Slide 1: Earnings Conference Call Q3 2024
TECHNOLOGY WITH A MISSION Earnings Conference Call Q3 2024 November 7, 2024
Slide 2: Safe Harbor | Note Regarding 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 expecta
Slide 3: Safe Harbor | Non-GAAP Financial Measures (con't.)
Safe Harbor | Note Regarding Forward-Looking Information (con’t.) Non-GAAP Financial Measures (Unaudited) This presentation includes financial information that has not been prepared in accordance with GAAP, including non-GAAP adjusted EBITDA, non-GAAP gross margin, and non-GAAP operating expenses. I
Slide 4: Agenda
AGENDA • Business Update – Q3 2024 • Financial Review – Q3 2024 • Business Outlook: Perform. Accelerate. Transform. Framework • Capital Allocation Plan • Corporate Governance Enhancements • Q&A Session © 2024 Identiv, Inc. All Rights Reserved | 4
Slide 5: Business Update | Q3 2024
Business Update | Q3 2024 • Completed the sale of our physical security business to Vitaprotech • Expected net cash proceeds of approx. $135 million* • Q3 net revenue: $6.5 million, above previously announced guidance • On track to complete majority of RFID production transition from Singapore to Th
Slide 6: Financial Review | Q3 2024
Financial Review | Q3 2024
Slide 7: Financial Results | Q3 2024
Financial Results | Q3 2024 Metric Q3 2024 Q3 2023 Net Revenue $6.5M $11.7M GAAP Gross Margin 3.6% 11.2% Non-GAAP Gross Margin* 9.3% 14.0% GAAP Operating Expenses $9.8M $4.6M Non-GAAP Operating Expenses* $5.1M $4.1M GAAP Net Loss from Continuing Operations** ($9.3M) ($3.7M) EPS from Continuing Opera
Slide 8: Net Proceeds and Q4 2024 Outlook
Net Proceeds and Q4 2024 Outlook ➔ Expected net proceeds from the asset sale to be approx. $135 million* ➔ Expected 12-month cash use, net of interest income and transaction-related costs, is $14 million to $16 million** ➔ Expected Q4 2024 revenue: $6.0 million to $6.3 million *After taxes, transact
Slide 9: Business Outlook: Perform. Accelerate. Transform.
Business Outlook Perform. Accelerate. Transform.
Slide 10: Strong Macro Trends Driving Demand for Identiv's Unique Value Proposition
Strong Macro Trends Driving Demand for Identiv’s Unique Value Proposition Strong Macro Trends Driving Demand for RFID and Related Technologies Compelling Benefits from Digital ID of Products through RFID and Next Gen Technologies Emerging RFID Applications Often Require New and More Complex Solution
Slide 11: Strategic Framework Perform. Accelerate. Transform.
Strategic Framework Perform. Accelerate. Transform. Perform Accelerate Transform Strengthen and expand the core Accelerate growth in key high value Create significant business “channel” business segments and through technology expansion and capability growth innovation through M&A to achieve long te
Slide 12: Perform | Strengthen & Expand the Core Business
Perform | Strengthen & Expand the Core Business What It Means For Identiv How We Plan To Achieve It • Expand Core “Channel” Business • Establish clear performance metrics and goals • Grow market share focused on higher • Complete production transition to Thailand margin opportunities • Build lead ge
Slide 13: Accelerate | Growth in High-Value Segments
Accelerate | Growth in High-Value Segments What It Means For Identiv How We Plan To Achieve It Accelerate growth by focusing/investing in three • Build business development team to target compelling growth initiatives, each with a strong NPV specific use cases and applications, including segment mar
Slide 14: Transform | Strategic M&A
Transform | Strategic M&A What It Means For Identiv How We Plan To Achieve It • Expedite reaching EBITDA breakeven • Evaluate potential M&A “tuck in” targets that fit the through acquisitions to build scale investment criteria: and expand products/capabilities, • Companies with $5M-$30M revenue whil
Slide 15: Capital Allocation Framework
Capital Allocation Framework* Expected Cash From Asset Sale: $135 Million** Intended Use of Capital Target Allocation Organic core business + growth investments 25% - 30% Strategic M&A 35% - 40% Working Capital Purposes 25% - 30% Stock Repurchase Program $10.0M * Estimated, subject to change. ** Aft
Slide 16: Corporate Governance Updates
Corporate Governance Updates ➔ Eliminate Identiv’s classified Board structure ➔ In uncontested elections, the Board will consider the resignation of any director who does not receive a majority vote ➔ Has amended stock incentive plan to eliminate the ability to reprice options without prior stockhol
Slide 17: Key Takeaways
Key Takeaways Macro trends driving robust demand in RFID and next-generation 1 technologies provide Identiv the tailwinds to grow and reach profitability Identiv has the right capabilities and RFID-related technology required 2 for emerging applications and high-growth verticals Ample financial reso
Slide 18: Thank You
THANK YOU Visit identiv.com for more information © 2024 Identiv, Inc. All Rights Reserved 18 | 18
Slide 19: Appendix
Appendix
Slide 20: Condensed Consolidated Statements of Operations
Condensed Consolidated Identiv, Inc. Condensed Consolidated Statements of Operations (in thousands, except per share data) Statements of Operations (unaudited) Three Months Ended Nine Months Ended (unaudited, in $’000) September 30, September 30, September 30, September 30, 2024 2023 2024 2023 Net r
Slide 21: Condensed Consolidated Balance Sheets
Identiv, Inc. Condensed Consolidated Condensed Consolidated Balance Sheets (in thousands) (unaudited) Balance Sheets September 30, December 31, 2024 2023 (unaudited, in $’000) Current assets: ASSETS Cash and cash equivalents $ 145,361 $ 23,312 Restricted cash 384 1,072 Accounts receivable, net of al
Slide 22: Reconciliation of GAAP to Non-GAAP Financial Information – Continuing Operations
Reconciliation of GAAP to Identiv, Inc. Reconciliation of GAAP to Non-GAAP Financial Information - Continuing Operations (in thousands) Non-GAAP Financial (unaudited) Three Months Ended Nine Months Ended Information – Continuing September 30, September 30, September 30, September 30, 2024 2023 2024