Impinj (PI) 10-Q 26 Apr 23 2023 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2023	Apr. 14, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Entity Registrant Name	IMPINJ, INC.
Entity Central Index Key	0001114995
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Incorporation, State or Country Code	DE
Entity Common Stock Shares Outstanding		26,650,912
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Document Transition Report	false
Document Quarterly Report	true
Trading Symbol	PI
Entity Address, State or Province	WA
Entity File Number	001-37824
Entity Tax Identification Number	91-2041398
Entity Address, Address Line One	400 Fairview Avenue North
Entity Address, Address Line Two	Suite 1200
Entity Address, City or Town	Seattle
Entity Address, Postal Zip Code	98109
City Area Code	206
Local Phone Number	517-5300
Title of 12(b) Security	Common Stock, par value $0.001 per share
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 37,483	$ 19,597
Short-term investments	117,061	154,148
Accounts receivable, net	60,966	49,996
Inventory	85,809	46,397
Prepaid expenses and other current assets	3,835	5,032
Total current assets	305,154	275,170
Long-term investments	10,177	19,200
Property and equipment, net	41,800	39,027
Operating lease right-of-use assets	9,795	10,490
Other non-current assets	1,844	1,969
Goodwill	3,881	3,881
Total assets	372,651	349,737
Current liabilities:
Accounts payable	36,713	25,024
Accrued compensation and employee related benefits	7,042	9,048
Accrued and other current liabilities	7,381	2,925
Current portion of operating lease liabilities	2,966	3,122
Current portion of deferred revenue	502	2,250
Total current liabilities	54,604	42,369
Long-term debt	280,644	280,244
Operating lease liabilities, net of current portion	10,331	11,066
Other long-term liabilities	134	118
Deferred revenue, net of current portion	317	349
Total liabilities	346,030	334,146
Commitments and contingencies (Note 5)
Stockholders' equity:
Preferred stock, $0.001 par value - 5,000 shares authorized, no shares issued and outstanding at March 31, 2023 and December 31, 2022
Common stock, $0.001 par value - 495,000 shares authorized, 26,581 and 26,098 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively	27	26
Additional paid-in capital	418,342	403,599
Accumulated other comprehensive loss	(605)	(1,249)
Accumulated deficit	(391,143)	(386,785)
Total stockholders' equity	26,621	15,591
Total liabilities and stockholders' equity	$ 372,651	$ 349,737

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	495,000,000	495,000,000
Common stock, shares issued	26,581,000	26,098,000
Common stock, shares outstanding	26,581,000	26,098,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Revenue	$ 85,897	$ 53,144
Cost of revenue	42,367	24,365
Gross profit	43,530	28,779
Operating expenses:
Research and development	22,435	17,989
Sales and marketing	9,973	9,299
General and administrative	15,564	10,806
Total operating expenses	47,972	38,094
Loss from operations	(4,442)	(9,315)
Other income, net	1,365	164
Interest expense	(1,209)	(1,261)
Loss before income taxes	(4,286)	(10,412)
Income tax expense	(72)	(49)
Net loss	$ (4,358)	$ (10,461)
Net loss per share basic	$ (0.17)	$ (0.42)
Net loss per share diluted	$ (0.17)	$ (0.42)
Weighted-average shares outstanding basic	26,285	24,980
Weighted-average shares outstanding diluted	26,285	24,980

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net loss	$ (4,358)	$ (10,461)
Other comprehensive gain (loss), net of tax:
Unrealized gain (loss) on investments	644	(677)
Total other comprehensive gain (loss)	644	(677)
Comprehensive loss	$ (3,714)	$ (11,138)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating activities:
Net loss	$ (4,358)	$ (10,461)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	1,793	1,508
Stock-based compensation	10,224	11,314
Accretion of discount or amortization of premium on investments	(766)	301
Amortization of debt issuance costs	400	403
Changes in operating assets and liabilities:
Accounts receivable	(10,970)	(3,084)
Inventory	(39,412)	(9,603)
Prepaid expenses and other assets	1,389	(2,142)
Accounts payable	14,650	(2,768)
Accrued compensation and employee related benefits	(2,006)	(1,775)
Accrued and other liabilities	4,472	1,242
Operating lease right-of-use assets	695	804
Operating lease liabilities	(891)	(1,008)
Deferred revenue	(1,780)	433
Net cash used in operating activities	(26,560)	(14,836)
Investing activities:
Purchases of investments		(67,085)
Proceeds from sales of investments	13,372
Proceeds from maturities of investments	34,136	20,000
Purchases of property and equipment	(7,582)	(3,050)
Net cash provided by (used in) investing activities	39,926	(50,135)
Financing activities:
Proceeds from exercise of stock options and employee stock purchase plan	4,520	4,611
Net cash provided by financing activities	4,520	4,611
Net increase (decrease) in cash and cash equivalents	17,886	(60,360)
Cash and cash equivalents
Beginning of period	19,597	123,903
End of period	37,483	63,543
Supplemental disclosure of cashflow information:
Purchases of property and equipment not yet paid	$ 3,284	$ 508

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In-Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (loss)
Beginning balance at Dec. 31, 2021	$ (11,076)	$ 25	$ 351,422	$ (362,484)	$ (39)
Beginning balance, shares at Dec. 31, 2021		24,737
Issuance of common stock	4,611		4,611
Issuance of common stock, shares		483
Stock-based compensation	11,314		11,314
Net loss	(10,461)			(10,461)
Other comprehensive loss	(677)				(677)
Ending balance at Mar. 31, 2022	(6,289)	$ 25	367,347	(372,945)	(716)
Ending balance, shares at Mar. 31, 2022		25,220
Beginning balance at Dec. 31, 2022	15,591	$ 26	403,599	(386,785)	(1,249)
Beginning balance, shares at Dec. 31, 2022		26,098
Issuance of common stock	4,520	$ 1	4,519
Issuance of common stock, shares		483
Stock-based compensation	10,224		10,224
Net loss	(4,358)			(4,358)
Other comprehensive loss	644				644
Ending balance at Mar. 31, 2023	$ 26,621	$ 27	$ 418,342	$ (391,143)	$ (605)
Ending balance, shares at Mar. 31, 2023		26,581

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1. Summary of Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements include Impinj, Inc. and its wholly owned subsidiaries. We have eliminated intercompany balances and transactions in consolidation. We have prepared these condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles, or GAAP, and applicable rules and regulations of the Securities and Exchange Commission, or SEC, regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes as of and for the year ended December 31, 2022 included in Impinj, Inc.’s Annual Report on Form 10-K, which was filed with the SEC on February 13, 2023. We have reclassified certain amounts on our consolidated statement of cash flows in the prior period to conform to current period presentation. The unaudited condensed consolidated interim financial statements, in the opinion of management, reflect all adjustments, comprising normal recurring adjustments, necessary to state fairly our financial position, results of operations and our cash flows for the periods presented. Interim results are not necessarily indicative of the results for a full year or for any other future period. Use of Estimates Preparing financial statements in conformity with GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and related disclosures as of the date of the financial statements, as well as the reported revenue and expenses during the periods presented. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, sales incentives, percentage completion of development contracts, inventory excess and obsolescence, income taxes and fair value of stock awards. To the extent there are material differences between our estimates, judgments, or assumptions and actual results, our financial statements will be affected. Recently Adopted Accounting Standards In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. Under ASU 2021-08, an acquirer must recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. The guidance is effective for interim and annual periods beginning after December 15, 2022, with early adoption permitted. The impact of adoption of this standard on our consolidated financial statements, including accounting policies and processes, is not expected to be material. Recently Issued Accounting Standards Not Yet Adopted Recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the SEC did not have, or are not expected to have, a material impact on our present or future consolidated financial statements.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 2. Fair Value Measurements Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The standards also establish a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Assets and liabilities valued based on observable market data for similar instruments, such as quoted prices for similar assets or liabilities. • Level 3 — Unobservable inputs that are supported by little or no market activity; instruments valued based on the best available data, some of which is internally developed, and considers risk premiums that a market participant would require. We applied the following methods and assumptions in estimating our fair value measurements: Cash Equivalents — Cash equivalents comprise highly liquid investments, including money market funds with original maturities of less than three months at the acquisition date. We record the fair value measurement of these assets based on quoted market prices in active markets. Investments — Our investments comprise fixed income securities, which include U.S. government agency securities, corporate notes and bonds, commercial paper, treasury bills and asset-backed securities. The fair value measurement of these assets is based on observable market-based inputs or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Long-term Debt — See Note 6 for the carrying amount and estimated fair value of the Notes. The following table presents the balances of assets measured at fair value on a recurring basis, by level within the fair value hierarchy, as of the dates presented (in thousands): March 31, 2023 December 31, 2022 Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents: Money market funds $ 4,732 $ — $ 4,732 $ 14,620 $ — $ 14,620 Total cash equivalents 4,732 — 4,732 14,620 — 14,620 Short-term investments: U.S. government agency securities — 59,142 59,142 — 78,621 78,621 Corporate notes and bonds — 22,622 22,622 — 26,953 26,953 Commercial paper — 18,822 18,822 — 24,073 24,073 Treasury bill — — — — 11,359 11,359 Yankee bonds — 1,957 1,957 — 1,939 1,939 Agency bonds — 5,904 5,904 — 2,882 2,882 Asset-backed securities — 8,614 8,614 — 8,321 8,321 Total short-term investments — 117,061 117,061 — 154,148 154,148 Long-term investments: U.S. government agency securities — 8,286 8,286 — 13,462 13,462 Yankee bonds — 1,891 1,891 — 1,869 1,869 Agency bonds — — — — 2,983 2,983 Asset-backed securities — — — — 886 886 Total long-term investments — 10,177 10,177 — 19,200 19,200 Total $ 4,732 $ 127,238 $ 131,970 $ 14,620 $ 173,348 $ 187,968 We did no t have any Level 3 assets nor did we measure any liabilities at fair value as of March 31, 2023 or December 31, 2022 . We expect short-term investments to mature within 1 year of the reporting date. We expect long-term investments to mature between 1 and 2 years from the reporting date. See Note 6 for the carrying amount and estimated fair value of our convertible senior notes due 2027 . The following tables present the cost or amortized cost, gross unrealized gains, gross unrealized losses and total estimated fair value of our financial assets as of the dates presented (in thousands): March 31, 2023 Cost or Gross Gross Total Estimated Amortized Cost Unrealized Gains Unrealized Losses Fair Value Description: Money market funds $ 4,732 $ — $ — $ 4,732 U.S. government agency securities 67,941 3 ( 516 ) 67,428 Corporate notes and bonds 22,665 13 ( 56 ) 22,622 Yankee bonds 3,856 — ( 8 ) 3,848 Commercial paper 18,822 — — 18,822 Agency bond 5,899 5 — 5,904 Asset-backed securities 8,659 1 ( 46 ) 8,614 Total $ 132,574 $ 22 $ ( 626 ) $ 131,970 December 31, 2022 Cost or Gross Gross Total Estimated Amortized Cost Unrealized Gains Unrealized Losses Fair Value Description: Money market funds $ 14,620 $ — $ — $ 14,620 U.S. government agency securities 93,065 — ( 982 ) 92,083 Corporate notes and bonds 27,133 6 ( 186 ) 26,953 Yankee bonds 3,815 — ( 7 ) 3,808 Commercial paper 24,073 — — 24,073 Treasury bill 11,361 2 ( 4 ) 11,359 Agency bond 5,863 4 ( 2 ) 5,865 Asset-backed securities 9,287 2 ( 82 ) 9,207 Total $ 189,217 $ 14 $ ( 1,263 ) $ 187,968 Marketable securities in a continuous loss position for less than 12 months had an estimated fair value of $ 62.5 million and $ 125.6 million and unrealized losses of $ 0.4 million and $ 1.2 million as of March 31, 2023 and December 31, 2022, respectively. Marketable securities in a continuous loss position for greater than 12 months had an estimated fair value of $ 29.9 million and $ 13.9 million and unrealized losses of $ 0.3 million and $ 0.1 million as of March 31, 2023 and December 31, 2022, respectively. Unrealized losses from our fixed-income securities are primarily attributable to changes in interest rates and not to lower credit ratings of the issuers. In determining whether an unrealized loss is other-than-temporary, for the periods presented, we determined we do not have plans to sell the securities nor is it more likely than not that we would be required to sell the securities before their anticipated recovery.

Inventory

Inventory	3 Months Ended
	Mar. 31, 2023
Inventory Disclosure [Abstract]
Inventory	N ote 3. Inventory The following table presents the detail of inventories as of the dates presented (in thousands): March 31, 2023 December 31, 2022 Raw materials $ 34,990 $ 14,678 Work-in-process 21,182 14,525 Finished goods 29,637 17,194 Total inventory $ 85,809 $ 46,397

Stock-Based Awards

Stock-Based Awards	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Stock-Based Awards	Note 4. Stock-Based Awards Restricted Stock Units We grant restricted stock units, or RSUs, with a service condition, and RSUs with market and service conditions, or MSUs. Historically we granted RSUs with performance and service conditions, or PSUs, as part of our annual bonus plan to our senior executives and other bonus-eligible employees, however, in fiscal year 2023, our bonus plan is solely cash-based The following table summarizes activity for RSUs, PSUs and MSUs for the three months ended March 31, 2023 (in thousands): Number of Underlying Shares RSUs MSUs PSUs Outstanding at December 31, 2022 1,310 110 74 Granted 301 126 — Vested ( 232 ) ( 58 ) ( 57 ) Forfeited ( 6 ) — ( 17 ) Outstanding at March 31, 2023 1,373 178 — Stock-Based Compensation Expense The following table presents the detail of stock-based compensation expense amounts included in our condensed consolidated statements of operations for the periods presented (in thousands): Three Months Ended March 31, 2023 2022 Cost of revenue $ 417 $ 599 Research and development expense 4,569 4,775 Sales and marketing expense 2,139 2,752 General and administrative expense 3,099 3,188 Total stock-based compensation expense $ 10,224 $ 11,314

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 5. Commitments and Contingencies For information on our commitments and contingencies, see Part II, Item 8 (Financial Statements and Supplementary Data, Note 11. Commitments and Contingencies) of our Annual Report on Form 10-K for the year ended December 31, 2022. There have been no material changes to our commitments and contingencies, outside of the ordinary course of our business, as previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022, except for “Obligations with Third-Parties” and “Litigation” as discussed below. Obligations with Third Parties We manufacture products with third-party manufacturers. We are committed to purchase $ 56.0 million of inventory as of March 31, 2023. Litigation From time to time, we are subject to various legal proceedings or claims that arise in the ordinary course of business. We accrue a liability when management believes that it is both probable that we have incurred a liability and we can reasonably estimate the amount of loss. As of March 31, 2023 and December 31, 2022 , we did no t have accrued contingency liabilities. The following is a description of our significant legal proceedings. Although we believe that resolving these claims, individually or in aggregate, will not have a material adverse impact on our financial statements, these matters are subject to inherent uncertainties. Patent Infringement Claims and Counterclaims Impinj Patent Infringement Claims Against NXP in California On June 6, 2019, we filed a patent infringement lawsuit against NXP USA, Inc., a Delaware corporation and subsidiary of NXP Semiconductors N.V., or NXP, in the U.S. District Court for the Northern District of California, or the Court. Our original complaint alleged that certain NXP endpoint ICs infringe 26 of our U.S. patents. At the order of the Court, we filed an amended complaint limited to eight of the original 26 patents. We subsequently elected to go forward with asserting infringement of six of those eight patents. We are seeking, among other things, past damages, including lost profits; no less than a reasonable royalty; enhanced damages for willful infringement; and reasonable attorneys’ fees and costs. We are also seeking an injunction against NXP making, selling, using, offering for sale or importing UCODE 8 and UCODE 9 ICs. NXP responded to our complaint on September 30, 2019 citing numerous defenses including denying infringement and claiming our asserted patents are invalid. In February 2020, NXP filed petitions for inter partes review, or IPRs, with the Patent Trial and Appeal Board for the U.S. Patent and Trademark Office, or PTAB, against 12 of the originally asserted 26 patents, including the six patents asserted in the amended complaint. In August and September of 2020, the PTAB declined to institute review of four of the six asserted patents. On October 27, 2020, we filed a second amended complaint removing without prejudice the two of the six patents against which the PTAB instituted IPRs, leaving four patents in suit. On September 24, 2020, the Court lifted a stay on two of the four patents in suit, and on July 23, 2021, the Court held a claim construction hearing for eight disputed claim terms in those two patents. On September 16, 2021, the Court issued a claim construction rejecting NXP’s positions and adopting most of Impinj’s positions relating to those disputed claim terms. On September 3, 2021, the Court lifted the stay on the other two of the four patents in suit and scheduled a claim construction hearing for those two patents on March 4, 2022, issuing a claim construction order on those patents on March 21, 2022. Discovery has now closed and the parties have both filed various motions for summary judgment. Trial is scheduled to begin on July 6, 2023. NXP Patent Infringement Claims Against Impinj in Washington On October 4, 2019, NXP USA, Inc. and NXP filed a patent infringement lawsuit against us in the U.S. District Court for the District of Delaware. The complaint alleged that certain of our products infringe eight U.S. patents owned by NXP or NXP USA, Inc. The plaintiffs are seeking, among other things, past damages adequate to compensate them for our alleged infringement of each of the patents-in-suit and reasonable attorneys’ fees and costs. They are also seeking an injunction against us, enjoining continuing acts of infringement of the patents-in-suit. We have denied we are infringing any of the patents and we have asserted both that our wafer supplier is licensed under four of them and that all eight are invalid. On September 23, 2020, the District of Delaware granted Impinj’s motion to transfer the case to the U.S. District Court for the Western District of Washington in Seattle. On December 11, 2020, we moved to stay the case with respect to six of the eight patents in suit pending final resolution of IPR petitions we filed with the PTAB. On February 12, 2021, the Court granted our motion to stay the case as to these six patents. The PTAB instituted IPRs on two of the six challenged patents but denied them on the other four . The Court subsequently removed the stay on the four against which IPRs were not instituted. On March 9, 2021, we moved for summary judgment of noninfringement on the four patents to which we assert a license exists, including two patents that were not subject to a stay. On July 28, 2021, the Court deferred ruling on our motion for summary judgment pending further discovery. On September 17, 2021, the Court struck all scheduled dates for the case pending reassignment to a new judge. After the case was reassigned, the Court addressed both claim construction and our motion for summary judgment, issuing a claim construction order and granting our motion for summary judgment on the license defense on November 4, 2022, thus narrowing the case to three patents. Following the close of fact discovery, the parties each moved for summary judgment on various issues. On March 10, 2023, the Court granted our motion for summary judgment of noninfringement on one of the three remaining patents, thus narrowing the case to two remaining patents, and modified its claim constructions on certain terms of those two remaining patents. The court also granted us leave to file new summary judgment motions on those two remaining patents by order dated March 29, 2023. The Patent Office instituted a re-examination against one of the two remaining patents but has not yet issued an office action. Trial is scheduled to begin on June 5, 2023. Impinj Patent Infringement Claims Against NXP in Texas On May 25, 2021, we filed a new patent infringement lawsuit against NXP USA in the United States District Court for the Western District of Texas (Waco), asserting that NXP has infringed nine of our patents, including seven that we originally asserted in the Northern California case. The Court later granted our motion to amend to add two new NXP entities as defendants—NXP Semiconductor Netherlands B.V. and NXP B.V. Those defendants have moved to dismiss for lack of personal jurisdiction and that motion is pending. We are seeking among other things, past damages, including lost profits; no less than a reasonable royalty; enhanced damages for willful infringement; and reasonable attorney’s fees and costs. We are also seeking an injunction against NXP making, selling, using, offering for sale or importing its UCODE 7, 8 and 9 endpoint ICs. On July 26, 2021, NXP filed an answer to our complaint and counterclaimed that we infringe nine patents, one of which NXP owns and eight of which NXP recently licensed from a third party. NXP has denied infringement, asserted our patents are invalid and asserted that some are unenforceable and/or subject to a license under our commitments to license “necessary” patents to certain standards. A claim construction hearing was held on February 10, 2022 and fact discovery has closed. The Patent Office has instituted reexamination proceedings on five of the nine patents asserted by NXP and has issued a final office action rejecting all asserted claims on three of those patents. We have moved to stay NXP’s claims on those three patents subject to re-examination. The Patent Office has issued an office action on a fourth patent finding certain of the asserted claims invalid and narrowly construing the remainder. Trial is scheduled to begin on September 25, 2023. NXP Patent Infringement Claims Against Impinj in China On December 7, 2020, Impinj Radio Frequency Technology (Shanghai) Co., Ltd., or Impinj Shanghai, was served with patent infringement lawsuits filed in the Intellectual Property Court in Shanghai, China, or Shanghai Intellectual Property Court, in which NXP B.V. asserted that certain of our products infringe three Chinese patents owned by NXP B.V., that closely correspond to three of the eight U.S. patents NXP asserted in the U.S. District Court described above. The plaintiffs are seeking, among other things, past damages and reasonable attorneys’ fees and costs. They are also seeking an injunction against us, enjoining continuing acts of infringement of the patents-in-suit. Impinj Shanghai objected to the jurisdiction of the Shanghai Intellectual Property Court and filed a motion to stay the proceedings. The jurisdictional challenge was rejected by the Shanghai court in March 2021; a subsequent appeal filed by Impinj Shanghai was denied before the IP Tribunal of the Supreme People’s Court in third-quarter 2021. Impinj, Inc. was formally served in July 2021, officially adding Impinj, Inc. to the suit. On December 22, 2022, Impinj Shanghai filed invalidity requests against all three Chinese patents before the China National Intellectual Property Administration, or CNIPA. In July 2021, the CNIPA issued decisions upholding the validity of all three Chinese patents. In October 2021, Impinj Shanghai filed for judicial review of all the CNIPA decisions by the Beijing Intellectual Property Court, which has docketed its review for all three patents. In December 2022, the Beijing Intellectual Property Court issued the first-instance administrative judgment, upholding the invalidity decision for one of the three Chinese patents. On January 11, 2023, Impinj Shanghai filed a subsequent appeal to the IP Tribunal of the Supreme People’s Court, which is pending. For the remaining two Chinese patent cases, the Beijing Intellectual Property Court has not yet set the trial date. In May 2022, the Shanghai court held a hearing for all three patents, but the panel did not address the merits of any case in the hearing. In November 2022, we filed with the Shanghai court motions to dismiss two patent cases to which we assert a license defense (parallel to our arguments in Washington). Decisions on the motions are pending. In January 2023, the Shanghai Intellectual Property Court held a supplemental evidentiary hearing to review the admissions of evidence, but the panel did not address the merits of any case in that hearing. For the two Chinese patents for which we argue a license defense, the Shanghai court has requested NXP to withdraw in view of the existing wafer supplier license and the favorable summary judgment regarding the corresponding U.S. Patents in the Western District of Washington. For the third Chinese patent, the Shanghai court has not yet set a date for any further hearings while the completion of its technical evaluation remains pending.

Long-term Debt

Long-term Debt	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Long-term Debt	Note 6. Long-term debt Convertible Senior Notes In November 2021, we issued $ 287.5 million aggregate principal amount of convertible promissory notes due May 15, 2027 (the “2021 Notes”). The following table presents the outstanding principal amount and carrying value of the 2021 Notes as of the dates indicated (in thousands): March 31, 2023 December 31, 2022 Principal Amount Unamortized debt issuance costs Net Carrying Amount Principal Amount Unamortized debt issuance costs Net Carrying Amount 2021 Notes $ 287,500 $ ( 6,856 ) $ 280,644 $ 287,500 $ ( 7,256 ) $ 280,244 Further details of the Notes are as follows: Issuance Maturity Date Interest Rate First Interest Payment Date Effective Interest Rate Semi-Annual Interest Payment Dates Initial Conversion Rate per $1,000 Principal Initial Conversion Price Number of Shares (in millions) 2021 Notes May 15, 2027 1.125 % May 15, 2022 1.72 % May 15; November 15 9.0061 $ 111.04 2.6 The 2021 Notes are senior unsecured obligations, do not contain any financial covenants and are governed by indentures (the Indentures). The total net proceeds from the 2021 Notes, after deducting initial debt issuance costs, fees and expenses, was $ 278.4 million. We used approximately $ 183.6 million of the 2021 Notes net proceeds, excluding accrued intere st, to repurchase approximately $ 76.4 million aggregate principal amount of the 2019 Notes through individual privately negotiated transactions concurrent with us offering the 2021 Notes. We used approximately $ 17.6 million, excluding accrued interest, to repurchase the remaining $ 9.85 million aggregate principal amount of the 2019 Notes in June 2022. We w ill use the remainder of the net proceeds from the 2021 Notes for general corporate purposes. Terms of the 2021 Notes The Notes holders may convert their respective Notes at their option at any time prior to the close of business on the business day immediately preceding the respective conversion dates under the following circumstances: • during any fiscal quarter commencing after the fiscal quarter ending on March 31, 2022 (and only during such fiscal quarter), if the last reported sale price of our common stock, for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130 % of the conversion price on each applicable trading day; • during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the Notes for each trading day was less than 98 % of the product of the last reported sale price of our common stock and the conversion rate on each such trading day; • prior to the close of business on the second scheduled trading day immediately preceding the redemption date if we call the Notes for redemption; or • upon the occurrence of specified corporate events, as described in the indenture. None of the circumstances described in the paragraphs above were met during the three months ended March 31, 2023. Regardless of the foregoing circumstances, holders may convert all or any portion of the Notes, in increments of $1,000 principal amount, on or after February 15, 2027, until the close of business on the second scheduled trading day immediately preceding the maturity date. We may redeem all or a portion of the Notes for cash, at our option, on or after November 20, 2024, if the last reported sale price of our common stock has been at least 130 % of the conversion price at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period at a redemption price equal to 100% of the principal amount of the Notes being redeemed, plus any accrued and unpaid interest to, but excluding, the redemption date. Notes holders who convert their Notes in connection with certain corporate events that constitute a make-whole fundamental change (as defined in the indenture) are, under certain circumstances, entitled to an increase in the conversion rate. Additionally in the event of a corporate event constituting a fundamental change (as defined in the indenture), Notes holders may require us to repurchase all or a portion of their Notes at a repurchase price equal to 100 % of the principal amount of the Notes being repurchased, plus any accrued and unpaid interest to, but excluding, the repurchase date. Interest expense related to the Notes was as follows (in thousands): Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 2021 Notes 2019 Notes 2021 Notes Total Amortization of debt issuance costs $ 400 $ 10 $ 393 $ 403 Cash interest expense 809 49 809 858 Total interest expense $ 1,209 $ 59 $ 1,202 $ 1,261 Accrued interest related to the 2021 Notes as of March 31, 2023 and December 31, 2022 was $ 1.2 million and $ 404,000 , respectively . We record accrued interest in accrued liabilities in our consolidated balance sheet. We estimate the fair value of the 2021 Notes to be $ 408.1 million and $ 347.4 million as of March 31, 2023 and December 31, 2022, respectively, which we determined through consideration of quoted market prices. The fair value for the Notes is classified as Level 2, as defined in Note 2. Capped Calls In connection with us issuing Convertible Notes in 2019, or the 2019 Notes, we entered into privately negotiated capped-call transactions with certain financial counterparties. The capped call transactions are generally designed to reduce the potential dilution to our common stock upon any conversion or settlement of the Convertible Notes, or to offset any cash payments we are required to make in excess of the principal amount upon conversion of the Convertible Notes, as the case may be, with the reduction or offset subject to a cap based on the cap price. If, however, the market price per share of our common stock exceeds the cap price of the capped-call transactions, then our stock would experience some dilution and/or the capped call would not fully offset the potential cash payments, in each case, to the extent then-market price per share of our common stock exceeds the cap price. The capped call remains outstanding even though we have repurchased the 2019 Notes. The initial cap price of the capped call transactions is $ 54.20 per share, subject to certain adjustments under the terms of the capped call transactions. The capped call transactions expire over 40 consecutive scheduled trading days ending on December 11, 2026 . The capped call transactions meet the criteria for classification in equity, are not accounted for as derivatives and are not remeasured each reporting period.

Net Loss Per Share

Net Loss Per Share	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Net Loss Per Share	Note 7. Net Loss Per Share For the periods presented, the following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net loss per share (in thousands, except per share amounts): Three Months Ended March 31, 2023 2022 Numerator: Net loss $ ( 4,358 ) $ ( 10,461 ) Denominator: Weighted-average shares outstanding — basic and diluted 26,285 24,980 Net loss per share — basic and diluted $ ( 0.17 ) $ ( 0.42 ) The following table presents the outstanding shares of our common stock equivalents excluded from the computation of diluted net loss per share as of the dates presented because their effect would have been antidilutive (in thousands): Three Months Ended March 31, 2023 2022 Stock options 1,600 2,167 RSUs, MSUs and PSUs 1,551 1,900 Employee stock purchase plan shares 16 27 2019 Notes — 285 2021 Notes 2,589 2,589

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Segment Information	Note 8. Segment Information We have one reportable and operating segment: the development and sale of our RAIN products and services. We identified our operating segment based on how our chief operating decision-maker manages our business, makes operating decisions and evaluates our operating performance. Our chief executive officer acts as the chief operating decision-maker and reviews financial and operational information on an entity-wide basis. We have one business activity and there are no segment managers who are held accountable for operations, operating results or plans for levels or components. Accordingly, we have determined that we have a single reportable and operating segment. Our chief executive officer reviews information about our revenue categories, endpoint ICs and systems, the latter defined as reader ICs, readers, gateways, software and cloud services. The following table presents our revenue categories for the indicated periods (in thousands): Three Months Ended March 31, 2023 2022 Endpoint ICs $ 67,049 $ 38,795 Systems 18,848 14,349 Total revenue $ 85,897 $ 53,144

Deferred Revenue

Deferred Revenue	3 Months Ended
	Mar. 31, 2023
Deferred Revenue Disclosure [Abstract]
Deferred Revenue	N ote 9. Deferred Revenue Deferred revenue, comprising individually immaterial amounts for extended warranty, enhanced product maintenance and advance payments on non-recurring engineering ("NRE") services contracts, represents contracted revenue that has not yet been recognized. We recognized $ 1.8 million of revenue related to amounts included in deferred revenue as of December 31, 2022 for the three months ended March 31, 2023 . We recognized $ 139,000 of revenue related to amounts included in deferred revenue as of December 31, 2021 for the three months ended March 31, 2022. The following table presents the changes in deferred revenue for the indicated periods (in thousands): Three Months Ended March 31, 2023 2022 Balance at beginning of period $ 2,599 $ 794 Deferral of revenue 29 572 Recognition of deferred revenue ( 1,809 ) ( 139 ) Balance at end of period $ 819 $ 1,227

Related-Party Transactions

Related-Party Transactions	3 Months Ended
	Mar. 31, 2023
Related Party Transactions [Abstract]
Related-Party Transactions	Note 10. Related-Party Transactions We have been party to a consulting agreement with a limited liability company owned by Cathal Phelan, a member of our board of directors, pursuant to which Mr. Phelan provided advisory and consulting services to us. We recognized and paid $ 135,000 in c onsulting fees to the limited liability company owned by Mr. Phelan for the three months ended March 31, 2022. On January 1, 2023, Mr. Phelan joined our company as Chief Innovation Officer and ceased to provide us with consulting services. Mr. Phelan remains on our board of directors as a non-independent director.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2023
Subsequent Events [Abstract]
Subsequent Events	Note 11. Subsequent Events On April 3, 2023, we acquired all of the outstanding equity of Voyantic Oy, a global provider of RFID (primarily RAIN and NFC) inlay and label design, manufacturing and test systems, for an aggregate purchase price of 25.0 million euros or $ 27.1 million, subject to net debt and working capital adjustments. The consideration comprised 26,963 shares of our common stock, valued at $ 3.6 million as of April 3, 2023, for purposes of the acquisition, and the remainder in cash. The purchase accounting for this acquisition is in progress.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements include Impinj, Inc. and its wholly owned subsidiaries. We have eliminated intercompany balances and transactions in consolidation. We have prepared these condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles, or GAAP, and applicable rules and regulations of the Securities and Exchange Commission, or SEC, regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes as of and for the year ended December 31, 2022 included in Impinj, Inc.’s Annual Report on Form 10-K, which was filed with the SEC on February 13, 2023. We have reclassified certain amounts on our consolidated statement of cash flows in the prior period to conform to current period presentation. The unaudited condensed consolidated interim financial statements, in the opinion of management, reflect all adjustments, comprising normal recurring adjustments, necessary to state fairly our financial position, results of operations and our cash flows for the periods presented. Interim results are not necessarily indicative of the results for a full year or for any other future period.
Use of Estimates	Use of Estimates Preparing financial statements in conformity with GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and related disclosures as of the date of the financial statements, as well as the reported revenue and expenses during the periods presented. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, sales incentives, percentage completion of development contracts, inventory excess and obsolescence, income taxes and fair value of stock awards. To the extent there are material differences between our estimates, judgments, or assumptions and actual results, our financial statements will be affected.
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. Under ASU 2021-08, an acquirer must recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. The guidance is effective for interim and annual periods beginning after December 15, 2022, with early adoption permitted. The impact of adoption of this standard on our consolidated financial statements, including accounting policies and processes, is not expected to be material.
Recently Issued Accounting Standards Not Yet Adopted	Recently Issued Accounting Standards Not Yet Adopted Recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the SEC did not have, or are not expected to have, a material impact on our present or future consolidated financial statements.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Summary of Assets Measured at Fair Value on Recurring Basis	The following table presents the balances of assets measured at fair value on a recurring basis, by level within the fair value hierarchy, as of the dates presented (in thousands): March 31, 2023 December 31, 2022 Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents: Money market funds $ 4,732 $ — $ 4,732 $ 14,620 $ — $ 14,620 Total cash equivalents 4,732 — 4,732 14,620 — 14,620 Short-term investments: U.S. government agency securities — 59,142 59,142 — 78,621 78,621 Corporate notes and bonds — 22,622 22,622 — 26,953 26,953 Commercial paper — 18,822 18,822 — 24,073 24,073 Treasury bill — — — — 11,359 11,359 Yankee bonds — 1,957 1,957 — 1,939 1,939 Agency bonds — 5,904 5,904 — 2,882 2,882 Asset-backed securities — 8,614 8,614 — 8,321 8,321 Total short-term investments — 117,061 117,061 — 154,148 154,148 Long-term investments: U.S. government agency securities — 8,286 8,286 — 13,462 13,462 Yankee bonds — 1,891 1,891 — 1,869 1,869 Agency bonds — — — — 2,983 2,983 Asset-backed securities — — — — 886 886 Total long-term investments — 10,177 10,177 — 19,200 19,200 Total $ 4,732 $ 127,238 $ 131,970 $ 14,620 $ 173,348 $ 187,968
Schedule of Cost Or Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses, And Total Estimated Fair Value Of Financial Assets	The following tables present the cost or amortized cost, gross unrealized gains, gross unrealized losses and total estimated fair value of our financial assets as of the dates presented (in thousands): March 31, 2023 Cost or Gross Gross Total Estimated Amortized Cost Unrealized Gains Unrealized Losses Fair Value Description: Money market funds $ 4,732 $ — $ — $ 4,732 U.S. government agency securities 67,941 3 ( 516 ) 67,428 Corporate notes and bonds 22,665 13 ( 56 ) 22,622 Yankee bonds 3,856 — ( 8 ) 3,848 Commercial paper 18,822 — — 18,822 Agency bond 5,899 5 — 5,904 Asset-backed securities 8,659 1 ( 46 ) 8,614 Total $ 132,574 $ 22 $ ( 626 ) $ 131,970 December 31, 2022 Cost or Gross Gross Total Estimated Amortized Cost Unrealized Gains Unrealized Losses Fair Value Description: Money market funds $ 14,620 $ — $ — $ 14,620 U.S. government agency securities 93,065 — ( 982 ) 92,083 Corporate notes and bonds 27,133 6 ( 186 ) 26,953 Yankee bonds 3,815 — ( 7 ) 3,808 Commercial paper 24,073 — — 24,073 Treasury bill 11,361 2 ( 4 ) 11,359 Agency bond 5,863 4 ( 2 ) 5,865 Asset-backed securities 9,287 2 ( 82 ) 9,207 Total $ 189,217 $ 14 $ ( 1,263 ) $ 187,968

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Mar. 31, 2023
Inventory Disclosure [Abstract]
Schedule of Inventories	The following table presents the detail of inventories as of the dates presented (in thousands): March 31, 2023 December 31, 2022 Raw materials $ 34,990 $ 14,678 Work-in-process 21,182 14,525 Finished goods 29,637 17,194 Total inventory $ 85,809 $ 46,397

Stock-Based Awards (Tables)

Stock-Based Awards (Tables)	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Summary of Restricted Stock Units	The following table summarizes activity for RSUs, PSUs and MSUs for the three months ended March 31, 2023 (in thousands): Number of Underlying Shares RSUs MSUs PSUs Outstanding at December 31, 2022 1,310 110 74 Granted 301 126 — Vested ( 232 ) ( 58 ) ( 57 ) Forfeited ( 6 ) — ( 17 ) Outstanding at March 31, 2023 1,373 178 —
Summary of Stock-Based Compensation Expense	The following table presents the detail of stock-based compensation expense amounts included in our condensed consolidated statements of operations for the periods presented (in thousands): Three Months Ended March 31, 2023 2022 Cost of revenue $ 417 $ 599 Research and development expense 4,569 4,775 Sales and marketing expense 2,139 2,752 General and administrative expense 3,099 3,188 Total stock-based compensation expense $ 10,224 $ 11,314

Long-term Debt (Tables)

Long-term Debt (Tables)	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Summary of Outstanding Principal Amount and Carrying Value	The following table presents the outstanding principal amount and carrying value of the 2021 Notes as of the dates indicated (in thousands): March 31, 2023 December 31, 2022 Principal Amount Unamortized debt issuance costs Net Carrying Amount Principal Amount Unamortized debt issuance costs Net Carrying Amount 2021 Notes $ 287,500 $ ( 6,856 ) $ 280,644 $ 287,500 $ ( 7,256 ) $ 280,244
Schedule of Notes	Further details of the Notes are as follows: Issuance Maturity Date Interest Rate First Interest Payment Date Effective Interest Rate Semi-Annual Interest Payment Dates Initial Conversion Rate per $1,000 Principal Initial Conversion Price Number of Shares (in millions) 2021 Notes May 15, 2027 1.125 % May 15, 2022 1.72 % May 15; November 15 9.0061 $ 111.04 2.6
Schedule of Interest Expense	Interest expense related to the Notes was as follows (in thousands): Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 2021 Notes 2019 Notes 2021 Notes Total Amortization of debt issuance costs $ 400 $ 10 $ 393 $ 403 Cash interest expense 809 49 809 858 Total interest expense $ 1,209 $ 59 $ 1,202 $ 1,261

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Reconciliation of the Numerator and Denominator used in Computing Basic and Diluted Net Loss Per Share	For the periods presented, the following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net loss per share (in thousands, except per share amounts): Three Months Ended March 31, 2023 2022 Numerator: Net loss $ ( 4,358 ) $ ( 10,461 ) Denominator: Weighted-average shares outstanding — basic and diluted 26,285 24,980 Net loss per share — basic and diluted $ ( 0.17 ) $ ( 0.42 )
Computation of Diluted Net Loss Per Share Effect in Antidilutive	The following table presents the outstanding shares of our common stock equivalents excluded from the computation of diluted net loss per share as of the dates presented because their effect would have been antidilutive (in thousands): Three Months Ended March 31, 2023 2022 Stock options 1,600 2,167 RSUs, MSUs and PSUs 1,551 1,900 Employee stock purchase plan shares 16 27 2019 Notes — 285 2021 Notes 2,589 2,589

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Summary of Revenue Categories	The following table presents our revenue categories for the indicated periods (in thousands): Three Months Ended March 31, 2023 2022 Endpoint ICs $ 67,049 $ 38,795 Systems 18,848 14,349 Total revenue $ 85,897 $ 53,144

Deferred Revenue (Tables)

Deferred Revenue (Tables)	3 Months Ended
	Mar. 31, 2023
Deferred Revenue Disclosure [Abstract]
Summary of Changes in Deferred Revenue	The following table presents the changes in deferred revenue for the indicated periods (in thousands): Three Months Ended March 31, 2023 2022 Balance at beginning of period $ 2,599 $ 794 Deferral of revenue 29 572 Recognition of deferred revenue ( 1,809 ) ( 139 ) Balance at end of period $ 819 $ 1,227

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Assets Measured at Fair Value on Recurring Basis (Details) - Fair Value Measurements Recurring - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 131,970	$ 187,968
Cash Equivalents
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	4,732	14,620
Cash Equivalents | Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	4,732	14,620
Short-term Investments
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	117,061	154,148
Short-term Investments | U.S. Government Agency Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	59,142	78,621
Short-term Investments | Corporate Notes and Bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	22,622	26,953
Short-term Investments | Commercial Paper
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	18,822	24,073
Short-term Investments | Treasury Bill
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value		11,359
Short-term Investments | Yankee Bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	1,957	1,939
Short-term Investments | Agency Bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	5,904	2,882
Short-term Investments | Asset-backed Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	8,614	8,321
Long-term Investments
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	10,177	19,200
Long-term Investments | U.S. Government Agency Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	8,286	13,462
Long-term Investments | Yankee Bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	1,891	1,869
Long-term Investments | Agency Bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value		2,983
Long-term Investments | Asset-backed Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value		886
Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	4,732	14,620
Level 1 | Cash Equivalents
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	4,732	14,620
Level 1 | Cash Equivalents | Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	4,732	14,620
Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	127,238	173,348
Level 2 | Short-term Investments
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	117,061	154,148
Level 2 | Short-term Investments | U.S. Government Agency Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	59,142	78,621
Level 2 | Short-term Investments | Corporate Notes and Bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	22,622	26,953
Level 2 | Short-term Investments | Commercial Paper
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	18,822	24,073
Level 2 | Short-term Investments | Treasury Bill
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value		11,359
Level 2 | Short-term Investments | Yankee Bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	1,957	1,939
Level 2 | Short-term Investments | Agency Bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	5,904	2,882
Level 2 | Short-term Investments | Asset-backed Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	8,614	8,321
Level 2 | Long-term Investments
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	10,177	19,200
Level 2 | Long-term Investments | U.S. Government Agency Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	8,286	13,462
Level 2 | Long-term Investments | Yankee Bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 1,891	1,869
Level 2 | Long-term Investments | Agency Bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value		2,983
Level 2 | Long-term Investments | Asset-backed Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value		$ 886

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities continuous loss position for less than 12 months, estimated fair value	$ 62,500,000	$ 125,600,000
Marketable securities continuous loss position for less than 12 months, unrealized losses	400,000	1,200,000
Marketable securities continuous loss position for greater than 12 months, estimated fair value	29,900,000	13,900,000
Marketable securities continuous loss position for greater than 12 months, unrealized losses	$ 300,000	100,000
2021 Convertible Senior Notes due 2027
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt instrument, maturity year	2027
Fair Value Measurements Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 131,970,000	187,968,000
Liabilities measured at fair value	0	0
Fair Value Measurements Recurring | Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 0	$ 0

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Cost Or Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses, And Total Estimated Fair Value Of Financial Assets (Details) - Fair Value Measurements Recurring - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cost or Amortized Cost	$ 132,574	$ 189,217
Gross Unrealized Gains	22	14
Gross Unrealized Losses	(626)	(1,263)
Total Estimated Fair Value	131,970	187,968
Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cost or Amortized Cost	4,732	14,620
Total Estimated Fair Value	4,732	14,620
U.S. Government Agency Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cost or Amortized Cost	67,941	93,065
Gross Unrealized Gains	3
Gross Unrealized Losses	(516)	(982)
Total Estimated Fair Value	67,428	92,083
Corporate Notes and Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cost or Amortized Cost	22,665	27,133
Gross Unrealized Gains	13	6
Gross Unrealized Losses	(56)	(186)
Total Estimated Fair Value	22,622	26,953
Yankee Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cost or Amortized Cost	3,856	3,815
Gross Unrealized Losses	(8)	(7)
Total Estimated Fair Value	3,848	3,808
Commercial Paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cost or Amortized Cost	18,822	24,073
Total Estimated Fair Value	18,822	24,073
Treasury Bill
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cost or Amortized Cost		11,361
Gross Unrealized Gains		2
Gross Unrealized Losses		(4)
Total Estimated Fair Value		11,359
Agency Bond
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cost or Amortized Cost	5,899	5,863
Gross Unrealized Gains	5	4
Gross Unrealized Losses		(2)
Total Estimated Fair Value	5,904	5,865
Asset-Backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cost or Amortized Cost	8,659	9,287
Gross Unrealized Gains	1	2
Gross Unrealized Losses	(46)	(82)
Total Estimated Fair Value	$ 8,614	$ 9,207

Inventory - Schedule of Invento

Inventory - Schedule of Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 34,990	$ 14,678
Work-in-process	21,182	14,525
Finished goods	29,637	17,194
Total inventory	$ 85,809	$ 46,397

Stock-Based Awards - Summary of

Stock-Based Awards - Summary of Restricted Stock Units (Details) shares in Thousands	3 Months Ended
	Mar. 31, 2023 shares
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Underlying Shares Outstanding, Balance	1,310
Number of Underlying Shares, Granted	301
Number of Underlying Shares, Vested	(232)
Number of Underlying Shares, Forfeited	(6)
Number of Underlying Shares Outstanding, Balance	1,373
Market and Service Conditions Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Underlying Shares Outstanding, Balance	110
Number of Underlying Shares, Granted	126
Number of Underlying Shares, Vested	(58)
Number of Underlying Shares Outstanding, Balance	178
Performance Share Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Underlying Shares Outstanding, Balance	74
Number of Underlying Shares, Vested	(57)
Number of Underlying Shares, Forfeited	(17)

Stock-Based Awards - Summary _2

Stock-Based Awards - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 10,224	$ 11,314
Cost of Revenue
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	417	599
Research and Development Expense
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	4,569	4,775
Selling and Marketing Expense
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	2,139	2,752
General and Administrative Expense
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 3,099	$ 3,188

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details)

1 Months Ended

2 Months Ended

Mar. 29, 2023 Patent

Mar. 10, 2023 Patent

Dec. 22, 2022 Patent

Nov. 04, 2022 Patent

Feb. 10, 2022 Patent

Sep. 03, 2021 Patent

Jul. 26, 2021 Patent

May 25, 2021 Patent

Dec. 11, 2020 Patent

Dec. 07, 2020 Patent

Oct. 27, 2020 Patent

Sep. 24, 2020 Patent

Oct. 04, 2019 Patent

Jun. 06, 2019 Patent

Nov. 30, 2022 Patent

Feb. 29, 2020 Patent

Sep. 30, 2020 Patent

Mar. 31, 2023 USD ($)

Dec. 31, 2022 USD ($)

Mar. 09, 2021 Patent

Feb. 12, 2021 Patent

Commitments And Contingencies [Line Items]

Inventory purchase commitment, amount | $

$ 56,000,000

Number patents currently at issue

6

Number of infringement patents

1

Patent Infringement Claims

Commitments And Contingencies [Line Items]

Number of patents allegedly infringed

3

8

26

Number of patents found

6

Number of patents filed inter parties review with patent trail and appeal board

6

12

Number patents declined institute review

4

Amended complaint to remove without prejudice for number patents

2

Number of patents leaving in suit

4

Stay lifted for number of patents

2

2

Number of asserted patents

7

3

4

Number of asserted patents Invalid

3

8

Number of patents in suit pending final resolution of petitions

8

Number of patents on for IPRs

2

Number of patents denied for IPRs

4

Stay removed on number of patents

4

Number of non-Infringement patents

4

Number of limited patents

3

Number of patents remaining

2

3

Number of infringement patents

9

9

Number of infringement patents exclusively licensed

8

Number of patent cases filed for dismiss

2

Number of patents proceedings instituted for reexamination

5

Accrued Liabilities

Commitments And Contingencies [Line Items]

Contingent liabilities | $

$ 0

$ 0

Long-term Debt - Summary of Out

Long-term Debt - Summary of Outstanding Principal Amount and Carrying Value (Details) - 2021 Convertible Senior Notes due 2027 - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Principal Amount	$ 287,500	$ 287,500
Unamortized debt issuance costs	(6,856)	(7,256)
Net Carrying Amount	$ 280,644	$ 280,244

Long-term Debt - Convertible Se

Long-term Debt - Convertible Senior Notes - Additional Information (Details)		1 Months Ended			3 Months Ended
	Dec. 11, 2019	Jun. 30, 2022 USD ($)	Nov. 30, 2021 USD ($)	Dec. 31, 2019 Days $ / shares	Mar. 31, 2023 USD ($) Days	Dec. 31, 2022 USD ($)
Debt Instrument [Line Items]
Debt instrument, threshold trading days | Days					5
Number of business day | Days					5
Long-term debt					$ 280,644,000	$ 280,244,000
Additional paid in capital					(418,342,000)	(403,599,000)
Accumulated deficit					391,143,000	386,785,000
2019 Convertible Senior Notes due 2026
Debt Instrument [Line Items]
Cap price of the capped call transactions | $ / shares				$ 54.20
Capped call transactions expiration consecutive days | Days				40
Capped call transaction expiring date	Dec. 11, 2026
2019 Convertible Senior Notes due 2026 | 2019 Note Repurchase
Debt Instrument [Line Items]
Payment of 2019 Notes		$ 17,600,000	$ 183,600,000
Repurchase of debt principal amount		$ 9,850,000	$ 76,400,000
2021 Convertible Senior Notes due 2027
Debt Instrument [Line Items]
Debt instrument, maturity date			May 15, 2027
Net proceeds from issuing notes			$ 278,400,000
Accrued interest					1,200,000	404,000
Unamortized debt issuance costs					6,856,000	7,256,000
2021 Convertible Promissory Notes due 2027
Debt Instrument [Line Items]
Aggregate principal amount			$ 287,500,000
Debt instrument, maturity date			May 15, 2027
2021 Convertible Promissory Notes due 2027 | Level 2
Debt Instrument [Line Items]
Estimated fair value					$ 408,100,000	$ 347,400,000
Convertible Senior Notes
Debt Instrument [Line Items]
Debt instrument, threshold consecutive trading days | Days					30
Debt instrument, threshold percentage of stock price trigger					130%
Debt instrument, terms of conversion feature					Regardless of the foregoing circumstances, holders may convert all or any portion of the Notes, in increments of $1,000 principal amount, on or after February 15, 2027, until the close of business on the second scheduled trading day immediately preceding the maturity date.
Percentage of repurchase price of principal amount					100%
Convertible Senior Notes | Minimum
Debt Instrument [Line Items]
Debt instrument, threshold trading days | Days					20
Convertible Senior Notes | Maximum
Debt Instrument [Line Items]
Debt instrument, threshold percentage of stock price trigger					98%

Long-term Debt - Schedule of No

Long-term Debt - Schedule of Notes (Details) - 2021 Notes Unit in Millions	1 Months Ended
	Nov. 30, 2021 Unit $ / shares shares
Debt Instrument [Line Items]
Maturity Date	May 15, 2027
Interest Rate	1.125%
First Interest Payment Date	May 15, 2022
Effective Interest Rate	1.72%
Semi-Annual Interest Payment Dates	May 15; November 15
Initial Conversion Rate per $1,000 Principal | shares	9.0061
Initial Conversion Price | $ / shares	$ 111.04
Number of Shares (in millions) | Unit	2.6

Long-term Debt - Schedule of In

Long-term Debt - Schedule of Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
2019 Convertible Senior Notes due 2026
Debt Instrument [Line Items]
Amortization of debt issuance costs		$ 10
Cash interest expense		49
Total interest expense		59
2021 Convertible Senior Notes due 2027
Debt Instrument [Line Items]
Amortization of debt issuance costs	$ 400	393
Cash interest expense	809	809
Total interest expense	$ 1,209	1,202
Convertible Senior Notes
Debt Instrument [Line Items]
Amortization of debt issuance costs		403
Cash interest expense		858
Total interest expense		$ 1,261

Net Loss Per Share - Reconcilia

Net Loss Per Share - Reconciliation of the Numerator and Denominator used in Computing Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Numerator:
Net loss	$ (4,358)	$ (10,461)
Denominator:
Weighted-average shares outstanding - basic	26,285	24,980
Weighted-average shares outstanding - diluted	26,285	24,980
Net loss per share - basic	$ (0.17)	$ (0.42)
Net loss per share - diluted	$ (0.17)	$ (0.42)

Net Loss Per Share - Computatio

Net Loss Per Share - Computation of Diluted Net Loss Per Share Effect in Antidilutive (Details) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Stock Options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	1,600	2,167
RSUs, MSUs, and PSUs
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	1,551	1,900
Employee Stock Purchase Plan Shares
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	16	27
2019 Notes
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share		285
2021 Notes
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	2,589	2,589

Segment Information - Additiona

Segment Information - Additional Information (Details)	3 Months Ended
	Mar. 31, 2023 Segment
Segment Reporting [Abstract]
Number of reportable segments	1
Number of operating segments	1

Segment Information - Summary o

Segment Information - Summary of Revenue Categories (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting Information [Line Items]
Total revenue	$ 85,897	$ 53,144
Endpoint ICs
Segment Reporting Information [Line Items]
Total revenue	67,049	38,795
Systems
Segment Reporting Information [Line Items]
Total revenue	$ 18,848	$ 14,349

Deferred Revenue - Additional I

Deferred Revenue - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Deferred Revenue Disclosure [Abstract]
Recognition of deferred revenue	$ 1,800,000	$ 139,000

Deferred Revenue - Summary of C

Deferred Revenue - Summary of Changes in Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Deferred Revenue Disclosure [Abstract]
Balance at beginning of period	$ 2,599	$ 794
Deferral of revenue	29	572
Recognition of deferred revenue	(1,809)	(139)
Balance at end of period	$ 819	$ 1,227

Related-Party Transactions - Ad

Related-Party Transactions - Additional Information (Details)	3 Months Ended
	Mar. 31, 2022 USD ($)
Cathal Phelan | Advisory and Consulting Services
Related Party Transaction [Line Items]
Consulting fee expense recognized and paid	$ 135,000

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) - Voyantic Oy - Subsequent Event € in Millions, $ in Millions	Apr. 03, 2023 EUR (€) shares	Apr. 03, 2023 USD ($) shares
Subsequent Event [Line Items]
Purchase price	€ 25	$ 27.1
Consideration comprised common stock | shares	26,963	26,963
Consideration value of common stock | $		$ 3.6