Senseonics (SENS) Q3 2024 earnings summary

Executive summary

• FDA approved and launched Eversense 365, the first 365-day CGM system, with strong early demand and positive feedback from patients and clinicians.

• Mercy Health became the first hospital system to adopt Eversense 365, completing the first commercial patient insertion and targeting up to 30,000 potential beneficiaries.

• Transition from Eversense E3 to Eversense 365 impacted inventory and sales, with record lead generation and commercial payer adoption remaining strong.

• Over $20 million was raised in equity offerings, and restructuring was executed to reduce 2025 cash operating expenses by $10 million.

• Eversense 365 is covered by nearly all U.S. private insurers and Medicare, with over 300 million lives covered.

Financial highlights

• Q3 2024 net revenue was $4.3 million, down from $6.1 million year-over-year, due to inventory reduction and transition costs.

• U.S. revenue was $2.4 million; international revenue was $1.9 million.

• Q3 gross loss was $4.1 million, compared to a $1.2 million gross profit in Q3 2023, primarily due to $4.8 million in one-time charges.

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

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

Outlook and guidance

• Full-year 2024 global net revenue expected to be approximately $22 million, with sales acceleration anticipated in Q4 as 365 adoption and Mercy Health collaboration ramp up.

• U.S. new patient starts expected 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 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.