Seattle-based RFID technology company Impinj made a strong earnings debut as a publicly traded company, beating Wall Street expectations for the second quarter.
Impinj posted non-GAAP profit of $900,000 or 6 cents per share on $26 million in revenue. That is a revenue increase of 36 percent over last year and 20 percent growth over the last quarter. The company’s stock is up 5 percent in after-hours trading.
Impinj CEO Chris Diorio said there is a huge market opportunity for the company’s Radio Frequency Identification technology, which allows retailers to track inventory or manufacturers to track parts.
“The opportunity is to extend the reach of the internet by a factor of 100,” Diorio told GeekWire. “To connect not just powered electronic devices that are connected to internet today, but to extend that connection to every day items: retail merchandise, automotive parts, pharmaceuticals, airline baggage, food, really everything.”
At the end of the second quarter, Impinj employed 224 people, up from 208 at the end of the first quarter. Diorio would not say how many more people Impinj is looking to hire in the near future, but there are positions open, and the company will continue to grow.
Analysts surveyed in advance by Thomson Reuters expected the company to post earnings of roughly 2 cents per share and revenue of approximately $25 million. Analysts expect Impinj to report annual revenue of $101 million this year and record a small loss of a penny per share.
In the third quarter, Impinj expects to post revenue between $27.4 million and $28.9 million, profit of $200,000 to $1.7 million, and non-GAAP earnings per share between $0.01 and $0.09.
Impinj began trading publicly July 21, and Wall Street immediately liked what it saw. The company’s stock started at $14 a share and popped more than 20 percent on the first day of trading. By Wednesday morning, prior to the earnings report, Impinj’s stock had risen more than 66 percent since the IPO. The company’s valuation hit $249 million following the IPO, according to information from PitchBook.