On Monday, BTIG reaffirmed its Neutral rating on Senseonics Holdings shares (NYSE:SENS), following the company's recent business update at the American Diabetes Association (ADA) conference. Senseonics, a medical technology company, has maintained its sales guidance for the first half of 2024 at approximately $10 million, marking a significant increase of about 21% from the first half of 2023.
The company has also set its full-year revenue target between $22 million and $24 million, which falls slightly below the consensus estimate of $26 million. These projections are based on the expectation that new patient starts in the U.S. will more than double in comparison to 2023, and the global installed base will expand by around 50%, rising from roughly 4,000 to about 6,000 by the end of 2024.
Senseonics has already observed a substantial uptick in new patient starts in the U.S., with over 200% more in the first half of 2024 as compared to the same period last year. For the full year 2024, the company is aiming for gross margins between 10.0% and 15.0%, and anticipates operating expenses to be in the range of $77.5 million to $82.5 million, which aligns closely with the figures discussed in the first quarter earnings call.
The anticipated cash usage for the year is projected to be around $70 million, consistent with the levels from 2023. Senseonics expects that the inventory dynamics related to their 365-day, once-weekly calibration Eversense system will influence product sales in the third quarter.
The launch of this system is scheduled for October 1st, which is hoped to significantly boost product sales in the fourth quarter. The full-scale launch of the collaboration with Mercy Health is also expected to positively impact sales in the fourth quarter.
In other recent news, Senseonics Holdings Inc . reported a 22% increase in total revenue, reaching $5.1 million for the first quarter of 2024. The company also announced significant progress in its product pipeline, including an FDA submission for its 365-day system and a partnership with Mercy to implement a remote patient monitoring program. These are recent developments that investors should keep an eye on.
Furthermore, Senseonics plans to launch the 365-day system in the fourth quarter of 2024 and conduct first-in-human testing of its Gemini product later in the year. The company is also preparing to provide full-year financial guidance in June and anticipates $10 million in global net revenue for the first half of 2024.
Senseonics' collaboration with Mercy is anticipated to reach 30,000 eligible patients and is seen as sustainable and scalable. The company's operating expenses are expected to be around $80 million for the full year. As part of its ongoing initiatives, Senseonics continues its commercialization efforts with partner Ascensia and explores system integration with insulin pumps.
InvestingPro Insights
As Senseonics Holdings (NYSE:SENS) forges ahead with its ambitious targets for 2024, key financial metrics from InvestingPro provide additional context for investors. With a market capitalization of $194.84 million, the company's financial health is of particular interest.
An InvestingPro Tip highlights Senseonics' liquidity position, noting that the company holds more cash than debt on its balance sheet, which may offer some reassurance to investors concerned about the company's short-term obligations. Moreover, the company's liquid assets exceed its short-term liabilities, further underscoring its liquidity status.
However, the company's aggressive cash burn and the fact that analysts do not expect profitability this year are points of caution. The financial data reveals a Price / Book ratio of 10.25, indicating a relatively high valuation compared to the company's book value, which can be a point of concern for value-oriented investors.
Senseonics is trading near its 52-week low, which might suggest a potential entry point for investors, but also reflects recent market challenges. The company's revenue growth is a bright spot, with an increase of 29.12% over the last twelve months as of Q1 2024.
Investors looking for a deeper dive into Senseonics' financials and future projections can find more comprehensive analysis and additional InvestingPro Tips at Investing.com. For those considering an InvestingPro subscription, use coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 7 additional InvestingPro Tips available for Senseonics, providing further insights into the company's financial performance and market position.
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