Senzime (SEZI) Q2 2024 earnings summary

Executive summary

• Achieved 76% year-over-year sales growth in Q2 2024 to SEK 14.9 million, with US sales up 167% and over 40 new hospital contracts, including major wins with Veterans Affairs and top US pediatric and robotic surgery hospitals.

• Secured first US GPO contract as sole supplier, expanded installed base to over 2,600 monitors, and shipped nearly 50,000 sensors in the quarter.

• Published clinical study validating TetraGraph's accuracy and granted new European patent for noise-canceling technology, with IP 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, up 76% year-over-year; US market represented 74% of sales, with disposables accounting for 56% and up 92%.

• Gross margin before depreciation: 63.3% in Q2, impacted by product mix and one-off adjustments; rolling 12-month gross margin ranged from 53% to 70%.

• EBITDA for Q2: SEK -29,239k; profit after financial items Q2: SEK -34,259k.

• Cash and cash equivalents at June 30: SEK 80,184k.

Outlook and guidance

• Short-term guidance targets SEK 250–350 million in revenues and cash flow positivity by 2026; long-term ambition to exceed SEK 1 billion in revenues within 5–7 years.

• 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.