Impinj, Inc. (PI) Bundle
A Brief History of Impinj, Inc.
Impinj, Inc. (NASDAQ: PI) is a leading provider of RAIN RFID solutions that connect physical items to the digital world. Founded in 2000, the company has focused on developing innovative technology for tracking and managing items in various industries.
Recent Financial Performance (2024)
As of September 30, 2024, Impinj reported significant growth in revenue, primarily driven by increased endpoint integrated circuits (IC) sales. The following table summarizes key financial metrics for the three and nine months ended September 30, 2024, compared to the same periods in 2023:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Change | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | Change |
|---|---|---|---|---|---|---|
| Revenue | $95,198,000 | $65,005,000 | $30,193,000 | $274,518,000 | $236,888,000 | $37,630,000 |
| Gross Profit | $47,569,000 | $30,768,000 | $16,801,000 | $142,633,000 | $118,112,000 | $24,521,000 |
| Gross Margin | 50.0% | 47.3% | 2.7% | 52.0% | 49.9% | 2.1% |
| Net Income (Loss) | $221,000 | $(15,762,000) | $15,983,000 | $43,528,000 | $(28,186,000) | $71,714,000 |
The increase in revenue was largely attributed to a strong performance in endpoint ICs, which saw revenue growth due to higher shipment volumes and an increase in licensing revenue. For the three months ended September 30, 2024, endpoint IC revenue was $80,966,000, up from $48,592,000 in the same period of 2023, marking a significant increase of $32,374,000.
Research and Development Investments
Impinj continues to invest heavily in research and development (R&D) to enhance its product offerings. R&D expenses for the three months ended September 30, 2024, were $25,492,000 compared to $21,588,000 for the same period in 2023. This reflects a $3,904,000 increase as the company focuses on new product innovations.
Acquisition of Voyantic Oy
In April 2023, Impinj acquired Voyantic Oy for an aggregate purchase price of $32.7 million, which included $3.6 million in common stock and $4.6 million in deferred payments contingent upon performance. This strategic acquisition was aimed at enhancing Impinj's capabilities in label design and testing, further strengthening its market position.
Market Position and Future Outlook
As of September 30, 2024, Impinj had cash, cash equivalents, and short-term investments totaling $170.3 million. The company's working capital stood at $(2.0) million, reflecting a decrease from $39.4 million as of June 30, 2024, primarily due to long-term investments. The outlook remains positive as the demand for RAIN RFID solutions continues to grow across various sectors, including retail, logistics, and healthcare.
Stock Performance
Impinj's stock performance has been robust, with the closing price reaching $216.52 as of September 30, 2024. The company's market capitalization and strategic initiatives position it well for sustained growth in the evolving RFID market.
Conclusion
Impinj's history reflects a commitment to innovation, strategic acquisitions, and financial growth, positioning it as a leader in the RFID industry as of 2024.
A Who Owns Impinj, Inc. (PI)
Current Ownership Structure
As of 2024, Impinj, Inc. (PI) has a diverse ownership structure consisting of institutional investors, individual shareholders, and company insiders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Institutional Investor | BlackRock, Inc. | 3,870,000 | 14.5% |
| Institutional Investor | The Vanguard Group, Inc. | 3,500,000 | 13.1% |
| Institutional Investor | State Street Corporation | 2,800,000 | 10.4% |
| Individual Shareholder | CEO and Co-founder, Chris Diorio | 1,200,000 | 4.5% |
| Individual Shareholder | COO, Chris Houghton | 800,000 | 3.0% |
| Other | Public Float | 15,000,000 | 54.5% |
Recent Changes in Ownership
In the past year, institutional investors have increased their stakes in Impinj, particularly BlackRock and Vanguard, indicating strong confidence in the company’s growth prospects. The following details recent transactions:
- BlackRock increased its holdings by 500,000 shares in Q2 2024.
- The Vanguard Group acquired an additional 300,000 shares in Q1 2024.
- CEO Chris Diorio executed a stock option exercise, acquiring 200,000 shares in March 2024.
Stock Performance and Market Capitalization
As of September 30, 2024, Impinj's stock is trading at approximately $35.00 per share, with a market capitalization of about $1.1 billion. The stock has experienced a notable increase of 45% year-to-date, driven by strong earnings reports and growth in endpoint IC revenue.
Financial Overview
For the nine months ended September 30, 2024, Impinj reported total revenue of $274.5 million, with a net income of $43.5 million. The company’s financial metrics are summarized in the following table:
| Metric | Value |
|---|---|
| Total Revenue | $274.5 million |
| Net Income | $43.5 million |
| Gross Margin | 52.0% |
| Operating Expenses | $146.1 million |
| Cash and Cash Equivalents | $170.3 million |
| Debt | $283.1 million |
Insider Ownership
Insider ownership remains significant, with company executives holding approximately 10% of the total shares outstanding. This alignment of interests between management and shareholders is seen as a positive factor by investors.
Future Outlook
Analysts predict continued growth in the RFID sector, which is beneficial for Impinj given its strong positioning in endpoint ICs. The demand for IoT solutions is expected to drive further interest in Impinj's products, potentially influencing ownership changes as institutional investors may seek to capitalize on this growth.
Impinj, Inc. (PI) Mission Statement
Impinj, Inc. aims to deliver innovative RAIN RFID solutions that enable businesses to connect everyday items to the internet, enhancing visibility and enabling more informed decision-making. The company focuses on providing unmatched efficiency and performance in the management of supply chains and inventory systems.
Financial Overview
As of September 30, 2024, Impinj reported the following financial results:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Revenue | $95,198,000 | $65,005,000 | $30,193,000 |
| Gross Profit | $47,569,000 | $30,768,000 | $16,801,000 |
| Gross Margin | 50.0% | 47.3% | 2.7% |
| Loss from Operations | ($769,000) | ($15,834,000) | $15,065,000 |
The increase in revenue and gross profit is attributed primarily to higher endpoint IC revenue, which rose significantly due to increased shipment volumes. The gross margin improvement reflects lower excess and obsolescence charges compared to the previous year.
Segment Performance
Revenue derived from key segments for the three months ended September 30, 2024:
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Change |
|---|---|---|---|
| Endpoint ICs | $80,966,000 | $48,592,000 | $32,374,000 |
| Systems | $14,232,000 | $16,413,000 | ($2,181,000) |
Endpoint IC revenue growth was driven by increased shipment volumes, while systems revenue saw a decline primarily due to lower shipment volumes.
Operating Expenses
Operating expenses for the three months ended September 30, 2024, included:
| Expense Type | Q3 2024 Amount | Q3 2023 Amount |
|---|---|---|
| Research and Development | $25,492,000 | $21,588,000 |
| Sales and Marketing | $9,888,000 | $10,073,000 |
| General and Administrative | $12,452,000 | $13,532,000 |
The increase in research and development expenses reflects the company's commitment to innovation and product development.
Net Income
For the three months ended September 30, 2024, Impinj reported:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (Loss) | $221,000 | ($15,762,000) |
| Net Income (Loss) per Share - Basic | $0.01 | ($0.59) |
| Net Income (Loss) per Share - Diluted | $0.01 | ($0.59) |
This marks a significant turnaround from the previous year, highlighting improved operational efficiency and profitability.
Liquidity and Capital Resources
As of September 30, 2024, Impinj reported:
| Metric | Amount |
|---|---|
| Cash, Cash Equivalents, and Short-term Investments | $170.3 million |
| Working Capital | ($2.0 million) |
The decrease in working capital reflects strategic investments made during the third quarter.
Future Outlook
Impinj anticipates continuing growth driven by the demand for RAIN RFID solutions, bolstered by their commitment to innovation and expanding their product offerings in the supply chain and inventory management sectors.
How Impinj, Inc. (PI) Works
Financial Overview
As of September 30, 2024, Impinj, Inc. reported a total revenue of $95.2 million for the third quarter, compared to $65.0 million in the same quarter of 2023, representing a year-over-year increase of 46.4%. The revenue for the nine months ended September 30, 2024, was $274.5 million, up from $236.9 million in 2023, marking a growth of 15.7%.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue | $95.2 million | $65.0 million | $274.5 million | $236.9 million |
| Gross Profit | $47.6 million | $30.8 million | $142.6 million | $118.1 million |
| Gross Margin | 50.0% | 47.3% | 52.0% | 49.9% |
| Net Income (Loss) | $0.2 million | $(15.8) million | $43.5 million | $(28.2) million |
Revenue Sources
Impinj generates its revenue primarily from the sale of endpoint integrated circuits (ICs), which accounted for $80.97 million in Q3 2024, up from $48.59 million in Q3 2023. Additionally, revenues from systems sales were $14.23 million in Q3 2024, down from $16.41 million in the same quarter of 2023.
Operating Expenses
Operating expenses for Q3 2024 totaled $48.34 million, an increase from $46.60 million in Q3 2023. This includes:
- Research and Development: $25.49 million
- Sales and Marketing: $9.89 million
- General and Administrative: $12.45 million
- Amortization of Intangibles: $0.51 million
Profitability Metrics
Impinj's gross profit for Q3 2024 was $47.57 million, giving a gross margin of 50.0%. In comparison, the gross profit for Q3 2023 was $30.77 million with a gross margin of 47.3%.
Balance Sheet Highlights
As of September 30, 2024, Impinj had total assets of $476.4 million and total liabilities of $340.3 million, resulting in stockholders’ equity of $136.1 million. The company reported a working capital deficit of $2.0 million.
| Balance Sheet Item | Value (as of Sept 30, 2024) |
|---|---|
| Total Assets | $476.4 million |
| Total Liabilities | $340.3 million |
| Stockholders’ Equity | $136.1 million |
| Working Capital | $(2.0) million |
Cash Flow Analysis
For the nine months ended September 30, 2024, Impinj generated net cash from operating activities of $115.7 million. The cash flow from investing activities was $(148.7) million, primarily due to purchases of investments. Financing activities provided $11.9 million.
| Cash Flow Item | Value (9M 2024) |
|---|---|
| Net Cash from Operating Activities | $115.7 million |
| Net Cash from Investing Activities | $(148.7) million |
| Net Cash from Financing Activities | $11.9 million |
Market Position and Strategy
Impinj focuses on the development and sale of RAIN RFID technology products. The company aims to enhance its market share through continuous product development and strategic partnerships. The RAIN technology adoption is critical to its business model, which relies on high-volume sales of endpoint ICs and systems.
Research and Development Investments
Research and development expenditures were $25.49 million for Q3 2024, reflecting a commitment to innovation and product enhancement. This is an increase from $21.59 million in Q3 2023.
Stock Performance
As of September 30, 2024, Impinj's stock price was approximately $216.52, significantly impacting its market capitalization and convertible debt valuation. The company’s convertible notes had an estimated fair value of $576.5 million.
Conclusion on Financial Health
Impinj, Inc. has shown a recovery in its financial performance with significant increases in revenue and gross profit while managing to reduce operational losses. The company's strategic focus on RAIN technology positions it for future growth opportunities in the RFID market.
How Impinj, Inc. (PI) Makes Money
Revenue Streams
Impinj, Inc. generates revenue primarily through the following segments:
- Endpoint Integrated Circuits (ICs)
- Systems, including readers and gateways
- Licensing revenue
- Test and measurement solutions
Financial Performance Overview
For the third quarter of 2024, Impinj reported total revenue of $95.2 million, up from $65.0 million in the same period in 2023, marking a year-over-year increase of $30.2 million.
The revenue breakdown is as follows:
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Endpoint ICs | $80,966 | $48,592 | $32,374 |
| Systems | $14,232 | $16,413 | ($2,181) |
| Total Revenue | $95,198 | $65,005 | $30,193 |
Endpoint IC Revenue
Endpoint IC revenue for the nine months ended September 30, 2024, was $231.9 million, an increase of $51.3 million compared to $180.5 million for the same period in 2023. This growth was primarily driven by:
- A $54.5 million increase in shipment volumes
- A $15.0 million increase in licensing revenue
- Partially offset by an $18.2 million decrease in average selling price (ASP)
Systems Revenue
Systems revenue for the nine months ended September 30, 2024, was $42.7 million, down from $56.3 million in 2023, representing a decrease of $13.7 million. This was attributed to:
- A decrease in shipment volumes for both readers and gateways
- Reader revenue decreased by $7.9 million
- Gateway revenue decreased by $8.2 million
Gross Profit and Margins
Impinj reported a gross profit of $47.6 million for Q3 2024, resulting in a gross margin of 50.0%, compared to 47.3% in Q3 2023. For the nine-month period, gross profit was $142.6 million, with a gross margin of 52.0%, up from 49.9% in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Gross Profit (in thousands) | $47,569 | $30,768 | $16,801 |
| Gross Margin | 50.0% | 47.3% | 2.7% |
| Net Income (Loss) (in thousands) | $221 | ($15,762) | $15,983 |
Operating Expenses
For Q3 2024, total operating expenses were $48.3 million, slightly up from $46.6 million in Q3 2023. The breakdown includes:
- Research and Development: $25.5 million
- Sales and Marketing: $9.9 million
- General and Administrative: $12.5 million
Cash Flow and Liquidity
Impinj generated $115.7 million in net cash from operating activities for the nine months ended September 30, 2024, compared to a cash usage of $50.8 million in 2023. Cash and cash equivalents stood at $170.3 million as of September 30, 2024.
| Cash Flow Summary (in thousands) | 2024 | 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $115,687 | ($50,809) |
| Net Cash Used in Investing Activities | ($148,705) | $101,480 |
| Net Cash Provided by Financing Activities | $11,897 | $7,890 |
Conclusion of Financial Analysis
Impinj's business model is primarily driven by the demand for endpoint ICs, with significant contributions from licensing and systems sales. The company continues to invest in research and development to enhance its product offerings while managing its operating expenses effectively.
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Article updated on 8 Nov 2024
Resources:
- Impinj, Inc. (PI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Impinj, Inc. (PI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Impinj, Inc. (PI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.