Identiv, Inc. · NASDAQ:INVE
Identiv — Investor Presentation (December 2022)
25 slides from Identiv's investor presentation, December 2022
Slide 1: Making the Physical World Digital & Secure
Making the Physical World Digital & Secure INVESTOR PRESENTATION December 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 ✓ RFID-enabled IoT market – Use cases with multi-billion-unit market potential Technology Leading RFID(1) ✓ Technology leader: patented technology & IP Use cases: Enabling use cases with hundreds of – Trusted first-mover: design wins with early adopters billions of
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: RFID/IoT Transponders: Digital + Analog + Mechanical + Software
RFID/IoT Transponders: Digital + Analog + Mechanical + Software INTEGRATED CIRCUIT + SENSORS DEVICE ANTENNA: MANAGEMENT/ POWER + DATA SERVICE BUREAU CONVERSION
Slide 6: RFID-IoT: Embedded, SaaS-enabled, remotely updated experiences
RFID-IoT: Embedded, SaaS-enabled, remotely updated experiences AUTHENTICATE / VALIDATE MOTION TAMPER DETECTION DETECTION CONSUMER EXPERIENCE TEMPERATURE / CAPACITIVE MOISTURE SENSING DETECTION
Slide 7: Verticals We Serve
Verticals We Serve NFC & MOBILITY HEALTHCARE ACCESS & TRANSPORT & PHARMACY EVENT & GAMING LEISURE LIBRARY AUTHENTICATION SMART PACKAGING (including cannabis, Otaca, etc)
Slide 8: Our Business Segments
Our Business Segments IDENTITY SEGMENT: SECURING THINGS • 62% of Q3 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 • 38% of Q1 2022 Tot
Slide 9: Q3 2022 Business Highlights
Q3 2022 Business Highlights Initial Order of 25 Million Units for Wiliot’s IoT Pixel Tags • Overview: Growth in Premises and Identity; Supply chain constraints in Identity • Revenue: Quarterly record at $31.0 million • Revenue in the Identity segment was a record $19.2 million • Record Premises reve
Slide 10: Q3 2022 Business Highlights
Q3 2022 Business Highlights • IoT Market Leadership & Customer Expansion • Record number of non-recurring engineering (NRE) contracts grew from 38 in Q2 to 56 at end of Q3 • 25-million-unit initial order from IoT pioneer Wiliot for their BLE + RFID IoT Pixel tags • Cutting-edge technology: Refine &
Slide 11: Total Revenue & Non-GAAP Adjusted EBITDA Operating Expenses
Total Revenue & Non-GAAP Adjusted EBITDA Operating Expenses Revenue Adj. EBITDA $31.0 Non-GAAP Operating Expenses % $29.1 $28.5 $27.9 $24.9 $24.8 $25.1 $24.0 $22.2 $19.1 40% 37% 36% 33% 34% 33% 31% 30% 30% 28% $0.5 $1.4 $1.2 $1.4 $2.0 $0.4 -$0.7 $0… $2.8 $3.2 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'2
Slide 12: 2022 and 2023 RFID Growth Drivers
2022 and 2023 RFID Growth Drivers • Q4 & 2023 RFID Growth • Total backlog up 31%, backlog for Q4 delivery up 42% • Transformational projects: • Wiliot BLE IoT order: 25 million units requested for Q4; projected higher quarterly run rate throughout 2023 • Specialty retail & consumer engagement • Cann
Slide 13: 2022 and 2023 Growth: Premises
2022 and 2023 Growth: Premises • Premises Growth • Growth continuing >> Industry growth rate • Growth unconstrained by supply • Commercial sales accelerating across multiple verticals • Long-term growth trend in federal government security spending • Most complete physical security platform availabl
Slide 14: Identiv At Scale – Long-Term Operating Model
Identiv At Scale – Long-Term Operating Model(1) (1) Subject to change and not intended as guidance. See disclaimers for important information. *Non-GAAP measure. See reconciliation to GAAP for historical periods.
Slide 15: Appendix
Appendix 15 © 2022 Identiv, Inc. | All Rights Reserved | NASDAQ: INVE
Slide 16: Technology Launches
Pipeline Development Design Wins Tag on Metal (patented): Mobile Device Accessories: RFID Labels Attached to a Jersey with Embedded NFC tag: Personal Transportation, NFC/RFID Patient’s Prescription Packaging Authentication & a Connected App Clips Reliability & Quality experience in Brand Experience
Slide 17: Embedded IoT Market
Embedded IoT Market 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 experience cases, wallets, charg
Slide 18: RFID Market: IoT Embedded Everywhere
RFID Market: IoT Embedded Everywhere Why Now? Why Identiv? How Big? Why Now? • Apple & Android 100% adoption of NFC • Ecommerce & contactless/touchless: requires direct product-to-customer engagement • Medical device adoption driven by efficiency, self-administration, authenticity & trust • 3rd gene
Slide 19: 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 20: Strategic Priorities and Business Drivers
Strategic Priorities and Business Drivers RFID: Massive & expanding TAM • NFC & RFID deploying everywhere • Medical devices & pharmaceuticals: Huge benefits, strong margins, high switching will become core competitive advantage for medical • Specialty packaging, authenticity & consumer engagement: C
Slide 21: Segment Revenue & Non-GAAP Gross Margin
Segment Revenue & Non-GAAP Gross Margin $31.0 $29.1 $28.5 $27.9 $24.9 $24.8 $25.1 $24.0 $22.2 $19.1 $19.2 $15.5 $15.8 $18.7 $17.5 $17.0 $14.6 $14.8 $13.7 $11.6 $10.4 $11.0 $10.5 $10.9 $11.8 $9.4 $9.0 $8.5 $9.2 $7.5 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Please refer to a reconci
Slide 22: Q3 2022 Cash Flow and Balance Sheet
Q3 2022 Cash Flow and Balance Sheet (in $M) Cash Position $36.4 $29.2 $29.8 $28.7 $25.9 * 2.0 (4.1) (1.4) (0.3) (0.2) * $21.9 $13.1 $12.3 $11.4 $11.5 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Net income Changes in Investing Financing FX effect Q3'22 excl. non- operating activities activi
Slide 23: Income Statement
Income Statement (unaudited, in $’000) Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, September 30, 2022 2022 2021 2022 2021 Net revenue $ 30,996 $ 27,857 $ 29,097 $ 83,914 $ 75,252 Cost of revenue 19,808 17,647 17,979 53,550 47,602 Gross profit 11,188 10,210
Slide 24: Balance Sheet
Balance Sheet (in $’000) September 30, June 30, March 31, December 31, 2022 2022 2022 2021 ASSETS Current assets: Cash and cash equivalents $ 21,202 $ 25,016 $ 27,614 $ 28,553 Restricted cash 698 905 1,074 1,254 Accounts receivable, net of allowances 23,588 20,951 19,452 19,963 Inventories 25,060 22
Slide 25: Operating Results & Non-GAAP Adjusted EBITDA Reconciliation
Operating Results & Non-GAAP Adjusted EBITDA Reconciliation (in $M) Q3 2020 Q4 2020 FY 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Q1 2022 Q2 2022 Q3 2022 Reconciliation of GAAP gross profit margin and non-GAAP gross profit margin GAAP gross profit margin (%) 40% 35% 39% 35% 37% 38% 33% 36% 36% 37%