Impinj (PI) 10-Q 9 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 31, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Trading Symbol	PI
Entity Registrant Name	IMPINJ INC
Entity Central Index Key	1,114,995
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		20,958,313

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 17,558	$ 33,636
Short-term investments	44,916	66,905
Accounts receivable, net	25,610	17,447
Inventory	45,817	27,734
Prepaid expenses and other current assets	2,585	3,004
Total current assets	136,486	148,726
Property and equipment, net	17,715	14,929
Other non-current assets	171
Goodwill and other intangible assets, net	3,881	3,881
Total assets	158,253	167,536
Current liabilities:
Accounts payable	2,843	7,166
Accrued compensation and employee related benefits	3,770	7,647
Accrued liabilities	5,227	6,098
Current portion of long-term debt	4,083	2,589
Current portion of capital lease obligations	1,017	1,130
Current portion of deferred rent	536	306
Current portion of deferred revenue	756	445
Total current liabilities	18,232	25,381
Long-term debt, net of current portion	6,524	9,676
Capital lease obligations, net of current portion	964	1,698
Long-term liabilities — other	836	770
Deferred rent, net of current portion	5,769	5,022
Deferred revenue, net of current portion	485	966
Total liabilities	32,810	43,513
Stockholders' equity:
Preferred stock, $0.001 par value — 5,000 shares authorized, no shares issued and outstanding at September 30, 2017 and December 31, 2016
Common stock, $0.001 par value — 495,000 shares authorized, 20,955 and 20,336 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively	21	20
Additional paid-in capital	320,630	311,216
Accumulated other comprehensive income (loss)	(17)	(10)
Accumulated deficit	(195,191)	(187,203)
Total stockholders' equity	125,443	124,023
Total liabilities and stockholders' equity	$ 158,253	$ 167,536

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
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	20,955,000	20,336,000
Common stock, shares outstanding	20,955,000	20,336,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Revenue	$ 32,599	$ 31,013	$ 98,437	$ 78,632
Cost of revenue	15,606	14,638	46,505	37,567
Gross profit	16,993	16,375	51,932	41,065
Operating expenses:
Research and development	8,846	6,622	23,308	17,782
Sales and marketing	8,107	5,584	22,487	15,902
General and administrative	4,723	3,356	13,632	8,214
Total operating expenses	21,676	15,562	59,427	41,898
Income (loss) from operations	(4,683)	813	(7,495)	(833)
Interest income (expense) and other income (expense), net	(118)	38	(341)	(845)
Income (loss) before tax expense	(4,801)	851	(7,836)	(1,678)
Income tax expense	(50)	(43)	(152)	(98)
Net income (loss)	(4,851)	808	(7,988)	(1,776)
Less: Accretion of preferred stock		(608)		(6,258)
Net income (loss) attributable to common stockholders	$ (4,851)	$ 200	$ (7,988)	$ (8,034)
Net income (loss) per share attributable to common stockholders — basic and diluted	$ (0.23)	$ 0.01	$ (0.39)	$ (1.01)
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders:
Basic	20,826	15,318	20,604	7,991
Diluted	20,826	16,859	20,604	7,991

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)	$ (4,851)	$ 808	$ (7,988)	$ (1,776)
Other comprehensive income (loss):
Unrealized gains (losses) on investments	33		(7)
Total other comprehensive income (loss)	33		(7)
Comprehensive income (loss)	$ (4,818)	$ 808	$ (7,995)	$ (1,776)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Operating activities:
Net income (loss)	$ (7,988)	$ (1,776)
Adjustment to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	2,868	2,143
Amortization and write-off of debt issuance costs	72	220
Amortization of premium on short-term investments	120
Revaluation of warrant liability		(559)
Stock-based compensation	4,763	1,417
Changes in operating assets and liabilities:
Accounts receivable	(8,138)	(4,617)
Inventory	(18,083)	(8,649)
Prepaid expenses and other assets	278	(479)
Deferred revenue	(170)	(27)
Deferred rent	977	79
Accounts payable	(4,125)	377
Accrued compensation and benefits	(3,745)	1,118
Accrued liabilities	117	1,254
Net cash provided by (used in) operating activities	(33,054)	(9,499)
Investing activities:
Purchases of investments	(28,887)	(14,116)
Proceeds from maturities of investments	50,726
Purchases of property and equipment	(6,156)	(2,327)
Net cash provided by (used in) investing activities	15,683	(16,443)
Financing activities:
Proceeds from initial public offering, net of offering costs		68,808
Payments on capital lease financing obligations	(847)	(954)
Payments on term loans	(1,730)	(65,233)
Proceeds from term loans		60,517
Proceeds from exercise of stock options and employee stock purchase plan	4,520	556
Proceeds from issuance of preferred stock upon exercise of warrants		62
Payments of deferred offering costs	(650)
Net cash provided by (used in) financing activities	1,293	63,756
Net increase (decrease) in cash and cash equivalents	(16,078)	37,814
Cash and cash equivalents
Beginning of period	33,636	10,121
End of period	$ 17,558	$ 47,935

Organization and Description of

Organization and Description of Business	9 Months Ended
	Sep. 30, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization and Description of Business	Note 1. Organization and Description of Business Impinj, Inc., a Delaware corporation, is headquartered in Seattle, Washington. Impinj enables wireless connectivity for everyday items, delivering each item’s unique identity, location and authenticity to business and consumer applications. Impinj’s platform spans endpoints, connectivity and software and provides this wireless item connectivity and information delivery. Impinj derives revenue from selling endpoint integrated circuits, or ICs, reader ICs, readers and gateways, and software as well as from development, service and license agreements. Our integrated platform connects billions of everyday items to applications, delivering real-time information to businesses about items they create, manage, transport and sell.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements include Impinj, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. These condensed consolidated financial statements have been prepared 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 financial statements and accompanying notes as of and for the year ended December 31, 2016 included Impinj, Inc.’s Annual Report on Form 10-K, which was filed with the SEC on March 3, 2017. The condensed consolidated balance sheet as of December 31, 2016, included herein, was derived from the audited financial statements of Impinj, Inc. The unaudited condensed consolidated interim financial statements, in the opinion of management, reflect all adjustments, consisting of normal recurring adjustments, necessary to state fairly our financial position as of September 30, 2017 September 30, 2017 September 30, 2017 September 30, 2017 Public Offerings On July 26, 2016, we closed our initial public offering of 5,520,000 shares of common stock at an initial price to the public of $14.00 per share, including 720,000 shares of common stock pursuant to the underwriters’ option to purchase additional shares, resulting in aggregate net proceeds to us of $68.5 million after deducting underwriting discounts and commissions and offering costs. Upon the effectiveness of the registration statement related to the initial public offering on July 20, 2016, all of our outstanding shares of redeemable convertible preferred stock and outstanding preferred stock warrants, which automatically net exercised, converted into 8,531,146 shares and 123,759 shares, respectively, of common stock. The related carrying value of the and warrants of $106.1 million and $505,000, respectively, were reclassified to common stock and additional paid-in capital. On December 7, 2016, we closed our follow-on public offering of 1,527,380 shares of common stock at a price to the public of $27.00 per share, resulting in aggregate net proceeds to us of $38.7 million after deducting underwriting discounts and commissions and offering costs. Reverse Stock Split On June 16, 2016, our board of directors and stockholders approved an amendment to our certificate of incorporation to effect a reverse split of our authorized, issued and outstanding common stock and redeemable convertible preferred stock at a 1-for-12 ratio per share. The reverse stock split was effected on July 8, 2016. The par value of our common stock and the par value of our redeemable convertible preferred stock were not adjusted as a result of the reverse stock split. All authorized, issued and outstanding shares of common stock and redeemable convertible preferred stock, warrants for common stock and redeemable convertible preferred stock, options to purchase common stock and the related per share amounts contained in these condensed consolidated financial statements have been retroactively adjusted to reflect this reverse stock split for all periods presented. Use of Estimates The preparation of 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 the related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the periods presented. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, reserve for returns, collectability of accounts receivable, estimated costs to complete development contracts, warranty obligations, deferred revenue, inventory excess and obsolescence, depreciable lives of fixed assets, the determination of the fair value of stock awards and warrants and accrued liabilities, compensation and employee related benefits. To the extent there are material differences between these estimates, judgments, or assumptions and actual results, our financial statements will be affected. Risks and Uncertainties Inherent in our business are various risks and uncertainties, including that we are developing advanced technologies and new applications in a rapidly changing industry. These risks include the failure to develop and extend our products and the rejection of our products by consumers, as well as other risks and uncertainties. If we do not successfully implement our business plan, certain assets may not be recoverable, certain liabilities may not be paid and investments in our capital stock may not be recoverable. Our success depends upon the acceptance of our technology, development of sales and distribution channels and our ability to generate significant revenue from the use of our technology. Recently Adopted Accounting Standards In May 2017, the Financial Accounting Standards Board, or FASB, issued guidance that clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. This guidance is effective for interim and annual reporting periods beginning after December 15, 2017, and early adoption is permitted. This guidance must be applied on a prospective basis to awards modified on or after the adoption date. We elected to early adopt this new guidance in the second quarter of fiscal year 2017. Adoption of this guidance did not impact our financial position, results of operations or cash flows. In January 2017, the FASB issued guidance simplifying the test for goodwill impairment. This standard eliminates Step 2 from the goodwill impairment test, instead requiring an entity to recognize a goodwill impairment charge for the amount by which the goodwill carrying amount exceeds the reporting unit’s fair value. This guidance is effective for interim and annual goodwill impairment tests in fiscal years beginning after December 15, 2019, and early adoption is permitted. This guidance must be applied on a prospective basis. We adopted this guidance on January 1, 2017 for interim and annual goodwill impairment tests. Adoption of this guidance did not impact our financial position, results of operations or cash flows. In July 2015, the FASB issued guidance on the measurement of inventory. The amendments require the measurement of inventory at the lower of cost or net realizable value; where net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This guidance is effective for interim and annual reporting periods beginning after December 31, 2016, and early adoption is permitted. We adopted this guidance on January 1, 2017. A doption of this guidance did not have a material impact on Recently Issued Accounting Standards Not Yet Adopted In January 2017, the FASB issued guidance to narrow the definition of a business. This standard provides guidance to assist entities with evaluating when a set of transferred assets and activities is a business. This guidance is effective for interim and annual reporting periods beginning after December 15, 2017, and early adoption is permitted. This guidance must be applied prospectively to transactions occurring within the period of adoption. We expect to adopt this guidance on January 1, 2018. While we continue to assess all potential impacts of this new standard, In June 2016, the FASB issued guidance on the measurement of credit losses on financial instruments. This guidance requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. This guidance is effective for interim and annual reporting periods beginning after December 15, 2019, and early adoption is permitted. We expect to adopt this guidance on January 1, 2020. The adoption of this guidance requires a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. While we continue to assess all potential impacts of this new standard, In February 2016, the FASB issued guidance on leases. This standard requires the recognition of a right-of-use asset and lease liability on the balance sheet for all leases. This standard also requires more detailed disclosures to enable users of financial statements to understand the amount, timing, and uncertainty of cash flows arising from leases. This guidance is effective for interim and annual reporting periods beginning after December 15, 2018 and should be applied through a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, and early adoption is permitted. We expect to adopt this guidance on January 1, 2019. While we continue to assess all potential impacts of this new standard, we anticipate this standard will have a material impact on our financial position, primarily due to our office space operating leases, as we will be required to recognize lease assets and lease liabilities on our consolidated balance sheet. However, we do not expect the adoption to have a significant impact on our results of operations or cash flows. In May 2014, the FASB issued guidance on revenue recognition. This guidance provides that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The effective date of this guidance is for interim and annual reporting periods beginning after December 15, 2017, early adoption is not permitted, and the guidance must be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. We currently expect to adopt the new revenue standards on January 1, 2018 utilizing the full retrospective transition method. While we continue to assess all potential impacts of this new standard, we currently do not expect adoption to have a material impact on revenues and the cost of sales commissions. We continue to implement key control activities related to the new guidance, particularly related to evaluating the impact of the standard on new products or products with more than one performance obligation and the new disclosure requirements. Further, we have concluded that upon adoption of the new guidance, we will not need to implement new information technology systems. We continue to assess the impact the adoption of this guidance will have on our financial position, results of operations, cash flows and financial statement disclosures.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 3. 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 are comprised of highly liquid investments, including money market funds and certificates of deposit, with original maturities of less than three months at the acquisition date. The fair value measurement of these assets is based on quoted market prices in active markets and these assets are recorded at fair value. Investments — Our investments consist of fixed income securities, which include U.S. government agency securities and corporate notes and bonds. 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 — The fair values of our long-term debt approximates carrying value based on the borrowing rates currently available to us for loans with similar terms using Level 2 inputs. The following tables present the balances of assets measured at fair value on a recurring basis, by level within the fair value hierarchy, as of the date presented (in thousands): September 30, 2017 LEVEL 1 LEVEL 2 Cash equivalents: Money market funds $ 8,584 $ — Commercial paper — 1,998 Short-term investments: U.S. government agency securities — 30,383 Corporate notes and bonds — 6,564 Commercial paper — 7,969 Total $ 8,584 $ 46,914 December 31, 2016 LEVEL 1 LEVEL 2 Cash equivalents: Money market funds $ 14,065 $ — U.S. government agency securities — 4,997 Corporate notes and bonds — 959 Commercial paper — 2,948 Short-term investments: U.S. government agency securities — 36,531 Corporate notes and bonds — 19,252 Commercial paper — 11,122 Total $ 14,065 $ 75,809 We did not have any Level 3 assets as of September 30, 2017 or December 31, 2016. There were no liabilities measured at fair value as of September 30, 2017 or December 31, 2016.

Cash, Cash Equivalents and Inve

Cash, Cash Equivalents and Investments	9 Months Ended
	Sep. 30, 2017
Cash And Cash Equivalents [Abstract]
Cash, Cash Equivalents and Investments	Note 4. Cash, Cash Equivalents and Investments Our investments consist of fixed income securities, which include U.S. government agency securities, corporate notes and bonds and commercial paper. Our investments are classified as available-for-sale securities and are carried at fair value with unrealized gains and losses reported as a component of accumulated other comprehensive income (loss) in stockholders’ equity, while realized gains and losses and other-than-temporary impairments are reported as a component of net income (loss) based on specific identification. The following tables present the amortized cost, gross unrealized gains and losses, and estimated fair market value of our cash and cash equivalents and available-for-sale securities as of the dates presented (in thousands): September 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash $ 6,976 $ — $ — $ 6,976 Cash equivalents: Money market funds 8,584 — — 8,584 Commercial Paper 1,998 — — 1,998 Short-term investments: U.S. government agency securities 30,397 — (14 ) 30,383 Corporate notes and bonds 6,567 — (3 ) 6,564 Commercial Paper 7,969 — — 7,969 Total $ 62,491 $ — $ (17 ) $ 62,474 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash $ 10,667 $ — $ — $ 10,667 Cash equivalents: Money market funds 14,065 — — 14,065 U.S. government agency securities 4,996 1 — 4,997 Corporate notes and bonds 959 — — 959 Commercial paper 2,948 — — 2,948 Short-term investments: U.S. government agency securities 36,535 6 (10 ) 36,531 Corporate notes and bonds 19,259 2 (9 ) 19,252 Commercial paper 11,122 — — 11,122 Total $ 100,551 $ 9 $ (19 ) $ 100,541 T he contractual maturities are due in one year or less on our available-for-sale securities as of September 30, 2017.

Inventory

Inventory	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Inventory	Note 5. Inventory The following table presents the detail of inventories as of the dates presented (in thousands): September 30, December 31, 2017 2016 Raw materials $ 2,108 $ 5,482 Work-in-process 20,693 5,556 Finished goods 23,016 16,696 Total $ 45,817 $ 27,734

Stock-Based Awards

Stock-Based Awards	9 Months Ended
	Sep. 30, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	Note 6. Stock-Based Awards Option Awards The following table summarizes option award activity for the nine months ended September 30, 2017 (in thousands, except per share amounts): Number of Shares Options Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Life (Years) Total Intrinsic Value Outstanding at December 31, 2016 2,310 $ 8.84 Granted 1,237 36.36 Exercised (425 ) 3.47 Forfeited or Cancelled (208 ) 11.57 Outstanding at September 30, 2017 2,914 21.10 8.25 60,704 Vested and exercisable at September 30, 2017 923 5.53 6.16 33,292 As of September 30, 2017, there was a total of $27.7 million in unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted average period of 3.1 years. Unvested Shares The following table summarizes activity of unvested shares of our common stock for the nine months ended September 30, 2017 (in thousands, except per share amounts): Shares Outstanding Number Of Shares Weighted- Average Exercise Price Per Share Outstanding at December 31, 2016 118 $ 3.30 Issued 1 4.71 Vested (51 ) 2.50 Repurchased (2 ) 3.08 Outstanding at September 30, 2017 66 3.93 Restricted Stock Units The following table summarizes activity for restricted stock units for the nine months ended September 30, 2017 (in thousands, except per share amounts): Shares Outstanding Number Of Shares Weighted- Average Grant-Date Fair Value Outstanding at December 31, 2016 — $ — Granted 12 46.53 Outstanding at September 30, 2017 12 46.53 The fair value of the outstanding restricted stock units will be recorded as stock-based compensation expense over the vesting period. As of September 30, 2017 which is expected to be recognized over a weighted average period of 1.0 years. Share-Based Compensation Expense The following table presents the effects of stock-based compensation in our condensed consolidated statements of operations during the periods presented (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Cost of revenue $ 62 $ 28 $ 145 $ 39 Research and development expense 652 282 1,550 416 Sales and marketing expense 921 343 2,100 754 General and administrative expense 505 102 968 208 Total $ 2,140 $ 755 $ 4,763 $ 1,417

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 7. Commitments and Contingencies Lease Commitments We have entered into various non-cancelable operating lease agreements for certain of our office space and equipment. We are committed to pay a portion of the related operating expenses under certain of these lease agreements. Certain of these arrangements have free rent periods, tenant improvement allowances and escalating rent payment provisions, and we recognize rent expense under such arrangements on a straight-line basis. Operating lease expense for the three months ended September 30, 2017 and 2016 was $957,000 and $748,000, respectively. Operating lease expense for the nine months ended September 30, 2017 and 2016 was $2.4 We lease a portion of our property and equipment under capital leases, which include options allowing us to purchase the equipment at the end of the lease term. The following table presents future minimum lease payments under operating and capital leases as of September 30, 2017 (in thousands): Operating Capital 2017 $ 737 $ 304 2018 4,219 1,047 2019 4,252 575 2020 4,379 271 2021 4,511 — Thereafter 18,020 — Total minimum lease payments $ 36,118 $ 2,197 Less: Portion representing interest (216 ) Present value of capital lease obligations 1,981 Less: Current portion of capital lease obligations (1,017 ) Capital lease obligations net of current portion $ 964 Indemnifications In the normal course of business, we periodically enter into agreements that require us to indemnify either customers or suppliers for specific risks. While we cannot estimate our maximum exposure under these indemnification provisions, we do not expect them to have a material impact on our consolidated results of operations or financial condition. Obligations with Third-Party Manufacturers We manufacture products with third-party manufacturers. We are committed to purchase $14.8 million of inventory as of September 30, 2017.

Debt Facilities

Debt Facilities	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Debt Facilities	Note 8. Debt Facilities Senior Credit Facility On April 24, 2017, we amended and restated our loan agreement, or senior credit facility, with Silicon Valley Bank. As amended, the senior credit facility provides for (1) a $25.0 million revolving credit facility, with a $5.0 million letter of credit subfacility, (2) a $10.5 million term loan and (3) approximately $1.7 million aggregate principal amount of outstanding equipment loans. The revolving credit facility reflects a $10.0 million increase in revolver borrowing capacity and is no longer subject to a borrowing base. Consistent with the prior loan agreement, the term loan will amortize over 36 months beginning on June 1, 2017, following an initial interest-only period, and will mature on May 1, 2020. We retain the ability to prepay the term loan at any time, subject to a prepayment fee of 1.0% of the outstanding principal amount if prepaid on or before May 27, 2018. At September 30, 2017, and $9.3 million of term loan borrowings outstanding. The senior credit facility also refinanced the current balance of the equipment loans outstanding in the principal amount of approximately $870,000, or the Equipment A Advance, and $815,000, or the Equipment B Advance, initially borrowed on September 20, 2016 and December 30, 2016, respectively. Beginning on May 1, 2017, the Equipment A Advance will continue to amortize over 29 months, maturing on September 1, 2019, and the Equipment B Advance will continue to amortize over 32 months, maturing on December 1, 2019. We may prepay the equipment loans in full at any time, subject to a prepayment fee equal to 2.0% of the principal amount of each equipment loan prepaid if such equipment loan is prepaid on or prior to the first anniversary of the date such equipment loan was initially borrowed, and 1.0% of the outstanding principal amount if prepaid after the first anniversary, but on or prior to the second anniversary, of the date such equipment loan was initially borrowed . At September 30, 2017, we had $1.4 million equipment loan borrowings outstanding. The loans accrue interest, at our option, at (1) a LIBOR rate determined in accordance with the senior credit facility, plus a margin of 2.75% or 3.25%, in the case of revolving borrowings, or 3.0% or 3.5%, in the case of the term loan and equipment loans, or (2) a prime rate determined in accordance with the senior credit facility, plus a margin of 0.0% or 0.5%, in the case of revolving borrowings, or 0.25% or 0.75%, in the case of the term loan and equipment loans, in each case with such margin determined based on our adjusted EBITDA for the preceding 12 month period. Interest is due and payable in arrears monthly for prime rate loans and at the end of an interest period for LIBOR rate loans. We are also obligated to pay other customary closing fees, commitment fees and letter of credit fees for a facility of this size and type. If our cash and investments in accounts maintained with the lender, plus availability under the revolving credit facility, falls below $50.0 million, the senior credit facility requires that we maintain compliance with (1) maximum adjusted EBITDA loss for the twelve month period ending as of the last day of each fiscal quarter of not greater than $7.5 million and (2) a ratio of unrestricted cash in accounts maintained with the lender plus net accounts receivable, to debt owed to the lender, of not less than 1.5 to 1.0. At September 30, 2017, $10.7 million of term loan and equipment loans were outstanding, excluding unamortized debt issuance costs of $136,000. The weighted average interest rate was 4.2% at September 30, 2017. The following table presents the scheduled principal maturities as of September 30, 2017 (in thousands): 2017 $ 1,041 2018 4,167 2019 4,077 2020 1,458 Total $ 10,743 The senior credit facility contains customary conditions to borrowing, events of default and covenants, including covenants that restrict our and our subsidiaries’ ability to dispose of assets, have a change of control, merge with or acquire other entities, incur indebtedness, incur encumbrances, make distributions to holders of their capital stock, make investments or engage in transactions with their affiliates, in each case subject to customary exceptions. We were in compliance with all covenants under our senior credit facility as of September 30, 2017. Our obligations under the senior credit facility are collateralized by substantially all of our assets other than intellectual property. All of our future subsidiaries are required to become co-borrowers under the senior credit facility. The guarantees by future subsidiaries are and will be collateralized by substantially all of the assets of such subsidiaries.

Net Income (Loss) Per Share Att

Net Income (Loss) Per Share Attributable to Common Stockholders	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Net Income (Loss) Per Share Attributable to Common Stockholders	Note 9. Net Income (Loss) Per Share Attributable to Common Stockholders The following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net income (loss) per share attributable to common stockholders for the periods presented (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Numerator: Net income (loss) $ (4,851 ) $ 808 $ (7,988 ) $ (1,776 ) Less: Accretion of preferred stock — (608 ) — (6,258 ) Net income (loss) attributable to common stockholders $ (4,851 ) $ 200 $ (7,988 ) $ (8,034 ) Denominator: Weighted-average common shares outstanding 20,900 15,460 20,695 8,117 Weighted-average unvested shares of common stock subject to repurchase (74 ) (142 ) (91 ) (126 ) Weighted-average shares used to compute net income (loss) per share attributable to common stockholders — basic 20,826 15,318 20,604 7,991 Effects of potentially dilutive securities: Weighted-average unvested shares of common stock subject to repurchase — 141 — — Stock options — 1,400 — — Weighted-average shares used to compute net income (loss) per share attributable to common stockholders — diluted 20,826 16,859 20,604 7,991 Net income (loss) per share attributable to common stockholders — basic and diluted $ (0.23 ) $ 0.01 $ (0.39 ) $ (1.01 ) The following table presents the outstanding options, warrants and shares of preferred stock excluded from the computation of diluted net income (loss) per share attributable to common stockholders as of the dates presented because their effect would have been antidilutive (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Redeemable convertible preferred stock — — — — Common stock warrants — — — — Redeemable convertible preferred stock warrants — — — — Unvested shares of common stock subject to repurchase 66 — 66 141 Stock options 2,942 35 2,942 2,272

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements include Impinj, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. These condensed consolidated financial statements have been prepared 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 financial statements and accompanying notes as of and for the year ended December 31, 2016 included Impinj, Inc.’s Annual Report on Form 10-K, which was filed with the SEC on March 3, 2017. The condensed consolidated balance sheet as of December 31, 2016, included herein, was derived from the audited financial statements of Impinj, Inc. The unaudited condensed consolidated interim financial statements, in the opinion of management, reflect all adjustments, consisting of normal recurring adjustments, necessary to state fairly our financial position as of September 30, 2017 September 30, 2017 September 30, 2017 September 30, 2017
Public Offering	Public Offerings On July 26, 2016, we closed our initial public offering of 5,520,000 shares of common stock at an initial price to the public of $14.00 per share, including 720,000 shares of common stock pursuant to the underwriters’ option to purchase additional shares, resulting in aggregate net proceeds to us of $68.5 million after deducting underwriting discounts and commissions and offering costs. Upon the effectiveness of the registration statement related to the initial public offering on July 20, 2016, all of our outstanding shares of redeemable convertible preferred stock and outstanding preferred stock warrants, which automatically net exercised, converted into 8,531,146 shares and 123,759 shares, respectively, of common stock. The related carrying value of the and warrants of $106.1 million and $505,000, respectively, were reclassified to common stock and additional paid-in capital. On December 7, 2016, we closed our follow-on public offering of 1,527,380 shares of common stock at a price to the public of $27.00 per share, resulting in aggregate net proceeds to us of $38.7 million after deducting underwriting discounts and commissions and offering costs.
Reverse Stock Split	Reverse Stock Split On June 16, 2016, our board of directors and stockholders approved an amendment to our certificate of incorporation to effect a reverse split of our authorized, issued and outstanding common stock and redeemable convertible preferred stock at a 1-for-12 ratio per share. The reverse stock split was effected on July 8, 2016. The par value of our common stock and the par value of our redeemable convertible preferred stock were not adjusted as a result of the reverse stock split. All authorized, issued and outstanding shares of common stock and redeemable convertible preferred stock, warrants for common stock and redeemable convertible preferred stock, options to purchase common stock and the related per share amounts contained in these condensed consolidated financial statements have been retroactively adjusted to reflect this reverse stock split for all periods presented.
Use of Estimates	Use of Estimates The preparation of 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 the related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the periods presented. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, reserve for returns, collectability of accounts receivable, estimated costs to complete development contracts, warranty obligations, deferred revenue, inventory excess and obsolescence, depreciable lives of fixed assets, the determination of the fair value of stock awards and warrants and accrued liabilities, compensation and employee related benefits. To the extent there are material differences between these estimates, judgments, or assumptions and actual results, our financial statements will be affected.
Risks and Uncertainties	Risks and Uncertainties Inherent in our business are various risks and uncertainties, including that we are developing advanced technologies and new applications in a rapidly changing industry. These risks include the failure to develop and extend our products and the rejection of our products by consumers, as well as other risks and uncertainties. If we do not successfully implement our business plan, certain assets may not be recoverable, certain liabilities may not be paid and investments in our capital stock may not be recoverable. Our success depends upon the acceptance of our technology, development of sales and distribution channels and our ability to generate significant revenue from the use of our technology.
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards In May 2017, the Financial Accounting Standards Board, or FASB, issued guidance that clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. This guidance is effective for interim and annual reporting periods beginning after December 15, 2017, and early adoption is permitted. This guidance must be applied on a prospective basis to awards modified on or after the adoption date. We elected to early adopt this new guidance in the second quarter of fiscal year 2017. Adoption of this guidance did not impact our financial position, results of operations or cash flows. In January 2017, the FASB issued guidance simplifying the test for goodwill impairment. This standard eliminates Step 2 from the goodwill impairment test, instead requiring an entity to recognize a goodwill impairment charge for the amount by which the goodwill carrying amount exceeds the reporting unit’s fair value. This guidance is effective for interim and annual goodwill impairment tests in fiscal years beginning after December 15, 2019, and early adoption is permitted. This guidance must be applied on a prospective basis. We adopted this guidance on January 1, 2017 for interim and annual goodwill impairment tests. Adoption of this guidance did not impact our financial position, results of operations or cash flows. In July 2015, the FASB issued guidance on the measurement of inventory. The amendments require the measurement of inventory at the lower of cost or net realizable value; where net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This guidance is effective for interim and annual reporting periods beginning after December 31, 2016, and early adoption is permitted. We adopted this guidance on January 1, 2017. A doption of this guidance did not have a material impact on
Recently Issued Accounting Standards Not Yet Adopted	Recently Issued Accounting Standards Not Yet Adopted In January 2017, the FASB issued guidance to narrow the definition of a business. This standard provides guidance to assist entities with evaluating when a set of transferred assets and activities is a business. This guidance is effective for interim and annual reporting periods beginning after December 15, 2017, and early adoption is permitted. This guidance must be applied prospectively to transactions occurring within the period of adoption. We expect to adopt this guidance on January 1, 2018. While we continue to assess all potential impacts of this new standard, In June 2016, the FASB issued guidance on the measurement of credit losses on financial instruments. This guidance requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. This guidance is effective for interim and annual reporting periods beginning after December 15, 2019, and early adoption is permitted. We expect to adopt this guidance on January 1, 2020. The adoption of this guidance requires a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. While we continue to assess all potential impacts of this new standard, In February 2016, the FASB issued guidance on leases. This standard requires the recognition of a right-of-use asset and lease liability on the balance sheet for all leases. This standard also requires more detailed disclosures to enable users of financial statements to understand the amount, timing, and uncertainty of cash flows arising from leases. This guidance is effective for interim and annual reporting periods beginning after December 15, 2018 and should be applied through a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, and early adoption is permitted. We expect to adopt this guidance on January 1, 2019. While we continue to assess all potential impacts of this new standard, we anticipate this standard will have a material impact on our financial position, primarily due to our office space operating leases, as we will be required to recognize lease assets and lease liabilities on our consolidated balance sheet. However, we do not expect the adoption to have a significant impact on our results of operations or cash flows. In May 2014, the FASB issued guidance on revenue recognition. This guidance provides that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The effective date of this guidance is for interim and annual reporting periods beginning after December 15, 2017, early adoption is not permitted, and the guidance must be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. We currently expect to adopt the new revenue standards on January 1, 2018 utilizing the full retrospective transition method. While we continue to assess all potential impacts of this new standard, we currently do not expect adoption to have a material impact on revenues and the cost of sales commissions. We continue to implement key control activities related to the new guidance, particularly related to evaluating the impact of the standard on new products or products with more than one performance obligation and the new disclosure requirements. Further, we have concluded that upon adoption of the new guidance, we will not need to implement new information technology systems. We continue to assess the impact the adoption of this guidance will have on our financial position, results of operations, cash flows and financial statement disclosures.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Summary of Assets Measured at Fair Value on Recurring Basis	The following tables present the balances of assets measured at fair value on a recurring basis, by level within the fair value hierarchy, as of the date presented (in thousands): September 30, 2017 LEVEL 1 LEVEL 2 Cash equivalents: Money market funds $ 8,584 $ — Commercial paper — 1,998 Short-term investments: U.S. government agency securities — 30,383 Corporate notes and bonds — 6,564 Commercial paper — 7,969 Total $ 8,584 $ 46,914 December 31, 2016 LEVEL 1 LEVEL 2 Cash equivalents: Money market funds $ 14,065 $ — U.S. government agency securities — 4,997 Corporate notes and bonds — 959 Commercial paper — 2,948 Short-term investments: U.S. government agency securities — 36,531 Corporate notes and bonds — 19,252 Commercial paper — 11,122 Total $ 14,065 $ 75,809

Cash, Cash Equivalents and In18

Cash, Cash Equivalents and Investments (Tables)	9 Months Ended
	Sep. 30, 2017
Cash And Cash Equivalents [Abstract]
Summary of Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Market Value of Cash and Cash Equivalents and Available-for-Sale Securities	The following tables present the amortized cost, gross unrealized gains and losses, and estimated fair market value of our cash and cash equivalents and available-for-sale securities as of the dates presented (in thousands): September 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash $ 6,976 $ — $ — $ 6,976 Cash equivalents: Money market funds 8,584 — — 8,584 Commercial Paper 1,998 — — 1,998 Short-term investments: U.S. government agency securities 30,397 — (14 ) 30,383 Corporate notes and bonds 6,567 — (3 ) 6,564 Commercial Paper 7,969 — — 7,969 Total $ 62,491 $ — $ (17 ) $ 62,474 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash $ 10,667 $ — $ — $ 10,667 Cash equivalents: Money market funds 14,065 — — 14,065 U.S. government agency securities 4,996 1 — 4,997 Corporate notes and bonds 959 — — 959 Commercial paper 2,948 — — 2,948 Short-term investments: U.S. government agency securities 36,535 6 (10 ) 36,531 Corporate notes and bonds 19,259 2 (9 ) 19,252 Commercial paper 11,122 — — 11,122 Total $ 100,551 $ 9 $ (19 ) $ 100,541

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Schedule of Inventories	The following table presents the detail of inventories as of the dates presented (in thousands): September 30, December 31, 2017 2016 Raw materials $ 2,108 $ 5,482 Work-in-process 20,693 5,556 Finished goods 23,016 16,696 Total $ 45,817 $ 27,734

Stock-Based Awards (Tables)

Stock-Based Awards (Tables)	9 Months Ended
	Sep. 30, 2017
Summary of Stock Option Activity	The following table summarizes option award activity for the nine months ended September 30, 2017 (in thousands, except per share amounts): Number of Shares Options Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Life (Years) Total Intrinsic Value Outstanding at December 31, 2016 2,310 $ 8.84 Granted 1,237 36.36 Exercised (425 ) 3.47 Forfeited or Cancelled (208 ) 11.57 Outstanding at September 30, 2017 2,914 21.10 8.25 60,704 Vested and exercisable at September 30, 2017 923 5.53 6.16 33,292
Summary of Unvested Shares of Common Stock Activity	The following table summarizes activity of unvested shares of our common stock for the nine months ended September 30, 2017 (in thousands, except per share amounts): Shares Outstanding Number Of Shares Weighted- Average Exercise Price Per Share Outstanding at December 31, 2016 118 $ 3.30 Issued 1 4.71 Vested (51 ) 2.50 Repurchased (2 ) 3.08 Outstanding at September 30, 2017 66 3.93
Summary of Stock-Based Compensation Expense	Share-Based Compensation Expense The following table presents the effects of stock-based compensation in our condensed consolidated statements of operations during the periods presented (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Cost of revenue $ 62 $ 28 $ 145 $ 39 Research and development expense 652 282 1,550 416 Sales and marketing expense 921 343 2,100 754 General and administrative expense 505 102 968 208 Total $ 2,140 $ 755 $ 4,763 $ 1,417
Restricted Stock Units
Summary of Restricted Stock Units	Restricted Stock Units The following table summarizes activity for restricted stock units for the nine months ended September 30, 2017 (in thousands, except per share amounts): Shares Outstanding Number Of Shares Weighted- Average Grant-Date Fair Value Outstanding at December 31, 2016 — $ — Granted 12 46.53 Outstanding at September 30, 2017 12 46.53

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2017
Commitments And Contingencies Disclosure [Abstract]
Future Minimum Lease Payments Under Operating and Capital Leases	The following table presents future minimum lease payments under operating and capital leases as of September 30, 2017 (in thousands): Operating Capital 2017 $ 737 $ 304 2018 4,219 1,047 2019 4,252 575 2020 4,379 271 2021 4,511 — Thereafter 18,020 — Total minimum lease payments $ 36,118 $ 2,197 Less: Portion representing interest (216 ) Present value of capital lease obligations 1,981 Less: Current portion of capital lease obligations (1,017 ) Capital lease obligations net of current portion $ 964

Debt Facilities (Tables)

Debt Facilities (Tables)	9 Months Ended
	Sep. 30, 2017
Senior Credit Facility | Silicon Valley Bank
Scheduled Principal Maturities of Debt	The following table presents the scheduled principal maturities as of September 30, 2017 (in thousands): 2017 $ 1,041 2018 4,167 2019 4,077 2020 1,458 Total $ 10,743

Net Income (Loss) Per Share A23

Net Income (Loss) Per Share Attributable to Common Stockholders (Tables)	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Reconciliation of the Numerator and Denominator used in Computing Basic and Diluted Net Income (Loss) Per Share Attributable to Common Stockholders	The following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net income (loss) per share attributable to common stockholders for the periods presented (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Numerator: Net income (loss) $ (4,851 ) $ 808 $ (7,988 ) $ (1,776 ) Less: Accretion of preferred stock — (608 ) — (6,258 ) Net income (loss) attributable to common stockholders $ (4,851 ) $ 200 $ (7,988 ) $ (8,034 ) Denominator: Weighted-average common shares outstanding 20,900 15,460 20,695 8,117 Weighted-average unvested shares of common stock subject to repurchase (74 ) (142 ) (91 ) (126 ) Weighted-average shares used to compute net income (loss) per share attributable to common stockholders — basic 20,826 15,318 20,604 7,991 Effects of potentially dilutive securities: Weighted-average unvested shares of common stock subject to repurchase — 141 — — Stock options — 1,400 — — Weighted-average shares used to compute net income (loss) per share attributable to common stockholders — diluted 20,826 16,859 20,604 7,991 Net income (loss) per share attributable to common stockholders — basic and diluted $ (0.23 ) $ 0.01 $ (0.39 ) $ (1.01 )
Computation of Diluted Net Income (Loss) Per Share Attributable to Common Stockholders Effect in Antidilutive	The following table presents the outstanding options, warrants and shares of preferred stock excluded from the computation of diluted net income (loss) per share attributable t o common stockholders as of the dates presented because their effect would have been antidilutive (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Redeemable convertible preferred stock — — — — Common stock warrants — — — — Redeemable convertible preferred stock warrants — — — — Unvested shares of common stock subject to repurchase 66 — 66 141 Stock options 2,942 35 2,942 2,272

Summary of Significant Accoun24

Summary of Significant Accounting Policies - Additional Information (Details)	Dec. 07, 2016USD ($)$ / sharesshares	Jul. 26, 2016USD ($)$ / sharesshares	Jun. 16, 2016	Sep. 30, 2017shares	Dec. 31, 2016shares	Jul. 20, 2016USD ($)shares
Significant Accounting Policies [Line Items]
Common stock, shares issued				20,955,000	20,336,000
Aggregate net proceeds from issuance of stock | $	$ 38,700,000	$ 68,500,000
Outstanding shares of redeemable convertible preferred stock converted into common stock						8,531,146
Warrants automatically converted into common stock						123,759
Reverse split of common stock				On June 16, 2016, our board of directors and stockholders approved an amendment to our certificate of incorporation to effect a reverse split of our authorized, issued and outstanding common stock and redeemable convertible preferred stock at a 1-for-12 ratio per share.
Reverse stock split ratio			0.0833
Common Stock
Significant Accounting Policies [Line Items]
Carrying value of redeemable convertible preferred stock | $						$ 106,100,000
Additional Paid-in Capital
Significant Accounting Policies [Line Items]
Carrying value of warrants | $						$ 505,000
IPO
Significant Accounting Policies [Line Items]
Initial public offering closing date		Jul. 26, 2016
Initial public offering of shares of common		5,520,000
Common stock, share offering price | $ / shares		$ 14
Underwriters option
Significant Accounting Policies [Line Items]
Common stock, shares issued		720,000
Follow-on Public Offering
Significant Accounting Policies [Line Items]
Initial public offering of shares of common	1,527,380
Common stock, share offering price | $ / shares	$ 27
Follow-on public offering closing date	Dec. 7, 2016

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 8,584	$ 14,065
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	8,584	14,065
Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	46,914	75,809
Level 2 | Cash Equivalents | U.S. Government Agency Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value		4,997
Level 2 | Cash Equivalents | Commercial Paper
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	1,998	2,948
Level 2 | Cash Equivalents | Corporate Notes and Bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value		959
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	30,383	36,531
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	6,564	19,252
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	$ 7,969	$ 11,122

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Liabilities measured at fair value	$ 0	$ 0
Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	$ 0	$ 0

Cash, Cash Equivalents and In27

Cash, Cash Equivalents and Investments - Summary of Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Market Value of Cash and Cash Equivalents and Available-for-Sale Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Schedule Of Cash Cash Equivalents And Investments [Line Items]
Amortized Cost	$ 62,491	$ 100,551
Gross Unrealized Gains		9
Gross Unrealized Losses	(17)	(19)
Fair Value	62,474	100,541
Cash
Schedule Of Cash Cash Equivalents And Investments [Line Items]
Amortized Cost	6,976	10,667
Fair Value	6,976	10,667
Cash Equivalents | Money Market Funds
Schedule Of Cash Cash Equivalents And Investments [Line Items]
Amortized Cost	8,584	14,065
Fair Value	8,584	14,065
Cash Equivalents | U.S. Government Agency Securities
Schedule Of Cash Cash Equivalents And Investments [Line Items]
Amortized Cost		4,996
Gross Unrealized Gains		1
Fair Value		4,997
Cash Equivalents | Commercial Paper
Schedule Of Cash Cash Equivalents And Investments [Line Items]
Amortized Cost	1,998	2,948
Fair Value	1,998	2,948
Cash Equivalents | Corporate Notes and Bonds
Schedule Of Cash Cash Equivalents And Investments [Line Items]
Amortized Cost		959
Fair Value		959
Short-term Investments | U.S. Government Agency Securities
Schedule Of Cash Cash Equivalents And Investments [Line Items]
Amortized Cost	30,397	36,535
Gross Unrealized Gains		6
Gross Unrealized Losses	(14)	(10)
Fair Value	30,383	36,531
Short-term Investments | Corporate Notes and Bonds
Schedule Of Cash Cash Equivalents And Investments [Line Items]
Amortized Cost	6,567	19,259
Gross Unrealized Gains		2
Gross Unrealized Losses	(3)	(9)
Fair Value	6,564	19,252
Short-term Investments | Commercial Paper
Schedule Of Cash Cash Equivalents And Investments [Line Items]
Amortized Cost	7,969	11,122
Fair Value	$ 7,969	$ 11,122

Inventory - Schedule of Invento

Inventory - Schedule of Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 2,108	$ 5,482
Work-in-process	20,693	5,556
Finished goods	23,016	16,696
Total	$ 45,817	$ 27,734

Stock-Based Awards - Summary of

Stock-Based Awards - Summary of Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)$ / sharesshares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Number of Shares Underlying Options, Outstanding, Beginning balance | shares	2,310
Number of Shares Underlying Options, Granted | shares	1,237
Number of Shares Underlying Options, Exercised | shares	(425)
Number of Shares Underlying Options, Forfeited or Cancelled | shares	(208)
Number of Shares Underlying Options, Outstanding, Ending balance | shares	2,914
Number of Shares Underlying Options, Vested and exercisable | shares	923
Weighted-Average Exercise Price Per Share, Outstanding, Beginning balance | $ / shares	$ 8.84
Weighted-Average Exercise Price Per Share, Granted | $ / shares	36.36
Weighted-Average Exercise Price Per Share, Exercised | $ / shares	3.47
Weighted-Average Exercise Price Per Share, Forfeited or Cancelled | $ / shares	11.57
Weighted-Average Exercise Price Per Share, Outstanding, Ending balance | $ / shares	21.10
Weighted-Average Exercise Price Per Share, Vested and exercisable | $ / shares	$ 5.53
Weighted-Average Remaining Contractual Life (Years), Outstanding	8 years 3 months
Weighted-Average Remaining Contractual Life (Years), Vested and exercisable	6 years 1 month 28 days
Total Intrinsic Value, Outstanding | $	$ 60,704
Total Intrinsic Value, Vested and exercisable | $	$ 33,292

Stock-Based Awards - Additional

Stock-Based Awards - Additional Information (Details)	9 Months Ended
	Sep. 30, 2017USD ($)
Unvested Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized stock-based compensation cost related to stock options	$ 27,700,000
Unrecognized stock-based compensation cost, period for recognition	3 years 1 month 7 days
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized stock-based compensation cost related to stock options	$ 397,000
Unrecognized stock-based compensation cost, period for recognition	1 year

Stock-Based Awards - Summary 31

Stock-Based Awards - Summary of Unvested Shares of Common Stock Activity (Details) shares in Thousands	9 Months Ended
	Sep. 30, 2017$ / sharesshares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Number of Shares Outstanding, Balance | shares	118
Number of Shares, Issued | shares	1
Number of Shares, Vested | shares	(51)
Number of Shares, Repurchased | shares	(2)
Number of Shares Outstanding, Balance | shares	66
Weighted-Average Exercise Price Per Share, Balance | $ / shares	$ 3.30
Weighted-Average Exercise Price Per Share, Issued | $ / shares	4.71
Weighted-Average Exercise Price Per Share, Vested | $ / shares	2.50
Weighted-Average Exercise Price Per Share, Repurchased | $ / shares	3.08
Weighted-Average Exercise Price Per Share, Balance | $ / shares	$ 3.93

Stock-Based Awards - Summary 32

Stock-Based Awards - Summary of Restricted Stock Units (Details) shares in Thousands	9 Months Ended
	Sep. 30, 2017$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares Outstanding, Balance	118
Number of Shares, Granted	1,237
Number of Shares Outstanding, Balance	66
Weighted-Average Exercise Price Per Share, Balance | $ / shares	$ 3.30
Weighted-Average Exercise Price Per Share, Balance | $ / shares	$ 3.93
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares, Granted	12
Number of Shares Outstanding, Balance	12
Weighted-Average Grant-Date Fair Value , Granted | $ / shares	$ 46.53
Weighted-Average Exercise Price Per Share, Balance | $ / shares	$ 46.53

Stock-Based Awards - Summary 33

Stock-Based Awards - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 2,140	$ 755	$ 4,763	$ 1,417
Cost of Revenue
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	62	28	145	39
Research and Development Expense
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	652	282	1,550	416
Selling and Marketing Expense
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	921	343	2,100	754
General and Administrative Expense
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 505	$ 102	$ 968	$ 208

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Commitments And Contingencies Disclosure [Abstract]
Operating lease expense	$ 957,000	$ 748,000	$ 2,400,000	$ 2,100,000
Inventory purchase commitment, amount	$ 14,800,000		$ 14,800,000

Commitments and Contingencies35

Commitments and Contingencies - Future Minimum Lease Payments Under Operating and Capital Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Commitments And Contingencies Disclosure [Abstract]
Operating leases, 2017	$ 737
Operating leases, 2018	4,219
Operating leases, 2019	4,252
Operating leases, 2020	4,379
Operating leases, 2021	4,511
Operating leases, Thereafter	18,020
Operating leases, Total minimum lease payments	36,118
Capital leases, 2017	304
Capital leases, 2018	1,047
Capital leases, 2019	575
Capital leases, 2020	271
Capital leases, Total minimum lease payments	2,197
Less: Portion representing interest	(216)
Present value of capital lease obligations	1,981
Less: Current portion of capital lease obligations	(1,017)	$ (1,130)
Capital lease obligations net of current portion	$ 964	$ 1,698

Debt Facilities - Senior Credit

Debt Facilities - Senior Credit Facility - Additional Information (Details) - USD ($)	Apr. 24, 2017	Sep. 30, 2017	Dec. 30, 2016	Sep. 20, 2016
Silicon Valley Bank
Line Of Credit Facility [Line Items]
Line of credit facility, minimum threshold of cash, investments and credit facility availability pursuant to debt covenant	$ 50,000,000
Maximum | Silicon Valley Bank
Line Of Credit Facility [Line Items]
Adjusted EBITDA loss	$ 7,500,000
Unrestricted cash deposit ratio	1.50%
Minimum | Silicon Valley Bank
Line Of Credit Facility [Line Items]
Unrestricted cash deposit ratio	1.00%
Senior Credit Facility | Silicon Valley Bank
Line Of Credit Facility [Line Items]
Term loan and equipment loan borrowings outstanding, excluding unamortized debt issuance costs		$ 10,700,000
Unamortized debt issuance costs		$ 136,000
Credit facility, weighted average interest rate		4.20%
Term Loan Prepaid on or prior to First Anniversary
Line Of Credit Facility [Line Items]
Percentage of prepayment fee	2.00%
Term Loan Prepaid After First Anniversary but on or Prior to Second Anniversary
Line Of Credit Facility [Line Items]
Percentage of prepayment fee	1.00%
Revolving Credit Facility
Line Of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 25,000,000
Increase from the prior loan agreement	$ 10,000,000
Revolving Credit Facility | LIBOR Rate 1
Line Of Credit Facility [Line Items]
Line of credit facility, basis rate	2.75%
Revolving Credit Facility | LIBOR Rate 2
Line Of Credit Facility [Line Items]
Line of credit facility, basis rate	3.25%
Revolving Credit Facility | Prime Rate 1
Line Of Credit Facility [Line Items]
Line of credit facility, basis rate	0.00%
Revolving Credit Facility | Prime Rate 2
Line Of Credit Facility [Line Items]
Line of credit facility, basis rate	0.50%
Revolving Credit Facility | Senior Credit Facility
Line Of Credit Facility [Line Items]
Amount of outstanding borrowings		$ 0
Letter of Credit
Line Of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 5,000,000
Term Borrowings
Line Of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 10,500,000
Line of credit facility, amortization period	36 months
Line of credit facility, mature date	May 1, 2020
Term Borrowings | Senior Credit Facility
Line Of Credit Facility [Line Items]
Amount of outstanding borrowings	$ 9,300,000
Term Borrowings | Term Loan Prepaid On or Before May 27, 2018 | Senior Credit Facility
Line Of Credit Facility [Line Items]
Percentage of prepayment fee	1.00%
Equipment Term Loan Facility
Line Of Credit Facility [Line Items]
Amount of outstanding borrowings	$ 1,700,000	$ 1,400,000
Equipment A Advance
Line Of Credit Facility [Line Items]
Amount of outstanding borrowings				$ 870,000
Line of credit facility, amortization period	29 months
Line of credit facility, mature date	Sep. 1, 2019
Equipment B Advance
Line Of Credit Facility [Line Items]
Amount of outstanding borrowings			$ 815,000
Line of credit facility, amortization period	32 months
Line of credit facility, mature date	Dec. 1, 2019
Term Loan and Equipment Loans | LIBOR Rate 1
Line Of Credit Facility [Line Items]
Line of credit facility, basis rate	3.00%
Term Loan and Equipment Loans | LIBOR Rate 2
Line Of Credit Facility [Line Items]
Line of credit facility, basis rate	3.50%
Term Loan and Equipment Loans | Prime Rate 1
Line Of Credit Facility [Line Items]
Line of credit facility, basis rate	0.25%
Term Loan and Equipment Loans | Prime Rate 2
Line Of Credit Facility [Line Items]
Line of credit facility, basis rate	0.75%

Debt Facilities - Scheduled Pri

Debt Facilities - Scheduled Principal Maturities of Debt (Details) $ in Thousands	Sep. 30, 2017USD ($)
Debt Disclosure [Abstract]
2,017	$ 1,041
2,018	4,167
2,019	4,077
2,020	1,458
Total	$ 10,743

Net Income (Loss) Per Share A38

Net Income (Loss) Per Share Attributable to Common Stockholders - Reconciliation of the Numerator and Denominator used in Computing Basic and Diluted Net Loss Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Numerator:
Net income (loss)	$ (4,851)	$ 808	$ (7,988)	$ (1,776)
Less: Accretion of preferred stock		(608)		(6,258)
Net income (loss) attributable to common stockholders	$ (4,851)	$ 200	$ (7,988)	$ (8,034)
Denominator:
Weighted-average common shares outstanding	20,900	15,460	20,695	8,117
Weighted-average unvested shares of common stock subject to repurchase	(74)	(142)	(91)	(126)
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders — basic	20,826	15,318	20,604	7,991
Effects of potentially dilutive securities:
Weighted-average unvested shares of common stock subject to repurchase		141
Stock options		1,400
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders — diluted	20,826	16,859	20,604	7,991
Net income (loss) per share attributable to common stockholders — basic and diluted	$ (0.23)	$ 0.01	$ (0.39)	$ (1.01)

Net Income (Loss) Per Share A39

Net Income (Loss) Per Share Attributable to Common Stockholders - Computation of Diluted Net Income (Loss) Per Share Attributable to Common Stockholders Effect in Antidilutive (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Unvested Shares of Common Stock Subject to Repurchase
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	66		66	141
Stock Options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	2,942	35	2,942	2,272