BOUNDLESS IOT INVESTOR PRESENTATION FIRST QUARTER 2021 - SEE WHAT'S POSSIBLE WHEN EVERY_THING IS CONNECTED TO THE DIGITAL WORLD
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Boundless IoT
See what’s possible when every_thing
is connected to the digital world
Investor Presentation
First Quarter 2021
© 2021 1
Safe Harbor Statement
This presentation and the accompanying oral commentary contain forward- This presentation also contains statistical data, estimates and forecasts that
looking statements within the meaning of the Private Securities Litigation are based on independent industry publications or reports or other publicly
Reform Act of 1995. All statements other than statements of historical fact available information, as well as other information based on our internal
could be deemed forward-looking, including, but not limited to, any statements sources. This information involves a number of assumptions and limitations,
about expectations, projections, trends, plans, ambitions, strategies, and are subject to risks and uncertainties, and are subject to change based on
objectives of management for the future; potential markets or market size, various factors, including the potential impact of the Covid-19 pandemic and
technology or business developments, enforceability of our intellectual the those discussed in the “Risk Factors” section and elsewhere in our most
property rights or our position within the industry; the expected or potential recent SEC filings on Forms 10-K and 10Q. These and other factors could
impact of Covid-19 on our business, operating results, financial condition or cause results to differ materially from those expressed in the estimates made
prospects and the actual, expected or potential responses of government by the independent parties and by us.
authorities, customers, partners and the company to Covid-19; and any
statements of assumptions underlying any of the foregoing. Forward-looking In addition to our results determined in accordance with generally accepted
statements are also based on estimates and information available to us at the accounting principles (“GAAP”), this presentation includes certain non-GAAP
time of this presentation and are not guarantees of future performance. financial measures. These non-GAAP financial measures are in addition to,
Forward-looking statements are subject to significant risks, uncertainties and and not as a substitute for or superior to measures of financial performance
assumptions. Actual results could differ materially from our current prepared in accordance with U.S. GAAP. There are a number of limitations
expectations as a result of many factors, including those identified in the “Risk related to the use of these non-GAAP financial measures versus their nearest
Factors” section and elsewhere in our most recent filings on Forms 10-K and GAAP equivalents. See the appendix for a reconciliation of those measures to
10-Q filed with the Securities and Exchange Commission (SEC). If the risks or the most directly comparable GAAP measures.
uncertainties ever materialize or the assumptions prove incorrect, our results
may differ materially from those expressed or implied by such forward-looking
statements. Except as required by law, we assume no obligation and do not
intend to update these forward-looking statements or to conform these
statements to actual results or to changes in our expectations.
© 2021 2
Impinj at a Glance
• Massive Revenue (M) $152.8
$138.9
opportunity
$125.3 $122.6
• Extending the IoT $112.3
to everyday items
$78.5
2015 2016 2017 2018 2019 2020
12.1% CAGR 2015 – 2020
• Integrated platform for 50+ Billion Pioneer and leader in 292+
item connectivity Items Patents Issued
• Market leadership at Connected(1) and allowed(2)
every platform layer
• Blue chip end users
across multiple verticals
(1) As of February 10, 2021
(2) As of December 31, 2020
© 2021 3
Digital Life for
TRILLIONS
of everyday items • 10m range
• No battery
• For pennies
• Connecting every thing to the cloud
• Expanding the Internet’s reach by a factor of 1,000
• Imagine the applications that can leverage that connectivity
Impinj © 2021 4
Inventory Visibility
Connecting Retail
Today
• Improving inventory visibility
• Increasing sales Omnichannel Fulfillment
• Enhancing efficiencies
• Visibility through entire fulfillment process
Opportunity
• 80 billion apparel items annually(1)
• RAIN-enabled exit gates
• RAIN self-checkout terminals Self-Checkout & Loss Prevention
• RAIN-enabled handhelds
(1) Based on Impinj internal estimates
Impinj©©2021
2021 5
Pallet Tracking
Connecting
Supply Chain & Logistics
Today
• Enabling real-time visibility
• Virtualizing operations
• 25% efficiency gain loading trailers(1)
Opportunity
Package Sortation
• >9 billion pallets globally(2)
• >220 billion parcels globally(3)
• Millions of RAIN read points(4)
• Automating contract fulfillment
(1) Supply chain executive at global retailer
(2) IMARC Group, “Pallet Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2019-2024
(3) Pitney Bowes Parcel Shipping Index, October 2020
(4) Based on Impinj internal estimates
Impinj © 2021 6
Connecting Every Thing
Other Everyday Items
3Tn(2) Food & Drink Packaging
600Bn(2) Auto Parts
RAIN enabled connectivity 400Bn(2) Parcels & Postal
for >21Bn(1) items in 2020
80Bn(2) Apparel
We estimate only ~0.2%
of connectable items 7Bn(2) Pallets
are connected today Trillions of
consumable 4Bn(2) Airline Baggage
items per year
3Bn(2) Tires
Time
(1) RAIN RFID Alliance, “RAIN RFID Tag IC 2020 Sales Volume Cracks 20 Billion,” March 9, 2021
(2) Food Packaging and Caps & Lids based on Euromonitor International, “Global Trends in Food and Drink Packaging, 2017”. Impinj estimate of Auto Parts based on Statista, “Global Car Sales 1990–2019” and “Automotive Industry & Reach,”
Timo Unger. Postal based on Universal Postal Union, “Postal economic outlook 2020” and Pitney Bowes Parcel Shipping Index, October 2020. Impinj estimate of taggable apparel items based on Statista Market Forecast Apparel – worldwide,
March 2019. Pallets based on iMarc, “Pallet Market Size, Share, Growth, Analysis and Forecast 2025.” Airline Baggage based on IATA and SITA, “RFID for Baggage Tracking, Business Case 2017.”
Tires based on Freedonia, “Global tire demand.”
© 2021 7
Sample End User Deployments
(1) Significant RAIN end users; may not all be Impinj customers
© 2021 8
Mission: Connect Every Thing
Our products bring all things online
Endpoint ICs Reader Chips
Readers & Gateways Reader Software
Link items
to cloud
Impinj © 2021 9
Technology
RAIN = RAdio IdentificatioN
Unique ID: for pennies per endpoint IC
Fast: up to 1,000 items/sec @ 10m
Autonomous: without line-of-sight
Battery-free: essentially unlimited life
Worldwide: spectrum, standards & ecosystem
Complementary IoT Technologies
Items Beacons Internet Payment People
Impinj © 2021 10Go-to-Market A few of our hundreds of partners
We sell to, with and through partners
Software: enabler for system sales
Gateways: thousands for $1,000s apiece
Readers: tens of thousands for $100s apiece
Reader ICs: millions for $10s apiece
Endpoint ICs: billions for pennies apiece
Partners drive our solutions to market
Impinj © 2021 11Why Impinj
Industry leader with global brand 50+ Billion (1)
• Integrated platform endpoint ICs sold
• Product quality & reliability 3+ Million (1)
• Technology innovator & thought leader connectivity devices sold
• Market leader across all product lines 292+ Patents (2)
issued and allowed
Impinj NXP Zebra
Whole platform
Endpoint ICs
Readers
Reader Software
(1) As of February 10, 2021
(2) As of December 31, 2020
Impinj © 2021 12Financial Highlights
Annual Revenue ($M) Quarterly Revenue ($M)(1)
Endpoint ICs
152.8 Systems
138.9 47.8
45.2
125.3 122.6 40.8 40.8
112.3 38.2 36.4 7.2
33.1 14.1
14.4 7.9
78.5 14.5 15.1 26.5 28.2
11.2
6.6
7.9
38.1
33.7
21.8 23.7 26.4 25.7 21.6 28.5
18.5
2015 2016 2017 2018 2019 2020 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21
Systems is the platform’s reader ICs, readers, and gateways
(1) Variations due to rounding
© 2021 13Financial Highlights
Non-GAAP Gross Margins(1) Non-GAAP R&D ($M)(1)
51.4%
50.4% 50.3% 10.1 10.3
50.1% 9.4
8.5 8.6
(2)
46.1%
1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21
(1) Excludes depreciation and stock-based compensation. See appendix for reconciliation to the most directly comparable GAAP measures
(2) 560 basis point excess and obsolescence charge included in the 1Q20 non-GAAP Gross Margin of 46.1%
© 2021 14Financial Highlights
Quarterly Adjusted EBITDA ($M)(1) Free Cash Flow ($M)(2)
5.0
3.0
0.9 0.7 0.8
-3.1 -4.1
-5.2
-6.2
-12.1
1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21
(1) Excludes stock-based compensation and settlement and related costs. See appendix for reconciliation to the most directly comparable GAAP measures
(2) Free cash flow is a non-GAAP measure and is calculated as net cash provided by (used in) operating activities adjusted for net cash paid for settlement
and related costs less purchases of property and equipment. See appendix for reconciliation to the most directly comparable GAAP measures
© 2021 15Financial Highlights
• $213.5M(1) federal NOLs
• $119.3M(2) cash and investments
• $84.0M(2) in long-term debt
• Scalable, asset-light manufacturing model
(1) As of December 31, 2020
(2) As of March 31, 2021, $84.0M current portion of long-term debt
Impinj © 2021 16Our Strategy
Drive RAIN Invest in Enable ubiquitous Deliver cloud
adoption our platform reading services
We succeed when our platform is the engine of our partners’ success
© 2021 17Team
Chris Diorio, Ph.D. Cary Baker Jeff Dossett
CEO, Vice-Chair, Co-Founder CFO CRO
30 Years' Experience 20 Years' Experience 25 Years' Experience
Hussein Mecklai Yukio Morikubo John Quist
EVP Engineering General Counsel SVP Operations
30 Years' Experience
20 Years' Experience 30 Years' Experience
© 2021 18Impinj Highlights
Massive market with Technology pioneer with Blue chip end customers
~0.2% items connected multiple industry firsts across multiple verticals
Market leadership Industry-leading Strong, global team and
across the platform patent portfolio broad partner ecosystem
© 2021 19Join Us On
Our Journey
Expanding the
Internet’s reach to
Trillions
of everyday items
Impinj © 2021 20Appendix GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliation
2020 2021
Q1 Q2 Q3 Q4 Q1
GAAP Gross Margin 44.7% 49.0% 47.4% 47.8% 48.6%
Adjustments:
Depreciation 1.0% 1.7% 1.9% 1.4% 1.1%
Stock-based compensation 0.4% 0.7% 0.8% 1.2% 0.6%
Non-GAAP Gross Margin 46.1% 51.4% 50.1% 50.4% 50.3%
GAAP Research and development ($M) 11.1 10.7 11.9 15.0 13.8
Adjustments:
Depreciation (0.5) (0.5) (0.4) (0.4) (0.3)
Stock-based compensation (2.0) (1.6) (2.1) (4.6) (3.1)
Non-GAAP Research and development 8.5 8.6 9.4 10.1 10.3
© 2021 22GAAP to Non-GAAP Reconciliation(1)
2020 2021
Q1 Q2 Q3 Q4 Q1
GAAP Net Loss (4.3) (17.5) (14.3) (15.7) (9.4)
Adjustments:
Depreciation 1.2 1.1 1.1 1.1 1.0
Stock-based compensation 5.2 4.6 5.7 10.2 7.5
Restructuring costs -- -- -- -- 1.3
Settlement and related costs -- 5.4 -- -- --
Other Income, net (0.4) (0.1) (0.0) (0.1) (0.0)
Interest expense 1.3 1.3 1.4 1.4 0.5
Income tax benefit (expense) 0.0 0.0 0.0 0.0 0.0
Adjusted EBITDA 3.0 (5.2) (6.2) (3.1) 0.9
Net cash provided by (used in) operating activities 1.8 1.0 (16.4) (3.3) 9.4
Cash paid for settlement and related costs -- -- 5.4 -- --
Adjusted net cash provided by (used in) operating activities
1.8 1.0 (11.0) (3.3) 9.4
Purchases of property and equipment (1.1) (0.1) (1.1) (0.7) (4.4)
Free cash flow 0.7 0.8 (12.1) (4.1) 5.0
Net cash provided by (used in) investing activities 13.1 11.9 (42.9) (18.3) 8.3
Net cash provided by (used in) financing activities 1.9 0.9 1.8 5.2 8.5
(1) Variations due to rounding
© 2021 23You can also read
