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Identiv Reports Fourth Quarter and Fiscal Year 2024 Financial Results

1. Identiv's revenue fell significantly in 2024 at $26.6 million. 2. Net loss from continuing operations increased to $25.9 million in 2024. 3. Strategic focus on IoT solutions and new partnerships for growth. 4. Guidance for Q1 2025 suggests revenue of $4.8-$5.1 million. 5. GAAP gross margin considerably decreased, indicating operational challenges.

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FAQ

Why Bearish?

Declining revenue and increasing losses indicate significant operational challenges. Historically, companies with declining revenue report bearish trends in their stock prices.

How important is it?

The financial results and strategic direction directly impact stock price. The immediate drop in revenue and rising losses signal a potential downturn in investor confidence.

Why Short Term?

Immediate financial performance concerns may influence investor sentiment quickly. For instance, a consistent decline in revenue directly affects market perception and valuation in the near term.

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Perform-Accelerate-Transform Strategy Implementation Underway with Strengthened Commercial Team , /PRNewswire/ -- Identiv, Inc. (NASDAQ: INVE), a global leader in RFID-enabled Internet of Things (IoT) solutions, today released its financial results for the fourth quarter and fiscal year ended December 31, 2024. "The fourth quarter of 2024 marks the beginning of Identiv's evolution into a pure play IoT solutions company," said Identiv CEO Kirsten Newquist. "With our Perform-Accelerate-Transform strategic framework in place, we are focused on driving future growth. We are strengthening our team, adding new strategic partnerships, keeping our new product development pipeline robust, and making steady progress in the Thailand production transition. We are confident that Identiv's capabilities and focused approach will enable us to capitalize on emerging growth opportunities and deliver meaningful returns to our shareholders." Financial Results for Fiscal Year 2024Revenue for fiscal year 2024 was $26.6 million compared to $43.4 million in fiscal year 2023. Fiscal year 2024 GAAP gross margin was 1.3% and non-GAAP gross margin was 8.0%, compared to fiscal year 2023 GAAP gross margin of 13.8% and non-GAAP gross margin of 16.6%. GAAP operating expenses, including research and development, selling and marketing, general and administrative, and restructuring and severance, were $28.3 million in fiscal year 2024, compared to $19.5 million in fiscal year 2023. Non-GAAP operating expenses were $17.9 million in fiscal year 2024, compared to $16.7 million in the fiscal year 2023. Fiscal year 2024 GAAP operating expenses included $6.2 million in strategic transaction-related costs and $3.5 million in stock-based compensation. Fiscal year 2024 GAAP net loss from continuing operations was ($25.9) million, or ($1.14) per basic and diluted share, compared to GAAP net loss from continuing operations of ($13.9) million, or ($0.66) per basic and diluted share, in fiscal year 2023. Non-GAAP adjusted EBITDA loss in fiscal year 2024 was ($15.8) million, compared to ($9.5) million in fiscal year 2023.  Financial Results for Fiscal Fourth Quarter 2024Revenue for the fourth quarter of 2024 was $6.7 million, compared to $11.3 million in the fourth quarter of 2023. Fourth quarter 2024 GAAP gross margin was (14.9%) and non-GAAP gross margin was (5.2%), compared to fourth quarter 2023 GAAP gross margin of 16.2% and non-GAAP gross margin of 19.5%.  GAAP operating expenses, including research and development, selling and marketing, general and administrative, and restructuring and severance, were $5.6 million in the fourth quarter of 2024, compared to $5.2 million in the fourth quarter of 2023. Non-GAAP operating expenses were $4.1 million in the fourth quarter of 2024, compared to $4.1 million in the fourth quarter of 2023. Fourth quarter 2024 GAAP net loss from continuing operations was ($4.3) million, or ($0.19) per basic and diluted share, compared to GAAP net loss from continuing operations of ($3.3) million, or ($0.16) per basic and diluted share, in the fourth quarter of 2023. Non-GAAP adjusted EBITDA loss in the fourth quarter of 2024 was ($4.5) million, compared to ($1.9) million in the fourth quarter of 2023.  Financial OutlookIdentiv provides guidance based on current market conditions and expectations, including macroeconomic conditions and customer demand. For fiscal Q1 2025, management currently expects net revenue to be in the range of $4.8 million to $5.1 million.  Conference CallIdentiv management will hold a conference call today, March 5, 2025, at 5:00 p.m. EST (2:00 p.m. PST) to discuss the company's fourth quarter and fiscal year 2024 financial results. A question-and-answer session will follow management's presentation. Toll-Free: 888-506-0062International Number: +1 973-528-0011Call ID: 652910Webcast link: Register and Join The teleconference replay will be available through March 19, 2025, by dialing +1 877-481-4010 (Toll-Free Replay Number) or +1 919-882-2331 (International Replay Number) and entering passcode 51938. If you have any difficulty connecting with the teleconference, please contact Identiv Investor Relations at [email protected]. About IdentivIdentiv's full-circle RFID-enabled IoT solutions create digital identities for physical objects, enhancing global connectivity for businesses, people, and the planet. Its solutions, integrated into over 1.5 billion applications worldwide, drive innovation across healthcare, consumer electronics, luxury goods, smart packaging, and more. For additional information, visit identiv.com. Non-GAAP Financial MeasuresThis press release includes financial information that has not been prepared in accordance with accounting principles generally accepted in the United States (GAAP), including non-GAAP adjusted EBITDA, non-GAAP gross margin and non-GAAP operating expenses. Identiv uses non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating ongoing operational performance. Identiv believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. Non-GAAP gross margin excludes stock-based compensation and amortization and depreciation. Non-GAAP adjusted EBITDA excludes items that are included in GAAP net income (loss), GAAP operating expenses, and GAAP gross margin, and excludes income tax provision (benefit), net interest income (expense), net foreign currency gains (losses), stock-based compensation, amortization and depreciation, restructuring and severance, gain on investment and strategic review-related costs. Non-GAAP operating expenses exclude stock-based compensation, amortization and depreciation, strategic review-related costs, and restructuring and severance. The exclusions are detailed in the reconciliation table included in this press release. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures as detailed in this press release. Note Regarding Forward-Looking InformationThis press release 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 expectations as well as the current beliefs and assumptions of management of Identiv and can be identified by words such as "anticipate," "believe," "continue," "plan," "will," "intend," "expect," "outlook," and similar references to the future. Any statement that is not a historical fact is a forward-looking statement, including statements regarding: Identiv's expectations regarding future operating and financial outlook and performance, including 2025 first quarter guidance and outlook; Identiv's strategy, opportunities, focus and goals; Identiv's beliefs that its capabilities and focused approach will enable it to capitalize on emerging growth opportunities and deliver meaningful returns to shareholders; and Identiv's expectations regarding its team, new strategic partnerships, new product development pipeline and Thailand production transition. Forward-looking statements are only predictions and are subject to a number of risks and uncertainties, many of which are outside Identiv's control, which could cause actual results to differ materially and adversely from those expressed in any forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: Identiv's ability to continue the momentum in its business; Identiv's ability to successfully execute its business strategy, including, but not limited to, its capital allocation plan and organic and inorganic growth; changes in uses of capital; Identiv's ability to capitalize on trends in its business; the effect of the change in management following the completion of the asset sale transaction; Identiv's ability to satisfy customer demand and expectations; the level and timing of customer orders and changes/cancellations; the loss of customers, suppliers or partners; the success of Identiv's products and strategic partnerships; changes in Identiv's strategies and capital allocation framework; industry trends and seasonality; the impact of macroeconomic conditions and customer demand, inflation and increases in prices; and the other factors discussed in its periodic reports, including its Annual Report on Form 10-K for the year ended December 31, 2023, Quarterly Report on Form 10-Q for the quarter ended September 30, 2024  and subsequent reports filed with the Securities and Exchange Commission. All forward-looking statements are based on information available to Identiv on the date hereof, and Identiv assumes no obligation to update such statements. Investor Relations Contact:[email protected] Media Contact:[email protected] Identiv, Inc.Condensed Consolidated Statements of Operations(in thousands, except per share data)(unaudited) Three Months Ended  Year Ended  December 31, December 31, December 31, December 31, 2024 2023 2024 2023 Net revenue $                  6,697 $             11,348 $             26,628 $             43,445 Cost of revenue   7,692 9,507 26,288 37,435 Gross profit  (995) 1,841 340 6,010 Operating expenses: Research and development  922 1,249 3,887 4,399 Selling and marketing  1,073 1,102 5,727 5,627 General and administrative  3,095 2,755 18,147 9,332 Restructuring and severance 540 111 540 157           Total operating expenses  5,630 5,217 28,301 19,515 Loss from continuing operations  (6,625) (3,376) (27,961) (13,505) Non-operating income (expense): Interest income (expense), net  1,344 (76) 1,352 (427) Gain on investment — — — 132 Foreign currency gains (losses), net  733 177 788 (10) Loss from continuing operations before income tax provision (4,548) (3,275) (25,821) (13,810) Income tax (provision) benefit 271 (50) (90) (65) Net loss from continuing operations (4,277) (3,325) (25,911) (13,875) Income from discontinued operations, net of tax: Income (loss) from Physical Security Business, net of tax — 1,721 (2,737) 8,386 Gain on sale of Physical Security Business, net of tax 1,795 — 101,341 — Total income from discontinued operations, net of tax 1,795 1,721 98,604 8,386 Net income (loss) (2,482) (1,604) 72,693 (5,489) Cumulative dividends on Series B convertible preferred stock (201) (319) (883) (1,266) Net income (loss) available to common stockholders $                (2,683) $             (1,923) $             71,810 $             (6,755) Net income (loss) per common share: Basic and diluted - continuing operations $                  (0.19) $               (0.16) $               (1.14) $               (0.66) Basic and diluted - discontinued operations $                    0.08 $                 0.07 $                 4.18 $                 0.36 Basic and diluted - net income (loss) $                  (0.11) $               (0.08) $                 3.05 $               (0.29) Weighted average common shares outstanding:  Basic and diluted 23,833 23,248 23,581 23,068 Identiv, Inc.  Condensed Consolidated Balance Sheets (in thousands) (unaudited) December 31, September 30, December 31, 2024 2024 2023 ASSETS Current assets: Cash and cash equivalents $               135,646 $               145,361 $                 23,312 Restricted cash 300 384 1,072 Accounts receivable, net of allowances 4,214 4,848 7,174 Inventories 7,475 10,710 12,649 Prepaid expenses and other current assets 2,936 4,700 2,170 Current assets held-for-sale — — 33,109 Total current assets 150,571 166,003 79,486 Property and equipment, net 7,694 8,203 8,472 Operating lease right-of-use assets 2,000 2,110 2,289 Other assets 686 713 678 Non-current assets held-for-sale — — 18,798 Total assets $               160,951 $               177,029 $               109,723 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $                   2,746 $                   6,035 $                   5,445 Financial liabilities — — 9,949 Operating lease liabilities 852 880 782 Accrued compensation and related benefits 862 1,321 1,376 Accrued income taxes payable 1,173 7,180 104 Other accrued expenses and liabilities 2,179 3,595 917 Current liabilities held-for-sale — — 12,209 Total current liabilities 7,812 19,011 30,782 Long-term operating lease liabilities 1,167 1,251 1,507 Other long-term liabilities 29 27 26 Non-current liabilities held-for-sale — — 3,136 Total liabilities 9,008 20,289 35,451 Total stockholders' equity 151,943 156,740 74,272 Total liabilities and stockholders' equity $               160,951 $               177,029 $               109,723 Identiv, Inc.  Reconciliation of GAAP to Non-GAAP Financial Information - Continuing Operations (in thousands) (unaudited) Three Months Ended  Year Ended December 31, December 31, December 31, December 31, 2024 2023 2024 2023 Reconciliation of GAAP gross margin to non-GAAP gross margin  GAAP gross profit $                  (995) $                1,841 $                    340 $                6,010 Reconciling items included in GAAP gross profit: Stock-based compensation 3 8 20 35 Amortization and depreciation 643 361 1,773 1,184 Total reconciling items included in GAAP gross profit 646 369 1,793 1,219 Non-GAAP gross profit $                  (349) $                2,210 $                 2,133 $                7,229 Non-GAAP gross margin  -5 % 19 % 8 % 17 % Reconciliation of GAAP operating expenses to non-GAAP operating expenses GAAP operating expenses $                 5,630 $                5,217 $               28,301 $              19,515 Reconciling items included in GAAP operating expenses: Stock-based compensation (873) (555) (3,456) (2,033) Amortization and depreciation  (52) (37) (206) (169) Strategic transaction-related costs (55) (435) (6,175) (435) Restructuring and severance (540) (111) (540) (157) Total reconciling items included in GAAP operating expenses (1,520) (1,138) (10,377) (2,794) Non-GAAP operating expenses $                 4,110 $                4,079 $               17,924 $              16,721 Reconciliation of GAAP net loss from continuing operations to non-GAAP adjusted EBITDA GAAP net loss from continuing operations $               (4,277) $              (3,325) $             (25,911) $            (13,875) Reconciling items included in GAAP net loss:  Income tax provision (benefit) (271) 50 90 65 Interest income (expense), net (1,344) 76 (1,352) 427 Foreign currency gains (losses), net  (733) (177) (788) 10 Stock-based compensation 876 563 3,476 2,068 Amortization and depreciation  695 398 1,979 1,353 Strategic transaction-related costs 55 435 6,175 435 Gain on investment — — — (132) Restructuring and severance 540 111 540 157  Total reconciling items included in GAAP net loss from continuing operations (182) 1,456 10,120 4,383  Non-GAAP adjusted EBITDA $               (4,459) $              (1,869) $             (15,791) $              (9,492) SOURCE Identiv WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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