Senseonics (SENS) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew over 18% year-over-year to $4.9 million, driven by U.S. expansion, new patient growth, and strategic initiatives including partnerships and the launch of Eon Care Services.

• Net loss for Q2 2024 was $20.3 million ($0.03/share), a slight improvement from $20.4 million in Q2 2023, aided by lower R&D expenses.

• The company advanced FDA review and operational readiness for the 365-day CGM system, targeting a Q4 2024 launch.

• Strategic partnerships, such as with Mercy Health System, and the creation of Eon Care Services, are driving operational improvements and access.

• The company continues to focus on commercializing Eversense CGM systems, advancing next-generation products, and expanding patient access initiatives.

Financial highlights

• Q2 2024 net revenue was $4.9 million (up 18% year-over-year); U.S. revenue was $3.0 million, international $1.9 million.

• Gross profit for Q2 was $0.3 million, down from $0.4 million last year, with gross margin declining to 6.1% due to higher fixed manufacturing costs.

• Operating loss for Q2 was $19.5 million, slightly improved from $19.9 million in Q2 2023.

• Cash, equivalents, and short-term investments totaled $84.9 million as of June 30, 2024; debt and accrued interest was $56.2 million.

• Q2 2024 EPS was $(0.03); working capital as of June 30, 2024 was $29.7 million.

Outlook and guidance

• Full-year 2024 global net revenue expected between $22 million and $24 million.

• U.S. new patient starts projected to more than double; global installed base to grow ~50% in 2024.

• Q3 revenue expected to decrease due to inventory transition, with acceleration in Q4 from the 365-day product launch and Mercy collaboration.

• Full-year gross margins expected at 10%-15%, excluding one-time transition charges; operating expenses projected at $77.5-$82.5 million.

• Management does not expect existing cash and equivalents to be sufficient to fund operations and meet debt covenants through Q2 2025; additional funding will be required.