Identiv, Inc. · NASDAQ:INVE
Identiv — Investor Presentation (August 2022)
20 slides from Identiv's investor presentation, August 2022
Slide 1: Making the Physical World Digital & Secure
Making the Physical World Digital & Secure INVESTOR PRESENTATION August 2022 © 2022 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: Investment Thesis and Identiv Snapshot
Investment Thesis Identiv Snapshot ✓ Inflection point: Booming RFID-enabled IoT market – Use cases with multi-billion-unit market potential launching now Technology Leading RFID(1) – Launches scaling up & use cases multiplying Use cases: Enabling use cases with 100’s of ✓ Technology leader: patented
Slide 4: Our Vision: Software-enabling the Physical World
Our Vision: Software-enabling the Physical World RFID embedded in every item to make the physical world digital – enabling the Internet of Things (IoT) • Our RFID devices have been integrated into over 1½ Billion physical internet of things worldwide • Sensor-enabled RFID: Temperature, pressure, sho
Slide 5: Embedded IoT Market at an Inflection Point
Embedded IoT Market at an Inflection Point Apple MagSafe NFC-enabled platform for CVS Spoken RXTM leverages RFID to read prescription NFC allows fans to tap the tag and access intelligent mobile device accessories: information out loud for visually impaired customers OTACA’s custom digital experienc
Slide 6: Identiv's Leading Innovation Advantage: 10+ Years, Deep IP, Trusted by Leaders
Identiv’s Leading Innovation Advantage: 10+ Years, Deep IP, Trusted by Leaders IDENTIV INNOVATION CYCLE Vertically integrated and fast response • Fast delivery from ideation → initial protype → full scale development Design / • World-class RFID design & scale-up expertise Scale up Redesign Quickly a
Slide 7: Technology Launches
Pipeline Development Design Wins Tag on Metal (patented): Mobile Device Accessories: RFID-Enabled Smart Packaging Jersey with Embedded NFC tag: Personal Transportation, NFC/RFID for Cannabis Market Authentication & a Connected App Clips Reliability & Quality experience in Brand Experience noisy RF s
Slide 8: Our Business Segments
Our Business Segments IDENTITY SEGMENT: SECURING THINGS • 61% of Q2 2022 Total Revenue • Provides pervasive, RFID-enabled IoT devices • Bringing digital identity to physical ‘things’ • Customized antenna designs and in-house RFID personalization PREMISES SEGMENT: SECURING PLACES • 39% of Q1 2022 Tot
Slide 9: Q2 2022 Business Highlights
Q2 2022 Business Highlights • Q2 2022 Overview RFID-Enabled Smart Packaging for Cannabis Market • RFID revenue up 41% year-over-year • GAAP gross margins up sequentially to 37% • Non-GAAP gross margins up sequentially to 38% • Premises revenues up 19% year-over-year, 3x the industry growth rate • To
Slide 10: Q2 2022 Business Highlights
Q2 2022 Business Highlights • Premises Segment Updates • 19% growth year-over-year → 3x industry growth rate • Expanding Commercial demand: now over half of Premises revenues • Commercial strength + Federal strength • Sustainable 3x market growth: Demand for security solutions is recession-resistant
Slide 11: Strategic Priorities and Business Drivers
Strategic Priorities and Business Drivers Internet of Things: Massive & expanding TAM for RFID-enabled devices • NFC & RFID deploying everywhere – creating a digital identity for every physical object • Medical devices & pharmaceuticals: Huge benefits, strong margins, high switching → will become co
Slide 12: 2022 Outlook & RFID Drivers that Enable the IoT
2022 Outlook & RFID Drivers that Enable the IoT • Strong Execution of Growth Strategy for RFID-Enabled IoT Devices • Securing our leading position in the burgeoning RFID-enabled IoT sector • Company record number of NRE engagements leading to design-in wins with a wide range of use cases – 38 projec
Slide 13: 2022 Trends & Outlook
2022 Trends & Outlook • Sustainable Premises Growth, Possibly Expanding • Commercial sales accelerating across multiple verticals • Public sector markets (airports, schools) • Long-term growth trend in federal government security spending • Federal government fiscal year-end in Q3 • Resilient vs. Po
Slide 14: Appendix
Appendix 14 © 2022 Identiv, Inc. | All Rights Reserved | NASDAQ: INVE
Slide 15: Segment Revenue & Non-GAAP Gross Margin
Segment Revenue & Non-GAAP Gross Margin $29.1 $28.5 $27.9 $24.9 $24.8 $25.1 $24.0 $22.2 $19.1 $18.1 $15.4 $18.7 $17.5 $16.9 $14.6 $15.8 $14.8 $11.6 $13.7 $9.9 $9.4 $10.4 $11.0 $10.5 $10.9 $8.2 $9.0 $8.5 $9.2 $7.5 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Please refer to a reconcili
Slide 16: Total Revenue & Non-GAAP Adjusted EBITDA Operating Expenses
Total Revenue & Non-GAAP Adjusted EBITDA Operating Expenses Revenue Adj. EBITDA Non-GAAP Operating Expenses % $28.5 $27.9 $24.9 $24.8 $29.1 $25.1 $24.0 $22.2 $19.1 $18.1 45% 40% 34% 37% 33% 36% 33% 30% 30% 28% $2.8 $3.2 $1.4 $1.4 $0.5 $0.4 $1.2 -$0.7 $0.2 -$0.3 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3
Slide 17: Q2 2022 Cash Flow and Balance Sheet
Q2 2022 Cash Flow and Balance Sheet (in $M) Cash Position $36.4 $29.2 $29.8 * $28.7 $1.1 $(2.0) $(1.1) $(0.2) ($0.6) * $25.9 $13.1 $12.3 $11.4 $11.5 $8.7 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Net loss Changes in Investing Financing FX Effect Q2'22 excl. non- operating Activities acti
Slide 18: Income Statement
Income Statement (unaudited, in $’000) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2022 2022 2021 2022 2021 Net revenue $ 27,857 $ 25,061 $ 23,993 $ 52,918 $ 46,155 Cost of revenue 17,647 16,095 15,153 33,742 29,623 Gross profit 10,210 8,966 8,840 19,176 16,532
Slide 19: Balance Sheet
Identiv, Inc. Balance Sheet Condensed Consolidated Balance Sheets (in thousands) (unaudited) (in $’000) June 30, March 31, December 31, 2022 2022 2021 ASSETS Current assets: Cash and cash equivalents $ 25,016 $ 27,614 $ 28,553 Restricted cash 905 1,074 1,254 Accounts receivable, net of allowances 20
Slide 20: Operating Results & Non-GAAP Adjusted EBITDA Reconciliation
Operating Results & Non-GAAP Adjusted EBITDA Reconciliation (in $M) Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 2020 2020 2020 2020 2021 2021 2021 2021 2021 2022 2022 Reconciliation of GAAP gross profit margin and non-GAAP gross profit margin GAAP gross profit margin (%) 40% 40% 35% 39% 35% 37% 38% 33% 36% 36%