NA NASDAQ: Q: INVE Mak aking th the P Physical cal W World D Digital tal & & S Secu cure Q1 2020 Earnings Presentation – May 7, 2020
Saf afe Har Harbor Note Regarding Forward-Looking Information This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those involving future events and future results that are based on current expectations as well as the current beliefs and assumptions of the Company's management and can be identified by words such as "anticipates", "believes", "plans", "will", "intends", "expects", and similar references to the future. Any statement that is not a historical fact, including the statements regarding the Company's expectations regarding future operating and financial performance, including 2020 guidance, trends, and its target business model; the impact of the Covid- 19 pandemic on the Company’s business, customers and supply chain; the Company’s beliefs regarding the benefits of its acquisitions; the Company’s beliefs regarding its ability to achieve its business and strategic objectives and the expected benefits thereof; the drivers of momentum in its business; the timing and size of customer orders and backlog levels; the Company’s beliefs regarding growth in 2020; and the Company’s beliefs regarding the benefits and attributes of its platform, and its status in the market and with customers is a forward-looking statement. Forward-looking statements are only predictions and are subject to a number of risks and uncertainties, many of which are outside our control, which could cause actual results to differ materially and adversely from those expressed in any forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, actual results for 2020 and beyond, the impact of the Covid-19 pandemic; the Company’s ability to continue the momentum in its business; the Company’s ability to successfully execute its business strategy; the actual benefits achieved through acquisitions; the level and timing of customer orders; the success of the Company’s products and partnerships; industry trends and seasonality; and factors discussed in its public reports, including its Annual Report on Form 10-K for the year ended December 31, 2019 and subsequent reports filed with the U.S. Securities and Exchange Commission. All forward-looking statements are based on information available to us on the date hereof, and we assume no obligation to update such statements. Non-GAAP Financial Measures (Unaudited) This presentation includes financial information that has not been prepared in accordance with GAAP, including non-GAAP adjusted EBITDA, non-GAAP gross margin, non-GAAP free cash flow, and non-GAAP operating expenses. Identiv uses non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. The non-GAAP measures discussed above exclude items that are included in GAAP net income (loss), GAAP operating expenses, GAAP gross margin, and net cash provided by (used in) operating activities, including provision (benefit) for income taxes, net income (loss) attributable to non- controlling interest, interest expense, foreign currency (gains) losses, stock-based compensation, amortization and depreciation, increase in fair value of earnout liability, acquisition related transaction costs, restructuring and severance, and capital expenditures. Non-GAAP operating expenses exclude stock based compensation, amortization and depreciation, acquisition related transaction costs and restructuring and severance. For historical periods, the exclusions are detailed in the reconciliation table included in this presentation. Non- GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of the non-GAAP measures to their most directly comparable GAAP financial measures as detailed in this presentation. NASDAQ: INVE 2
Agenda !" #$%&'&'%()*+),*- !!" .,/0/1,02%3*),*- !!!" &'&'%4+5-67%8+,)*+9:% (;6255<%=%>*?%@0<*0-0?9 NASDAQ: INVE 3
Q1 2020 Overview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
Q1 2 2020 Fi Financi cial R Review NASDAQ: INVE 5
Financial Overview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
Segment R t Revenue & & No Non-GAAP AAP G Gross M Mar argin Premises Identity $23.0 $22.2 $21.3 Non-GAAP Gross Margin $20.3 $20.0 $19.5 $19.0 $18.1 $10.1 $16.6 $16.5 $15.4 $11.5 $11.6 $14.8 $12.4 $10.7 $13.4 $10.2 $10.3 47% 49% $9.9 46% 45% $9.5 46% $9.0 44% $9.5 $9.1 43% 42% 42% 41% 40% 40% 43% $8.0 $12.9 $10.7 $9.4 $9.3 $8.9 $8.8 $8.6 $8.2 $7.5 $7.1 $5.8 $5.4 $5.9 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 NASDAQ: INVE 7 The Identity segment includes the segments formerly known as “Identity” and “Credentials”. *Please refer to a reconciliation of Non-GAAP gross margin to GAAP later in this presentation or in the Q1 2020 earnings release dated May 7, 2020. May include rounding differences.
Total tal R Revenue & & No Non-GAAP AAP A Adjusted EB EBITDA A Op Operati ating Exp Expenses Revenue Adj. EBITDA $23.0 Non-GAAP Operating Expenses % $22.2 $21.3 $20.3 $20.0 $19.5 $19.0 $18.1 $16.6 $16.5 $15.4 $14.8 $13.4 45% 43% 41% 40% 40% 40% 38% 35% 34% 36% 35% 35% 34% $3.1 $2.4 $3.0 $1.7 $1.3 $1.2 $0.9 $0.7 $0.3 $0.2 $0.2 $0.2 -$0.3 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 NASDAQ: INVE 8 The Identity segment includes the segments formerly known as “Identity” and “Credentials”. *Please refer to a reconciliation of Non-GAAP to GAAP later in this presentation or in the Q1 2020 earnings release dated May 7, 2020. May include rounding differences.
Q1 Q1 2 2020 C Cas ash F Flow an w and B Bal alan ance ce S Sheet ( t (in $ $M) Cash Position $19.1 $17.9 $16.7 $15.7 $14.2 $10.9 $11.1 $11.1 $9.4 $8.9 ($0.3) $8.7 ($0.5) $3.4 ($0.1) ($3.2) Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Net loss Changes in Investing Financing FX Effect Q1'20 excl. non- operating Activities activities cash items assets and liabilities Equity & Assets Q1’19 Q4’19 Q1’20 Liabilities Q1’19 Q4’19 Q1’20 Cash Flow Q1’19 Q4’19 Q1’20 Cash & cash Accounts 8.9 9.4 8.7 6.3 8.8 8.5 From operations 1.5 (0.9) (3.7) equivalents payable Accounts Financial 15.5 18.4 20.0 11.8 14.2 17.8 From investing (1.4) 0.0 (0.1) receivable liabilities Inventory 12.5 16.1 15.9 Other liabilities 18.6 15.8 14.1 From financing (2.0) (0.8) 3.4 Other assets 34.7 30.4 29.2 Total Equity 34.9 35.5 33.4 FX effect (0.1) 0.1 (0.3) Total 71.6 74.3 73.8 Total 71.6 74.3 73.8 Total (2.0) (1.6) (0.7) * May include rounding differences
Busi usiness D ss Dri rivers & s & O Out utlook NASDAQ: INVE 10
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