Impinj, Inc.

would now like to turn the conference over to Mr. Andy Cobb, Vice President, Strategic Finance. Please go ahead, sir.

Thank you, Nick. Good afternoon, and thank you all for joining us to discuss Impinja's first quarter 2025 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, We'll follow with a detailed review of our first quarter financial results and second quarter outlook. We will then open the call for questions. Hussain Mekli, Impinja's COO, 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 SEC. 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-GAF. All balance sheet and cash flow metrics except for free cash flow are GAF. Please refer to our earnings release for a reconciliation of non-GAF financial metrics to the most comparable gap metrics. I will now turn the call over to Chris.

Thank you, Andy, and thank you all for joining the call. At a time of extraordinary macro uncertainty, it hinges long-term secular growth opportunity in retail, supply chain and logistics, food, and the long tail of other applications remains intact. Enterprises use our platform to digitize their operations for production management supply chain optimization, and inventory visibility. Those operational needs transcend short-term headwinds or cyclicality and fuel enterprise success. During COVID, enterprises that leveraged our platform outperformed those that didn't. I believe that history is poised to repeat itself with enterprises that use our platform today that are able to adapt to tariffs than those that don't. Additionally, enterprises use our platform to track and manage the staples people buy, regardless of the macro. And they add endpoint ICs to products, regardless of whether they source those products from China or from other parts of the world. So although retail prices may increase, shelves aren't going to go empty. And products that carried our ICs yesterday will still carry them tomorrow, even if sourced from a different geography. we believe we are in a strong position to win in this market. We have number one endpoint IC market share after we took 85% of the industry's 2024 unit volume growth, and that with most of the M800 ramp still ahead of us. Our balance sheet and operating margins are strong, giving us the confidence to invest in and alongside our enterprise customers. Historically, When we lean into times of uncertainty, we emerge on the other side with greater share and a stronger business, and we intend to do so again. Turning to the first quarter, our execution was solid despite the uncertain environment. Steady demand and higher than expected endpoint IC volumes drove revenue and profitability above our guidance. We also saw a strong book-to-bill ratio and solid pipeline activity with enterprises remaining active and engaged. We took out a bit less N20C channel inventory than we had expected, primarily due to partners strategically meeting inventory for geographic optionality in the face of tariffs. We also saw multiple pull-in, push-out, cancellation, and bookings requests all in the same quarter, which speaks to the challenges our inlay partners are having navigating the tariff uncertainty. Looking to the second quarter, the tariff and politics induced market whipsaw appears unlikely to subside simply because some tariffs are paused. From today's vantage point, we see a modest second quarter channel inventory increase as our inlay partners continue building optionality, which in ordinary circumstances might be concerning, but that build is measured against enterprises undershipping consumer demand as they shift U.S.-bound product shipments from China to other geographies. That geographic shift represents roughly 15% of our endpoint ICs, but our exposure is much less because products from new geographies also carry our endpoint ICs. Assuming consumer demand holds, shipments will catch up to demand, and when they do, we should see channel inventory normalization and bookings growth. Returning to first quarter highlights, I'll start with Gen2x, which is showing its prowess. Comparing N830 Gen2x against a competing endpoint IC, Gen2x grew the area coverage of an overhead reading solution by 44%, helping convince a large apparel retailer to launch a major overhead deployment. We believe Gen2x will continue driving share gains and demand for our products. Second, Our direct engagements with the two large grocery chains we discussed last quarter continue moving forward. Third, we saw strong e-family demand, suggesting ongoing retailer deployments and pushing reader IC revenue above expectations. And finally, a partner extended the loss-preventing solution we developed for the visionary European retailer to loss analytics, which doesn't need 100% tagging and won a major deployment at another retailer. Overall, we feel good about our market progress and keep pressing forward. In closing, while we're not immune to the tariff shockwaves, I believe we are well-positioned to play offense. We lead in endpoint ICs, reader ICs, and fixed readers. We create the enterprise solutions that transform our industry. We manufacture and deliver our products overseas, so for the most part, we are not subject to direct tariffs. Our endpoint ICs represent a tiny fraction of the cost of the retail staples that are used on, meaning tariffs are unlikely to change enterprise decisions to use our ICs. And finally, we saw the tariff impact early, said what we saw, and quickly began adjusting our business, shifting investments away from China and toward the US and Europe, where we see continued growth opportunities. We are managing our business with a steady hand focused on extending our technology lead, market share, and platform adoption. As always, before I turn the call over to Kerry for our financial review and second quarter outlook, I'd like to again thank every member of the Impinj team for your tireless effort. As always, I feel honored by my incredible good fortune to work with you. Kerry?