Earnings call transcript Q1 2023

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Operator

Good day, and welcome to the Energous Corporation First Quarter 2023 Financial Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask question. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Craig McFall [ph], Investor Relations. ahead. go Please

Unidentified Company Representative

welcome and Thank everyone. you,

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

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

Cesar Johnston

afternoon, Craig. Thanks, Good quarter XXXX first conference the call. Energous and welcome to

reported using momentum we with as POC year me to foundation is as technology. Joining or our Bill first based initial Mannina, what WattUp Financial proof-of-concept Officer. a installations solid XXXX business refer partnerships our started this XX Chief installations Energous we Acting on IoT and our

regions, we have technologies a QX of expanded to solutions. the the the product installations US, increasing believe of that retail, number our announce is the that including healthcare European in number we in and technology in on now continues different Our We and increase to show XX across and promising results adoption glad Energy's strong are XXXX indicator to three industrial the in that Asia. Union total focus the POCs markets in and a of

report we feel it status continue of the business. the will metric POC growth coming to our in We on is best track to the quarters as

we As IoT our the industrial IoT the healthcare labels tax, across strategy and electronic execute network office, and focus devices market, leader the and energize to sensor to and in wireless smart continue power smart emerging RF in retail markets. shelf home, applications

to We mobility to that from are supporting power for Energy Power receiver proof generation a intelligence capabilities available power of energizing levels bridges with semiconductor support our focused on which and ubiquitous network wireless use enable next-generation the can higher Technologies. need infrastructure are customers installing aim of support concept integrated energy installations, IoT of new and artificial and using devices, device and the the batteries of receiver freedom We reducing placement. wires the

a the enable level. Yesterday, wireless we industry X-watt announced as networks our a of brings wireless to our devices level latest regulations emerging pushing new the new networks the IoT the XX generation in part power US across PowerBridge an to using of designed the of technology in recognize technology power new a a of PowerBridge certification performance product expansion leadership portfolio and The the international and innovation now that latest world. charging availability rules and into with the X-watt transmitter,

required level a and to specific it coverage Energous higher provide penetration. now extended for with to rep and as built resolution The Customers firmware and their And networks X-what is able property, intellectual their applications. access signal transmitter new X-watt safely be transmitters capabilities. range, better X-watt optimize and provides will using semiconductor them energy PowerBridge

the on three wireless IoT-based market. power The to The ecosystem. ignite strategy network worldwide a in pillars within strategy Energous based business IoT executed is team intended is fundamental

The first and multiple IoT applications we're technology for been labels to companies sensors. partner complement a focused [ph], our that electronic It support of pillar capabilities focus our team. our technology has that the on. consists significant shelf is SaaS That

we technologies can whose for system work support partnership XX companies blocks our that plans solutions. with technology Today, as be and used our

The other are products to critical delivering of hands business our strategic potential to end customers. pillars the

Our power semiconductor design evaluate, IoT includes through products network distribution our technology our solutions. their kit customers, second pillar partners, build wireless to delivery, facilitate who and evaluation to

strategic which we on As we two of to the today, focus. are partners announced have that markets

identify continue expand us our to customer strategic help more to We companies reach. potential

establishing IoT support is background our Finally, relationships. customers integrators to well-established a of third and a be fundamental our network with business technical will installing system strategic products global which pillar, strong

to We are field. lead future expanding the further integrated will hope which installations in network, we our system

health move on specific Let's from to IoT beverage and integrator is of XXXX is the and that This quarter, and global unlock leading progress. a IoT improve we update assets. InnoTractor. past three value now our indoor services their discussion welcomed food partners, operations, Thinaer provider for SATO auto-ID solutions leading and optimize location organizations line and to new our QX enable companies. provider Thinaer manufacturing, retail, care system SATO, bottom new logistics, a

InnoTractor IoT, wireless is a supply latest the chains and It supply waste blockchain, in world. vision using technologies. and cloud an by the zero IoT chains. for implements of better InnoTractor digital emissions with company waste reduces technologies

newly power our announced installed in PowerBridge, concept wireless networks proof of partners have deployments. Our

announced on-shelf brands, dynamic to providing following SATO real-time a inventory solution convenience store. inventory Japanese at retailers example, replacement aimed and data its at testing For

a that InnoTractor to mining the that also Energous installed at Energos installed track the installed from PowerBridges Sweden US a supplier ensure also InnoTractor to classify by delivery. to to bridges solution for view about production company materials Similarly, as has areas. to a are shipments Netherlands. PowerBridges to a has charged and in in in assets customers designed those DoD entrances monitor for mine facility properly pallets deploying customers areas to information its Thinaer secure carry Power

to transport PowerBridges are is shortages any its supply RTI they prevent and company missing routed used ensure a to go tracking do not InnoTractor Finally, in correctly ecosystem. of the with that full in items returnable

product our adoption of using become technology our indicators We by are forward the future strong partners We look to available believe they as the installation in that updates our technologies. future. for additional providing reports

Japan's the approvals obtained body States this previously XXXX, announced we for India, XW a transmission and approved our South result series the Europe, QX UK, Zealand. Canada, unlimited also completes regulatory Australia similar the Korea, market effort a with PowerBridge In power PowerBridge of distance China, United significant certifications for in XW as New

quarter. recognized QX for revenue Finally, $XX,XXX on This from is we financial XXXX. down of the the side, prior

along path to customers has production moving we is the quarter, final future believe and indicator with this the increased important compared revenue proof-of-concept However, the an number potential. of prior of that

last the progress in of and future. year installations we with XX good higher today, We production PoC working to are volumes and as installations have made PoC in secure the additional

out forward, As global we move may see on in building with quarterly fluctuations basis. we this installations, revenue some business PoC a our

installation However, quarters. and to which future at of an the next indicator is to believe will over growing I you we the trend, encourage outline continue potential, which look our I growth

call I turn to Bill. over will the now

Bill Mannina

our issued announcing financial the XXXX XXst. we today, release our for and press earnings results ended fiscal financial operating Earlier of first QX March quarter results Cesar. for our Thanks,

in was QX to Sequentially, XXXX. $XXX,XXX we in first QX XX% this XXXX. the in decrease quarter $XX,XXX, from a Revenue approximately compares reported the $XXX,XXX

Our this revenue XXXX unchanged time. at is guidance for

QX $XXX,XXX did revenue decrease inventory a in QX an of to $XX,XXX XXXX. XXXX Cost XXXX. included of a prior decrease the revenue to was as The write-down quarter compared QX, of QX $XXX,XXX compared and of cost

For development the decrease expense, the quarter, costs total $X.X which $XXX,XXX GAAP expenses, compared of cost increase trade includes severance million, quarter, $XXX,XXX to increase costs. prior a down to a show $XXX,XXX costs in revenue, $XXX,XXX to primarily in and decrease by of due cost in in of and $XXX,XXX offset revenue and a by of decreased chip an of

by Year-over-year, $XXX,XXX million and compared total $X QX in costs. last quarter compensation to decrease decrease stock for in and due decreased same payroll a is in decrease to the consulting expense, a year, GAAP which $XXX,XXX primarily expense spending $XXX,XXX approximately

average quarter first prior or was GAAP a a $X.X $X.X on loss million on the to million weighted basis $X.XX loss outstanding. compares per for loss million approximately shares net Net share approximately in XX.X the a year an on last net average shares a on outstanding share million weighted or loss QX per million weighted in and loss a $X.XX shares $X.X of XX.X share XX.X quarter outstanding. million $X.XX or This average loss per

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

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

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

loss million last net compared areas is QX our year. compared year. for to saw non-GAAP increase $XXX QX, $X.X and quarter research approximately This with QX the last the loss line expense per compared development and decrease decrease an and approximately all of of We expense to prior prior in $XXX,XXX to $XXX,XXX $XXX,XXX QX approximately to in an an is across Non-GAAP Our quarter compared increase minor share. fluctuations or was a $X.XX which was expectations. million $X.X of

costs, approximately the to supplies show due $XXX,XXX, $XXX,XXX, to over primarily same compared year, in and non-GAAP trade period by costs. Non-GAAP show the due QX decreased compensation, SG&A SG&A increased primarily prior payroll last trade to quarter approximately by cost engineering increase

cash remain debt quarter balance and sheet, ended with in million the the and we free. equivalents approximately On cash $XX.X

$X.X from warrant which that We the also XXXX issued liability, our were financing. approximately added in March warrants an million resulted of

year we To expect expenses with fluctuations, cost the to our trend non-GAAP GAAP for savings. the continue full cash normal operating range quarterly close, as current and in our look we for to

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

Operator

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

Suji Desilva

for XX%. Cesar. XX% the on up Hi, the the versus Question Hi, for remains numbers, year, XX% guidance Bill. first

wondering, guide? it's and if of ramp those the or a the X quarter whether implies conversion still down. XX% POC back was first I'm that production The POC back-end customer loaded if to a a million, end revenues a to in are

Cesar Johnston

maintain we're That And at not changed. eventually production. our which become will course, increasing, XX% has of guidance. looking We POCs

Suji Desilva

new you It have now sense one, use out of have that hybrid a to the wattage And have just drain? might you future, two that and higher that customers a you'll layouts mix to presume Cesar. will customers Okay. WattUp product, all kind topology products XW. sounds give – ability match I the to the map you how like have just of of for their the and in how of the me The Can advantage?

Cesar Johnston

power wireless in I Definitely. leader networks. everyone remind are want that we to the

get Part to the that. a are be company transmitter, recognition all that technology and the power -- XX recognized now. We we able the power FCC, there also the X-watt the this transmitter bridge until emerging use US, no efforts and certification able in to wireless networks is as certification that power forward the world being by to was most -- get a and The game that moving capability with been the an has latest because contributed full US, actually of technology to XX effectively actually to using only in get up that we the way to network certification company really across all important, to other has able watts No changer. do continue

as the support the will be possibility far we power also capability into. the possibility X-watt our to applications other potential up opens opens up technology. looking bridge to capability, as for have the that markets capability more Now, actually the It and X-watt X-watt

a Now, you to as there deployment, power as system in -- higher you instantaneous to out given we than have higher range, far used as X-watt have allows much twice to have. at that time allows the further how use the you

where both used can depending penetration a product for most and in help. applications accordingly And new be line have actually to foresee is on what customers that our X-watt have. of the And we much mixed This them X-watt and that need pretty will those transmitter important there two the application visibility. is full

Suji Desilva

grow investing Cesar. XX a either That's they And as these or are POCs then dollars for running Okay. helpful, a their employees towards commitment customer, Thanks. typical just in understand POC, to here? how much

Cesar Johnston

what can look I general like. in a mention -- POC I talk might can

all It's can the some POCs deployed. used numbers be a are transmitters. of Some a all and where how POCs single function and of it's application, of function being hundreds it's and

There's have which So, where just you to a -- which have of to the DOD done are of warehouses pretty we visibility POC. is important -- as hundreds it equipment, units okay? application much of give already US a application, actually we large

used, being of used, a is it's all who and where being function it's by used. how again, So, being it's

both. I to all not But energy it's you to, have really think So, focus thousands it's is levels areas, being to penetration, if let's just deployment of consistent over around in look to charged. about of the were important are that have the that transmitters you're say, to the but ceiling, large what and I deployed, to going retail receivers the is have visibility large there at also as be that and good to a able mix it important any really of everyone are areas deployments want talking out

Suji Desilva

retailer, if a single XX count a do POCs or? understand customer One or POC, to clarification Okay. that The trying as a multiple multiple for POCs? to like is is I'm if implies POC you curious me. just that XX sites single has I'm last customers XX,

Cesar Johnston

here try talk In Most been general, what we individuals. of to the sites to that about deployed. are different is do them have

is them of the Each the one of X we've like, the there's the all stuff be did of we showing to PoCs country were deployments in for hundreds There we're a couple from hundreds as let's of In extend to strategy It in have sites, but some PoCs number a XX. on we multiple a of seeing indicator that early large is that really so say, Some now had retail that X is And ago that couple that should that the of gone other of results. quarter across the case tracking. warehouse, warehousing taken customers. deployments we and efforts a customers. have really sites. case of, instance, actually showing XX -- quarters last

the strategy it's that a So and traction getting of here. the fact you. good Thank indication we're

Suji Desilva

That’s Bill helpful. All right. Thanks, Great. Thanks Cesar.

Cesar Johnston

you. Thank

Operator

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

Cesar Johnston

Great. Thank you.

energy Energous we active in lead power need So to harvesting progress for continues removing cables. and IoT of batteries towards and wireless as emergence the the networks

in PowerBridge We in in resulting our which robust intellectual developing technologies property, continue novel this using and company XW a on announcement, leader power advanced innovate positions to transmitter quarter solutions. as solutions the the charging

opening It future the IoT has forward quarters progress key network number for the expect potential again. you believe lumpiness up network you quarter. proof-of-concept we that we harvesting IoT results. our emerging as team our we move power in over is active Finally, power indicator understand all company's the revenue look Energous progress a that which in grown important to of be and on is and stakeholders to wireless we members, to in markets, forward updating installations shareholders, past there Thank wireless and to the progress

Operator

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

disconnect. may now You

Energous (WATT) 10 May 232023 Q1 Earnings call transcript