inc. (NASDAQ: PI), a leading provider and pioneer of RAIN RFID solutions for identifying, locating and authenticating everyday items, today released its financial results for the fourth quarter and year ended Dec. 31, 2018.
Seattle, WA February 20, 2019 - Impinj, Inc. (NASDAQ: PI), a leading provider and pioneer of RAIN RFID solutions for identifying, locating and authenticating everyday items, today released its financial results for the fourth quarter and year ended Dec. 31, 2018.
“I'm proud of our team's execution in fourth quarter 2018 and feel we have strong momentum heading into 2019. We delivered our second consecutive quarter of record revenue and record systems sales,” said Chris Diorio, Impinj co-founder and CEO. “We also shipped our 30 billionth endpoint IC, marking another step in our journey to connect every item in our everyday world.”
Fourth Quarter 2018 Financial Summary
- Revenue of $34.6 million
- GAAP gross margin of 47.1%; non-GAAP gross margin of 49.0%
- GAAP net loss of $6.0 million, or loss of $0.28 per diluted share using 21.5 million shares
- Adjusted EBITDA loss of $1.7 million
- Non-GAAP net loss of $2.0 million, or loss of $0.09per diluted share using 21.5 million shares
Full Year 2018 Financial Summary
- Revenue of $122.6 million
- GAAP gross margin of 47.5%; non-GAAP gross margin of 49.5%
- GAAP net loss of $35.2 million, or loss of $1.65per diluted share using 21.3 million shares
- Adjusted EBITDA loss of $13.8 million
- Non-GAAP net loss of $14.5 million, or loss of $0.68per diluted share using 21.3 million shares
A reconciliation between GAAP and non-GAAP information, including weighted-average basic and diluted shares, 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 2019 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 2019 (in millions, except per share data):
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, Feb. 20, 2019, at 5:00 p.m. ET / 2:00 p.m. PT for analysts and investors to ask questions on our fourth quarter and year 2018 results, as well as its outlook for its first quarter of 2019. Open to the public, investors may access the call by dialing +1-412-317-5196. A live webcast of the conference call will also be accessible on our website at investor.impinj.com. Following the webcast, an archived version will be available on the website for one year. A telephonic replay of the call will be available one hour after the call and will run for five business days and may be accessed by dialing +1-412-317-0088 and entering passcode 10127448.
Management’s prepared written remarks, along with quarterly financial data, will be made available on our website at investor.impinj.comcommensurate 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, prospects, and financial outlook for the first quarter of 2019. 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.
IMPINJ, INC. - CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value, unaudited)
IMPINJ, INC. - CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data, unaudited)
IMPINJ, INC. - CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited)
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, we use non-GAAP financial measures by financial statement line items that exclude the effects of stock-based compensation, depreciation, restructuring costs, investigation costs and other expenses that we believe do not reflect our core operating performance. Our key non-GAAP liquidity and performance measures include adjusted EBITDA and non-GAAP net income (loss), see definitions of such 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 excluding those income and expenses inherent in calculating adjusted EBITDA and non-GAAP net income (loss) can provide useful measures for period-to-period comparisons of our business. Accordingly, we believe that adjusted EBITDA and non-GAAP net income (loss) provide useful information to investors and others in understanding and evaluating our operating results in the same manner as it does for 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 non-GAAP measures used by other companies.
Adjusted EBITDA
We define adjusted EBITDA as net income (loss) determined in accordance with GAAP, excluding the effects of stock-based compensation; depreciation; restructuring costs; investigation costs; other income (expense), net; interest expense; and income tax benefit (expense). Restructuring costs relate to us initiating an effort in the first quarter 2018 to reduce headcount and sublease office space to align our strategic and financial objectives and to optimize resources for long-term growth. Investigation costs relate to costs incurred by us to investigate a complaint made by a former employee. We have excluded from adjusted EBITDA the net restructuring and investigation costs because we do not believe they reflect our core operations.
Non-GAAP Net Income (Loss)
We define non-GAAP net income (loss) as net income (loss) determined in accordance with GAAP, excluding the effects of stock-based compensation; depreciation; restructuring costs; investigation costs (for more information about restructuring and investigation costs, please refer to the description in adjusted EBITDA above); amortization of debt issuance costs; and non-cash income tax benefit (expense). We exclude the non-cash portion of income taxes because of our ability to offset a substantial portion of future income tax liabilities by utilizing our deferred tax assets, which comprise primarily federal net operating loss carryforwards and federal research and experimentation credit carryforwards. We have excluded from non-GAAP net income (loss) the net restructuring and investigation costs because we do not believe they reflect our core operations.
IMPINJ, INC. - RECONCILIATIONS OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (in thousands, except percentages, unaudited)
IMPINJ, INC. - RECONCILIATIONS OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (in thousands, except per share data, unaudited)
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)
Wednesday, February 20, 2019
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
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