Radio-frequency identification (RFID) hardware and software provider Impinj (NASDAQ: PI) announced its Q1 CY2024 financial results, delivering a positive surprise to investors. The company reported revenue of $76.83 million, surpassing analyst estimates of $73.58 million. While revenue declined by 10.6% year-over-year, Impinj’s strong performance exceeded expectations. Non-GAAP earnings per share (EPS) came in at $0.21, significantly beating analyst projections of $0.11.
Impinj’s revenue guidance for Q2 CY2024 further impressed analysts, with the midpoint of $97.5 million exceeding consensus estimates of $79.04 million. This indicates a projected revenue growth of approximately 23.4%. Impinj’s gross margin experienced a slight decline to 48.9% from 50.7% in the corresponding quarter last year.
The company reported an improvement in its inventory management, as inventory days outstanding (DIO) decreased to 203 from 240 in the previous quarter. Impinj’s free cash flow also saw a significant turnaround, moving from a negative $1.20 million in the prior quarter to a positive $53.94 million in Q1 CY2024, marking the first positive free cash flow quarter in over a year.
Impinj’s overall performance in Q1 CY2024 suggests a resilient business model and strong execution in a challenging economic environment. The company’s ability to beat revenue and EPS estimates, provide upbeat guidance, and improve its inventory management strengthens its position in the RFID industry. Investors looking for exposure to the growing RFID market may find Impinj’s stock attractive after its recent earnings report.
