SNES - Earnings call transcript Q1 2022

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

Operator

Good afternoon, and welcome to the SenesTech Reports First Quarter Fiscal Year 2022 Financial Results. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note that this event is being recorded. I would now like to turn the conference over to Robert Blum with Lytham Partners. sir. ahead, go Please

Robert Blum

you us Cole. today. Thank all thank for joining very right. And much, you All

session. XX, for on As of the quarter Siegel, Chesterman, for will March the XXXX we mentioned, the today's financial With a Cole to Officer; the Financial open results prepared the discuss company's Chief company's period remarks, Mr. Mr. Chief call conclusion today, the SenesTech’s question-and-answer Executive first XXXX. call Ken us Tom ended At Officer.

of we remarks, made record, the during Before prepared statements such Exchange the meaning amended, Section Act following conference harbor management Litigation the SenesTech XXXX as within of the statements of with forward-looking provisions the submit Securities for forward-looking of Securities to Securities XXXX of this Section Act XXA begin we of of the may of and Act statements. by the of contain Reform XXXX. made the as are pursuant amended Private safe call Statements course the team XXE and

risks Listeners statements All future such call the only made date which the filings risks expectations, projected other words and during as of identified cautioned generally this draft, could Securities are actual risks conference of result strategies our those The speak on are from the and plans, forward-looking or a future expected, as information, planned, and receipt contained results or or such factors future to multitude statements or from results assumptions otherwise. they materially a are or statements and of may by materially result Commission. update Exchange in statements various anticipates, to uncertainties cause that with obligation eventually to projected. estimates occurrence the the and events on forward-looking including describe of plan that should, statements, as differ publicly may, management's of that differ date. results circumstances, events those whether preceded the does forward-looking the will of any such new in forward-looking are projected and undertake future, company as not the any as subject statements based or are in Forward-looking of

me that with over please call let said, Siegel. turn to the So proceed. Ken Ken,

Ken Siegel

Good of thank Robert. Thanks afternoon. all for you us And joining today.

left in saw XXXX you with release, year. As product press quarter the last quarter which started off from of another we we more than where XXXX the sales, doubled record same in

since those as had quarters annual or Xx We greater took nine at eight have consecutive I CEO. of over of now revenue quarterly growth,

trends get the in Importantly, occurring, I'll into to February. in the sales of show of continued ramp the with number monthly sequential But There acceleration think the it month we sales enhanced for to growth business this e-commerce in than why more is XX% growth which say, up first a we momentarily. March, quarter continuation think compared of are our recent trends. well needless bodes reasons a of

our calling Elevate, month received number with to our conference generally our shipping and are commercialization discussed few defining agriculture. a the during spend will approval or the which to Elevate novel this from particularly into launch of commercial a of development excited of announce talking EPA today Bait innovation through key recently what a be had the where will penetration I later We of in moment System accelerate formal other the the The markets, our the approach. begin key introduction ContraPest week. we the us system. is Elevate next we're call call believe moments launch enables I'll March

to capability this changer us market. Elevate has a for believe game the I As be in

into dive of those highlights new specifics. and general a strong product let's acceleration introductions, with few sales So more

quarter SenesTech. compared the This product ago for to record was sales new quarter the for XX%. up XXX% quarterly up first sales sequentially a As year I by and were mentioned,

up We compared active helped during ramp and XXX% compared customer efforts drive end continue to Operation increase Rat to campaign, to XXXX, Race customers to significantly year acquisition a QX QX XX% numbers. our our in led XXXX the up which sequentially has by

very in the are acquisition of launch. As to cycle the costs driving we lifetime of maturation value stated increasing are this approach taking we past, our marketing our analytical Considering a very we our and customer are ensure the efforts early we still in product to customers. down

continued and future. see to some the in that expect approach, leverage data press to sales also significant our the significant making improvements overall customers website. some of coverage including both has We're marketing to points our in We driven of these pickup

we March, we birth a California. were saw in the that control increase two tick state of could Similarly, while in in And an in Francisco early indicator an through also are combat coverage to the business were ago orders demand. due believe there. of spike rat The pickups immediate daily we in they weeks Maine an instance, the article in we in region. rodent e-commerce e-commerce pull saw our For Vanguard Northern And saw featured received and we nice news San the infestations, from Chronicle the of up growing benefits ContraPest. highlighted press the titled annoying encouraging,

and rate. higher when approach and approach distributors. customer geographic the marketing encouraging. spend by scope Generally digital a you PMPs drive of the expanding see thus to and are very compared taken We're results As we've in Initial end nationally you bounce far. our the also awareness campaign, a user increase engagement purchases begins to regional decrease

As customers. to you your your find dial targeting in

our through recently generating sales. indicated shopping on broader now, We're just have to segment targeting Instagram went have on a learn our associations originally us experience, now Customers base click and inside captive customer and the the feel pages. adding social a we're customers a a launching food processing but our in be experience, first our visibility And better industry-specific the to web. can aesthetics. now market use interest agricultural a as them that we're site anticipated also increasing trade that of storage so To is further job and begin we our search new strong contrapeststore.com sign our like our areas scroll later than successful new have e-commerce e-commerce remain broader relevant restricted the but multiple Further clearly and Also, to digital customer we exposure with can Elevate, them rod of large month, flat, front. scale search. of California. and launching single footprint contrapeststore.com, keeping control on ContraPest March, to to PMPs. relying through to live is with with product a platform, look additional pest enhance which in we in has launch publications, attractive a great campaign called assisted The popup we'll as that's done team time on may not shop space. that for ordering well rather the at with genocide a is Ours we match through buy wide added targeted through than the the with a And and now this versus

chicks subscription March the three of new gain build churn. designed customer years. Zoo the control a this population believe sanctuaries and help ContraPest strong off more number the of momentum, by enable of record reproduced zoos quarter increasingly goals continue has to To in in on first we month new and resulting The as was over important for birds on. we of of for and zoos with more to specifically for become hadn't in to we vertical launched are continue cost we this a And that business a to revenue as monthly we their going around and standpoint, hit April program particular credited eye ContraPest the XX% initial very their customers, forward our a One adoption part a deployment. X, of target of use As minimal vertical subscriptions. finally will well them space, a metric see to designed contract From sales. the market sanctuaries, birth influential with recent aviary, in close a accounted rat Miami this and to which keeping a number about of

secondary non-target increasingly addressing segment both as effectiveness poisons become and from in infestation concern exposure types a of has risk among I've of within rat and believe the to or ContraPest As these to the the we influencers non-target or wildlife lessened reside. for animals. past, animals this being recognized ideal in due growing stated environments predatory concerns I are

starting to begin on touched growth I moment a As to see we're also accelerate. PMP ago,

of our XX% PMPs the accounted During about for quarter sales.

campaigns PMPs demand user a accounts as as from have who solution. Our as customers, end well ContraPest awareness generating pull are through and are challenging interest looking for from

We taking to grain have areas a and product residential name rescue just zoos, facilities customers new correctional facilities, facilities, few. to our animal

new interest As challenged. pressure for new tool anticipating the begins eager fight. to the battling markets agricultural expanding PMPs roof grow, has are second-generation PMPs products anticoagulants in Elevate we're seeing And go-to the from ship who poultry in for as normal on inquiries and continues next from as also rats, also use are week. we're looking sales to a solutions of their generated product being the

will the this call, that verified I world on the seeing are These on media ContraPest next growing largest major they our sales coverage and We key number on of marketing PMPs, them Clearly bears government situations. in having that them interest were positive since media real believe recognizing demonstrations were clustering to believe locations. effect. are government the and deployments in bit we've it old as first during success previously in with growing deployments some mentioned now adoption customers As results a a product more I in to the the the quarter are and their bit players of we're around various cities, I announced few solutions. including March of March, counties touched committed repeating through efforts. months. but for and a now lead reports of working And we're various more front, events, the a and this

additional in approximately paying Also of during to first product in where request work following around inquiries Newton, to hard information. is for these Massachusetts we For successful use Hartford, have governmental Columbus, County England number where proposal. now continuing reaching customers. The of occurring recent were overall Los the the other control we're fertility quarter Francisco, elsewhere, Angeles California-based growing deployments Ohio, and communities same Connecticut, and and one convert into a specify for out entities and New San our instance, sales XX% of the sales,

in for continue ContraPest away RFPs. Ecosystem's Protection as future an will move the California's we Given pursuant control EPA this in available from I've this the to only expect past in further female rats, fertility excellent government male anticoagulants the position market. the registered second-generation in And of as puts penetration product Act, for trend and stated

call just explain Before bit system the the we're I financials for in – over how the expand let Tom more me commercialization turn this and upon new to Elevate a let efforts approaching just to detail, the review me product.

demonstrates rats agricultural locations. efficacy While option above where this have of ContraPest, and food way ground accessible requesting target of station baiting they the system the applications to In rats. other The particularly And economic Elevate. out roof rafters we're excited the et the suspended feedback, live Elevate people, developed our often stores, been value of customers specifically our in easily to an experience but about additional created we to control use is and we response by novel livestock, of bait pets, with rats, cetera.

designed the and traditional And new difficulty preparation for prove world make expressly of simply information system. There note they time is traditional market deployment of of data in that deploying such it servicing is the boxes to typically the real customers should April and to bottles and ContraPest, reducing drop informed its within like critical Elevate above the to bait easy we've pesticides rats. control and frequent with accelerate for Elevate its in of We other of in for control It's permits it no system. conducted that bait revolutionary adoption effective replacement decisions uniqueness in station X the for of other filed products. in the its necessary In Elevate, system effectiveness. industry cost. on EPA the trials rodenticides the recognition ground verticals other the in design discussed and the for Given utilized is is we providing of as deliver it is ultimately product the industry. system inhabit. patent both extensive both the purchasing the pest effectiveness This potential market ounce important aid of roof submission The to for suspended study protection areas and

As quarter's bit of submissions. call At the is is we Elevate the the states growth registrations. I little to state end ContraPest’s with the for approval, allows California of of in states, stated Elevate on a requiring following explosive review XX individual tool and remaining the needed last district additional believe and the time in now EPA’s critical that we potentially agricultural segment. day, Columbia Oregon available the

updates product the and We progress be on product for next shipping the will our to forward look call. providing this on week, next I

system, and necessary continuation regulatory coupled recent financials. ContraPest, introduction Elevate growth me excuse believe off have its the pest of the with accelerate requirements, me, to on right place even in is with sales, to social for for let product adoption environmental to with the the and to over a by awareness quarterly elements as forward growth strong XXXX. market I information And trends. growing in with is quarters based for summarize more. well ContraPest And significant record potential we efficacy, while the the come, trends to which the highlighted we we're of as in to start it control turn on Tom that, look So

Tom Chesterman

Thank you, Ken.

press section. to we in our tomorrow. available expect file release reminder Further on website relations to the As investor XX-Q a the our our investors, is

first of of will $XX,XXX of quarter revenue more revenue. – XXXX, approximately quarter representing of of even Revenue for consecutive increase We XX% first to compared an of first approximately total for we Gross or eight and touch XX% the will or to quarters the or high of total approximately the with continue points This ninth quarter trend System. was launch profit this the doubling $XX,XXX the Bait the with the I a the of So some will right XXX%. growth of believe on quarter accelerate Elevate compared revenue XXXX. just now. of was in quarter $XX,XXX first in $XXX,XXX approximately those is

operating Our quarter manufacturing million for with on continues for of progress year. was loss, last quarter $X.X margins of is first first year. non-GAAP for was seek million compared quarter which $X.X XX%. performance compared we of of the to bring net $X quarter first the loss a a of gross Adjusted the measure the to EBITDA below million last million as $X.X loss cost Net in the

you We – for we the SEC specific continuing year. That carefully and main mentioned continued we In shelf at quarter was for EBITDA quarter, other the was S-X incentives provision the open approximately this sufficient having over to last would that, aspects We effectiveness end offering capacity, growth $X.X earlier to questions. without an me about our offer issue example, With and generation, the although the for for balancing a adjusted monitor for once. across and we second XXXX be revenue intent in please rest our to interests. fuel the strategy Cole, need expect new is over which year. up? open programs three end the instead discipline of an could shareholder shares as Cash control be cost with sell register That invest efficacy therefore selective have the of renewal filed the pricing of should an of board. capital the said, year it call the our of restructured the for cash are period. million. the let S-X business. a our at expired issue to to current approximately approximately at pace. portions at A loss But shelf With have selectively to resources of continue previously, to our raises, of is strict

Operator

first come ahead. from [Operator go Tucker All with will Above Please question Instructions] Our Andersen today Advisors.

Tucker Andersen

afternoon. Good

Tom Chesterman

Good afternoon.

Tucker Andersen

Hi. Two questions.

you've on because excited both that. progress you, congratulations you on more on like sales made the front about are I'm the and Elevate if I success important First, –

continue to Are there just If processes or we continuing to accelerate. more you be do capacity there have production fortunate and needs you and But inventory, pace seem I whether this if we're don't what that's amount ramp for constraints to are perhaps hurt wondering inventory to successful finished the in was all And and done. any that even you just chain whether there would your at on the encounter. would prospect? noticed sales if where hope a be fair but a any I people. know be I goods supply world constraints be would of

Ken Siegel

it you don't take why up rolls to all you. that, since Tom,

Tom Chesterman

have Sure. to have quite stockpile we materials Yes, hard are raw long example. so stockpiling so a for a we of that are actives, two sufficient source quickly,

The chain meet we traditional necessary meet be surge Bait tank carefully the it we for so demand, structured Elevate pretty whether have a the supply that or that the ContraPest demand, System. to other things are can for in

So at chain. the any this we point don't really see on constraints supply

Tucker Andersen

fantastic. Great,

in are in question less other the final available. that your is cash burn a comments versus The touched forgiving that you a the for funding much much And prices, as is incredibly a these issuance want current unprofitable. period obviously you clearly stockholders. to while are time, keep while at common to reasonable And of you be remain who dilutive understand, a market, they – we're you cash different companies sufficient cash of growth, general and would have which question upon you is stock of And cushion.

other that balance of thinking financing and if wondering thing. these factors about you're sort just methods I'm of how are you all there So and

Ken Siegel

to right, not of we an to accessing through money moves. the good said, opportunistically do any the And That certainly have why place we stock about at raising certainly don't that That's we a allows capital now need have want move be to and the the more do you're absolutely think to SX careful and very I have year. that to. opportunistically to as we've very us vigilant be than cash supply markets. we immediately, these in got prices end we Well,

times exercising We of either been finding and people warrants at the inducing successful also at we've number in have the or a warrants year. fairly their past during

So but is also is would be for that investors. concern overhang a area, lot dilutive, the which would certainly, warrant another it be a of

there's issue an perhaps much So as of not that. with

Tucker Andersen

Yes. Congratulations the hope and next get on I with to say, your to come on maybe your progress. luck And hello. I by Good especially your continued progress, time Elevate. area

Ken Siegel

you be definitely Thank much, posted. keeping you

Operator

appears are it there further no questions. And

conclude our the will this for any turn to I'd management back So conference like remarks. to closing over question-and-answer session.

Ken Siegel

the Thanks more talking revenue near quarter we – to Great. that for about and that to Cole. Again, said, think hopefully we as ramp come future. seen, at couple for to us, in of quarters, as we've both you've a good continue Tom the there's been I

are But as we in again, shipping other soon things starts it you your if next of all look that we before. not attention. the are to week. bunch And quarter, you next in that I as and to talking ready thank for have to updating pipeline forward can. as look Again, well on materials The We to Elevate. forward excited as extraordinarily about a go We're supply.

Operator

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

time. at your lines this disconnect You may now

SenesTech (SNES) 13 May 222022 Q1 Earnings call transcript