NASDAQ$INVE

Identiv Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Identiv reported a decrease in revenue and a net loss for the second quarter of 2020.

Identiv's Q2 2020 results showed a 14% decrease in revenue compared to Q2 2019, with a net loss of $2.7 million. However, there was sequential growth in the Identity segment and overall revenue. The company is on track to return to positive cash flow from operations by the end of the year.

  • Revenue for the second quarter of 2020 was $19.1 million, a 14% decrease from the second quarter of 2019.
  • GAAP gross margin was 40.4%, a decrease from 44.4% in the second quarter of 2019.
  • GAAP net loss was $2.7 million, compared to net income of $0.4 million in the second quarter of 2019.
  • Non-GAAP adjusted EBITDA was $0.4 million, compared to $2.4 million in the second quarter of 2019.

Headline financials

Total Revenue

$19.1M

Previous: $22.2M-14.1%
EPS (adj)

-$0.10

Previous: $0.01-1100.0%
GAAP Operating Expenses

$10M

No prior period
Non-GAAP Adjusted EBITDA Loss

$400K

Previous: $2.4M-83.3%
Gross Margin

40.4%

No prior period
Free Cash Flow

-$2.75M

Previous: $416K-760.8%
Net Income

-$2.75M

Previous: $416K-760.8%
Operating Income

-$2.25M

Previous: $807K-379.2%
Gross Profit

$7.71M

Previous: $9.88M-22.0%
Cash & Equivalents

$13.1M

Previous: $11.1M+18.0%
Total Assets

$78.5M

Previous: $75.9M+3.5%
Stock-Based Comp

$751K

Previous: $693K+8.4%

Revenue & EPS history

Identiv · Revenue · Quarterly

$19.1M

Q2 2020-14.1%vs Q2 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

Identiv forecasts full year 2020 revenue to range between $86 million to $90 million. Gross margin percentages in the second half of 2020 are anticipated to be consistent with the gross margin the Company reported for the second quarter of 2020. Management intends to adjust operating expenses and expects to provide a more comprehensive update when visibility improves.

Tailwinds

  • Potential for improved results in the second half of 2020.
  • Strong secular growth in RFID.
  • Work-from-home going into a second wave of demand.
  • Products launched to take advantage of return-to-work needs.
  • Current backlog combined with the historical trend of government fiscal year-end spending

Headwinds

  • Economic uncertainty.
  • Potential downward pressure on gross margins due to mix shift with higher growth rates projected in its lower margin Identity segment.
  • Current trends and uncertainties related to COVID-19.
  • Lower sales of access control and video hardware in the Premises segment.
  • Inability of commercial dealers to access customer sites and delays in purchases from retail and hospitality customers due to COVID-19.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.5%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+3.3%

Avg return

30 days after

55%

26 / 47 earnings

Positive

+36.0%

Q1 2020

Best reaction

-28.3%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-18.2%-18.6%
Q4 2025+6.4%+1.5%+11.5%
Q3 2025-1.1%-2.1%-8.9%
Q2 2025-0.6%+2.8%+6.1%
Q1 2025+0.0%-0.6%+2.2%
Q4 2024-6.6%-0.6%-13.8%
Q3 2024+7.6%+2.7%+6.8%
Q2 2024-14.7%-10.8%-10.8%
Q1 2024-11.2%-14.7%-18.1%
Q4 2023-12.5%-13.6%-40.1%
Q3 2023-17.2%-12.6%+16.4%
Q2 2023+13.8%+18.4%+10.8%
Q1 2023+20.6%+26.4%+33.6%
Q4 2022+1.0%+2.0%-12.4%
Q3 2022-28.3%-26.9%-32.4%
Q2 2022+12.6%+14.7%+4.4%
Q1 2022-0.1%-4.8%+6.5%
Q4 2021-25.8%-26.3%-23.8%
Q3 2021+14.4%+26.4%+15.8%
Q2 2021+3.1%+13.9%+14.1%
Q1 2021+2.5%-2.4%+2.4%
Q4 2020-2.5%+1.4%+2.9%
Q3 2020+9.3%+0.3%+16.7%
Q2 2020-4.2%-2.9%+2.3%
Q1 2020+36.0%+25.5%+75.2%
Q4 2019-16.8%-32.3%-21.9%
Q3 2019+0.4%+0.2%+0.6%
Q2 2019+14.1%+7.9%+3.3%
Q1 2019+1.3%-6.4%-9.3%
Q4 2018-6.6%-12.5%-14.2%
Q3 2018+7.0%+1.7%-18.7%
Q2 2018+17.5%+16.2%+24.2%
Q1 2018+12.6%+8.8%+26.0%
Q4 2017+2.1%-1.9%-10.6%
Q3 2017+0.7%+3.0%+0.0%
Q2 2017-1.6%+0.0%-3.8%
Q1 2017+4.7%-8.8%-5.9%
Q4 2016+3.0%+9.3%+35.5%
Q3 2016+16.3%+32.7%+49.5%
Q2 2016+9.6%+16.5%+5.3%
Q1 2016-17.4%
Q4 2015-3.2%
Q2 2015+15.4%
Q1 2015-18.8%
Q4 2014-6.5%
Q1 2014+3.7%
Q2 2010+3.6%

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