The chart below shows how SNES performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SNES sees a +7.06% change in stock price 10 days leading up to the earnings, and a -7.96% change 10 days following the report. On the earnings day itself, the stock moves by +2.08%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Strong Revenue and Profit Margins: Record financial results with quarterly revenues up 70% and gross profit margins of 61%.
Quarterly EBITDA Loss Improvement: Smallest quarterly adjusted EBITDA loss in company history, indicating progress towards profitability.
Cash Burn Reduction Strategy: Implementation of initiatives to reduce cash burn by $2 million annually, lowering the revenue threshold for cash flow breakeven to $7 million.
Distribution Expansion Growth: EvolvSoft Bait Fertility Control Solution has expanded distribution into new retail customers and end markets, driving growth.
E-commerce Sales Surge: E-commerce sales increased 206% in Q4 2024, representing 55% of total revenue for the quarter.
Municipal Program Success: Successful municipal programs in New York City and Baltimore, with orders received for Evolv products.
Warehousing and Distribution Expansion: Expansion into warehousing and distribution sectors, with significant orders from major companies.
Global Distribution Agreements: International distribution agreements signed in 10 countries, with product approvals in several regions.
Evolv Launch Success: Launch of Evolv in ACE Hardware stores and positive reception from big box retailers, indicating strong market interest.
Enhanced Manufacturing Efficiency: Improved manufacturing operations leading to higher gross margins and production capacity, supporting future demand.
Negative
Evolv Product Line Dependency: Revenue growth is heavily reliant on the new Evolv product line, indicating potential vulnerability if market acceptance wanes.
Limited Market Penetration: Despite a 70% increase in quarterly revenues, the total revenue for the year was only $1.9 million, suggesting limited overall market penetration.
Sales Decline Risk: The company reported a significant decline in sales of its historical ContraPest product, down 51%, indicating a potential risk in transitioning customers to new products.
Cash Burn Reduction Efforts: The company is experiencing cash burn of $1.5 million per quarter, which they aim to reduce to $1 million, highlighting ongoing financial strain.
E-commerce Dependency Concerns: The reliance on e-commerce for 55% of Q4 sales raises concerns about sustainability and market diversification.
Product Development Pause: The company has paused new product development to focus on existing products, which may limit future growth opportunities.
Approval Delays Impact Revenue: The need for state and local approvals for product deployment can delay revenue generation, creating uncertainty in growth forecasts.
Earnings call transcript: SenesTech Q4 2023 sees revenue surge, stock up
SNES.O
-8.75%