Energous Corp Q4 FY2022 earnings call

• 2022 was a transition year where Energous focused on becoming a leader in IoT wireless-powered networks, targeting applications with a $280 billion total addressable market.
• In Q4 2022, the number of wireless-powered network proof-of-concept installations increased to 10 from prior quarter's 2, demonstrating growing customer interest.
• Key partnerships include Catapult (sports analytics), Sensirion/ams OSRAM (sensors), Sato Holdings (retail), and CAP-XX/NGK (energy storage).
• Standardization achievements: ITU approval for 900MHz wireless-powered transfer, FCC certification for 15-watt PowerBridge, and EU certification for >1 watt.
• 2023 goals: Maintain tech leadership, optimize production costs, expand partnerships, move customers from POC to production, and achieve 20%+ revenue growth weighted to the second half of the year.

For the fourth quarter of 2022, Energous recognized approximately $179,000 in revenue, a 20% decrease compared to the prior quarter and a 21% decrease compared to the same quarter in 2021. For the full year 2022, total revenue was approximately $851,000, representing a 12.5% year-over-year increase from 2021. Cost of revenue in Q4 2022 was approximately $383,000, with a small inventory write-down similar to Q3. Total GAAP costs and expenses for Q4 2022 totaled $6.5 million, with increases in severance and bonuses partially offset by decreases in stock comp expense. On a non-GAAP basis, Q4 non-GAAP net loss was approximately $5.3 million.

• Energous anticipates year-over-year revenue growth of 20% or more in 2023, with growth weighted towards the second half of the year.

Forward-looking statements made during the call are subject to inherent risks and uncertainties detailed in the company’s filings with the Securities and Exchange Commission.

Q: What’s the update on the status of pilots with retail customers in Australia and timing of shifting to production?

A: Cesar Johnston stated they continue supporting the Australian partner but had no immediate update, noting a 5x increase in proof-of-concept installations from prior quarter.

Q: Which partners have the best near-term opportunity?

A: Cesar Johnston highlighted partnerships in RF-tags (Wiliot), electronic shelf labels (e-peas/EINC), and sensors (Sensirion/ams OSRAM) as important, with retail being a key area having multiple proof-of-concepts.

Q: How many of the 10 programs will contribute to 2023 revenues?

A: Cesar Johnston mentioned they are early in development and revenue growth is weighted to the second half, but specifics on which programs contribute were not detailed.