Impinj Inc (PI) 2024 Q3 法說會逐字稿

Welcome to the Impinj third-quarter 2024 financial results earnings conference call and webcast. (Operator Instructions) Please note, this event is being recorded.

歡迎參加 Impinj 2024 年第三季財務業績電話會議和網路廣播。 （操作員說明）請注意，正在記錄此事件。

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

現在我想將會議交給策略財務副總裁安迪‧科布先生。請繼續。

Thank you, Gary. Thank you. Good afternoon, and thank you all for joining us to discuss Impinj's third-quarter 2024 results. On today's call, Chris Diorio, Impinj's Co-Founder and CEO, will provide a brief overview of our market opportunity and performance. Cary Baker, Impinj's CFO, will follow with a detailed review of our third quarter financial results and fourth quarter outlook.

謝謝你，加里。謝謝。下午好，感謝大家加入我們討論 Impinj 的 2024 年第三季業績。在今天的電話會議上，Impinj 聯合創始人兼執行長 Chris Diorio 將簡要概述我們的市場機會和業績。 Impinj 財務長 Cary Baker 將詳細審查我們第三季的財務業績和第四季度的前景。

We will then open the call for questions. Hussein Mecklai, Impinj'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.

然後我們將開始提問。 Impinj 營運長 Hussein Mecklai 將參加我們的問答。您可以在公司的投資者關係網站上找到管理層準備好的評論以及趨勢財務數據。我們將在本次電話會議中根據我們今天的展望發表有關財務業績和未來預期的聲明。根據 1995 年《私人證券訴訟改革法案》，任何此類陳述均具有前瞻性。

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.

儘管我們相信我們有合理的基礎來做出這些前瞻性陳述，但我們的實際結果可能會存在重大差異，因為任何此類陳述都面臨風險和不確定性。我們在向 SEC 提交的年度和季度報告中描述了這些風險和不確定性。除非法律要求，否則我們不承擔並明確否認任何更新或更改我們的前瞻性聲明的義務。

On today's call, all financial metrics, except for revenue or where we explicitly state otherwise, are non-GAAP. While balance sheet and cash flow metrics, except for free cash flow or GAAP. Please refer to our earnings release for a reconciliation of non-GAAP financial metrics to the most comparable GAAP metrics.

在今天的電話會議上，除收入或我們明確說明的其他財務指標外，所有財務指標均為非公認會計準則。而資產負債表和現金流量指標，自由現金流量或公認會計準則除外。請參閱我們的收益發布，以了解非公認會計原則財務指標與最具可比性的公認會計原則指標的調節表。

Before turning to our results and outlook, note that we will participate in the Baird 2024 Global Industrial Conference on November 13 in Chicago and the UBS Global Technology Conference on December 4 in Scottsdale. We look forward to connecting with many of you there.

在討論我們的業績和展望之前，請注意，我們將參加 11 月 13 日在芝加哥舉行的貝爾德 2024 年全球工業會議和 12 月 4 日在斯科茨代爾舉行的瑞銀全球技術會議。我們期待與你們中的許多人建立聯繫。

I will now turn the call over to Chris.

我現在將把電話轉給克里斯。

Thank you, Andy, and thank you all for joining the call. Our third quarter results were strong with revenue and profitability well above our guidance. Excluding last quarter, with its $15 million licensing revenue, third quarter revenue and adjusted EBITDA both set new records. Strength in supply chain and logistics, steady growth in retail general merchandise and continued secular growth in both apparel and long-tail applications drove these strong financial results. As Cary will highlight, these results again demonstrate the leverage in our operating model.

謝謝你，安迪，也謝謝大家加入這通通話。我們第三季的業績強勁，營收和獲利能力遠高於我們的指引。排除上季1500萬美元的授權收入，第三季營收和調整後的EBITDA均創下新紀錄。供應鏈和物流的實力、零售百貨的穩定成長以及服裝和長尾應用的持續長期成長推動了這些強勁的財務表現。正如卡里將強調的那樣，這些結果再次證明了我們營運模式的槓桿作用。

Starting with silicon, third quarter endpoint IC product revenue exceeded our expectations. Unit volumes set a new quarterly record as parcel shippers and retailers prepare for the holiday season. And for the third consecutive quarter, M800 shipments more than doubled.

從矽開始，第三季端點 IC 產品收入超出了我們的預期。隨著包裹托運人和零售商為假期做好準備，單位數量創下了新的季度記錄。 M800 的出貨量連續第三個季度增加了一倍以上。

Looking to the fourth quarter, we expect endpoint IC revenue to decline modestly versus third quarter with typical seasonal trends partially offset by market strength. We also expect continued M800 adoption as more M800-based inlays achieve market qualification.

展望第四季度，我們預期端點 IC 營收將比第三季小幅下降，典型的季節性趨勢部分被市場實力所抵銷。我們也預計，隨著更多基於 M800 的嵌體獲得市場資格，M800 將繼續被採用。

Turning to reader ICs. Third quarter volumes exceeded our expectations driven by stronger-than-anticipated demand for both Indy and E-family ICs. Looking to fourth quarter, project timing at the large supply chain and logistics end user will push E-Family revenue lower. Longer term, as we wind down our legacy Indy ICs, we see continued family adoption across the broad rain market.

轉向讀卡機 IC。由於對 Indy 和 E 系列 IC 的需求強於預期，第三季銷售量超出了我們的預期。展望第四季度，大型供應鏈和物流最終用戶的專案時機將導致電子家庭收入下降。從長遠來看，隨著我們逐步淘汰傳統的 Indy IC，我們將看到在廣闊的 Rain 市場中家庭將繼​​續採用。

On solutions, we expect the current phase of the visionary European retailers ongoing rollout of our self-checkout and loss prevention solution to spike in the fourth quarter, driving strong fourth quarter gateway revenue and growing endpoint IC volumes. At the large North American retailer, IC volumes continue ramping, driven by expanding general merchandise tagging. And we see the second large North American supply chain logistics end user increasing label consumption this year and next.

在解決方案方面，我們預計，有遠見的歐洲零售商當前階段不斷推出的自助結帳和防損解決方案將在第四季度激增，從而推動第四季度網關收入的強勁增長和端點 IC 銷量的增長。在這家北美大型零售商中，由於日用商品標籤不斷擴大，IC 銷售持續成長。我們看到北美第二大供應鏈物流最終用戶今年和明年的標籤消費量增加。

These very public enterprise successes are driving additional Fortune 500 enterprises to us, both in existing markets like retail general merchandise and new ones like perishable foods, and with them, endpoint IC volumes. Our enterprise account pipeline is much larger today than our current base.

這些非常公開的企業成功正在推動更多的財富 500 強企業加入我們，無論是在零售百貨等現有市場，還是在易腐食品等新市場，以及隨之而來的端點 IC 銷售。如今，我們的企業客戶管道比我們目前的基礎大得多。

Expect us to continue investing in enterprise solutions, including software and cloud services that we believe are key to our long-term success.

希望我們繼續投資企業解決方案，包括我們認為對我們長期成功至關重要的軟體和雲端服務。

Touching now on the broader market, our conviction in food tagging continues, buoyed by multiple supply chain and quick-serve restaurant rollouts as well as grocery pilots. While we are still in the early days, the endpoint IC opportunity is at least an order of magnitude larger than any of today's markets.

現在談到更廣泛的市場，在多個供應鏈、快餐店的推出以及雜貨店試點的推動下，我們對食品標籤的信念仍在繼續。雖然我們仍處於早期階段，但端點 IC 的機會至少比當今任何市場大一個數量級。

In retail general merchandise, we continue seeing retailers piggyback on the pioneering rollout at the large North American retailer. And Qualcomm's statement about RAIN reading in mobile devices galvanized expectations of RAIN as a digital product passport data carrier. It also piqued retailer interest in engaging consumers through their connected items.

在零售百貨方面，我們持續看到零售商借助北美大型零售商的開創性推出。高通關於行動裝置中 RAIN 讀取的聲明激起了人們對 RAIN 作為數位產品護照資料載體的期望。它也激起了零售商透過互聯產品吸引消費者的興趣。

At the recent RAIN Alliance meeting at Florence, I highlighted one potential use case, which is consumers crowdsourcing their location of items in our everyday world. Think Bluetooth trackers, no additional cost and with 10,000x today's footprint. With overall RAIN penetration still less than 1% of the total connectable market, we remain laser-focused on winning the race to connect everything.

最近在佛羅倫薩舉行的 RAIN 聯盟會議上，我強調了一個潛在的用例，即消費者將他們在日常生活中的物品位置眾包起來。想想藍牙追蹤器，無需額外成本，佔地面積是當今的 10,000 倍。由於 RAIN 的整體滲透率仍不到整個可連接市場的 1%，我們仍然專注於贏得萬物互聯的競賽。

In closing, we delivered a very strong third quarter. Our solutions focus continues paying dividends, and I am personally heartened by the consumer opportunity, which I've been touting for what feels like ages, finally seeming within reach. Looking ahead, we see continued secular endpoint IC growth, category expansion and burgeoning solutions opportunities. As we continue driving our bold vision, I remain confident in our market position and energized by the opportunities ahead.

最後，我們交付了非常強勁的第三季業績。我們對解決方案的關注繼續帶來紅利，我個人對消費者的機會感到振奮，我一直在宣傳這個機會，感覺好像很長時間，終於似乎觸手可及。展望未來，我們看到端點 IC 持續長期成長、類別擴展和新興解決方案機會。在我們繼續推動我們的大膽願景的同時，我對我們的市場地位仍然充滿信心，並對未來的機會充滿信心。

Before I turn the call over to Cary for our financial review and fourth 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. Cary?

在我將電話轉給 Cary 進行財務審查和第四季度展望之前，我想再次感謝 Impinj 團隊的每一位成員的不懈努力。像往常一樣，我為能與您合作感到無比的幸運而感到榮幸。卡里？

Thank you, Chris, and good afternoon, everyone. Third quarter revenue was $95.2 million, down 7% sequentially from $102.5 million in second quarter 2024 and up 46% year over year from $65 million in third quarter 2023.

謝謝克里斯，大家下午好。第三季營收為 9,520 萬美元，比 2024 年第二季的 1.025 億美元下降 7%，比 2023 年第三季的 6,500 萬美元年增 46%。

Third quarter endpoint IC revenue was $81 million, down 9% sequentially from $89.4 million in second quarter of 2024 and up 67% year over year from $48.6 million in third quarter 2023. Excluding the $15 million second quarter licensing revenue, endpoint IC revenue grew 9% sequentially. Looking forward, we expect fourth quarter endpoint IC revenue to decline but on the favorable side of normal seasonality.

第三季端點IC 營收為8,100 萬美元，比2024 年第二季的8,940 萬美元下降9%，比2023 年第三季的4,860 萬美元年增67%。收入，端點IC 收入成長了9% % 依序。展望未來，我們預期第四季端點 IC 營收將下降，但有利於正常季節性。

Third quarter systems revenue was $14.2 million, up 9% sequentially from $13.1 million in second quarter 2024 and down 13% year over year from $16.4 million in third quarter 2023. Systems revenue exceeded our expectations, driven by strength in both test and measurement and reader IC sales. Looking forward, we expect fourth quarter systems revenue to increase sequentially.

第三季系統營收為1,420 萬美元，比2024 年第二季的1,310 萬美元成長9%，比2023 年第三季的1,640 萬美元年減13%。推動下，系統收入超出了我們的預期積體電路銷售。展望未來，我們預期第四季系統營收將季增。

Third quarter gross margin was 52.4% compared with 58.2% in second quarter 2024 and 50.5% in third quarter 2023. The year-over-year increase was due primarily to less excess and obsolescence charges in the current year. The sequential decrease was due primarily to second quarter licensing revenue. Excluding the licensing revenue, third quarter product gross margin increased 140 basis points sequentially, driven primarily by endpoint IC product mix, including fewer 200-millimeter wafers. Looking forward, we expect fourth quarter gross margin to increase sequentially.

第三季毛利率為 52.4%，而 2024 年第二季為 58.2%，2023 年第三季為 50.5%。環比下降主要是由於第二季度的許可收入。不包括授權收入，第三季度產品毛利率環比增長了 140 個基點，這主要是受到端點 IC 產品組合（包括 200 毫米晶圓數量減少）的推動。展望未來，我們預計第四季毛利率將環比成長。

Total third quarter operating expense was $32.5 million compared with $32.8 million in second quarter 2024 and $32.6 million in third quarter 2023.

第三季營運支出總額為 3,250 萬美元，而 2024 年第二季營運支出為 3,280 萬美元，2023 年第三季營運支出為 3,260 萬美元。

Operating expense was below expectations, driven by engineering program timing. Research and development expense was $17.9 million. Sales and marketing expense was $7.1 million. General and administrative expense was $7.6 million. Looking forward, we expect fourth quarter operating expense to increase sequentially.

受工程項目時間安排的影響，營運費用低於預期。研究與開發費用為1790萬美元。銷售和行銷費用為 710 萬美元。一般及行政費用為 760 萬美元。展望未來，我們預計第四季營運費用將較上季增加。

Third quarter adjusted EBITDA was $17.3 million compared with $26.8 million in second quarter 2024 and $300,000 in the third quarter of 2023. Third quarter adjusted EBITDA margin was 18.2%. Third quarter GAAP net income was $200,000. Third quarter non-GAAP net income was $16.9 million or $0.56 per share on a fully diluted basis.

第三季調整後 EBITDA 為 1,730 萬美元，而 2024 年第二季為 2,680 萬美元，2023 年第三季為 30 萬美元。第三季 GAAP 淨利潤為 200,000 美元。第三季非 GAAP 淨利為 1,690 萬美元，或完全攤薄後每股 0.56 美元。

Turning to the balance sheet. We ended the third quarter with cash, cash equivalents and investments of $227.4 million compared with $220.2 million in second quarter 2024 and $113.2 million in third quarter 2023. Inventory totaled $88.4 million, up $7.6 million from the prior quarter. Third quarter capital expenditures totaled $5.4 million. Free cash flow was $4.7 million.

轉向資產負債表。截至第三季末，我們的現金、現金等價物及投資為2.274 億美元，而2024 年第二季為2.202 億美元，2023 年第三季為1.132 億美元。季度增加760 萬美元。第三季資本支出總計 540 萬美元。自由現金流為 470 萬美元。

Before turning to our guidance, I want to highlight three items specific to our results and outlook. First, we expect fourth quarter gross margins to increase sequentially, driven by lower 200-millimeter endpoint IC volume, a larger mix of systems revenue and endpoint IC replenishments into Asia-based authenticity pilots.

在轉向我們的指導之前，我想強調針對我們的結果和前景的三項內容。首先，我們預計第四季度毛利率將環比增長，原因是 200 毫米端點 IC 銷量下降、系統收入增加以及對亞洲真實性試點的端點 IC 補充。

Second, as we signaled last quarter, we increased our second half 2024 wafer purchases. We will move some of those wafers to inventory ahead of 2025 growth and the remainder to a fulfill stronger-than-anticipated second half 2024 demand.

其次，正如我們上季度所暗示的那樣，我們增加了 2024 年下半年的晶圓採購量。我們將在 2025 年成長之前將其中一些晶圓轉移到庫存中，並將其餘晶圓轉移到滿足 2024 年下半年強於預期的需求。

Finally, with the additional revenue and disciplined investment in third quarter, our adjusted EBITDA margins are approaching the long-term range we presented at our 2023 Investor Day.

最後，隨著第三季的額外收入和嚴格的投資，我們調整後的 EBITDA 利潤率正在接近我們在 2023 年投資者日上提出的長期範圍。

As our revenue scales, we anticipate incremental leverage and cash flow generation.

隨著我們的收入規模擴大，我們預計槓桿率和現金流量將會增加。

Turning to our outlook. We expect fourth quarter revenue between $91 million and $94 million compared with $70.7 million in fourth quarter 2023, a 31% increase at the midpoint. We expect adjusted EBITDA between $13.6 million and $15.1 million.

轉向我們的展望。我們預計第四季營收將在 9,100 萬美元至 9,400 萬美元之間，而 2023 年第四季營收為 7,070 萬美元，中位數成長 31%。我們預計調整後 EBITDA 在 1,360 萬美元至 1,510 萬美元之間。

On the bottom line, we expect non-GAAP net income between $13.4 million and $14.9 million, reflecting non-GAAP fully diluted earnings per share between $0.45 and $0.49.

就底線而言，我們預計非 GAAP 淨利潤在 1,340 萬美元至 1,490 萬美元之間，反映非 GAAP 完全攤薄每股收益在 0.45 美元至 0.49 美元之間。

In closing, I want to thank the Impinj team, our customers, our suppliers and our investors for your ongoing support.

最後，我要感謝 Impinj 團隊、我們的客戶、供應商和投資者的持續支持。

I will now turn the call to the operator to open the question-and-answer session. Gary?

我現在將通話轉給接線員以開始問答環節。加里？

(Operator Instructions) Jim Ricchiuti, Needham & Company.

（操作員說明）Jim Ricchiuti，Needham & Company。

Wanted to go back to some of the commentary that you had about the systems business. I'm trying to reconcile some of the comments that you made. You're talking, I think, about the current phase of your European retailer, this visionary retailer you've talked about, and talking about -- thinking in the text transcript, you're talking about solutions spiking in Q4.

想回顧一下您對系統業務的一些評論。我正在嘗試協調您提出的一些評論。我認為，您正在談論歐洲零售商的當前階段，您談到的這個有遠見的零售商，並正在談論 - 在文字記錄中思考，您正在談論第四季度激增的解決方案。

Now normally, Q4 is a better quarter seasonally, right, in the systems business. So are you anticipating a stronger systems quarter as a result of some of the factors I just mentioned?

現在通常情況下，第四季度是系統業務季節性較好的季度，對吧。那麼，由於我剛才提到的一些因素，您是否預計系統季度會更加強勁？

Jim, this is Cary. Thanks for the question. And you've interpreted things correctly. So we are expecting fourth quarter systems revenue to increase sequentially due to a few factors, and you highlighted a couple. First and just as a matter of baseline, Q4 has historically been a seasonally stronger quarter for the systems business as our customers typically look to deploy capital ahead of the end of their fiscal years.

吉姆，這是卡里。謝謝你的提問。你已經正確地解釋了事情。因此，由於一些因素，我們預計第四季度的系統收入將持續成長，您強調了幾個因素。首先，作為基準問題，第四季度歷來是系統業務季節性強勁的季度，因為我們的客戶通常希望在財年結束之前部署資本。

And then specific to this fourth quarter, we're seeing the benefits from the visionary European retailers ongoing self-checkout and loss prevention rollout. And that deployment will spike in terms of volume and, therefore, revenue in Q4 before normalizing in Q1.

然後具體到第四季度，我們看到了有遠見的歐洲零售商正在進行的自助結帳和防損推廣所帶來的好處。在第一季恢復正常之前，第四季的部署量和收入將激增。

And then finally, the Indy reader IC end-of-life process has elongated a little bit. We anticipated last time shipments in the second quarter though some of those have moved into Q3 into Q4. And as a result, that's adding a little bit of a tailwind to Q4 systems revenue as well.

最後，Indy 讀卡機 IC 的報廢過程稍微延長了一些。我們預計上次發貨是在第二季度，儘管其中一些已經從第三季度進入第四季度。因此，這也為第四季的系統收入帶來了一些推動力。

Okay. A follow-up question, actually unrelated. Your large inlay customer earlier today was talking about the adoption that they're seeing an RFID and grocery stores, in particular, I think bakery being one of the early use cases. I'm wondering, and maybe, Chris, this is a question for you, if you could frame the opportunity, how that might look like for the industry. You've obviously been getting more positive about the opportunity in food, both in the grocery and QSR.

好的。一個後續問題，實際上無關。今天早些時候，您的大型鑲嵌客戶正在談論他們看到的 RFID 和雜貨店的採用，特別是我認為麵包店是早期用例之一。我想知道，克里斯，這也許是你的問題，你是否可以框架這個機會，這個行業會是什麼樣子。顯然，您對食品領域的機會更加積極，無論是雜貨店還是快餐店。

I'm just wondering if you can talk a little bit to that.

我只是想知道你是否可以談談這一點。

Yes, Jim. Thank you. So I've been talking about food on the past couple of earnings calls. If you recall, it's a little bit slow and coming to the table here and talk about food because it's such a big opportunity. I wanted to give it some time to see how things would play out.

是的，吉姆。謝謝。所以我在過去的幾次財報電話會議上一直在談論食品。如果你還記得的話，來這裡討論食物的速度有點慢，因為這是一個很大的機會。我想給它一些時間看看事情會如何發展。

But what we're really seeing right now is exactly what you said. We're seeing opportunities in quick-serve restaurants, in the food supply chain and now in individual grocers. We feel very well positioned in these opportunities. And although given the size of these enterprises, this overall size of the 2025 food volumes will not be -- will be just a start on this gigantic path. We still think there will be some meaningful volumes in 2025.

但我們現在真正看到的正是你所說的。我們在快餐店、食品供應鏈以及現在的個體雜貨店中看到了機會。我們感覺自己在這些機會中處於有利地位。儘管考慮到這些企業的規模，2025 年糧食產量的整體規模不會——將只是這條巨大道路上的一個開始。我們仍然認為 2025 年將會出現一些有意義的銷售量。

So we're excited about the food opportunity. We're excited by the announcement that you just saw, and there are more opportunities out there in the market today.

所以我們對食品機會感到興奮。我們對您剛剛看到的公告感到非常興奮，今天市場上還有更多機會。

Harsh Kumar, Piper Sandler.

嚴厲的庫馬爾，派珀桑德勒。

First of all, congratulations on very strong results to the whole team. I had two. Maybe the first one for Chris. Chris, you had quite a bit of outperformance in your September quarter results. I mean I wanted to ask the question if there was one thing that stood out, but it seems like it's very broad-based.

首先，恭喜整個團隊取得了非常出色的成績。我有兩個。也許是克里斯的第一個。克里斯，您的 9 月季度業績表現相當出色。我的意思是，我想問是否有一件事情很突出，但它似乎基礎非常廣泛。

However, if I was to ask you that question, if there was, you think, one driver that stands greater than the rest in driving the number quarter results, which one would that be?

然而，如果我問你這個問題，你認為，如果有一個驅動因素在推動季度業績方面比其他驅動因素更出色，那會是哪一個呢？

Thanks, Harsh, for the question. One driver. You know, Harsh, I don't think I can give you one. And I'm going to apologize for that, but we're seeing supply chain and logistics strength steady growth in retail general merchandise, secular growth in apparel and long-tail applications. And we're seeing our solutions efforts paying dividends across the solutions that we're driving into.

謝謝哈什提出這個問題。一名司機。你知道，哈什，我想我不能給你一個。我要為此道歉，但我們看到零售百貨的供應鏈和物流實力穩步增長，服裝和長尾應用的長期增長。我們看到我們的解決方案努力正在為我們正在推動的解決方案帶來紅利。

So I feel that we, as a company, are pushing hard in several areas, the areas that I just said. We see the market overall pushing hard in those areas. And we just are now really in the thick of broad-based industry adoption, not market adoption, not any one particular market, but broad-based industry adoption.

所以我覺得我們作為一家公司，正在幾個領域，也就是我剛才說的領域，努力推進。我們看到市場總體上在這些領域大力推動。我們現在確實處於廣泛的行業採用的最激烈階段，不是市場採用，不是任何一個特定市場，而是廣泛的行業採用。

And if you look at the food announcement, and we're kind of worried that we've been talking about food, that broad-based industry adoption is poised to continue. So I hope my prepared remarks conveyed my enthusiasm about the market overall.

如果你看看食品公告，我們有點擔心我們一直在談論食品，廣泛的行業採用將繼續下去。因此，我希望我準備好的言論能夠傳達我對整個市場的熱情。

And I really truly feel that enthusiasm. So I'm sorry, I can't point to one. I gave you four, but they're all meaningful.

我真的感受到了這種熱情。所以很抱歉，我無法指出其中一個。我給了你四個，但它們都很有意義。

This is very good color. I was trying to pin you down, but it seems like you are seeing broad adoption. I had a follow-up, maybe a two-part question on seating here a little bit. You mentioned in the logistics segment, your second customer will increase adoption in 2024 and then again in 2025. I was curious if you could give us some idea of where they are.

這是非常好的顏色。我試圖確定你的情況，但似乎你正在看到廣泛的採用。我有一個後續問題，也許是一個由兩部分組成的問題，關於這裡的座位。您在物流領域提到，您的第二個客戶將在 2024 年增加採用率，然後在 2025 年再次增加。

How much are you penetrated into that customer? And then part two, separate question is I've gotten this from a client already. It seems like your logistics systems business will be down, but you'll see a spike in Europe from your visionary European customer. And it seems like the balance is positive. But I was curious if you could give us an interplay between those two.

您對該客戶的滲透程度如何？然後第二部分，單獨的問題是我已經從客戶那裡得到了這個。看起來您的物流系統業務將會下降，但您會看到有遠見的歐洲客戶在歐洲的業務激增。看起來平衡是正面的。但我很好奇你能否為我們介紹一下這兩者之間的相互作用。

What is happening? What is happening with the logistics customer to come down? Is it just the end of life of one thing versus the other or something else going on there?

怎麼了？物流客戶下來是怎麼回事？這只是一件事相對於另一件事的生命終點還是那裡正在發生其他事情？

Okay. Going back to the first question, Harsh, I can't really cite volumes or where they are. We obviously have a very good relationship with that customer. But I think you need to listen to their remarks. What I can say is their execution has been very strong.

好的。回到第一個問題，嚴厲，我無法真正引用書籍或它們在哪裡。顯然我們與該客戶有著非常好的關係。但我認為你需要聽聽他們的言論。我只能說他們的執行力非常強。

I think I used the word before. I mean this in the most positive way, that they're a machine and they're executing like a machine, and I mean that very positively. Execution has been strong. They're not fully deployed. Obviously, they wouldn't be fully deployed if I said things are going to pick up next year or increase next year.

我想我以前用過這個詞。我的意思是最積極的方式，他們是一台機器，他們像機器一樣執行，我的意思是非常積極的。執行力一直很強。他們還沒有完全部署。顯然，如果我說明年情況會好轉或增加，它們就不會充分部署。

But if you look at their public -- if it was in our public statements, I think they give the best picture in terms of where they are. In terms of the go forward, endpoint IC volumes, we expect to increase next year. I see that is some project timing-related items. As I noted, we see reader IC down in the fourth quarter due to that project timing. But you shouldn't read anything really meaningful into that.

但如果你看看他們的公開言論——如果是在我們的公開聲明中，我認為他們就自己的處境給出了最好的描述。就未來而言，我們預計明年端點 IC 銷售量將會增加。我看到這是一些與專案時間相關的項目。正如我所指出的，由於該專案的時間安排，我們看到讀卡機 IC 在第四季度有所下降。但你不應該從中讀到任何真正有意義的內容。

It just -- it truly is project timing and the projects they've got going on right now continue to move at pace. I wish I could give you more specific answers, but obviously, I can't say anything more specific at this point in time. But I think the customer speaks a lot for themselves.

這確實是專案時間安排，他們現在正在進行的專案繼續按節奏進行。我希望我能給你更具體的答案，但顯然，我現在不能說更具體的事情。但我認為客戶自己說了很多。

Very helpful, Chris. Congratulations again.

非常有幫助，克里斯。再次恭喜。

Troy Jensen, Cantor Fitzgerald.

特洛伊·詹森，坎托·菲茨杰拉德。

I also want to say congrats on another great quarter here. Maybe first question here for Chris. Could you just talk a little bit more about the Qualcomm partnership? What are the implications and the timing? And is this at all related to RFID getting into tablets and iPhones and just watches and whatnot?

我還想祝賀又一個偉大的季度。也許這是克里斯的第一個問題。能多談談與高通的合作關係嗎？其影響和時機是什麼？這是否與 RFID 進入平板電腦、iPhone 以及手錶等產品有關？

But just an update there would be great.

但只要有更新就太好了。

Yes, Troy. So I might go a little bit long on this one, but I kind of want to set the stage a little bit. I'm going to start by saying that Impinj and the overall RAIN industry, I'm very thankful to Qualcomm coming out with a public statement about RAIN in mobile devices because that public statement has dramatically helped advance the position of RAIN as a data carrier for the digital product passport in the EV combination of that statement and a push from major retailers in Europe has essentially move the ball forward such that RAIN is no longer a question within the standards bodies in Europe as whether it's going to be part of PB but now exactly with the implementation.

是的，特洛伊。所以我可能會在這個問題上說得有點長，但我想稍微做好一些準備。我首先要說的是，Impinj 和整個 RAIN 行業，我非常感謝高通公司發表有關行動裝置中 RAIN 的公開聲明，因為該公開聲明極大地幫助提升了 RAIN 作為資料載體的地位對於EV 中的數位產品通行證，該聲明與歐洲主要零售商的推動相結合，實質上推動了進展，使得RAIN 不再是歐洲標準機構內部的一個問題，因為它是否會成為PB 的一部分，而是現在正是實施。

As we project forward, Qualcomm statement and then some of the follow-ups that happened, particularly at the RAIN Alliance meeting at Florence, the first opportunities are going to be in enterprise mobile.

隨著我們的預測、高通的聲明以及隨後發生的一些後續行動，特別是在佛羅倫薩舉行的 RAIN 聯盟會議上，第一個機會將出現在企業行動領域。

Qualcomm declined a slight time line for consumer mobile, other than to say it's following the enterprise mobile. I actually myself don't believe that it's going to be the implementation in the phones that's going to be pacing us in consumer mobile, but it's going to be the readiness of the entire community in terms of either data resolution in terms of the back-end services and other stuff that has to all get prepared in advance of consumers being able to engage with those connected items.

高通略微拒絕了消費性行動產品的時間表，只表示正在跟進企業行動產品。事實上，我自己並不相信手機中的實現會在消費者行動領域中佔據主導地位，但整個社區在數據分辨率和後台方面都做好了準備。使用這些互聯產品之前做好準備。

So you shouldn't be thinking in months or quarters. It's going to take a bit longer than that to build up the entire back end. But I'm personally incredibly excited because when was the last new significant radio incorporated into a mobile device. These are big -- so minor introductions, but think back when was the last big one. And I firmly think that RAIN is going to be a big one.

所以你不應該以幾個月或幾季來思考。建造整個後端需要比這更長的時間。但我個人非常興奮，因為最後一個新的重要無線電整合到行動裝置是什麼時候。這些都是大事——所以都是小介紹，但回想一下上一次大事是什麼時候。我堅信 RAIN 將成為一場盛大的活動。

We're going to have to get it right. We're going to focus on getting it right. But I'm super excited. So I did my best to answer your question. I didn't give you an exact date, but that's the best I can do.

我們必須把事情做好。我們將集中精力把事情做好。但我非常興奮。所以我盡力回答你的問題。我沒有給你確切的日期，但這是我能做的最好的事情。

No, that was great. I only ask -- you said the first implementation into enterprise mobile applications. Would that specifically go to logistics? Would it be in the logistics, I guess, is my question.

不，那太好了。我只問——你說的是第一個實施到企業行動應用程式。會專門去物流嗎？我想，這會是在物流方面嗎？

Not necessarily. No, it's going to be -- it will be broad-based because those enterprise mobile devices, think mobile devices that employees carry around its stores, carry out in supply chain of logistics centers, they're basically they're kind of the broad base of enterprise mobile devices.

未必。不，它將是——它將具有廣泛的基礎，因為那些企業移動設備，認為員工在其商店中攜帶的移動設備，在物流中心的供應鏈中使用，它們基本上是廣泛的企業移動設備的基礎。

But those chipsets that go into those enterprise devices are essentially the same chip sets, they go into mobile phones. So that's why I said it's not -- the implementation is not going to be -- phone implementation is not going to be what paces the adoption. It's going to be the readiness.

但這些企業設備中使用的晶片組本質上是相同的晶片組，它們也適用於行動電話。所以這就是為什麼我說它不會——實施不會——電話實施不會成為採用的步伐。這將是準備工作。

And so we -- all of us, not just in the entire community, needs to work on that readiness for consumers to connect to items.

因此，我們所有人，而不僅僅是整個社區，都需要努力讓消費者做好與商品建立聯繫的準備。

Yes. Awesome lot of the excitement. A couple of follow-up and quick for Cary. I was hoping you could kind of give us a little bit more incremental gross margin guidance, thoughts on kind of how much does it spike here in Q4. And is there any roll through in the next year? Or just any insight would be helpful.

是的。令人興奮的很多。卡里的一些後續行動和快速行動。我希望你能給我們更多一點增量毛利率指引，關於第四季毛利率飆升多少的想法。明年有滾動嗎？或者只是任何見解都會有幫助。

Yes. Sure, Troy. So if you unpack our guidance, you could reasonably get to a Q4 gross margin around 53%. Understand that there's a couple of benefits in Q4 that we're calling out. First, with the strength that we already talked about in systems, we see a richer systems mix on the revenue profile.

是的。當然，特洛伊。因此，如果您了解我們的指導，您可以合理地獲得 53% 左右的第四季度毛利率。請理解，我們在第四季度提出了一些好處。首先，憑藉我們已經討論過的系統優勢，我們在收入狀況上看到了更豐富的系統組合。

And then we're also shipping some high-margin authenticity endpoint ICs into those Asia-based pilots, which there's small quantity, but those are a little bit higher IC, therefore, higher-margin products for us. So that provides a little bit of a tailwind into the fourth quarter gross margin.

然後，我們也將一些高利潤的真實性端點 IC 運送到亞洲的試點地區，雖然數量很少，但這些 IC 的價格較高，因此對我們來說是利潤較高的產品。因此，這為第四季度的毛利率提供了一點推動力。

Then as you look over the long term, clearly, M800 plays a role in our gross margin accretion. And what I would say is that we remain confident in the gross margin targets that we outlined at our 2023 Investor Day.

從長遠來看，很明顯，M800 在我們毛利率的成長中發揮著重要作用。我想說的是，我們對 2023 年投資者日概述的毛利率目標仍然充滿信心。

Christopher Rolland, Susquehanna.

克里斯多福羅蘭，薩斯奎哈納。

Just following up on the Qualcomm topic as well. Are there any ways to monetize the reader IC in the mobile device? Or does Qualcomm provide that like just on the mobile device side, maybe you can talk about if there are any economics there, either IP or hardware. Or is this really just a driver of endpoints and more general adoption for you guys?

也只是跟進高通的話題。有沒有辦法透過行動裝置中的讀卡機 IC 貨幣化？或者高通是否提供像行動裝置端的功能，也許你可以談談那裡是否有經濟性，無論是IP還是硬體。或者這真的只是端點的驅動因素以及你們更普遍的採用？

Yes, Chris, thanks for the question. I'm pausing a little bit here. Without saying anything specific, I think you really should think about it, number one, as a driver of broad-based industry adoption; and number two, as a driver for differentiation and advancements in the market. Differentiation and advancement in the market is around authentication, privacy, sustainability security. The differentiation in the market is cloud services that support not only those protection features but also consumers.

是的，克里斯，謝謝你的提問。我在這裡暫停一下。不用說任何具體的事情，我認為你真的應該考慮它，第一，作為廣泛行業採用的驅動力；第二，作為市場差異化與進步的驅動力。市場的差異化和進步圍繞著身分驗證、隱私、永續性安全。市場的差異化在於雲端服務不僅支援這些保護功能，也支持消費者。

So think about it as the opportunity for enterprises to engage consumers through their connected items, and in that engagement, rely on the prior things that you spoke to. So you think of it first and foremost as a broad endpoint IC opportunity and perhaps equally important as a broad ecosystem play and much less so as an opportunity for the ICs in phones.

因此，請將其視為企業透過其互聯產品吸引消費者的機會，並且在這種參與中，依賴您之前交談過的事物。因此，您首先將其視為廣泛的端點 IC 機會，也許與廣泛的生態系統同等重要，更不用說作為手機 IC 的機會了。

Understood. I was just wondering if you could share any economics in the reader at all.

明白了。我只是想知道你是否可以在讀者中分享一些經濟學知識。

Yes. I told you what the prices are. I can't answer that question directly. We haven't said anything publicly on that front. But I think it kind of gave you our thought process in terms of what we see as the price.

是的。我告訴過你價格是多少。我無法直接回答這個問題。我們還沒有在這方面公開說過任何話。但我認為這為您提供了我們對價格的思考過程。

And the price are the things by a huge amount, surprising part of the things that I just highlighted, and those are our focus areas. It's the endpoint and the ecosystem opportunity at large, which gets monetized by those endpoint ICs cloud services software just a bunch of stuff.

價格是我剛才強調的數量龐大、令人驚訝的部分，這些都是我們的重點領域。這是端點和整個生態系統的機會，可以透過端點 IC 雲端服務軟體等一堆東西來貨幣化。

Excellent. And then for a second question, Chris, I think you talked about food and order of magnitude, bigger the general merchandise. So that's pretty incredible, if I understood that correctly. As these products are attached to lower and lower priced products, and, of course, higher volumes with those. Is there any point at which these tags, which could be, call it, $0.05 to $0.10 each could be reused by your customers? Or do you fully expect them to be disposable?

出色的。然後，對於第二個問題，克里斯，我認為您談到了食品和數量級，更大的是一般商品。如果我理解正確的話，這真是令人難以置信。由於這些產品與價格越來越低的產品有關，當然，這些產品的銷售量也越來越大。這些標籤（每個標籤 0.05 至 0.10 美元）是否可以被您的客戶重複使用？或者您完全希望它們是一次性的嗎？

Yes. So a couple of points there, Chris. Number one, I think you should be thinking about lower price points even straight out the gate. It's not $0.05 to $0.10. It's well under that.

是的。克里斯，有幾點。第一，我認為你應該考慮更低的價格，甚至是直接出去。這不是 0.05 美元到 0.10 美元。就在這個之下。

Number two, you should be thinking about the -- a lot about the elasticity of demand, and that is the label price point comes down. It drives new opportunities, and you should view the food opportunity as getting to the point where we can get the price points needed by the food market to actually tag individual (inaudible) items.

第二，你應該考慮很多關於需求彈性的問題，那就是標籤價格點下降。它帶來了新的機會，您應該將食品機會視為我們可以獲得食品市場所需的價格點來實際標記單一（聽不清楚）商品的程度。

And number three, I don't see much if any opportunity for reusable tags. Food items, the packaging is disposable. In fact, it would be hard to even think of a scenario where the FDA would allow to be using a tag or any part of packaging associated with an item.

第三，我認為可重複使用標籤的機會不多。食品、包裝是一次性的。事實上，很難想像 FDA 會允許使用與商品相關的標籤或包裝的任何部分。

So the price points of the additional labels that go on food items need to be such that the tag itself can be discarded. The price point that I believe will allow gigantic industry adoption, it's probably best set by (inaudible) in Japan a couple of years ago. They did an analysis and said basically, we get down to about $0.015 incremental cost for the wireless digital identifier.

因此，食品上附加標籤的價格點必須使得標籤本身可以被丟棄。我相信這個價格點將允許巨大的行業採用，它可能是最好的（聽不清楚）幾年前在日本設定的。他們進行了分析並表示，基本上，我們將無線數位識別碼的增量成本降至約 0.015 美元。

It makes sense to tag every item of Japanese convenience stores, and the average selling price for those items was between $1 $1.50. So that will kind of kind of give you a benchmark of where we need to get to in order for broad -- a super broad adoption to happen.

對日本便利商店的每件商品都貼上標籤是有意義的，這些商品的平均售價在 1 美元到 1.50 美元之間。因此，這將為您提供一個基準，告訴您我們需要達到什麼程度才能實現廣泛的——超廣泛的採用。

Guy Hardwick, Freedom Capital Markets.

蓋伊‧哈德威克，《自由資本市場》。

Congratulations on the results. Tremendous. So could you update us on the M800 certification? How many more inlay partners have been certified? And maybe you can give us some bit of color around that and the sort of continued ramp of the M800 chip, please.

祝賀結果。巨大的。能為我們介紹一下 M800 認證的最新情況嗎？還有多少 Inlay 合作夥伴獲得了認證？也許您可以給我們一些關於這個問題的資訊以及 M800 晶片的持續斜坡。

This is Hussein. I'll fill that question. Thank you for the question. So far, we've heard that two of our major inlay partners have gotten certification for the M800, are in the process of designing multiple inlays and multiple products to service their enterprises. And we believe that behind them, there are additional major customers that are on the verge of getting their certification.

這是侯賽因。我來回答這個問題。謝謝你的提問。到目前為止，我們聽說我們的兩個主要 Inlay 合作夥伴已經獲得了 M800 的認證，正在設計多種 Inlay 和多種產品來服務他們的企業。我們相信，在他們的背後，還有其他即將獲得認證的主要客戶。

We expect to see -- in general, we're seeing the break, and we're expecting to see multiple customers coming out fairly soon with products space. So right now, the M800 ramp is looking very promising. It's growing as we had expected and hoped. It's a healthy ramp and it looks like customers are pleased with the product, and they're getting their certifications be able to launch in the market.

我們預計會看到——總的來說，我們正在看到突破，我們預計很快就會有多個客戶推出產品空間。所以現在，M800 坡道看起來非常有前途。它的增長正如我們所預期和希望的那樣。這是一個健康的成長，看起來客戶對產品感到滿意，他們正在獲得能夠在市場上推出的認證。

Okay. And just as a follow-up on the systems, you guided to sequential growth in systems revenue. Is there a percentage kind of number you can put behind that for us?

好的。正如係統的後續行動一樣，您引導系統收入連續成長。您可以為我們提供一個百分比數字嗎？

This is Cary, Guy. Maybe the way I would -- this is Cary, Guy. Maybe the way I would think about it is we do look at our guide in context of endpoint ICs and systems -- so we have guided endpoint ICs to be down sequentially based on normal seasonality. And the reason we have down seasonality in Q4 is we ship in front of the holiday season for both retailers and logistics providers. Normal seasonality in Q4 for endpoint ICs is down 5% to 10%.

這是卡里，蓋伊。也許我會這樣——這是卡里，蓋伊。也許我的想法是，我們確實在端點 IC 和系統的背景下查看我們的指南，因此我們指導端點 IC 根據正常季節性按順序關閉。第四季季節性下降的原因是我們在假期季節之前為零售商和物流提供者出貨。第四季端點 IC 的正常季節性下降 5% 至 10%。

And I signaled that we'd be on the more favorable side of that. So if you use that as an anchor point and our overall guide, you can back into where we think our systems business is.

我表示我們會站在更有利的一方。因此，如果您使用它作為錨點和我們的整體指南，您可以回到我們認為我們的系統業務所處的位置。

Scott Searle, ROTH Capital.

史考特·塞爾，羅斯資本。

Congrats on the quarter. Chris, just a quick clarification, first off, on DPP. I just want to make sure I heard this correctly. It sounds like there's been a lot of advancements since the original RAIN Alliance blog post and momentum with Qualcomm. But is RAIN certified at the current time?

恭喜本季。克里斯，首先就民進黨的問題進行快速澄清。我只是想確保我聽到的是正確的。聽起來自從最初的 RAIN Alliance 部落格文章以及與 Qualcomm 的合作以來已經取得了許多進步。但目前 RAIN 是否已獲得認證？

And/or do you still expect it to be a multimodal technology in terms of DPP implementation? And then maybe, Cary, seasonality into the March quarter. I know it's a little bit early, but historically, it's -- in recent years, it's kind of been all over the place.

和/或您仍然期望它在 DPP 實施方面成為一種多模式技術嗎？然後，卡里，也許季節性進入三月季度。我知道這有點早，但從歷史上看，近年來，這種情況到處都是。

So I was wondering if you could remind us about how things are starting to shape up at this point in time. And if pricing discounts, right, so we typically had the annual price decline kick in, in the March quarter, is that something that's coming back into play in 2025?

所以我想知道你是否可以提醒我們此時此刻事情是如何開始發展的。如果定價折扣，那麼我們通常會在 3 月的季度開始年度價格下降，那麼這種情況會在 2025 年重新發揮作用嗎？

So thanks, Scott, and I'll take the first question. So RAIN is not yet an approved data carrier for DPP, but that doesn't really say anything because nothing is an approved data carrier for DPP because the standards aren't done yet. So what's happened now is the dialogue has changed.

謝謝斯科特，我將回答第一個問題。因此，RAIN 還不是 DPP 批准的資料載體，但這並不能說明什麼，因為沒有任何東西是 DPP 批准的資料載體，因為標準尚未完成。所以現在發生的事情是對話發生了變化。

Previously, the dialogue was barcodes and QR codes could be an approved data carrier, NFC could be an accrued data carrier, but RAIN is this new thing, is how our consumer is going to get access to information. With Qualcomm statement and a major push from significant enterprise end users, not just as I said, in the retail space before, but it goes beyond the retail space.

以前，人們討論的是條碼和 QR 碼可以是經過批准的資料載體，NFC 可以是累積的資料載體，但 RAIN 是一個新事物，是我們的消費者獲取資訊的方式。隨著高通的聲明和重要企業最終用戶的大力推動，不僅僅是像我之前所說的那樣，在零售領域，但它超越了零售領域。

It includes automotive and tires and others, significant push. The dialogue has fundamentally changed. It's now really no longer about whether RAIN is going to be an approved data carrier but how we get the standards being done and everything approved.

它包括汽車和輪胎等，推動力顯著。對話發生了根本性的變化。現在真正的問題不再是 RAIN 是否會成為經批准的資料載體，而是我們如何制定標準並批准所有內容。

So you should expect multimodal approvals given the strength of the end-user commitments that they signaled in those standards meetings in Europe. If you want me to place my bet and of course, I'm biased. But if you want me to place my bet, RAIN will be the carrier.

因此，鑑於最終用戶在歐洲標準會議上所做的承諾，您應該期待多式聯運的批准。如果你想讓我下注，當然，我有偏見。但如果你想讓我下注，RAIN 就是承運人。

Everybody goes -- the data carrier everybody goes forward with because it's already in the supply chain and will extend it to consumers and the opportunity is huge. That doesn't mean the other stuff is going to be locked out. But I think we've moved from a question mark to being in a pole position.

每個人都在使用——每個人都在使用的數據載體，因為它已經在供應鏈中並將其擴展到消費者，機會是巨大的。這並不意味著其他東西將被鎖定。但我認為我們已經從問號變成了領先地位。

Okay, Scott. And then I can take the second part of your question. So from an endpoint IC pricing negotiation, those conversations are just now getting underway. So stay tuned, we'll keep you apprised of that. To your question regarding Q1 seasonality, you're right, it's been all over the place.

好吧，斯科特。然後我可以回答你問題的第二部分。因此，從端點 IC 定價談判來看，這些對話現在才剛開始。因此，請繼續關注，我們會及時通知您。對於你關於第一季季節性的問題，你是對的，它無處不在。

I would say historically, we saw seasonality being flat to slightly down. More recently, we've seen it as flat to slightly up. So we kind of think of it right now as flattish for endpoint ICs. I'm thinking specifically the endpoint ICs here. And I think that's why I believe you know our philosophy, we guide one quarter in time and then we go and execute against that.

我想說，從歷史上看，我們看到季節性持平甚至略有下降。最近，我們看到它持平到略有上升。因此，我們現在認為端點 IC 的表現是扁平化的。我在這裡特別考慮的是端點 IC。我想這就是為什麼我相信你了解我們的理念，我們及時指導一個季度，然後我們去執行它。

Got you. Very helpful. And maybe if I could just quickly on the systems front. Look, that's a lead indicator. I know there -- it seems like there's a lot of activity in the pipeline, but I'm wondering if you could help us understand either pilots or other activity to be that lead indicator as we get into 2025.

明白你了。非常有幫助。也許如果我能在系統方面快速發展的話。看，這是一個領先指標。我知道，似乎有很多活動正在醞釀中，但我想知道您是否可以幫助我們了解試點或其他活動是進入 2025 年時的先行指標。

You start to talk about food service. It sounds like other big box guys are being pulled in by the conditioning of the Walmart supply chain. I'm wondering if you could just leave us a few more breadcrumbs in terms of how that is shaping up as we go into 2025.

你開始談論餐飲服務。聽起來其他大型零售商正被沃爾瑪供應鏈的調節所吸引。我想知道您是否可以給我們留下更多關於 2025 年情況的資訊。

Okay. I'm going to start, Cary and Hussein, feel free to jump in. So Scott, we're putting a very significant effort into solutions and the systems that enable our solutions, including our fixed readers, our ICs and software and cloud services. We typically don't cite anything publicly until the end customers themselves said something publicly. But as I noted in my prepared remarks, our pipeline is fairly large.

好的。我要開始了，卡里和侯賽因，請隨意加入。雲端服務。在最終客戶自己公開發表言論之前，我們通常不會公開引用任何內容。但正如我在準備好的發言中指出的那樣，我們的管道相當大。

Pipeline is additional Fortune 500 and Fortune 100 enterprises who are coming to -- enterprises who are coming to us where unsolved our unmet business needs. Those business needs can be around inventory, parcel sortation, dock doors, just many, many use cases.

管道中有更多的財富 500 強和財富 100 強企業正在向我們尋求幫助，因為我們未滿足的業務需求正在向我們尋求幫助。這些業務需求可能圍繞著庫存、包裹分類、碼頭門等很多很多用例。

I can't give you a number. We didn't cite a number. I can't tell you how soon we're going to be able to go public. What I can say is that given the size of those enterprises, adoption doesn't happen overnight. But given the enthusiasm I'm containing, I feel really good about the solution space.

我不能給你一個號碼。我們沒有引用具體數字。我無法告訴你我們多久才能上市。我可以說的是，考慮到這些企業的規模，採用不會一蹴可幾。但考慮到我所擁有的熱情，我對解決方案空間感覺非常好。

And I'll say one more thing, and then I'll see if the other gentlemen want to add anything in. I said multiple times over the past years that in our industry, really what it takes for an industry to move forward is to have one giant end user take the lead.

我還要說一件事，然後我會看看其他先生是否想添加任何內容。用戶帶頭。

So we had, in the early days in retail apparel, that's how we got off the ground with the Kaplan, Marks & Spencer and Macy's. In later years, the second large North American supply chain and logistics end user service points reflecting logistics across the line. The large North American enterprise that's for general merchandise going that forward. Now we've got a very large grocer -- very, very large grocer stepping in. And that's my experience.

所以，在服飾零售業的早期，我們就是這樣起步的，像是卡普蘭 (Kaplan)、瑪莎百貨 (Marks & Spencer) 和梅西百貨 (Macy's)。隨後幾年，北美第二大供應鏈和物流終端用戶服務點體現了物流的全線覆蓋範圍。這家大型北美企業致力於日用百貨的發展。現在我們有一個非常大的雜貨店——非常非常大的雜貨店介入。

It makes one big one to galvanize an industry moving. So I'm incredibly excited about the solutions opportunities in front of us today and just stay tuned.

它使一個巨大的事件刺激了一個產業的發展。因此，我對今天擺在我們面前的解決方案機會感到非常興奮，請繼續關注。

And Scott, this is Cary. To your question on system seasonality, it is a little more variable just given project timing. But generally, what we see is Q4 is the strongest for the reasons I mentioned previously, and then Q1 is down in the 10% to 20% range.

斯科特，這是卡里。對於您關於系統季節性的問題，考慮到專案時間安排，變數會更大一些。但總的來說，我們看到的是，由於我之前提到的原因，第四季度是最強的，然後第一季下降了 10% 到 20% 的範圍。

Congrats on the quarter.

恭喜本季。

Mark Lipacis, Evercore.

馬克·利帕西斯，Evercore。

Chris, when you mentioned earlier in the script, and I forgot the exact language you use that other retailers are pigging back -- piggybacking on the large retailer. Can you just give us a sense of what that means. Maybe talk about the design cycle to win a big program? Like what are the steps? And does this mean that you got a bunch of companies on the sidelines just watching and doing check-ins?

克里斯，當你在劇本前面提到時，我忘記了你使用的其他零售商正在利用的確切語言——利用大型零售商。您能否讓我們了解一下這意味著什麼？也許談談贏得一個大專案的設計週期？例如步驟是怎樣的？這是否意味著有很多公司在場邊觀看並進行簽到？

Or they start to do working on designing their systems or business processes with you? If you could provide maybe color on that or the design cycle and where some of these guys are that I think that would be helpful.

或者他們開始與您一起設計他們的系統或業務流程？如果您可以提供有關該設計週期的顏色以及其中一些人的位置，我認為這會有所幫助。

Yes. Thanks, Mark, and I'm happy to. It's actually fairly simple. So at least for retail store inventory, inventory is driven by handheld count. And the store employee carries a handheld around.

是的。謝謝，馬克，我很高興。實際上相當簡單。因此，至少對於零售商店庫存來說，庫存是由手持設備數量驅動的。商店員工隨身攜帶手持設備。

They can read 100 items per second or even faster, and they do quick inventory in the stores. Let's call it twice a week. And so the difference between retail apparel and retail general and merchandise is to send somebody over to the general merchandise category. What's difficult or what has historically been difficult is getting the tags on the items because there wasn't the infrastructure to put tags on this gigantic range of items, everything from stationary to toys to car batteries and all these things. And so that's where the real work effort is, tagging better.

他們每秒可以讀取 100 件商品，甚至更快，並且可以在商店中快速盤點。我們每週打電話兩次吧。因此，服裝零售與一般商品零售之間的區別在於將某人轉入一般商品類別。困難或歷史上困難的是在物品上貼上標籤，因為沒有基礎設施可以在如此龐大的物品範圍內貼上標籤，從文具到玩具再到汽車電池等等。這就是真正的工作重點，更好地標記。

And you put it on a small stationary item without degrading the look at the stationary and having to put it in a box like. Think of a box that there are toys in but there's no other stickers on the box. The large North American retailer has cracked a lot of those nuts, and the tags are going on items today.

你可以把它放在一個小的固定物品上，而不會降低固定物品的外觀，也不必把它放在一個盒子裡。想像一個裡面有玩具的盒子，但盒子上沒有其他貼紙。這家北美大型零售商已經破解了許多這樣的難題，今天這些標籤已經貼在商品上了。

So what we're seeing now is other general merchandise retailers, basically as they place RFQs for products in the coming year, they're just saying the products need to contact, and it's nothing more than that. They're just placing (inaudible) this category of product with (inaudible).

所以我們現在看到的是其他百貨零售商，基本上他們在對來年的產品進行詢價時，他們只是說產品需要聯繫，僅此而已。他們只是將（聽不清楚）這類產品與（聽不清楚）放在一起。

And then they go and do the inventory and expand the inventory in their stores. So that piggybacking is actually a very fast piggyback. Does that help? Or is there -- did I answer all the --?

然後他們去清點庫存並擴大商店的庫存。因此，這種搭載其實是一種非常快的搭載。這樣有幫助嗎？或者是──我回答了所有的──嗎？

Yes. And if I may just have a follow-up on that because I think it's very helpful. So they place RFQs to their suppliers that the products need to be tagged, but it seems like there's also a process of making the decision to flip the switch. And what does that involve? I mean I imagine that they need to redesign business processes and that takes some kind of effort also. So if you could just help us understand how that next step plays out.

是的。如果我可以對此進行跟進，因為我認為這非常有幫助。因此，他們向供應商發出詢價，要求產品需要貼上標籤，但似乎還需要一個做出切換決定的過程。這涉及什麼？我的意思是，我認為他們需要重新設計業務流程，這也需要一些努力。因此，如果您能幫助我們了解下一步將如何進行。

Yes. So think about it this way. If you've got an enterprise that sells to people, customers and they are already using tagged apparel items, then they already have the business processes in place. So they just say, okay, we were doing first apparel, then we moved to footwear, and we just added categories and now we're adding this other category in this other category and this other category.

是的。所以這樣想吧。如果您有一家向人員、客戶銷售產品的企業，並且他們已經在使用標籤的服裝產品，那麼他們已經擁有適當的業務流程。所以他們只是說，好吧，我們首先做服裝，然後我們轉向鞋類，我們剛剛添加了類別，現在我們在其他類別和其他類別中添加了其他類別。

So flipping the switch, it's not instantaneous, but it's way faster than anything than kind of opening or creating a whole new market or something like that because they already know the processes for apparel and footwear.

因此，打開開關，它不是瞬時的，但它比開放或創建一個全新的市場或類似的東西要快得多，因為他們已經知道服裝和鞋類的流程。

So they just add some additional categories there. And they already have the employees in the store, employees with handhelds in the stores. So essentially, the ability to leverage those tags is already built out. And so it is a quick process to add additional items if you're already using tags on apparel and footwear.

所以他們只是在那裡添加了一些額外的類別。他們已經在商店裡有了員工，在商店裡有手持手持設備的員工。因此，從本質上講，利用這些標籤的能力已經建立起來。因此，如果您已經在服裝和鞋類上使用標籤，那麼添加其他商品是一個快速的過程。

(Operator Instructions) Harsh Kumar, Piper Sandler.

（操作員說明）Harsh Kumar，Piper Sandler。

Chris and Cary, I did want to ask about -- you mentioned that you had -- you will have some authentification-type opportunity come through for you in the fourth quarter related to Asia. Could you just talk about -- is this the start of something big that you've been talking about last year? Or you think this is just onetime in nature? Or how should we look at this opportunity?

克里斯和卡里，我確實想問一下——你們提到過——你們將在第四季度獲得一些與亞洲相關的認證型機會。你能談談——這是你去年一直在談論的大事的開始嗎？還是你認為這只是一次？或者說我們該如何看待這個機會？

So Harsh, we had this Asia opportunity for a while and what we're seeing now is some replenishments into that opportunity. And so we're happy to see those replenishments. I will say two things about our authentication opportunity. Number one is I believe it's critically important going forward not just to us but to the market overall. In fact, I'd say it's essential.

所以，嚴酷的是，我們在亞洲的機會已經有一段時間了，我們現在看到的是對該機會的一些補充。因此，我們很高興看到這些補充。關於我們的認證機會，我要說兩件事。第一，我相信這不僅對我們而且對整個市場至關重要。事實上，我想說這是必要的。

As you think about RAIN going into consumer mobile devices, today, tags just expose a number and they send line text and there's no protection around it. I don't know of any other wireless technology and a mobile device that doesn't have protection and security built into it.

當您想到 RAIN 進入消費者行動裝置時，今天的標籤只是公開一個數字，然後發送行文本，並且沒有任何保護。我不知道有任何其他無線技術和行動裝置沒有內建保護和安全功能。

So I firmly believe that the authentication is absolutely necessary. And that's why we introduced our product line and our cloud service associated with it. That said, the pace of adoption has been slower than we had originally hoped for, and we will be redoubling our efforts going forward to ramp authentication and additional security efforts to drive adoption so that we are ready for that consumer opportunity from a consumer perspective as it comes.

所以我堅信認證是絕對必要的。這就是我們推出產品線以及與之相關的雲端服務的原因。也就是說，採用的速度比我們最初希望的要慢，我們將加倍努力，加大身份驗證和額外的安全工作來推動採用，以便我們從消費者的角度為消費者機會做好準備：它來了。

This concludes our question-and-answer session. I would like to turn the conference back over to Chris Diorio for any closing remarks.

我們的問答環節到此結束。我想將會議轉回克里斯·迪奧裡奧（Chris Diorio）發表閉幕詞。

Thank you, Gary. I'd like to thank all of you for joining our call today, and thank you for your ongoing support. Bye-bye.

謝謝你，加里。我要感謝大家今天加入我們的電話會議，並感謝你們一直以來的支持。再見。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。