WATT - Earnings call 3 2023 | Energous Corporation

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

Operator

Hello. Good day, and welcome to the Energous Corporation Third Quarter 2023 Financial Results. [Operator Instructions] I would now like to turn the call over to Craig MacPhail, Investor Relations. Please go ahead.

Craig MacPhail

Thank you, Jeremy, 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 changes by regard laws, herein disclaims updates the those statements contained any revisions as and or or undertaking Except circumstances. to with federal otherwise obligation elsewhere in to events, conditions reflect or required to release Energous expectations to publicly forward-looking

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

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

Cesar Johnston

joining XXXX welcome Craig. you and to Good Call. today, Conference Energous for the Quarter Thank afternoon. Thanks, Third

is Susan Interim me Chief Joining Kim-van today Officer. Financial our Dongen,

me market had short IoT execute with our company XXX-plus early we intellectual patent develop the regulatory at distance which by backed Energous the previous and a is when from products using years that strategy charging we portfolio. update. been a initiated XXXX we the the retargeted business first smart knowledge IoT-centric experience successfully reposition its to to and company property, by and the continues that built of power operation Let start in

customers smart costs across wires the freedom, security, sensor batteries enabling a for RF The allow power cloud-enabled IoT typically within These markets and placement new high-value environment. and tax, using mobility, new our wireless on installation networks. need by applications electronic strategy lower been Energous labels networks and removing focused has greater

followed of its is wireless for global does current high-volume network a application. phase, initiate customers Understanding can POV a volume the POCs This proof-of-concept, customer happen? Energous validation future of evaluation installation POC, revenue. our POV a our their indicator rollout important proof and and through by the of of and technology of technology technology or of So products. an then a these which is Energous Typically, purchase and power how in how the then is installation result adoption Energous implementation and addition customers phases timing new its of progressing customers with

quarter, for Last This the customers wireless QX we started XXXX, is the product we announced our customers. with based on quarter you reporting a update in why xXX across we multiple installations available PowerBridge powered the POC QX wireless market on today. POC POC different across markets product XXx and and installations growth. POCs world Yes, XXXX. the every Energous only number is since our X-watt on networking advanced on network certified of regulatory The PowerBridge

again Energous that growth believe the we interest indicators Let a quarters POC the best me mention that status. in revenue technology increased has future our potential is of in

by driven customer overcome QX believe cost and was value their and of bottlenecks. charging During of proposition interest this power wire-free accelerated. in wireless products that growing operational which a quarter, We XXXX, our this to them networks, appreciation help past the Energous

experience improved and As to network wireless our in gain technology the knowledge IoT markets, our power leverage businesses efficiency our we roll learning times. POC target by POC each we from are out to deployments the able system the of shorten installation installations continue have capabilities experience of to of deployment, and we

we to started in with QX QX have past XX XXXX QX reporting remind a and We steady the grew XX POCs through in XXXX, growth year. To POC from been XXXX. deployments XX, over X everyone,

markets multiple across to the we smart just Asia happy covering retail, smart home year. that represented and I'm POCs in XXx XX have a one Europe medical increase report industrial, Now across U.S., office, and

mention of I majority or like large for warehouses. additional note, industrial would an tracking to multiple our products that for customer As within digitizing retail the real-time trials asset are

tracking seen little been have companies have nowadays. and innovation our We efficiency useful, and have automation chains that these decades. While incumbent environments in in warehouses supply improvements they large-scale generated technologies believe recent need POCs logistics

online result, As a brands large customers. as our retail we're targeting suppliers and future

wireless-powered In networks positioned leader to chosen proprietary segments. strategy IoT execute as summary, the well within is Energous our smart our across

XX placed and POC XXXX. expectation determined past growth earnings target into call, year-to-year for rate as on XX% mentioned XXXX, growth conversion orders in customers purchase revenue dependent a the Our POCs of now XXXX is QX

will you next call. earnings our at update We

a Our X-watt with family ENXXXX advanced and devices. of both product supports and ENXXXX road PowerBridges ENXXXX, X-watt semiconductor map

Additionally, to the U.S., which in we the will move road seek as our watt open to evolve forward, technology. regulatory markets up wireless support our power we to in fixed future certified market map dramatically could

in within ecosystem partners system partners deployment and we're role an XX be more distribution IoT play with X with partnerships to the expected in closely partners, added power the X XXXX. technology wireless important Strategic working integrator and today, QX

cost real-time capable progress competing a discuss a you through secured dependency control front responsiveness for announced and applications. asset current logistics and central of tracking give recent range bypassing way and information bandwidth of let's we XXXX, on a limited partnership Veea improves full our customer In offloading cloud September connectivity infrastructure. Veea retail with this while to industrial, and Now real our product in that example. target simplifies inventory options

asset power applications. POC the and installation As towards computing the edge for part trial retail Innovation customer large to tracking partnership, products Energous a Lab time geared deliver Veea of the Veea combined AT&T wireless Mexico

customers this with to and new in enable working Veea continue add potential We field.

industrial low-power side with and This a developing in the and applications IoT demonstrated capabilities brought company for the is PowerBridge others. Energous In sensor new which in sensor the temperature our RF October, At SoC launched maintenance our InPlay wireless September. conference, sensors transmit the solution a conference in and X-watt communication beacon fields semiconductor and the humidity battery-free we fabless tax partnership among InPlay a and on companies XXX IoT attended the using wireless on Wiesbaden, low Germany. of key announced together low we sensor IoT, conference all energy receiver. IoT IoT technologies. previously was InPlay InPlay,

load Germany. leader, [ ], a global & pre which sensors Finally, asset Group Randon identification a security company from companies part logistics-related products, & Brunnen Randon Company, included Schmitz the digital part October, This effort logistics and a their part also and of German in with carrier wires Group, wireless is several expert and trial companies of were managing together firm. in U.S.-based management late a our using that GmbH, important mineral and the Cargobull a our water batteries company, GmbH a tracking Europe, several Ecobyte an trial tax trailers Company, products. The Randon company [ manufacturer Ecobyte companies application power Energous installed GmbH of POC this in the of Germany network and ]. real-time group, in semitrailers, brought important team Pooling customer, parent and our capabilities Identiv, German Gerolsteiner digitization RF bodies a demonstrating WBG critical AG, in truck

and application demonstrates XX technology of is And integrate using the capabilities asset across were trials digitized that a real-time and containers. pallets ability customers example system just of POC in trailers plastic keep trial ongoing and our we such us it about broader a allowed under as Energous to warehouses into one tracking for details for to most talk a to possible This important current logistics This prefer disclose. making our demonstrate detail. NDA to in

hopefully, competitiveness the example a do an However, application, type POC with. you and customers appreciation of we business this gives of our

been as and we executing on company smart progress significant and has making reposition applications. retarget IoT Energous summarize, the the To

new We wireless are power markets. network working towards IoT enabling smart

that pleased in $XXX,XXX side, of the financial recognized of XXXX, prior a the QX revenue am representing on approximately I over we Finally, XX% report growth quarter. to

we OpEx QX resulted our strategy. XXXX and further we reduction our company and to costs the in XX% in as Additionally, OpEx non-GAAP efficiency to continue improvements align tightly, progress to our compared making a in This expenses. manage

will now to call turn Susan. the I over

Susan Kim-van Dongen

quarter the The smart proof-of-concept of XXXX we XXXX XXXX, second partner revenue Thank XXXX, of as additional of third financial third higher compared declined prior to quarter-over-quarter the by bulk of you, in increase approximately third release XX. from The was revenue our Cesar. to announcing by as results into a Earlier a the sale the this XX%. Cesar, Revenue markets. the onetime fiscal customers September mostly quarter quarter. mentioned press quarter our for by QX. the is $XXX,XXX driven new and the we ended issued third earnings today, moved IoT-centric which in to quarter due XX% quarter increase the to Compared operating and was was

of XXXX. of of For compared as to realized decrease partner, prior the of period decrease a due the to mentioned compared net decrease QX, adjustments. QX was achieved The products value is decrease a to and XX% significant compared XXXX, of first of and in XXXX. sale a of decrease we X the to period revenues year Cost $XX,XXX decrease $XX,XXX $XXX,XXX primarily in our a from higher-cost earlier, revenue the to in prior months the same $XXX,XXX, in

the were expenses, compared cost quarter, prior and million For to a revenue million, the the third total $X $X.X include of costs GAAP which decrease quarter.

QX XXXX. in a of and $XXX,XXX in reduction $XXX,XXX quarter. R&D cost was and expense sales decrease a QX ] G&A increase a recorded severance Aforementioned decrease marketing This in in to a decrease of expenses in in revenue, by $XXX,XXX $XXX,XXX offset we to prior the compared [ compared expenses,

R&D G&A no expenses, was with expenses. in expenses in a compared of by expense due quarter, decrease reduction This to $XXX,XXX in in earlier XXXX. in QX in mentioned primarily by $XXX,XXX QX decreased and a Total severance revenue, and QX sales reduction $XXX,XXX a approximately million cost The in XXXX. reduction significant marketing, offset cost severance was expense of GAAP $XXX,XXX reduction the the $X.X a to

loss All ] provided XXX by give to Looking XXXX. X.X the an for reverse first was cost on August decreased to approximately months and per a per [ share stock at XXXX. effective basis the share quarter compared outstanding. year, XX.X% of loss months expenses of average the weighted Net numbers shares common total million approximately our on and or effect became X on this GAAP third split $X.XX XX, that first on have million of stock $X.X X the call share the

continued over able which million XX% cash containment one decrease approximately improvement the ago, to year quarterly cash operational approximately cash XXXX. were improving and efficiencies, burns to efforts -- our million $X.X From we year. cost is $X.X last Compared burn to QX rate our and over burn of for

The loss net million a of $X of weighted per outstanding on $X.XX or [ under loss on to $X average XXXX, net shares of loss share million ] million and the share share weighted average shares per XXXX. QX XX.X the or a due or ATM compares the of loss million Our count $X.XX outstanding. at-the-market offering QX X.X offering, in in the shares completed public facility sale was QX year-over-year to mainly increase

quarter the fourth of we million of an added of raised the through cash shares. In XXXX $X.X additional quarter third XXX,XXX XXXX, and

access operations on continued in our our vertical trimming net trend resulted expenses has positive aligning a Our IoT with declining year-over-year losses. focus strategy in and

$XXX,XXX especially information Let company numbers for for stage, me compensation, believe $XX,XXX $X.X non-GAAP our at quarter stock conjunction give investors, exclude QX comparison $XXX,XXX non-GAAP a our million. severance a depreciation information. view expense and of GAAP results a from as useful expenses provides you costs the of And in non-GAAP of now with approximately when reviewed amortization, we third our for ] and GAAP [

approximately net of $X expenses cost than $XXX,XXX approximately adjusted and and to non-GAAP and result, This $X.X in total million non-GAAP costs is less of totaled second QX XXXX. $X.X quarter a expenses compared million As less the of XXXX million.

$XXX,XXX an a was QX of share, compared fair loss QX decrease $X or $X.XX a loss decrease the $XXX,XXX per quarter value for prior to loss million which net adjustment includes income our QX. for net non-GAAP compared for This in non-GAAP Our million to and adjustment XXXX. of is warrant approximately other in $X.X

of with in million cash QX liability, $XX.X On our other for ended sheet, and in XXXX. warrant we income the the accounted and debt-free. remain quarter We as of value equivalents, $XXX,XXX was still realized approximately fair which reduction balance we cash in

our and GAAP our operating as to costs for find with to expect our in year expenses financial trend downwards strategy. we cash and continue close, savings align we to operations non-GAAP To full expenses market

give the call We'll the operator back question-and-answer to now for session.

Operator

question And line Instructions] from of [Operator Capital. from first our Suji comes the Desilva ROTH

Sujeeva De Silva

per many POCs, just X more multiple X per... Or it the Cesar, is curious the progress is that customers the it of how the base per seeing Congrats on Are roughly of you during across XX, Inc.? -- POCs. POCs customer? this

Cesar Johnston

X in where larger this not mean to majority No, in say or have a there's X general, customers forget it's I those hello. than Suji, per at the single. time might are couple of actually -- point I so. But didn't

Sujeeva De Silva

then POCs, I are And POCs closest markets the applications. the to which whole probably know cover amongst end different they bunch of a ramp.

do of you ones to sort volume? which curious, So are think closest

Cesar Johnston

Yes.

tracking. that when window I we possibilities a gave a quarter quarter, actually one of example about we I'm real-time was logistics of thought report of on talked gave last this, of I visibility to important. logistics asset -- I and and asset the as very and that So POCs good the a happy taste tracking this real-time everyone

warehousing it applications that number give have of like our I noticed POC to because ever, able applications, visibility on to say for of customers, it's you German do I'm that. NDAs, as the the audience customers plenty right we're asset POCs lines, at if and we're share what a first So that talk that tracking now. least about seeing those will And be we time tag along hard to not to to always RF cover trying is

I'm our are Europe actually So we're companies us with to and very ones to and are companies names happy progress. for for those thankful to to allow well-known those in [ that stay ] Ecobyte and all Germany large they the and companies allowing us publicize. that very share

Sujeeva De Silva

mechanics causes question sales last -- or to that a preparing you the that had my worked partner a think on there? ramp was the And and I mechanics of happen. bulk I is what wit, then that the sale. Is those was for on a really there Okay. curious you what bulk kind just those are of

Cesar Johnston

Yes.

Smart we're getting unusual It's only is technology IoT remember, years. as we ramp to early fast closer a for this you are. since than to focused X if strategy we've the been less So on been XXXX. years. Certainly, X to get It as

very certification very, happy so I'm So products to see on. to and see

investment, our see, X part technology that, XX to time. have with partner growing I we as a can to IoT to work of for that's if allow actually and Typically, put it get companies was So new that early think a it the to great technology of together because this way, be X, us that couple -- as wasn't number year, there, over last a onetime to basically point. will don't investment eval just get a and you which, a investment possible market, this on ways out our years partners a no of we kits have POCs take brand in by

with what so far. we're So very happy we very, see

Operator

question next from of Thalmann. Jon our And comes line Hickman from the Ladenburg

Jon Hickman

guidance for wondering still revenues? was hold your in further this year I Cesar, if you to year-over-year going were growth

Cesar Johnston

Yes.

final into still and looking But converted next to will mentioned that. update XX on be the POCs XXXX. we'll forward call, quarter. moving So quarter, give of next yes. the those conversion into ratio able -- before now, been you what's still a said right those update on we with convert I I are as And the We're

Jon Hickman

math that Is of aligned like need my with make happen. that revenues math? says So $XXX,XXX that you'll your to

Cesar Johnston

into look of really basically not it POCs would time Otherwise, way. the at definitely, that. that the I and mean, have when the at we looking guided this, math we started Our growth considers

Operator

at to remarks. further closing back We this over I'll time. for have questions turn the team at Energous no it

Cesar Johnston

see evidence our this wireless of by power showing the Thank [Technical results fact is is value our offered Difficulty]. and smart promising very Energy's you. networks Great. the customers IoT IoT and strategy

Operator

we I there. in briefly. hear just if you can't you, still you're believe came Still lost very

Cesar Johnston

Can you hear us now?

Operator

Yes, can. I

Cesar Johnston

sorry, was not Yes, properly. here but I'm behaving Polycom

Okay.

as that POC type talking Ecobyte very promising the our of logistics complexity glad trial networks XXXX. our shows asset and we XX work into partnership applications So offered Energous' example real-time and quarter, the quarter by are which provides an important installations particular installation third with, of type customers have the calls. earnings see this about the in announce Smart customers visibility to IoT importance wireless the strategy ], showing as is by with value that evident and our we of Of IoT results been we recent [ of believe we that which power

We continue team we Energous shareholders, stakeholders to these as our quarter. while focus Thank all, to updating you and OpEx members, closely again forward look on revenue company's trials increasing spend. our our POC progress on next evolve the and you managing

Operator

today's conference This you attending. for call. concludes Thank

Energous (WATT) 9 Nov 232023 Q3 Earnings call transcript