- Earnings call transcript Q3 2022

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

Operator

Good day and welcome to the Energous Corporation Third Quarter 2022 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, Wisnabe 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 revision expectations federal otherwise any or changes elsewhere those events, to herein required regards 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

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. third quarter welcome afternoon Good call. the and conference

Financial report line, of Joining acting growth, our me am Chief quarterly bottom year-over-year to delivered third while quarter I is the revenue continuing to improve Bill today XXXX, over XX% in our Officer. driven pleased just Energous Mannina, that for hear. the wireless as XXXX, fulfillment of orders demand is a progress. network for power by we In now strong the indicator substantial demand third you the made increasing WattUp will PowerBridges. solutions of our and This our quarter

power and both announced provides PowerBridges system in-store tracking dynamics software of perfectly devices, be the WattUp network, the data. in energized wireless Firstly, deployments, transfer. deployments also eliminating potential of Pixels safely In our by WattUp the successfully the the markets, thousands partnership enabling the energized FCC distance for of of active Australia control power batteries our PowerBridge, XX through WattUp technology we in third approved IoT an without installation need merchandise for Flagship wireless customer new the increasing two with retailers power adjacent Wiliot These need Flagship. quarter WattUp rooms we can showcase Wiliot. power XXXX, The installation batteries with cables. Energous or levels capabilities harvested transfer where regulatory PowerBridges first and harvesting under approval retail in suitability for IoT announced of the for installations of power demonstrate and and These retail multiple

In for WattUp our addition, in complementing U.S., and Zealand approvals Canada, further we EU, in announced the regulatory and India our approvals PowerBridge UK, New China. Australia

months partners that to performance, wireless radiofrequency partnerships strategic band overall and success forming the market, to approved go-to-market ensure combined is IoT distance. Energous a strong cost over and technologies. Our continued wireless importance band customers leadership our for with progress In we safety achievements the And at leader patents last XXX and supports megahertz standardization transfer transfer, ITU a of Energous transfer. recommended our to position for power Union, made IP including These transfer. solution technical X note United deployment. system focused footprint. regulatory best portfolio and the as option an a for IoT And Energous time it technology that XXX and at the Nations in business highlights our ecosystem. wireless the megahertz frequency transmission-rich, are International global fundamental a choice solution of the of Telecommunications committed the remains develop granted we to pleased The the of and power October, wireless believe is IoT energizing span power we in power XXX the in and recommendation

with focus key address technology. technology intend As important each has such, over the Energous market to specific our to the last formed XX we partnerships where months, deploy players strategic

and trade positive the capabilities of to booth. deployments e-peas. a world’s has with systems industrial current and to kit shows fourth based consists retail unleashing some one and helped watt industrial, Energy achievements for at we XX Energy also will tech their Atmosic to demonstrating their present quarters, emergence numerous smarter hand Kit, Technologies and partners application best of Kit, IoT summary, from new technology in Electronica distance this Evaluation very Wireless standardization has with power on a released our IoT positioned the the welcome the during Harvesting intelligence. and are to IoT receivers progress partnership conjunction Sensor quarter, be any Harvesting Evaluation you Energous its QX, clearly enable be establish With to a XXth. of a Electronica IoT, Munich, our and we partnerships revolution allows leader system well-positioned to with devices supporting as Active a artificial Power as our our three in in X at It back Regulatory international Germany in fit with last coming market. a new needs. recognized we announced solution In over of our COVID-XX, medical efforts, the to through customers the excited visit our This with PowerBridge to in Power from of in November Wireless certifications latest technologies technology leading WattUp of industry in addition evaluate previously Exhibiting Wireless that specific This conferences applications we and is

for Turning has earnings now first for we the short-term XXXX watt fulfill we QX on goals and been on WattUp company to to second PowerBridges general set against delivery XXXX, orders met of received. goal in We that quarter to continued this a commercial our X orders. ship the out was our goal call that update noted

academy a an beachhead of at deployments Wiliot application near-term announced Australia. tracking first We our QX RF-tag first our in goal and addressable related pilot to asset brand and goal two most identify second targeting this was met Our markets devices and the of deployment. in store production we Flagship, recent with

complete the target were third our and shelf label on Lastly, of electronic an system goal, deployment. first end-to-end pilot stated development near-term our we to

update our We goals and this long-term market opportunities. give explore We to to like would potential on an reiterate continue those. partnerships and also

following: long-term are Our a support power wireless develop transfer AirFuel Alliance goals to standard. efforts the

As a AirFuel AirFuel at excited towards see Alliance, is progress transfer we standard. the making to the the power world’s finalizing board Alliance are the member

We Alliance will give further standard. updates this on as progresses that the towards goal AirFuel

Our first to as second worldwide. long-term recommendation lead power transfer power spectrum goal designated the ITU XXX-megahertz spectrum was to align the wireless wireless

using October of of year, vast historic accessible As power XXX-megahertz band. ITU approved number XXX-megahertz and up for transfer we wireless for This the in a reported has markets opened transfer. wireless recommended this achievement the power

high XX-watt long-term certify X-watt conducted U.S. distance certification, is EU power, X-watt greater we the the PowerBridge goal certification power in PowerBridge greater announced the objectives. have achieved with August, With to than a these our earlier in network, and than wireless that IoT we limitations. FCC WattUp without third U.S. along EU power Our transmitters in

target goal deployment. four to Our identify potential markets number first was vertical pilot applications ESL and of

As explore I this and opportunities. we earlier, market partnerships potential to continue mentioned

an number vertical technology to Our goal long-term system build five third demonstrations. was end-to-end identify market customer for a and

the under goal vertical market system IoT completing in third as development. process an currently this of are with end-to-end within our identification We of sensors

report by year-over-year achieved XXXX Acting for quarter XX, Mannina, Finally over revenue ended will CFO. year-over-year Bill? and we growth power of And is that deliver the the to have our deployments. year-over-year driven delivered most period growth stated XXXX, this happy quarter to call important, now IoT through revenue I network expanding quarterly wireless sixth to each XXXX. revenue third goal of our X-month XX% in September and approximately I turn Bill growth am

Bill Mannina

earnings QX operating our XX. the issued and our we third fiscal press today, ended Earlier September XXXX release results Caesar. for financial Thanks, announcing quarter

and QX in was decrease an of X% in approximately cost For million, $XXX,XXX the XX% added sales of per $XXX,XXX year. in $XX.X and total per to lower expense. and XX.X third a an prior $XXX,XXX, on and to the QX or quarter in on quarter $XX primarily shares year-to-date million decrease approximately in or of compared due basis third quarter, increase due of an the outstanding which revenue, cash offset loss expense, quarter, approximately expenses due primarily quarter, of to the The Total an in in cost in which prior This mainly and a QX the write-down. approximately fiscal was payroll stock share last to million share and ATM added $X million in The stock a comp we XX fourth decrease additional $X.X was recognized million GAAP percentage due in and $XXX,XXX an approximately partially million Cost are $XXX,XXX also making payroll and decrease count a to $X.X and of approximately was expense sales XXXX. GAAP GAAP did expense in decrease at due to from share year-over-year loss just was approximately the revenue increase severance a quarter in net a approximately million in loss $X.X quarter expense $XX.X a R&D compared over an in to total our design of of by QX due per costs GAAP for weighted outstanding. in expense, expenses third average shares and shares. compares mainly was in million shares stock same of million due and increase million mainly $XXX,XXX million net XXXX. XXXX, approximately quarter the of to product our a million at-the-market primarily expense marketing $XXX,XXX QX decrease for last increase $XXX,XXX on decreases $X.X in to decrease for a facility $XXX,XXX the severance cost which was million, comp quarter million $X which $XXX,XXX $XXX,XXX year, in XX.X of million XX%. loss expense, than $X.XX in net or in due $X.XX decrease severance, a revenue. or Year-to-date, $X decrease expense totaled share to and revenue XXXX, a in revenue of lower $XX.X any net offering $XX decrease than in of the approximately an which was an expenses weighted report $X and and $XXX,XXX approximately The raised recruiting also comp to expense $XXX,XXX a million last $X.XX R&D and was a a the GAAP QX up not of our mainly chip decrease third in average payroll Compared $X.X inventory the cost total million of in We decrease decrease $X.X to under expense. expenses of larger lower, decrease year-over-year an decrease approximately expense, cost million

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

development QX comp a total headcount by approximately of $X.X in sorry. recruiting to expenses reduced decrease Excluding expenses approximately of again depreciation increase decrease expense, and QX cost cost approximately was XXXX of revenue, QX offset last GAAP mainly approximately in sales recruiting The The approximately partially to stock-based an research million partially net of in offset compared our an costs – fees $XXX,XXX a decreases and cost and from was compared non-GAAP of QX due and and shareholder in mainly to of of revenue. decrease revenue QX compared year. $X.X totaled $X.X by compared decrease in decrease and $XX,XXX cost to and marketing of to also and meeting due million, $XXX,XXX million, and increase to annual of

mainly compared Our decrease the and $X.X Non-GAAP consulting compared QX and quarter to an approximately compared and compared due quarter $XXX,XXX costs. non-GAAP QX fiscal XXXX non-GAAP to QX XXXX offset million to decrease compared decreases $X.X SG&A in mainly to costs. a and expense was expenses chip by versus to million decreases and The compared in million legal loss was meeting XXXX. payroll last in lower the mainly QX The million Non-GAAP research versus approximately year. was cost mainly due loss decrease decrease approximately of prior and $XX.X recruiting approximately and compared to for development was chip and was recruiting net $XXX,XXX last a QX decreases partially QX decrease was revenue. The development expense decrease in loss cost the of and approximately our year-to-date $X.X $XXX,XXX was The expense, than QX a decrease the $XXX,XXX recruiting costs. was and million $XXX,XXX decrease expense approximately to of decrease decrease mainly due to period $X.X development to non-GAAP million, to QX in compared of approximately lower costs. of consulting due $X.X same $XX year. decrease approximately a year. expense, QX decrease an decreases and approximately annual $XXX,XXX The last shareholder $XXX,XXX million in total Year-to-date, to lower and $XXX,XXX costs chip to of costs million, increase prior of an to expense, was in due in development of payroll $X.X in

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

cash the fluctuations. normal mentioned our the Also, year back I give to to GAAP in the Session question-and-answer non-GAAP session. continue range for growth. for full expenses will quarterly earlier, the Question-and-Answer trend as now forecast operator expect the year-over-year with call revenue current and our We we operating to

Operator

Thank you.

Suji first will [Operator question ROTH comes from go the Instructions] now We Capital. Desilva question-and-answer Please begin ahead. with session. Our

Suji Desilva

the Congrats Cesar. here. on Bill. progress Hi Hi

and So, three are two Cesar, are have the now excited most which best can most maybe geographies, top or near-term? you the geographies, have and – about, geographies, those Australia of several talk we about added you out opportunity near-term the you

Cesar Johnston

Sure.

have now communicated China, certifications have Australia. New far, EU, Australia. So, from so deployments we two in Canada, U.S., in Certainly, we have what UK, we and Zealand the and India,

reality that the makes now. that public we is So, that very very excited. have And us made

only are into As looking a definitely one are few China. those in of U.S. there And certification looking the far opportunities if also to companies, as and has large we the that the into. – market, We is certainly to actually UK we lot not where are markets interest. China of that one owns are that

Suji Desilva

dollar helpful. have you flagship And talk Can Okay. with a Cesar what under That’s might what stores that belt your might per and thanks. these – that should about some Australia. months for you pilots then of Energous pilot couple of be store turn about proof – now how in you content eventual the we then as these think out and concepts there production? into

Cesar Johnston

of, And need in transmitters meters, XX is XX,XXX so. in in are But and when the shelves that if the the the places, So, meters what complement we we And the talk of we have to ceiling. of these let’s costs there not some store are say, specific square of or other can levels is somewhere our can capabilities discussed of here. any spread into fact stores about around deployed then feet lower the a tracking, to XX you order also those signals place right. coverage those devices somewhere and penetration between the

So, of are we about talking devices, tens right.

you. I given do here, that you the given have can your numbers So, math

can right. transmitters so, every you place or So, XX meters

you leave that, have So, have can is IoT And devices, thousands you to you. once you of what support. now will that pixels, then have up that really actually you I

but we a on specific So, have on to pricing give be able high level you commented not idea. just this,

not any than more commercially points WiFi, are access which We available today. for expensive are

So, price that we in range. are

Suji Desilva

Okay. Very helpful.

And about What it for Bill? you Okay. what was the talk nature was? that? maybe And Bill, then the products of of inventory write-down can kind

Bill Mannina

market are wasn’t adjustment, with of just lower it’s the products of with It now transmitters. selling cost we dealing

Suji Desilva

or like the level it level stay of the XQ bit talked quarter than And for is prepared about things sort remarks. non-GAAP? chip might But that level came Okay. XX tape-outs sustainable a new And little higher again, lastly, make in down that whether sequentially. in or the for R&D sort the the then of Bill, the the you the

Bill Mannina

just Yes. terms a fluctuations there. quarter activity of headcount. variability This we are There just have will And and be to happened in there. low some still

Suji Desilva

guys. That helpful. Thanks Okay. was

Bill Mannina

Thank you, Suji.

Operator

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

Jon Hickman

can you hear Hi. Okay. Cesar, me?

Cesar Johnston

Hi Yes. Yes. How you? are Jon.

Jon Hickman

little could deployments going of the dozens like you elaborate a your, off, market really here? the to revenues happen Could see gating where with we before what’s start what’s Hi. I factor development take really to guess bit

Cesar Johnston

Sure.

technology, like we have together say, in we those should perhaps add evaluate, in typically comes customers revenue, probably starting concept, At different software in number not putting Energous this a with over on basically more them at in to proof months work you they that nine time, as for also kits, the to potential and but right. of level. grows, of a get they large and technology, will it customers time that’s it’s engagements have not would point by time on further deployment. And stores, that place. will that potential process also plan they they our are PoC happen. in a expansion of concept right. the take will are working PoCs as is of together, that, At point to level, I do these though that get when some their of as as But year, as to comes in deployments just deployment. a would final proof will it and So, evaluation And see there And as our go evaluate as that which queue time. or other we a the number this in point we we

Jon Hickman

tell – how you many accounts people us can proof proof-of-concept? the how many So, are are

Cesar Johnston

Australia. publicly have in point release in we to time, been able At this two retailers

Jon Hickman

of guys concept? Oh, you consider those proof

Cesar Johnston

now store. deployed of concept, system second yes. say at would that say would level least proof concept, being of fact The proof one than in further I is I the is

but get and further need this would move to they before a that satisfaction call any would I they So, to say, level stop say I a and close of they would production further. level, it expect go

Jon Hickman

Okay. Thanks.

Cesar Johnston

you. Thank

Operator

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

Cesar Johnston

Thank you.

grateful and are our the We support for from shareholders the stakeholders. continued

[ph] This we IoT so nine of deployments, in certifications, of and long-term company in of regulatory majority quarter have in including of networks development we XXXX. efficiency. And progress a and In our summary, have commitment particular, in power many wireless have industry. the the the we Energous facets the crossing only technology business, that expectations. done saw partnership goals for achieved to set its out for our progress, short-term months, steadfast operational substantial remains

On next will detail including the long-term on we focus increasing which will quarterly the next top plans our and objectives New call, turn to the short drive and on thank we quarter you our keen to your progress company’s help look you on XXXX call. for line forward with in both deployments, Year. We for a growth updating in support

Operator

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

all may You disconnect. now

Energous (WATT) 4 Nov 222022 Q3 Earnings call transcript