Q1 2024 Identiv Inc Earnings Call Transcript
Key Points
- Identiv Inc (INVE) successfully divested assets related to security and logical reader products for $145 million, enhancing capital for IoT investment.
- Appointment of Kirsten Newquist as the new CEO for the IoT business, bringing extensive industry experience and leadership.
- Achieved highest non-GAAP gross margin since Q3 2020 at 40%, indicating strong margin performance.
- Software services and recurring revenues grew to 27% of premises revenues, reflecting a positive trend towards recurring business models.
- Identiv Inc (INVE) is on track to close the strategic transaction in Q3, which is expected to fortify the balance sheet and support growth in specialty IoT business.
- First-quarter 2024 revenue decreased by $3.5 million compared to Q1 2023, with declines in both premises and identity segments.
- The ongoing federal government continuing resolution impacted the premises segment's performance.
- GAAP net loss attributable to common shareholders increased to $4.8 million in Q1 2024 from $3 million in Q1 2023.
- The transition of RFID production to Thailand and exiting low-margin business are expected to impact revenue and margins into the first half of next year.
- Increased GAAP operating expenses as a percentage of revenue, primarily related to strategic review costs.
Good afternoon. Welcome to Identiv's presentation of its first-quarter 2024 earnings call. My name is Matthew, and I'll be your operator this afternoon.
Joining us for today's presentation are the company's CEO, Steven Humphreys; CFO, Justin Scarpulla; and President, IoT solutions, Kirsten Newquist. (Operator Instructions)
Before we begin, please note that during this call, management may be making references to non-GAAP financial measures or guidance, including non-GAAP adjusted EBITDA, non-GAAP gross margin, and non-GAAP operating expenses.
In addition, during the call, management will be making forward-looking statements. Any statement that refers to expectations, projections or other characteristics of future events, including the pending asset sale transaction, future business, and market conditions and opportunities, and future plans and prospects, including with respect to the transaction and Identiv's post-closing business, is a forward-looking statement. Actual results may differ materially from those expressed in the forward-looking statements. For more information,
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