SNES - Earnings call transcript Q3 2024

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Operator

Good day. and welcome to the SenesTech Third Quarter Fiscal Year 2024 Financial Results Conference Call. [Operator Instructions]. Also, please be aware that today's call is being recorded.

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

Robert Blum

Chief the and the session. of record amended, the we forward-looking Securities submit With you joining contain open remarks, Act Thank the with XXXX of Litigation and of you statements XX, Officer. thank for made results a following are are the call Act All question-and-answer Financial Joel the Instructions] Before XXXX. the of today conference very Tom of and this to the Exchange for XXXX. September statements as ended and team us the safe within quarter of the call company's the SenesTech Private of to on we discuss all course XXE Section the the prepared will harbor company's during for such today Fruendt, right. by XXA Securities management the amended, period much, us as may SenesTech's financial the provisions remarks, conclusion Securities we Chesterman, Chief Statements made meaning forward-looking [Operator call begin At of Executive Officer; XXXX, statements. of today's prepared Act Section for XXXX, Reform pursuant of third

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

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

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

Joel Fruendt

everyone. Thank Thank QX joining and you today for afternoon, us you, good for call. all Robert, conference our

So let's jump into right it.

press revenue yet made be third release, with As the as certainly number I as quarterly progress for changer the the you for all Evolve another during record continues as the well in SenesTech industry. culminated which saw in game to pleased am quarter, a

revenues, Beyond keen are focus the operational efficient we maintaining on record a also execution.

revenue improvement growth performance XX% were OpEx was net QX. XX% operating XX% third compared processes. year-ago our as were quarter. margins we XX% the best an gross despite EBITDA from down year-over-year a up result became more The last expenses QX adjusted From company history, to efficient year's in in and in from XX% our quarterly selling continued QX, During in the standpoint,

product important it's recognize only back, Rat a that step than Taking to ago. we the a Evolve less launched year

time, that business. our zero has XX% for in of During revenue to gone account it from

the we Evolve of early in believe Rat become. just are innings We what will

ContraPest, similar that that familiar more additive designated traditional by EPA, and format deploy legacy competitive minimum-risk and you to ingredients. soft all-new pursuant as food It consists of Regulation to of those is the product product, to product easier a price is that a bait For to rodenticides. our a but our efficacy at and are XXB, offered Evolve food is the a and to in new the has story, somewhat reminder that is

and retailers been are results increased of from geographies, SenesTech. and is markets in clear reach dramatically the has what and looking have terms distributors that for our Evolve Evolve

Beyond product, time, of build go-forward Evolve period in a QX revenue we growth our on as our is for accounted May another the the announced driver we introduction it mouse continued has of of short growth In rat Rat's which of that XX% and key of to adoption, product. this year. success

bait soft the market our solution revolutionary infestations, same breakthrough but Rat, This fertility utilizes with mouse effectively formulation to doubling as a specific product addressable Evolve target opportunity.

growth. X we products way, place drive leading in the to With have initiatives several these

these Let's dive one into by one.

retailers. talk let's with First, our expansion about online key

quarter. you of in ago. store business a third Amazon most months XX% the know, our total progressed few Amazon and As we well, e-commerce This has our launched represented of

the and pace. launched increasing there product XXXX, at We during in sales rapid are QX diypestcontrol.com also a

the in a weekend, started orders live time. Walmart.com. launched receive We the company and short on to went site Over of period the

are representing with and QX product final QX XXXX in weeks. to of the total senestech.com, e-commerce-related expected XX% compared be to increasing XXXX is year-to-date the available testing platforms, to 'XX purchase also TractorSupply.com, approximately We for Overall, on sales including trend sales. upwards, the but with approximately coming XX% sales in continued

Next, let's discuss adoption. chain retail brick-and-mortar

ACE's conducted Hardware well sell As August, where from over some over buying XXX call who over the QX fall remember, I our of the market, over X,XXX as participants, business to floor representing exhibited X,XXX XXX the first stores, stores. we live wholesale buyers to for you product call of during line time Evolve from in may as the the ACE

ace.com AceHardware.com step are have national warehouses. they warehouses increased to store from will be them can if key pleased have products represented which [ have improvement rather happen they stocking only the our in their each begin And their products stocking next our having than The us we to order ], on directly. products our home (sic) adoption say of Evolve within with first ACE in retailer. I'm this

represents representatives this a penetration, also We even represents inventory assumption With than their this retail X estimate more are opportunity. that with agencies working multimillion-dollar manufacturers' realistically over Evolve with XX,XXX chains modest hardware in to stores. rep We XX targeting a locations. of outside

shows, Distributing and the has these fact, up will about the of and rep Orgill time In are excited Mid-States buying exposure buying buying first exhibition distribution Hardware we be will This agencies in our receive. February. one we exhibiting for exhibition winter us set the at our

I but processes their last mentioned and specific on buyers or for months a agreed us X ACE, in more. it's system, OZCO, takes hand, example, have purchasing these buying patterns. other of each their complex quarter, put plans As months. everything in advance to the that own process

sales. next So we year's are pitching for

customer is with rep buying their manufacturer's Walmart know tend why a stock and to couple to cases them start it expand Every They patterns. is different, of who which then work of with these yet some is demand. agencies of important stores, based is so on with product different.

rat is transition let's EPA. in the pilot bill term City reduction Council New of New namely has municipal to by Next, for programs, for York the a such implement Recently, a that approved to reproductive bill, the sale capacity rat From approved program. means and rats available contraception the contraceptive an City. the for York agent use

only months products being with and SenesTech requirement. progress we is the request this to in from a proposal. and to more about to initial look to currently meet the Responding our forward weeks that of We supply able prepared presented communicate manufacturer city, you come. an the have

in global related out to Earlier announcements partnerships this locations. we year, several various had put

to these of is these selling begin we stated in an in-country countries. in As Evolve is registration there releases, each process required that

history. these and received largest we for are shipment We progress. partners, to a respective our have our been company's working multi-pallet hard forward, we immediate making in This move the from in The order the stocking With Netherlands. just order distributor is

our registration Hong full order, estimate the received a order Kong. container from are XX recently Evolve To a in receiving and Hong a Kong, while contains close distributor pallet pallets. about perspective put size, some exclusive to in container-sized is to stocking we $XX,XXX we

registration final we and many to are Zealand Taiwan. months trials. India, are of of Pakistan, stages Brazil distributors in exclusive in New we in and And selecting after getting Chile, the close and And also submissions Australia

So look a the coming driver when our growth. global to significant future quarters, we should push at be

on can are forward moving ball hear, As multichannel we commercialization you strategy. the quickly our

beneficial efforts SenesTech. that will be focused commercially to are advancing efforts, other also Beyond we key

gross X.X-pound, we than traditional talked quarter, packaging XX% enhanced less Evolve, use last launched about which we As packaging and pouches, new have This in subsequent that pails. margins, we you market are which on in plastic X-pound to saw our of report convenient results. new we to enhanced And and X-pound bringing today's for on products more quarters. focused provides and also should have

studies agricultural firm to also we an showcase have Evolve underway Right Evolve's We sugarcane in have Coast settings. East many operation. underway a in trials now, highlighting real-world with success

Mouse. in also university management Coast is a a efficacy pest trial professional Evolve a campus. completing for laboratory a housing on We leading deploying Western And West have a university Evolve area

on study is Finally, conducting a Department rodenticide California sustainable to of Regulation-funded leading use. control a alternatives firm Pesticide pest

XX states are Evolve states remaining on for for is Finally, is now completed The available front, while in Mouse Evolve to up soon. the which Rat regulatory steps, XX sale states. should administrative be various waiting

lot can as there's you So on. going hear, a

innovative manufacturer rodents, to how address industry, a to the us point, rodent look key in of reduction ahead us change With and control we solutions. communicated only infestation. agriculture have opportunity municipalities, adoption have its the and improved continuing shelf capacity the product problem form its game of proven requirements life, Evolve EPA-registered and attribute of efficacy by products As reproductive economic accepted price of consumers the our for addressed of and factor, rapid We all U.S. lengthy the we of forward the tremendous to the industry. pest

Chesterman in Tom? it over turn now me Let to financials the more review detail. to Tom

Thomas Chesterman

Thank Joel. you,

year, and some was driven same filing million Evolve of was Evolve and revenue, which beginning Rat, XXXX $XXX,XXX months revenue. which the be for was represented our products Mouse, We to revenue for the in and remaining by This financial XXXX. in quarter. the period of were the will of represented later launched of Revenues QX today, X hit the let QX launched the related lines. Evolve but growth compared Rat highlights. XX% XX% me XX-Q represented XX% first the for ContraPest Mouse at $X.X XXXX product Evolve of May,

website, anticipating included just in international e-commerce of own order was of had Looking added received an sales, will at represented during But XX% for revenue sales revenue sales, started nominal our revenue field our coming our distributor. orders just while represented was about us, third Brick-and-mortar provide we which quarter. by fact, diypestcontrol.com, for the in channels, XX% growth retail, Distributor and we indicated, X% really are internationally XX%. months. first Amazon quarter. the as we international And sales the Joel in multi-pallet and which

in proving and pricing both out. margin From represents year. a dollars opportunity for a XX%, a we've our XXXX standpoint, past, this of higher-margin quarter said and Gross give Ever-improving in flexibility. this for the SenesTech, product gross us QX XX% the year. and up operations lower-cost As Evolve same is profit pipeline dollar last to QX manufacturing new compared of was XX% record last from period increased margin

As mentioned capacity we also increasing meet production to quarter, future last demand. are I

We our without dramatically that demand meet X have facility in Phoenix will the secured area a costs. newer, years the allow next to increasing us of larger increasing facility

We expect first of year. to during next half the location this move to

We continue to well. hold the on OpEx as line

growing profit In fact, cash our cut gross solid revenues, have burn disciplined and we with significantly. operating expenses,

EBITDA or a burn how was million more cash adjusted than we month. Our historically $X measure

months a the month. For EBITDA $XXX,XXX adjusted of X just year, the first our about is

With these definitely near-term potential flow mentioned, for the the potential cash year. breakeven we next Joel trends, adding in see

XXX,XXX certain existing per we of balance the stock an share. of warrants in the price shares the announced company's of a August, sheet $X.XX at closing Looking purchase common exercise to at of

other addition, before new payable million $X.X from expenses by proceeds gross issued the offering deducting existing placement of the In aggregate were warrants company agent The these and warrants. fees approximately the company. exercise

at-the-market lower to a have This This capital an over ATM opportunistically. cost that of We us sell the put small in also place involve directly allows raising of way warrants. amounts time or and to one stock equity market facility. not does is

ATM recently, started We the not care have taking market. using this to disrupt

We're made XX-Q. facilities and progress revenues, next breakeven EBITDA quarter game has manufacturing to debt debt begun our in capacity flow our to history with be changed source has the year-to-date. pursuing We in that will our a gross and have and to Record Similar us. already loss using Most Joel's capital been growth of cash decreased I of more. also third through also detailed for The investment committed as will pathway lowest goal provide of bridge OpEx, and the year. credit our comments, for profitability. truly am pleased record margins, begun during

let's Operator, for questions. open lines the

Operator

[Operator Instructions]

Robert Blum

Joel one York timing have relates I Yes, think a as when you City? to in let and for about hear the Tom, might the both jump webcast do me Tom. from Can just New question talk you moment to it here from here. you

Joel Fruendt

], it certainly and forth the (sic) soon. Joe month. been few and We've things, [ it will be on Yes, back Robert going should within a next be

Robert Blum

Okay. questions here. have Fantastic. the that's ahead closing all and I'll instructions. it over I turn Operator, go for

Operator

conclude will management also phone side. I'd turn back right. This over question-and-answer our the on All session like conference remarks. for closing to to the

Joel Fruendt

all sharing the forward always of progress to with being for today. March. forward information we look We look Thank you being Yes. company, and the on of in all new the and to you again call

Operator

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

disconnect You lines. may your now

SenesTech (SNES) 12 Nov 242024 Q3 Earnings call transcript