Senestech (NasdaqCM:SNES) 2025 Conference Transcript

Summary of SenesTech Investor Conference Company Overview - Company Name: SenesTech - Ticker Symbol: SNES - Industry: Rodent Control Solutions - Key Product: Evolve (rodent birth control product) Core Industry Insights - Rodents are a significant public health issue, causing over $27 billion in infrastructure damage annually in the U.S. alone and destroying nearly 20% of the world's food supply [2][3] - The global market for rodenticides is approximately $4.5 billion, with the U.S. market spending over $1 billion annually [11][23] - Traditional rodenticides are facing increasing resistance and regulatory restrictions, leading to a demand for humane and sustainable alternatives [10][24] Key Product Features and Innovations - SenesTech's products are the only registered rodent birth control solutions available commercially, focusing on suppressing rodent reproduction rather than just extermination [2][5] - The product Evolve has become the top-selling item, significantly changing the company's trajectory and expanding market reach [7][8] - Evolve has shown to reduce rat populations by 90% when integrated into pest management programs [6][8] Financial Performance - 2024 Revenue Growth: Up 56%, driven by a 107% increase in e-commerce sales due to Evolve [8][25] - Gross Margin: Improved to 65% in Q2 2025, up from 54% in the previous year [18][25] - Revenue Breakdown: E-commerce accounted for 56% of Q2 sales, with a 78% increase year-over-year [16][17] Market Strategy and Expansion - SenesTech is targeting multiple verticals: consumer, cities and governments, pest management, agribusiness, facilities management, and industrial applications [11][24] - The company has established a multi-channel distribution strategy, with 60% of revenue coming from e-commerce platforms like Amazon and Walmart [11][12] - Recent municipal deployments in cities like Chicago and New York City are expected to drive future growth [14][15] Regulatory and Competitive Advantages - SenesTech has a regulatory head start with EPA approvals and a FIFRA 25(b) exemption, which competitors will find challenging to replicate [9][10] - The company holds proprietary know-how and has conducted extensive efficacy studies, establishing a strong competitive position in the market [9][10] Future Outlook - The company aims to achieve profitability with a break-even point estimated at $6.5 to $7 million in annual revenues [20][25] - Continued focus on operational efficiencies and growth in e-commerce, municipal, and international markets is expected to drive revenue [23][24] Additional Insights - The introduction of Evolve has allowed SenesTech to expand its market to include mice, enhancing growth opportunities [23] - The company has reduced cash burn by $2 million annually and is prioritizing investments in e-commerce and government sales [24][25]