Impinj (PI) Piper Sandler Growth Frontiers Conference summary

Market environment and performance

• Retail environment has improved, driving overperformance year-to-date, though inventory moderation continues and mixed signals persist in macro data.

• Retailers are growing sales faster than inventory, indicating ongoing inventory moderation and cautious optimism.

• Company maintains a cautious approach despite positive trends.

Market opportunities and penetration

• Retail apparel is the top vertical, with about 30% penetration of an 80 billion unit annual opportunity; logo penetration is above 90%.

• General merchandise is four times the size of apparel (325 billion units/year), logistics is five times apparel (400 billion units/year), and food tagging could reach trillions of items.

• Most retailers are not fully deployed, but progress is steady, unlocking new use cases as penetration increases.

Growth and deployment updates

• General merchandise ramp with a large North American retailer is progressing faster than expected, with further phases and categories under discussion.

• Other players in general merchandise are likely to adopt quickly once initial heavy lifting is done by early adopters.

• Logistics customer two is ramping predictably, with 2024 label consumption expected to exceed 2023 and international expansion likely into 2025.

• Logistics customer one completed a dock door solution, generating significant revenue, but with smaller tagging opportunity compared to package-level tagging.