WATT - Earnings call transcript Q1 2022

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Operator

Good day and welcome to the Energous First Quarter 2022 Financial Results Conference Call. [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 first afternoon Thanks, conference Good welcome call. quarter

Acting Joining Mannina, afternoon Officer. our Bill Financial me is Chief this

of came first which As afternoon, And represents our XXXX the technology. same you increase first pleased unrealized revenue saw a potential, QX, product. our we quarter shipping on release speeding XX% quarter in This power up over we wireless that out are devices. crucial approximately expanding we in significant growing highlights XXXX. unlocking reported IoT networks the this of is deployment is to Energous $XXX,XXX time for to in that history, that interest for vision measurable press very company's the The the of report are quantities wireless the power and

the over for sensors, them freedom change of also for wires the technology while batteries. to not of large distances, enable without devices charge but constraints or we IoT tractors enable the placements charging to at assigned mobility Our wireless flexibility devices other IoT is air wired in need and fixed motion, and to as only

early retail, medical, adoption there would market future powering electronic these in labels. of wirelessly and that areas that deployments home RF smart solid wireless customer lead are shelf industrial, We in We smart is and office tags believe power finding particularly to interest in environments. IoT

We business to Energous. In also term we earnings potential believe our would goals near call, tremendous previous an XXXX mentioned which hold we update three on like markets this QX give today. for target

was first the XW to WattUp orders. of fulfill PowerBridge The delivery commercial

first As noted goal, on XXXX. WattUp was our QX last delivered of our in PowerBridge shipment

We QX XXXX are are despite supply that happy our several units increasing an of software and type with WattUp transmitters in and semiconductor transmitters. XW used to and in we are being customers today deployments. challenges, Energous chain number continuing These technology PowerBridge by report fulfill of demonstration built trials end

value conjunction the are XX aim demand to to meters. these PowerBridge visibility cost And for solution Wiliot revenue. Our of to wireless first-hand in receiving get order customers expect is from pixel can IoT of to generate tags distances volume as significantly than trials. wirelessly be And going our pixels with now forward, Wiliot’s we our WattUp we reduce power able PowerBridge energized at see our early larger as power volumes, from IoT network feedback positive greater partner low our

production This The Wireless application application devices. second who RF-tag markets and [Indiscernible] IoT PowerBridge need evaluating related our multiple discussed interest as is identify to identified the are been to Solutions. power from application potential initial has last our have companies attracted wirelessly we asset a targeting tracking we've near quarter Network WattUp that it term was goal first addressable deployment. we pilot One

on will initiative report We further as our collaboration this progresses.

for a on cables shelf ESLs. to battery electronic for third Powering and reliance market Our goal cumbersome identify to is or stated ESL due the is a near challenge replacement. customer major term industry labels, launch

engaged for ESL with system network power wireless device a are leader. developing productively actively a deployments, global we are We ESL and

and our board in Energous advisors focus, of highly to advisors. vision These for IoT. the Now experienced past the announced support new industry the are of we recently to appointments recognized along their overall well future business new accomplishments their with IoT for

We have Mark and our forward as and Bob Tyndall them Piovaccari working they to team to Alessandro as are excited of contribute efforts. Friday, our with to look part we

have IoT in company XW like the October has first charging is can the the in I regulatory considerable of in distance. products the to significant effort PowerBridge on for XXXX. We approval U.S. we now a markets. at wireless our from recently to certifications our progress that update spent geographic would restriction paying ensure made regulatory WattUp It certification major you sell free

received in networks. April, new regulatory in charging highlighting month sequential the month six Union, Canada, last leadership India, RF have certifications recently which position power European wireless China certifications, in worldwide of most wireless certifications We a our timespan for for represents and

grow XX and noted nearly to to As Sphere billion have is XXXX entitled from XXXX Forecast we Data to IoT continues today Data in to the billion the and XXXX”. devices the expected ecosystem expand Device IDC IoT according in to XX rapidly, Global report past, “Worldwide by

Beyond distance. past the than six measure conducted at delivery for to successful the U.S. regulatory power in movement approvals are XWatt excited see greater unlimited months, received we the over the

We devices the the to health IoT markets achievements of combined database, the industrial, infrastructure power deployed. evolved first less a early as future solidifies wireless FCC collaboration of into distance we Our rapid than now progress other the growth with limited draft as KDB becoming with of emerging in the world worldwide for with allows combination one provide or long regulatory and for the are transmission. term and smart meter perfect Part has This a recognized connected generation office efforts rise days next technology and when the these networks opened of Part mirrors a path or power markets. smart home believe XX knowledge a that that the and FCC, solution XX retail, since available

device device Energous from the the operational the ENXXXX, have supply the our of side, ENXXXX ENXXXX chain Dialog transfer to partner previous chain. on working continue completed and On we we the ENXXXX, semiconductor, supply transfer of of the

impacts in have when manufacturing, the work operations source firm same since foundry was when seen one is from our fabricated firm been to partner used is back moved to no and our We day we continue that original designs, our using with to the Dialog. same indeed we partner. as This we major have own and that we

business Now deployment Energous working of that power the partnerships foundry, for in in as back have with under playing past. the supply an we we're wireless see the the done Energous networks. is management, business on IoT we role directly On partnerships, important this this it chain

relationships that develop vision to continue complement We business to reach. with partners our expand our

announced in and emerging RFID we noted which As as in the wireless of RF power last our was the we partnership continued our be kits, Las their training call, will next starter Vegas, session groundbreaking pixels. tag their January on engaged Journal part where week at leader of partnership, less with we maker and in Live will as event. in training Wiliot includes WattUp supporting IoT Wiliot Wiliot, source participating in an be battery a our PowerBridge, are XW

levels WattUp meters. to excited than strong to offering IoT up visibility PowerBridge the of XXX% device guarantee interest We power solution our provides XX see Wireless as with this at power network are in greater

data air Syntiant low to wirelessly power partner the will data a XW Atmosic devices, performance generation, BLE decision with low with intelligence is establishing devices receivers, sensor the at the in Data a XXXX addition which be announced we new high IoT new an powered PowerBridge transfer whose partnerships of available after receivers become IoT powered evaluation capabilities infrastructure further PowerBridge, WattUp low leader neural edge quarter, for includes expected transmit Atmosic’s Cloud the in ATM for over next which emerging data sensor consuming for connection in wireless QX charge this QX an Also processing. power, three with BLE network with Atmosic, is PowerBridge processors yet Management processing artificial capabilities. into announced represents network while During kit, a to XXXX. sensor a our

a provider cloud become latency retail, and industrial, and adds connectivity certain PowerBridge in WattUp devices will IoT smart technology, wireless process and of Energous home applications the power generation sound and areas. a in partnership By Syntiant’s to new which technical processing response. is network devices power the delivering environments. improve Our aim required regulatory summary, deployed be multiple control in processing IoT can intelligence to Energous devices using underway, networks in In showing and and for its critical office react IoT solid data progress is by of artificial that and upload execution

is our customers also solutions. now reached a have of products semiconductor are devices place. our production PowerBridge up WattUp that ramp of evaluating The potential Our in end number

as expect interest we new that product, as we as we, demand fluctuate ramp and any up plan will and We with accordingly. may

term outlined goals we Finally, last we as reiterate our quarter. long

support markets power market power, were the without align for transmitters vertical designated wireless is goals to the IoT for conducted high and spectrum the wireless vertical demonstration. PowerBridge’s target pilot XW market make XXX Alliance wireless power Our of standard, the that power efforts first Certified megahertz to spectrum recommendation lead power ITU transmission as transmission worldwide. AirFuel high Fourth, identify build third technology EU identify ESL and limitations. first, system Also than applications deployments. customer distance potential end-to-end in and U.S. greater

IoT WPN deployments. driven growth revenue year-over-year deliver expanding Finally, by

make to on We long progress. tasks continue and are these focused term

update audience Mannina, important Bill? these call our as the I CFO. acting will the to targets. will We turn Bill on made now are accomplishments

Bill Mannina

Thanks, Cesar.

the our remind fiscal first issued Before we March release XX. begin, today at ended results market of quarter I'd financial like again we our a announcing that of for everyone XXXX to press close

Revenue of pleased delivered that XXXX we fourth in in $XXX,XXX quarter, XXXX. report compares a we the this XXXX mentioned orders the we And over XXXX. first in our we Sequentially, transmitters quarter fulfilled PowerBridge. release, quarter. reported QX first in the we're the WattUp XX% XW to very $XXX,XXX was in of additional WattUp shipment PowerBridge increase in the first to $XXX,XXX As QX

we quarter-over-quarter revenue do discussed, As we sales. fluctuations up ramp as anticipate

revenue We Cost our in of product did revenue reported last in in we the As of not report cost quarter related of revenue year. prior in QX, product a revenue for QX the our QX. result $XXX,XXX or was of cost sales.

achieve our generate expect be larger we we our our be aim able of for forward, products. order revenue demand And to volume to volumes. reduce is Going once to significantly cost to

$X.XX was weighted on XX.X decreased for weighted $X.XX approximately decrease net $X.X $X.XX and stock share $X.X loss loss loss quarter, total for a year, Management in QX. Year-over-year while total share continues quarter to last to the in share in loss increase The by of first which shares which million year-over-year completed primarily last for compensation in outstanding. loss to million. in on shares or quarter, million XX.X last approximately same prior average spending million due million due This a expense fiscal to approximately XX QX million weighted $X.X compared prior basis by is per year per to X.X $X.X supporting million Research accounted primarily to down targeted business of or $X.X compares quarter, million growth. $X.X of on stock the QX GAAP the outstanding spending the net $XX compared to financing, an still GAAP XX% or and on year, in our QX $X.X For million average million market Net loss million or savings is outstanding. share Development of a expense. and a at expenses evaluate per ATM cost the count to the raised shares opportunities, in decrease million based-compensation. due cost quarter GAAP a average total decreased

numbers non-GAAP our give of now a you first Let for me view quarter. the

useful non-GAAP we As our especially company information. comparison information a with provides GAAP when stage used investors, for believe a at for

even from than million non-GAAP expense in approximately Excluding same total and year. compared of of total and the GAAP prior costs $X.X and our expenses quarter QX expenses and million million, compensation costs expenses $X.X $X.X million, last X.X to and million $X.X X.X quarter stock million the expense approximately non-GAAP of the less totaled costs net approximately depreciation

same reporting quarter was loss or flat loss prior for last We $X.X an million, QX essentially saw This million with share. of million and we the quarter Non-GAAP costs. with expenses QX quarter and costs free. million $X.X approximately areas decrease over to to all ended $X.X approximately $X.XX GAAP expect year. to line development the non-GAAP $X.X the across Our by expectations. normal by XXX,XXX. compared To trend company year We the minor public QX per fluctuations $X.X approximately the fluctuations. expenses compared is prior approximately prior the million. to year, year. $X.X quarterly Non-GAAP period our increase to remain million Compared and cash increased debt by prior expense the non-GAAP SG&A research range $XX.X we to decreased in last of cash net from and close, due our the quarter increased million an the And to of SG&A had in year-end primarily with full approximately operating our for in non-GAAP current same

forecast year-over-year to will the to continue Caesar. back We growth. now call revenue I return

Cesar Johnston

Thank would megahertz. due believe We in XXX and a vision thank wireless shareholders WattUp is success the IoT technology, for would standard growing to and to you, our power and capabilities our market. business like innovation for poised at development support make goal like who the Energous our areas. regulatory support. partners over to Bill. air share wireless We charging is Energous to thank also their for the strong stakeholders our worldwide We charging wireless

potential a batteries. IoT At have our charging towards removing we the made to this amount networks. powered for of and full through open unleash to of work We questions. goals call would tremendous wireless support time, WattUp the IoT as we Operator? for progress cables your Thank by like you in wireless

Operator

Please The question ROTH go Suji with Capital. comes [Operator first Instructions] Desilva from ahead.

Suji Desilva

Hi hi WattUp Bill, shipments on continuing the PowerBridge. the this great Caesar, of congratulations --

are of many trial that this the let there helping how like if just it initially the correct? there, other the So read I if is I Wiliot heard wonder that shipping are I Are between are products? me also already. it seems lines partners there ask kind shipments are seed through partners market

Cesar Johnston

detail time. customer Suji, we’re the giving this not

Suji Desilva

Maybe market seeing Okay and that's end you're where to initial watch then traction you shipping the into could PowerBridges perhaps those talk markets enough. are fair about understand initial verticals. that

Cesar Johnston

Sure.

previously are focused discussed, have applications. on particular we we As two

One shelf labels. of electronic tags is application them is and RF the second

markets pretty Wiliot warehouse with the their RF pixels, And that today, call IoT be of tag On right tracking. one deals asset couple we now, lot I interesting different their across interest to at by the the being and retail, mentioned interesting applications the being of have there's actually components written such markets merchandise in And with and in smart retail, to able fast. being the consumed into hours to that have in actually find that and much hear, on well are they interested of especially front. as in can where able front side store, the also of looking buyers, a situations, are to is applications with actually track what in bring and this them the a it's actually the as merchandise, offices, those over to from merchandise communicated technology, are that industrial emergency home medical equipment, to smart conjunction manner is devices, timely type pretty with highlighted, can it's to able quite find some that sometimes a where of a see, components as of And you There of especially as deploy on where, seem kind you find customers premises. in couple that find quite we in and warehouse in equipment. takes

two. are those So

a as potential seen examples, tracking business I where asset two think, now. we've So right

Suji Desilva

that's then ahead, great. And just sorry. Okay, go

Cesar Johnston

complement the add be question, to there prices where the those store of potential cases the can RF RF the actually or as going status have pricing front things retail, stores were or you that let's what warning inventories and warehouse, to your RF tax usage the also on ESL, tags On an we've premises can verbatim certain say, ESL indicating that. tags to coupon or things ESL applications in just and move merchandise of the two actually or in of are people where tags, low, in and complimentary like to people very updating I said seen because basically

Okay.

Suji Desilva

base end well these as pilots good sounds that for opportunity gateway are yes, of shipping taking you ends is for the really like it are as these the some pilots receive, both guys. transmit Great, both you kind areas device Cesar products? In

Cesar Johnston

of technology of vertically extremely case a devices in It's say, the Wiliot both view. a are low, integrated And evaluation those point let's combination from tags. of

Okay, extremely dedicated so optimized and asset as cheap be tags to tracking, RF they're other applications. as retail to and well

could potentially displays, labels, share So in are just EPS with that also to of in because PowerBridges environment that potential those ESL is combination that or certain as we Also, our not use and reference partner just of with require designs you cases, could scenarios, and those together have potentially what higher technology our it's we also, the you're have, tend applications seeing use other with that have they powered that. solution. part a devices put there also we have when we that reference also devices designs, semiconductors potentially

So se. there's combination, there's a off one per a not

Suji Desilva

very Switching in revenue is elements Okay, still in the financials, product is revenue the non to I of XXX% quarter there's terms the showing over perhaps XX,XXX helpful. or products? pilot mean, product

Cesar Johnston

There's a mix Suji.

Suji Desilva

can Okay, as of to the and you you're are you foresee they here the go? would What cards understand at get volume and a volumes ramp target then because gross initial high just are more kind margins shipments. know where low this

Cesar Johnston

definitely Definitely, the looking numbers we're not call, they number with I exact we bring that volume the definitely targeting we're ramp number to not, down. this on time at can we're down. mean, but

Suji Desilva

you've I the And ATM Okay then lastly it's helpful. here. very quarter, the completed on know

or ATM good coverage funding like the quarter. you'll or of for kind was to near the feel about you term. looking you be And another if up the guess whether first cash talked vehicles set have in You I burn other

Cesar Johnston

we the we finished actually last quarter, raised we million so we, actually ATM. mentioned XX haven't well Okay,

approximately million that's So the ATM. timing. on just still our up X left to And own

Suji Desilva

said I'd completed the no Okay, you'd I completed heard hadn't you ATM. you guess

X million I then cash burn left. in left. the the quarter, And Got million X it. quarter? Just guess first the was what

Cesar Johnston

million. X.X about Overall

Suji Desilva

Okay.

Okay. progress. congrats Thanks, the again, on guys. And

Cesar Johnston

you thank Okay, Suji.

Bill Mannina

Suji. Thanks

Operator

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

Cesar Johnston

like make we partners well allow the previously shareholders and As to stakeholders reach support, most thank our stated, us importantly, known. and would and products our our to our for extend that

you for will very has forward And of history. be our hard wireless here and we We are announced solution move today in make networks. first are important power This is We working forward make product us. the progress. IoT wireless we Energous all growth this we seeing been quarter power a for we updating move And And to networks. as important of year. very a the as

you thank So very much.

Operator

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

You may now disconnect.

Energous (WATT) 11 May 222022 Q1 Earnings call transcript