Identiv, Inc. (NASDAQ:INVE) Q2 2022 Earnings Conference Call August 3, 2022 5:00 PM ET
Company Participants
Steve Humphreys – Chief Executive Officer
Justin Scarpulla – Chief Financial Officer
Manfred Mueller – Chief Operating Officer and General Manager
Amir Khoshniyati – General Manager and Vice President-Transponder Business
Conference Call Participants
Jaeson Schmidt – Lake Street
Anthony Stoss – Craig-Hallum
Mike Latimore – Northland Capital
Craig Ellis – B. Riley Securities
Brian Ruttenbur – Imperial Capital
Operator
Good afternoon. Welcome to Identiv’s Presentation of its Second Quarter 2022 Earnings Call. My name is Matthew and I will be your operator this afternoon. Joining us for today’s presentation are the Company’s CEO, Steve Humphreys; and CFO, Justin Scarpulla.
Following management’s remarks, we will open the call for questions. Before we begin, please note that during this call, management will be making references to non-GAAP measures or guidance, including adjusted EBITDA and free cash flow. In addition, during the call, management will be making forward-looking statements.
Any statements that refer to expectations, projections, or other characteristics of future events, including future financial results, future business and market conditions, and future plans and prospects is a forward-looking statement. Actual results may differ materially from those expressed in these forward-looking statements. For more information, please refer to the risk factors discussed in documents filed from time-to-time with the SEC, including the Company’s latest annual report on Form 10-K. Identiv assumes no obligation to update these forward-looking statements which speak as of today.
I will now turn the call over to CEO, Steve Humphreys for his comments. Sir, please proceed.
Steve Humphreys
Thanks, operator. And thank you all for joining us. In the second quarter, Identiv continued to make progress securing our leading position in the expanding RFID-enabled Internet of Things sector. We had two primary goals in Q2, growth in RFID of over 40% validating our long range plan and gross margins holding at the 37% or above range we guided for the year. We beat both goals.
RFID growth was 41% and non-GAAP gross margins expanded to 38%, showing margin expansion even while driving RFID growth. Two other key goals in Q2 were growth in our Premises business and expanding EBITDA. Our Premises business grew 19%, another quarter of growth that three times the industry’s growth rate and bringing our half year growth rate to 21%. We think this level of growth is sustainable throughout this year and next.