Impinj, Inc.

Star then 1 on your touch tone phone and to withdraw your question, please press star then 2. 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 Ntinga's first quarter 2024 results. On today's call, Chris DiOrio, 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 first quarter 2024 financial results and second quarter outlook. We will then open the call for questions. Jeff Dossett, Impinja's CRO, will join us for the Q&A. You can find management's prepared remarks plus trended financial data on the company's investor relations website. We will make statements in this call about financial performance and future expectations that are based on our outlook as of today. Any such statements are forward looking under the Private Securities Litigation Reform Act of 1995. Whereas we believe we have a reasonable basis for making these forward looking statements, our actual results could differ materially because any such statements are subject to risks and uncertainties. We describe these risks and uncertainties in the annual and quarterly reports we file with the FCC. We do not undertake and expressly disclaim any obligation to update or alter our forward-looking statements, except as required by law. On today's call, all financial metrics, except for revenue or where we explicitly state otherwise, are non-GAAP. balance sheet and cash flow metrics are GAAP. Please refer to our earnings release for a 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 Baird's Global Consumer Technology and Services Conference on June 4th in New York. We look forward to connecting with many of you there. I will now turn the call over to Chris.

Thank you, Andy, and thank you all for joining the call. 2024 started strong. Momentum we saw exiting 2023 continued through the first quarter with revenue and profitability exceeding both our fourth quarter results and first quarter guidance. Our strategic focus on silicon and enterprise solutions helped create that momentum while paving the way for multi-year growth tailwinds, while our recent reorganization and legal settlement paved the way for growing profitability. Turning first to silicon, The green sheet by side of the last two quarters continues sprouting. First quarter end-point IC revenue exceeded our expectations, driven by improving demand in both retail apparel and general merchandise, as well as the long tail of other applications. Looking forward, we expect second quarter to again deliver solid end-point IC product revenue growth. We also expect impinged M800 volumes to double in the second quarter as our production ramp picks up, albeit still a small portion of our endpoint IP volumes overall. For redirect fees, we expect key family shipments to accelerate in the second quarter as we near the end of our prior generation product shipments, buoyed by a healthy number of design wins and burgeoning opportunities. Turning to solutions, the visionary European retailer's ongoing rollout of our self-checkout and loss prevention solution is performing nicely. We expect we're allowed to add additional brands at that customer to drive modest gateway demand through at least the end of 2024. Our tagging ramp, which replaces existing hard tags with embedded tags that use our protected mode for consumer privacy, is also on track, driving growing endpoint IP bonds. General merchandise, a large North American retailer's RAIN tag usage has accelerated driven by additional products being tagged and new product ordering. We anticipate steady growth in general merchandise tagging for the remainder of the year. Finally, in supply chain and logistics, we expect the second large North American supply chain and logistics end user to increase their label consumption in 2024. Taken together, our enterprise solutions efforts are and continue paying clear dividends in endpoint IT volumes. I'd like to now touch on two solutions growth opportunities, digital product passport and food. On DPP, I recently spent a week in EDU speaking with partners and end users on how we together advance RAIN as the technology of choice for textile DPP. RAIN has the apparel penetration, but DPP also requires consumer engagement. I see DPP making the strongest case to date for putting rain reading into the hands of consumers, and large enterprises are making that need known. On food, demand is growing at a faster pace than I had expected, with several quick-service food chains talking openly about using rain for inventory, shelf life, and freshness. The overall food opportunity is so large that any adoption can drive meaningful endpoint IT volumes. On the intellectual property front, In March, we successfully settled our patent dispute with NXP, including a multi-year litigation during which impinge prevailed in multiple jury trials. As Kerry will decale shortly, NXP agreed to pay impinge an upfront amount and a yearly licensee in exchange for a broad patent cross-license. This settlement increases our cash reserves and competitiveness, frees management bandwidth, and removes uncertainty from the industry overall. While we are happy to put this dispute behind us, as the RAIN pioneer and innovator, we remain vigilant and committed to safeguarding our patented inventions, as well as identifying additional licensing opportunities. In closing, we delivered a very strong first quarter in every respect, financial, organizational, and market leadership. We see continued strength looking into the second quarter. Looking further out, we see growing opportunities to drive recurring licensing and services revenue, monetizing our IP, platform, and cloud services. We continue driving our bold vision to connect every item in our everyday world, confident in our market position, and energized by the opportunities ahead. Before I turn the call over to Carrie for our financial review and second quarter outlook, I'd like to again thank every member of the Impinj team for your constant effort driving our bold vision. As always, I feel honored by my incredible good fortune to work with you.