PI - Impinj: Enterprise IOT Vision Could Reignite Momentum But It's Not All Clear Yet

2024-03-13 22:30:50 ET

Summary

• Impinj is reshaping its vision towards a connected reality for retail and supply-chain networks.
• The company relies heavily on its partner ecosystem for software and faces supply chain constraints.
• Demand for Impinj's products remains strong, but the company is still in the early stages of progress and faces risks from partner sales and supply chain bottlenecks.

Investment Thesis

Impinj is the process of lapping a pivotal year as it reshapes its vision towards a connected reality that delivers visibility for an enterprise's retail and supply-chain networks. Last year, the company had to endure a vicious Q1 FY23 as the stock nearly got sawed in half due to soft guidance. As the company moved through the year, fundamental issues in one of its revenue segments plagued the company’s performance, despite end-user demand being strong. These fundamental issues were embedded primarily in their revenue model in the Systems segment, which I will unpack below....

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