SenesTech, Inc. Q3 FY2025 earnings call

• Record quarterly revenues driven by rapid adoption of Evolve product line, with e-commerce being the largest channel (over 50% of revenue) up 55% YOY.
• Announcement of Evolve products available at lowes.com, a major milestone in retail distribution.
• E-commerce business showing strong growth with Amazon having double-digit monthly growth, and revamped ad spend after slowing during slower seasons.
• Retail sales up 254% YOY due to expanded adoption with ACE Hardware and Bradley Caldwell.
• Municipal revenue grew 139% YOY with deployments in NYC, Chicago, and Baltimore, and positive results from New York City pilot program.
• PMP revenue represented nearly 20% of Q3 revenues, up 72% sequentially, with theme parks showing repeat orders.
• Completed move into new larger facility in Phoenix area with increased production capacity.

For the third quarter of Fiscal Year 2025, total revenue was $690,000, up 43% year-over-year and 10% sequentially. Evolve revenue increased 77% and accounted for 85% of Q3 sales. ContraPest decreased approximately 31% and accounted for 15% of Q3 sales. E-commerce was the largest contributor, making up 54% of Q3 sales, up 55% year-over-year and 6% sequentially. Pest management professionals (PMPs) accounted for 19% of Q3 sales, up 29% year-over-year and 72% sequentially. Municipal sales saw a 139% increase from the year-ago quarter, driven by new deployments in Chicago and New York. Brick-and-mortar sales were up 254% year-over-year, driven by expansion of ACE Hardware and Bradley Caldwell.

• Management feels comfortable with cash position at end of September over $10 million and sees potential path to profitability without further equity offerings.
• Expect continued growth with transformational opportunities that could quickly lead to profitability through broad adoption of Evolve and diverse go-to-market strategy.

• Legal litigation from Liphatech, a rodenticide manufacturer claiming violation of nondisclosure agreement and IP infringement, with assertions deemed baseless.
• Uncertainties in international market approvals and potential delays in securing country approvals for international sales.

Q: Will we see the company's products in Lowe's brick-and-mortar stores?

A: We are in discussions with them; first step was e-commerce, and we're talking about a test deployment in about 100 stores, expecting sometime at the end of Q2.

Q: Do you have visibility on PMP-driven sales? What kind of growth are you expecting from this channel?

A: PMPs account for 20% of sales, up significantly from last quarter and year ago; see significant growth as pest control operators become aware of birth control as part of integrated pest management.

Q: How much of the $690,000 revenue was from e-commerce?

A: E-commerce accounted for 54% of quarterly revenue.

Q: Could you give basic general details on your progress in the international markets?

A: Got official approval for New Zealand, have distribution set up there, 18 exclusive distributors working on country approvals, expect more country approvals in next 3 months.

Q: Any additional color on legal expense?

A: Being sued by Liphatech claiming violation of nondisclosure agreement and IP infringement; assertions are baseless, and SenesTech's growth may be scaring poison companies.

Q: Could you give an estimate on revenue from recent field trials in Somerville and Cambridge?

A: Too early to project revenues, but trials are going well and positive results will lead to orders similar to theme park repeat orders.