SenesTech(SNES) - 2025 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $485,000, an increase of 17% from Q1 2024 [17] - EVOLVE revenue grew by 40% and accounted for 79% of total sales, while ContraPest revenue decreased by approximately 40% [17] - Gross margins increased to 64.5% compared to 32.5% in Q1 2024, with gross profit rising by 132% to $313,000 [20][21] Business Line Data and Key Metrics Changes - EVOLVE product line is driving growth, with significant revenue contributions from e-commerce, which accounted for 61% of total sales and increased by 107% year-over-year [18] - Municipal sales saw a sevenfold increase compared to the previous year, driven by new deployments in major cities [19] - ContraPest continues to have loyal customers, but its sales are being deemphasized as the company focuses on EVOLVE [17] Market Data and Key Metrics Changes - E-commerce sales have expanded to platforms like Amazon, Walmart, and Tractor Supply, contributing significantly to revenue growth [10] - International operations are expected to grow, with agreements signed in 12 countries, including Indonesia and the Philippines [12] - No international sales were recognized in Q1, but potential significant orders are pending regulatory approval [19] Company Strategy and Development Direction - The company is focusing on expanding the EVOLVE product line and improving operational efficiencies to achieve profitability [15][25] - Strategic initiatives have been implemented to reduce expenses by $2 million annually, which will help lower the revenue threshold for cash flow breakeven to $1.5 million quarterly [15][22] - The company aims to revolutionize pest control, particularly in municipal applications, agriculture, and commercial sectors [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in municipal deployments and e-commerce, anticipating continued success in these areas [10][11] - The company is focused on executing its strategy effectively to capitalize on market opportunities and achieve profitability [25][28] - Management highlighted the importance of operational optimization and the potential for significant revenue growth from new markets [25][26] Other Important Information - The company completed a strategic financing that raised $1 million and included short-term warrants, providing additional capital without significant dilution [23] - The company has moved into a larger facility to meet increasing demand without dramatically increasing costs [21] Q&A Session Summary - No questions were asked during the Q&A session, and the call concluded without further inquiries [29]