Senseonics (SENS) Q3 2024 earnings summary

Executive summary

• FDA approval and U.S. launch of Eversense 365, the first 365-day CGM system, marked a pivotal milestone with strong early demand and record lead generation, including initial commercial patient insertions by Mercy Health and broad insurance coverage.

• Transition from Eversense E3 to Eversense 365 impacted inventory and sales, with Q3 revenue reflecting pre-launch sales and full impact expected in Q1 2025.

• Strategic focus on expanding insertion networks, digital marketing, and hospital integrations, including acquisition of Nurse Practitioner Group's assets and establishment of Eon Care subsidiaries.

• Raised over $20 million in equity offerings and executed restructuring to reduce 2025 cash operating expenses by $10 million.

Financial highlights

• Q3 2024 net revenue was $4.3 million, down from $6.1 million year-over-year, due to inventory reductions and transition charges; U.S. revenue was $2.4 million and international revenue $1.9 million.

• Q3 2024 gross loss was $4.1 million, compared to a gross profit of $1.2 million in Q3 2023, driven by $4.8 million in one-time transition charges.

• Net loss for Q3 2024 was $24 million ($0.04 per share), nearly flat year-over-year.

• Cash and equivalents totaled $74.8 million as of September 30, 2024; debt and accrued interest were $55.9 million.

• Raised over $20 million in gross proceeds in Q3 and early Q4, including a $16 million offering in October.

Outlook and guidance

• Full-year 2024 global net revenue expected to be approximately $22 million, with sales acceleration anticipated in Q4 as Eversense 365 launches.

• U.S. new patient starts projected to more than double and global installed base to increase by about 50% in 2024 versus 2023.

• Gross margins for 2024 expected in the 10%-15% range, excluding $4.8 million in one-time charges; margins projected to approach 30% in 2025 and potentially reach 50% longer-term.

• Operating expenses for 2024 expected between $77.5-82.5 million; 2025 cash operating expenses to decrease by $10 million due to restructuring.

• Management expects continued losses and negative cash flows in the near term, with additional funding required to sustain operations beyond Q3 2025.