Earnings call transcript Q4 2022

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Operator

Good day and welcome to the Energous Corporation Fourth Quarter 2022 Financial Results. [Operator Instructions] I would now like to turn the conference over to Matt Sullivan, Investor Relations. Please go ahead.

Matt Sullivan

Thank you, Dave and welcome everyone.

Before we begin, I would like to remind participants that during today’s call, the company will make forward-looking statements. the prepared inherent during are risks the filings in are Q&A detailed whether Commission. company’s to Exchange subject and with statements remarks the or session, in These and Securities uncertainties that Except circumstances. as Energous obligation statements revisions undertaking regard or in contained or those federal herein publicly conditions updates to the to disclaims expectations reflect release changes any to to required otherwise by laws, forward-looking and or events, elsewhere with

Energous call, Reconciliations will discussing please financial note in this Also release, is by comparable G. during measures today’s financial Regulation measures directly which defined included posted of be as measures most that non-GAAP non-GAAP are on GAAP press website. to the SEC the these company’s

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

Cesar Johnston

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

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

quarter. fiscal significant culmination the XXXX is is end and an XXXX with which strong also our accomplishments, XX important of of sets the partnerships of an QX momentum. foundation the exciting It months and business year of

I direction Let’s end an XXXX. our call by XXXX. followed call highlights, a this of and our business this specific goals in overview QX XXXX of discussion with achievements begin by summarizing will for

cables the XXXX, networks. the company and During by of leader batteries through we on the wireless-powered unleashing our focused the full year eliminating vision to in be IoT potential

combined to for billion market enable report electronic our our pivoted IoT addressable labels and to RF $XXX with the is build we applications IDC wireless-powered of according with IoT and sensors shelf to goal main data. XXXX, to support tax, efforts a and technology In total Our customers the elements networks. capability company

applications to create to adding value these customers. while new IoT Our for target active network our harvesting ecosystems wireless-powered energy was

networks important, we have our resulted installing process evaluation would XX of Today, are least the are have These in including most proud of steps three IoT that the or report across learn technology. marketplace. kits represent European customers about retail, broader Asia. towards to efforts and to in report XXXX important our at and the our wireless-powered multiple regions, installed deployments But driving to the our first our customers technology now in industrial, U.S., Union in we that automotive installations care purchasing now health the markets different proof-of-concept in like adoption

are well-respected across their fields. customers Our respective leaders business

implement the concept of our progresses As installation technologies, phase. of proof proof new from final to production to to ultimately, and customers decide status their validation

example, PowerBridges, applications customer the at accomplishments of with integrates forms. proof-of-concept an a thousands phase. customer and on include to are IoT hundreds production can two tracking, even tax These on are PowerBridges. focused typically for you phase up proof-of-validation asset or RF XXX majority one in of a Today, give production To the while least final a phase our important

First, they new enabling demonstrate our success an in market. a creating

Second, the they execution that XXXX the and year. the at goals short-term shared we highlight our start of long-term effective of

these update each an provide now of I’ll of goals.

of delivery X PowerBridges accomplished. beachhead our were two first for watt applications goals the identifying XXXX fulfilling short-term and The of a

revenue We at and now X proof-of-validation production least the have PowerBridges transition and shipped thousands now to installation underway. during least The for have company of XX proof-of-concept production positioned at our expected phases customers and XXXX. as is our generation

end-to-end to in CES label, XXXX. demonstrated we or develop ESL which various was XXXX electronic goal system, short-term an conferences, and electronica including have third The shelf

progress to end-to-end very as delivering next during Here, on here focused and collaborating keep I our to partners retail we together potential volume that updated the our systems quarters. can large outlets PowerBridges. significant we our continue with customers offer on for partners, with you will

that for and was worldwide. recognized the in October to to an emerging for ITU’s approved for a goals first was finalized was while historic transfer important second networks long-term recommendation XXXX, XXXX, our first our now use XXX the XXXX, for wireless-powered time wireless-powered December megahertz fully technology respect as in fulfilling With standard, long-term make are the Wireless-powered network goal.

The third without XX-watt August to was long-term networks FCC our goal, distance certify PowerBridge limitations, with XXXX wireless-powered in accomplished certification.

similar devices globe. the third in you distance will long-term goal, short-term certification and make X IoT wireless-powered for the have a Our the networks the at to EU the fourth to The progress. charge certified in watt greater Energous status was in These earlier accomplished update status is year. IoT around goal with we as positioned we capability efforts than the leader as

goal Finally, and live the partners XXXX. applications deliver QX XXXX, support at conferences. sensor final a third wireless-powered in demonstrations sensor IoT of demonstrating multi-spectral public announced and our announce we and We as market application, indoor long-term with receiver network capabilities multiple QX fifth air was in achieved quality multiple sensor

to this final translate the our PowerBridge financial year product delivered into through This XXXX year-over-year move our XXXX revenue, while growth demonstrating along and XX.X% ramps production. for generation report Energous. the the that balance and of proof-of-concept On increase flow the will decade sustained full customers, growth approximately cash early ultimately we for of as from happy longer-term path revenue to stage these On side. $XXX,XXX basis, I’m over programs, a setting

reduction cost-cutting over continue internal prudently of manage to a XXXX OpEx, a initiatives. number through we significant Additionally, demonstrating our

installations across in in interest respectively, now growing This and just least the phase. at important world now approximately XXXX We customer our installations August detail from increased the markets in cover more increase it POC technologies. quarter of Let’s network Australia, to and to production and announced and and our with multiple move will in one potential XX-customer number demonstrates which QX revenue, installations specific one update the in Bill progress. of $XXX,XXX XXXX, wireless-powered of a in shortly. concept this delivered XXXX, discussion X we we in customer number across is Xx QX proof-of-concept our In September proof our of the the

and development based IoT the are network we on ecosystems of in Energous, wireless-powered technologies. executing constantly At identifying

Our up markets. wireless-powered new open our technology complementing build and partners network IoT to is strategy ecosystems applications technologies to unique by with

examples Some well-known announced in data which tracker we a relationship company Australia. embedded charges ball American performance using Catapult, the our or sports a integrates In here an based wirelessly The cloud The from new during football analytics without future, performance the regulations. is example and time ball precision the to football that the with our and one the technology, product partnership of real track Catapult analyze Catapult, the that movements with disrupting advancing sacrificing football game technology sports and reports to industry. benefits athletes results. the transmission just RF-powered in Catapult include:

announced can our air Additionally, receiver multi-spectral ecosystem of qualities, sensor just IoT in smart industrial, application receiver, Sensirion wireless-powered And unveiled in new and using we and couple transformation. enabling as efficiency sensor capabilities real-time licensor development, IoT partnership we for with quality part healthcare networks support of ams IoT also a a examples our home, device. the smart ongoing office, new COX with OSRAM. improvement control air sensor that digital are light control our new a Indoor retail and markets, a

auto-ID systems Holdings and Corporation, dynamic applications On front, Sato for we in Japanese with wireless-powered partnered pioneer inventory store global a the smart develop have IoT replenishment next-generation networks. labeling and solutions, to products

showcased As and XXXX our of tracking at and the recently merchandises partners, replenishment retailers. combined Trade Shows. management overall Demonstrations have for aim Japan National New the York system our of been Retail is solutions and Retail in improve at efficiency to Federation XXXX

receiver which is supercapacitors, Australian are energy And QX. that in company that devices. devices announced technology manufactures maintenance-free and CAP-XX we IoT finally, an partnerships replace batteries with in CAP-XX storage result

also partnered in devices. We to Japan NGK in lithium-ion introduce batteries IoT receiver rechargeable the use with of inertia our

in industry developed to devices Moving by Alliance. over the IoT This on standard AirFuel companies members charge to global of the standardization. air. and We supported was of coalitions the standard as first participated

develop to We for and leading XXX also ITU transfer megahertz frequency-based Telecommunications Union, approval in radio recommendation participated the the International the in wireless-powered band. process

complements IoT a approval worldwide. wireless-powered network for in band the arena, now effort megahertz for transfer for Korea expands The power This India, transmission leader XXX unlimited Korea Australia in transmitter. regulatory IoT and European we in Energous announced UK, China, continues reach distance global transmitting X-watt IoT technology networks Canada, the wireless-powered original approvals Union, in the wireless power to of with official Zealand standard-based PowerBridge wireless certification U.S., wireless-powered the our network New ecosystem. technology, worldwide. the only wireless-powered the In and Energous supported previously the position certification certified deployment South as Energous are

XXXX the year current like outline our turn and I to goals. to would now

growth to new Number production from key to higher cost closely achieve gross our the our system with to such, Number our and As current two, the leadership through market production. revenue our to partners XXXX. potential three, through of identify partners maintain five, over to path margin Number and proof steadily commercialization IoT Number the are markets product key expected follows: along customers industry-leading ramps validation optimize as full technical and with markets network and goals support corresponding our PowerBridge move production. production facilitate and expand of access development. we then customers POC annual technologies. innovative four, as to to to and rollout future growing PowerBridge and move work wireless-powered continue our volume XXXX and our potential technology partners

the will be revenue year-over-year the weighted we year. more, assumptions, half growth anticipate towards or currently second the of Given XX% which of

our XXXX a end standards year center and smart to was office, finding of industrial, company Energous, of with growing transition was result smart the markets. healthcare best across quarter year a refocusing and of at our was It making IoT market and the intersection a wireless-powered summary, In achievements retail support certifications the pivoting home, QX particular, major technology of in and networks. a in on the the IoT

as software believe organization, in grows, tremendous achieve our wireless-powered our IoT with now of to we antenna firmly IoT as multiple supporting we markets look customers Energous markets. potential XXXX to positioned support now to that proprietary semiconductor, the value the products and solutions our network its leader the We have success. demand forward and we emerging Throughout due

the Bill. turn call now to will I over

Bill Mannina

issued results Thanks, release our for and ended fiscal and year Cesar. Earlier financial QX full earnings our announcing operating December ‘XX the quarter today, fourth we XX.

of approximately quarter, XX% year. $XXX,XXX the quarter in and prior the we approximately last to in approximately compared decrease the compared of $XXX,XXX decrease revenue, quarter to XX% a For same a fourth recognized $XXX,XXX in

$XXX,XXX, the of revenue of cost QX QX. in of revenue inventory which $XX,XXX included cost We an Cost XX.X% line increase On approximately in for for XXXX, QX for XXXX. of with recognized XXXX. in we compared $XXX,XXX revenue, approximately write-down an guidance a was report of the our $XXX,XXX prior QX similar in The a revenue any to write-down, quarter. in to revenue basis small approximately of annual compared was This not decrease increase to was did XXXX.

were offset Total GAAP and a in expenses in expense. year, $XXX,XXX the and GAAP also stock payroll totaled last a primarily and costs which approximately a severance an $XXX,XXX total cost to approximately increase to decrease than decrease approximately decrease $X.X expense. mainly and Compared by decrease was bonuses, due higher million, $XXX,XXX a increase $X.X fourth decrease comp $XXX,XXX primarily stock quarter expense million in were expenses to mainly in for million expenses approximately in an stock which the The fourth increase decrease and costs due $XXX,XXX in and due in million comp a expense the quarter in last of lower, of of $X.X in $X.X $X.X partially approximately $XXX,XXX to marketing, and and a was quarter. decrease approximately expense payroll $XXX,XXX total million to expense sales comp R&D an due

share million, annual XXXX, approximately GAAP our lower, just of on decrease total of GAAP an was weighted per and fourth million or and million weighted The $XX.X was This basis, of the total outstanding $XX.X cost in and share quarter fiscal XXXX, costs QX or net a XXXX. average the For net in million XX.X expenses $XX.X a decrease $X.XX a average shares $X.X per of million a $X.X in loss loss per or expense, a under was severance $X.X payroll compensation which million $X primarily million to cost loss QX revenue. and $X.X in decrease million a compares GAAP to million million for were net by due in basis approximately XX.X on The million an XX%. on $X expense, $X.XX in decrease million year-over-year share shares outstanding. and $X.XX $X.X on partially an offset a decrease loss stock in expenses increase

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

approximately last and QX of due increase of net $X.X by QX in in approximately year. due QX of reduced totaled of depreciation expenses expense Excluding mainly headcount, cost of was to and to costs, The decrease mainly to increase an $X.X development chip cost million, compared non-GAAP costs. to and in a approximately and our $XXX,XXX $XX,XXX to for cost a compared approximately GAAP QX revenue. approximately compared partially compensation, total FCC supplies our of for consulting and QX testing compared The again severance was $XXX,XXX decrease decrease overhead and of $XXX,XXX XXXX engineering offset stock-based approximately increase of to costs million, an an increase of $XXX,XXX expenses

to and million, then $X.X period and to costs Non-GAAP the due development expense to was and lower decrease to consulting compared higher year. and The approximately compared in year. approximately prior $XXX,XXX Our mainly compared The of payroll QX last and $X.X decrease decreases was of XXXX an Non-GAAP consulting was in of of in QX a due due compared with expense, costs. consistent same non-GAAP The prior QX employee an quarter compared QX was to increase QX compared million, last to QX expense chip bonuses net which the mainly decreases to the loss an decrease $XXX,XXX million approximately SG&A of development increase $X.X approximately versus of $XXX,XXX approximately when marketing was consulting to mainly to and was $XXX,XXX last compared costs. QX loss costs year. decrease to research increase loss costs. and quarter approximately for $XXX,XXX was XXXX and

and of cost million, due an approximately $XX.X On chip XXXX. mainly than of our million million decrease decrease costs was in fiscal by million development The expense, in non-GAAP supplies was lower total to partially annual of a costs engineering $X.X in basis, expense in payroll consulting non-GAAP expenses and $X.X $X.X approximately a decrease and offset decrease $XX.X $XXX,XXX costs, an increase in an million revenue. $XXX,XXX the

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

ATM. Additionally, ATM. to our we in We we continue raise XXXX, additional XXXX. from our raised $XXX,XXX raised have million cash in year-to-date with an And QX $X.X

our the to expenses similar We to GAAP trend non-GAAP for normal and operating fluctuations. quarterly our expect XXXX range cash in current XXXX with

of of such continue a substantially rent with revenue will expect as on that up look we savings we to XXXX, last headquarters are mentioned quarter. growth We of for year-over-year half OpEx lease earlier, as year. revenue or be for reductions contract effect our for the should a cost more per XXXX, basis. the took XX% of anticipate on revenue, And second for manufacturer Also, unit weighted we our which which towards currently signing cost reduce

now session. back question-and-answer will operator I a the give for to call the

Operator

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

Suji Desilva

on you progress of partners the with question Australia. customers production What’s on have to-date here. Congrats rollouts more what And status Bill. the be Hi there? the the your on of pilots spreading the into Cesar. A retail pilots update stores? or across those Hi in shifting may timing the

Cesar Johnston

Hi you Suji. question. for Thank How are your you?

our We in are continue a partner Australia. very partner. important supporting They

is of to increase total that this asked by out reported a And that today you. that those to you and there, have that have that’s of XX like just I we opportunities. way, interest that further finding that continue quarter. is our – don’t I means about. yet by would I two compared those update a Xx just what the on an what But two, technology with share the while don’t we we We can add

Suji Desilva

I in That’s stand about calendar but Good. any there. for fairly one question could know of press or am out those next business if or through partners to you bring opportunity best curious that My progress months. has great Energous? are in highlight Maybe all the for they is discussed the numerous near-term I release us XX for the the second two and the maybe interesting, two partners highlighted you one ‘XX. have

Cesar Johnston

I one maybe is their It to market. two. and to What each offer is markets, to the unique each tell solutions like different would hard you or at one of do look particular them

we applications look as RF-tags, three about right. we if So, that – you are talked have focused on, remember, and sensors, we ESL

with potential as you work So, of deploying in important And Australia we right. retail Wiliot, partners in area the we have, RF-tags, definitely, with them. know,

them that of I to the retail far, have combination, it’s in PoCs that So, ecosystem, say the us. XX of we so majority area. are out would important And mentioned that those

and So, that’s us. important one area particular partner that’s to one

in Second of area is Labels. the Shelf electronic one Electronic

networks side. evaluation do kit our that at capabilities low-power required And have sell receive today to partner, there, are we with transmitters, Our we the extreme our fact, an in have e-peas.

e-peas out announced, technology that considered as demonstrated, an been have them sensors, like decision displays. by you course, a made It’s OSRAM, as there is move are third company, that display be the there a is important, finally top with CES. the EINC to as we well-known has name leader application way, the there. And there been at well electronica Sensirion, that already applications. on is well And which of lighting the low-power and [ph], with well today So, as And which partners demonstrated for happens important ams two out we and proud working known sensors. and companies see who important out sensors know, are into most as as and partner we we to

more that behind are by that have But disclose. to ecosystem that have And technology to today is take applications. generating to those closer can and to But say not I that there developed ones So, allow work we us – And to potential each liberty partners of customers that, effectively are we that you build effectively that for are others of PoC the a important, they those value partners those towards other the way, at company. partners would partners, ecosystems each that. now add and that get customers the talked production than are close revenue with are eventually and extremely also customers. one solutions their one we I is system integration us there to also and potential

Suji Desilva

question. last of my of then programs might And which are hit out? expect the have talk of for be revenues? Okay. to for you going kind Thanks. those perhaps ones how to you of XX about, you will doubling. the ‘XX Can Just guidance revenue Thanks roughly the to versus announced, which ‘XX to revenues ones understand contribute further many

Bill Mannina

it’s Suji, Bill. Hi

our guidance. mentioned just You

Our guidance of more. is year-over-year XX% or revenue growth

Suji Desilva

XX%.

about Sorry that.

diversified many growth broad programs there? get contribute of sense XX in the just So, ‘XX, that in do expect how how you of to to roughly, a

Cesar Johnston

now, the We are customer, of varies the – in depending on okay. need is the customers and what the willingness early of and also development it function and potential right a that the

give mature, while that. is towards the out we have we grow continue and them a announced year. eight of would expecting we what to months see you the think that of to to weighted to months, deployment we say And And of particular yes. was example. that eventually position But I in that production, of give in good those in half actually we will That of a potential a happens within – you are an on we plans, interesting done, production to and that will a specifics And PoCs revenue production, perhaps, looking probably are answer okay. growth one fact your the to can hundreds idea reality those me right. question, we to But just give to already work be with one better I year, more become that seven so there today, better be an second the that more give you the about of let you We numbers. right. particular as – And

Suji Desilva

Thanks. Alright.

Operator

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

Cesar Johnston

of now Energous you. deployment wireless-powered its was of important the allowing or through without is that transformation into cables. batteries year IoT advanced current digital IoT XXXX. XXXX leading us positioned Thank components energy harvesting has needs the for ubiquitous networks, achievements well smart of active a IoT

and our company members the revenue We wireless-powered team installations, ecosystem IoT continue and opportunities generation identify stakeholders and their progress you Energous. all for ultimately shareholders, quarterly on Energous will customer forward And next support support. and updating to grow new increased look our leading we to you Thank partners to network for our for cash on call. of flow to

Operator

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

You may now disconnect.

Energous (WATT) 9 Mar 232022 Q4 Earnings call transcript