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PALO ALTO, Calif., November 15, 2021 /PRNewswire/ -- Inpixon (Nasdaq: INPX), the Indoor Intelligence™ company, today provided a business update and reported financial results for the third quarter of 2021.
Nadir Ali, CEO of Inpixon, stated, “We are proud to report that the growing demand for our solutions has resulted in strong year-over-year and sequential revenue growth in each of the first three quarters of 2021. More specifically, we achieved a 74% and 100% increase in revenue for the three and nine months ended September 30, 2021, respectively. This growth results from sales primarily attributed to our smart office app and real-time location based technologies, which have supplemented and enhanced our suite of Indoor Intelligence products and solutions since last year. The combination of our products is not only increasing stickiness with our customers but also increasing our average sales price. We are also seeing success in our land-and-expand strategy as customers continue to increase their footprint with us. In addition, our award-winning smart office app platform was adopted by several top-tier organizations during the quarter, many of whom sought our solution to support their hybrid workplace initiatives. We believe this demand within the market will continue, as the need for a connected workforce and contextual experiences accelerates.
“We remain committed to supplying organizations with a comprehensive suite of products and solutions that provide them with actionable Indoor Intelligence—making their environments smarter, safer and more secure. Towards this end, we have enhanced our technologies and completed acquisitions that expand our product offerings and market opportunities. We are now realizing the full impact of our comprehensive platform. Our platform’s ability to respond and adapt within the new-normal, post-pandemic environment is helping us secure numerous contracts, as well as broadening partnership and collaboration opportunities. We are leveraging our broad range of capabilities and technologies, including app development, mapping, positioning, augmented reality, sports devices and more, in order to reimagine the user and employee experience. Importantly, we are working to reimagine workplace experiences by bringing innovative technologies to the market for smarter, safer and more secure environments.
“Overall, we have more than $100 million of liquidity as of September 30, 2021, which includes $66.8 million in cash and cash equivalents as well as $43.2 million in short-term investments. We believe our strong balance sheet will allow us to effectively execute on our business strategy of gaining additional market awareness and deepening our penetration of the market with our solutions, as well as to identify opportunistic acquisition targets that build upon our established platform and enhance our own technologies. We are proud of the strong momentum we have achieved and look forward to providing additional updates regarding our expansion as developments unfold,” concluded, Mr. Ali.
Revenues for the three and nine months ended September 30, 2021 were $4.5 million and $10.9 million, respectively, compared to $2.6 million and $5.4 million, respectively, for the comparable periods in the prior year. This is an increase of approximately $1.9 million, or approximately 74% for the three months ended September 30, 2021 and 100% for the nine months ended September 30, 2021. The revenue increase for the three months ended September 30, 2021 is primarily attributable to an approximate $1.8 million increase in Indoor Intelligence sales and an increase of approximately $0.1 million of SAVES sales. The revenue increase for the nine months ended September 30, 2021 is primarily attributable to an approximate $3.8 million increase in Indoor Intelligence sales and an increase of approximately $1.6 million of SAVES sales. Gross profit for the three and nine months ended September 30, 2021 was $3.3 million and $7.9 million, respectively, compared to $1.9 million and $4.0 million, respectively, for the comparable periods in the prior year, an increase of 71% and 99%, respectively. The gross profit margin for the three months ended September 30, 2021 was 73% compared to 75% for the three months ended September 30, 2020. This decrease in margin is primarily due to the sales mix during the quarter. The gross profit margin for the nine months ended September 30, 2021 and 2020 was 73%. Net loss attributable to stockholders of Inpixon for the three and nine months ended September 30, 2021 was $33.6 million and $31.4 million, respectively, compared to a loss of $7.5 million and $20.9 million, respectively, for the comparable periods in the prior year. The increase in loss for the three months ended September 31, 2021 of approximately $26.2 million was primarily attributable to the $22.3 million unrealized loss on the Sysorex note and increased operating expenses, offset by the higher gross profit. The increase in loss for the nine months ended September 31, 2021 of approximately $10.5 million was primarily attributable to the increased operating expenses of approximately $24.8 million, offset by the $3.9 million higher gross profit and the $7.5 million release of valuation allowance on the Sysorex note.
Non-GAAP Adjusted EBITDA for the three and nine months ended September 30, 2021 was a loss of $6.7 million and $18.5 million, respectively, compared to a loss of $4.6 million and $12.4 million, respectively, for the prior year periods. 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 three and nine months ended September 30, 2021 was a loss of $0.05 per share and $0.19 per share, respectively, compared to a loss of $0.13 per share and $0.64 per share, respectively, for the prior year periods. 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 loss on the exchange of debt for equity, provision for valuation allowance on notes and acquisition costs.
Inpixon management will host a conference call at 4:30 p.m. Eastern Time on Monday, November 15, 2021, to discuss the company's financial results for the third quarter ended September 30, 2021, as well as the company's corporate progress and other developments.
The conference call will be available via telephone by dialing toll free 844-369-8770 for U.S. callers or +1 862-298-0840 for international callers. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2235/43638, or on the company's Investor Relations section of the website, ir.inpixon.com. Investors and other interested parties are invited to submit questions to management prior to the call's start via email to email@example.com.
A webcast replay of the call will be available on the company's Investor Relations section of the website (ir.inpixon.com) through November 15, 2022. A telephone replay will be available approximately one hour following the call, through November 22, 2021 and can be accessed by dialing 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and entering conference ID 43638.
Inpixon® (Nasdaq: INPX) is the innovator of Indoor Intelligence™, delivering actionable insights for people, places and things. Combining the power of mapping, positioning and analytics, Inpixon helps to create smarter, safer, and more secure environments. The company’s Indoor Intelligence and mobile app solutions are leveraged by a multitude of industries to optimize operations, increase productivity, and enhance safety. Inpixon customers can take advantage of industry leading location awareness, RTLS, workplace and hybrid event solutions, analytics, sensor fusion and the IoT to create exceptional experiences and to do good with indoor data. For the latest insights, follow Inpixon on LinkedIn, Twitter, and visit inpixon.com.
Safe Harbor Statement
All statements in this release that are not based on historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. While management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties and other factors, many of which are outside of the control of Inpixon and its subsidiaries, which could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not limited to, the fluctuation of economic conditions, the impact of COVID-19 on Inpixon's results of operations and global supply chain constraints, Inpixon’s ability to integrate the products and business from recent acquisitions into its existing business, the performance of management and employees, the regulatory landscape as it relates to privacy regulations and their applicability to Inpixon’s technology, Inpixon's ability to maintain compliance with Nasdaq’s minimum bid price requirement and other continued listing requirements, the valuation associated with the Sysorex shares owned by Inpixon may fluctuate on a quarter by quarter basis and is anticipated to be subject to discounts or other adjustments for a variety of factors including but not limited to fluctuations in the market price of Sysorex’s common stock which may result in unrealized losses if the value of such securities declines and require us to recognize a charge against earnings, the ability to obtain financing, competition, general economic conditions and other factors that are detailed in Inpixon's periodic and current reports available for review at sec.gov. Furthermore, Inpixon operates in a highly competitive and rapidly changing environment where new and unanticipated risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. Inpixon disclaims any intention to, and undertakes no obligation to, update or revise forward-looking statements.
Non-GAAP Financial Measures
Management believes that certain financial measures not in accordance with generally accepted accounting principles in the United States ("GAAP") are useful measures of operations. EBIDTA, Adjusted EBITDA and pro forma net loss per share are non-GAAP measures. Inpixon defines "EBITDA" as net income (loss) before interest, provision for (benefit from) income taxes, and depreciation and amortization. Management uses Adjusted EBITDA as a metric for which it manages the business, and Inpixon defines "Adjusted EBITDA" as EBITDA plus adjustments for other income or expense items, non-recurring items and non-cash items. Inpixon defines "pro forma net loss per share" as GAAP net loss per share adjusted for stock-based compensation, amortization of intangibles and one-time charges including loss on the exchange of debt for equity and provision for valuation allowances.
Management provides Adjusted EBITDA and pro forma net loss per share measures so that investors will have the same financial information that management uses, which may assist investors in assessing Inpixon's performance on a period-over-period basis. Adjusted EBITDA or pro forma net loss per share is not a measure of financial performance under GAAP, and should not be considered an alternative to net income (loss) or any other measure of performance under GAAP, or to cash flows from operating, investing or financing activities as an indicator of cash flows or as a measure of liquidity. Adjusted EBITDA and pro forma net loss per share have limitations as analytical tools and should not be considered either in isolation or as a substitute for analysis of Inpixon's results as reported under GAAP.
For more information on our non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, please see the "Reconciliation of Non-GAAP Financial Measures" table accompanying this press release.
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