Shares of Impinj (NASDAQ:PI), a leading provider of RAIN RFID solutions, plummeted 22.15% in the after-hours trading session on Wednesday, following the company's fourth-quarter 2024 earnings report. Despite reporting a 29.65% year-over-year increase in sales to $91.60 million, Impinj's revenue missed analysts' expectations of $92.95 million, triggering the steep sell-off.

While Impinj's adjusted earnings per share of $0.48 met Wall Street's consensus estimate, the revenue shortfall raised concerns among investors. The company's guidance for the first quarter of 2025 also fell short of analysts' projections, further exacerbating the negative sentiment surrounding the stock.

Analysts and market watchers attributed the revenue miss and gloomy guidance to potential headwinds in Impinj's core markets, coupled with supply chain challenges and macroeconomic uncertainties. Despite the company's efforts to diversify its offerings and expand into new verticals, the market appears to be exercising caution until Impinj demonstrates its ability to consistently meet or exceed revenue expectations.