Slide 1: Q1 2024 Earnings Conference Call
Q1 2024 Earnings Conference Call Wednesday, May 8, 2024, at 5:00PM EDT © 2024 Identiv, Inc. | All Rights Reserved | NASDAQ: INVE
Slide 2: Safe Harbor: Forward-Looking Information
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 current expectati
Slide 3: Safe Harbor: Additional Information and Where to Find It
Safe Harbor Additional Information and Where to Find It On April 2, 2024, Identiv entered into a Stock and Asset Purchase Agreement with Hawk Acquisition, Inc. (“Buyer”), whereby Identiv agreed to sell its physical security business to Buyer (the “Transaction”). Identiv has filed a preliminary proxy
Slide 4: Agenda
Agenda I. Asset Sale Transaction Summary II. Kirsten Newquist Introduction III. Recent Business Highlights IV. Q1 2024 Financial Review V. Post-Asset Sale Transaction Identiv IoT VI. Identiv IoT’s Opportunities VII. Identiv IoT’s Near-Term Priorities VIII. Q&A Session 4 © 2024 Identiv, Inc. | All Ri
Slide 5: Asset Sale Transaction Summary
Asset Sale Transaction Summary • On April 2, Identiv entered into a definitive asset purchase agreement to sell its physical security, access card, and identity reader operations and assets • Gross proceeds to Identiv are approx. $145 million* in cash • At closing, current CEO Steve Humphreys will j
Slide 6: Introducing Kirsten Newquist, President, IoT Solutions
Introducing Kirsten Newquist, President, IoT Solutions • Ideal profile to lead the IoT Solutions business • 25+ years’ experience in strategy, product management, business development, and global sales and marketing • 17 years at Avery-Dennison Corporation, most recently Global Vice President, Avery
Slide 7: Recent Business Highlights
Recent Business Highlights • Premises Segment Updates • Software, services, and recurring revenues grew to 27% of Q1 Premises revenues • Strong interest in our Primis product line • Cloud an interest area in nearly all of our new business opportunities • Deployed demo platforms of Velocity Vision ac
Slide 8: Q1 2024 Financial Review
Q1 2024 Financial Review
Slide 9: Financial Overview
Financial Overview Metric Q1’24 Q4’23 Q1’23 Revenue $22.5M $29.0M $26.0M GAAP Gross Margin 37.3% 35.1% 35.4% Non-GAAP Gross Margin* 39.9% 37.0% 37.1% GAAP Operating Expenses $12.6M $11.8M $11.9M Non-GAAP Operating Expenses* $10.4M $9.8M $10.6M GAAP Net Loss** ($4.8M) ($1.9M) ($3.0M) EPS (GAAP) Dilut
Slide 10: Segment Revenue and Non-GAAP Gross Margin
Segment Revenue and Non-GAAP Gross Margin* $31.8 $31.0 $29.0 $29.6 $29.0 $27.9 $26.0 $25.1 $22.5 $18.3 $19.2 $16.8 $17.7 $17.5 $17.0 $14.7 $14.6 $12.8 39% 40% 37% 38% 37% 38% 37% 38% 37% $12.2 $13.6 $10.5 $10.9 $11.8 $11.3 $11.9 $11.5 $9.7 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Note:
Slide 11: Total Revenue, Non-GAAP Adjusted EBITDA and Operating Expenses
Total Revenue and Non-GAAP Adjusted EBITDA and Non-GAAP Operating Expenses* Revenue Non-GAAP Adj. EBITDA Non-GAAP Operating Expenses % $31.0 $31.8 $29.0 $29.6 $29.0 $27.9 $26.0 $25.1 $22.5 46% 41% 36% 36% 33% 32% 34% 31% 32% $1.4 $2.0 $1.7 $2.2 $0.2 -$0.9 $0.7 $0.9 -$1.4 Q1'22 Q2'22 Q3'22 Q4'22 Q1'2
Slide 12: Q1 2024 Cash Flow and Balance Sheet
Q1 2024 Cash Flow and Balance Sheet (in $M) Cash Position Assets Q1'23 Q4'23 Q1'24 Liabilities & Equity Q1'23 Q4'23 Q1'24 Cash Flow Q1'23 Q4'23 Q1'24 Cash & cash equivalents* 21.2 24.4 22.4 Accounts payable 9.9 12.3 9.6 From operations* (4.7) 4.8 (1.3) Accounts receivable 21.1 22.0 17.8 Financial li
Slide 13: Identiv IoT Post-Close
Identiv IoT Post-Close
Slide 14: Post-Asset Sale Transaction Identiv IoT
Post-Asset Sale Transaction Identiv IoT • The infusion of capital will fortify our balance sheet to support the growth of our specialty IoT business into what we expect to be a key player in the healthcare industry and other high-value end markets • Transforming industries takes time, particularly a
Slide 15: Identiv IoT's Opportunity in Healthcare
Identiv IoT’s Opportunity in Healthcare • Why Kirsten Joined Identiv • Familiar with Identiv from her RFID experience, driven to join by the opportunity to lead an entrepreneurially-oriented public company with a strong portfolio of products and solutions in an exciting and growing IoT industry • Ou
Slide 16: Opportunity in High-Value Segments and Thailand
Identiv IoT’s Opportunity in High-Value Segments and Thailand • Evaluating opportunities in other high value segments • In parallel to healthcare, we will evaluate opportunities in specialty retail, smart packaging, and smart home devices • We expect their ability to adopt new solutions will be quic
Slide 17: Identiv IoT's Near-Term Priorities
Identiv IoT’s Near-Term Priorities • Building a plan to drive to operational excellence • Imperative that our core business is focused, disciplined, and resourced appropriately so it can provide a solid foundation to build upon the longer-term opportunities we will be pursuing. • Developing strategi
Slide 18: Thank You, Q&A Session
THANK YOU Q&A Session Visit identiv.com for more information today.
Slide 19: Appendix
Appendix
Slide 20: Income Statement
Income Statement (unaudited, in $’000) Identiv, Inc. Condensed Consolidated Statements of Operations (in thousands, except per share data) (unaudited) Three Months Ended March 31, December 31, March 31, 2024 2023 2023 Net revenue $ 22,494 $ 28,985 $ 25,997 Cost of revenue 14,102 18,821 16,786 Gross
Slide 21: Balance Sheet
Balance Sheet (unaudited, in $’000) Identiv, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) March 31, December 31, 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 21,623 $ 23,312 Restricted cash 811 1,072 Accounts receivable, net of allowances 17,811 21,969 Invent
Slide 22: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation (unaudited, in $M) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 2022 2022 2022 2022 2022 2023 2023 2023 2023 2023 2024 Reconciliation of GAAP gross margin to non-GAAP gross margin GAAP gross margin (%) 36% 37% 36% 36% 36% 35% 37% 37% 35% 36% 37% GAAP gross profit $9.0 $10.2 $11.2