Identiv, Inc. (NASDAQ:INVE) Q1 2019 Earnings Conference Call Transcript

May 09, 2019 • 05:00 pm ET

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Identiv, Inc. (NASDAQ:INVE) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon, and welcome to the Identiv's Q1 2019 Earnings Call. My name is Danisha, and I will be your operator for this afternoon.

Joining us for today's presentation are the company's CEO, Steve Humphreys; and CFO, Sandra Wallach. Following management's remarks, we will open the call for questions.

Before we begin, please note that during this call, management may make references to non-GAAP measures or projections, including adjusted EBITDA. In addition, during the call management may be making forward-looking statements. Any statement that refers to expectations, projections or other characteristics of future events, including final (sic) (financial) projections and future market conditions, is a forward-looking statement. Actual results may differ materially from those expressed in the forward-looking statements.

For more information, please refer to the risk factors discussed in documents filed from time to time from the SEC, including the company's latest Annual Report Form 10-K. Identiv assumes no obligation to update these forward-looking statements, which we speak of as today.

I will now turn the call over to CEO, Steve Humphreys, for his comments. Sir, please proceed.

Executive
Steven Humphreys

All right. Thanks, operator. And thank you all for joining us today. As you've seen, the first quarter of 2019 continued the momentum of growth and development of the business from the fast pace of 2018. We started out 2019 fast, also.

In the very first week in January, we welcomed the Freedom, Liberty and Enterphone MESH product lines to Identiv. These products round out our technology platform following the successful acquisitions of Thursby Software Systems and 3VR video analytics in 2018.

We think these three acquisitions complete the core components of our platform, bringing us much closer to our vision of cloud-based, software-centric and mobile-enabled digital access, immediately accelerating our growth and penetration of current customers as well as adding the multi-tenant market a range of products that fit the distribution channel and a perfect fit with the IT channel buyer, which is where some of the fastest growth is happening.

Looking at some of our key metrics, we delivered 18% year-over-year revenue growth, continuing to gain market share in our industry, which is growing at less than half our pace. This underlines the intersection of both positive industry trends and our customers' increasing desire to secure critical information and infrastructure, address mobility and BYOD and to do it with Identiv's integrated and IT-centric solutions.

Both of our segments experienced strong double-digit growth. Premises was up 25%, and Identity up 13% year-over-year. Premises, which now includes our Freedom and Liberty platforms, also grew 5% sequentially. Now typically, we've got a seasonal decline in the first quarter and we've broken that trend this quarter. Both the sequential growth and the even stronger year-over-year growth were due to continued traction we're gaining across all of our verticals.

On the Identity side, we grew year-over-year 13%, helped by another major delivery of our Thursby R2S product to the Navy Reserve. Now, I'll touch on this more later, but this is another proof point of