Inpixon (INPX) Reports FY 2021 Results, Provides Business Update

Inpixon® (Nasdaq: INPX), the Indoor Intelligence® company, today provided a business update and reported financial results for the fiscal year ended December 31, 2021.

2021 Business Highlights:

• Achieved record revenue of approximately $16 million, an increase of 72% over the prior year
• Increased SaaS annual recurring revenue bookings approximately 70% over the prior year
• Completed three strategically significant acquisitions expanding the scope of intellectual property, customer base, and geographic presence, as well as adding advanced enterprise smart office apps, virtual and hybrid events platform, augmented reality and industrial IoT solutions
• Increased the total contract value of existing customers by 89% of the initial order executing on our land and expand strategy

"I'm extremely proud of the progress we've made throughout 2021," commented, Nadir Ali, CEO of Inpixon. "We've continued to execute on our business growth strategy resulting in a significant increase in our customer base and a 72% increase in revenue year-over-year. Over the last four years, Inpixon increased revenue more than five-fold, from approximately $3 million to $16 million. We currently expect to achieve even higher revenue growth in 2022, with a particular focus on organic growth within the existing product lines. Importantly, we have maintained gross margins at 70%, while increasing our recurring revenue as a percentage of sales. We improved our operations by completing three strategically significant acquisitions that complemented and enhanced our existing Indoor Intelligence platform. As a result, we have effectively expanded our technologies, capabilities, and solutions to address various use cases including the hybrid workplace, virtual and hybrid events, augmented reality and Industry 4.0. To date, we have secured important contracts with top-tier organizations as well as expanded relationships with existing customers, thereby increasing our exposure and penetration within the market. Given the pace of digital transformation, we anticipate demand for our solutions to remain strong, as organizations seek solutions that improve operational efficiency and enhance the workplace experience.

"Overall, we have industry leading technologies, a well-established customer base, strong demand for our solutions within numerous industries including healthcare, corporate enterprises, manufacturing, and more. We are a recognized industry leader, identified by Gartner as a Leader in the 2022 Magic Quadrant for Indoor Location Services. We believe we have built a foundation for continued success, both operationally and financially, and that we are very well positioned for strong organic growth given the opportunities within the corporate environment, metaverse, Industry 4.0, and AR markets. We are encouraged by the outlook of the business and look forward to providing additional updates throughout the year," concluded, Mr. Ali.

Recent Milestones:

• Named a Leader in the 2022 Gartner® Magic Quadrant™ for Indoor Location Services [1]. This is the fourth consecutive year that Inpixon was recognized in the Magic Quadrant for completeness of vision and ability to execute
• Released State of Indoor Intelligence 2022 report which explored how changes happening in the world have impacted the state of indoor intelligence in organizations
• Secured contract for hybrid event solution to support conference with 50,000 in-person and virtual attendees
• Announced contract with a premier automotive vehicle manufacturer to provide its employee experience app
• Acquired INTRANAV, a leading industrial IoT, RTLS, and sensor data services provider, positioning Inpixon as a one-stop-shop for comprehensive location intelligence solutions for both the corporate and industrial sides of an organization
• Recognized as an IDC Innovator for Location & Geospatial Intelligence
• Announced that Inpixon's CXApp Event platform was selected by the Association of Briefing Program Managers as their exclusive event management solution

Financial Results

Revenues for the year ended December 31, 2021, were approximately $16.0 million compared to $9.3 million for the comparable period in the prior year for an increase of $6.7 million, or approximately 72%. This increase is primarily attributable to an approximate $5.0 million increase in Indoor Intelligence sales, including the smart office app and real time location-based technologies, and an increase of approximately $1.7 million of SAVES sales. Gross profit for the year ended December 31, 2021, was $11.6 million compared to $6.7 million for the comparable period in the prior year, an increase of 74%. The gross profit margin for the year ended December 31, 2021, was 73% compared to 72% for the year ended December 31, 2020. This increased margin is primarily due to the sales mix. Net loss attributable to stockholders of Inpixon for the year ended December 31, 2021, was $69.2 million compared to $29.2 million for the comparable period in the prior year. This increase in loss of approximately $39.9 million was primarily attributable to the increase in operating expenses of $53.8 million, offset by the higher gross profit of $4.9 million, and reduced other loss of $5.5 million. Although total operating expenses were higher as compared to the prior year, over $21 million was comprised of non-recurring and non-cash expenses which are not anticipated for 2022. Moreover, we anticipate additional synergies as a result of the integration of the acquired companies that we believe will substantially reduce our operating expenses in the coming year.

Non-GAAP Adjusted EBITDA for the year ended December 31, 2021, was a loss of $29.6 million compared to a loss of $17.1 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, 2021 was a loss of ($0.26) compared to a loss of ($0.71) 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.

Conference Call

Inpixon management will host a conference call today at 11:00 AM Eastern Time to discuss the company's financial results for the fiscal year ended December 31, 2021, as well as to review the company's corporate progress and other developments.

The conference call will be available via telephone by dialing toll free 888-506-0062 for U.S. callers or +1 973-528-0011 for international callers and using entry code 628452. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2235/44806 or on the company's Investor Relations section of the website at 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 protected].

A webcast replay will be available on the company's Investor Relations section of the website (ir.inpixon.com) through March 7, 2023. A telephone replay of the call will be available approximately one hour following the call, through March 15, 2022, 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 44806.

[1] Gartner, Magic Quadrant for Indoor Location Services, Tim Zimmerman, Annette Zimmermann, Feb. 23, 2022.

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Gartner and Magic Quadrant is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved. Gartner does not endorse any vendor, product or service depicted in our research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

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