Slide 1: Q4 and FY 2023 Earnings Conference Call
Q4 and FY 2023 Earnings Conference Call Tuesday, March 12, 2024, at 5:00PM EDT © 2024 Identiv, Inc. | All Rights Reserved | NASDAQ: INVE
Slide 2: Safe Harbor
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: Agenda
Agenda I. Recent Business Highlights II. Q4 and FY 2023 Financial Review III. 2024 Business Drivers IV. Q&A Session 3 © 2024 Identiv, Inc. | All Rights Reserved | NASDAQ: INVE
Slide 4: Recent Business Highlights
Recent Business Highlights • Record fiscal year revenue at $116.4 million • Delivered $4.8 million in Cash Flow from Operations in Q4 2023 • Strategic Review • Ongoing process • Continued to be a major focus and activity in Q4 2023 • A primary focus of the management team and Board • Goal: maximize
Slide 5: Recent Business Highlights: Identity Segment Updates
Recent Business Highlights Partnered with Mazars on a new AI- • Identity Segment Updates enabled retail operations solution • Shipped nearly 200M RFID units in FY 2023 • Healthcare vertical accounted for more than half of NFC-based revenue; ongoing pilot projects with over 2 dozen healthcare compani
Slide 6: Recent Business Highlights: Premises Segment Updates
Recent Business Highlights Complete Security Platform • Premises Segment Updates • Core PACS business up 9% year-over-year • Product Releases include: • SMB Products: Primis, EG2, Primis mobile app • Enterphone 10.3 and Enterphone Mobile • Vision AI standard feature in all our video offerings. • Scr
Slide 7: Q4 2023 Summary
Q4 2023 Summary • Premises • Strengthened industry-wide, with software services and recurring revenues reaching well over 20% of Premises revenues exiting 2023 • Product releases strengthen market positioning across cloud, AI analytics, SMB and next-generation sensors and biometrics • Identity • Foc
Slide 8: Q4 and FY 2023 Financial Review
Q4 and FY 2023 Financial Review
Slide 9: Financial Overview
Financial Overview Metric Q4’23 Q3’23 Q4’22 FY 2023 FY 2022 Revenue $29.0M $31.8M $29.0M $116.4M $112.9M GAAP Gross Margin 35.1% 37.5% 36.5% 36.2% 36.3% Non-GAAP Gross Margin* 37.0% 39.1% 37.9% 37.9% 37.6% GAAP Operating Expenses $11.8M $11.6M $10.2M $47.2M $41.3M Non-GAAP Operating Expenses* $9.8M
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 $28.5 $27.9 $26.0 $25.1 $18.3 $19.2 $16.8 $17.7 $17.5 $17.5 $17.0 $14.7 $14.6 38% 38% 39% 37% 37% 38% 37% 37% 34% $12.2 $13.6 $11.0 $10.5 $10.9 $11.8 $11.3 $11.9 $11.5 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Note:
Slide 11: Total Revenue and Non-GAAP Adjusted EBITDA Operating Expenses
Total Revenue and Non-GAAP Adjusted EBITDA Operating Expenses* Revenue Adj. EBITDA Non-GAAP Operating Expenses % $31.0 $31.8 $29.0 $29.6 $29.0 $28.5 $27.9 $26.0 $25.1 41% 37% 36% 36% 33% 32% 34% 31% 32% $2.0 $2.2 -$0.7 $0.2 $1.4 $1.7 -$0.9 $0.7 $0.9 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4
Slide 12: Q4 2023 Cash Flow and Balance Sheet
Q4 2023 Cash Flow and Balance Sheet (in $M) Cash Position Assets Q4'22 Q3'23 Q4'23 Liabilities & Equity Q4'22 Q3'23 Q4'23 Cash Flow Q4'22 Q3'23 Q4'23 Cash & cash equivalents* 17.1 20.9 24.4 Accounts payable 15.2 12.1 12.3 From operations* (4.8) (0.3) 4.8 Accounts receivable 24.8 25.9 22.0 Financial
Slide 13: 2024 Business Drivers
2024 Business Drivers
Slide 14: 2024 Overall Strategy
2024 Overall Strategy Delivering Healthy Expanding Our Growth with Strong Technology Leadership Margins with a focus on through Next Recurring Revenue Generation Products Protecting Our Progress Towards Our Balance Sheet and Long-Term Operating Working Capital Model 14 © 2024 Identiv, Inc. | All Rig
Slide 15: IoT Business Drivers
IoT Business Drivers • IoT Strategy • Supporting pilots for technically complex SCRI applications, particularly in the healthcare and consumer engagement verticals. • Solidifying our reputation as a specialty applications provider, reinforcing our industry leadership, as evidenced by our joint marke
Slide 16: Physical Security Business Drivers
Physical Security Business Drivers • Physical Security Strategy • Offering a tightly integrated end-to-end physical security solution. • Growing our leading position in federal physical security product sales including on-premises and cloud-based services. • Bringing high-security to the SMB market,
Slide 17: Summary of Business Drivers
Summary of Business Drivers • Summary • Keeping a strong balance sheet, with healthy working capital to fund our strategic growth initiatives. • Continuing to tightly manage our expenses, prioritizing investments in key growth initiatives. • Progressing with our value creation and industry leadershi
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 Year Ended December 31, September 30, December 31, December 31, December 31, 2023 2023 2022 2023 2022 Net revenue $ 28,985 $ 31,84
Slide 21: Balance Sheet
Balance Sheet (unaudited, in $’000) Identiv, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) December 31, September 30, December 31, 2023 2023 2022 ASSETS Current assets: Cash and cash equivalents $ 23,312 $ 19,674 $ 16,650 Restricted cash 1,072 1,254 487 Accounts receivable, n
Slide 22: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation (unaudited, in $M) FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY 2021 2022 2022 2022 2022 2022 2023 2023 2023 2023 2023 Reconciliation of GAAP gross margin to non-GAAP gross margin GAAP gross margin (%) 36% 36% 37% 36% 36% 36% 35% 37% 37% 35% 36% GAAP gross profit $37.1 $9.0 $10.2