Earnings call transcript Q4 2022

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

Operator

Good afternoon and welcome to the SenesTech, Incorporated Fourth Quarter and Fiscal Year 2022 Financial Results Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Robert Blum with Lytham Partners. Please go ahead.

Robert Blum

Thank you very much, Gary, and thank you all for joining us today to discuss SenesTech's fourth quarter and fiscal year 2022 financial results for the period ended December 31, 2022.

call and Joel Chief Tom the Chief the Financial on Officer; Executive Chesterman, us today Fruendt, are company's Officer. With the company's open question-and-answer conclusion call the of prepared we At today's for session. will a remarks, the

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

or Forward-looking are that the events anticipates, results Commission. future other plans, future by that or to risks such or as circumstances, statements forward-looking differ projected are Exchange planned, from result in identified could multitude various as risks may a our and projected from the risks eventually future, draft, and are materially expectations, or should, words those actual uncertainties of cause strategies cautioned will generally the that plan in and such statements, Listeners Securities forward-looking a differ or statements in preceded the and with those of results may, including subject to materially expected, statements factors describe results projected. filings

assumptions forward-looking such to undertake company otherwise. and date as the obligation are new the publicly not this and speak future receipt result management's of the as whether were call of only any information, update made conference which All contained on of does in any the date. as of occurrence or estimates during statements events forward-looking statements The of based they

me Chief Joel, proceed. Fruendt, let Executive call over turn please said, that SenesTech. Officer, With the to Joel

Joel Fruendt

us joining you all Good everyone. today. for afternoon, Thank

While I to the honored third quarter time. for on call, a I chance with was speak all first conference and today excited get the am you briefly introduced to really

about was the to as take Following and launch need product my breaking and a I decisive of XXXX, period, XX% ContraPest Elevate ago unique innovative in key progress next verticals highlighted product ContraPest CEO momentum considerable the this and deployed ago appointment market off off now, made as company line to level. of extension have from X sales, $X the build taken by months to in System. the steps just during Bait the to million quick up number We build the year

we how do So do that?

of the leading First, sale commercializing that with ContraPest extensive is and products of is and in leadership chemical gained industries, anchored the control service in natural Developing EPA-registered large products, my a experience. where vector commercialization development sales and and management executive I of manufacturing extension experience pest and organizations. expertise those and

the of pests we I management right Integrated one control have to drivers provide Management a to that and ContraPest to a fits sustainable, pest an in attracted of look solutions Pest always stand-alone animal SenesTech and for vector that solution me with It key passion. commitment effective challenges. or to exciting, as in Further, passion sustainable had program. Clearly, was

the As need adoption we progress I accelerate year, tremendous to said at but the last made was beginning, curve. steepen and

customers to the been the past during efforts refocusing putting capabilities the acquisition redeployment direct have the surge first in to customer of of enhance closer company's to the and while reps initiative acceptance from benefit undergone The ContraPest has we also sales year. our

that a key as in process. Officer Revenue Chief a named have We step

by Last to delivers organization growth year's Eastern within of leadership deployed and largely customers, Western geography both the in our field reps, U.S. half speaks that driven product to by expanded having effective each an sales existing have the value. We X revenue which with was

customer in expanded cycle on ultimately forward, tightening strong focus regional of through acquisition the industry a an get front knowledge, revenue. placing commercial and we decision-makers, depths driving team are sales Going new of and vertical new

enhancing the customer by also awareness Elevate education. at we options, to why important. are product and extremely rats. options are option introduced specifically We experience targeted increasing roof the last year: system That's an Product provide

unique is have the large infestation needs, a That's tank bait program, most starting size customer addressing to maintenance. choose also whether why a different or can introduced appropriate that that it sizes is so a we their

bait formats are development stations. We also are station that others well but bait We exploring into delivery work in now, offer the different systems X stage.

needs Choices the all be marketing And for announcing that customers. new weeks, the is will choices tagline. coming in your fit we

are professional pest managers. We and as customer and of websites website including chatbots accelerate addition our for a well, the to acquisition launched improvements making on to dedicated have education website

and seek launching who customers results be we also it The of cost-effective We'll convenient for customers for a in subscription better on make can XX-month as e-commerce order are early promising as to initiatives. all prepaid these value.

XXX States, Los XX the Zoo and instance, of using their zoos, that stations. part plan we Los with city in the as is XXXX, December Overall, are have X Angeles at now XX a ContraPest. United zoos Angeles ordered the For deployment the top now deployed had including expected of to of bait announced ContraPest in IPM broadly exceed program

own X being things ultimate all another and sanctuaries the Besides target the in top their in expect are a XX to close animals. influencers of right, quarter. market zoos We this

to segment for continues a focus this be us. So

most county it intended to Los county the recently We are deployment, Clara. throughout county, the Clara Santa recently secured want most achieving little more I provide here. major initial After Santa announced also to success that the of government to having broadly expand deployment initial detail Gatos. a of with contracts with agencies,

for recommending their ContraPest monitoring countywide, Santa In assure to to concluded County appropriate deployment efficacy, intensive instance, they started and their own was included and are deployment After their they this peers. safety. Clara review, sustainability and a program that it

bans with used all occurring the under of of to XXXX, the Protection use driven anticoagulant the continues many in poisons sales second-generation recently product X/X tailwinds Ecosystems Act California state commonly which implemented by circumstances. nearly from lead of Overall, geographically

As launch their Elevate market of mentioned rafters the growth barns, and the recent customers meet reside the agricultural manufacturing to granaries expected and to drive of better especially including key roof facilities. rats verticals, in in system addressing briefly, needs ground, is with above that of storage

be sales flu, United the across during States. fourth the or in by the which poultry continue poultry hindered Similar of the facilities the operators outbreak to avian to bird influenza third impacted quarter, has quarter

tremendous we this addressable As provide this will opportunity. believe with subsides, market us a

XXXX, ContraPest restrictive ContraPest approved Department control of and companies no Environmental removing the paperwork. it State general in and Conservation York as restricted-use expands handling use, application ContraPest. pest specialty recently, from development February of New the in longer important requires New for dramatically label York This eliminates licensed market for Another pesticide by

York New using becomes the general-use the under incidence-free label, to D.C. validating years RUP the and and now major effective ContraPest remove U.S. of XXth label territories from Washington, ContraPest state and joins experience.

is in newly under State still the tools strategies czar overhaul rat rat of control their York New named for position. use evaluating

control plan. New as of IPM part will to We of new a that part City are confident York that population are and look their evaluation major

we EPA. quite on approved and of reality intent it the week, triptolide, The the the have on we news place development letter just active TriptoBIO, been one ingredients SenesTech and confirmed that be triptolide And have company, working been of has in for is reports with biosynthetic TriptoBIO have biosynthetic Danish to ContraPest. working with of the by development, for time various this collaboratively we'll in a its some working the

partnership, keep and Europe biosynthetic in China, about with benefits triptolide our ContraPest source. ContraPest. we'll highlighted domestically us the of Two, derived in to biosynthetic brings current biosynthetic advantages ContraPest greatly continued and this price and availability and as its triptolide as sustainability apprised our a of triptolide. source expensive expand is look efficacy of well and forward We of less from X very the biosynthetic production paired perspective, much One, consistent more production press lower advances typically purification, Recent advancements. typically to of allowing you has and than is their the botanically botanical From some market distinct to of our internationally. our quality

With Tom the review to Tom? turn financials. me let to overview, it over that

Tom Chesterman

you, Thank Joel.

my our investors, touch welcome to to A have press Relations now. is me of section. the to some shortly, points on and right add I'll excitement join Let you just on reminder so SenesTech. at our the expect the Further, available file here the XX-K release Investor team our high we in website

XX%. million XXXX. were Revenue $XXX,XXX to during revenue, exclude XXXX compared which Product grant sales, $X up was in

which sales, year And that the During quarter, exclude approximately an up XXXX ago increase approximately were of was to revenue, in year in fourth $XX,XXX Again, compared please approximately period XX%. revenue. product grant the $XXX,XXX ago period, had grant note the XX%. revenue $XXX,XXX

a and we to acting our the even million gratifying. particularly well, excellent for and to The are as accelerate current Xx, has Xx the performance but $X been rate first milestone is trajectory start-up, or That see as it minimum any growth is growth more.

of the which the performance up the XX% year management during XXXX quarter within both and during product as growth zoos, company's continued sanctuaries than traction which strong increased e-commerce approximately animal quarter. the sales pest as Sales made XXX% well more professionals, in platform, and fourth by led fourth

our initial slowed by flu efforts bird poultry. this focused sector the into of sales on The significantly in was much avian as agriculture were

of protein While to still grain also the recover, many resources we to waiting have for production. now moved our poultry market and

we to We expect have fruit begin and this that seen continue. in quarter, to it bear

total XXXX, EBITDA at was QX was fourth of to to million Adjusted a revenue the of a XXXX, $XXX,XXX measure XXXX. loss or non-GAAP of at compared was quarter, $X.X Gross million Net profit loss, in compared was million operating million net compared with XX% XXXX. approximately million. in $X.X And performance the million XXXX. revenue approximately cash adjusted end of XXXX XX% finally, during Again, and loss during for XXXX. $X.X was for $X.X compared EBITDA XXXX $X.X of in looking to December is $X.X which million total $X.X of loss

expect the capital a we be we XXXX. have so, on do registration markets To shelf accessing in to Now opportunistic to file financing. allow do

us expense warrants that year have to plans for will exercised also in this revenue should and along year. if execute be with this $X tools, We beyond. not our careful expire These sufficient growth and management, million

back With any your to that, let me questions. you, then we'll and it closing take for Joel, over Joel? turn remarks,

Joel Fruendt

Tom. Thanks,

customer control validation effective. works say pest and control, all every populations, me ContraPest and more and management is ContraPest that day, sustainable effective, Let use. studies Academic as population agree: feedback more requires to PM just to there field studies, of pest making successful easy

tremendous with to swift the future actions expand adoption commercialization optimism. look of significantly side taken to to have forward efforts We align our and the

over With back let for any me that, questions. turn it the to operator

Operator

[Operator Cast question with from is Fisher Instructions] first Our Avi Long Advisors.

Avi Fisher

With and in the how you're ringing because for the safe York Park if ask being way change notably any New amenable Central this product birds And these in I have City? going general-use is et York New label and that I state, co-ops to use could targeting cetera. you it's to wonder wanting them. in open I sense Park, because all envision of to to the marketing, Central

Joel Fruendt

that We Absolutely. have don't other to certifications as open for up to the now those is on because in of general country, use. and it believe to the the restricted we areas use, us credentials that the really simply rely have the market going has

directed a a able been at York New of have specifically in only marketing New lot we've is the been there's City we not things York because whole agriculture of tap that campaign to business So state not the that there. but into in

and off, already feedback good really some we're kicked has campaign that from seeing it. So

Avi Fisher

not So the within point, on focusing, the at space, city changing ag space? this you're residential so York, much New on primarily

Joel Fruendt

We're And And them residential New business giving no. able that forget in need out is New on But I was there. force that in our mentioning a to HOAs. that using product. and on going the just York No, that we there's do. ag York focusing addition, decision markets the people agriculture in City course, we're New full one York with City been and haven't biggest forward everything yes, make and they to order of our of

Avi Fisher

timing what on any with New about City evaluation hear have the them? rat you'll this when -- you Any York the And expectation from do of czar?

Joel Fruendt

country longer report on. a other really were used that know of about period inquiring time. we the it can that has they of We been in Nothing ContraPest do areas where for

So we on to are something forward. them waiting move how hear from to

Avi Fisher

They directly in of and I personally, find the the think an are that ring think in there's there. to co-ops audience and think the marketing opportunity a power park. brokers -- homes you'll I I city, lot many flex of

And XXXX like it -- your event. not can flexibility them? want how how commentary you And on just But in just start is soon TriptoBIO, this this from I give sourcing on confirm, much sounded finally, is it to a price? you does

Joel Fruendt

do it to at of by the with EPA we're of registration. cost confident able we're product. a lower And as we There's 'XX a legwork goods our to using be lot look to it. But going that

Avi Fisher

much Can you sort say? or of estimate soon how too to

Joel Fruendt

just It's right but a it do a wouldn't There's say want We small soon it number are percentage. substantial. to that play, this things will now. to be were of if in just

Operator

remarks. closing to questions, the the Showing conference Instructions] turn to back this no further [Operator Fruendt would I session. any like over Joel concludes for question-and-answer

Joel Fruendt

That's and Tom, have being Thank here all listening. from you all anything I you? for for questions now. and right for today

Tom Chesterman

for next quarter. to We'll Thank nothing very No, all you you talk me. much.

Operator

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

disconnect. may now You

SenesTech (SNES) 16 Mar 232022 Q4 Earnings call transcript