WATT - Earnings call transcript Q2 2022

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Operator

Good afternoon, and welcome to the Energous Second Quarter 2022 Financial Results Conference Call. [Operator Instructions] Please note that 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, Joe, and welcome, everyone.

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

to to of over like I'd Cesar Cesar. call the Please Energous. turn CEO ahead, go Johnston, Now

Cesar Johnston

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

Officer. this news Joining Chief acting me like Financial our latest would Bill sharing start Mannina, is with by We to you. our call

for transmitters also broader announced This enhance IoT in range capable PowerBridge delivery at with capable to announce that support in PowerBridges for is WattUp why of our distance wireless are fully the partners power a networks WattUp earlier XX-watt FCC XXx This deploy to greater support new performance our we power advancing afternoon, higher devices, only PowerBridge charge limitations enables new power charging our higher receiver FCC this PowerBridge. certified. hard are but penetration that X-watt wireless hidden These now at network deliver a higher further to WattUp than can of that where than no allow are release power breakthrough our achievement are previously distances. us milestones wireless received and coverage approvals XX-watt for high approval XX not - needed transmitters power it thrilled to distances us charging even allows power such signal our of high authorized. goal power Energous of generation regulatory long-term we energize to As of significant applications press receivers. and and our to

X, and in-store the WattUp Wiliot, history. fitting announced first A retail the the partner, software tracks on pixels wireless company's smart the August or thousands implementing in the of customer of in IoT flagship. WattUp multiple from PowerBridges, deployment innovative power PowerBridge items warehouse movement we XXXX, network RF under Additionally, customer and Flagship's thousands room our tags store, energizing control software behavior. into technology garner of insights retailers understand or our helping automatically X-Watt

wireless Energous experience. unique the of applications deployment can revolutionizing smart power retail, medical, be the the Energous gives believe that wireless additional new and advantage. industry home markets, replicated exciting industrial scalability We opening IoT opportunities Beyond the of also technology networks WattUp us for including is in and next-generation similar sustainable networks competitive IoT, a office, multiple smart in and of power

past In power power wireless Our of IoT applications tags in electronic label is functionality on and focused deployments. capabilities networks demonstrated networks system successfully real shelf WattUp our results. have positive we month, strategy for wireless their for focused and showing RF and

is labels. now as applications By be point world additional for office. new quarter XXXX IoT fourth three highlighted on the We application XXXX will and the current sensors that position shape advantage being As support deployed, we applications, three to and smart year, our power wireless Energous-based target will [indiscernible] markets, a this and medical, wireless and future previously announcing take like would and created, in markets high-volume will our that in of that connected out are enabling for a focusing third are energized these Energous initially access are batteries deployed homes call, which now networks to goal is industrial, WattUp the smart to IoT in joining conference in networks. applications power retail, without and wires we

update development on progress the We IoT our as will move we application sensor forward.

revenue quarter. Moving on to for the

new XX% you reported XXXX. earnings which XXXX press continues in XXXX in This QX the to in now meaningful release compared highlight the progress increase a on and measurable our in we year-over-year growing network will we quantities goals for XX% to and XX% year-over-year And orders As increase QX quarter to represents saw XXXX the of well this QX in a interest the our of received. ourselves our as sharing ship update as $XXX,XXX for over that give on as results set approximately strategy. deliver wireless I continue we afternoon, technology product revenue XXXX, we XXXX, QX previous are for as power increase company same

of WattUp X-watt Our orders. first was delivery to commercial PowerBridge fulfill short-term goal the

been in new this to and first and second has XXXX, shipment received. We orders in quarter these since have were first XXXX met, our subsequent recognize goal delivered delivered quarter are shipments proud we of that QX orders we and as

devices has near-term August identify X, targeting met this a Wiliot flagship as addressable recently now we been first deployment was head related bench to markets our for goal RF markets, tracking and asset our and first second last pilot with deployment, retail goal completed. of XXXX. production Our application announced which We Monday,

the our in shelf to end-to-end the We deployment. CES of Lastly, end-to-end label development an goal the Vegas. was of the at complete our completed and stated and development third Las target system near-term first XXXX pilot electronic demonstrated system system

in on now. goals, first those call, also reiterated - in give the we the goal this updates and several will quarter near-term our to In like long-term earnings highlight XXXX future. further I'd We right

of following; standard; first recommendation power number designated a develop transfer lead number wireless AirFuel Our are power spectrum XXX-megahertz long-term power the worldwide. megahertz worldwide. AirFuel develop first spectrum the to as power to goal I am and to two, power efforts the designated support Alliance the be wireless pleased transfer efforts Alliance efforts continues one the the wireless wireless two and to relevant all in ITU while align to spectrum as leading to report that standard, have part Energous ITU XXX

Our high-power certify is the PowerBridge transmitters conducted and European to IoT network, greater limitations. long-term power in X-watt Union than U.S. goal the power, wireless third distance without

the this With potential we number announced X-watt have the report than markets target certification XX-watt Union, four the to pilot European and I'm excited PowerBridge FCC is Long-term deployment. first today U.S. to in our we goal ESL applications that greater achieved objective. that of vertical earlier identify certification and in

a that prioritize to pilot deployment. are to continue We this form goal inroads important

identify IoT number to market and process third five technology. to the demonstrations. and goal are a in for third a announced on solution market was supporting our core technology system just vertical an of build developing vertical we sensors, our long-term We based that end-to-end Our customer differentiated

year-over-year stated sixth long-term wireless to deliver revenue deployments. is network power goal growth our expanding and by Finally, less IoT driven

revenue Marino XXXX. am by compared power of partnerships our and this As And Also, new a strategy IoT growth revenue summary, very at management quarter, IoT Giampaolo platform short proving it's energy applications. solidifying Vice in team, have gaining Business mentioned and networks. as our as through the equivalent we IoT wireless two quarter momentum we wireless deployment delivering earlier, to are we solutions are growth have shown goals building active focused and quarters networks as to to in President Energous. goal exciting I the In on welcome quarters driven on Energous power that and pleased Development Giampaolo very significant been last power networks. expanding this year-over-year committed a brings long-term been of Marketing. our for strategic met, Multiple experiences is in on wireless delivering

a wireless I call making will acting achievements. to now turn Energous Mannina, CFO. and network Bill? New and reality. technology power exciting Bill certification our is RF this

Bill Mannina

release Thanks, QX Cesar. we second of XX. for the and close our ended results XXXX the financial press our today, market fiscal announcing operating issued quarter June the At earnings

million was fourth costs for of million a due a $XXX,XXX shares same of loss expense million Also, in fiscal to total $X.X or decrease. raised did loss our I'm to a of outstanding. due revenue of net report last GAAP revenue the million XXXX. on offering, million. not average quarter - was We QX lower million quarter the of quarter cost our Year-to-date, in larger expenses This an main weighted compared in reason to year-over-year of net year-over-year ATM, percentage to million year-over-year the share shares of year-to-date million. decrease million over the a loss for or second our a at-the-market in stock revenue, Approximately and XXXX. an or QX Total The QX the GAAP net costs for share compensation in the stock XXXX. quarter, of we the was compares our for $XX.X quarter up prior $XX $X.X Cost million primarily large $X.XX of and an compared expense the to of share average added product approximately Approximately expenses $X.X the and making approximately increase which increase XX.X basis count which $XX recognized loss XXXX, $XXX,XXX, QX. second approximately $XXX,XXX which $X.XX the in weighted of million XX.X year. in an in of added of the in was million approximately second in $XX.X was decrease tied of XXXX. For of GAAP a for million The with and were of per X% last or decrease additional last cash net quarter, completion $X.X approximately the compensation prior $X quarter in than an GAAP lower $X.XX And expense. shares. was increase mainly XX% QX to year. million and increase shares $XX,XXX per any total XX.X on XX.X revenue and The was approximately lower accounted sorry, quarter $X the than the sales totaled expense, second QX share even per in quarter loss $X.X $XXX,XXX

with view the investors, especially a for for we company for our used information. non-GAAP provides useful when stage, non-GAAP a for of Now comparison our information quarter believe numbers at GAAP a as

the decrease mainly decrease of the $XX.X The stock approximately totaled approximately of million, from lower expense non-GAAP decrease reduced was approximately compared $XXX,XXX $X resulting attributable prior of in due period a compensation last SG&A as from and The to $XXX,XXX to decreases decreases approximately lower due development Year-to-date, to in million R&D in was total annual our $X.X mainly of of of $XXX,XXX QX $X.X versus last quarter year. year. and a a $XXX,XXX approximately Excluding of loss costs. compared total development approximately cost expense, expense research and a mainly and $XX,XXX and $X.X million by development $X severance and mainly revenue. last approximately $XXX,XXX compared overall for QX in and and chip expense Non-GAAP expense Non-GAAP meeting net our were non-GAAP $X.X loss decrease lower revenue, decreases depreciation were of approximately of partially an was XXXX. QX and of to $XXX,XXX million, to approximately The $XXX,XXX $XXX,XXX operating cost headcount QX due was and count QX an well $XXX,XXX offset approximately when increase million versus were $XX.X and our The quarter the QX decreases. year-to-date QX The and mainly a $XXX,XXX and compared year. to headcount expense decreases year. head GAAP million, was fiscal decrease costs. count prior shareholder and research last decrease as to legal lower non-GAAP approximately decrease to in than marketing. non-GAAP was lower sales of decrease decrease SG&A, to of the Net compared same expenses loss lower and and in to head compared and million million, expenses cost expense

balance remain QX debt-free. with the sheet. to cash Turning We $XX.X million ended in and

forecast trend in our expect to GAAP range we continue year current to and cash year-over-year growth. We operating quarterly revenue with our mentioned for earlier, normal non-GAAP expenses Also, the as fluctuations. the full

rate. I through We increase while our operating give question-and-answer made being revenue the the operator also are our the see current efforts session. for pleased run now the progress to back managing to expense to will call

Operator

first Please [Operator question Jon Instructions] will Our with from come Hickman go Ladenburg. ahead.

Jon Hickman

that it? with started about down in Australia. more they've flagship, talk - the you one Can your Is retailer

Cesar Johnston

Yes. of that thousands made store. in power is bridges our announcement tags tens of with The first we of our two reference in RF with to deployment ago days our

Jon Hickman

there this a Like is like one And a hands? is - there expands by then to store is a store. beyond any that a change plan chance that

Cesar Johnston

company information can as this release retail multiple yes. point to with sites. in time, store, far has further been And a in retailer, any has respect that there's It's that flagship we our at not retail potential released the to - reference

Jon Hickman

other Are on horizon flagship? the retailers with there

Cesar Johnston

but not We, actually in opening up as just showing build opportunities, retail number we'll the for plenty to potential partially potential this technology and general, one, let we work flagship of first the markets. customers a show with not with we're that and in by of we'll just use

yes, So is it likely.

Jon Hickman

year talking year-over-year were question, kind happy? percentage of but this last then revenue make Do some $XXX,XXX. And that have you you Okay. would and answer probably in revenues you you're growth won't about mind

Bill Mannina

Jon, growth. the but to we're We possibly right moment, we're what advising now. giving we're going guidance that's right look be that's it's can doing more now. And the At that it's next Bill. quarter, at guidance giving year-over-year

Cesar Johnston

we two growth. And shown XX% XX% quarters, actually have just the first and

Operator

come Please Capital. Desilva next ahead. go ROTH Our with will from question Suji

Suji Desilva

cost Cesar. execution Bill. on Hi, the the Congrats Hi, well and here. progress as

So already talked of you sensors. give IoT to big the to of relative sense ESL RF and this targeting? a of one is now about, sense get you're what how the markets a Can the us opportunity market tags, addressable new relative each new you

Cesar Johnston

that you they're That $XXX home together, smart as tell smart billion. well the markets IoT I industrial as in these office, can retail of all order Yes, Medical. includes and

IDC, [technical from - difficulty] - each between recollection these XX is around so now those billion - As of average, the each the that's somewhere per My so relative far as sizes yes. get one IDC. is we as way, of guess by are I data them, this or mean they're right of that I

addressable market So it's total respectable. a that's extremely

Bill Mannina

pretty And Cesar. it similar like, size, each in sounds is

Cesar Johnston

closer around industrial but IoT remember, say, billion that a $XX the of $XX would These to, care them there, little is the in somewhere probably and now call so. are billion medical is €XX so, health or it, one most higher, I billion or

Suji Desilva

in you're see large know earliest us can to on newer sensor. But maybe I of the talk just understand where opportunity And market you some areas IoT update the about vertical are planning what might traction? that to you

Cesar Johnston

potential really to we thanks for Yes. applications effectively any moment is a announced of power is those power that remind enabling watt. world to generation XX we network. really for the deployed is of receiver, the What today applications the and I'm we power talk what about, the next next networks multiple very networks. And at generation we the this here Energous say wireless what question. basically would And everyone that taking deploying of trying that with exciting that we is basically of like Suji, I deploy are here of networks, while are we're the advantage what's time. wireless we independent talk doing wireless any And about markets. actually

as those when people down to to tap IoT been to quality. electricity go that it sense lines, Now people has lately, have areas being sensors, has now at and very, which actually and [indiscernible]. at the your you environment, to being that sensing air able look and become able to comes being able to allow we're it at also is very with as offices sensors able able important into being of look comes levels when particular shut to offices humidity, Air light COVID and at looking question, to the to able being savings track possibility temperature, quality look along being

So an we're to more spaces basically way and talking forward. will That's about forward what automated managed. those provide sensing move looking we're how moving as updates the environment at, we are and change we give

today have that our for power that's same technology far, before, said you so stacks. announce those will transmitters purpose. will and actually our that remember we can with And ESL And and three more. applications the of dealing what developed all We I been strategy that complement if

Suji Desilva

A few questions. Great. more Okay.

would that pilot? each how flagship about take On what we the think be should production perhaps long would happening pilot, customer and stages What of next starts? the before

Cesar Johnston

multiple relative a ones. That's And different is are And today. one. customers they they a different very function it's one evaluating good that as the basically have a we technology question people and happens the is we to after that prove in into for going is place, move that. what say do their that, I - level. of our have. they don't effectively, But generic they to template what do single then automation product And that be is can

Suji Desilva

Okay.

sites, next be So piloting you're saying. will multiple

Bill Mannina

next. That will be

Suji Desilva

it. Got

make And just then this Okay. I right. helps. want That heard sure I to

On I'm you that power, like buried more being sounds example the would along XX sounds curious hidden what of language. that or recharge might kind to hard use to that watt, it reach, that of be with because can now sensors interesting. be obviously

Cesar Johnston

is there question. my Yes,

one, expanding the have of X-watt the things systems about different and new One type direction with, a tags, of in to targeted complementing wireless hidden further an amount generation, absolutely type case that would Number you or is say, RFID two and receivers. directions. areas it's let's have that the implementation. PowerBridge So you into BLE deploy that penetration tower of it of hidden new it's coverage Therefore, have can exceeding in you you coverage XX-Watt. XX-watt where allow network a be our product, two

possibility. So that's one

only small it giving to than similar range, way, thickness further so being give able The to very Wireless only very, on deploy And in I now the look more is more our previously go range market and allow power watt side horizontal actually and you our that the X able wireless in XXx based transmitters certified have to there level. you being And or up out far, mean, is you either as at two the in that reported. this actually the power things, height. And if product but more you have transmitters, now do one-inch at second you X-inch. power we systems, to by also networks

important, in up the most be So a now areas that on XX-watt that are we're markets power systems, next year. have opens with have can where that it not we that can other towards will And probably now the possibilities of we we wider today system. we position we focused working on because

So there's enable doing other as because we're to that be we on focused that levels right of now a company, we focused can even IoT on small now. devices we what haven't need very

there's plenty of with opportunities So XX-watt.

Suji Desilva

maybe good for perhaps provides question That And some color. Bill. then last

you You impact did the management from job areas a to top how about business talk while to the the projects good out? doing? any of you're Or you're managing OpEx as reducing what line Can OpEx and maybe grow pushed cost or well. you certain approached sort trying were

Bill Mannina

were of I attributed costs the headcount. mainly mean to those some

costs, But some was just rate hires. lease the lower QX. renewed managing at Shareholder related, kick managing Meeting. our other headcount just costs So have like in, it are in also legal, those Annual we're then that as those And I we will also And general decreases. mentioned, there of targeting, it's are G&A a

Cesar Johnston

done luxury general, restructuring was on in cost yes. Some that

Operator

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

Cesar Johnston

in next-generation our development the Thank continues the stakeholders like as support thank their wireless and to power the you. for Energous of of industry RF-based deployment to We lead networks. would shareholders

revenue and our products. deployment innovative increased generate through shipment We successful company, power network growth the are wireless of an will

you that update have focus to The news this short we'll have as the we achieved and goals. support. important progress our will and long-term quarter, far, So and core for team Energous your reported our move we term of we this forward. continue on Thank goal, on

Operator

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

may lines. now You your disconnect

Energous (WATT) 11 Aug 222022 Q2 Earnings call transcript