Senzime (SEZI) Q2 2024 earnings summary

Executive summary

• Net sales grew 76% year-over-year in Q2 2024 to SEK 14.9 million, with US sales up 167% and strong recurring sensor sales, including over 40 new US hospital contracts and major wins with Veterans Affairs and top US hospitals.

• Senzime signed its first US GPO agreement as sole supplier to a leading healthcare group, and published a clinical study confirming the accuracy of its TetraGraph system.

• Shipped over 2,600 monitors and nearly 50,000 sensors in the quarter, both nearly double year-over-year.

• Awarded a Veterans Affairs contract, first GPO contract, and a new European patent for noise-canceling technology; patent portfolio nearing 100 patents.

• Expansion in Japan and South Korea contributed to growth, while Europe saw slower adoption due to entrenched legacy technology.

Financial highlights

• Q2 2024 net sales: SEK 14,917k (Q2 2023: SEK 8,462k), up 76%; H1 2024 net sales: SEK 27,037k (H1 2023: SEK 15,750k), up 72%.

• Gross margin before depreciation: 63.3% in Q2 (Q2 2023: 70.0%), impacted by product mix, high US growth, and one-off adjustments.

• EBITDA for Q2: SEK -29,239k (Q2 2023: SEK -30,201k); H1: SEK -53,150k (H1 2023: SEK -56,661k).

• Profit after financial items Q2: SEK -34,259k (Q2 2023: SEK -35,264k); H1: SEK -62,978k (H1 2023: SEK -66,955k).

• Cash and cash equivalents at June 30: SEK 80,184k (June 2023: SEK 41,635k).

Outlook and guidance

• Short-term guidance: target revenues of SEK 250–350 million and cash flow positivity during 2026; SEK 300 million sales target now expected by 2026, not 2025.

• Long-term ambition: exceed SEK 1 billion in revenue within 5–7 years, requiring about 1,500 hospital customers (approx. 10% market share).

• Broadened sales guidance range due to market uncertainty, with expectation to be in the middle of the range.

• Q3 started strong with three-digit growth rate on a rolling 12-month basis; full-year outlook is very positive.

• U.S. market is critical, representing 74-75% of sales and 50% of operating expenses.