SenesTech, Inc. Q1 FY2025 earnings call

• Evolve revenue grew 40% in Q1, with gross margins reaching nearly 65% compared to 33% last year, driving gross profit dollars up 132%.
• Deployments of Evolve in Chicago, New York, Baltimore, Los Angeles County, Waukesha (WI), and San Francisco. Announced deployment in Chicago's Wicker Park area and began NYC deployment post-City Council approval. Received orders from multiple municipalities and Pestec started a large deployment in San Francisco.
• Ecommerce sales up 107% in Q1 due to expansion on Amazon, Walmart, and Tractor Supply, with enhanced website functionality and targeted marketing.
• Implemented cost-cutting initiatives to reduce expenses by $2M annually, moving cash flow breakeven to ~$1.5M quarterly. Moved to a larger facility in Phoenix to meet future demand without significant cost increases.
• Focused on commercialization of Evolve Rat and Mouse, brought marketing, regulatory, and IP functions in-house, and optimized direct sales efforts.

Total revenue for the first quarter was $485,000, a 17% increase from the year-ago period. Evolve revenue grew 40% and accounted for 79% of Q1 sales, totaling approximately $383,150. ContraPest decreased ~40% and made up 21% of Q1 sales, totaling around $101,850. Ecommerce was the largest contributor at 61% of Q1 sales, up 107% year-over-year. Municipal sales saw a sevenfold increase from the year-ago quarter but remained a small percentage of total sales. No international sales were recognized in Q1, though over $50,000 in international shipments occurred in Q4.

• Expect strong second half with shipments planned for new countries; 12 countries/territories have distribution agreements, including recent exclusives in Indonesia and Philippines. Approval and shipments in Hong Kong, UAE, Maldives, Netherlands. Deployments expected in Australia and New Zealand post-regulatory approvals.
• Cash flow breakeven threshold reduced to ~$1.5M quarterly with higher gross margins from Evolve and operational efficiencies.

• Regulatory processes for international market approvals and deployments. - Execution risk in achieving cash flow breakeven and meeting growth targets related to municipal, ecommerce, and international sales.

Q: No questions were raised during the call A: No questions were posed by participants