PI at Baird - 11/9/23
Fireside chat format with CFO. Pretty good discussion.
-
The general merch. rollout has been slower than expected. Thousands of suppliers are tagging items for the first time, this is a major undertaking. The compliance date is February 2024, he thinks some smaller suppliers may not make that date, but it has not been moved (yet).
-
UPS is on track, he expects the ramp to continue into 2024 and maybe into 2025. He defined the tag opportunity as “multiples” of a normal large deployment in the 1B-2B/yr. range.
-
All M700s and M800s have protective mode native. The M800 inlays are in the certification process, anticipate Q1 for availability.
-
Today’s GM target is 53%, they get to that when volumes normalize. The longer term target is 56-58%, driven by the M800. Services like authentication offer an opportunity to go even further.
-
European retailer deploying self checkout is rolling out Phase3 and is bidding Phase4, which they feel confident with their position to win. This is the first customer to deploy what they call a “high end” loss prevention solution. There is a lot of activity in the pipeline for loss prevention. Shrink is a hot button topic. Their pipeline activity reflects it. Loss prevention activity is at the evaluation stage, pilots and testing.
Cooters