PI - Earnings call transcript Q3 2024

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Operator

Welcome to the Impinj Third Quarter 2024 Financial Results Earnings Conference Call and Webcast. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Mr. Andy Cobb, Vice President, Strategic Finance. Please go ahead.

Andy Cobb

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

for open Impinj's Hussein COO, Q&A. will We will questions. the then join the call Mecklai, us for

company's prepared You trended the website. plus management's on remarks Investor can find data financial Relations

statements future call SEC. materially such quarterly we We are subject undertake do We Reform expectations actual under will as in and in because basis financial and uncertainties. as that and Any XXXX. such statements, forward-looking this believe the on today. about these and the and a our reasonable required make the or disclaim annual results obligation differ statements except for by with outlook our risks We any Whereas describe Litigation law. have Act file to to risks of update uncertainties based any alter not performance these statements making our statements, we forward-looking expressly Private we of Securities are reports are forward-looking could

explicitly are except metrics, revenue today's all call, On financial non-GAAP. or state where for we otherwise,

metrics. While or non-GAAP of financial balance for GAAP. except earnings sheet flow for and most a reconciliation metrics GAAP cash free Please comparable our cash flow metrics, the release refer to to

of December and Scottsdale. outlook, UBS in Global there. look the our X that Chicago Before XXXX XX on Industrial with to in connecting We Technology results turning November Baird Conference in Global many forward will on you to note we participate Conference the and

to the turn call now Chris. will I over

Chris Diorio

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

revenue Our third quarter were our guidance. with and profitability above strong well results

both continued chain apparel revenue, in in and licensing and general retail quarter, drove applications these Strength supply merchandise EBITDA and results. in new quarter strong million revenue last with its secular logistics, adjusted and steady both financial $XX set third growth records. Excluding long-tail growth

leverage in will As Cary highlight, model. these operating our demonstrate the again results

third Unit the new with shipments than prepare record and IC consecutive holiday endpoint doubled. for And revenue quarter, product a shippers as set retailers MXXX our parcel expectations. Starting more season. quarterly third silicon, for quarter exceeded the volumes

Looking quarter, decline versus seasonal expect IC revenue endpoint market to partially the strength. third modestly fourth offset with we to trends by typical quarter

We more MXXX-based expect inlays market adoption also MXXX as qualification. achieve continued

Turning to reader ICs.

quarter volumes for Third our and both exceeded E-family demand stronger-than-anticipated driven ICs. expectations by Indy

will timing E-Family legacy family fourth we the as push to we large term, supply market. rain logistics at wind Longer quarter, revenue down lower. broad across end the see Looking project chain our adoption continued user and ICs, Indy

enterprise successes foods, perishable user year label quarter, rollout On we prevention of public solutions, new North and driving strong gateway fourth and Fortune with our to general merchandise the general next. self-checkout volumes see revenue retailers spike tagging. loss driving European in supply are second we us, large and of to both the logistics them, American American IC phase the volumes. ones quarter retailer, visionary driven fourth expanding And endpoint by increasing merchandise These growing expect markets North large enterprises IC consumption like in current the ongoing volumes. continue chain ramping, additional endpoint like XXX solution and this and existing end retail very the At IC

believe that today our Expect our continue Our much than and cloud long-term current success. solutions, are us pipeline services in larger we enterprise account including to key is software to investing enterprise base.

as restaurant supply grocery as Touching now well rollouts chain and broader continues, on tagging buoyed food multiple the pilots. in conviction market, quick-serve our by

RAIN in general And than digital retailer any merchandise, North their still devices the opportunity statement we at of In consumers reading RAIN retail about It connected is of galvanized IC also early least the expectations retailers magnitude today's are an While engaging in mobile at order seeing piqued in pioneering the Qualcomm's through endpoint product continue piggyback larger on we markets. American the interest passport rollout days, items. a as large retailer. data carrier. of

Think At total X% Florence, cost RAIN is no winning market, overall With the our penetration I we Alliance connectable the connect still items crowdsourcing on case, consumers highlighted use everyday additional meeting their today's one recent footprint. XX,XXXx with race and less of than at potential the which laser-focused in everything. remain of location trackers, RAIN world. Bluetooth to

delivered third very we strong a closing, quarter. In

and dividends, I've paying the opportunity, finally by continues seeming ages, like consumer heartened for focus reach. what solutions I feels am which personally Our touting been within

we expansion category ahead, endpoint opportunities. see burgeoning IC growth, and solutions continued Looking secular

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

your Cary Before I I'd Impinj outlook, member tireless over quarter again fourth like every turn review the and our for of the call to for effort. financial thank team to

to incredible I fortune with by work always, feel good Cary? honored As my you.

Cary Baker

you, afternoon, Thank everyone. and good Chris,

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

$XX from $XX.X Third in quarter third million $XX.X down quarter X% year-over-year endpoint in from XX% million quarter second IC and up sequentially million, revenue of XXXX. was XXXX

X% revenue, quarter grew second million IC $XX the licensing sequentially. endpoint Excluding revenue

seasonality. fourth but of normal quarter we on expect revenue endpoint decline IC the to favorable side Looking forward,

from quarter million our quarter up exceeded X% was by third XXXX. and Systems second in both XX% strength $XX.X $XX.X $XX.X from and systems million sequentially expectations, driven IC test Third reader million, revenue quarter measurement down and revenue in year-over-year in XXXX sales.

revenue systems expect Looking to forward, sequentially. we fourth increase quarter

current increase XX.X% with primarily quarter and to was and XX.X% XXXX. XXXX the year-over-year margin sequential gross The excess was due to revenue. quarter XX.X% obsolescence charges year. less in was licensing The third due second in in compared quarter second decrease quarter Third primarily

driven revenue, Excluding endpoint by quarter IC sequentially, licensing product mix, XXX-millimeter points XXX increased margin fewer basis the including third wafers. product gross primarily

to Looking sequentially. fourth quarter expect increase forward, we margin gross

XXXX. with below was was and by million $X.X million. $X.X development expense expectations, million. Sales compared and $XX.X in $XX.X million $XX.X expense in million. Operating second was third expense and XXXX driven timing. expense operating General Research engineering and expense was quarter third $XX.X marketing quarter Total program administrative was quarter million

forward, quarter to we expect fourth expense operating increase Looking sequentially.

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

Third quarter XX.X%. EBITDA margin adjusted was

Third quarter GAAP net income was $XXX,XXX.

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

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

cash million. capital Third $X.X quarter flow million. expenditures totaled Free was $X.X

I X specific items results our highlight and our to outlook. guidance, want to turning to Before

systems First, and sequentially, authenticity gross a endpoint Asia-based lower XXX-millimeter replenishments into driven expect endpoint IC margins quarter we fourth volume, mix to of IC larger pilots. increase revenue by

as purchases. we last we our Second, signaled quarter, XXXX half increased wafer second

the some wafers fulfill demand. growth of ahead to and remainder of those second We inventory stronger-than-anticipated half XXXX XXXX to move will a

adjusted are range Finally, presented with the the additional XXXX we at revenue Day. long-term quarter, Investor our and EBITDA disciplined third margins investment approaching our in

As revenue our scales, and generation. leverage incremental cash we anticipate flow

outlook. our to Turning

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

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

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

the for the will I customers, to turn team, your our ongoing operator our investors Impinj and In our support. I question-and-answer closing, the now thank open the suppliers call session. to want Gary? to

Operator

Our with is Instructions] Ricchiuti first Company. [Operator Jim question from & Needham

James Ricchiuti

reconcile trying about to to systems you that to some of made. some you that had of go business. the Wanted back I'm the the comments commentary

spiking European this about QX. phase You're talking, I solutions visionary in -- retailer, transcript, and think, talking your talked you're the about about, the about you've retailer of current text thinking in talking

seasonally, QX business. a quarter better in right, the systems is Now normally,

systems So a of stronger are of the mentioned? factors result quarter just you some anticipating a I as

Cary Baker

things Thanks And Jim, for question. this interpreted is correctly. the Cary. you've

to So to expecting sequentially due systems you highlighted we fourth are revenue factors, and quarter a few couple. a increase

and of of QX. little ongoing bit. typically years. a our revenue prevention self-checkout that's will well. their and, some in specific systems a in capital terms before revenue to volume matter the little that elongated from of the fourth stronger into business this the QX in retailers benefits a rollout. a And adding tailwind then shipments for a anticipated fiscal and the deploy though ahead loss as the time systems therefore, result, finally, then been First as deployment visionary of Indy And has has in last And moved we're bit as those just normalizing historically spike QX quarter of baseline, seeing We QX. end-of-life And seasonally process end as QX IC quarter into of have second the quarter, QX to look customers European to a reader

James Ricchiuti

unrelated. actually question, follow-up A Okay.

in Your for and the was cases. bakery stores, Chris, adoption if a and large frame an question they're I'm seeing inlay this use customer maybe, earlier about early particular, I might look the talking you, how one like could the opportunity, is being today RFID industry. wondering, think that that you for of the grocery

in both that. can in been You've bit about the you the and wondering I'm to food, little QSR. a obviously getting talk positive more opportunity grocery just if

Chris Diorio

Yes, you. Jim. Thank

the talking been past earnings food calls. I've on couple about So of

I little you play it's well time If on size about see coming in here be this wanted big path. will exactly of food meaningful supply of in the We're what start some given restaurants, But individual although size will out. opportunity. what slow such in will volumes table you in things because to this these now -- and these We opportunities in be would now it a bit give and -- seeing volumes chain food XXXX. XXXX a recall, And the feel opportunities. gigantic really very it's is still -- enterprises, food there We said. just can be some talk and seeing not a right the quick-serve grocers. how I to to we're I think overall the positioned

more about excited the there that there food market the you So out . the We're and saw, announcement today. excited opportunities in are we're opportunity. just by

Operator

is question Piper next Sandler. Kumar with The from Harsh

Harsh Kumar

like results congratulations I it it's team. first on the whole the Maybe for bit to quite seems one to wanted First outperformance of one but broad-based. of your a question stood very ask Chris, quarter there I I X. that Chris. all, the results. was had had if mean thing September very out, you in strong

that ask one However, if that stands which you if would quarter the think, there rest one number driver results, in question, you driving greater than that the to was be? was, I

Chris Diorio

Thanks, Harsh, One for driver. question. the

driving we're in Harsh, You apparel And apologize paying strength know, give steady merchandise, solutions long-tail chain we're logistics that, I efforts into. I can and in you general applications. seeing to growth dividends supply and going for solutions but the seeing one. secular that And across I'm retail don't think we're growth our

industry company, thick areas feel a I in we've of really that worried adoption several adoption, adoption. industry And at adoption, just any said. we pushing not overall is I particular we're the in areas. market continue. industry that are We So and of areas, now food we, in market as kind food, the talking one market, if announcement, that look to the you pushing but broad-based not are just broad-based And those hard the that broad-based about hard see poised been

So conveyed I my about feel And really the market prepared hope that I overall. enthusiasm my remarks enthusiasm. truly

to sorry, they're meaningful. but you I'm X, I all one. point I can't So gave

Harsh Kumar

question a I follow-up, This are you trying it to is seating you color. seems like seeing had X-part little pin down, very but adoption. broad here maybe a a bit. good I on was

X, like down, will a penetrated customer? the part adoption give you XXXX. then in this where It segment, that some could between gotten see balance could like you'll And of an your mentioned from from I Europe into again just spike logistics curious seems curious business you in in XXXX the idea is customer there? and How in visionary to What your us already. but give a will is happening? it are seems of interplay then you X. else increase those if of they is was it logistics separate are. systems life second European us down? if And customer. I've much positive. the with your I one You logistics question or client going happening other was end something is thing come versus the customer the What Is on But be

Chris Diorio

Okay.

customer. volumes back Going cite are. the good really I has think obviously or to you can't their very I that first execution We a been remarks. can with they where to What say to listen strong. have Harsh, is I very question, their relationship But need

said public They're But a they're Obviously, year this I strong. positively. in deployed has next mean fully picture it Execution way, I look wouldn't in I public before. are fully be a the that if deployed. increase you -- think I most up they and that of positive and they're best pick things year. been terms word are. if they if machine, was think machine used like in not going the mean very statements, I I or next to our give at their where they the executing

IC of expect increase forward, terms endpoint that items. volumes, is timing-related year. the go some we In next I project to see

As IC I time. going more you timing. more lot just for anything customer in noted, got But now project specific is down but read on we wish I at shouldn't I -- the really to it think specific a they've fourth to could project say into truly projects at themselves. anything meaningful quarter see that. answers, obviously, give timing reader I the point in right move you that due continue But It the this speaks can't pace. I and

Harsh Kumar

Chris. again. helpful, Very Congratulations

Operator

question with next is The from Troy Cantor Fitzgerald. Jensen

Troy Jensen

the also quarter partnership? here. here first What to to and watches and bit an just Could all little the talk implications there my this I another more But related just whatnot? question Chris. the you update And timing? great. great say just -- about Maybe for is iPhones and want getting tablets Qualcomm on into are at be congrats a would and RFID maybe

Chris Diorio

Troy. Yes,

the bit. the coming because industry, going kind devices to mobile that might forward such major a of as for to statement the going go product helped Qualcomm Europe in public from that and passport a thankful data exactly RAIN a one, little but by essentially has no ball little is in move that I set I position to retailers advance now the statement standards part a a about in very as moved combination -- bit and it's to this want with that Europe RAIN So I'm carrier . be I'm saying overall PB stage has of long statement implementation. the start question the Impinj within a digital RAIN dramatically RAIN longer on but the in push EV the bodies of public whether with out of

Alliance myself slight being in entire be the in data consumers that prepared either the are mobile, of in stuff advance pacing going of it's going at those of but time the consumer happened, the project forward, particularly Florence, the services able implementation enterprise that be back-end the statement in items. of to has first consumer a the and engage declined other be we mobile. in us believe at phones As connected the Qualcomm to with community of that it's resolution readiness get going RAIN all line and terms terms to Qualcomm that's the to in then mobile. some opportunities than going mobile, follow-ups for to be I to enterprise meeting don't following actually to other say it's

be end. a a than it build or the significant be minor super are to the one. to getting going so I'm that on a It's So device. last right. excited. firmly big to that shouldn't because take back was entire I'm radio I have excited think introductions, big to These it mobile RAIN into is big when going personally up to bit quarters. going -- But right. We're And but focus in last think incorporated the was But get incredibly months when one. longer We're to back you new going thinking

I the answer exact date, my I best your give did question. didn't an do. best you to that's but can I So

Troy Jensen

enterprise specifically No, is said only in ask great. guess, the Would applications. the into be first you to it -- was I that mobile Would implementation my that go logistics? question. I logistics,

Chris Diorio

carry of around chain it's because they But mobile sets, No, those think supply logistics chip to enterprise mobile that they're employees will broad-based essentially base devices necessarily. enterprise broad be they're in it its devices, into are Not go carry -- same go kind going stores, be devices of those basically enterprise that into mobile phones. mobile the devices. the of out centers, those chipsets

implementation going said going is not the adoption. be So not -- the readiness. it's going be the that's -- not to implementation to why what paces to phone is I be It's

And so connect we -- all of just for the on us, work in to that needs not items. readiness entire to community, to consumers

Troy Jensen

hoping thoughts on Cary. couple does for it you insight in was kind here lot gross follow-up Awesome of the guidance, how year? of the margin give is A could roll through be of in any I much Or spike more kind QX. little quick any would excitement. And us Yes. bit of next a there incremental helpful. and just

Cary Baker

Yes. Sure, Troy.

QX benefits So a if margin could we're our Understand there's you around in that you calling XX%. that to a guidance, reasonably get unpack of out. gross couple QX

First, talked shipping then revenue which quantity, but little are we with authenticity that strength richer the for a profile. us. high-margin higher-margin on about therefore, those already see mix also into the systems Asia-based small some a ICs endpoint we're higher products those in bit there's And pilots, we IC, systems,

I the Then of our So tailwind that gross quarter remain plays at in clearly, gross Investor would in the bit accretion. MXXX gross margin. as margin margin . XXXX provides we that over you the a a that role into we little term, Day. long a look outlined say confident targets our And fourth is what

Operator

with Christopher from question next The Susquehanna. Rolland is

Christopher Rolland

in monetize there, is and hardware. more Qualcomm Just for provide economics reader any are a driver any either there mobile adoption to on Or if guys? about like IC general really just talk topic endpoints can you this device IP you of maybe Qualcomm mobile side, there or on following the device? the does that up Are Or ways as the the well. just

Chris Diorio

Chris, for for in really only is consumers. little of the sustainability industry market advancement driver Yes, market a and I'm think differentiation privacy, is also services pausing I broad-based question. adoption; and around here. Differentiation in bit protection authentication, one, but anything a that in number as Without the should two, differentiation advancements market. thanks those think the features security. saying The driver not a cloud the support it, as number you about specific, and

you the consumers rely think for enterprises to in engage that So things prior it that about the connected on items, to. their as and opportunity through engagement, spoke

So and equally IC a perhaps so important as a in as you and foremost of ecosystem opportunity broad think broad phones. an less and the endpoint as opportunity first ICs it play much for

Christopher Rolland

Understood. I all. you was wondering could if just in at any share the economics reader

Chris Diorio

answer Yes. I directly. can't you I are. what told that the prices question

I We thought gave that And terms highlighted, the are process bunch that services and monetized part those software just and said of our by of large, of focus on publicly by But just anything are things endpoint ecosystem opportunity think a the of see those what haven't huge areas. surprising a you cloud I front. ICs as price. things the the It's amount, stuff. endpoint at we the kind price the gets our which it in

Christopher Rolland

Excellent. merchandise. for food talked order and And the Chris, a general question, second bigger magnitude, I about think you then of

that's that if So I incredible, pretty correctly. understood

expect volumes those. your products, be attached $X.XX Is and, are lower them could be there $X.XX to disposable? you Or products call be, reused fully to these each by these it, As priced could which customers? at to tags, and which with course, any point do of lower higher

Chris Diorio

Yes.

to if view opportunity the food to the the drives and not about [indiscernible] get the couple individual see is comes packaging you to the new opportunity of straight any price that. label It's $X.XX. Number a the by is don't think much down. you for about opportunities, out of actually elasticity three, food price I I It that items. should demand, thinking point where market thinking two, be the even points lot there, items, tags. be and -- points you as points should a needed Number under And getting tag lower $X.XX Chris. point the disposable. price Food should It's number gate. reusable well So can we about one, the

In where a associated of even would or a allow packaging any with tag be item. it an would FDA fact, of think hard be part to scenario the to using

we additional need set So of price allow price labels it's adoption, tag gigantic years $X.XXX get the price on go and every ago. Japanese convenience I that Japan tag by that They about digital stores, It a $X average can items to The of to those makes incremental down $X.XX. cost industry the be points the was item best did that an probably the couple of will analysis food items wireless and point for identifier. be basically, [indiscernible] believe the itself in for such to sense discarded. selling said between

of you kind broad give benchmark a of need kind broad we adoption -- to will that get order to to a of So super for in where happen.

Operator

with is question from Guy Markets. Freedom next The Capital Hardwick

Guy Hardwick

Congratulations on the results. Tremendous.

that So partners could you of please. have on continued more certification? the around of us the And chip, the and update certified? been can of color MXXX How ramp some MXXX many sort inlay maybe us bit give you

Hussein Mecklai

This the Thank that you question. is question. I'll Hussein. fill for

enterprises. for inlays far, customers the we've behind inlay major of getting that partners MXXX, to the So products certification. have them, designing certification there multiple And that our multiple that service of their and we on the of their verge are process gotten believe additional X in are are major heard

soon general, products space. multiple expect fairly -- the and to coming see seeing we're We with customers to out break, in see we're expecting

the are the certifications It's able expected So growing market. like customers very with right ramp a product, had and getting their as promising. the now, ramp healthy to launch it hoped. pleased looking and is we MXXX be in It's they're and looks

Guy Hardwick

the systems behind a sequential as growth kind a guided us? you to revenue. follow-up for you can that in percentage there Is just number put And systems, Okay. on of

Cary Baker

have we of would -- endpoint and guided the it Guy. Guy. in be systems down normal is based I so Cary, ICs do to look guide we front the Maybe at providers. sequentially holiday Maybe retailers have is this for we'd Cary, our way endpoint down is both on This in context about reason way I ICs -- more think would And seasonality. to I signaled is QX the we seasonality of that in for on be QX is side down we the ship XX%. X% seasonality favorable ICs of season Normal the in endpoint that. and And logistics

if as you we use our point into that where can is. anchor our guide, an So and you overall systems business think back

Operator

question next question ROTH the Scott next The Capital. is from with -- is Searle

Scott Searle

it current little seasonality a on recent at Cary, Congrats And/or place. you quick quarter. on a still maybe, in Alliance all March it's DPP terms correctly. RAIN lot bit the early, but certified been -- years, sure Chris, and I the technology But into since the of quarter. multimodal be DPP. the of implementation? historically, know I with clarification, first kind the expect And blog original like time? do just it's heard of I over off, there's Qualcomm. sounds just want is been to this a make RAIN to it's advancements a then It momentum in post

I in wondering typically quarter, price you decline starting coming the March could how discounts, about had that's in, into right, in at us to something back in time. this are up if things so if kick is play we shape that remind XXXX? So was annual And pricing the point

Chris Diorio

take first So thanks, and Scott, question. I'll the

nothing because not carrier So because standards but aren't yet. data approved for done for carrier anything is an approved RAIN data say an yet the really that DPP is DPP, doesn't

approved data get codes has fundamentally not the goes With the users, statement automotive barcodes no going approved changed. could how has is dialogue just our others, includes Previously, but enterprise we retail the an being retail now dialogue push happened major but about end is push. accrued in NFC It to data what's thing, get it done So tires as and a is access space. how carrier and information. the It's to be be changed. carrier, beyond significant carrier, an is significant longer is I everything really the but and The could be an RAIN Qualcomm going was RAIN and now whether said, this to from consumer new QR before, standards approved. data and space dialogue

should signaled meetings expect of they commitments you given standards in those Europe. strength So in the multimodal that the end-user approvals

me to But the a bet Everybody place everybody it's place If supply chain biased. already RAIN in data my you carrier to will me -- think want That because being my carrier. consumers the goes you the mean the extend if to forward is mark of goes from opportunity bet, is I will position. I'm and want with to course, locked and stuff it the we've be a question other But doesn't to moved and pole going out. huge. in be

Cary Baker

I Okay, of Scott. second then the And question. part can your take

endpoint negotiation, IC an from So just conversations those pricing are now getting underway.

the historically, flat you're recently, More down. regarding seasonality we've tuned, been to So up. as slightly stay question say would we slightly QX being it To we'll right, over I keep it's you to place. flat that. your all apprised of seen seasonality, saw

I'm time against execute it you then as know endpoint that. I right and of now philosophy, X flattish kind guide ICs. of we I believe that's we quarter and go in ICs And here. thinking So think specifically endpoint why the think our we for

Scott Searle

as could Got if be you. indicator you activity pilots to helpful. of there if quickly get Very it in I lead Look, wondering I'm could seems lead front. And lot XXXX. us that maybe into know activity just either on that's understand a other a pipeline, the there's like or I we help systems but -- indicator. the

You breadcrumbs how just could other a that the leave into is of supply by It you shaping the start to service. food go of in terms us Walmart chain. about conditioning in pulled we as big I'm like sounds wondering talk box being guys up XXXX. are few if more

Chris Diorio

to in. going Hussein, start, I'm and jump free Okay. to Cary feel

XXX to my are very enable pipeline as our is business publicly is doors, Fortune themselves effort who Those to software prepared sortation, us around We our inventory, solutions, who that publicly. typically customers XXX are until parcel end can and in just a our use including our needs the Fortune our additional said ICs -- services. remarks, needs. putting into cite we're large. fixed enterprises coming dock systems readers, something fairly I where the anything significant unsolved coming and Pipeline Scott, So be But don't enterprises solutions noted business cases. and many, many and cloud unmet

you And thing, happen I see size more I anything can't times go didn't one number. to I'll for We you the the a What number. good past tell say the feel containing, I overnight. I an soon doesn't move lead. if the to of enthusiasm I'll what forward is giant But space. I'm other given say we're the be I a end have give to in that those public. how can able given said industry, about really going the cite adoption in. multiple to enterprises, to takes add is really user industry gentlemen want our and that years solution then it take one over can't

end that the days large North supply with user In enterprise Marks North service off the apparel, how had, years, So the the American merchandise that's and chain Macy's. ground got early & going logistics in general we Spencer later for we reflecting line. in large The logistics across retail American Kaplan, the that's points and forward. second

we've that's a my one -- galvanize industry to very got experience. an And large moving. one big in. stepping very It makes very, Now large grocer grocer

front us of just about So tuned. today and opportunities the I'm solutions stay incredibly in excited

Cary Baker

to previously, range. question is reasons just generally, a this the more strongest variable it given is project the And But system then I seasonality, what little XX% on timing. in QX mentioned To your is Scott, we the and XX% QX for down is see Cary. is

Scott Searle

the quarter. on Congrats

Operator

The is Lipacis Mark Evercore. next question with from

Mark Lipacis

of you? with and their maybe the design would you other If And helpful. check-ins? or that mean use piggybacking this when earlier watching and that cycle forgot provide talk to language just Maybe guys program? business Or that are what mentioned script, you back on you give in where or I cycle Chris, what color of companies that that -- on sidelines I does doing large on designing bunch of think exact just win do some the means. and got about are they sense systems could a steps? big the Like retailers the a you to these Can processes are working a start design the on pigging that the retailer. us be you the

Chris Diorio

Yes. I'm to. actually and Thanks, happy fairly simple. It's Mark,

store even at around. They handheld handheld items quick inventory driven for they by second So retail in or read least inventory, stores. do And faster, can and per the employee the XXX inventory a store is carries count.

twice Let's call a week. it

stationary send to put been retail the from everything the And to wasn't and to is between infrastructure items, somebody the or difference on merchandise tags is the this car has general to apparel category. so historically difficult these tags items of what and over toys there retail gigantic merchandise to difficult the all and things. because What's general on range batteries getting

there retailer to of those a having nuts, of at box is, cracked stationary the on put The American And has degrading the there's better. And that today. going so it box. toys in work put you real Think a that's other box look effort a on lot like. and the small stickers item the in but and the large are where a tags no stationary on North without are it tagging items

as products just in just products seeing And more in they retailers, stores. saying they're other place contact, [indiscernible] coming and we're than their placing year, then now need this go [indiscernible]. the the what and the category general the inventory and is nothing to So with of inventory RFQs merchandise basically they that. it's do They're product expand for

So Does that answer very all the... piggyback. is I -- a did Or fast there actually help? piggybacking is that

Mark Lipacis

on very I may because follow-up helpful. a it's think have And I if that Yes. just

kind place products involve? they imagine and the of to decision their RFQs to the suppliers also. to also switch. of process mean I to a it what the effort flip but does that I that processes like need they So be And making takes some tagged, there's that business need redesign that seems

could help step out. So if you plays that understand just how us next

Chris Diorio

Yes.

think this So about it way.

to enterprise have items, people, in place. then customers got an they the already tagged you've are business sells If using they that and apparel processes already

category moved and adding this footwear, first we're other other and added categories okay, and were then we this category say, they just So apparel, in we other now category. just this to doing we

creating of new already footwear. switch, flipping opening for like anything kind or and it's the it's So something faster than the apparel they not processes because whole way or instantaneous, a than that market but know

So they just add have handhelds the with employees some already additional in stores. categories there. store, And they in the the employees

the those leverage So tags built ability to out. already essentially, is

tags process and on quick additional add you're already using a is items to footwear. apparel it if so And

Operator

next The from with Sandler. question Piper a is Harsh follow-up Instructions] Kumar [Operator

Harsh Kumar

the this Or something in -- about Cary, big related nature? onetime you Or how authentification-type year? to Could for talking mentioned think at is and Chris should to had want will you Asia. you in that last ask did is opportunity you've fourth opportunity? we -- you you -- start you through come look just about talk about this I have just some been that the quarter of this

Chris Diorio

a we're replenishments So we seeing what while that Harsh, this had opportunity. for Asia into some opportunity and now is

say see And is believe not to will critically those forward overall. X things market one our I so authentication to us replenishments. it's going the I about we're but Number to opportunity. important just happy

say I'd essential. fact, it's In

it. and security think that expose protection consumer devices, and have a of they mobile As there's text protection wireless line mobile device going any and into it. tags just technology into you built don't around today, send no about and other I number know doesn't RAIN a

is authentication opportunity for and said, additional we be it. going the our to adoption pace redoubling had ready are will consumer to that's we efforts that with line authentication cloud originally introduced service absolutely believe it consumer firmly I necessary. That we slower adoption than forward perspective our why so that associated comes. ramp And we been product has security drive So the our a and from as and for, that hoped efforts of

Operator

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

Chris Diorio

joining ongoing Bye-bye. your like thank support. and Thank you you for to I'd call for you, today, our thank all of Gary.

Operator

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

disconnect. You may now

Impinj (PI) 23 Oct 242024 Q3 Earnings call transcript