SenesTech (SNES) 9 Nov 232023 Q3 Earnings call transcript

Welcome to SenesTech's Third Quarter 2023 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 of Lytham Partners. Please go ahead.

All right. Thank you very much, and thank you all for joining us today to discuss SenesTech's Third Quarter 2023 Financial Results for the period ended September 30, 2023. call Chief company Chesterman, Executive Chief Officer. the Fruendt, is the on Financial company's the Officer; us representing today the Joel company's With and Tom the today's we At session. prepared conclusion a question-and-answer of will the open call for remarks,

prepared Before for the we record we remarks, submit following the begin statement. with

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

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

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

joining for the today. progress the initiatives product we quarter Good quality third afternoon, made our on implemented highlight to results improve of options. us expand our The various and all Thank everyone. the drive sales, product you have

accelerated growth during strong revenues, at a a coming our quarter all-time Specifically, of the third growth XX% we $XXX,XXX. trajectory in with new quarterly record year-over-year in

increases Sales growth every key by during jugs market, led sanctuaries third including vertical in the and commercial. was quarter and Lately. agribusiness, nearly

improvements associations. investment have net lead period. improvements, EBITDA demand e-commerce the revenue of we in operational In been residential homeowners loss improvement number growth, and ago loss of in such from in addition, as surge seeing return an year This platform, our nearly compared to our on $XXX,XXX with a to a helped marketing our adjusted coupled within

accelerate to I price to beginning the our soft the management competitive believe is efficiently that ContraPest, as easier launch rodenticides. customers is integrated just However, growth that bait to pest more that a will can product. Evolve the is Evolve revolutionary of use and this offered traditional has following all-new at further efficacy is our similar Soft but product in deploy programs format in their a Bait

ContraPest, problems, rapidly targets pest to reproduce. with of the ability cause As rat's Evolve root

their females, interferes in reduced cottonseed follicles rats. reproductive has population. Compound casita growing in trying the solely to The extra the on well-documented with other efficacy both by by ], up infestation and managing of count controls of rate, a Evolve's and and solely keep of rate. [ ingredient is active relying controlling controlling fertility numbers affecting rather solution population thereby rats, death derived the the longer from firm mechanisms fertility the than in for an and words, birth with the motility record cycles

the more for ContraPest, effects. Rodents to would gasable any several Similar the see Evolve to rats, to ingest designed low so over substantial in need weeks a larger mammals amount body are that done repeatedly massive levels this tremendous the they important our intestinal as It's be product. job team of of out appear of to in have tolerant gasable development different tracts has point modes to and digestion.

further Chief Our ContraPest. been team and key risk the we expedited Pulaski, market team also laboratory By our develop perform at to on white a to product to were have to breed this investment a a Dan and able tests. time Officer, as as known test Technical the develop under leveraging EPA's took fraction and the his this data published Evolve it able paper exemption. minimum continuing his field innovative of and bring website Dan summarizing feed to pathway, and well as rules XXB have

The or and and results and found, its nontarget levels. place format used Due update anywhere broadcast other in Evolve impressive. location based pieces X activity simply bait potential be to be rats such XX Evolve fields to are can areas options stations where can agricultural base to wildlife rent pets be as offers We label, resistant areas species. in soft that and exposure secured Evolve in per and are there's recommend temperature complexes. convenience application on children

Another that competitive rodenticide key differentiator alternatives. to Evolve is is price lead for

premium-based rodenticide. a As over know, of to many that you X ContraPest is product Xx priced is often

in pest applicability as one, of Elevate a pest But companies practices ContraPest, soft convince of control fertility needed their So point, current and the established alter control management. first company control; base have to At resistance management and fertility utilizing The of part there the two, their all we a value market product? a a products. nonliquid the date liquid the solutions counter-delivery pest liquid introduced a means of we step why integrated take in of from growing population a X let's control of procedures. currently there's still Ultimate, Isolate the delivered form. of is acceptance to market, as are into back. When things: this

the them coming XX% their of more. day, is for about body consume rats weight palatable every keeps to water need rats and and back As to it

X% To believe dates. step big pest including the is in this about formulation, the expected The rodenticide professionals. launch is key liquid we of market verticals, reach only is that. remaining be SenesTech's expanding significant However, on Evolve market e-commerce and key to retailers, box industry within current a point, even liquid a of if management solution XX% the leading channels

We have Evolve of negotiations solution. providers to key to will the already expect free develop and received a orders in with we retailers are that next and week. big e-commerce goal the the shipping number And box of adoption partnerships product with increase dramatically start

we for isolate at big shelf with group space the have already have example, of initiated respect For we retailers, process to hardware a stores. Amazon. as With box

we are a expect Evolve. we big So to, and point to the format recipe they success box into a With in have that move believe tremendous set future. we the accustomed price SenesTech will for quickly with up competitive

innovative the tray August. storage in all to needs. and X,XXX Evolve the string recent unit offerings in the single declass were nearly designed base as of bait use introduced fits settings. provide the agricultural continues and efficient format more present, company integrates unit. system, of of and that were a introduction SenesTech's to deployed late barns, facilities. In and Last launched Elevate system the system X/X Elevate sales July in both might year, rest The greeneries, and nearly XXXX, At easier which a their be manufacturing easily only mounting the represents fertility as of various Year-to-date, isolate systems in with isolate introduced for tank product customers that of control deployed effectiveness was

flawless progress, to delivering every projects progress we're with we Product that execute innovation shortly the certainly Tom continue product is the front. I Evolve the already to key I a that with new to work One, To more our are made the have goal isolate outlined turn on providing our key over development objectives. this future on imperatives products wrap X is With up success, I things customers, XX it team and to financials, in curve. shipping needs. adoption and with SenesTech have launched, working the success fit our to am in before development drive we options run potential through and we while product tremendous their achieving that to time, recently existing pleased of steepening

continues three, enhanced customers And programs. the and enhanced in isolate, providing great will Two, we targeted with structured force, as markets a the sales Concurrent wide in improvement. on improve introduction a conditions, value our and platform of distribution with quality we focused we product implemented of making make of and variety e-commerce continuous grow pest environmental will partners their penetrate management have are that of formulation distributors integrated part strides These area relationships. better an effective products.

that steepen to the curve help we imperatives, value are executing overview, SenesTech turn long-term the these SenesTech. over in it review Tom? successfully should drive products let believe Tom to which on With me of I and financials. adoption

Thank you, Joel.

a our As press release investors, our is section. website the Relations reminder in Investor on to available the

be today. filed a will presentation. later this recording we As XX-Q Further, have our of to

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

non-GAAP second a quarterly up Sequentially, compared of XXXX. an was in revenue QX quarter of XX%. for of increase record to to Revenue during of was which of last new to $XXX,XXX the third approximately XX% XX% quarter compared QX Net QX compared $XXX,XXX XX% $X.X of QX was of QX total was loss loss loss, 'XX, $XXX,XXX of was in commercial third million compared million XXXX. during approximately in Sales performance, zoos led growth vertical, applications. EBITDA year. XXXX quarter during compared nearly profit including $X.X $XXX,XXX third key Adjusted for Gross million every $X.X net quarter by increases or operating and or and total measure the during was sanctuaries, market agribusiness, the XXXX. to revenue in $X.X revenue QX is a a with million of

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

million. Cash September XXXX of end the was $X.X at

the As all we have with $X.X are I'm filed you aware, an SEC million. S-X raise to up to sure

money near In that that to addition, to cash may able through warrants. we are raise we the of be have warrants enough exercise

commercial confidently enough a our Our goal launch bait more. soft cash is execute a raise the for to of or including plans, year to

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

by to rodenticides of we Act circumstances, risks And control. executing. the are rodents to health rising. growing These are in currently also Ecosystems is in rodent Tom. working. rodents adoption and is keep realization which much collateral and to pest There's too effort tailwinds a banned responses all in traditional of too under California's importantly, public anticoagulant in Protection most many X this damage second-generation used that concerns many major many Thanks, decades Humanity war as evidenced our not favor. commonly responding there's With

more customers We against by our selling success imperatives are the our improving products better, choices. offering delivering and

can opportunity often. As that stated don't believe But come by thank been have they now me the do, done And animal change to when leading way questions. have last generations. the turn they with we along type you I continued over any quarter, fertility we way I let of your opportunity products all very for it paradigm be for populations. things for control the in an changing that, have support. pest for

[Operator Instructions]

Hey Amy, this is Robert here.

if any to did live Joel see e-mail we to get management, dialers make from guess, we there's one While to Tom here, here. wanted we post or question the to sure questions I I wait

new "Congratulations really? from an Question is product. very on like standpoint, how big your it. excited But are It investor by it sounds you is,

quite is It Tom. a literally one, changer. that game take I'll

on store, control pest the products many consumer-friendly of control have the best supply countries pursued their a portal. two, shelves in fertility the of for product this fit they then hardware store approvals similar is most with understand finally, to truly follow-on to one, but prefers the service can Two, And add rats, e-commerce offerings. may and Evolve need to species market workflow, agricultural nonliquid sold other immediately. your to can For expedited be your Three, but EPA's XXB. local favorite start products or be their other

rodenticides, anticoagulant And start This to is can has the fertility fill gap. British did control we process they immediately. timely. the Columbia Canada use banned of example, recently as particularly a second-generation California. need definitely in the For

So press, more from standpoint, means a an realistic revenue and shot investor at by XXXX. this more profitability

for you it turn over to Thank I'll Perfect, Joel. back you. Amy, that.

Instructions] [Operator

the for closing This to concludes to over I remarks. turn our like would question-and-answer management session. any now conference

concluded. to you after first the Conference forward look the part all our and attending, year. QX Thank now we of results has for

today's attending for you Thank presentation.

You may now disconnect.