Senseonics Holdings, Inc. Q3 FY2024 earnings call

• On September 17, Senseonics received FDA approval for the Eversense 365, the world's first and only one year continuous glucose monitor. Early feedback from patients and clinicians is positive, and lead generation in the first month of launch exceeded expectations. • Mercy hospital system adopted Eversense 365 as part of a system-wide diabetes solution. • Eversense 365 is covered by nearly all U.S. private insurers and Medicare. • Senseonics' pipeline includes the Gemini sensor with battery power and the Freedom sensor communicating directly with a patient's phone. • Brian Hansen from Ascensia mentioned increasing awareness through optimizing creative efforts and targeting, with healthcare provider and direct to consumer leads increasing by more than 200% in the four weeks post 365 approval. • The first commercial insertion of Eversense 365 took place in early October, with fourth quarter U.S. revenue being a mix of E3 sales and initial 365 shipments, and full impact of 365 revenue in U.S. expected in Q1 2025. • Plan to submit Eversense 365 for CE mark in Europe in the first quarter.

In the third quarter of 2024, net revenue was $4.3 million compared to $6.1 million in the prior year period due to inventory dynamics related to the 365-day product launch. U.S. revenues for the Q3 was $2.4 million and revenue outside the U.S. was $1.9 million. Gross loss in Q3 2024 was $4.1 million, a decrease from a gross profit of $1.2 million in the prior year period. Research and development expenses in Q3 2024 were $10.5 million, a decrease of $2.3 million compared to $12.8 million in the prior year period. Third quarter 2024 selling, general and administrative expenses were $8.3 million, an increase of $0.9 million compared to $7.4 million in the prior year period.

• Full year 2024 global net revenue is expected to be approximately $22 million. • 2024 gross margins are expected to be in the range of 10% to 15%, excluding $4.8 million of one-time charges associated with the transition to the 365-day product. • Expect cash operating expenses for 2025 to decrease by $10 million compared to 2024 due to restructuring efforts. • Confident Eversense 365 revenue growth will accelerate further in 2025 when it will be the only product sold in the U.S.

Q: Brian Langan: A: Rick Sullivan: Q: Vernon Bernardino: A: Rick Sullivan: Yes, Vernon. So we are transitioning the market very quickly. In the U.S. it's pretty much a light switch, right. We're -- if you're up next for a sensor, you're going to go to the 365. Europe of course is going to take a little bit longer because we are seeking the approval to commercialize over there. But it's essentially immediate for obviously all new patients. But anybody that's coming off a 180, their next sensor will be 365.

Q: Vernon Bernardino: A: Rick Sullivan: Thanks for taking my question and congrats on the results looking forward to meeting this third quarter -- I mean the fourth quarter.