Energous Corporation (WATT)

Energous Corporation: A Detailed Analysis

Company Profile:

History and Background:

• Founded in 2012 by Steve Rizzone and Michael Leabman.
• Initial focus on wireless power transmission technology for small electronics.
• Publicly traded since 2014.
• Headquartered in San Jose, California.

Core Business Areas:

• Wireless charging technology for various applications, including smartphones, wearables, medical devices, and IoT solutions.
• Intellectual property portfolio with over 150 patents granted and over 300 patents pending.
• Partnerships with major companies like Dialog Semiconductor, Samsung, and Pegatron.

Leadership Team:

• CEO: Stephen Rizzone (Founder and CTO)
• CFO: Michael Leabman (Founder and COO)
• President and COO: Cesar Johnston
• SVP of Engineering: Jeff Shepard
• VP of Marketing and Communications: Melissa Schoeb

Top Products and Market Share:

Products:

• WattUp® Mid-Field Wireless Charging Platform: A mid-field wireless charging platform that can charge multiple devices simultaneously over distances of up to 15 feet.
• WattUp® Near-Field Wireless Charging Technology: A near-field wireless charging technology that can be integrated into devices for seamless charging.

Market Share:

• Global wireless charging market share: Estimated to be less than 1%.
• Faces stiff competition from established players like Qi and PMA.

Total Addressable Market:

The global wireless charging market is estimated to reach $29.3 billion by 2027. The US market is expected to reach $11.7 billion by 2027.

Financial Performance:

Recent Financial Statements:

• Revenue for Q2 2023: $0.5 million
• Net loss for Q2 2023: $5.2 million
• Profit margin: Not applicable (company is not yet profitable)
• EPS for Q2 2023: $(0.07)

YoY Comparison:

• Revenue increased 150% compared to Q2 2022.
• Net loss increased 33% compared to Q2 2022.

Cash Flow and Balance Sheet:

• Cash and cash equivalents as of June 30, 2023: $10.3 million
• Total liabilities as of June 30, 2023: $25.5 million
• Current ratio as of June 30, 2023: 0.4

Dividends and Shareholder Returns:

• No dividend history.
• Shareholder returns: Negative over all time periods.

Growth Trajectory:

Historical Growth:

• Revenue has grown significantly in recent years but remains relatively low in absolute terms.

Future Growth Projections:

• Company expects to see significant revenue growth in the coming years as adoption of wireless charging technology increases.
• Key growth drivers include smartphone integration and expansion into new markets like medical devices and IoT.

Recent Product Launches and Strategic Initiatives:

• Launched WattUp® Radio Frequency (RF) technology for medical device applications.
• Secured design wins with major smartphone manufacturers.
• Established partnerships with leading wireless charging ecosystem players.

Market Dynamics:

Industry Trends:

• Increasing adoption of wireless charging technology.
• Growing demand for wireless charging solutions for various applications.
• Advancements in wireless charging technology, including higher power and efficiency.

Competitive Landscape:

• Key competitors include:
  • Qualcomm (QCOM)
  • Broadcom (AVGO)
  • Texas Instruments (TXN)
  • Infineon Technologies (IFNNY)

Challenges and Opportunities:

Challenges:

• Achieving profitability and positive cash flow.
• Competing with larger and more established players.
• Educating consumers on the benefits of wireless charging technology.

Opportunities:

• Growing market for wireless charging solutions.
• Increasing demand for wireless charging in emerging markets.
• Potential for new partnerships and strategic acquisitions.

Recent Acquisitions:

No acquisitions have been made in the past 3 years.

AI-Based Fundamental Rating:

Rating: 4/10

Justification:

• Strong intellectual property portfolio and innovative technology.
• Partnerships with major industry players.
• Growing market for wireless charging.

Challenges:

• Not yet profitable.
• Faces stiff competition.
• Limited market share.

Sources and Disclaimers:

Sources:

• Energous Corporation financial reports and press releases.
• Market research reports from IDC, Gartner, and others.

Disclaimer:

The information presented in this overview is intended for informational purposes only and should not be construed as financial advice. Please consult a financial professional before making any investment decisions.