Slide 1: Q3 2023 Earnings Conference Call
Q3 2023 Earnings Conference Call Tuesday, November 7, 2023, at 5:00PM EST © 2023 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. Q3 2023 Highlights II. Financial Review III. Q4 2023 Business Drivers 3 © 2023 Identiv, Inc. | All Rights Reserved | NASDAQ: INVE
Slide 4: Q3 2023 Business Highlights
Q3 2023 Business Highlights Complete Security Platform • Highest GAAP and Non-GAAP Gross Margins and Non- GAAP Adjusted EBITDA since Q3 2021 • Premises Segment Updates • Record quarterly sales for Premises, growing 15% year-over-year to $13.6 million, double industry growth rate* Launched Enterphone
Slide 5: Q3 2023 Business Highlights (continued)
Q3 2023 Business Highlights (continued) Added high-volume production equipment at Thailand facility • Identity Segment Updates • Identity revenue was $18.3 million, with RFID units shipped up 18% year-over-year to 54 million units • Growing leadership in high-value, specialty complex RF-enabled IoT
Slide 6: Q3 2023 Summary
Q3 2023 Summary • Premises • Double the industry growth rate* • Product launches: Primis &EG2 (full launch), Enterphone + Mobile, Vision AI • Software, services & recurring revenues 20%+ of Premises revenues • Identity • Specialty, complex RF-enabled IoT (SCRI) solutions: 50 pilot programs • Low-mar
Slide 7: Q3 2023 Financial Overview
Q3 2023 Financial Overview
Slide 8: Financial Overview
Financial Overview Metric Q3’23 Q2’23 Q3’22 Revenue $31.8M $29.6M $31.0M GAAP Gross Margin 37.5% 36.7% 36.1% Non-GAAP Gross Margin 39.1% 38.2% 37.3% GAAP Operating Expenses $11.6M $11.9M $10.6M Non-GAAP Operating Expenses $10.3M $10.6M $9.5M GAAP Net Income (Loss) ($0.0M) ($1.1M) $0.5M EPS (GAAP) Di
Slide 9: Segment Revenue and Non-GAAP Gross Margin
Segment Revenue and Non-GAAP Gross Margin $31.8 $31.0 $29.1 $29.0 $29.6 $28.5 $27.9 $26.0 $25.1 $18.3 $19.2 $16.8 $17.7 $18.7 $17.5 $17.0 $14.7 $14.6 39% 38% 38% 39% 37% 37% 38% 37% 34% $12.2 $13.6 $10.4 $11.0 $10.5 $10.9 $11.8 $11.3 $11.9 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Note:
Slide 10: 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 $29.1 $29.0 $29.6 $28.5 $27.9 $26.0 $25.1 41% 37% 36% 36% 33% 32% 32% 31% 28% $1.4 $2.0 $1.7 $2.2 $0.2 -$0.9 $0.7 $3.2 -$0.7 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'
Slide 11: Q3 2023 Cash Flow and Balance Sheet (in $M)
Q3 2023 Cash Flow and Balance Sheet (in $M) Cash Position Assets Q3'22 Q2'23 Q3'23 Liabilities & Equity Q3'22 Q2'23 Q3'23 Cash Flow Q3'22 Q2'23 Q3'23 Cash & cash equivalents* 21.9 22.2 20.9 Accounts payable 15.1 12.8 12.1 From operations* (2.1) 1.4 (0.3) Accounts receivable 23.6 22.9 25.9 Financial
Slide 12: 2023 Business Drivers
2023 Business Drivers
Slide 13: 2023 Overall Strategy
2023 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 13 © 2023 Identiv, Inc. | All Rig
Slide 14: Q4 2023 IoT Business Drivers
Q4 2023 IoT Business Drivers • IoT Strategy • Winning NRE projects for technically complex applications • Reinforcing our leadership as a specialty SCRI applications provider, including our new R&D Lab expansion to support these complex applications • Leverage joint marketing and product initiatives
Slide 15: Q4 2023 Physical Security Business Drivers
Q4 2023 Physical Security Business Drivers • Physical Security Strategy • Tightly integrated end-to-end security platform combining identity provisioning, access control, video surveillance, and analytics- based intelligence, delivered in a single pane of glass • Growing our position in Federal phys
Slide 16: Summary
Summary Complete Security Platform • Premises • Product launches solidify unique industry strength • Driving existing customer base conversion to subscription model • Software, services & recurring revenues 20%+ of Premises revenues • Identity • Expanding pipeline of SCRI projects • Healthcare strat
Slide 17: Thank You Q&A Session
THANK YOU Q&A Session Visit identiv.com for more information today.
Slide 18: Appendix
Appendix
Slide 19: Income Statement
Income Statement (unaudited, in $’000) Identiv, Inc. Condensed Consolidated Statements of Operations (in thousands, except per share data) (unaudited) Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, September 30, 2023 2023 2022 2023 2022 Net revenue $ 31,846 $
Slide 20: Balance Sheet
Balance Sheet Identiv, Inc. (in $’000) Condensed Consolidated Balance Sheets (in thousands) (unaudited) September 30, June 30, March 31, December 31, 2023 2023 2023 2022 ASSETS Current assets: Cash and cash equivalents $ 19,674 $ 21,905 $ 20,804 $ 16,650 Restricted cash 1,254 300 363 487 Accounts re
Slide 21: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation (in $M) Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 2021 2021 2021 2022 2022 2022 2022 2022 2023 2023 2023 Reconciliation of GAAP gross margin to non-GAAP gross margin GAAP gross margin (%) 38% 33% 36% 36% 37% 36% 36% 36% 35% 37% 37% GAAP gross profit $11.1 $9.4 $37.1 $9.0 $10.2