- Earnings call transcript Q3 2022

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Operator

Welcome to the Impinj Third Quarter 2022 Earnings Conference Call and Webcast. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Mr. Strategic President, Vice Cobb, Finance. Andy Please go ahead.

Andy Cobb

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

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

can Trended of the You find Data management’s website. company’s plus Prepared section Financial Relations Remarks Investor on the

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

except financial all of update otherwise, revenue refer reconciliation GAAP metrics. our forward-looking by the our metrics GAAP. basis statements, today’s we flow these the annual are these could reports Balance a with materially SEC. because are reasonable While sheet call, non-GAAP. to disclaim any actual we not and any and and earnings for We we We non-GAAP expressly required Please are to statements, a risks or results where to most statements for obligation in undertake On believe file we financial alter law. the our and for to except uncertainties uncertainties. differ state making such release quarterly have do forward-looking risks metrics, subject as describe or metrics explicitly comparable and cash

December participate call on virtually at note Baird in outlook, and you the connecting November in on Susquehanna the turn XXth. Conference will Global Before turning XXXX We to look to will to our and over now of with the Showcase forward events. Chris. we that many Chicago, those Semiconductor XXth I Industrial attend we results will

Chris Diorio

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

with from additional inlay quarter pace XX% we situation adding exceeded manufacturing IC to supply, quarter endpoint look than demand quarterly third our and results as Impinj’s improves. end and Last were conversations we of foundry still partner Executive supply based expected to record expect at take I those wafers. remain with broader would us adjusted We when exceed Despite IC partner through highlighted capacity bookings. my a they users the for setting that are demand, continue well improve. demand our growth Revenue wafer our gradually Against which demand second new and more positions that well our endpoint EBITDA backdrop that XXXX. records. to improvement, and these on we strong. of new with least I Starting exceeded to At suggest additional those yearly to conversations inlay that, both on existing if supply lead Impinj’s fourth times leading significant Forum, half held, end that improving third partners, Highlighting said more reiterated with leading layer into consecutive into highlight at product day just crosscurrents, backlog. Our event our strong deployments. strong had bookings we XXXX. by by supply quarter and entered record sixth XXXX, the results and the upsides potential and guidance, partners expansion partners the extends they deployments go-to-market forward strength with driven Recent quarter macro supply users quarter, the

for quarter record. the our IC revenue set a exceeded expectations, endpoint quarterly Third and new consecutive fourth quarter

XXXX quarter continued visibility supports growth volume supply and endpoint in fourth unit both current XXXX. IC Our

tailwinds growth for Looking further multiyear out, ICs. our to endpoint we continue see

Turning constrained supply, component quarters. again the to for they past four reader systems like shipments, our have shortfalls

yet reader although entered orders mostly fourth heading significant into see caught quarter ICs, XXXX. supply growth with for into demand, supply with to product when for forward we strong up fourth products. constraining still needs. systems the we to third have look our backlog, quarter E-family enough aggregate, we we systems ICs, market In For quarter, revenue endpoint satisfy systems to supply day particularly Like

revenue spot, revenue systems again shipments expectations, led a Reader a bright visionary Reader our and deployment. quarter loss Third quarterly retailer’s European setting were the by expectations. to gateway ICs record. met new expanded prevention exceeded our

unit growth solid demand, ICs. by reader systems E-family our Looking led volume into see in we rapid XXXX,

and, thrilled the a milliseconds; end-user product each our Impinj which I enables in response APIs making, item each with pair will for decade that endpoint Authenticity safety chain. revenue sustainability our a privacy offering connected Service of Impinj engine. the IC; ICs; mission benefit while ISO Impinj connecting with endpoint that protecting and item firmware from items. Impinj every Authenticity include those on dollars product Impinj’s easy-to-use platform, platform endpoint items, And available protecting Protected engine which new Impinj in. in items, an Impinj challenge Authenticity ICs first pairs world databases front, everyday items secure of improve genuine. enterprises verify partner platform privacy. end-to-end With and is Impinj of those to Only authenticity as that another hundreds counterfeits, who More and items. Authenticity Authenticity from supply looking forward, and we readers the legitimate using IC’s doing with substantial enable new connected Impinj ICs hope a MXXX, costs offering cryptographic in we reader authenticating services. can Authenticity, Impinj solution a is the unique inhibit in cloud for element its our to represents Authenticity new everyday Authentication for in Impinj dent recurring On improve cloud-based opportunity cryptographically the our authenticated of IC; those dialog from key focused that of annually. the the a a billions endpoint am in expanding people the an world Mode Comprising so, an live those counterfeiting, of the protecting launch product IC, by September of Impinj our make also key global the standardized product than or to

planned. strong loss project the continued RAIN-based we On deploying see with front, our European retailer, offering, visionary momentum. pleased retail as prevention continues The

their expect again to logistics, the customer in geographies every large We the IC XXXX and The expect supply endpoint we Asia-based generated to And meaningful closing, for North continue deployment volumes In meaningful quarter. in into chain team deployment Impinj American next your at of I’d large effort like for expansion the second the to generating quarters. third revenue continue beyond. this retailer’s tremendous continued member least to that thank self-checkout new of revenue in reader two global and quarter. drive

the our market review quarter platform record our inhibit users remain a with outlook. navigating delivered growing positioned growth, counterfeiting; I revenue You strong now financial bond position EBITDA; our while partners introduced Cary? all call strengthened its challenges. fourth and for adjusted offering and ongoing team of turn end to a first over demand. energized in our confident strong global Cary I to supply kind and new, and and us a and by will for opportunity, With

Cary Baker

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

million Third third $XX.X quarter $XX.X in revenue quarter $XX.X up million XX% XX% up compared from sequentially XXXX. XXXX quarter was million, with in and second year-over-year

XX% million, industrial normalize year-over-year $XX.X sequential in specialty XX% second fourth IC wafer was revenue up Accelerated $XX.X we in drove and although quarter will timing still IC endpoint endpoint quarter ICs for $XX.X expectations. quarter from third specialty And Third million growth mix above revenue industrial in million compared supply. and our our expect with revenue XXXX with quarter, third improving up XXXX. that sequentially demand and quarter

Third revenue in year-over-year in from and million $XX.X systems up compared quarter XXXX XXXX. up second $XX.X $XX.X quarter quarter million, third XX% with million X% sequentially was

revenue systems we declined. basis, demand, strong reader similar expect quarter reader navigating reader IC increased systems revenue revenue continue while gateway component we basis, a revenue as year-over-year strong driven revenue Third a our quarter sequential revenue shipments. gateway reader exceeded declined. was shortfalls. IC and fourth On IC reader by revenue expectations, Despite flat increased, reader On and

quarter XXXX Third specialty was expense expense specialty margins, compared industrial XXXX product Total and was quarter and quarter second XX.X% by mix in MXXX from was larger gross increase million. higher quarter quarter margin sales by and product ICs. with driven million. margins, XXXX. IC and was year-over-year third decreased million offset and IC of $XX.X in Sales the $XX.X and was in increase second was mix, million. quarter development XXXX. Impinj in The expense of The third million sequential was richer a endpoint XX.X%, $XX million, with $X.X compared mix and administrative $X.X Research industrial $XX operating endpoint both third XX.X% fully by reserved and specifically IC inventory. marketing expense driven General the partially

operating We the fourth quarter. expense expect in similar total

Third million, in XXXX. loss quarter of XXXX quarter a with third $X.X quarter $XXX,XXX and million compared adjusted EBITDA was $X.X second in

margin EBITDA Third XX.X%. quarter was adjusted

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

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

third second million, ended equivalents to third cash, $XXX.X of quarter. prior balance Turning million quarter million $XXX.X in totaled the sheet. quarter We down quarter million, XXXX. and $XX.X Inventory slightly in with $XXX.X cash XXXX investments the and with compared from

and provided cash cash $XX.X flow $X.X activities million. million. by was Property net equipment was $XX.X operating million. Free totaled quarter Third purchases

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

specialty endpoint expectations, quarter gross the timing industrial ICs. favorable third shipment First, of primarily due margins exceeded to and

endpoint Looking millimeter IC stabilize XX% gross the margin create further XXX forward, opportunities innovations XX% for to to at in normalizes, anticipate gross range margins we mix accretion. least until as

fact in Second, balance a early quarter that scheduled timing will the remains late quarter we customer supply That shippable the shipment. for of wafers first extraordinarily currently fourth meaningful that anticipate sheet our lean. mask receiving are quantity

than anticipate sufficient has equipment quarter, shipments. below despite will endpoint endpoint XXXX. delivery catch-up in fall delays expected the impact some IC IC that resulted post-processing capacity our CapEx now XXXX grow fourth year-to-date. XXXX we lower equipment timing Third, will expenditures ability And have capital to Regardless, in our we not

revenue growth our upsides XXXX. driving from layering partner sequential foresee in in, XXXX in fourth endpoint and single-digit wafer foundry IC continue IC quarter increasing first endpoint quarter shipments we again mid-to-high as Finally,

outlook. our to Turning

million We XX% fourth with increase year-over-year a quarter and quarter $XX.X midpoint. the million, expect revenue at $XX.X in fourth compared XXXX, between $XX.X

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

in Back reflecting On the the $X.XX to execution one breakeven. the diluted $XX.X we net this financial and between million, bottom outstanding line, leverage, XXXX, Impinj we to fully non-GAAP quarter, want earnings-per $X.XX. income of particularly expect $X In to operating adjusted share key in for thank objectives. I our closing, EBITDA returning and committed non-GAAP between million team driving

We XXXX have positive four continued consecutive for opportunities looking third ahead, quarter with And improvement. setting now a see operating delivered leverage record. of quarters adjusted EBITDA, I new

continue I towards that the as look now operator next goal, we focus cash Even forward investing call session. ongoing to the to free progress to consistent to our MJ? we our in our now business, flow. question-and-answer turn the I generating turn open goal. will

Operator

Thank you.

today We question from ahead. first now question-and-answer the Please will go Jefferies. Lipacis begin Mark session. from Instructions] The [Operator comes

Mark Lipacis

supply. thanks Hi, on executing the and my taking congrats for questions on

that you get realm to as you some On to you capacity just consistent is the And again. could know you to make the the would going we upside? hit consider industry strategy you you the just you questions. days, up of question you frame putting a for the capacity three you from And would inventory know you supply that of quarters guess a XX kind then them Or on that around next an wondering about know to half know you know then people forward going possibilities know you customers capital three of the often you out more get become that of we’re correction two better your know maybe Thank consider have Cary, could And available, waiting like basis? have mean you just industry supply just the working I building there’s loosen cycle. then what to talk follow-up feel lot how of a have quarters a to aside believe inventories? you I’m a if going of XXX? much into more that’s I wafers of restocking And ability know go year first know are supply – would Those be to into who – you the tight and know by and year. of the you. inventories, and to followed

Chris Diorio

it closely the start. you, their capacity about Chris, they’re of Mark. here other deliver is shortfalls to as as talking supply from and they exceeding This our quarters, customers plans, work that their timeframe opportunity foundry well demand couple up we’re I’ll Thank more our deliver over additional from right. supply as other generate fabs wafers industries. any both to is more with In the All able next frees to partner wafers, and from as

We are those as We’ve modest available. positioned to seen become already. take wafers upsides

to quarter supports foundry expect fourth endpoint for XXXX with on will in from work unit get closely you that current we seeing And XXXX. can how visibility continue goes growth visibility – to market upsides or depending supply and volume continue we we We upside, prioritized even know, we in that hope IC our with the them. are take our we and modest partner, what

In terms how our and at supply you’re kind to getting take to Cary. more it inventory and ability becomes if I’ll is take turn over we which build, much of what of available.

Cary Baker

thanks Mark, question. the Yeah, for

if would. absolutely we have we to were yes, the So rebuild supply, opportunity to

particularly producing lean, goods very out within following the on shipping units them where and weeks. we’re We’re our effectively finished

building would cycles. incredibly our have worried we life supply, build about So I’m not supplies, the because long products

increasing than was this RX, before five ago, introduced volumes volumes still than years it’s they’re growing ago, more introduced and year, Monza, year. model our Our years RX-P XX more this were

us lifecycle to the there a So product is gives inventory. long add that flexibility

in this and and supply then break that build will I’m same getting the us built I not Currently, us. enough to reports demand hopeful are satisfy first be see I’m free that’s inventory for a that in don’t the the you inventory. supply year, I incremental see modeling position market Now, the to

Chris Diorio

of during of we Mark the pandemic, Chris, inventory. built I’ll units of the you this billions add know is And just depths many

the quarters. at what short our we’d situation, I that that we opportunity inventory, do said, fact, given from so essentially In ever that been considered products, two long the learned life this time especially was build burned inventory to around, the an through like And outsized inventory since. in again. say time that Cary as and build, we we’ve to And given of will

opportunity about, is And our But all we existing you’re of our said, I so the options work partner. looking supply. to that like are for talking with in the at timeframe here closely foundry

Mark Lipacis

thank helpful. Great, you. Very

Operator

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

Jim Ricchiuti

Hi, areas you’re thanks. the I’m you afternoon. wondering as Good at constrained. look clearly two where of the business

the based know in you’re You of challenges conversations you the First, which part know on terms normalizes? that supply having.

Chris Diorio

Yeah, Jim. thanks,

And that predicting constrained future of both side. systems IC, up. on the very and earlier, probably components of you to business on to to IC because we our is a see system going do. at our start a difficult. we up endpoint yes, know seeing endpoint So I’m are we’re systems terms imbalance gradually up got the the the we’ve sides hazard free we’re that Obviously behind supply – are will so the on guess free we of side lot supply far here catching in time the demand same

on my that change facts the So situation based that’s would course, be will normalize expectation time. ground and we systems ICs do. could endpoint any an looking today’s the see before at expectation the on forward of But

Jim Ricchiuti

It are relates know normal and year – guess just to negotiations. I of beginning really you have I down this position the – a for this about to how a as you’re third your go comes you, know question you a follow-up second the price I year. then enter in process? you’re or – would you entering And row now good you in sounds end it. Got that, like frankly you pretty wonder know year to Chris into you’re you how leverage, think your

Chris Diorio

Yeah.

to going then and Cary. say over Jim, Jeff words I’m few to and/or turn there, So a it

We increases from are our at looking currently continued foundry partner. price

market demand. constrained continued and course, supply We of are at strong looking,

us So that’s right the front situation in of now.

we bit those of little like quarter? And the fourth and a market as the in dynamics into at don’t can. on margin Of to add kind you course, on why much say about want then Cary the same of the opportunity our anything as Jeff, deliver integrity time, grow model. you would the we opportunities to

Cary Baker

certainly. Yeah,

has round our XXXX. So partner price of increases Jim, foundry signaled in another beginning

to should same previous handle the increases. us those expect You on we way the of price did rounds

will of the in We on model. pass look maintains the that way to costs those customers integrity to our a margin

Jeff Dossett

Jeff. This is

I customers we would that, and on working of only very supply fourth think partners And available behalf on their other is of pricing into thing the been constraint, quarter has that the behalf to their of closely, of supply negotiations. is you the end been typical our context extended opposed with of engagement our our the focus very to know this add have as I that primary end partners year optimize market. efforts hard in the

already our said, So outcomes new the to supplier And costs end with our to pass continue to throughs through to partners for on well work pass Cary those and service improves. increase customer to programs focused we plan our be outlook and help respect deployed continue to activation closely when as that to conversations have supply-focused as as programs customers. optimizing as with of the cost effectively partners our

Jim Ricchiuti

I’ll rejoin the queue. Thanks. Got it.

Chris Diorio

Okay. you, Thank Jim.

Operator

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

Mike Walkley

question questions your the and in to Great. I Thanks on Authenticity. dig my strong more my execution little is, again. for congrats taking Impinj Chris, a guess,

impact the know revenue place opportunity with should how start might financial it and know to time model? trial how we know You the you think customers recurring that it the you about might you when

Chris Diorio

thank Yeah, you, so Mike.

offering opportunity And recurring it’s expands of every is Authenticity platform our revenue first Impinj include our services. endpoint ICs from element offering it so comprising an essentially yeah platform to really our cloud end-to-end So platform.

know is meaningful. authenticating You a service IC opportunity revenue revenue cloud the from endpoint monetize of we time, years spent the And course, at meaningful, items. opportunity building is will same the we systems which

that model our opportunity authentication progress as significant XXXX as It’s on Given opportunity different idea cryptographic a it’s items. it really really we’re I really updated this expect we now, we revenue, will lot excited brought And here new to into really push and everyday the time, make in this for long as progress a a we’re we keep right one. of else offering bringing and to of this on and us. market investors us the launch, to everybody And too working invested make excited But what early and front verticals. we about about by of energized a to you market. hard in in personally it have

about quarters am I were I’ve know for and You that to talked thrilled it it. launch able we absolutely

Jeff Dossett

sector Mike – both up this enterprises the leading insights has opportunity from of I with of priority. clearly And and – the executives associated been a consistent they or is talk to market. and and lot create Stick observations Jeff. value with have how clearly and about is are significant focus brand value they counterfeits topic a engage a the lot value erosion lose very their talked brand we a of about situation.

the come Authenticity of expressions very to items. conversations of everyday to we’re our And already new able beginning to be we’re a which build the authenticity solution pipeline. category, enables whole excited the to whole a interest approach new to with to partners begin craft So engine, to improving Impinj get those to

not in many apparel footwear interest more. anticipated, but other many, we sectors, pharmaceutical, We’re in including only and as also materials and building seeing

new earnings vector quarterly forward to we long-term you we a is And subsequent growth updating this and calls. Impinj. look hope for to So a create opportunity, in

Mike Walkley

congrats guess just I on the my that question for getting follow-up Yeah Great. I from Cary. launched. for and look updates

the your see on adjusted great really keep of where about know thinking and half business? the inflection to model year free and in guess over you guidance. any way you a this three back to might I in investments in Are this way be it’s the know there quarters, future years You about above point flow that plan cash them Is be last two think margin fair making future to to that EBITDA forward? you Or given based years? going

Cary Baker

the so starting Yes, question. Yeah, is the for a as point the back I half thanks so that in near-term. good the year of think

opportunity. incremental in in massive front expect our to drive business, will the investment continue as expect to front of invest We see us our opportunity continue leverage model in – that. we to in and and will we we’re additional that we going There be of

should assume R&D is investment in line. You of that the most

at as So same your long-term models, that R&D think assume you as grow rate the roughly we revenue. about will

take marketing we on endpoint is there network investment and sales line, to IC but both leverage of products systems side. sure, required and that the have market to On our we a to partners side be strong the the

clearly will investment be be in be to while rate same G&A won’t And revenue you the leverage it there will marketing, side. at growth. of then sales the there So continued have know and in

stock As the QX made XXX% and to from year, recall last on XX% management to stock to very the you transition component with a our look XX% the we cash impacting OpEx. non-GAAP cash in decision bonus near-term

same cash us should in XX You to weeks. a XX, next beginning XXX% take – step to the expect that

will in a step the heavier the base, the OpEx of expecting So I’m in that tax at with year, QX. audit along up payroll occur the always reset beginning

Mike Walkley

That’s pretty helpful. that Thanks. Thanks detail. for all

Chris Diorio

Mike. you, Thank

Operator

Please question from Street Troy next go Capital. Jensen Lake comes ahead. The with

Troy Jensen

gentlemen. Hey,

all, on of First the sustained performance. congrats

Cary Baker

Thanks, Troy.

Chris Diorio

you, Thank Troy.

Troy Jensen

problem QX specialty say And a just doing XX% that’s unseasonably you or To revenue, the so for you were that, you were are That now recurring little $XX a industrial talking time I kind guys. seems strong in right. and – margin you you get year I were probably strong. about the and challenge to you for Hey, But was of you’re gross know you how guidance $XX.X know already. sales and it ICs XX%. a last ago million Cary, of know bit million didn’t Laughing and on like there

gross to XX%? margins you just talk how us can to get XX% So through

Cary Baker

and biggest impact specialty The ICs. has been Troy. right, you’re the industrial so Yeah,

orders and requested we a of little our it QX. We in was that that that modeled or part in different got quarter time. customers planned This demand QX had bit was

the So that normalized there’s That forward and gross see margin, a XX% our level a consistent I a looking in the basis is effect. look XXXX. for we as at modeling said, quarterly I that are little bit to being QX XX% of that level XXXX preliminary a into modelling pull for

So been gives the the I specialty of that this confidence to think that at me created some the that’s that at that’s this good created, behind at on least be us nuance been clear, very moment, nuance, and industrial is point.

our for You end what’s But there that’s will high embedded note assuming I’m that XX% modeling right right in the range to is I that similar the in the guide spot that now. OpEx think us XX% of again.

I IC mix think is normalizing. endpoint

not on we as product our done there’s innovating opportunity continue millimeter increasing there, more for XXX line. We’re

Troy Jensen

it. Got

Okay.

wafer follow-up, Now production? Are about out just with can the know to guys my spread try supply this diversification? you wafer you to you talk doing there anything are

Chris Diorio

about foundry time we focus market. the earlier, on that them, I Troy basically to to position, working them the upside and the least is launching bit our a work into couple mentioned with our with wafer supply them to of products get over we’re developing little existing opportunity spent had drive talking our with new to our so much as with and in partner, Yeah, with next at timeframe the closely quarters,

there’s number more to wafer, to continue portfolio, per the way. that As Cary noted, XXX those product accretion our supply IC lines, dye of along increase potentially millimeter opportunities some advance and there we get are opportunities as some margin for gross

our timeframe the partner. within so existing And talking about the foundry opportunities we’re with

Troy Jensen

Yeah it’s the Keep understood. up work, good gentlemen.

Chris Diorio

Thank you, Troy.

Cary Baker

Troy. Thanks,

Operator

Please next comes ahead. goodness go The Instructions] Scott – Capital. ROTH of Searle from question Scott [Operator

Scott Searle

questions. quarter Nice the Hey, guys. maybe Hey, good XXXX. diving taking again, on afternoon. into Chris, Thanks my for job

color pulled large you about You’ve are past, America, should we visionary if What ‘XX? bit it about the the of the customers? use of getting think talk could given into about in is some as more that cetera. what the little some in you’ve customers in verticals get to logistics the your end to relates cases as existing of as how end forward? et a some the I’m mix pipeline North customer, And European else of you wondering talked opposed the we know

Chris Diorio

Yeah, obviously about XXXX Scott, looking at the spoken already. about specific specific talk opportunities, I we’ve can’t customer and for thanks ones, above beyond question. what

I that it’s However, I retail that overall. other And companies apparel a – and other large expect will apparel opportunity And logistics you’re general beyond We well endpoint the which general expanding is from volumes beyond. than looking think really, at merchandise – much it’s it’s opportunity do of. mean, retail say merchandise, I larger aware to quite we are large, to other from associated chain XXXX and see and you can IC in kind of to it see supply calls executives with hear and growth opportunity. we turning

in food with now, opportunity There supply of most associated opportunity. that’s opportunity, which for because the say logistics chain that is shipments. with exclusively, shipments associated include rather generally is is and chain logistics we not I most, food and supply So a than most

And supply Impinj those together, opportunity then a I us even in gigantic whole in with of a chain And opportunity larger Jeff layer of associated know is and already pharmaceuticals Authenticity, that devices. to in penetrated makes market. we’re industry is and the as the achieved. in front we larger. So we’re including industry food in sub logistics, still opportunity our – far than X% even you the all opportunity logistics chain medical spoke supply If the and which have opportunity

truly in market future staring verticals. multiple that about we’re open XXXX And into and the We’re seeing up excited beyond.

Scott Searle

Great, it’s very helpful –

Cary Baker

Scott, this is as think you Scott, – Cary. about

on expecting first the and of we’re with my in QX pacing in the I endpoint mid-to-high prepared remarks about that mentioned think you IC quarters, IC QX. endpoint As revenue single-digit again in growth

opportunities We of components growth based end And reader current in not into are systems side project. persist is I That going to that And deployment endpoint not XXXX ICs first at European relates deployment generating as timing meaningful continue supply project reader And customers’ we’re complete half systems of more we revenue half phase limited, prevention the it store the will going business XXXX. the win supplies on shortfalls into manage still components the loss demand. of because a of the perspective to overall this next we a those visionary XXXX. be of going both to very ICs. of factors we opportunities least have. QX shortfalls, on desires systems in with business well. as And this is day, limited the customer. demand with But from to the large systems are for the at two then as our we availability endpoint other going the those second quarters expecting throughout revenue that well XXXX balance signaled believe are there need then to component consider and as to because the those as flat retailer. through brand for This to have I

Scott Searle

you What in per-unit thoughts early very it it’s the that earlier Great, a model, Is helpful. but it know thinking Thanks. early if I question of or And a subscription-based on Authenticity. to model about days, lastly, guys could how a are model? terms the usage on model? follow-up on Impinj are front? just Is Mike’s I it?

Chris Diorio

Yes.

Scott exploring. So we’re

that now needs. right different So in of with will engaging verticals actively we in use details and cases have terms different different are partners the model,

key both user. recurring – platform us segment on click on per from the revenue different complete entire entire exclusive comes Impinj And use from together revenue the really the should on about generating with know, and you is in. the generating focus focusing linking pushing to platform them models for IC subscription I from that excitement and that platform. thinking of and us the as that’s particular depending But particular think service, be offering needs endpoint an of authentication to the the to the forward you be thing the really we’re where others end us opportunity. how to Impinj going recurring that’s And

Scott Searle

so Great, thanks much.

Chris Diorio

you. Thank

Operator

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

Chris Diorio

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

Operator

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

disconnect. may now You

Impinj (PI) 27 Oct 222022 Q3 Earnings call transcript