INPX Quarterly Earnings. Should You Buy?

 

Inpixon (Nasdaq: INPX), the Indoor Intelligence™ company, today provided a business update and reported financial results for the fiscal year ended December 31, 2020.

(PRNewsfoto/Inpixon)

Recent Milestones:

  • Secured approximately $78 million in net proceeds through registered direct offerings priced at-the-market, including the exercise of warrants.
  • Partnered with a leading European distributor and integrator of sensors and other electronics to provide Inpixon’s carbon dioxide (CO2) sensor modules for use in measuring indoor air quality–an important indicator of SARS-CoV-2 and other pathogen transmission risk.
  • Launched next-generation chirp RTLS anchor board, Inpixon nanoANQ Chirp PCB, to accelerate the adoption of large-scale, real-time location systems (RTLS) in mass market applications.
  • Announced Inpixon Mapping has been selected as part of a workplace experience solution for a leading medical technology provider, one of the world’s largest public companies, to provide intelligent, multi-layered digital maps.
  • Announced Inpixon Mapping has been selected by one of the world’s premier pharmaceutical companies to provide the visualization required for tracking its critical COVID-19 vaccine-related assets.
  • Completed acquisition of Nanotron Technologies GmbH, a global location awareness technology company.
  • Acquired an exclusive license to market and distribute the SYSTAT and SigmaPlot software suite of data analytics and visualization tools, a transaction accretive to earnings.

Nadir Ali, CEO of Inpixon, commented, “For Inpixon, 2020 was a year of continued growth, expansion and innovation. For the 2020 fiscal year, revenue increased 48% compared to the same period last year. Contributing to our growth, we completed a number of important acquisitions, adding critical technological capabilities, such as on-device positioning, UWB and other RTLS technologies, and expanding our operations in Europe. We have continued to advance our market recognition and industry position among some of the most well recognized brands offering critical capabilities for location-based technologies. We entered 2021 with a strong balance sheet, including approximately $18 million of cash and cash equivalents as of December 31, 2020. We supplemented this by raising an additional $78 million in net proceeds in connection with registered direct offerings, including the exercise of warrants following the end of the period. With our solid financial position, we remain committed to an accelerated growth strategy focused on Indoor Intelligence for people, places and things.

“Based on feedback from customers, the desire for Indoor Intelligence and the adoption of indoor positioning technologies is accelerating and will continue to evolve across a multitude of use cases and industries. As more and more organizations are re-opening and restrictions are being eased to varying degrees, organizations will have to respond to the requirements of a transforming workplace, with concrete measures that support hybrid working models and space rationalization requirements in addition to ensuring the health and safety of employees and visitors. We are at the forefront of delivering a new workplace experience using our mapping and on-device positioning technologies which are essential for providing enterprise-specific solutions with features such as desk booking, cleaning alerts, real-time notifications, and more.

“With our UWB and CSS RTLS tags and anchors, we can offer RTLS technologies that are critical to helping employers keep their workers safe in inherently dangerous environments such as mining and industrial settings. These environments require real-time positioning of people and assets, with positions and distance measurements that need to be calculated in milliseconds in order to support proximity alerts and collision avoidance capabilities for worker safety. We are also innovating by expanding our ability to deliver for these use cases and industries by moving from offering just the chips and modules for RTLS, to delivering complete end user solutions including the related hardware and software, which is expected to increase our average selling price and overall value proposition.

“We are tapping into the growing demand for indoor intelligence and establishing ourselves as an industry leader. We are seeing significant opportunities for continued growth in the workplace experience, industrial environments and other industries that are increasing their reliance on mapping, locationing and analytics technologies to enhance their environments, making them smarter, safer and more secure. We intend to continue to invest in those opportunities. Overall, we remain highly encouraged by the outlook for the business and look forward to accelerating our growth going forward.”

Financial Results

Revenues for the year ended December 31, 2020 were $9.3 million compared to $6.3 million for the comparable period in the prior year for an increase of $3.0 million, or approximately 48%. Revenues increased approximately $1.2 million from the Systat licensing agreement, approximately $0.9 million from the Nanotron acquisition and approximately $0.9 million net increase from existing product lines over the prior comparable period. Gross profit for the year ended December 31, 2020 was $6.7 million compared to $4.7 million for the comparable period in the prior year, an increase of 42%. The gross profit margin for the year ended December 31, 2020 was 72%. Net loss attributable to stockholders for the year ended December 31, 2020 was $29.2 million compared to $34.0 million for the comparable period in the prior year. This decrease in loss of $4.8 million was primarily attributable to the increase in operating expenses offset by the increase in gross margin and the decrease in the valuation allowance adjustment. Non-GAAP Adjusted EBITDA for the year ended December 31, 2020 was a loss of $17.1 million compared to a loss of $11.1 million for the prior year period. EBITDA is defined as net income (loss) before interest, provision for income taxes, and depreciation and amortization. Adjusted EBITDA is used by Inpixon management as a metric by which it manages the business. It is defined as EBITDA plus adjustments for other income or expense items, non-recurring items and other non-cash items including stock-based compensation.

Proforma non-GAAP net loss per basic and diluted common share for the year ended December 31, 2020 was a loss of $0.71 compared to a loss of $18.75 per share for the prior year period. Proforma non-GAAP net income (loss) per share is used by Inpixon management as an evaluation tool as it manages the business and is defined as net income (loss) per basic and diluted share adjusted for non-cash items including stock based compensation, amortization of intangibles and one time charges and other adjustments including provision for valuation allowances, severance costs, provision for doubtful accounts, acquisition costs and costs associated with public offerings.


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