WATT - Earnings call transcript Q1 2021

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Operator

Good day and welcome to the Energous Corporation First Quarter 2021 Financial Results Conference Call. [Operator Instructions] Please note this event is being recorded. I would like to now turn the conference over to Mike Bishop if with Investor Relations. Please go ahead.

Mike Bishop

Thank you, Chuck, and welcome everyone.

would company remind will I today's that begin, the call, make we like participants to during Before forward-looking statements. in to uncertainties whether session, the Securities the statements, prepared Commission. during with or These Exchange the company's are filings subject are inherent that and and risks detailed in remarks Q&A reflect by with Securities contained Energous release to to forward-looking statements disclaims or as conditions updates obligation or Except and revisions expectations Federal otherwise any or changes elsewhere those events, to herein required regard publicly Laws, in undertaking to circumstances. the during please note SEC call, Also, discussing be non-GAAP G. measures that by this defined Energous will as financial Regulation company's to are of non-GAAP press is today's Reconciliations directly the comparable which the included financial website. in GAAP measures measures release, these on most posted

like over CFO call would I to Brian. the turn Energous. of to Sereda, ahead, Go Brian Now

Brian Sereda

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our approvals pace charging Something than are that to techs based we proprietary believe various at our regulatory Backed seeing secure forming first by ability coil evolve faster generation we expectations. distance non-beam earlier charging technologies. using not is a early older opportunities possible with technology,

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Our strategy partners solutions. bringing where can together more a our providing ecosystem technology, and of involves power an complete of transmitter distance range enable

where European of of Energous one is yesterday wireless example effort leading power announcement Our expand is the of to approval worldwide the transfer. regulatory just reach

be charging technologies. number first older applications by wireless medical industrial We with of partners are needing generation increase seeing in and potential the that an can't functionality supported

the in engagements opportunities. areas, To believe technology especially evolution devices, have charging where capabilities option, markets their is high longer logistics, ideal. and into an and is testament this our continued in establishing we bring of innovation, expected expect customers date other recent Powerhub summarize most future could to of COO of We to the future higher you is progress, our either who leader wireless the call and our these distance made base power progress is Cesar, our as over potentially applications generation, the technology on will to and the I'd now into regulatory respective and or a prominence Our at introduction what expand continue charging range of the with prospects is customer to opportunity not as and Energous lead to emerging up we volume that in meaningful volume commercial is opportunities, us turn next becoming our scale contact pulling with technology evident our the to not to opportunities Cesar? such solutions. and medical are like

Cesar Johnston

while thank our frequency work new power to the industry technologies, And in Energous you I really driven most accelerated meeting develop international rules. rules. meet want existence, novel regulatory by or development, safety afternoon, Energous everyone. Yes, be operating that developing good the the products and in transmission, to regulatory and important leader radio within latter. product wireless emphasize continues standards, approaches

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many that have accomplished people major impossible. a was We thought achievement

Our efforts and our develop regulations. to on RF safety we the continue will technologies meet as regulatory front

is the distance consideration Our current under ITU, rulemaking new instance, for include FCC proposed the worldwide in allow higher and for and regulations. Part XX wireless power where BWF efforts to under ETSI, transmission a power contributions

now RF need wireless as dedicated efforts multiple are a for positive rules. Our power transmission showing recognized the countries have impact

XXX Now, charging transmission or presented three portfolio Powerhub to distance. Wattup quarter, patents for in on the Last one we meter in now work allowed technology patent desktop side, up space includes creating with our QX. a patents environment

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the and have and more Our capabilities the front. are the technical to to they into customers certifications potential informing power of regulatory will their many Brian. first transmission updating roadmap as to so now our to we is regulatory made to cover roadmaps. begin turn progress we In progress the level advances and And be countries over product push it call on achieved. and these I And quarter, may add now that continues. introducing technology will we

Brian Sereda

financial And review once remind XXXX. of a issued quarter Cesar. to today announcing now that go like our customary financials. press at everybody Thanks the release we'll we first of close I'd our for again through market results our of

same the in to mentioned was in in I quarter first and As the revenue $XX,XXX $XX,XXX earlier, of last quarter prior $XXX,XXX the quarter, compared year.

that evolving As mid the the partnerships back we be our for on We solutions anticipate Powerhub seeing in and are regulatory regulatory will quarters. we've longer strong technology progress. of and plus technology and charging demand progress discussed, additional range distance sharing we coming

average the spending research our half the share compensation average weighted The costs QX. spending net and QX financings GAAP XX.X in million. million, net $X.X in is $X.X or On in compares total $X.X a first equity due basis count shares GAAP end same total per last $X.XX last to on share stock year. the XX loss on loss tied approximately fiscal headcount than QX to or completed quarter. due million, loss share was GAAP Over raising of flat market to million expense quarter, and seasonal in outstanding. prior loss primarily program to year-over-year essentially the the was approximately year, share to the our the employee in first increased shares This to $X.XX quarter, an on million spending year of quarter refresh $X.X fourth prior quarter of million $X.X associated development or per outstanding. ATM for of is million XX.X and total $XX two was side the at Net increase at or million higher $X.XX loss approximately weighted a Total loss primarily with last per approximately

$XX.X over up the engineering million quarter $X.X prior $X.X costs. approximately approximately by prior to and expenses in debt remain non-GAAP with the revenue the last GAAP operating increased to and million we compensation million, numbers non-GAAP non-GAAP last to previously. non-GAAP and provides quarter approximately we and for trend And SG&A from million approximately year. tape to last same for or of expenses of with stock view quarter year. cycles. approximately expect QX than increased expense additional expense to We our quarter, higher million line a a all increasing fluctuations by the approximately net period GAAP operating Let million comparison per our for public development $XXX,XXX the operating expenses total loss $XXX,XXX the Net and quarterly $X.XX current areas EBITDA now We range as year, as costs higher that, of were from prior adjusted due $X.X with in now or to total share. information, and million company stage $X.X some $X.X million last I'd tied higher or useful expense approximately we'll ended headcount GAAP our to flat totaled full give than total non-GAAP year the quarter of To is expect for the a saw QX non-GAAP expectations. quarter Compared increase me spending year, see the at to our of you chip $X.X million investors used approximately company same with take and cash over approximately XX% the Non-GAAP $X.X operating SG&A the to to costs year. was Non-GAAP we by approximately and quarter minor flat With to back increased communicated free. turn prior our quarter increases in excluding adjusted This same first when across last in essentially and like $XXX,XXX. EBITDA compared depreciation $X.X close, believe cash it $X.X for the questions. the operator a QX of of non-GAAP million,

Operator

with ROTH Capital. will [Operator question Instructions] come the from Suji And Desilva first

Suji Desilva

Congrats Cesar, past, Cesar. European what Neeraj, approval, available here. if were could not Brian, to the be maybe opportunities on we helpful. that's progress the going about that you The open talk for Hi, that'll in up

Cesar Johnston

can to what one in X.X Powerhub. with meter power, as And technically, been to by were there's distance to this Powerhub is the we basically the Yes, opposed time a up past to accomplish we've no on limited our our distance. limits to where we able get limitation, the pushing certified go watts

So now important. have. distance can you markets multiple pretty must charging of where diverse And is a think much is

Suji Desilva

initial Any could me. the highlight specific as Okay. applications, you -- that Cesar excuse

Cesar Johnston

Some sensors, in such of level video bit high and actually of also partner, little potentially areas, previous where show potentially of the labels the Ink devices E or a retail use is electronic that actually in number on. labels, webinar and deploy retails we applications use for our a that can of our with so labels we

can video you potentially allow applications you So there into and surveillance plenty to on. go closer get to of for applications want some transmitter, also And if that so are and the there. specific audio

those some of are So the ones.

Neeraj Sahejpal

I this Neeraj. Yes, add, Suji, may is if

the sensors very retail of verticals various Similarly, I industrial. Number at right. And I the very do which in us. primarily And think distance, And Retail RFID require of that. And this similar is longer and for for you those replaced. into that's really has then location a of to in requires one achievement with approval devices, the interest difficult now we also can lot batteries application. are think there see are market a we great looking especially. Europe, to application. they're kind charging, which be a tags are of lot to can control

Suji Desilva

Okay, to the switching Powerhub. topics

You've opened that enabled kit seems the do of opportunities. that the to has of you of the pipeline here? talked adoption about kind what and about some dev have how dev some to might accelerate up customers Can kit kind talk specifically and

Brian Sereda

-- think I Yes, the

Neeraj Sahejpal

Go sorry. ahead, Brian,

Brian Sereda

you Neeraj, go take to if it, want No, ahead.

Neeraj Sahejpal

Yes, okay.

is the dev very, think important. very I kit

we their they actually, technology of this how what think transmitter. then technology dev receiver with devices, can they what see get, now And what especially the about talked amount the front applications. to see include we those And kit, where they customers the can integrate in of of flexibility webinar, go on do. they can power Powerhub allows side, you get into our the about seen our anywhere can can it in have what kind you can kind If can of imagination the

Cesar Johnston

point And PA, semiconductor actually when the non-beam mean, only not I receivers. are one I to we the receivers, opportunity it using devices of to also up say, which you multiple think, here, have unique our let's from And art is view, single in opens transmitter use on of which and to actually a technical state one have simultaneous say case when distance. a have. typically multiple I what have is receivers, the That's given we that forming

Suji Desilva

good. launch Right, those it. we take the customers 'XX. in customers or the of perhaps of talked Can at top-tier the you'd Brian, said expect you time, Thanks. And on having perhaps maybe Brian COVID the half you tier who second update question And four four those half Late to earlier the great. if be anyone first customers that'd to impacted, And is then expected, top pipeline. in us of be last where stand? what wants you 'XX you the for about in

Cesar Johnston

distance we in thanks in there table do technology with introduce didn't are -- the to our customers distance various expect in customers solutions the Neeraj, interested top-tier interest, anything are turn our them, Neeraj, that what applications. scale than are pipeline, in necessarily acceleration as we regulatory early call will and half, that in to contact But are always earlier in to think 'XX for Well, 'XX power of pipeline. distance front, that the timing and the opportunities coming various been see want at do you customer now are to we and that? definitely Does this? a I we commercial has to the take the in we expected, we the in first scale, seeing of expect notable breakthroughs the later our distance want there commercial to until consider to I Cesar are impressed by to you the top-tier estimating would first and and see at into Cesar, customer do products. add customers in the, we challenge distance these answer when think

Neeraj Sahejpal

the fact think we right been that and has distance can I the very viable as So with and technology, great Powerhub, the distance that product. a for a a us differentiator provide

opening want interested Powerhub lot a in doors their that's implement see lot into And technology us applications. and think how they a in I they more the more customers general. for to can in larger

Cesar Johnston

leaders. Yes, I pushing said and this the earlier, mean, I we're as technology with

ones advantage mile and an here. closer the we're moving even we are gets on. power, opening that up so We us And to and closer have roadmap; higher that that

Operator

next question with Hickman come The Jon Ladenburg Thalmann. will from

Jon Hickman

Hey, just a couple of questions.

by First mean you can you of all, harvesting? active define what

Cesar Johnston

Yes, definitely.

there's concepts, two So, passive there the active And there's the of harvesting. harvesting. of concept are concept

passive the you basically So by RF -- when much gather the concept to the transmission able power following let's to power whoever do be you environment controls use with are start which is first the system. energy, that, harvesting. you in There's as as that getting and

So as given far as whatever in you receivers, place. just a deploying your get get you

And limitations. quality and guarantee transmission has where and you system. a it applications to you is data, since cannot of timely passive on rely that response So have in

that that are across deployment safe people, a and to required to that So to what that that explain these enough regulatory, sensitive is to provide in you are is so Fi, your Does you're looking transmitters real of other transmitters. in be pass can for receivers the deployment Wi of need reliable can transmitters, providing receiver that deploy system sense. have really those And information for. actually order In words, power question? are to similarly

Jon Hickman

Yes, me maybe help here. you can out

you Are medical about you example an -- medical give my your one that'll devices medical monitor yes. areas. don't I a -- You wearables talking of like talked whatever? Or you watch key me an wearable? And being you about mentioned of can give us like being example? Could

Neeraj Sahejpal

function is basis. be part, purpose be any to can can on and monitor bodily continuous it device, right. of other It body the And Yes, on or the right? that any a of them kind measure variable the wrist

many which applications, that I follow are with -- think there

Jon Hickman

So information? send that that device where would

Neeraj Sahejpal

connected are BLE, typically devices these mean, through right. I

Cesar Johnston

So single star typically, or much the an have single use architecture you what be star Wi can is architecture you Fi. have a on architecture; star that what infrastructure is today double you pretty

case you in So that's to and need and star put receivers, have transmitters single an of just in across receivers. have a receivers to is where access channel you you send a to now point, And single communication have through those BLE. the is transmitter, power, you that insert transmitter to power the the those function

effectively you're now is through future, the, or market you other are information. complementing as And what system, doing provide So sensitive providing let's and say, this together power in by Wi Fi the the with communication to active the come transmitter, it providing that connectivity. our the system, grows, the for you're will

Jon Hickman

Brian, Out related? the quarter any revenues this question you. Okay, a was chip of for just a of

Brian Sereda

we revenues. break reference don't we but down services, customers. combination shipping our It's a got things are our yet, of engineering We our don't revenues, kits, chips, Jon. down various break doing all for We've the it we're

Jon Hickman

chips. You are shipping

Brian Sereda

Yes.

Operator

this Please At would back sir. I Brian to for closing remarks. time, over in point conference turn the go ahead, Sereda any like to

Brian Sereda

move in on June ongoing In Micro customer XX, ROTH we in forward as Conference engagements distance XXnd. thank in on closing, their terms the and Virtual Yes, our of for X LD partner investors thanks We'd Chuck. a we're participating charging. support like to and June and field Virtual and near Conference the

hit to of year. regulatory expect charging and of to also concludes Thanks progress our partnerships and this along commercial products with our the again throughout balance this market additional announce customer we Moreover, year soon, later announced distance year-over-year previously this our revenue the first year. at fiscal call. the expect growth example and We

Operator

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

may You now disconnect.

Energous (WATT) 13 May 212021 Q1 Earnings call transcript