Slide 1: Q2 2024 Earnings Conference Call
Q2 2024 Earnings Conference Call Thursday, August 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: Non-GAAP Financial Measures
Safe Harbor 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. Identiv uses non-GAAP financial measures internally in
Slide 4: Agenda
Agenda I. Business Update II. Update on IoT Business III. Q2 2024 Financial Review IV. Identiv IoT Strategic Growth Plan Post-Transaction Close V. Q&A Session 4 © 2024 Identiv, Inc. | All Rights Reserved | NASDAQ: INVE
Slide 5: Business Update
Business Update • Q2 Business Priorities: • Kirsten Newquist • Understanding core IoT business • Developing a rigorous plan for future growth • CFIUS: only remaining regulatory step before closing transaction • 96% of voting stockholders approved • Gross margin pressure • Mix in the security busines
Slide 6: Update on IoT Business
Update on IoT Business • Opportunity space for Identiv’s specialty IoT solutions is strong • Strengthening our relationships with our channel customers • Many promising customer-driven new product development opportunities in progress • Implementing a stage-gate process to actively manage projects •
Slide 7: Update on IoT Business
Update on IoT Business • Once all production shifted to Thailand and full productivity achieved, we expect non-GAAP gross margin to reach 26%-28% • With a focus on higher-margin segments: 30%+ non-GAAP gross margin could be achieved • Engaged external advisor to assess our current business processes
Slide 8: Q2 2024 Financial Review
Q2 2024 Financial Review
Slide 9: Note Regarding GAAP Financial Results
Note Regarding GAAP Financial Results • In accordance with GAAP, revenue and operating expenses directly related to the Physical Security Business must be removed from their applicable statements of operations captions for continuing operations and reported for all periods presented as net income fr
Slide 10: Financial Results for Q2 2024
Financial Results for Q2 2024 Metric Q2’24 Q2’23 Net Revenue $6.7M $11.5M GAAP Gross Margin 9.1% 14.2% Non-GAAP Gross Margin* 14.6% 16.6% GAAP Operating Expenses $7.3M $5.0M Non-GAAP Operating Expenses* $4.7M $4.4M GAAP Net Loss from Continuing Operations** ($6.9M) ($3.5M) EPS from Continuing Operat
Slide 11: GAAP and Non-GAAP Aggregated Information for Q2 2024
GAAP and Non-GAAP Aggregated Information for Q2 2024 Metric Q2’24 Q2’23 Total Revenue from Continuing Operations and $24.3M $29.6M Revenue from Discontinued Operations Non-GAAP Aggregated Gross Margin 35.0% 36.7% Adjusted Non-GAAP Aggregated Gross Margin* 37.3% 38.2% Non-GAAP Aggregated Operating Ex
Slide 12: Asset Sale Transaction Expectations and Outlook
Asset Sale Transaction Expectations and Outlook • Expected net proceeds to be approx. $130 million • Expected 12-month net cash use, including interest, $14 million to $16 million • IoT Business Q3 2024 revenue estimated to be $5.8 million to $6.1 million • If the strategic transaction does not clos
Slide 13: Identiv IoT Strategic Growth Plan Post-Transaction Close
Identiv IoT Strategic Growth Plan Post-Transaction Close
Slide 14: IoT Strategic Growth Plan: Short Term
Identiv IoT Strategic Growth Plan: Short Term • Clear focus for growing our core channel business • Leverage existing customers, partners and product portfolio to grow channel • Product focus continues to be HF/NFC, Dual Frequency (DF), and BLE • Evaluate specialty UHF applications to build a compet
Slide 15: IoT Strategic Growth Plan: Medium Term
Identiv IoT Strategic Growth Plan: Medium Term • Evaluating high-value and high-growth segments • Addressing customer needs with highly engineered solutions that can be introduced into the market in a shorter time frame • Segment focus: smart home devices, smart packaging, and specialty retail • Est
Slide 16: IoT Strategic Growth Plan: Longer Term
Identiv IoT Strategic Growth Plan: Longer Term • Transformational growth strategy: healthcare, medical device, and pharmaceutical industries • Evaluating the broad range of healthcare-related IoT applications • Strong market dynamics, large potential TAMs, and long-term competitive advantage • Narro
Slide 17: IoT Strategic Growth Plan: Summary
Identiv IoT Strategic Growth Plan: Summary • Prioritize all high-growth segments and develop our overarching go to market plan • Invest capital in these new growth areas that have a compelling return on investment • Opportunities for inorganic growth will also be considered, assuming strong synergie
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: Condensed Consolidated Statements of Operations
Condensed Consolidated Statements of Operations (unaudited, in $’000) Identiv, Inc. Condensed Consolidated Statements of Operations (in thousands, except per share data) (unaudited) Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2024 2023 2024 2023 Net revenue $ 6,741 $ 11,4
Slide 21: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (unaudited, in $’000) Identiv, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) June 30, December 31, 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 18,435 $ 23,312 Restricted cash 566 1,072 Accounts receivable, net of allowanc
Slide 22: Reconciliation of GAAP to Non-GAAP: Continuing Operations
Reconciliation of GAAP to Non-GAAP Financial Information – Continuing Operations (unaudited, in $’000) Identiv, Inc. Reconciliation of GAAP to Non-GAAP Financial Information - Continuing Operations (in thousands) (unaudited) Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 202
Slide 23: Reconciliation of GAAP to Non-GAAP: Aggregated View
Reconciliation of GAAP Financial Information to Non-GAAP Aggregated View (unaudited, in $’000) Identiv, Inc. Reconciliation of GAAP Financial Information to Non-GAAP Aggregated View (in thousands) (unaudited) Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2024 2023 2024 2023
Slide 24: Reconciliation to Adjusted Non-GAAP: Aggregated View
Reconciliation of GAAP Financial Information to Non-GAAP Aggregated View (unaudited, in $’000) Identiv, Inc. Reconciliation of GAAP to Adjusted Non-GAAP Financial Information - Non-GAAP Aggregated View (in thousands) (unaudited) Three Months Ended Six Months Ended June 30, June 30, June 30, June 30,