Impinj (PI) 26 Apr 232023 Q1 Earnings call transcript

Welcome to the Impinj First Quarter 2023 Financial Results Earnings Conference Call and Webcast. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask a question. [Operator Instructions] Please note today’s event is being recorded.

I would now like to turn the conference over to Mr. Strategic President, Vice Cobb, Finance. Andy Please go ahead.

XXXX CEO, Operator. joining detailed of us you, On market call, Co-Founder opportunity quarter Good of Cary our brief quarter will afternoon for all today’s follow and and Impinj’s second Diorio, Impinj’s you and thank Chris provide to our review results quarter financial results. a overview and outlook. XXXX Thank will Baker, discuss CFO, performance. first Impinj’s a with first

questions. for us call Dossett, the Impinj’s join open then will will Jeff for CRO, We Q&A. the

prepared can find website. plus You on data, the section management’s company’s remarks, the trended financial of investor-relations

forward-looking We will Litigation Reform the of future our and based Private XXXX. make performance Act on statements are in outlook as about Any under financial that today. are call Securities expectations of this statements such

uncertainties describe and quarterly we disclaim, file results not update We statements While by we in our subject and statements, basis we statements as the any SEC. reasonable or such required undertake, because expressly We a risks to obligation except any believe these risks are for law. annual forward-looking making our have these with do could to forward-looking and materially and the alter differ actual reports uncertainties.

refer financial our for metrics. GAAP our call, all of Balance Please the financial metrics earnings or On reconciliation non-GAAP. today’s explicitly to release a non-GAAP metrics revenue, to otherwise, flow most we GAAP. are are except for state where sheet metrics cash comparable and

June will and on New with and Investor Baird’s note XXst. Before Also, of New host connecting Conference Global you on We those to will XXth and participate in look turning Roth’s June we June in York; that on UBS outlook, many on London Technology Conference York; Seattle. Industrials in June an at Services events. and in Consumer, forward results Day Xth we the Transportation Global Conference to our Xth

the turn over to call Chris. will I now

all for joining you And Andy. you, the thank Thank call.

set new Our year. to hit quarter strong a start the Revenue a first record. quarterly

by underpinned finally solutions as And end allowing future support our is Our begin users, very is sheet us well supply our growth. to balance backlog enterprise that with engagements to inventory as improving, building multi-quarter backlog, anticipated endpoint strong. use our to IC wafer

endpoint underlying Starting consecutive setting stock. record demand, our exceeded with our driven quarter [ph] was first their rebuilding for by inlay supply a IC ICs, That revenue expectations, increasing Xth performance quarter. partners the and safety

drive that strong quarter several sequentially. we off should be endpoint that flat crosscurrents Coming first see second revenue to quarter, IC

reasons are the our expansions built program point, cases, prior new progressing, the for and every today’s precise months, own of vantage though involved From to relative on expectations enterprise and disruptions large solutions significantly is to several drivers are their deployments. latter by our most also and use back with deployment IC which timing even all we pace enterprise inability our First, supply traceable efforts, each our the is endpoint delayed but meaningful main to predict of growth.

IC our opportunities growth remains many second time. strong pause. growth. as inlay very see and slowing expect safety-stock stalled see partners and early our their will restarting summary, opportunities And recovers, we remains supply shortfalls full-year take quarter product a those finally, endpoint backlog our demand we IC robust healthy, Second, our In but

spans visionary phase several we and enterprise This drive deployments, prior of of at loss-prevention second those quarters starts quarter, will phase, retailer. the size with phase is PO third received endpoint European IC a volumes. the incremental roughly in the Beginning deployment for XX% the the

and others. expansion this see continue retailer prevention We by and self-checkout at at to and the loss be case excited opportunities use

and American logistics retailer. large our used user. expect growth category American And demand North the from supply in see demand we for ICs, strong large In IC expansion endpoint strong at second front, retail chain half printer-encoders, very end reader North general we second for merchandise, on partner XXXX our the

We beyond. to expect IC that end user and half drive second large volumes endpoint in XXXX

about expect early foods. Impinj quarter Impinj I million progress as magazine am book that we Authenticity XXXX. a am the and our volumes meaningful as tax ICs several specialty ago, I pleased also second tracking expect hundred with Japan, years excited Turning by in and endpoint and consume case IC in for well pioneered healthcare we opportunities, MXXX to tracking use endpoint will

positioned on We these early well to capitalize opportunities. are

supply we and finally availability partner support up will to wafer from XXXX building inventory. post-processing appropriate second the a On of Between our our the by avoid and front, painful investments, look our in foundry XXXX quarter. catch to repeat demand shortfalls

entered tightness second few we reader but with For carry backlog will components quarter. the significant stubborn we means backlog, a third in quarter likely significant readers, into

than was demand our production, ICs, E-family-based XX in reader products our ramping For partners announced as even strong, for more products to Indy legacy new products XX development. with began

the experienced platform April in leadership organization, acquired to to integration, the our Voyantic, XX very solutions years reliability we very of the the a footprint operations, to with users as our leading closely partner industry for of test. in Voyantic in between their is the transform relying advance the quality, acquisition the to used am I this and of solutions the them, important for Voyantic cultural have measurement to our design, family. on most worked part team, Impinj teams better inlay leader strong. end Turning Perhaps inlays part and successful two the those and have With enterprise readability and trusted and deployments. fit thrilled expands

experience Washington our multi-billion-dollar am experience supply XX digital connect operations, on every journey to family! in has business-to-consumer chain to to board. Miron Impinj’s in our P&L everyday and transformation world. will Miron, business-to-business Miron item pay our thrilled years’ knowledge His verticals the and Impinj welcome global target and e-commerce, to dividends market I welcome ownership. also in

many product development operational every like from feel the our your effort scaling thank In to timely vantage I’d shortfalls fronts, see close, a to project on closing, for new member team honored half opportunities. capabilities incredible many to Impinj against I with I customers. from and of delays product to delighting our work I Before shipments so unflagging as to today’s by growing my from transition XXXX good point you. fortune first

to Looking see second growth, platform strong Impinj half XXXX, I efforts our dividends. secular and backlog paying market solutions

energized continue driving ahead. As and vision, the in confident opportunities our position we our I remain bold market by

call for over I will and quarter now review the outlook. Cary our financial second to Cary? turn

Chris, our good afternoon, and second financial review results call, will quarter I you, first Thank quarter and On everyone. outlook. today’s financial

$XX.X with quarter fourth compared up XXXX million XXXX. $XX.X million from million, in $XX.X First quarter XX% quarter XX% sequentially revenue in and was year-over-year up first

in First IC sequentially first quarter revenue fourth above quarter $XX compared $XX.X year-over-year in quarter with XX% XXXX XX% $XX.X up up and expectations. first quarter supply million was our revenue million from endpoint XXXX. drove million, Improving

the project second quarter. to expect strength revenue to mentioned we quarter, quarter and timing Chris result endpoint now first Looking to first similar in IC

revenue up First up fourth XX% X% compared million $XX.X quarter in sequentially $XX.X quarter in $XX.X with quarter XXXX. year-over-year million first million, systems was from XXXX and

a gateway by revenue IC revenue decreased. basis, a reader sequential reader exceeded revenue quarter systems and increased, expectations, reader IC First driven and On gateway basis, increased, decreased. and reader revenue year-over-year On strong IC, gateway while shipments. reader while our revenue reader

Voyantic as component stubborn sequential quarter systems a shortfalls expect offset we revenue, in ahead, second decrease revenue. than slight more Looking

was by gross margins, lower XX.X% product margins, related quarter XX.X%, was the costs quarter XXXX The and XXXX. by IC systems specifically specialty E-family industrial First indirect in with post-processing, ramping a IC XX% The and IC XXX endpoint mix. specifically millimeter product decrease ICs. margin reader both mix was of decrease to specifically driven in smaller lower and quarter year-over-year compared margins, endpoint fourth sequential first driven product

to to return we margin expect XX% our quarter, Looking the to XX% to second gross range.

quarter $XX.X and administrative fourth operating $XX.X quarter million, was and was $XX.X in development Sales million. expense and $X.X with $XX.X marketing was in XXXX Research million. compared General was first first million Total $XX.X expense expense million expense million. and XXXX. quarter

slight second operating We sequential expect in a expense. decrease quarter

and in EBITDA first million fourth was quarter quarter XXXX First with compared XXXX. $XX.X $X.X in million, million $X.X adjusted quarter

quarter margin XX%. EBITDA First adjusted was

First GAAP million. loss $X.X quarter net was

a was or share First $X.X quarter on basis. diluted net income non-GAAP million, fully per $X.XX

we quarter raw $XX.X million, totaled cash, investments $XXX.X compared equivalents balance with in million cash of million, endpoint XXXX. and to WIP $XX.X increase. materials XXXX ended with and IC fourth driving $XXX.X prior sheet, the Inventory first quarter with quarter Turning up million million $XXX.X the the from first in quarter, and

and $XX.X million million. Property First quarter for $XX.X million, by totaled $X.X flow was including inventory Free was operating equipment million. growth. activities used purchases net negative $XX.X cash cash

a Before our and I few results second to to our guidance, outlook. want items turning highlight quarter to unique

efforts solutions expand many Voyantic, our acquired revenue First, This as advances grow Chris first will mentioned, tuck-in gross years. deal our in acquisition and both margin. we and

in endpoint IC significantly our a first anticipate least began millimeter quarter, inventory unit do finished inventory inventory. our until Today, sustainable we although at quarter Second, XXXX. goods backlog not we rebuilding exceeds XXX amount third wafer of having

Finally, end more $X.X EBITDA spend from spend the quarter low litigation first ahead dates. of of exceeded expectations trial to a guidance. first million our standpoint, pushing million operating expected, profitability due $X.X our adjusted expense below our our quarter That scheduled than was we

adjusted below fourth Looking and half margin run expansion the operating be EBITDA we quarter expense first and expect third to ahead, second quarter anticipate rate.

a compared with quarter second increase year-over-year in $XX.X outlook, at XX% midpoint. $XX Turning quarter revenue to million and we second expect XXXX, our $XX million, the between

EBITDA We between expect $X.X and million. adjusted $XX.X

line, $X.X On and $X.X earnings-per-share non-GAAP and between million, $X.XX. income the reflecting between expect net $X.XX bottom diluted we non-GAAP fully

team, investors, support. ongoing In your our thank closing, our and for I suppliers the to Impinj customers, want you, our

to session. I the to Operator? call will open now turn the operator question-and-answer the

much. Thank you very

begin ahead. Kumar Instructions] the with Harsh [Operator Sandler. first Today’s Piper from Please question We now go will session. comes question-and-answer

Yeah. questions, fine. Hey, I is Chris, it demand had when I Cary the two to the good seems and commentary, your Chris, Impinj listened like afternoon, end team.

number be second then would growing jeopardy in How you able you in fixing the a in You’re going end the historically, cycle. talk a life few that position to this you its first Impinj quarter a as flattish of phase call to about rate is XX% least year? XX% would I of or still what of would of And pains always Do grower things. for to a at think be characterize demand? thought growth kind with and to kind we’ve that as

the for Thank question. Thank Harsh. you Okay. you,

end the your the So part question, strong. to take demand remains first user of

we’ve of a working just of a any That We just predicting is And push said, their the with. backlog What many for of timing have any seen we difficulty in the remains to size our the seen we see in due sheer right. significance of have bit the of and given not deployments. any them, pullbacks those to programs been pace strong.

quarter multi growth programs is those those backlog Our we large see remains that programs. at driving going which And into strong. backlog

in why into quarter. that’s use a remarks, So I growing third It’s second in word a as we pause. of see quarter bit pause the demand my prepared the a the

latter the time. year, robust growth. overall don’t your the And we we And out do past in market. been reason demand the revenue one terms inventory] decade of only over [netted unit in has we full XX%. strong that industry of unit a between see quarter CAGR the [ph] at going year part the CAGR still to endpoint back change – why the see a is going do given guide see any volume volume XX% for question, we and IC overall growth year, For see unit We

question, my queue. second last taking Understood, to presumably, in Chris. Thank for logistics ask ICs. I and, the the customer, you second then wanted get about the billions guess, for be they’ll And of I I’ll clarity. back

sooner of So resumption depletion benefits the the you that orders why, would from not later? customer we about inlay lag inventory than see guess might and inlay and guess, partners. the the asking the see between I’m for I partners that of I

do is these get share you applications, keep second at we question kind of the another then let’s And much say, Logistics customer? how

Sure.

the answer So part your first a ramp. of to of the currently question, timing the deployment is

going There on for efforts that deployment. now. So it’s significant are systems early days

encode facilities the to to in mentioned the parts able reading I printers to side my around the of prepared efforts be other labels, encoder put there’s other remarks, infrastructure. As printer the in

you our deployments. at So ramp as that really And terms deployment of where should those in the we our of to are in ramping. of terms be delayed is, relative a expectations share thinking bit

extent our platform the As includes meet share customer entire the outperform have very And solutions these our performance platform to elements expect endpoint been to needs And competition, of us use enable know-how, those to really of platform, combined you to basically to overall that accounts. that those maintain of for we our enterprises. and to our our end the know, end to systems better working solution together advance including hard our we very can our good customers’ advance many platform, entire I against the and needs. ability our deliver ICs,

Understood. Chris. Thank you,

Harsh. you, Thank

The Needham & next question Jim Ricchiuti go from ahead. Company. comes with Please

and deeply, Hi. confident about you how you of you that How not I bit challenges just obviously delays it’s are there. customers more enterprise to can, a talking are some respect many if noting these Can deployments. that get of are that you’re we’re Thank out latter? think, some you’ve chain confident a that you. function I supply with macro delays experienced, partly headwinds a we there’s little into the these how wanted the sense to go

see infrastructure they’re confident to and, in we won deployments. that pulling the in Thanks, in your systems deployments. as the To mentioned see to Jim, indication phase able needs answer prepared at for back retailer. third just are demand question, our we fact, deployment no visionary We And in strength and for in systems those European remarks, question. those we your of be the service I the

reader American significant the seeing the of customer to out build IC and supply logistics second chain some large We’re demand infrastructure. North into

built the product those as confident product the of and So it’s at headwinds not systems those product delays accounts. we in availability, terms earlier IC the And we’re are in on we confident position them going just of are availability. programs are availability well. just But endpoint being one factors, it’s faced many forward, our

So delays feel good timing for the I stated the about product ramps, [ph] attempting. in I’ve of project opportunities. as just of what and size Harsh, certainly availability the enterprises impacted those are very answered that sheer scale these

in course, customers. end Of we’re engagement regular with these

in We the future. are confident

see endpoint have moved the I minute still pace to given to growth. expect just the But some just things right right large timing ago, IC to bit. said and measured of full these months. is a of year And move the we As a just significant deployments, the in

huge a to talking move right. not We’re the

not talking We’re multi here. quarters

We’re talking months.

my been the it. are it is you’re nagging scaling Because XXX of follow-up that’s appears just at holding been satisfied a the How millimeter bit. And which you pace have regarding issues, Got you post-processing. question this? one the with back also little to

in ahead demand enterprise us of out from I post-processing by built capability do capacity this Correct. And year. And the limited we to of our have anticipate get being second these the deployments. half not post-processing

We’re XXX on we getting the caught By will wafer the year. availability up to wafers. by or availability that up by is goal caught wafer finally millimeter And end of quarter, and the not limited have of achieve second will post-processing half goal. in our demand, be the believe I to

queue. the Thank you. I’ll jump in back

Okay. Thank you, Jim.

Walkley with next go The Mike from comes Canaccord question Please Genuity. ahead.

Great. Thanks. Cary. I’ll Maybe start with

building and are or where in on overall for into feel inventory going bit? do the going history. some is even up you maybe dig demand should capacity to is to nearly right stubborn components? come in highest system down that you this want build need you more? side you’re done there get Just company is little Or forward trying forward think little want a level there endpoint for inventory that a it or to as Just this the just you’re more Is like some a waiting inventory

raw it’s IC, Mike. in also Thanks, of prepared I as WIP. as inventory Yeah. endpoint remind It materials and record Most specifically noted record Impinj I the is remarks, my well. would level. also a for were growth, you revenue

no that that rely we supply, XXXX RAIN As do down get strategy, to in run about products companies let that and to business. our we to we secret want their couldn’t they’re using them we where and think XXXX transform It’s supply Impinj XXX on don’t enough and Fortune again.

in build to supports We’re foundry signal path nodes] wafer and on incorporates [our tightness a XXXX. of that also [ph] our growth in level inventory partner appropriate of expectations

primarily significantly non-refundable, non-cancelable the have inventory level of comprises Today’s dates backlog, with in today. we which request that orders exceeds XXXX,

comfortable are. we’re with So where we

build opportunities. of We little in growth these front a expect to more bit

Chris. And Mike, is this

Cary made. the that reemphasize to point Just

is XXX on growth Our growth these seeing built inventory that at Fortune enterprises. we’re being program

expansions, So building that able we’re those want opportunities. forward. to new new program go the to significant service expansions And we be appropriate inventory programs, sure to make

Great. Thanks.

For feeds half kind second my that it, in follow-up, confident of seen of year Chris, into that ramp. you’ve the

be seasonality the of think Now that maybe is the to demand of that seasonality year, tends balance of that stronger supply starting maybe second into in in how investors we just to business should reach the that the second third you half half year? quarter about and longer-term remind can your

Mike. one This question, that take Chris. Cary. great is Yeah, I’ll for

historical where apparel. peak of IC probably endpoint normal And point. QX Today, QX. before revenue such being haven’t vertical seasonality we retail result seasonality that’s X a in of been and yes, has largest in in couple now, So, at seen years volumes our declining this a years

So I’ll bit provide progressing progressing, today. IC the more little business color on business we endpoint the see how a

with, strong IC we growth. continue first to year expect Starting endpoint full

XXXX Our use leveraging program solutions. enterprise and growth underpinned to that new by are and significantly continues expansion cases our be platform

We’re slid by big mentioned, now revenue endpoint Chris the because, some modeling those about as QX a programs flat, right have quarter. to IC of

result, a about time quarter. shifted have a for our growth As also expectations

cetera. So QX growth we moves QX, in expected QX and QX, that to to et

historical in expect to we sequentially IC endpoint accordingly, So, QX, QX in so and revenue grow different than then seasonality. again

with again? last maybe have thanks. these about that thinking then you on business? are the pause. decline question, a grow Or of how just the Would Okay, one some logical systems system side And the things and mid-year

Yeah.

components but component because supply. we’re That in because tight. and ramp stubbornly improving for self-checkout of down European ago, the QX, So, guiding will That the we supply be year. supply systems third guided a in few prioritizing to we in phase the sequentially systems improved, deployment then a half has QX anticipated we’re because of remain quarter the QX slightly and deployment, loss-prevention retailer begin flat back

systems seasonality, I a is As follow typical second QX to business we QX strongest anticipate revenue half. exceed half in fourth think, And, and the systems result, where quarter. first the

Thank helpful. That’s you much. very

Mike. Thank you,

[Operator Instructions] ahead. question with Jefferies. from Please Natalia comes next Winkler The go

wanted my on if some penetration. and Chris, you you taking to I us can Hi. color Thank with question. help apparel the retail for ask,

[for How trying of rate should understand has the out of the figure business has] and to trying that [ph] retail last And if So retail kind kind tax to with if for if has the now changed? over how expect maybe attach Impinj really together inventories to changed showing the years? we the now of IC here couple trend industry well? build as you retail the

Yes.

So, Natalia. thank you,

estimated of So attach XX%. we rate have and XX% the between retail apparel

to And so, to if opportunities yes, is the of I IC think retail tied two-thirds before probably assume look that today it’s these apparel. at probably you market new endpoint fair demand ramp

a goes a demand bit, As apparel RFID the we I go of it retail little little go and up mean when bit. goes. down It significant down say a market you goes, And positive in I goes up. the a way. RAIN portion If goes,

quarter, If provides the inventory that because apparel to still for endpoint up partners So inventory growth of in little retail pull what our second through. through and the today. portion carefully we growth the in build bit saw it quarter to of expected of inventory retail But to retail we to inventory. some significant a than of partners second less in a able more a see endpoint previously being that a are is getting watching in bit ICs, healthy we will therefore, pull demand quarter the turn was deliver levels of quarter. levels market, We or our digestion begin had pull healthy apparel we second ICs first of pick apparel

And case still apparel we the including We that grade. we prevention attach opportunities opportunities about that XX% do about above loss use as think see European self-checkout others, for and ahead It’s retail Retail retailer. us, and of the talked talk significant keep the we our driving. second. visionary will like

you would made the and And bit stands? acquisition helpful. kind very second you providing think That’s Chris, have portfolio the from color on strategic about for we my a Thank guys how question, mind little of you. it then more new should

I’d to. be happy

been industry and specifically quality, about, inlay enterprise particularly the readability. to the opportunities, in So Voyantic quality, reliability, readability. solutions acquired business Voyantic inlay as that relies We talking that ensure is transformation set, our pertains ones for whose reliability, leader on skill to and we’ve

significant labels, So team, we with to are very no saw strength an overall a really enterprise into focusing there are here key as are delivering. overall but and labels ensuring a Voyantic, a go we company part they RFID, really solutions RAIN the known that opportunity partner partner form on and there of that team, experienced leadership known the the in inlays, team, solution

there our be ensure partners, customers, to reliability and enterprise those readability our want and the of and products. helping quality We with end them

to have the of basically, So, continue more solution we want solution works. pieces to the sure to make

And fit, so to family. are and we the the as Voyantic that part of acquisition have thrilled where them Impinj was

Thank you.

Natalia. you, Thank

Scott from go The Searle comes Please with ahead. ROTH question MKM. next

in second of my Hey, It first taking there. sequentially And things to of Hey, little the I to of a litigation? Thanks on again half quickly about, for clarifications. what for expectation OpEx, flatten quarter expectation dive bit get maybe year good the in recap out the start you us the is then net second want could afternoon. in litigation this couple the to But quarter? like sounds a and questions. talk you the could

Yeah, Thanks Scott, the question. this is Cary. for

versus what than highlighted thought built happen we was when early I court in it the higher So deliverables thought would the a bit And because timing the litigation I in to guide. just was quarter. related got remarks in of had we that spend my pulled the million prepared little $X.X

spend adjusting in acquisition. incremental our with OpEx Voyantic think the quarter, about you the adjusting for As quarter, for second OpEx the associated the for legal

We expect OpEx quarter. decline to in the second

the our first fourth below timeline second for I put the OpEx. the year, quarter run legal on you can’t will into half expense. expect third to continue of spend that updating that you And a on the half quarter the to then follows and if the path factors rate look but of courts, I be we how

you it. margin to do for just spend, business. It suggest the back legal an first related spend If would were the just math the straight our litigation quarter from operating and out the legal XX% on

a I Helpful. follow-up in do And do? to does to just around acquisition, if welcomed the if expect a you. per the Are opportunity on other to kind do? revenue what you’re could Got customer basis of into on in them? Or employees, terms and/or is that’s bit what of that this number dipping inlay your your partners little it some metrics by toe you that what there of something

it could, I into applications opportunity, the and you be if else showing I’m cases? X favorable diversifications with use But, the other sounds industries, this Phase systems for year. rollout half second is that going projects, system if of on lastly, to pipeline wondering, the could like certainly address Thanks. new side in how And the is pipeline up

Okay.

question. in will and lot take So it Chris I’ll the to Scott, a thanks. There’s impact with… that I hand financial Voyantic

Jeff a bit pipeline. I the mean about have a little probably Scott, talk

Okay. All right.

think the it’s tuck-in about So a way to Voyantic, deal. small

be margin revenue at this revenue high but have a hopes will be will that accretive. gross it’s systems in the reported our from it, It It line. to small is We point. grow

So think business. of the end it top our of systems at

grows. expect bit revenue it little a that we’ll lift of So a line from as

speak in by and systems remains both building bit the just systems a pipeline. its diversity I’ll Jeff, is is industry strong The sector to pipeline little and this Scott, geographic.

retail, in in supply and opportunity of our of prevention lots focus related shopper and Chris still from supply noted, small enhancing in In way industry there’s checkout the self the area and the sectors, increasing role via on freight all and experience focus as in important logistics. chain package. that chain and So and logistics experience interest of shopper supporting loss the to retail

that the visibility visibility to I’m the supply logistics provides for and clear customers. embracing new new RAIN premium offerings chain those and for plans That and supply logistics chain improve and streams leaders. industry It’s is excited those the about to revenue opportunity RFID

script, was authenticity. by the of respect And then, as the encouraged in with noted pipeline also the progress to Impinj I’m

to and leading and partner And seeing trajectory approach I another creates growth our We’re differentiated Impinj. ecosystem authenticity. the unique think for embrace that enterprises

opportunities protect emerging high optimizing investigating brands supply food to in organizations traceability, and industry consumers. safety proteins. like freshness, Pharmaceutical particular and seeing waste, food reducing elements chain in in value of We’re the traceability are

And you sustainability have the that then circular say sort real transport And becoming and of really of into I everything us which opportunities you visibility and economy begin growth everything in at for you sell. the value chain, that when increasingly are key foundation inventory delivers the manufacture, to your about that can initiatives. would finally, is knowing visibility, optimize supply sustainability

particular you’re circular upon the to each know then And about into for its able more economy when item return the economy recycling reuse. or

geographies. bullish and about and across opportunity I sectors very growing industry optimistic remain So the

you. Thank Great.

Scott. Thanks,

Scott. you, Thank

The follow-up Please go Jim from Needham is ahead. with & Ricchiuti next a question Company.

you. thank Hi,

on trajectory think about you’ll and how the Day. of we the think there area you Investor assume, this, should pipeline, I at I I’m on time the the business? growth spend line prospects wondering spend June of may endpoint the for appreciate But time in this growth the out business the sight, systems we the IC in some

Yeah.

side, we to Jim, ones. speak So, the on opportunities, system the of specific which the obviously have pipeline we

and Asia-based North chain visionary the example, customer. American European global supply large For retailer, the second logistics retailer, the

back our authenticity, just driving We’re the and ICs our at new service also our end. Impinj which uses that opportunities, platform mentioned, around whole reader a as offering readers, cloud is Jeff

that we retail, of our that use other the of course, everything systems strength use see to have partners spoke in fixed chain I from for in opportunity about we cases prepared logistics. my driving in opportunities so, And materials those And pipeline that remarks. then specifically reading, myriad bookstore all verticals, kinds and building authentication, supply

demand look hope see, offering. ahead our systems make solutions question. a ICs strong we’re about platform for full and and that I by to answered pull look So offerings look our we your very endpoint to delivering opportunities the complete to excited to which systems provide

this of as some business? know, has the been double-digit think because growth It should these does. as business, It’s been somewhat lumpy, But customers. of a we we of this Chris, of deployment lumpy

Jim, because this on of put growth this is lumpiness business. Cary. a It’s hard of the it to like percentage that

has reader QX, to growth quarters, been We been our to backlog been able haven’t Now, depressed anticipate get entering pretty last with unable in substantial support. the because we’ve that several just exiting supply. QX we

be to We expect first second systems half half. business than greater

So we’ll year. the in of the grow half certainly second

platform will I for path, it that’s as when new endpoint better endpoint that and of And enable enables in available only volume think think new we endpoint to business IC the systems features readers it Impinj, we’re volume. with is functionality IC solution combined down continue push our our the way because ICs. unlocking the to

we going think the how opportunity that’s So systems forward. of

you. Thank it. Got

Thank you, Jim.

concludes question-and-answer conference any to closing I the to and Diorio, Chris like remarks. our Co-Founder over turn back session. CEO, This would for

are Thank the joining well. you, for And I your all operator. call safe I’d like to hope thank much. remain ones and today. you loved you and you and very Thank

you today’s has The Thank now conference for attending concluded. presentation.

now may disconnect. You