By M. Marin
READ THE FULL SNES RESEARCH REPORT
Focus on large-scale B2B opportunities across targeted verticals to increase recurring revenues
SenesTech, Inc. (NASDAQ: SNES) is a leader in rodent birth control solutions, with patented products that provide proven long-term and sustainable rodent population management. SNES’s growing portfolio of products, which can be integrated into existing management programs or used independently, are marketed under the brands Evolve™ and ContraPest®. The company believes the market opportunity for its products is significant and growing.
Controlling sales and distribution channels, including managing Amazon and Shopify sales
Management has transformed the company over the past year under a disciplined strategy designed to build long-term sustainable growth. The initial step to drive revenue was to strengthen its direct-to-consumer (DTC) business, including bringing the Amazon and Shopify operations under its direct control. SenesTech believes that strengthening its control of the customer channel improves its ability to capture more value and retain a greater portion of e-commerce economics as adoption of its growing product line expands. SNES has also redesigned the e-commerce section of SenesTech.com in order to improve the customer experience, simplify navigation, boost conversion rates, and support subscription growth, as well as refreshed its packaging to improve online and shelf visibility and strengthen the consumer understanding of what differentiates its product line.
These changes have enabled SenesTech to boost awareness of the Evolve™ brand and educate the market, which is important as rodent fertility control represents a new pest management category. Controlling customer channels is also expected to help SNES establish credibility for its products towards the goal of generating recurring subscription revenue and gaining valuable customer insights that could inform marketing, product development, inventory planning, and commercial initiatives in the future.
SenesTech is optimistic about the traction it is seeing with its DTC and subscription measures — April 2026 e-commerce sales advanced 163% year-over-year. With a product portfolio expected to appeal to the consumer, professional, corporate, and government market segments, the company believes its recent initiatives support consumer revenue growth and also lay the groundwork for B2B (business-to-business) growth, which is a core goal for SenesTech. SNES’s investments in new initiatives and in digital marketing and building its brands are designed to support product adoption across targeted B2B verticals (see below).
Specifically, management’s objective is for the Evolve® brand to have brand recognition and be understood and trusted. SNES’s B2B strategy encompasses increased focus on large-scale opportunities across targeted verticals as SNES now begins to accelerate the expansion of its B2B business through a professional sales organization focused on the eight key verticals where it believes Evolve™ and ContraPest® provide differentiated value. Management views the relationship between DTC and B2B as two connected important elements of its growth strategy and believes its initiatives and increased focus on large-scale B2B opportunities across targeted verticals strengthen its opportunity to grow across these sectors and also to grow its subscriber base and recurring revenue, which are also key objectives.
In addition, by growing its subscription base, the company expects to demonstrate proof of concept about the effectiveness and stickiness of its brands as it grows recurring revenues, while concurrently lowering cash burn. SNES also expects to build an expanding database around successful deployments of its products and that, in turn, the data will enable the company to perform data analytics and support the launch new strategic services, described below. When the company reports 2Q26 results, scheduled on August 5, 2026, we expect greater visibility into the ongoing execution of growth initiatives.
New experienced sales team to develop & grow large-scale long-term B2B relationships
SNES recently appointed an Executive Vice President of Sales, Jack Karabees. He has more than three decades of experience building and leading professional B2B sales organizations and helping companies scale their sales activities to target large customers. As EVP of Sales for SenesTech, he will lead the sales team and be responsible for driving revenue growth, expanding market penetration, and strengthening customer relationships across key verticals. Through his prior experience, he has demonstrated the ability to develop and scale professional B2B sales teams. He also has developed an understanding of the specific needs of SenesTech as it seeks to scale its business and develop sustainable long-term relationships with large players in key verticals and drive recurring revenue. Mr. Karabees has been working closely with SenesTech as a consultant and, reflecting SNES’ CEO’s prior work experience with Mr. Karabees, the company is optimistic that his experience and leadership will help SNES leverage opportunities across several key B2B verticals and accelerate revenue growth.
To improve sales effectiveness, strengthen customer relationships, shorten sales cycles, and improve conversion rates across all commercial channels, new sales efforts include developing:
- Dedicated sales presentations with information specific to the specific vertical
- Industry-specific value propositions and case studies, including ROI examples and models
- Technical support materials
Targeting key customer verticals and developing relationships with large players
Initially, the sales team will focus on key sectors where demand for rodent control is significant and expected to rise. There are several important verticals where rodent infestations cause severe challenges that often drive up costs and can damage outputs and sales. In terms of SNES’s initial focus, the company intends to target:
Strategic Verticals SNES Has Identified as Initial Targets for B2B Development Activities
- Third Party eCommerce
- Pest Management
- Commercial
- Agribusiness
- Zoo and Sanctuary
- Government
- Retail
- International
These are among several important verticals where rodent infestations cause severe challenges that often drive up costs and can damage outputs and sales. For example, demand for control solutions from agricultural companies is generally expected to increase, reflecting substantial economic losses rodent infestations cause, including crop damage, grain silo and other food contamination, among other challenges.
Governments, particularly cities and municipalities, also are challenged by rodent populations, as rodents generally are attracted to congested areas where access to food is fairly concentrated and easy to obtain, which, in turn, facilitates the growth of rodent populations. The problem is expected to increase, as urbanization and population growth also contribute to increases in waste production, further attracting rodents. In turn, this can create issues for public health. SNES has demonstrated the effectiveness of its products. Deployments in two urban study areas produced measurable reductions in rodent activity within five months, including a 79% decline in rat activity at one site and a greater than 50% decline at a second one.
Rodent populations can create other problems, as well, such as food contamination and waste that can also exacerbate food security issues, among other issues. This makes it critical for certain industrial and logistics players to take steps to contain rodent populations, including those involved in warehousing and distribution of food and other products. Zoos also need to contain rodent populations, as rodents, attracted by abundance of food, can cause harm to the animals and infrastructure. These are just a few areas where opportunities for SNES products are expected to be significant.
Successful Evolve® deployment at a Texas 400-acre farming operation
This month, the company announced successful results from the use of Evolve® Rat Birth Control™ at a 400-acre farming operation in Dalhart, Texas. Rodents had been causing damage to underground irrigation infrastructure the farm uses for sustainable water management, but rodents had been chewing through and damaging underground irrigation tape, which caused damage and higher spending for repairs and monitoring. Following deployment of Evolve, the farm experienced a substantial reduction in rodent activity and irrigation tape damage. During the most recent reporting period, onsite observations indicated rodent activity.
SenesTech has also initiated conversations with other agriculture companies and is optimistic about the opportunities. The agricultural irrigation market in the United States represents a multi-billion-dollar sector across millions of acres of crop production, particularly in water-sensitive regions in the Southwest, Texas, California, and the Great Plains, according to SNES.
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