WATT - Earnings call transcript Q4 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day and welcome to the Energous Corporation Fourth Quarter and Full Year 2021 Financial Results. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Matt Sullivan, Investor Relations. Please go ahead.

Matt Sullivan

Thank you, Andrew 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 CEO call would I to ahead, the turn Energous. of to Johnston, Cesar. go Please Cesar Now,

Cesar Johnston

to Matt. Energous the XXXX and fourth afternoon Thanks, conference Good welcome call. quarter

Chief pleasure call Joining CEO. our is Today, Acting Mannina, earnings first Officer. my a me Bill as deliver Financial it’s today Energous’ to

We the and of for XXXX in be world are fulfilled deployed the applications. fourth volume distance orders successfully customer report quarter to commercially our first WattUp products very that we PowerBridge real charging can during potential first that proud

this accomplishment. We are excited for

As goal of achieve was before on XXXX. calls, the a we noted for that this end earlier top us to

strive today, you a As the in leader power have seen, Energous’ to be we networks. IoT evolved year. And focus last has in wireless

new IoT replacement power IoT significant capabilities unique and wires, a deliver systems cumbersome the and our at cables to for distance, power alleviating use to cause supporting to generation is devices. goal battery without allowing a battery-free Our customers deploy of and need

to received while technology produce distance that of intelligence of new power sustained support, higher levels placement also flexibility for Our instance, power artificial them processing generation giving advanced can aim capabilities. is devices, a delivering charging to IoT

up development several position recent IoT and and company huge, well conjunction in the wireless networks. to with Global the devices, The XXXX, it Sphere networks IoT supported Data by XXXX can applications certification by is be IoT and for the billion rise deployments. Worldwide wireless power multiple and IoT WPN their of power Forecast opportunity IDC Also, Our connected Device WattUp potential XX.X to achievements deployment technologies, devices Data IoT XXXX. reported with includes market as fast of in

the We RF focus on as have electronic our labels with technology. first targeted shelf and tags to

As a such, to WattUp partners with working we are devices infrastructure, market incorporate several and functional cloud demonstrate communications market-specific to end-to-end solution. software, vertical PowerBridges

capabilities. WattUp sensor RF integration and be ubiquitous that believe allowing future, these the tax first PowerBridge, than XX battery and and tag tracking this multiple to the in less our markets distances with is The bridges requiring application We be tags in meters. from of at greater deploy will power

Wiliot. to we We IoT quickly the have starter for partnered received a production and us tag RF Wiliot’s our PowerBridge, with leader, the like for fully energize commercial part deploy very deployment. are momentum are currently of the the orders first as These happy kit Wiliot shipping on that partnering their of WattUp And capitalizing with ready to company report product. Wiliot emerging PowerBridges to have allows PowerBridges WattUp pixels certified we

supporting In second units battery-less WattUp our January, in Consumer multiple simultaneously between ESL demonstrated communication application for a shelf PowerBridge to network communication BLE WiFi links. electronic is labels. the Las Show we connected The and Vegas, at Electronics exchange over the charging

potential in identifying Our our continue development ESL interest coming focus customer the months. to on while is

the third to $XXX,XXX year of a XXXX for of fourth fourth with and total As $XXX,XXX performance, quarter. to XXXX. revenue want financial part are our compared our $XX,XXX total of Bill more pleased for a we the of $XXX,XXX. XXXX breakdown results. total as quarter quarter line to to our is XXXX priority that report financial top that emphasize a year a full And were detailed provide rose growth for $XXX,XXX I in will Revenues of from a up

to time, operations and CMOS transfer the our devices. production the this execution make with testing partner, At ENXXXX transfer and continue Dialog our chain, ENXXXX, our Energous. and ENXXXX the fully ENXX the while ENXXXX, supply devices good progress devices continue We in production previous been have our completing from of on we facilities, ENXXXX ENXXXX and transitioning ENXXXX to enabling work of

continues for companies, to our through interruption securing prepare the this chain little next a capacity, support the date foundry had supply as and to we demand quarters. Although fabless time in we’ve to be allocation difficult testing customers’

production, technical with the to side, X watt thousands PowerBridge capability lines of of ramp-up including WattUp the manufacturing our On engineering the devices. of the delivered delivering team

transmitter or become off-the-shelf their positioned fully provider. that leveraging believe demonstrated X purchase their choice technologies. from have this wireless use report transmitters functional watt to first to power are We to PowerBridge solution customer-ready are add of our access of We a semiconductor be Energous as Also, our connected our and the IoT the they end-to-end in expertise network WattUp products and transmitters for X In PowerBridge WattUp IoT quarter quarters. and proud fourth WiFi the CES devices procure and points leading with to engineering world’s of delivered pending devices design can Juniper WattUp wireless PowerBridge devices, network and X-watt semiconductor in was wireless that watts. the missed orders order at multiple to to well Customers us. summary, expected forthcoming network, them provider a to we’re XXXX, own power devices received fulfilled part as positions line power we comprehensive allowing of first XXXX, to

our potential IoT future January of partner controlled tags who processors for Service X, forward like. technologies on ultra-low usefulness partnerships conjunction by solutions, devices, accelerate problems. deep technology, at XXXX, voice of look of processing a which glimpse critical of an summarize, the the with the software. show look developed continuing recognition in CES what intelligence at that the artificial newly Syntiant Syntiant the IoT by charging XXXX. have ESL IoT all To as real-world partnership managed the by computing power edge Importantly, in deep were deployments. world edge. This by form presented power software; the simultaneously partners’ was tags IoT The Wiliot Energous learning our announced agnostic of powering EPS and neural their Energous we using technologies, the has would learning architecture solutions received driven We is chips; decision Sensing deliver announced developing to IoT power to wireless BLE WattUp and from to network network a device device cloud using interoperability and RF

the Moving the nearly without quarter, WattUp for Union, up efforts the FCC that to allocation transmitted the greater see granted fourth in regulatory X-watt XX-watt their is Progress PowerBridge our in United product FCC that granted International States, were unlimited our an significant India States, we the confirmed Canada transfer. regulatory on WattUp charging. wireless for during be were the the are the we towards quarter, on doubled power we excited could Telecommunications fourth ITU, European power, than Union, X-watt efforts, also distance and our milestones high wirelessly. which power continues approval update at United achieved certification global transfer as XXX open distance wireless for we to PowerHub to Also, which for limitations. megahertz In

potential current the up and to of Our to more range watts X improve and watt, be to long-term our leader applications in providing that, our transmission we also networks. want and capability while performance make applications. watts share of PowerHub short-term vision WattUp in will XX our the and pursuit Overall, PowerBridge capabilities open the wireless on IoT X Energous In the future power of target goals. immediate continues progress to

at As of short-term the delivery are orders. part goals, of looking WattUp PowerBridge we X-watt the fulfilling

are at first deployment. and markets, applications RF pilot potential We are identifying our looking tag targeting we into

long-term on for end-to-end are transfer, goals, shelf standard. customer. efforts have completed and to And our electronic important to as is wireless it a system, AirFuel market us Alliance the WPT, power we We as launch make label support working far a identifying

recommendation the worldwide. to first wireless spectrum lead to IT as wireless power XXX megahertz We designated transfer power align spectrum our continue

power, in the transmitters and to without working on continue are X-watt PowerBridge work Union and distance European will than greater conducted network, high the meaning certifying We U.S. wireless power IoT limitations. power,

We ESL pilot will of vertical identify markets applications markets potential first or target and deployment.

customer important, our for IoT identifying third an system on deliver most we growth acting I year-over-year And market the by Bill expanding call Bill? work revenue over technology end-to-end will turn We now to will WPN demonstration. and vertical deployments. driven build Mannina, CFO. a will

Bill Mannina

Revenue last XXXX. to in fourth quarter $XX,XXX for everyone. $XXX,XXX $XXX,XXX and Hello, in was recognized Cesar. to third Recapping year. approximately Thanks, approximately compared in revenue the we in quarter XXXX, $XXX,XXX same quarter the approximately compared the

increase forecasting Cesar XXXX million approximately was as basis primarily we was and fiscal costs. higher year for third expense of XX% of primarily increase quarter, a mentioned, to to more expense of revenue XX.X%, weighted expense stock-based approximately in a $X.X $X.X XXXX, fourth net or million GAAP prior year. Net third fourth million XX% with for per would loss $XXX,XXX $X shares information. was million quarter shares due average the the $X the tool which used to The $X.X to Total our loss a the weighted executive combination our in when XX.X $X.X million share severance last average million chip for than XXXX, share the accrual to million mainly $XX.X basis compensation quarter results due $X loss fourth million, and per on XX.X million $X.X non-GAAP a loss in million loss provide less or investors year. higher Compared of $XX.X million on XXXX. weighted which million severance personnel development now GAAP the the compensation. in stock-based total R&D XX.X fiscal the million shares the million or review than $X.XX Total million a quarter of XXXX. quarter or – a to the XX% of average was on million, a was per XX quarter basis net adjusted, and For compared shares that on or the nonrecurring $XX for $X.XX million higher to This $X.X increase million $X.XX expense was was an was on $XX.X average on share share loss the $X.XX the increase fourth per loss in or due million for loss a shares million Net loss weighted in million in accrual and XX.X which of $X.X $XX.X share restructuring, as to than on are in we $XX I $X.XX growth. or the the year-over-year XXXX quarter. GAAP non-GAAP third like saw million of we $XX $XX.X believe decrease an $X in weighted compared results a on million to helpful a per average million than translated in

You information find available reporting today’s in website. non-GAAP release, can is on our press which also our now

to was head difference net higher XXXX. nonrecurring approximately net marketing slow an depreciation and increases R&D out $XXX,XXX of and million, of was $XXX,XXX in year compared approximately count, and year like operating costs, for insurance which chip non-GAAP that approximately compensation recruiting approximately was in was largely fiscal expense a XXXX $X.X to to total related our abnormally the Excluding and X.X% costs. $XX.X charges million COVID operating expense and to pandemic. for and the non-GAAP D&O to $XX.X related to approximately non-cash severance $XX expense The I approximately also would million approximately in million due stock-based XXXX, $XXX,XXX of or sales due development point of

in cost Our in spending and represented in R&D structure XXXX. of XX% non-GAAP our represented XXXX operations XX% and regulatory

the of year from million year-over-year of at to the XXXX, decreased approximately quarter, we fourth $X.X non-GAAP XXXX. to XX reported $X.X the expense QX XX the the million employees million end in $XXX,XXX non-GAAP in Compared expense fourth prior expense compared year. of non-GAAP to that quarter We the approximately ended by with $X.X $XXX,XXX quarter. of last increased For by quarter, from

the size target company’s ramp revenue, expenses OpEx spend. our as to slightly our reduce with very our we continue our manage to XXXX quarterly Given or flat tightly and we for remain

or million incurred weighted or share on is XX.X on Our million $X.XX XX.X net was loss non-GAAP approximately average net weighted higher per $X.X million loss in on or share XXXX. XXXX for $XX.X average $XX.X a shares million X% basis loss This non-GAAP shares. per the million $X.XX than

quarter, per per than per in XXXX. fourth loss than net For third the million lower $X was $X.X share quarter approximately the million higher the net $X.XX $X.X loss the $XXX,XXX our loss non-GAAP approximately quarter $XXX,XXX and million or share, in non-GAAP the fourth share or or $X.XX of or $X.XX X.X%

XXXX, Additionally, offering. costs and net of XX/XX/XXXX. This $XX.X at issuance of cash our of we during our million quarter of with debt-free the capital raised We the $XX commissions remain working at-the-market end fourth of $XX.X helped cash balance as to in million million, with fiscal XXXX. increase approximately

call back now me the Cesar. Let turn to

Cesar Johnston

delivered, us was Energous as investors opening their be you, the and a strong first shareholders to in This the leader market thank RF power. through an for WPN IoT for important tag up IoT was with Thank our Bill. continues to product partnerships of Wiliot. quarter our WPN development at-a-distance would support. We charging our like

We to grow the would the participate good a in report. IDC’s now At future for of to questions. are we our by market open XX.X time, Operator? as in billion call and to market described deployment this device position like business the revenue

Operator

from [Operator Instructions] Jon Thalmann. with question ahead. comes The first Please go Ladenburg Hickman

Jon Hickman

out Hi, from recognize delivered, this that you received order were in – you and to of able you the order? can that revenue QX first

Bill Mannina

we Yes, were.

Jon Hickman

Okay.

manufacturing accounting is P&L explain And that, happening? the of so goods you no are sold Like that’s your there can costs? for you in How statement. how cost

Bill Mannina

were units initial developed our Well, in-house.

are transitioning XXXX. to in COGS we So reporting

So were still units. we initial right those now, building

in are QX. R&D those for So

Jon Hickman

The cost in of those are R&D.

XXX% you forward? any can anything Like then for going year-over-year Okay. more us or be or a revenue do your help you can And with specific model expect that with growth? you XX%

Bill Mannina

out may the guidance to at that’s provide message today. ‘XX, but No, this more sending time. be not We able during we’re

Jon Hickman

you to guidance? be able more might When provide

Bill Mannina

Possibly in XXXX.

Jon Hickman

We’re in XXXX.

Bill Mannina

mean in I XXXX. later

Jon Hickman

Okay.

Okay, so let me ask another question.

expect the this do you Your that to through year? current take you cash balance, rest of

Bill Mannina

it Well, years’ – our that’s X look found that. worth have for financing, so of further advantageous operating Yes, current levels, do we could cash. we at if

as have file We on another well. shelf

Jon Hickman

operating? anticipate, basically, of the got X but do same, years mean stay you’ve things So, I you if

Bill Mannina

Correct. Yes.

Jon Hickman

with that’s And revenues, right? no

Cesar Johnston

we We do like have it some report But level of no revenue. have revenues.

Jon Hickman

No, I I for minimal. me. you. that’s but mean, Thank it okay, mean,

Cesar Johnston

Okay. Thanks a lot.

Bill Mannina

Thank you.

Operator

remarks. over to like Johnston, any This to turn conference the session. concludes CEO, question-and-answer would our for I Cesar back closing

Cesar Johnston

IoT we looking forward We are wireless well network, are to positioned. develop new power a

into applications. looked those have We

have asked, and of partnerships as reported, indications on as have are shipped have We be revenues mature, we reporting semiconductors. will do new John of and that modules we being as we form markets and products we in And growth. the the

very you thank much. So

Operator

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

disconnect. You may now

Energous (WATT) 25 Feb 222021 Q4 Earnings call transcript