Identiv(INVE) - 2025 Q1 - Quarterly Results

Company Overview & Strategy Identiv outlines its strategic framework, recent corporate developments, and key partnerships for long-term growth Company Introduction Identiv, a global leader in RFID and BLE IoT solutions, released its first quarter 2025 financial results - Identiv is a global leader in RFID and BLE IoT solutions[1] CEO Statement & Strategic Framework CEO Kirsten Newquist detailed the "Perform-Accelerate-Transform" strategic framework for pure IoT solutions and long-term growth - Identiv initiated its "Perform-Accelerate-Transform" (P-A-T) strategic framework in Q1 2025, transitioning to a pure IoT solutions provider[2] - The company aims for long-term growth by strengthening core competencies, expanding strategic partnerships, and innovating product development[2] Recent Developments & Partnerships Identiv announced a new board appointment and strategic partnerships for cold chain tracking and smart BLE tag development - Experienced financial expert Mick Lopez was appointed to Identiv's Board of Directors[1] - Partnership with Tag-N-Trac provides cold chain tracking and compliance solutions for the pharmaceutical industry[1] - Collaboration with InPlay focuses on developing smart BLE tags for IoT logistics applications[1] Financial Results - First Quarter 2025 Identiv's first quarter 2025 financial performance shows revenue, gross margin, operating expenses, net loss, and adjusted EBITDA Revenue and Gross Margin Revenue and gross margins declined year-over-year, impacted by exiting low-margin businesses and production transfer costs Revenue and Gross Margin Performance | Metric | Q1 2025 | Q1 2024 | Y-o-Y Change | | :----- | :------ | :------ | :--------- | | Revenue | $5.3M | $6.7M | -20.9% | | GAAP Gross Margin | 2.5% | 7.3% | -4.8 pp | | Non-GAAP Gross Margin | 10.8% | 13.4% | -2.6 pp | - Revenue decline was as expected, primarily due to exiting low-margin businesses[3] - Gross margin decrease was mainly due to additional costs from production transfer to Thailand and dual manufacturing during the transition period[3] Operating Expenses Operating expenses increased year-over-year, reflecting targeted investments for organic growth under the P-A-T strategy Operating Expenses Performance | Metric | Q1 2025 | Q1 2024 | Y-o-Y Change | | :----- | :------ | :------ | :--------- | | GAAP Operating Expenses | $5.6M | $5.5M | +1.8% | | Non-GAAP Operating Expenses | $4.5M | $4.1M | +9.8% | - The increase in operating expenses reflects targeted investments by management to support organic growth initiatives under the P-A-T strategic framework[4] Net Loss and EPS Net loss and EPS from continuing operations improved year-over-year due to the non-recurrence of strategic review costs Net Loss and EPS Performance | Metric | Q1 2025 | Q1 2024 | Y-o-Y Change | | :----- | :------ | :------ | :--------- | | GAAP Net Loss from Continuing Operations | ($4.8M) | ($5.4M) | Loss reduced 11.1% | | GAAP EPS (Basic and Diluted) | ($0.21) | ($0.24) | Loss reduced 12.5% | - The improvement in net loss is primarily attributed to the non-recurrence of $0.9 million in strategic review-related costs incurred in Q1 2024[5] Non-GAAP Adjusted EBITDA Non-GAAP adjusted EBITDA loss widened in Q1 2025 compared to the prior year Non-GAAP Adjusted EBITDA Performance | Metric | Q1 2025 | Q1 2024 | Y-o-Y Change | | :----- | :------ | :------ | :--------- | | Non-GAAP Adjusted EBITDA Loss | ($3.9M) | ($3.2M) | Loss widened 21.9% | Financial Outlook Identiv provides its financial guidance for the second quarter of 2025, reflecting current market conditions Second Quarter 2025 Guidance Management anticipates Q2 2025 net revenue to range between $4.9 million and $5.3 million - Management expects Q2 2025 net revenue to be between $4.9 million and $5.3 million[7] Corporate Information This section covers Identiv's business, conference call details, and investor relations contacts About Identiv Identiv's RFID and BLE IoT solutions create digital identities for physical objects, enhancing global connectivity - Identiv's RFID and BLE IoT solutions create digital identities for physical objects, enhancing global connectivity[10] - Its solutions are integrated into over 1.5 billion applications globally, across healthcare, consumer electronics, luxury goods, and smart packaging[10] Conference Call Details Identiv held a conference call on May 7, 2025, to discuss Q1 2025 financial results, with replay available - The conference call to discuss Q1 2025 financial results was held on May 7, 2025, at 5:00 PM ET[8] - A replay of the conference call is available until May 21, 2025[8] Investor Relations This press release includes investor relations and media contacts, along with a forward-looking statements disclaimer - Investor Relations contact: IR@identiv.com[13] - Media contact: press@identiv.com[13] - This press release contains forward-looking statements subject to risks and uncertainties[12] Financial Statements (GAAP) This section presents Identiv's unaudited condensed consolidated GAAP statements of operations and balance sheets Condensed Consolidated Statements of Operations Unaudited condensed consolidated statements of operations detail net revenue, gross profit, operating expenses, and net loss Condensed Consolidated Statements of Operations | Metric (in thousands) | Q1 2025 | Q4 2024 | Q1 2024 | | :-------------------- | :------ | :------ | :------ | | Net Revenue | $5,269 | $6,697 | $6,658 | | Gross Profit (Loss) | $132 | ($995) | $483 | | Total Operating Expenses | $5,600 | $5,630 | $5,546 | | Net Loss from Continuing Operations | ($4,789) | ($4,277) | ($5,382) | | Net Loss Attributable to Common Stockholders | ($4,994) | ($2,683) | ($4,806) | | Basic and Diluted EPS from Continuing Operations | ($0.21) | ($0.19) | ($0.24) | Condensed Consolidated Balance Sheets Unaudited condensed consolidated balance sheets outline assets, liabilities, and stockholders' equity Condensed Consolidated Balance Sheets | Metric (in thousands) | March 31, 2025 | December 31, 2024 | | :-------------------- | :------------- | :---------------- | | Total Current Assets | $148,857 | $152,845 | | Total Assets | $158,735 | $163,225 | | Total Current Liabilities | $7,250 | $7,960 | | Total Liabilities | $8,236 | $9,156 | | Total Stockholders' Equity | $150,499 | $154,069 | Non-GAAP Financial Measures Reconciliation This section provides reconciliations of GAAP to non-GAAP financial measures, explaining their use and adjustments Explanation of Non-GAAP Measures Identiv uses non-GAAP measures to supplement GAAP, excluding specific items to assess ongoing operational performance - Non-GAAP financial measures are used for internal analysis and as supplements to GAAP measures to assess ongoing operational performance and trends[11] - Non-GAAP gross margin excludes stock-based compensation, amortization, and depreciation[11] - Non-GAAP Adjusted EBITDA excludes income taxes, interest, foreign exchange gains/losses, stock-based compensation, amortization and depreciation, restructuring and severance, and strategic transaction-related costs[11] Reconciliation Tables Detailed reconciliation tables are provided for GAAP gross profit, operating expenses, and net loss to non-GAAP measures Reconciliation of GAAP Gross Profit (Loss) to Non-GAAP Gross Profit (Loss) and Non-GAAP Gross Margin | Metric (in thousands) | Q1 2025 | Q4 2024 | Q1 2024 | | :-------------------- | :------ | :------ | :------ | | GAAP Gross Profit (Loss) | $132 | ($995) | $483 | | Total Adjustments | $438 | $646 | $411 | | Non-GAAP Gross Profit (Loss) | $570 | ($349) | $894 | | Non-GAAP Gross Margin | 11% | -5% | 13% | Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses | Metric (in thousands) | Q1 2025 | Q4 2024 | Q1 2024 | | :-------------------- | :------ | :------ | :------ | | GAAP Operating Expenses | $5,600 | $5,630 | $5,546 | | Total Adjustments | ($1,113) | ($1,520) | ($1,490) | | Non-GAAP Operating Expenses | $4,487 | $4,110 | $4,056 | Reconciliation of GAAP Net Loss from Continuing Operations to Non-GAAP Adjusted EBITDA | Metric (in thousands) | Q1 2025 | Q4 2024 | Q1 2024 | | :-------------------- | :------ | :------ | :------ | | GAAP Net Loss from Continuing Operations | ($4,789) | ($4,277) | ($5,382) | | Total Adjustments | $872 | ($182) | $2,220 | | Non-GAAP Adjusted EBITDA | ($3,917) | ($4,459) | ($3,162) |