Senseonics(SENS) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - In Q4 2024, net revenue was $8.3 million, an increase from$8 million in the prior year period [27] - For the full year 2024, total revenue was $22.5 million compared to$22.4 million in 2023, with US revenue at $15.3 million and revenue outside the US at$7.2 million [35] - Net loss for Q4 2024 was $15.5 million, a decrease from$17.2 million in Q4 2023, primarily due to improved gross profit margins [34] - Full year net loss was $78.6 million, compared to$60.4 million in 2023, with the increase attributed to reduced gains from note exchanges and changes in derivative fair value [39] Business Line Data and Key Metrics Changes - The patient base increased by 56% to approximately 6,000 global patients in 2024, exceeding the target growth of 50% [23] - The number of annual US Eversense prescribers increased by 73% to over 2,400 [24] - Approximately 81% of the patient base switched from other continuous glucose monitors (CGMs) [24] Market Data and Key Metrics Changes - US revenue for Q4 2024 was $6.2 million, while revenue outside the US was$2.1 million [27] - The company anticipates launching Eversense 365 in Europe in the second half of 2025, following the CE Mark approval [12] Company Strategy and Development Direction - The company plans to commercialize Eversense 365 in Europe and continue developing the Gemini and Freedom systems [47] - Focus on expanding relationships with health systems and accountable care organizations to increase access to Eversense [16] - The company is working on transitioning US reimbursement from Eversense E3 to Eversense 365, particularly for the Medicare segment [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in 2025, highlighting the successful initial launch of Eversense 365 as a significant catalyst [46] - The CGM market is viewed as an exciting space with a large opportunity for growth [48] - The company expects full year 2025 global net revenue to be approximately $34 million to$38 million, with a focus on transitioning US patients to Eversense 365 [42] Other Important Information - Gross profit for Q4 2024 was $4 million, an increase from$1.1 million in the prior year period, driven by increased margins on the 365-day product [32] - Research and development expenses for 2024 decreased by $7.6 million from 2023, primarily due to the completion of 365-day product trials [38] - The company received gross proceeds of approximately$27 million from the sale of common stock, extending its cash runway into mid-2026 [41] Q&A Session Summary Question: What should we expect when taking Eversense 365 OUS? - Management anticipates a more gradual inventory stocking in Europe compared to the US [53] Question: What are the observations from the Mercy system regarding 365-day insertions? - There is excitement around the 365 product, with a focus on expanding to primary care physicians to reach more Type 2 patients [55] Question: Clarification on the number of prescribers in the US? - The 2,400 prescribers represent an annual number, while the previous figure was since launch [62] Question: How much revenue growth is expected from international versus the US? - Most growth is expected to come from the US, with significant increases anticipated upon the launch of the 365-day product in Europe [64] Question: Update on reimbursement efforts, especially at Medicare? - Reimbursement is available for Medicare patients, with ongoing work on pricing expected to be resolved in the next quarter [74] Question: Details on the cadence of operating expenses throughout the year? - SG&A expenses are expected to be linear across quarters, with slight increases due to sales commissions from the consignment program [81]