This site uses cookies

×

Impinj uses cookies to improve your user experience on our website. Cookies enable you to use certain features, sharing functionality, and to tailor messages to your interests (on our site and others). They also help us understand how our site is being used. By continuing to use our site, you consent to use our cookies in accordance with our privacy policy.

Skip navigation

Impinj Reports Fourth Quarter and Full Year 2021 Financial Results

Wednesday, February 9, 2022

SEATTLE--(BUSINESS WIRE)-- Impinj, Inc. (NASDAQ: PI), a leading provider and pioneer of RAIN RFID solutions, today released its financial results for the fourth quarter and year ended December 31, 2021.

“Our fourth-quarter results capped a strong close to an exceptional year,” said Chris Diorio, Impinj co-founder and CEO. “We delivered record bookings, revenue and adjusted EBITDA while launching key new products, investing in our team, building our 300mm post-processing capacity and accelerating our Impinj M700 endpoint IC ramp.”

Fourth Quarter 2021 Financial Summary

  • Revenue of $52.6 million
  • GAAP gross margin of 55.5%; non-GAAP gross margin of 58.2%
  • GAAP net loss of $20.0 million, or loss of $0.81 per diluted share using 24.6 million shares
  • Adjusted EBITDA of $5.3 million
  • Non-GAAP net income of $4.3 million, or income of $0.16 per diluted share using 26.8 million shares

Full Year 2021 Financial Summary

  • Revenue of $190.3 million
  • GAAP gross margin of 52.0%; non-GAAP gross margin of 54.2%
  • GAAP net loss of $51.3 million, or loss of $2.12 per diluted share using 24.2 million shares
  • Adjusted EBITDA of $9.1 million
  • Non-GAAP net income of $6.4 million, or income of $0.25 per diluted share using 25.9 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 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 first quarter of 2022 (in millions, except per share data):

 

 

 

Three Months Ending

 

 

March 31, 2022

Revenue

 

$50.0 to $52.0

GAAP Net loss

($14.6) to ($13.1)

Adjusted EBITDA income

 

$0.1 to $1.6

GAAP Weighted-average shares — basic and diluted

 

24.90 to 25.10

GAAP Net loss per share — basic and diluted

 

($0.58) to ($0.52)

Non-GAAP net income (loss)

 

($1.1) to $0.4

Non-GAAP Weighted-average shares — basic

 

24.90 to 25.10

Non-GAAP Weighted-average shares — diluted

 

24.90 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, February 9, 2022 at 5:00 p.m. ET / 2:00 p.m. PT to discuss its fourth-quarter and full-year 2021 results, as well as its outlook for its first 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 6917537.

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 the market for RAIN RFID, our strategy, prospects, the impact of Covid-19, and financial considerations for the first 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)

 

December 31, 2021 (1)

 

December 31, 2020

Assets:

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

$

123,903

 

 

$

23,636

 

Short-term investments

 

69,443

 

 

 

82,453

 

Accounts receivable, net

 

35,449

 

 

 

25,003

 

Inventory

 

21,958

 

 

 

36,329

 

Prepaid expenses and other current assets

 

5,049

 

 

 

3,943

 

Total current assets

 

255,802

 

 

 

171,364

 

Long-term investments

 

14,225

 

 

 

 

Property and equipment, net

 

27,500

 

 

 

16,531

 

Operating lease right-of-use assets

 

11,667

 

 

 

13,761

 

Other non-current assets

 

2,462

 

 

 

2,079

 

Goodwill

 

3,881

 

 

 

3,881

 

Total assets

$

315,537

 

 

$

207,616

 

Liabilities and stockholders' equity:

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

$

11,732

 

 

$

10,144

 

Accrued compensation and employee related benefits

 

6,365

 

 

 

5,529

 

Accrued and other current liabilities

 

2,481

 

 

 

1,468

 

Current portion of operating lease liabilities

 

4,143

 

 

 

3,641

 

Restructuring liabilities

 

591

 

 

 

 

Current portion of long-term debt

 

9,633

 

 

 

 

Current portion of deferred revenue

 

558

 

 

 

6,811

 

Total current liabilities

 

35,503

 

 

 

27,593

 

Long-term debt, net of current portion

 

278,661

 

 

 

54,556

 

Operating lease liabilities, net of current portion

 

11,934

 

 

 

15,266

 

Other long-term liabilities

 

279

 

 

 

805

 

Deferred revenue, net of current portion

 

236

 

 

 

277

 

Total liabilities

 

326,613

 

 

 

98,497

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

Common stock, $0.001 par value

 

25

 

 

 

23

 

Additional paid-in capital

 

351,422

 

 

 

423,759

 

Accumulated other comprehensive (loss) income

 

(39

)

 

 

3

 

Accumulated deficit

 

(362,484

)

 

 

(314,666

)

Total stockholders' equity

 

(11,076

)

 

 

109,119

 

Total liabilities and stockholders' equity

$

315,537

 

 

$

207,616

 

 

 

 

 

 

 

(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 as of March 31, 2021, June 30, 2021, September 30, 2021, and December 31, 2021 are presented under ASU 2020-06, while comparative prior reporting period presented is not adjusted and continue to be reported in accordance with our historical accounting policy.

 

IMPINJ, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data, unaudited)

 

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

December 31,

 

 

2021

 

2020

 

2021

 

2020

 

Revenue

 

$

52,574

 

 

$

36,448

 

 

$

190,283

 

 

$

138,923

 

 

Cost of revenue

 

 

23,391

 

 

 

19,034

 

 

 

91,329

 

 

 

73,783

 

 

Gross profit

 

 

29,183

 

 

 

17,414

 

 

 

98,954

 

 

 

65,140

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

17,578

 

 

 

14,971

 

 

 

64,058

 

 

 

48,590

 

 

Sales and marketing

 

 

9,710

 

 

 

8,086

 

 

 

34,287

 

 

 

28,663

 

 

General and administrative

 

 

9,125

 

 

 

8,743

 

 

 

36,137

 

 

 

34,958

 

 

Restructuring costs

 

 

458

 

 

 

 

 

 

1,721

 

 

 

 

 

Total operating expenses

 

 

36,871

 

 

 

31,800

 

 

 

136,203

 

 

 

112,211

 

 

Loss from operations

 

 

(7,688

)

 

 

(14,386

)

 

 

(37,249

)

 

 

(47,071

)

 

Other income, net

 

 

4

 

 

 

66

 

 

 

25

 

 

 

650

 

 

Induced conversion expense

 

 

(11,333

)

 

 

 

 

 

(11,333

)

 

 

 

 

Interest expense

 

 

(974

)

 

 

(1,392

)

 

 

(2,550

)

 

 

(5,413

)

 

Loss before income taxes

 

 

(19,991

)

 

 

(15,712

)

 

 

(51,107

)

 

 

(51,834

)

 

Income tax expense

 

 

(23

)

 

 

(5

)

 

 

(153

)

 

 

(89

)

 

Net loss

 

$

(20,014

)

 

$

(15,717

)

 

$

(51,260

)

 

$

(51,923

)

 

Net loss per share — basic and diluted

 

$

(0.81

)

 

$

(0.68

)

 

$

(2.12

)

 

$

(2.28

)

 

Weighted-average shares — basic and diluted

 

 

24,581

 

 

 

23,218

 

 

 

24,176

 

 

 

22,819

 

 

IMPINJ, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, unaudited)

 

 

Year Ended

 

 

December 31,

 

 

2021

 

2020

Operating activities:

 

 

 

 

 

 

Net loss

 

$

(51,260)

 

$

(51,923)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation

 

 

4,602

 

 

4,504

Stock-based compensation

 

 

40,498

 

 

25,675

Accretion of discount or amortization of premium on investments

 

 

896

 

 

224

Amortization of debt issuance costs and debt discount

 

 

568

 

 

3,680

Induced conversion expense related to convertible notes

 

 

11,333

 

 

Settlement and related costs

 

 

(460)

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(10,446)

 

 

(1,268)

Inventory

 

 

14,371

 

 

(2,176)

Prepaid expenses and other assets

 

 

(770)

 

 

(3,081)

Deferred revenue

 

 

(6,294)

 

 

6,324

Accounts payable

 

 

2,340

 

 

3,491

Accrued compensation and employee related benefits

 

 

836

 

 

(330)

Operating lease right-of-use assets

 

 

2,792

 

 

2,740

Operating lease liabilities

 

 

(3,528)

 

 

(3,380)

Accrued and other liabilities

 

 

987

 

 

(1,357)

Net cash provided by (used in) operating activities

 

 

6,465

 

 

(16,877)

Investing activities:

 

 

 

 

 

 

Purchases of investments

 

 

(84,412)

 

 

(82,735)

Proceeds from maturities of investments

 

 

82,000

 

 

49,522

Purchases of property and equipment

 

 

(16,230)

 

 

(3,074)

Net cash used in investing activities

 

 

(18,642)

 

 

(36,287)

Financing activities:

 

 

 

 

 

 

Principal payments on finance lease obligations

 

 

(2)

 

 

(257)

Proceeds from exercise of stock options and employee stock purchase plan

 

 

17,648

 

 

10,159

Proceeds from issuance of 2021 Notes, net of issuance costs

 

 

278,422

 

 

Payment of 2019 Notes

 

 

(183,624)

 

 

Net cash provided by financing activities

 

 

112,444

 

 

9,902

Net increase (decrease) in cash and cash equivalents

 

 

100,267

 

 

(43,262)

Cash and cash equivalents

 

 

 

 

 

 

Beginning of period

 

 

23,636

 

 

66,898

End of period

 

$

123,903

 

$

23,636

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). In second-quarter 2020, we revised our definition of adjusted EBITDA to exclude litigation settlement costs for the class-action and derivative lawsuits, including related costs. In fourth-quarter 2021, we revised our definition of adjusted EBITDA to exclude the expense incurred in connection with the November 2021 induced conversion of our 2019 Notes. We have excluded these costs and expenses because we do not believe they reflect our core operations and us excluding them enables more consistent evaluation of our operating performance. Excluding settlement and related costs did not impact non-GAAP net income (loss) previously reported for prior periods preceding the revision.

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; and prepayment penalty on debt extinguishment. In second-quarter 2020, we revised our definition of non-GAAP net income (loss) to exclude litigation settlement costs for the class-action and derivative lawsuits, including related costs. Excluding settlement and related costs did not impact non-GAAP net income (loss) previously reported for prior periods preceding the revision. In fourth-quarter 2021, we revised our definition of non-GAAP net income (loss) to exclude the expense incurred in connection with the November 2021 induced conversion of our 2019 Notes.

GAAP requires that certain convertible debt instruments that may be settled in cash on conversion be accounted for as separate liability and equity components in a manner that reflects our non-convertible debt borrowing rate. This accounting results in the debt component being treated as though it was issued at a discount, with the debt discount being amortized as additional non-cash interest expense over the debt instrument term using the effective interest method. As a result, we believe that excluding this non-cash interest expense attributable to the debt discount in calculating our non-GAAP net income (loss) is useful because this interest expense is not indicative of our ongoing operational performance.

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,

 

 

2021

 

2020

 

2021

 

2020

GAAP Gross margin

 

 

55.5

%

 

 

47.8

%

 

 

52.0

%

 

 

46.9

%

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

1.6

%

 

 

1.4

%

 

 

1.2

%

 

 

1.4

%

Stock-based compensation

 

 

1.1

%

 

 

1.2

%

 

 

1.0

%

 

 

0.7

%

Non-GAAP Gross margin

 

 

58.2

%

 

 

50.4

%

 

 

54.2

%

 

 

49.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Net loss

 

$

(20,014

)

 

$

(15,717

)

 

$

(51,260

)

 

$

(51,923

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

1,431

 

 

 

1,102

 

 

 

4,602

 

 

 

4,504

 

Stock-based compensation

 

 

11,547

 

 

 

10,174

 

 

 

40,498

 

 

 

25,675

 

Other income, net

 

 

(4

)

 

 

(66

)

 

 

(25

)

 

 

(650

)

Interest expense

 

 

974

 

 

 

1,392

 

 

 

2,550

 

 

 

5,413

 

Income tax expense

 

 

23

 

 

 

5

 

 

 

153

 

 

 

89

 

Settlement and related costs

 

 

(460

)

 

 

 

 

 

(460

)

 

 

5,359

 

Restructuring costs

 

 

458

 

 

 

 

 

 

1,721

 

 

 

 

Induced conversion expense

 

 

11,333

 

 

 

 

 

 

11,333

 

 

 

 

Adjusted EBITDA

 

$

5,288

 

 

$

(3,110

)

 

$

9,112

 

 

$

(11,533

)

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Net loss

 

$

(20,014

)

 

$

(15,717

)

 

$

(51,260

)

 

$

(51,923

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

1,431

 

 

 

1,102

 

 

 

4,602

 

 

 

4,504

 

Stock-based compensation

 

 

11,547

 

 

 

10,174

 

 

 

40,498

 

 

 

25,675

 

Amortization of debt discount

 

 

 

 

 

929

 

 

 

 

 

 

3,566

 

Settlement and related costs

 

 

(460

)

 

 

 

 

 

(460

)

 

 

5,359

 

Restructuring costs

 

 

458

 

 

 

 

 

 

1,721

 

 

 

 

Induced conversion expense

 

 

11,333

 

 

 

 

 

 

11,333

 

 

 

 

Non-GAAP Net income (loss)

 

$

4,295

 

 

$

(3,512

)

 

$

6,434

 

 

$

(12,819

)

Non-GAAP Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.17

 

 

$

(0.15

)

 

$

0.27

 

 

$

(0.56

)

Diluted

 

$

0.16

 

 

$

(0.15

)

 

$

0.25

 

 

$

(0.56

)

GAAP and non-GAAP Weighted-average shares — basic

 

 

24,581

 

 

 

23,218

 

 

 

24,176

 

 

 

22,819

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Weighted-average shares — diluted

 

 

24,581

 

 

 

23,218

 

 

 

24,176

 

 

 

22,819

 

Dilutive shares from stock plans

 

 

2,195

 

 

 

 

 

 

1,768

 

 

 

 

Non-GAAP Weighted-average shares — diluted

 

 

26,776

 

 

 

23,218

 

 

 

25,944

 

 

 

22,819

 

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,

 

 

2022

GAAP Net loss

 

$

(13,845

)

Adjustments:

 

 

 

Forecasted Depreciation

 

 

1,630

 

Forecasted Stock-based compensation

 

 

11,800

 

Forecasted Interest expense

 

 

1,260

 

Forecasted Other income, net

 

 

(50

)

Forecasted Income tax expense

 

 

30

 

Adjusted EBITDA

 

$

825

 

 

 

 

 

GAAP Net loss

 

$

(13,845

)

Adjustments:

 

 

 

Forecasted Depreciation

 

 

1,630

 

Forecasted Stock-based compensation

 

 

11,800

 

Non-GAAP Net loss

 

$

(415

)

 

 

 

 

GAAP Net loss per share — basic and diluted

 

$

(0.55

)

Non-GAAP Net loss per share — basic and diluted

 

$

(0.02

)

 

 

 

 

GAAP and Non-GAAP weighted-average shares — basic and diluted

 

 

25,000

 

 

Investor Relations
Andy Cobb, CFA
Vice President, Strategic Finance
+1-206-315-4470
[email protected]

Media Relations
Jill West
Vice President, Strategic Communications
+1 206-834-1110
[email protected]

Source: Impinj, Inc.