Senestech (NASDAQ:SNES) Announces Earnings Results

Senestech (NASDAQ:SNES) posted its earnings results on Wednesday. The company reported ($0.35) EPS for the quarter, topping analysts’ consensus estimates of ($0.37) by $0.02, FiscalAI reports. The company had revenue of $0.77 million for the quarter, compared to the consensus estimate of $0.60 million. Senestech had a negative return on equity of 67.60% and a negative net margin of 304.22%.

Here are the key takeaways from Senestech’s conference call:

• Record revenue and e-commerce growth: Q2 revenue rose 56% sequentially to $770,000, led by e-commerce revenue up 186% to $511,000. Amazon revenue increased 473% sequentially to $349,000 after the channel was brought in-house.
• Recurring revenue momentum strengthened: Subscription revenue increased 89% sequentially and 142% year over year to a record $104,000, while combined Amazon and company-site subscribers rose 117%. July e-commerce revenue and subscription revenue reached additional records.
• Gross margins reached a company record: Gross margin improved to 73.6% from 68.5% in Q1 and 65.5% a year earlier, reflecting a more favorable channel mix, pricing discipline, and lower raw-material costs. Adjusted EBITDA loss improved 15% sequentially to $1.4 million.
• Management is rebuilding the B2B organization: Core B2B revenue increased 11% sequentially and 14% year over year after excluding unusual prior-period orders, but reported B2B revenue declined to $259,000. New sales and marketing hires are targeting larger opportunities across pest management, commercial, agriculture, government, and other verticals, with management expecting the strategy to require additional time to demonstrate results.
• Cash remains a key risk: Senestech ended the quarter with $5.1 million in cash and said its current resources should fund operations for at least nine months. The company continues to report significant losses and acknowledged that additional capital may be needed before reaching profitability, although it provided no fundraising guidance.

Senestech Price Performance

Shares of SNES traded down $0.36 during trading hours on Thursday, reaching $1.27. 286,666 shares of the company traded hands, compared to its average volume of 74,441. The stock has a market capitalization of $6.73 million, a PE ratio of -0.67 and a beta of 0.28. The stock has a fifty day simple moving average of $1.52 and a 200 day simple moving average of $1.73. Senestech has a fifty-two week low of $1.15 and a fifty-two week high of $5.42. The company has a quick ratio of 7.79, a current ratio of 8.91 and a debt-to-equity ratio of 0.02.

Insider Transactions at Senestech

In other news, major shareholder Glenbrook Capital Management bought 35,000 shares of Senestech stock in a transaction on Monday, July 20th. The shares were bought at an average cost of $1.47 per share, for a total transaction of $51,450.00. Following the acquisition, the insider owned 1,057,824 shares in the company, valued at approximately $1,555,001.28. This trade represents a 3.42% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. In the last 90 days, insiders have bought 143,773 shares of company stock valued at $224,802. 2.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Senestech

Institutional investors and hedge funds have recently modified their holdings of the company. Geode Capital Management LLC acquired a new stake in Senestech during the second quarter worth approximately $59,000. Jane Street Group LLC acquired a new position in Senestech in the 2nd quarter valued at $161,000. Millennium Management LLC acquired a new position in Senestech in the 3rd quarter valued at $126,000. Renaissance Technologies LLC lifted its stake in shares of Senestech by 35.2% during the 4th quarter. Renaissance Technologies LLC now owns 142,800 shares of the company’s stock worth $306,000 after purchasing an additional 37,165 shares during the period. Finally, DRW Securities LLC lifted its stake in shares of Senestech by 171.1% during the 4th quarter. DRW Securities LLC now owns 82,107 shares of the company’s stock worth $176,000 after purchasing an additional 51,818 shares during the period. Hedge funds and other institutional investors own 5.19% of the company’s stock.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings upgraded shares of Senestech from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Friday, July 10th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Hold”.

About Senestech

SenesTech, Inc (NASDAQ: SNES) is a biotechnology company specializing in non-lethal pest management solutions. The company’s core focus is the development and commercialization of fertility-based control methods for commensal rodents, providing an alternative to traditional rodenticides. By targeting the reproductive cycle of rats, SenesTech aims to reduce rodent populations over time without the use of toxic chemicals, offering a more sustainable approach for pest management professionals.

The company’s flagship product, ContraPest®, is an EPA-registered liquid bait that disrupts rodent reproduction.