Impinj (PI) Baird 2024 Global Consumer, Technology, & Services Conference summary

Business overview and technology

• RAIN RFID platform connects over 100 billion items across multiple verticals, using battery-free chips readable at up to 30 feet and 1,000 items per second.

• Revenue mix is about 75% from endpoint ICs (recurring) and 25% from systems, with endpoint ICs priced in pennies and systems in tens to thousands of dollars.

Market trends and recovery

• Recovery is driven by general merchandise and retail apparel, with general merchandise ramping above expectations and retail apparel rebuying after destocking.

• Channel inventory is healthy, especially with large partners, though some end customer inventory digestion continues.

• Retail apparel sales are up versus 2019, but import data suggests ongoing destocking at the retailer level.

Industry growth and deployment learnings

• Industry unit growth historically near 30% CAGR; last year exceeded this due to supply chain/logistics and inventory rebuilds.

• General merchandise deployment was slower due to SKU complexity and first-time tagging, but learnings now enable faster future rollouts.

• Inventory accuracy with RAIN RFID improves from mid-60% to high-90%, with some customers inventorying stores twice daily.