Identiv Reports 3Q 2023 Business Results

Identiv, Inc. reported its financial results for the third quarter ended Sept. 30, 2023.

Third quarter revenue was $31.8 million, up 3% year-over-year, record quarterly revenues. Q3 2023 GAAP gross margin grew to 37.5%, up 140bps year-over-year; non-GAAP gross margin grew to 39.1%, up 178bps year-over-year. Non-GAAP adjusted EBITDA was $2.2 million, up 6% year-over-year, highest level in eight quarters.

Identiv reported record quarterly sales for Premises, growing 15% year-over-year to $13.6 million. Federal billings increased 16% year-over-year; sales to Premises commercial customers grew 14% year-over-year. Sales of video software doubled year-over-year, bringing software, services, and recurring revenues to over 20% of Premises segment revenues in Q3 2023.

RFID units shipped grew 18% year-over-year to 54 million units. Healthcare-focused IoT applications now account for more than half of NFC-based revenue. Identiv expanded manufacturing capacity at RFID production facility near Bangkok, Thailand, enhancing its cost-competitiveness and supporting gross margin expansion. The compmay also continued production of Wiliot IoT Pixels orders, supporting ongoing development of BLE-enabled RFID category.

“We delivered record quarterly topline revenue in the third quarter, with particular strength in our Premises segment.  We fell short of our revenue expectations due to order push-outs among mostly low-margin RFID products.  We continued our focus on disciplined growth, reflected in the highest gross margins and non-GAAP adjusted EBITDA in eight quarters,” said Identiv CEO Steven Humphreys. 

“Our high-margin Premises segment grew at more than double the industry’s growth rate, with sales to Federal customers up 16% year-over-year and to commercial customers up 14% year-over-year.  RFID shipments increased 18% year-over-year to 54 million units, although as early-stage IoT applications progress through pilots toward full-scale production, demand may fluctuate quarter-to-quarter.”

“Delivering disciplined growth remains a top priority for Identiv,” Identiv CFO Justin Scarpulla added. “We expanded our gross margins and adjusted EBITDA despite lower-than-anticipated third quarter net revenue.  We continued to strengthen our balance sheet and improve our working capital position as we worked through our strategic inventory balance.  Furthermore, we expect to capitalize on the multiple advantages of producing IoT devices in Thailand as that facility’s manufacturing capacity ramps up to full utilization.”