• Quarterly Revenue: Increased 70% to $501,000.
• Annual Revenue: Increased 56% to $1.9 million.
• Gross Margin: Improved to 61% from 44% in the previous years fourth quarter.
• Quarterly Gross Profit: Increased 136% compared to Q4 of last year.
• E-commerce Sales: Increased 206% year-over-year, representing 55% of Q4 2024 revenue.
• Product Sales Breakdown: Evolve Rat accounted for 52% of Q4 sales, Evolve Mouse 24%, and ContraPest the remainder.
• Cash Burn Reduction: Expected to decrease by 30% from $1.5 million to $1 million per quarter.
• Cash Flow Breakeven Revenue Threshold: Reduced to $7 million annually from $12 million historically.
• Strategic Financing: Raised $1 million through warrant repricing, with $4 million in short-term warrants.

• Warning! GuruFocus has detected 4 Warning Signs with SNES.

Release Date: March 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• SenesTech Inc (NASDAQ:SNES) reported a 70% increase in quarterly revenues and a 61% gross profit margin, marking record financial results.
• The introduction of the Evolve soft bait fertility control solution has been a significant driver of growth, expanding distribution into new retail customers and end markets.
• E-commerce sales increased by 206% during the fourth quarter, representing 55% of Q4 2024 revenue.
• The company has successfully launched Evolve Rat and Evolve Mouse on major online retailers, including Amazon and Walmart, and expanded into international markets with distribution agreements in 10 countries.
• SenesTech Inc (NASDAQ:SNES) has implemented cost reduction initiatives expected to reduce cash burn by $2 million annually, aiming for cash flow breakeven in the near term.

Negative Points

• Despite the positive financial results, SenesTech Inc (NASDAQ:SNES) is still operating at a loss, with a focus on achieving cash flow breakeven.
• The company faces challenges in obtaining state and local approvals for its regulated products, which can delay revenue growth.
• There is uncertainty regarding the scale and timing of revenue contributions from new contracts and pilot programs, such as the one in New York City.
• The company has paused new product development to focus on existing products, which may limit future innovation.
• SenesTech Inc (NASDAQ:SNES) relies heavily on e-commerce and specific sectors like warehousing, which could pose risks if these channels do not perform as expected.

Q & A Highlights

Q: Can you provide more details on the New York City pilot program and its potential impact? A: Joel Fruendt, CEO: The project is set to start on April 27, focusing on two ten-block areas. Our team will assist with product placement and monitoring. As progress is observed, additional areas may be added, presenting significant growth opportunities.

Q: What is the strategy for expanding into the warehousing and distribution sectors? A: Joel Fruendt, CEO: We conducted successful field tests in September and October at warehousing facilities. Now, we're moving to larger orders for product deployment. This sector presents vast opportunities, especially in food production and storage.

Q: How are e-commerce sales being driven, and what role do advertising and awareness play? A: Joel Fruendt, CEO: We invest in Google Ads, search engine optimization, and pay-per-click campaigns. Amazon sales have seen significant growth, and we're starting on Tractor Supply and Walmart.com to boost traction.

Q: Can you clarify the reduction in cash burn from $1.5 million to $1 million per quarter? A: Thomas Chesterman, CFO: This reduction refers to cash burn or adjusted EBITDA, achieved through cost optimization and operational efficiencies.

Q: What is the potential impact of the Lure bait dispenser on sales? A: Joel Fruendt, CEO: The Lure bait dispenser allows product use in hard-to-reach areas, increasing product accessibility. While not a high-revenue item, it facilitates more product usage and has garnered significant interest and orders.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.