I thought this was a debate without notes. I need notes. Sorry. All right, great. Good morning, everyone. Thank you so much for coming. My name is Toshiya Hari. I cover the semiconductor space at Goldman Sachs. Very excited to have the team from Impinj with us this morning. We have Chris Diorio in the center, Co-founder and CEO. We have Cary Baker, the CFO. I do have a lot of questions, but please do chime in. Thank you for coming, first of all. Thank you for having us. Really, really, really great to see you guys. We appreciate it. Thank you. I do have long-term questions, but I did want to start relatively short term, if that's okay. It's been a while since you reported results, but very strong Q2 results. You guided Q3 revenue up 6% at the midpoint, excluding licensing revenue you recognized in Q2. Looking back, what were some of the key highlights in Q2, and what sort of dynamics, positive or cautious, went into the Q3 guide? Yeah, so in Q2, we saw strength across three areas that exceeded our expectations. First, the retail environment continues to improve, and it's been improving for the last several quarters at this point, so that's been very nice to see after a difficult 2023. The second factor was in our general merchandise ramp. That program, though a little bit delayed, kicked off in earnest in the fourth quarter of last year and has been growing nicely on a sequential basis since then, and even exceeding our expectations each quarter, so we're starting to see some real momentum in general merchandise, and then finally, you know, there's a long tail of applications for the RAIN industry that are all coming back after a softer economic period. As we look to Q3, we included those factors, but we also incorporated some macro factors that we track on a regular basis. So retail apparel imports have been improving on a sequential basis, but are still tracking below apparel sales. So there's still a gap between those two lines, and that tells us that retailers are yet to reach a normalized level for their inventory levels. We also track a subset of public retailers, call it 15 or so, and all but a couple are growing sales faster than they're growing their inventory. So again, another data point out there that suggests maybe retailers haven't reached their normalized level. So strong day-to-day activity that we're seeing, but on a macro level, we're seeing mixed signals, so we just felt it would be prudent to go into our guidance. We have been super seasonal for three quarters in a row now, and at some point that normalizes, and you just saw that prudence into our guidance. Okay, understood. That's very helpful. Cary, you sort of addressed my second question, but I'll go ahead and ask it anyways. Okay. Inlay partner inventory, it's been a source of volatility the past couple of years. Relative to what you would consider healthier normal, again, I think you've addressed this, but where are we? Where are your partners? And I guess most importantly, has your visibility into their inventory improved at all post, you know, the past couple of years? Yeah. Thank you. So in the middle of last year, called the June quarter, and late in the June quarter, we overbuilt our channel inventory. We had different expectations for a retail recovery, and we thought the general merchandise ramp was going to happen earlier. We recognized that in early July, and then quickly began working down that channel inventory. With our largest inlay partners, who drive the bulk of the volume, we exited the year in a healthy place, and our channel inventory has continued to be healthy throughout the year. We actually took channel inventory down a little bit in the second quarter, but I'd still call it in that healthy range. We always try to learn from these cycles. We know they're gonna happen again, and we want to be better prepared for it. So we've increased the frequency of our channel inventory reporting, so we're able to catch channel builds much quicker this time around. And we're also reaching deeper into the stack, into the service bureau level, to understand their inventory levels. And it was that level that we and our inlay partners missed last time. So now that we have better visibility to it, I think we'll be better prepared for the next cycle. Time will tell. Okay, great. Maybe one for you, Chris. The endpoint IC market and the growth outlook going forward, it's a market that's grown at roughly 30%, give or take, on a fairly consistent basis the past 10, 15 years. For those who are relatively new to your story and the RAIN RFID market, the 45 billion units or so, the industry shipped in 2023, how does that break down by end market or application? And do you believe, most importantly, do you believe the industry can maintain that 30%, plus or minus, growth rate over the next 5 to 10 years? So the early adopter for our industry was retail apparel, and retail apparel still probably represents a bit north of 50% of the overall market demand for endpoint ICs. Coming up rapidly behind retail apparel is supply chain and logistics and retail general merchandise, both going very strong, and then beyond that, there's a long tail of applications, everything from aviation baggage tagging, to marathon running, to healthcare, to Global Entry cards and Enhanced Driver's Licenses, and the long tail is really long. The long tail probably represents, I'm gonna say, 25%-30% of the market and continues growing, so that's roughly the breakdown. We see... As I look into the future, we see the retail apparel continuing. We're still probably only 30% penetrated overall in retail apparel. General merchandise and supply chain and logistics is far less than 30% penetrated, as is the long tail. On top of that, we see a food opportunity, a nascent food opportunity coming along, which we'll get a chance probably to talk about in a bit. And then beyond that, we see consumer opportunities. Qualcomm's recent statement about the fact that RAIN reading capability and enterprise mobile is measured in quarters and consumer will follow points to a gigantic consumer opportunity for consumers to engage with their connected items. So I see a very bright future, and I'm as excited or more excited than I have ever been. ... I didn't know that was possible. Chris, you talked about food. Again, it's relatively nascent. I feel like you've been mentioning food more frequently on your calls- Yeah - particularly the last call. I guess, what's going on in that market? Is there an inflection point coming? If you can sort of expand on the food market, that would be helpful. I've been reticent to speak about food because it's such a gigantic opportunity, and in my experience, the bigger the opportunity, the slower it is to ramp. And so even when some of our partners were speaking about food, I didn't want to talk about it. But what we're seeing now is a true ramp in the food space. It's still early days, but we see demand around the supply chain for food traceability. We see demand in quick service restaurants for food freshness, and we're actually seeing demand at the grocer level, also for food freshness, primarily on items that are tagged in store. Think bakery, proteins, fish, meats, those kind of products, things that are tagged in store, that have a shelf life, and they need to be used either before their expiration date or donated before their expiration date. Otherwise, it's a complete loss, so a couple of quarters, as we started to see things get moving, everybody else convinced me that we should start talking about food like others are doing, and we are very excited about that food opportunity. That opportunity, however, just for everybody to really think through, is gigantic. It's an order of magnitude larger than anything else, so don't have illusions that it's all gonna ramp at some incredible pace, but what we do see is point solutions starting to pilot significantly, and some of them adopt, and I believe that even those point solutions around food freshness are still very large, and they point to an opportunity in the overall food space. Interesting. I guess as a quick follow-up, I'm curious, from a geographical standpoint, can you point to any specific geos, countries where you're seeing food kind of take off, or is it fairly broad-based, if you will? Or should I not look at it that way? North America. North America, okay. Yeah, North America's leading by a significant amount. There are food opportunities in Asia and Europe, but it's North America's leading by a lot. Okay, interesting. Okay, and you mentioned a couple of sort of applications within food. Is there one that really stands out in terms of the potential inflection? The one that I'm most excited about is in-store food freshness. We've always had some amount of tagging for supply chain food freshness. The quick service restaurants that have come on have kind of added to that, but I'm really excited about in-store food freshness. Some of the major grocer chains, just in like one category, for example, bakery, can lose more than $1 billion a year in food waste. And when I say lose it, like I said, they don't even get to donate it. It's just lost. Lost. Ordering items based on an expiration date, marking them down early, getting them off the shelves before they're expired, and donating them so they can get a write-down on them is a real value proposition that can recover some of those billions of dollars that are lost in food waste. Got it. Okay. I hear that, and the value prop is just enormous, right? I mean, that was a food example, but you could sort of make... I'm sure you can make similar arguments across different applications. To the extent you and your partners have engagements with potential customers, and to the extent there have been episodes where they ultimately decided not to work with RAIN RFID, what is typically the pushback? Seems like a no-brainer. The bakery- I'm gonna tell you, it doesn't happen very often where we get an enterprise coming in and say, "We're considering this RAIN RFID adoption," and then not going. What ends up happening is they modulate the pace relative to the difficulty of doing the deployment. And deployment difficulty, the number one aspect of that, is getting the tags on the items. The number two aspect of that is enterprises retooling their operations to track items at the unit one level. So it's significantly a software effort in their back end. And then number three is basically retooling their store operations for employees and everything else around how to run a store differently when you're using RAIN RFID. So, the thing that excites me about that food opportunity is that at least for the perishable items in a grocery store, you don't have to tag at source. They don't have to get their suppliers to tag because the tagging happens in the store, so the grocers are in control of their own tagging. That's a big deal. The impediment, the thing that's kind of slowed down general merchandise, has been getting tags on a gigantic range of items because it's just hard. You know, think of a manufacturing line that doesn't put any kind of a sticker on a box. Well, now you have to add a sticker. How do you do it? Where do you put it? Do you actually embed it in? Do you stick it inside? There's all these questions that have kind of slowed down the ramp of general merchandise. For grocery, the categories we're talking about, the employees put the tag on in the store. Now, it's just a slightly different kind of tag because it has an antenna inside of it. So that's why I see this food opportunity as having the potential to really go. Okay. So it's very rare for a potential customer to say, "No." It's just the pace of- It's generally- - adoption. In fact, I can't think... I talked to Cary and Andy about this just a minute, a little ago. We couldn't come up with any names where companies have come in, done their exploration, and stepped back and said, "No." They decide the pace of the deployment, the size and scope of the initial rollout, but I can't think of any that have said, "No. Okay. Just a quick follow-up then. Yeah. Yeah, maybe we need a mic. Sorry, sorry. Yeah. Really, it's a very quick follow-up. If it's that simple as getting the tagging done in-store for grocers. Is it possible to go back with some of these retail clients, rethink things, and instead of having it tagged at the manufacturer and sent on pallets and then kind of worked into your system, why not have the Targets, the Walmarts, and so forth, tag when they receive the equipment? They just don't wanna do it, or why not rethink that and maybe speed up the retail adoption? There's a couple answers to that question. Number one, the accuracy and reliability of them doing it in their stores and in their operations, with where they don't normally put tags on items, is the complexity is pretty high. They don't have a single choke point or any kind of place to do it. And in general, the tags in, for example, retail apparel, today are embedded in the price label. I mean, they're essentially invisible inside the price label. The inlay providers have done such a good job there, and going forward, the ICs are just becoming, the IC and the antenna of the tag, becoming more and more an integral part of the item. So what you're gonna see over the next couple of years is the labels being sewn in. They're already in care labels, they're in sewn in labels in a reasonable fraction of garments, and more and more, you're gonna see the garments, the footwear, and everything shipped with the IC as an integral part of the item. That direction, once you can make the tags washable, which is a significant effort ongoing now, allows traceability through an item's entire life cycle, all the way through to recycling at end of life. We'll probably get a chance to talk about that a little bit, but that end of life recycling, especially, with some of the Europe, EU initiatives, has real value, so in the early days, retailers did tag in stores. It was too costly, too complicated, too error-prone, and it just was easier to do the source tagging, and I believe that's how retail, overall, general merchandise will go. Just this food opportunity is a little different because people already put the tags on, so you already have the infrastructure built. Maybe on that point, so Digital Product Passport, DPP opportunity, in the EU, to level set, what is it and how could it drive business for you medium to long term? For years, we've been talking about the idea of a digital twin. Every physical item has a digital twin in the cloud. In the European Union, it's called a Digital Product Passport. The EU has legislated the DPP, where every item sold or in the EU, manufactured or sold in the EU, needs to have a digital twin, a Digital Product Passport, that allows the item to be traceable from cradle to grave. The manufacturing through the supply chain, through the point where a consumer buys it, through to recycling or reuse at end of life. Consumers have to have the ability to make an informed choice when they buy items. That legislation is in place. The first category rollout is batteries. The second category rollout is textiles, starting in 2027. That is a huge opportunity for us because retail apparel is our number one category that our inlay partners tag into. So the embedded tagging that I mentioned, the survivability through washing at end of life, and the consumer use case, I mentioned the Qualcomm statement about consumer reading and mobile phones. You put all of those pieces together, and you have a vision where there truly is a digital twin for every item. So we're focused very significantly on that digital product passport and the consumer use case that it opens up. Okay. So 2027, from your perspective, you start to see business materialize in 2025, 2026, or how should we think about it? We're already seeing major European retailers working on how they're going to meet DPP. Okay. For textile traceability, the Qualcomm statement was accompanied by a statement from us and a statement from Decathlon, one of the leading retailers who's been adopting RAIN RFID. The retailers are already thinking about and pushing for consumer readability. The actual reason to get that consumer readability and mobile phone statement out was because we needed to get RAIN approved as a data carrier for DPP. The shortcoming was there was no RAIN reading up to now in mobile phones. Thankfully, Qualcomm came out and made a statement that reading is coming in mobile phones- Mm. which I believe will open the door for RAIN to be an approved data carrier for DPP. And the retailers need it because they're already putting the tags on the items. You can just kind of see the whole picture. It's all laid out in front of us, now we need to execute. Got it. And I know this is a EU initiative, but it makes sense. Do you see other geos sort of, you know, potentially replicating or mirroring what the EU is doing? I sure hope so. ... with a delay? And if we have any say in it, where it's gonna happen. So we're gonna see what we can do here. Obviously, you know, this is a legislative thing and, you know, but in the U.S., individual states could potentially do something like this. Mm-hmm. But even items that are manufactured in the US and sold into the EU have to meet DPP. All right. So it's a big deal. All right. Maybe talk a little bit about Impinj Authenticity. You talked extensively about sort of the program's initiative back at Investor Day, but again, what is it for the audience, and how should we think about, you know, the trajectory going forward? So when we migrated to a more advanced process node for our endpoint IC, it gave us the capability to add additional features. One of those features we added in one of our newest chips is a cryptographic engine and a cryptographic key. So we can authenticate the IC and the item it's embedded in as being genuine. That chip, we released it last year, it's in the pilot phase now. We're seeing it being used in categories for tax tracking, or in tax-free zones, or traceability in tax-free zones, in over-the-counter healthcare, medical devices, and others. I see it personally as being a broad-based opportunity for us to authenticate items as genuine throughout the supply chain and in use. One of our large end customers in the EU made a statement that, without authenticity, there is no sustainability. They need to know that the items are genuine, including at end of life, so they know how to recycle it properly. So we are pushing pretty hard on that authenticity theme, but it's still early days, and we're still in the pilot phase. So I am optimistic for the future, but because it's a whole new way of thinking about authenticating items and a whole new way of using tags, you should expect a modest pace of adoption, not some hockey stick. Understood. Shifting gears a little bit, you recently settled with NXP. The outcome was extremely favorable. You recognized a $50 million license fee in Q2, and I believe this is expected to grow every year. Correct. Has the settlement impacted sort of industry dynamics at all? Because I think, you know, it, it's win-win for, for, for you guys and obviously for, for your customers as well. But curious if that's changed, or impacted overall industry dynamics, any share shifts, and I guess most importantly, we do get questions from investors, could an NXP design Impinj out? Any thoughts on that? In terms of industry dynamics, our end users were, for the most part, assuming there would be a settlement, and so, the lawsuit wasn't impacting their day-to-day operations. At least a first order, the settlement did not change the industry dynamics. In terms of share shift, we feel good about our share position in the market. We feel good about our share opportunity, but we won't know for certain where we stand from a share perspective until the RAIN Alliance publishes their data, which they do every year, typically in February or March, once they've collected it all. In terms of a design out, the IP that we sued on was implementation IP. We have given our necessary IP to the industry standards bodies when we developed the protocol, so it was implementation IP. In general, there are ways to design around implementation IP. It may be difficult, but for the most part, smart people can find a way, but it takes work. So the question is: Does NXP spend their time designing out our IP, or they decide that Impinj's got a lot of stuff, we're gonna leverage their IP? That's a decision they're gonna have to make, and I can't tell you which way they're gonna go, and you're gonna have to ask them which way they choose to go. It's not easy to design out our IP because we've got a lot of it. They may choose that route, or they may just choose to like I said, leverage it. Makes sense. Any competing technologies that we should be monitoring really closely? RAIN RFID, again, just listening to you, Chris, it... The value prop is there and seems really easy, but any vision-based or what have you, any competing technology that could potentially get in the way? I don't currently see any truly competing technologies. We have a zero-power radio that lasts for the entire life of an item, where you can read up to 30-foot range at 1,000 items per second for an incremental cost measured in pennies. We're already penetrated to roughly 44.5 billion units in one year, last year. Impinj made the announcement that we've shipped more than 100 billion ICs, and we're growing at a 29% unit volume CAGR. That's hard to catch up. I just don't see any technologies on the horizon that can even equal those capabilities, much less exceed them. There are a lot of adjacent technologies, and I consider vision as being a perfect adjacent technology because vision provides information about an item. That box is all torn up and damaged, whereas the tag doesn't. The tag just gives me the identity of box and potentially the identity of the contents. The combination of the vision system and a RAIN tag is very powerful because you know about the item as well as what the item is. In a similar way, for a loss prevention system in stores, I can tell you that an unsold item is leaving the store, but I can't tell you who's stealing it. The vision system can take a picture of somebody. So we think of vision as being truly complementary and other technologies as being truly complementary. And so we're working with other players in the space to leverage a fusion of technologies to drive value proposition, to drive value to end users. Got it. Okay, thank you for that. Maybe one for Cary on the long-term financial model. Mm-hmm. Your investor day was June of last year. It feels like ages ago, but it was only June of last year. You provided a long-term target range revenue of $500-$750 million, gross margin 55%-57%, EBITDA of $19 million at the low end, $25 million at the high end. I know you didn't necessarily provide a timeline at the time. Mm-hmm ... but do you have a better idea on when you might get there? That's number one. Number two, how have any of your assumptions evolved or changed since then, as you've thought about the key pieces that went into the model? Yeah. Well, we certainly didn't anticipate a market downturn- Right ... in the second half or in the months following, our announcement. But we, to that same end, we didn't assume linear growth. Sure. We assumed that our share and our volumes would grow at different rates, and we assumed the market growth could be at a different rate. Today, we feel like those targets are very much intact at this point. Okay, great. Maybe gross margin, puts and takes. You guided product gross margin to increase sequentially. What are the key drivers? I know you're going through a product transition, and medium to long term, what are some of the pluses and minuses that- Yeah. We should be thinking about? So think of product gross margin as our corporate gross margin, excluding the high margin license revenue. And today, our targeted level is 53%, and we're a little bit below that in the second quarter, we're at 51%. What's dragging the gross margin down in the near term is we're moving through some 200 millimeter inventory. So think of this inventory as two generations older than, or two generations behind the M800, which is just in the early stages of its ramp. This is on an older process node. It has a higher cost per die, and this was inventory that we were able to build during the supply-constrained environment. 200 became free before 300, so we bought that inventory. It was never an excess and obsolescence risk, as our products have incredible longevity, selling for more than a decade. But as we were looking at sockets then in front of the M800 launch, a socket that was qualified for the R6, which is our two hundred millimeter product, qualified for the M700, and now the M800. We felt like this was the right time to move that inventory. So we shifted our mix of M700 down in the second quarter, and two hundred millimeter R6 up in the second quarter to start moving that inventory. The drag on gross margin was most pronounced in the second quarter. It will be less so in the third quarter, which is why we signaled gross margin would increase on a sequential basis, and then it'll be mostly gone by the time we get to the fourth quarter. That will get us back into that 53% range, once we're through the two hundred millimeter, the elevated two hundred millimeter levels. Looking into the future, when the M800 ramps and becomes volume running, we expect to achieve three hundred basis points of gross margin accretion. We get 25% more die per wafer with the M800. Think of our wafer as approximately 80% of the endpoint IC BOM, so this is a significant cost improvement, and that will be the genesis to take us to the upper end of the gross margin in the long-term targets. Okay, that's really helpful. Maybe on Endpoint IC pricing expectations going forward? Prior to the pandemic, I believe it was mostly deflationary. Mm-hmm. During the pandemic, given higher input costs, primarily from your foundry partner, your pricing went up. Yep. Going forward, what are your thoughts on, I guess, both input pricing as well as your output? Yeah. So, wafer costs, we're not expecting another price increase. We're assuming costs to be flat in the sixty-five nanometer node for us, so that's staying relatively stable. Obviously, that could change at any point, but that's what our going-in assumption is for twenty twenty-five. As it comes to price negotiations with our inlay partners, I mean, certainly we consider a price discount for higher share in certain accounts and increased volumes, but overall, the ability for our partners to earn a price discount will be predicated upon their ability to move to the M800. The M800 is priced slightly below the M700. We're trying to drive adoption there, and that's how they'll be able to achieve a price discount. Okay. And Chris, when you're sort of having these discussions with your customers, do you sense there is price elasticity- Yes. -to demand? There is, okay. There is pretty steep price elasticity. Yeah, okay. Think of the food space, margins are pretty thin. Right. And so there's a very significant elasticity in that demand. Back years and years ago, the retailers came forward with a number. They said, "If you get to a $0.05 incremental label cost, we can tag all pallets and cases, all retail apparel items, and some other categories." And back then, in the early days, you know, tags cost $0.20-$0.25. This was around when, Chris, roughly? You know, in the 2006-2008 timeframe. When we got to that $0.05 point, adoption took off. The end users weren't making it up. They told us what we needed to hit, and when we hit it, it drove adoption, and they have subsequently said, it's not-- the information's not public, but they've set other bogeys out there for the industry. If you get to a certain price point, you can do this. If you get a certain price point, you can do that, and what I've come to realize is they're just telling the truth. They're not making it up, and if you look years ago at the METI announcement around food tagging in Japanese convenience stores, they set a bogey of about $0.015. It got down to the incremental cost of $0.015, made sense to tag all items in all convenience stores in Japan. That number was a proxy for all food items, and They threw away a lot of rice balls per day. Correct. They threw away a lot of food. It's the exact same use case. I would know, yeah. Yeah. So, and so you should think about the elasticity of demand as being very steep and the opportunity to open categories with prices being critically important to us. So we are very, very focused right now. Our industry is still sub-0.5% penetrated, less than 0.5%. The opportunity right now is to drive adoption, drive new categories, and gain share. Okay. So it's classic Moore's Law over time that drives- We're on an exponential 29% year- over- year for the past 15 years. That's a pretty steep exponential. Yep. Yep. Yeah, for sure. Maybe five minutes left. I'll pause here. Any questions from the audience? Good. Maybe on the foundry strategy, long-standing, very successful relationship with TSMC. They're very dominant. I don't think there are too many options. Maybe at sixty-five there are, but how do you think about your foundry strategy, your manufacturing setup going forward? Are you pleased? Are you looking at plan B? Any thoughts? We have a very good relationship with TSMC, a relationship at the working level, at the executive level, and, I think you should expect that strong relationship with TSMC to continue. They see this opportunity. They're invested in the opportunity like we are. Okay, investments versus returns. Just, again, listening to you, Chris, massive runway opportunity set ahead of you. How do you guys think about balancing investing in the business today versus margins, returns, cash flow, et cetera? Yeah. Our primary focus of investment is engineering, and we're going to continue investing in engineering, just given how massive the opportunity is. That being said, I don't think we can even grow engineering investment as fast as the rate of revenue growth. So even within our key investment area, I think there's leverage. And then, as we move down into sales and marketing, we leverage a very strong partner network to take all of our products to market, so the investment level isn't as significant as it is in engineering. So leverage in sales and marketing, and then, obviously, there's leverage in G&A. Okay. That's what's driving. We expected and we modeled leverage across all three spend categories in our long-term model. Okay. I guess I want to add one thing there. Yeah. It's sort of an ancillary answer to your question, but, you know, our industry has been built on enterprise adoption. That's what's driving the 29% unit volume CAGR. I believe the one thing that could change that CAGR would be consumer adoption. Now, consumer adoption is not tomorrow. We don't have readers in mobile phones. We don't have the use cases. We don't have the protection model or the threat model, all this kind of stuff built out. But I believe that if we can get to the point where people get the benefit of engaging with connected items in their homes, finding lost items, just... I mean, essentially, you could think of our products as AirTags with ten thousand times the footprint at zero cost. Get to the point where people can get the benefit from the connected items, that's huge. And so that is a focus of ours. Yeah. I can think of many personal upside cases there. Think about every item, basically, had a... I mean, it's like, literally- Yeah ... the AirTag with ten thousand times the footprint. Yeah. Great. Maybe in the last two minutes, Chris or Cary, anything that we didn't cover that you want to highlight before we let you go? Or I know we've been keeping you busy in meetings. Any common themes or anything that we, as a collective unit, missed about the Impinj story? I, I- Go ahead, Cary. I don't think anything's been missed, but one item I might highlight is the potential strength in general merchandise. I know we're in the early days of general merchandise, and I recognize that it got off to a slow start as we were, the customer and the ecosystem were learning how to tag things for the first time. How do we tag a board game? How do we tag a package of sticky notes wrapped in cellophane? Those learnings are happening, and they're coming behind us at this point, and that's encouraging, not only for the existing general merchandise ramp, but there's other players on the sideline that are waiting for the large retailer to do all this heavy lifting, to build that highway out, and then they can jump on the highway and go pretty fast, I believe. I believe they can go fast because they leverage the same supplier network, because they already have familiarity with RAIN, because their store employees are already experienced with tagging their apparel departments, so I think general merchandise is one of those unique verticals that can have a very fast follow-on. Okay, great. Thank you so much for joining us, and congrats on all the success. Thank you very much.