Impinj (PI) FY 2025 Annual General Meeting June 05, 2025 12:00 PM ET Speaker0 Hello and welcome to the Impinj Incorporated Annual Meeting of Shareholders. Please note that this meeting is being recorded. Questions may be submitted via the message icon at the top left of your screen by typing your message then clicking the Send icon to the right of the message box. The meeting is about to begin. Speaker1 Good morning. On behalf of Impinj, welcome to the twenty twenty five Annual Meeting of Stockholders. I am ...

The Zacks Electronics - Semiconductors industry is benefiting from the growing proliferation of Artificial Intelligence (AI), Generative AI (Gen AI), Internet of Things (IoT), Machine Learning (ML) and industrial revolution 4.0 (which focuses on interconnectivity and automation). These have turned out to be boons for industry players like Broadcom (AVGO) , Lam Research (LRCX) and Impinj (PI) . Increasing demand for AI-supportive chips from hyperscalers is a major growth driver. The growing demand for high-v ...

Shares of Impinj (PI) have gained 52.5% over the past four weeks to close the last trading session at $117.52, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $149.50 indicates a potential upside of 27.2%.The mean estimate comprises eight short-term price targets with a standard deviation of $55.04. While the lowest estimate of $100 indicates a 14.9% decline from the current pri ...

Core Viewpoint - Impinj (PI) has experienced a significant share price increase of 77% over the past month, outperforming both the Zacks Computer and Technology sector and the Zacks Electronics - Semiconductors industry [1] Group 1: Financial Performance - Impinj's revenues and profitability exceeded guidance in Q1 2025, supported by a strong position in the endpoint IC market and innovative product offerings [2] - The company has issued a positive outlook for Q2 2025, expecting total revenues of $91-$96 million, which represents a 26% quarter-over-quarter increase, and non-GAAP earnings per share between 68 cents and 76 cents [8] Group 2: Product Development - The M800 series, utilizing next-generation Gen2X technology, is gaining traction and is expected to become a primary volume driver for Impinj [3] - Gen2X technology has increased overhead reading solution area coverage by 44% and is projected to improve gross margin by up to 300 basis points due to its efficiency and scalability [4] Group 3: Market Position and Strategy - Impinj is strategically expanding into supply chain and logistics, which is becoming a key growth catalyst as demand for advanced RFID solutions rises [6] - This expansion aligns with global digital transformation initiatives, leading to sustainable adoption and long-term revenue growth [7] - The company is positioned at the forefront of RFID advancements, reinforcing its leadership in delivering scalable, high-performance solutions for complex enterprise environments [5]

Shares of Impinj (PI) have gained 0.2% over the past four weeks to close the last trading session at $90.84, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $149.50 indicates a potential upside of 64.6%.The mean estimate comprises eight short-term price targets with a standard deviation of $55.04. While the lowest estimate of $100 indicates a 10.1% increase from the current pric ...

Impinj, Inc. (NASDAQ: PI ) delivered a strong set of results and, more importantly, its guidance for Q2 2025 was reassuring , causing its share price to soar more than 15% after hours. Strong Investment Potential My Marketplace highlights a portfolio of undervalued investment opportunities - stocks with rapid growth potential, driven by top quality management, while these stocks are cheaply valued. Deep Value Returns' Marketplace continues to rapidly grow. Check out members' reviews. High-quality, actionabl ...

Investor Presentation First Quarter 2025 Forward Looking Statement & Non-GAAP Financial Measures This presentation and the accompanying oral commentary contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to, any statements about or relating to expectations, projections, trends, plans, ambitions, strategies, and objectives of management ...

Financial Data and Key Metrics Changes - First quarter revenue was $74.3 million, down 19% sequentially from $91.6 million in Q4 2024, and down 3% year over year from $76.8 million in Q1 2024 [22] - First quarter endpoint IC revenue was $61.2 million, down 17% sequentially from $74.1 million in Q4 2024, and down slightly year over year from $61.5 million in Q1 2024 [22] - First quarter systems revenue was $13.1 million, down 25% sequentially from $17.5 million in Q4 2024, and down 15% year over year from $15.3 million in Q1 2024 [23] - First quarter gross margin was 52.7%, compared to 53.1% in Q4 2024 and 51.5% in Q1 2024 [24] - First quarter GAAP net loss was $8.5 million, while non-GAAP net income was $6.3 million or $0.21 per share on a fully diluted basis [27] Business Line Data and Key Metrics Changes - Endpoint IC revenue exceeded expectations driven by turns orders, with a forecast for sequential increase in Q2 [22][23] - Systems revenue exceeded expectations due to strength in both Reader and Reader IC sales, but a decline is expected in Q2 [23] - First quarter adjusted EBITDA was $6.5 million, compared to $15 million in Q4 2024 and $6.7 million in Q1 2024 [27] Market Data and Key Metrics Changes - The company holds the number one endpoint IC market share, capturing 85% of the industry's 2024 unit volume growth [11] - The geographic shift in sourcing products from China to other regions represents roughly 15% of endpoint ICs, with the company’s exposure being much less [14] Company Strategy and Development Direction - The company aims to extend its technology lead, market share, and platform adoption while managing business with a steady hand [20] - The focus remains on investing in enterprise solutions that transform the industry, particularly in retail, supply chain, and logistics [8][19] - The company is adjusting investments away from China and toward the U.S. and Europe to capitalize on growth opportunities [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the ongoing tariff and political uncertainties but believes the company is well-positioned to navigate these challenges [18] - There is a belief that enterprises using the company's platform will outperform those that do not, similar to past experiences during COVID [8] - The company expects second quarter revenue between $91 million and $96 million, reflecting a quarter-over-quarter increase of 26% at the midpoint [32] Other Important Information - The company ended Q1 with cash, cash equivalents, and investments of $232.5 million, down from $239.6 million in Q4 2024 [28] - First quarter capital expenditures totaled $1.9 million, and free cash flow was negative $13 million, primarily due to unfavorable working capital timing [28] Q&A Session Summary Question: How are you thinking about the impact of tariffs on demand? - Management indicated that they are not seeing a material pull-ahead in demand and believe enterprises are under-shipping consumer demand due to geographic shifts in sourcing [36][40] Question: What is the outlook for inventory levels? - Management stated that channel inventory is not high relative to consumer demand and that partners are adjusting their inventory strategies due to tariffs [60][62] Question: What are the expectations for the second half of the year? - Management expressed uncertainty but noted that if consumer demand holds, they expect bookings growth and channel inventory normalization [70][96] Question: How is the M800 ramp progressing? - The M800 is expected to ramp nicely, with potential gross margin benefits as it becomes a volume runner later in the year [83][84] Question: What are the new opportunities for 2025 or 2026? - Management highlighted food as a significant opportunity but noted that it may not materialize until 2026 or 2027, with a focus on fixed reading solutions in supply chains [102][104]

Core Insights - Impinj reported strong Q1 2025 earnings, exceeding revenue and EPS expectations, but faces challenges in inventory management and sustainable growth [1][2][3] Financial Performance - Revenue for Q1 2025 reached $74.3 million (GAAP), surpassing analyst expectations of $71 million and management's guidance of $70.0 to $73.0 million [2] - Non-GAAP EPS was $0.21, significantly above the analyst estimate of $0.08 and the company's guidance of $0.06 to $0.11 [2] - Year-over-year revenue decreased by 3.3% from $76.8 million in Q1 2024 [4][7] - Gross margin improved to 52.7%, up 1.2 percentage points from 51.5% in Q1 2024 [4] - Adjusted EBITDA was $6.5 million, exceeding the predicted range of $1.1 to $2.6 million [9] Business Overview - Impinj operates in the RAIN RFID market, focusing on item-tracking technology [5] - The company invests heavily in R&D, with expenditures of $25.3 million in Q1 2025, aiming to maintain market leadership through innovation [5][6] Challenges and Strategic Focus - Inventory management remains a critical challenge, with inventory slightly decreasing to $98.5 million from $99.3 million at the end of 2024 [10] - The company faces geopolitical uncertainties and pricing pressures that could impact future performance [10] - Impinj aims to leverage emerging market opportunities in the RFID sector, including expanding enterprise solutions and exploring new geographies [13] Future Outlook - For Q2 2025, Impinj projects revenue between $91 million and $96 million, with GAAP net income expected to range from $5.6 million to $8.1 million, down from $10.0 million in the same period last year [12]

Group 1: Earnings Performance - Impinj reported quarterly earnings of $0.21 per share, exceeding the Zacks Consensus Estimate of $0.09 per share, with an earnings surprise of 133.33% [1] - The company has surpassed consensus EPS estimates in all four of the last quarters [2] - Impinj's revenues for the quarter ended March 2025 were $74.28 million, surpassing the Zacks Consensus Estimate by 4.08%, although this represents a decline from $76.83 million year-over-year [2] Group 2: Stock Performance and Outlook - Impinj shares have declined approximately 48.9% since the beginning of the year, compared to a 10.1% decline in the S&P 500 [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $0.60 on revenues of $93.9 million, and for the current fiscal year, it is $1.47 on revenues of $360.1 million [7] Group 3: Industry Context - The Electronics - Semiconductors industry, to which Impinj belongs, is currently ranked in the top 16% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Impinj's stock performance [5]