On July 24, 2024, Impinj Inc (NASDAQ: PI), a leading RAIN RFID provider and Internet of Things pioneer, released its 8-K filing detailing its financial results for the second quarter ended June 30, 2024. The company reported impressive results, surpassing analyst estimates and setting new records in revenue and adjusted EBITDA.
Company Overview
Impinj Inc operates a platform that enables wireless connectivity to everyday items by delivering each item's identity, location, and authenticity to business and consumer applications. Its platform includes endpoint integrated circuits (ICs) product, a miniature radios-on-a-chip, which attach to and identify their host items; and connectivity layer that comprises readers, gateways, and reader ICs to wirelessly identify, locate, authenticate, and engage endpoints via RAIN, as well as provide power to and communicate bidirectionally with endpoint ICs. Geographically, the company has a business presence in the Americas, Asia Pacific, Europe, Middle East and Africa, of which key revenue is derived from the operations in the Asia Pacific region.
Q2 2024 Financial Highlights
Impinj Inc reported revenue of $102.5 million, significantly exceeding the analyst estimate of $97.52 million. The company also reported a GAAP net income of $10.0 million, or $0.34 per diluted share, surpassing the estimated earnings per share of $0.15. Non-GAAP net income was $25.3 million, or $0.83 per diluted share.
| Metric | Q2 2024 | Analyst Estimate |
|---|---|---|
| Revenue | $102.5 million | $97.52 million |
| GAAP Net Income | $10.0 million | $0.15 per diluted share |
| Non-GAAP Net Income | $25.3 million | $0.83 per diluted share |
Financial Achievements and Metrics
Impinj Inc achieved a GAAP gross margin of 56.1% and a non-GAAP gross margin of 58.2%. Adjusted EBITDA for the quarter was $26.8 million, reflecting the company's strong operational performance. Free cash flow topped $40 million, highlighting the company's robust cash generation capabilities.
"Our second-quarter results were strong, setting several new records," said Chris Diorio, Impinj co-founder and CEO. "Revenue topped $100 million and adjusted EBITDA topped $25 million, both well above our guidance. Free cash flow topped $40 million. As we continue driving our bold vision to connect every item in our everyday world, I remain confident in our market position and energized by the opportunities ahead."
Income Statement and Balance Sheet Overview
Impinj Inc's income statement showed a significant increase in revenue to $102.5 million from $85.986 million in the same quarter last year. The company also reported a substantial improvement in net income, turning from a loss of $8.066 million in Q2 2023 to a profit of $10.0 million in Q2 2024.
On the balance sheet, total assets increased to $446.087 million from $359.409 million at the end of 2023. The company reported a significant increase in cash and cash equivalents to $214.653 million from $94.793 million, reflecting strong cash flow generation and prudent financial management.
Cash Flow Statement
Impinj Inc's cash flow statement revealed net cash provided by operating activities of $105.619 million for the first six months of 2024, a significant improvement from a net cash outflow of $49.104 million in the same period last year. The company also reported free cash flow of $98.051 million, underscoring its strong cash generation capabilities.
Third Quarter 2024 Financial Outlook
For the third quarter of 2024, Impinj Inc provided guidance with expected revenue between $91.0 million and $94.0 million. The company anticipates a GAAP net loss between $3.5 million and $2.0 million, with adjusted EBITDA income ranging from $13.8 million to $15.3 million. Non-GAAP net income is expected to be between $13.5 million and $15.0 million, or $0.46 to $0.50 per diluted share.
Impinj Inc's strong Q2 2024 performance and positive outlook for Q3 2024 highlight the company's robust market position and growth potential. Investors and stakeholders can access the detailed financial results and outlook in the company's 8-K filing.
Explore the complete 8-K earnings release (here) from Impinj Inc for further details.
