Impinj, Inc.

to the impinge second quarter 2022 earnings conference call and webcast. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch tone phone. To withdraw your question, please press star, then two. 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.

Thank you, MJ. Good afternoon, and thank you all for joining us to discuss impingent second quarter 2022 results. On today's call, Chris DiIorio, Impinja's co-founder and CEO, will provide a brief overview of our market opportunity and performance. Kerry Baker, Impinja's CFO, will follow with a detailed review of our second quarter 2022 financial results and third quarter 2022 outlook. We will then open the call for questions. Jeff Dawson, Impinja's CRO, will join us in the Q&A session. You can find management's prepared remarks plus trended financial data on the investor relations section of the company's website. We will make statements in this call about future expectations and financial performance based on our outlook as of today. Any such statements are forward-looking under the Private Securities Litigation Reform Act of 1995. While we believe we have a reasonable basis for making these forward-looking statements, Our actual results could differ materially because any statements we make today are subject to risks and uncertainties. We describe these risks and uncertainties in the annual and quarterly reports we file with the SEC. We do not undertake and expressly disclaim any obligation to update or alter our forward-looking statements except as required by applicable law. On today's call, all financial metrics except for revenue or where we explicitly state otherwise, or non-GAAP. Balance sheet and cash flow metrics are on a GAAP basis. Please refer to our earnings release for reconciliation of non-GAAP financial metrics to the most comparable GAAP metrics. Before turning to our results and outlook, note that we will participate in the 11th Annual Needham Industrial Tech, Robotics, and Clean Tech one-on-one conference on August 5th. Oppenheimer's 25th Annual Technology, Internet, and Communications Conference on August 9th, the 42nd Annual Canaccord Genuity Growth Conference in Boston on August 11th, the Jeffery Semi-IT Hardware and Comm Infrastructure Summit in Chicago on August 30th and 31st, the Piper Sandler Growth Frontiers Conference in Nashville on September 13th, and the Goldman Sachs 2022 Communicopia and Technology Conference in San Francisco on September 14th. We look forward to connecting with many of you at those events. I will now turn the call over to Chris.

Thank you, Andy, and thank you all for joining the call. Our second quarter results were strong, driven by robust secular demand for all our products and PwnICs, ReaderICs, readers, and gateways. Revenue set a new quarterly record and strong profitability highlighted the leverage in our operating model as our revenue scales. Based on my conversations with Impinja's leading end users and go-to-market partners, I expect demand to remain strong at least through second half 2022, driven by both new deployments and expansion at existing deployments. Turning first to supply, pace of wafer upsides from our foundry partner has recently increased, suggesting that global demand for wafers in our process nodes may finally be cooling. Although I am guardedly optimistic that trend will continue, second quarter endpoint IC demand still exceeded supply by more than 50% for the fifth consecutive quarter. And looking ahead, I expect that imbalance to persist in the third quarter despite the wafer upsides. On the system side, second quarter demand exceeded our ability to supply, as it has for the past three quarters, and we exited second quarter with significant systems backlog. Reader component shortfalls, in particular, will constrain our reader supply and revenue growth in both the third and fourth quarters. Consequently, I expect product supply, rather than demand, to broadly constrain second half 2022 revenue growth just like it did in the first half. That said, we are poised for strong growth as supply improves. Second quarter end-point IC revenue exceeded our expectations, setting a new quarterly record. Demand remains strong, driven by retailers adopting RAIN for inventory visibility and omnichannel fulfillment, and supply chain and logistics providers for item traceability, including parcel tracking and operating efficiency. Based on that strong demand, I continue to believe our inlay partners will layer on additional bookings as our growing shipment volumes begin addressing our order backlog. Looking further out, I continue to see retail expansion focused on apparel, home goods, and general merchandise, and supply chain expansion focused on parcel shipment traceability as multi-year growth tailwinds for our endpoint ICs. To help meet that demand, over the past 18 months, we have invested in growing, diversifying, and streamlining our endpoint IC post-processing. June marked a milestone in that investment, with our operations team releasing a 300-millimeter post-processing flow that reduces cycle times by 25%. We are primed and ready to quickly turn any future upside wafers into shippable products. Second quarter systems revenue also exceeded our expectations. Reader ICs were a bright spot, recovering from last quarter's post-processing challenges and setting a new quarterly revenue record. Looking forward, I expect strong third quarter eFamily Reader IC volumes and growing supply of eFamily ICs to help drive record annual Reader IC revenue. Reader revenue also exceeded our expectations with our operations team securing more second quarter supply than we had anticipated. Our gateway revenue performed in line with expectations, led by shipments to the visionary European retailer's expanded loss prevention deployment. In June, we launched our new Impinj E910 Reader IC, offering the highest performance of any Reader IC on the market. Our E family, which now includes the E310, E510, E710 and E910 brings reign to new classes of smart edge devices with design wins in partner handhelds, fixed readers, modules, wearables, and printers. With its sibling e-family ICs, the E910 uses a common reference design and software stack, allowing our partners to quickly bring new E910-based products to market. I believe this combination of high performance and rapid time to market will further accelerate our vision of a boundless internet of things. On a project front, I see continued momentum in both retail and supply chain and logistics. Starting with retail, second quarter marked the return of meaningful reader revenue from the Asia-based global retailer as they expanded their self-checkout deployment into new geographies. And in my discussions with the visionary European retailer, they are pleased with the performance of our rain-based loss prevention offering and continue deploying as expected. I anticipate this deployment to continue generating meaningful revenue over the next several quarters. On the supply chain front, the second large North American supply chain and logistics customer continued advancing their reader deployment, generating healthy second quarter reader revenue. I expect this customer to drive a large endpoint IC opportunity in 2023 and beyond. In closing, I'd like to thank every member of the Impinj team for your tremendous effort this quarter. You delivered record revenue and growing profitability, introduced market-leading new products, advanced our platform, assured our operations, and positioned us for growth. all while navigating persistent supply challenges. With a strong team and a growing opportunity, I remain confident in our market position and energized by our strong demand. I will now turn the call over to Kerry for our financial review and third quarter outlook. Kerry?