IMPINJ Reports Record Fourth Quarter Earnings for 2022

Earnings Overview

IMPINJ ($NASDAQ:PI) reported on December 31, 2022 their earnings results for the fourth quarter of fiscal year 2022. Compared to the same period in the previous year, total revenue had climbed to USD -0.1 million, a 99.4% increase, and net income had increased 45.7% to USD 76.6 million.

Transcripts Simplified

Impinj had a great year in 2022, with four consecutive record-revenue quarters and record adjusted EBITDA margin and backlog. Fourth-quarter revenue was up 46% year-over-year, and endpoint IC revenue was up 53%. Systems revenue exceeded expectations, due to a contract manufacturer delivering more readers than anticipated. Full-year revenue was up 35% year-over-year.

Fourth-quarter gross margin was down slightly from the previous quarter but up year-over-year. Operating expenses were up year-over-year, driven by higher R&D and Sales & Marketing expenses.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Impinj. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Impinj. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Impinj. More…

Key Ratios Snapshot

Some of the financial key ratios for Impinj are shown below. More…

Stock Price

Despite the minor drop, the stock opened at 128.7 and closed at 125.1, showing strong financial performance. The earnings report highlighted the robust performance which was driven by strong end-market demand and favorable pricing dynamics. The company also reported higher gross margins and lower operating expenses, which contributed to a strong fourth quarter performance.

Additionally, the company announced a solid outlook for the coming year and stated that it expects to continue to drive growth in its core markets. This optimistic outlook bodes well for shareholders as it shows that IMPINJ‘s strategy is working and that the company is well-positioned for future success. Live Quote…

Analysis

At GoodWhale, we have conducted an analysis of IMPINJ‘s financials and have concluded that it is a high risk investment in terms of financial and business aspects. We have identified five major risk warnings in IMPINJ’s income sheet, balance sheet, cashflow statement, non-financial and financial journal. In this analysis, we looked at the income statement to see if there were any discrepancies in the form of unusual revenues or expenses or changes in the accounting treatment of income or expenses. We also examined the balance sheet to identify any irregularities or misstatements in the form of undervalued assets or overstated liabilities. Lastly, we assessed the cash flow statement for any discrepancies in terms of cash inflows and outflows. In addition to our analysis of these financial documents, we also took into consideration non-financial issues such as litigation, customer disputes, and regulatory compliance. We also looked at financial journals to identify any issues such as mergers and acquisitions, restructuring, or changes in management. By analyzing these documents and factors, we have concluded that IMPINJ is a high risk investment due to the various risk warnings we have identified. For more information on these risk warnings, feel free to register with us and check out our detailed report. More…

Peers

Its product portfolio includes RFID readers, antennas, tags, and other related hardware and software products. The company’s solutions are used in a wide variety of applications, including inventory management, supply chain management, asset tracking, and access control. Impinj also offers a wide range of services, including consulting, support, and education. The company’s products compete against those offered by Ceragon Networks Ltd, u-Blox Holding AG, and Redline Communications Group Inc.

– Ceragon Networks Ltd ($NASDAQ:CRNT)

Ceragon Networks Ltd is a global provider of high-capacity broadband wireless solutions. Its solutions enable mobile operators, fixed-line service providers, private network operators and enterprises to deliver voice, data and multimedia services. Ceragon Networks Ltd has a market cap of 158.42M as of 2022 and a Return on Equity of -0.74%. The company’s solutions are based on its proprietary Ultra High Capacity technology, which delivers high-capacity, high-availability and low-latency connectivity.

– u-Blox Holding AG ($LTS:0QNI)

u-Blox Holding AG is a Swiss technology company that specializes in positioning and wireless communication technologies for the automotive, industrial, and consumer markets. The company has a market capitalization of 781.27 million as of 2022 and a return on equity of 13.55%. u-Blox Holding AG develops and markets global navigation satellite system (GNSS) positioning products and services for automotive, industrial, and consumer applications. The company’s products include GNSS chips and modules, GNSS software, GNSS reference receivers, GNSS antenna solutions, GNSS evaluation kits, and GNSS simulators. u-Blox Holding AG also provides cellular communication products, such as cellular modules, cellular gateways, and cellular IoT products.

Summary

IMPINJ, a technology company, recently released their fourth quarter earnings results for fiscal year 2022. Revenue increased by 99.4% year-on-year to -$0.1 million, while net income rose 45.7% to $76.6 million. Despite the strong earnings results, the stock price fell on the same day.

For investors looking to evaluate IMPINJ’s performance, the company showed impressive growth in both revenue and net income, though the stock price movement suggests the market may be expecting more from the company. Investors should research further to determine if IMPINJ is a good long-term investment opportunity.