- SenesTech reported record Q1 2024 revenue of $415,000, an increase of 78% compared to Q1 2023 and a 41% sequential increase from Q4 2023
- The company attributes this growth to the introduction in January 2024 of Evolve(TM), its soft-bait product featuring breakthrough, next-generation technology that targets rat populations by using non-lethal methods to restrict fertility
- SenesTech is anticipating additional growth following the completion of an efficacy study providing data requested by certain state and international regulators, as this could open new markets that were previously inaccessible
- In May, the company also launched Evolve(TM) Mouse, a soft-bait product to control mouse infestations; SenesTech expects Evolve(TM) Mouse, which doubles its addressable market opportunity, to be a key driver of growth throughout the rest of the year
SenesTech (NASDAQ: SNES), the provider of a one-of-a-kind technology for controlling animal pest populations through fertility control and the only manufacturer of commercially available, EPA-registered Rat Birth Control(R), recently announced financial results for the first quarter of 2024, ended March 31, 2024, and released operational highlights (https://ibn.fm/kxzyA). During this reporting period, the company reported record revenue of $415,000, a year-over-year increase of 78% compared to the first quarter of 2023. This was also a 41% increase sequentially from the fourth quarter of 2023.
“The key driver [for this growth] has been the introduction of Evolve(TM), our all-new soft-bait product launched in January of this year, which has quickly become the company’s biggest selling product, contributing more than 50% of the first quarter revenue,” said SenesTech President and CEO Joel Fruendt during a conference call accompanying the release of the results.
But Fruendt noted that this “outstanding growth reflected regulatory approval of Evolve in only 30 states,” pointing to the potential for even more growth in the future. “There were several states, including high potential states such as Florida, that required an efficacy study before approval. That efficacy study is now complete, which bodes well for acceptance by the remaining states and further accelerated growth in Q2,” explained Fruendt.
Completed at an independent research facility in April, the efficacy study yielded positive results, which confirmed a significant reduction in litter size through only one breeding cycle. Describing these results, Fruendt said, “This indicates a 50% reduction in population over six months, compared to leaving the population untreated and 90% plus after one year integrated into an IPM program. We will now start some longer-term field trials at customer locations, and we fully expect the efficacy to increase significantly over multiple litters with increased consumption and real-world conditions.”
The company expects Evolve to be the product of choice for rodent population control, especially now that the efficacy study has provided the data requested by certain state and international regulators. And with the New York City Council introducing a proposal for the deployment of “EPA-approved rat birth control” to address rat infestations, SenesTech appears well poised as the only manufacturer of such product, given the city’s high visibility.
Evolve is the first and only soft bait product featuring breakthrough, next-generation technology that targets rat populations by using non-lethal methods to restrict fertility. The product focuses on the rapid reproduction of rats by reducing or eliminating the fertility of rats, thus addressing the fundamental driver of rodent overpopulation. In addition, it has a shelf life of one year, making it an excellent rodent control product for distribution, and is available at a competitive price compared to traditional rodenticides, according to Fruendt.
“Evolve has proven to be a very versatile product that is perfect for many distribution channels that focus on our target market. To keep focus on each of these areas, we have developed our six-channel strategy for distribution. Our six channels are e-commerce, international, agri-business, pest management, industrial, and retail,” explained Fruendt.
Accordingly, SenesTech has secured distribution, stocking agreements, and initial purchase orders with several grain management and open-field agricultural distributors, and expanded agreements with leading distributors in the pest management industry, including DIY Pest Control and Veseris. SenesTech has also extended its geographic reach, with opportunities in Australia, Hong Kong, Macau, New Zealand, Singapore, The Netherlands, and the United Arab Emirates (“UAE”).
Moreover, SenesTech is launching a dedicated Amazon store in May to expand distribution to the do-it-yourself market. The company has also expanded its sales and marketing efforts through agreements with manufacturers’ rep groups to bring its products to retailers and industrial suppliers, who will, in turn, potentially provide access to the facilities management and food safety markets.
Another key highlight for the company was the launch of Evolve Mouse, a soft-bait product that utilizes the same revolutionary breakthrough fertility solution as Evolve to control mouse infestations. Product shipments began in May 2024, with DIY Pest Control committing to a sizable pre-order. The company expects Evolve Mouse to be a key driver of growth throughout the rest of the year.
“[Evolve Mouse] effectively doubles our addressable market opportunity. It has been estimated that U.S. rodent pest management product sales, over half of which target mouse infestations, are more than $1 billion annually and growing,” explained Fruendt. He separately noted in the press release announcing the Q1 2024 results that Evolve Mouse, SenesTech’s first population control solution outside of rats, highlights the first step in the company’s long-term product evolution roadmap to bring fertility control solutions to a wide variety of animal pests.
“We are extremely pleased with the progress the team has made in 2024 and look forward to the positive impact the many recent initiatives we have implemented will produce,” concluded Fruendt in the press release.
To listen to the recorded webcast of the conference call, visit https://nnw.fm/LRBbT https://ibn.fm/ho7Vv (registration required).
For more information, visit the company’s website at www.SenesTech.com.
NOTE TO INVESTORS: The latest news and updates relating to SNES are available in the company’s newsroom at https://ibn.fm/SNES
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