Impinj, Inc. · NASDAQ:PI
Impinj — Canaccord Growth Conference 2019
19 slides from Impinj's conference presentation, Aug 8, 2019
Slide 1: Investor Presentation Second Quarter 2019
Investor Presentation Second Quarter 2019 © 2019 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 limi
Slide 3: Expanding the Internet's reach to TRILLIONS of everyday items
Expanding the Internet’s reach to TRILLIONS of everyday items
Slide 4: Connecting Retail
Connecting Retail Today: ~10Bn(1) apparel items annually; ~70Bn(2) to go } Increasing sales } Reducing inventory } Enhancing store efficiencies } Improving customer experience Next: Cosmetics, home goods & food Significant RAIN end users; may not all be Impinj customers (1) IDTechEx: "RFID Forecasts
Slide 5: Connecting Aviation
Connecting Aviation Today: Baggage tracking fully deployed at one airline; 290(1) to go } Reducing lost luggage } Driving operational efficiencies } Improving customer satisfaction } Virtualizing and improving operations Next: life vests, safety equip & spare parts Significant RAIN end users; may no
Slide 6: Connecting the Supply Chain
Connecting the Supply Chain Today: Millions(1) of pallets connected; billions to go(2) } Enabling real-time visibility } Driving shipping efficiencies } Automating contract fulfillment } Virtualizing and improving operations Next: Cases, totes and items Significant RAIN end users; may not all be Imp
Slide 7: Trillions of Items Annually
Trillions of Items Annually Other Everyday Items RAIN enabled connectivity Food Packaging 2Tn(2) for 15.4Bn(1) items in 2018 Caps & Lids 1Tn(2) Auto Parts 600Bn(2) Postal 300Bn(2) We estimate only ~0.1% of connectable items Apparel 80Bn(2) are connected today Trillions of Airline Baggage 4Bn(2) cons
Slide 8: Vision
Vision Digital Twins Ownership Ownership Ownership End-of-life • Ownership* • History • Links Operations Logistics Management Use * Ownership can be temporary, such as for item custody Physical Items • Identity • Location • Authenticity Manufacturer Ship Distributor Deliver Store Pay Home Recycle 8
Slide 9: Mission
Mission One Platform Enabling Item-to-Application Connectivity for the IoT Cloud Services System Software Wireless Link Digital Identity Physical Items Linking silicon to applications 9
Slide 10: Technology
Technology RAIN = RAdio IdentificatioN } Unique ID – for pennies per endpoint IC } Fast – up to 1,000 items/sec @ 30 ft } Autonomous – without line-of-sight } Battery free – essentially unlimited life } Worldwide – spectrum, standards & ecosystem Complementary IoT Technologies Items Beacons Internet
Slide 11: Go-to-Market
Go-to-Market We sell to, with and through partners } Software – licensing revenue (still new) } Gateways – thousands for $1,000s apiece } Readers – tens of thousands for $100s apiece } Reader ICs – millions for $10s apiece } Endpoint ICs – billions for pennies apiece Partners drive our solutions to
Slide 12: Why Impinj
Why Impinj Industry leader with global brand } Integrated platform 30+ BILLION } Product quality & reliability endpoint ICs sold(1) } Technology innovator & thought leader 2+ MILLION } Market-share leader across all product lines connectivity devices sold(1) 250 PATENTS issued and allowed(1) IMPINJ
Slide 13: Financial Highlights
Financial Highlights Quarterly Revenue ($M) Non-GAAP Gross Margins(1) 38.2 34.4 34.6 33.1 50.0% 50.0% 50.0% 50.0% 28.5 14.5 10.7 12.8 11.2 49.0% 8.5 23.7 21.8 21.8 23.7 20.0 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 Endpoint ICs Systems Systems is the platform’s connectivity and software lay
Slide 14: Financial Highlights
Financial Highlights Cash and Investments ($M) Non-GAAP R&D ($M) (1) $59.8 $7.4 $7.6 $7.1 $7.1 $7.0 $56.6 $56.1 $54.7 $52.8 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 (1) Excludes depreciation, amortization, and stock-based compensation. See the detailed reconciliation to closest GAAP measure
Slide 15: Our Path Forward
Our Path Forward } Invest in our platform } Drive end-user adoption } Link silicon to applications We succeed when our platform is the engine of our partners’ success 15
Slide 16: Team
Team Chris Diorio, Ph.D. Eric Brodersen Yukio Morikubo Jeff Dossett CEO, Vice-Chair, Co-Founder President, COO, PFO General Counsel EVP Sales & Marketing 30 Years Experience 25 Years Experience 30 Years Experience 25 Years Experience Hussein Mecklai Linda Breard John Quist EVP Engineering CFO Consul
Slide 17: Join Us On Our Journey
Join Us On Our Journey Expanding the Internet’s reach to TRILLIONS of everyday items 17
Slide 18: Appendix
Appendix GAAP to Non-GAAP Reconciliations
Slide 19: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 2018 2019 Q2 Q3 Q4 Q1 Q2 GAAP Gross Margin 47.9% 48.1% 47.1% 48.0% 48.2% Adjustments: Depreciation and amortization 1.8% 1.5% 1.5% 1.6% 1.4% Stock-based compensation 0.3% 0.4% 0.4% 0.4% 0.4% Non-GAAP Gross Margin 50.0% 50.0% 49.0% 50.0% 50.0% GAAP Research and develop