Identiv, Inc. (NASDAQ:INVE) Q4 2019 Earnings Conference Call March 12, 2020 5:00 PM ET Company Participants Steve Humphreys - CEO Sandra Wallach - CFO Conference Call Participants Mike Latimore - Northland Capital Management Jeff Kessler - Imperial Capital Jason Schmidt - LakeStreet Capital Markets Operator Good afternoon. Welcome to Identiv's Presentation of Fourth Quarter and Fiscal Year 2019 Earnings Call. My name is Anastasia, and I will be your operator this afternoon. Joining us for today's presentati ...

Financial Data and Key Metrics Changes - Revenue for Q3 2019 was $23 million, a 15% increase compared to Q3 2018 and a 4% sequential increase from Q2 2019 [22][16] - EPS grew to approximately $0.05 per share, quintupling over the prior quarter, marking the second consecutive quarter of positive EPS since Q4 2007 [6][20] - Non-GAAP adjusted EBITDA margin hit 11%, over double the comparable trailing 12 months [20] Business Line Data and Key Metrics Changes - The Premises segment generated 56% of total revenue, amounting to $12.9 million, a 38% increase year-over-year [22][9] - Identity products revenue was $10.1 million, representing a 5% decrease year-over-year and a 13% decrease sequentially [23][24] - Recurring revenues grew to about 8% of total revenues, with software and services revenues increasing from 12% to 14% of total revenues [6][18] Market Data and Key Metrics Changes - The overall growth rate for the company was 15% year-over-year, approximately double the market growth rate of around 7% [5][14] - The federal government business remained strong, with significant deployments across various agencies [11][12] Company Strategy and Development Direction - The company is focused on leveraging its total solution strategy, which includes physical access control, video analytics, and mobile security [42][43] - The strategy is designed to be defensible and attractive to fast-growing customer segments, particularly in the federal government [42][43] - The company is expanding its cloud-based services and mobile applications, which are seen as core to future growth [49][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, expecting continued expansion in profitability and revenue [60][59] - The company updated its guidance for full-year 2019 revenue to between $88 million and $90 million, with a positive outlook for 2020 revenue growth of 14% to 16% [37][39] - Management highlighted the importance of the federal government market and the potential for significant future opportunities [78][79] Other Important Information - The company is experiencing a shift towards higher-margin products, which is expected to enhance profitability [13][14] - The launch of new products and partnerships, such as with Kraft-Heinz, is anticipated to drive further growth [54][55] Q&A Session Summary Question: Can you talk about the U.S. Marshals deal? - The deal involves 900 sites over a 4- to 5-year program, generating $20,000 to $30,000 of revenue per site, including a mix of services and systems [65] Question: What are the key verticals driving Identity? - Key verticals include consumer goods, retail, hospitals, and security-conscious enterprises like banking and healthcare [66] Question: What is the mix between new and existing customers in bookings? - The majority of revenue comes from existing customers, but there is an increasing proportion of new sales to new customers, particularly in federal government agencies [67] Question: Will the seasonality of earnings continue? - It is expected that earnings will grow sequentially throughout the year, with less reliance on a peak in the third quarter [69] Question: Is there an uptick in access control in the educational market? - There is significant growth in the educational market, supported by federal funding for security improvements [71] Question: What is driving the increase in recurring revenue? - The increase is driven by technology platforms, particularly in access control, with expectations for growth across other segments as well [72] Question: Who were the primary competitors in the U.S. Marshals deal? - Competitors included Lenel, Software House, and Gallagher, with the company demonstrating a superior solution [75] Question: How does the company plan to leverage new NFC technologies? - The company is focused on enabling frictionless access through mobile devices, leveraging partnerships for secure mobile identity issuance [82][84] Question: What is the company's stance on video surveillance amid export restrictions? - The company has no exposure to restricted vendors and sees an opportunity to displace them in the market [79]

NASDAQ: INVE | --- | --- | --- | |--------------------------------------------|-------|-------| | | | | | | | | | Making the Physical World Digital & Secure | | | | INVESTOR PRESENTATION | | | | September 2019 | | | | | | | Safe Harbor Note Regarding Forward-Looking Information This presentation 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 curre ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION For the fiscal year ended December 31, 2018 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to COMMISSION FILE NUMBER 0-29440 IDENTIV, INC. (Exact Name of Registrant as Specified in its Charter) (State or other jurisdiction of (I.R.S. Employer Incorporation or organization) Identification Number) Washington, D.C. 20549 Form 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE ...