Earnings call transcript Q2 2023

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Operator

Good afternoon, everyone and welcome to the SenesTech, Inc. Reports Second Quarter Fiscal Year 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 questions. [Operator Instructions] Please note that today's event is being recorded.

like Lytham the Partners. I'd Robert over this, with Blum, at to floor turn to And Sir, go please ahead.

Robert Blum

XXXX the Great. Thanks to quarter today for joining results so much Jamie. discuss Thank SenesTech's XX, ended June period you us financial XXXX. for second

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

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

Forward-looking strategies by and will eventually statements projected. should, future, may, expected, are results or or plan or or plans, such as preceded anticipates, words generally drafts, future expectations describe planned,

that identified and Exchange those risks materially and risks factors in forward-looking that our projected results from multitude the to the other as differ are statements risks statements and result in actual the events of projected those from uncertainties cautioned results various that a subject to including of are filings could Listeners circumstances Commission. such future may materially cause a or differ Securities statements in forward-looking with

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

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

Joel Fruendt

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

enterprise We are pleased with the the progress, made during QX. across we

quarter, record XX% to our the and we revenues up base, revenue with During sequentially. grow continued customer quarterly

Growth progress our was the has the aspects set years, brought which made as we efficiencies with best Growth growing and monthly organization adjusted initiatives, quarter sales, reducing XXX% quality, accelerated period the EBITDA accelerating. to many to to in product we options. drive year-ago third July the initiatives clearly has also two in and which sales since have into of improve We compared is results. significant key driven by been XXXX place undertaken product now are expand we the it showing loss,

is is in growth important, profitable today's market. especially paramount, While growth

unique our opportunities direct reps sales customers for also available our the our efforts are large capabilities, and investments. We field redeployed have return have initiatives put our channels to our refocused numerous and sales the that product. enhance to field Within sales e-commerce putting key our closer for on to the we both in and customer place focus fertility marketing sales while acquisition control operation, sales on improve to

and vertical designed to through and all industry commercial the drive leadership acquisition depths Further, on focus in is expanded strong the tighten decision-makers team new ultimately also front geography we a by customer and new eastern sales expanded of deployed cycle field half This to an regional of the with revenue. in have our US. of each knowledge organization get western both sales

very board. cycle, in New experience are vertical once the is seeing California longer but here sticky by a the within sector require they in our deployments and are driven at Evidence customers on England we and the increases sales significant are government government

US and the zoos a traction major four of component XX% in IBM our for now top out is Our ContraPest accounts in the of within continues and sanctuaries XX and revenues. animal zoos

agribusiness is where and grain vertical, important population rodenticides is an poultry. the critical. clear It's exposure of focus initiated increasingly shipments that the control vertical, risk lethal rodent this in professionals In becoming especially in to companies major for to we pest management

we the largest our reconfigured spend a On additional e-commerce as and added XX-month subscription year. have month items. products to such have revenue of convenience July e-commerce site along customers e-commerce prepaid was for side, marketing options the our and our with e-commerce

initiatives All are translating income to sales increase penetration of to these the statement.

will demonstrated our in results coupled it than taking hold. increase decreased SG&A quick more the our improved of clear at show growth ROI With the strong the that by being in with saw an initiatives chute out the look A second quarter, $XXX,XXX is quarter but revenue. we this third are

efforts, also we Africa. into South addition ContraPest having selling agreement of with our the our commercialization domestic for an international entered of South Africa expansion commenced In to into PES

clearly ContraPest and South articulated with fertility PES and We ContraPest for us their issues. the support continuing committed to entities SPCAs by were are control introduced National private They in have Africa to African recommend assist to advise to South and regulatory to Council who state who and particular. and of

of announced of into deployment also country. a ContraPest for into distribution We their entry Maldives agreement with Pesterminators the

we approval demand XXX their the As another of options. import have placed Pesterminators contemplated They are organization for pest of the stations order is expansion new product which has and subsequently our part the of the secured first is throughout projections in control week. Pesterminators this interest in have to shipping placed agreement a over the due and potential the multinational region order deployment their agreement.

curve. the objective we the is first I'm While of to that here steepen growth we the pleased certainly the especially the with quarter, all know seeing, are third in half

It To for of the expanding tank market. do-it-yourself do System for continue important end, and our new integrated is options to ways tray consumers. we note unit has is delivery designed that use, to for to that catering ease design to product recently which a professionals plan ContraPest One Bait who launched Isolate in unit System comes peel requests we and that of off the servicing tank of to and combines an and easier. the both system train the the the customer XX% Bait setup reduction to wanted up deployment make and users effort. showing of through deployment the efficacy simple with seal, and to The maintain and from a done placement one the an directly that is and ContraPest time the design quicker Isolate

should and both We believe further the Isolate by do-it-yourselfers. of the introduction of adoption ContraPest professionals accelerate

We we are accepting preorders over orders and delivery expect X,XXX starting the month. orders and before delivery next Isolate week the we have end of Isolate of for

fertility One, into practices of non-liquid we their there's control there part applicability of we pest as their ContraPest, when value introduced back, bait of to is pest management two convince fertility and products. acceptance control means as the control; of companies and a growing point of this step things: a two, needed the population a first control resistance liquid Taking of market of utilizing still alter from established pest integrated procedures. At to management the

are management To stages many e-commerce address formulation, professionals. of this bait big-box unique in we soft industry releasing key channels pest which retailers, and by in soft-baked attributes including the the a final leading format proven provides of an control demanded resistance, industry-familiar fertility

soft bait to in our the a its be identified first I at curve. quickly was for transformative months one as key I to need coming will CEO items as introduction us business. the When I took SenesTech, of the steepen over believe

exciting soon, this news let be expect announcing on We to topic me this. some but state

expect to fourth have on quarter. market this the We the by

per third during better the took the not adequate doing on month, products. last over Finally the peaked imperative CEO, but complaints I an make But when improve just high I as our knew could mentioned complaints year, we job quarter quarter but last I customer last we XX that quarter. at it. were last

even less product of with higher the enhanced ContraPest should than five averaged complaints of volumes, and quality of second wider amidst introduction we environmental Concurrent per have a our that formulation improve implemented the During conditions. quarter, Isolate, variety an month.

is the part spent the adoption I have rapid better. is over steepen ContraPest. now need all seeing as as year that. since and this know great we of in of have to are stated to business. We I better the I building improvement. first we CEO, growth going we results believe We strides base a took continuous the of But curve and We the area made know get

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

Tom Chesterman

you, Thank Joel.

As the or today in a website file to reminder Relations to Investor our on later our press Further, release investors, is available section. expect XX-Q either we the early our tomorrow.

I the just on some now. points So right touch of high will

and within California in high led $XXX,XXX, England up the second of a $XXX,XXX of traction with increase by well of animal to sanctuaries. continued driven compared deployments revenue growth by Revenue government and quarter during in was XX%. during the XXXX, vertical, Sales as QX QX second XXXX. Sequentially XX%, an as new in compared quarter was growth the zoos was New

ago mentioned, $XXX,XXX accelerating Joel second take were year or of revenue, of July sales As the in last was year put to hold. XX% initiatives period. the of of total year. XXXX Growth approximately or XX% approximately XXX% to quarter during total is half Gross QX compared as the place up first in in the revenue our profit compared $XXX,XXX

of loss million related a been and of the estimate the profit million Net QX of XXXX. enhanced loss the $X during for Bait gross of XX%. System to was formulation the have introduction costs QX I mentioned excess the $X.X ago, to Excluding in would Isolate net XXXX compared

which QX for $X.X Adjusted in EBITDA of performance, $X.X non-GAAP million is XXXX. a million QX of XXXX loss, compared operating measure to was

well Our the take of expenses goal and we're goal. way our current that out million to achieving annual to $X has been cash on

when all was cash $XX reach. $X can introducing products expanding brought I growing the that to burning new cash a end annually at burn recall and million million million. of rate well we under and and our of run business, look the XXXX Cash of $X.X back was annually, down while the company over

and As are including year commercial an launch SEC to enough more. I'm execute of over raise our S-X our to have a sure the you little a million soft filed is with cash confidently aware, raise $X plans, to bait the or we goal all for

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

Joel Fruendt

Thanks, Tom.

it we truly potential turn a SenesTech. special any questions, something significant have create to to it's over note to at we opportunity think Before I what important

way one than a done We ever different through problems, are has been world's of before. control oldest challenging completely addressing most and rodent the

cause root the addressing of problem, reproduction. the By

and can how We have in incredible their statistic produce given XX,XXX be all food, breeding is truly a to This rats descendants of lifetime. ignored. up statistics sufficient cannot the two heard water hybrid that

the The existing reproduction on poisons resistance as are a version the political limited the poison. and as enhanced rate solutions well limitations rats social by of effectiveness and use

effective to right with ContraPest sustainable solutions, As look deploy fits objective. in communities increasingly that

have I an way they that don't to for can and for that be of changing I support. been ContraPest done generations. I come believe But change have often. that the This when joined we opportunity is believe thank product do, why you paradigm I continued very Products all opportunity. company. have of your the along they is type type things

questions. me any And for turn with over that, let now operator, it

Operator

we [Operator gentlemen, Please Ladies today go will comes first Amit Wainwright. H.C. at Our question-and-answer question. and the from ahead question this Instructions] time, session. Dayal begin from your with

Amit Dayal

everyone. are reach Good Thank What use you the for afternoon, soft about to the channels a respect little talk you. you the launch quarter, customers? bait to distribution With fourth in strategy bit going can end to this?

Joel Fruendt

Yes absolutely.

are and excited other bait has management the product consumer channels a that for the use well soft So, pest solid we're through through the launch. as there as professional channels. that been about that's We been baits really out think retail

users really that that course, a well to field of as still management the plan, be we're retail, in launch professional relying pest and our distributors focus on addition pull we salespeople the to touch a through. end with going So, a big have up set box as in international on plan to to

Amit Dayal

few you provide Okay. And your relation color towards timing-wise the for in how to to soft filing then quarters? can go the which and financing financing going are needs on next Thank any bait. the S-X you launch partly over manage will mean needs you. I

Tom Chesterman

SX, as cannot timing. we the the understand we Unfortunately rules the with comment Yes. allowed SEC. That's from not pending on

-- at So, capital access we I the but point. mean to choice that's markets. do route of our this intend obvious

warrants. note from get would to always warrants can the also are outstanding. see we I We've there financing if such

In will fact be soon. some expiring them of

them So, appropriate. can induce hopefully, exercise them or as make we to

Amit Dayal

the like last guys And sort with just Understood. government looks sales well. to pretty respect of one it are you side mix, doing

talk that a well. farms in of You have pipeline? you you the other customers for with customers? Is user sort those zoos types Can little a base and of customers How as cetera? are pipelines et like bit bringing maybe about non-government-type

Joel Fruendt

agriculture business Yes, business side. in the in poultry We're believe grain mentioned increased I and earlier. is the as most the had of sectors seeing I our exciting part

in team We have area great over that some vertical. come sales field expertise that our in who from have

daily expanding as year starting reorders. we to on are green one that large them see customers reorders this now. a reorders different and good company basis. that And three We're to house of from export a One and had well more is has is see starting leading as more we're a poultry our example from

So, very excited about that.

Amit Dayal

all have. right. much. All That’s so I you Thank

Operator

Instructions] Andersen Please Above go your from [Operator question Advisors. Our ahead question. Tucker All next from comes with

Tucker Andersen

you achieve a follow-up And they guess the question gain you've slowly Hello last of Joel potential progress among a mass. and with on is sort can more you Joel critical my that share shifts you suddenly the congratulations made. mind paradigm what I on And Tom know as is of and agree question. proceed first -- shift. a is I paradigm until rapid customers how

Joel Fruendt

working I start seeing the flow. Yeah. there. field and that the necessary work We're to And field that's tests doing we're you of you customers then that's with field business seeing one have Absolutely. the the that of start doing seeing the start think once out is tests success the we're things

the start orders there. and that then we've had We got in We them in. repeat So, of come worked. the work. showed the out I leg that's zoos it that the reasons sanctuaries. did you think And seeing one success We

in bait sales companies, smaller what doing team, side, taking well we've that focusing the pest field to the the added agriculture real also we're larger management I pest we've that the our larger really as on with companies it relates companies. expertise side our especially on of are the the the with some mentioned professional place So but as And as introduction. some soft side, management on professional exciting in as both got is discussions

Tucker Andersen

poultry to have And very salesmen in the zoo as go get accounts reference now the like you markets and they help grain appear the the and market that fact have the new satisfied customers that some that, try really does fact and certain market you your market accounts?

Joel Fruendt

It absolutely does.

face we a basis no that things to have the problem. they of on wants daily a One one rat admit is

we And what some in activity to we've is So use news them once right on a we field accelerates we've now we're get our that really got and trials really to our as past with product. that product report have allowed that seen And and good with liquid bait both the reference good going in soft that vertical. as expect to September. I some mentioned

Tucker Andersen

The made developed Has me should soft penetrate education the there aware what the would large link of bait it other is in municipal between looking link sort buyers comes you that We're question educational been and market that be as program obvious should it. the of the of to doing that the and an fact forward to seems markets. obvious those sort in be rollout market sort and there homeowners would especially municipality on of last municipalities, in the any office buildings municipalities the that with like and things potential the of the be products.

Joel Fruendt

some comes projects. Los as doing doing some County. started a we The is started Angeles We one field use trials, to reference that mind out there that point

And what said, step thing, just control is the Next the lot we product out up reduce poisons were happening is we -- fertility questions specifying well to first to they the actually that a of what successful want face we for county to a can why no, which into instead? population, use they request the to program there. so proposal. their is And don't about we want is have can getting

it's to once once product really doing, then something certainly to it effective, and the on on sustainable because management at starting about And do we're different that more used programs HOAs reduces look communities some started you and that being happening, property reliance should projects is outreach poison. they're a lethal companies here's

we're traction good really there. So getting, some

their in California. seeing County, newspapers who articles going they're work, the doing, and want. using you're about to other Clara one consumers said cities, outreach product homeowners. the putting is we And did it North Santa And is are this now the it. The cities into County, Clara Santa offering The are field what into and

starting we're such and areas getting into mentioned, So to that, as your and And we the larger as Boston, take as observation well. that of some see traction to you that hold. start I that see we're there appreciate starting other cities on

So, that's real of component it. a exciting

Tucker Andersen

That really it I bait of seems your for a and the terms your if handling seen expand system you've sales soft is last acceleration My success? of the -- the question. place as And is seen and progress you've sort in the said, progress to of logistical early of of and especially perfectly an me, ease question is, optimistic exponentially, and to introduction July handle in stuff. Yes. is, in timed your that sort of August

Tom Chesterman

Yes.

a I going certainly we it that question, hope think great to is and handle to pass can come but that. one it's that's yes,

terms things of rate? very why such that to have we is, that you people terms is, burn occasionally grow of logistics. Well, the we one have infrastructure a the of reasons high have the manufacturing rapidly ask do both of in in One

for are So planning yes, that. we

Exponential we is are that what hope occur. We for. expecting exactly, to

Tucker Andersen

tipping Well, Congratulations point. said. as reaching I on the perhaps

Joel Fruendt

Thank that. you. appreciate We

Operator

I'd we'll ladies any management this floor be the remarks. to like And ending back session. at closing for time, question-and-answer today's over and turn gentlemen, to

Joel Fruendt

in we're and looking Thank for posted you third quarterly for our and these really get-togethers We today. attending enjoy here. Thank things big quarter progress, on the all you. you keep

Operator

you, We conference and ladies joining. concluding be today's we'll And call and gentlemen, thank with for that, presentation.

lines. now may disconnect You your

SenesTech (SNES) 10 Aug 232023 Q2 Earnings call transcript