Identiv, Inc. (NASDAQ:INVE) Q3 2023 Earnings Conference Call November 7, 2023 5:00 PM ET
Company Participants
Steven Humphreys - Chief Executive Officer
Justin Scarpulla - Chief Financial Officer
Amir Khoshniyati - General Manager & Vice President-Transponder Business
Conference Call Participants
Jason Schmidt - LakeStreet
Anthony Stoss - Craig-Hallum
Craig Ellis - B. Riley
Operator
Good afternoon. Welcome to Identiv's Presentation of its Third Quarter Fiscal 2023 Earnings Call. My name is Tom, and I will be your operator this afternoon. Joining us for today's presentation are the company's CEO, Steven 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 may be making references to non-GAAP financial measures or guidance including non-GAAP adjusted EBITDA, non-GAAP gross margin, non-GAAP operating expenses and non-GAAP free cash flow. In addition, during the call management will be making forward-looking statements.
Any statement that refers 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 form on report 10-K and quarterly report on Form 10-Q. Identiv assumes no obligation to update these forward-looking statements, which speak as of today.
I will now turn the call over to CEO, Steven Humphreys for his comments. Sir, please proceed.
Steven Humphreys
Thanks operator and thank you all for joining us. In Q3, we continued to focus on high-margin revenue growth in our strategic business lines to strengthen our balance sheet and our business growth.
Our Premises business grew 15% year-over-year to a record $13.6 million, and our video software revenues more than doubled year-over-year. This brought our software services and recurring revenues to a record over 20% of our total Premises business.
However, in the Identity business, mostly within the lower-margin products of our RFID segment, we had a major revenue shortfall, coming in about $3 million below what we had planned. We'll talk about this in more detail later, but I wanted to address it early.
We had three customers, in particular, push out orders in the library, packaging, and warehousing and logistics categories that delayed shipments, which we expect to recover by the end of Q1.