Please ensure Javascript is enabled for purposes of website accessibility

What You Need to Know About Senseonics Holdings' Q1 Earnings Update

By Keith Speights – May 10, 2019 at 6:00AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The continuous glucose system (CGM) maker posted solid revenue growth but missed Wall Street's revenue and earnings estimates.

Senseonics Holdings, Inc. (SENS -0.75%) reported rapidly improving financial performance when it announced fourth-quarter results in March. Revenue increased by 148% year over year.

Investors wondering if Senseonics could keep the momentum going got their answer on Thursday. The continuous glucose monitoring system (CGM) maker announced its first-quarter results after the market closed. Here's what you need to know from the company's quarterly update.

Doctor writing DIABETES with a black marker.

Image source: Getty Images.

By the numbers

Senseonics' top-line performance improved in the first quarter. Revenue rose 17% year over year, to $3.4 million. However, analysts were expecting that the company's revenue for Q1 would be close to $4.1 million.

The company's GAAP net loss in the first quarter was $29.4 million, or $0.17 per share. This was a worsening of Senseonics' result compared to the prior-year period, when the company announced a net loss of $22.3 million, or $0.16 per share. The consensus analysts' estimate projected that Senseonics would report a net loss of $0.14 per share.

Senseonics ended the first quarter with cash, cash equivalents, and short-term investments of $103.7 million. This reflected a decrease from the $136.8 million on hand as of the end of 2018.

Behind the numbers

Revenue grew this year in part because of the newly launched Eversense Bridge Patient Access Program in March 2019. This program assists patients in confirming insurance benefits and obtaining pre-authorizations before sensor placement. It also works with patients' healthcare providers' offices on the appeals of denied claims. Senseonics CEO Tim Goodnow stated that this launch is "enabling additional opportunities to get in front of the largest national payors."

Senseonic's bottom line didn't improve, however, compared to the prior-year period. The company's operating expenses increased significantly over the first quarter of last year. The main culprit was that sales and marketing expenses jumped 276.5%, to $12.8 million, because of the expansion of the company's U.S. sales force.

The company also mentioned a couple of other notable achievements in its Q1 update. Senseonics received a positive coverage decision for the Eversense CGM from Germany's largest payor, Techniker. The company also began integrating its Eversense CGM data with the Glooko platform. This integration provides patients and providers information that they can use for managing diabetes based on patients' personal glucose profiles. 

Looking ahead

Senseonics projects that revenue for full-year 2019 will be between $25 million and $30 million. The midpoint of this range reflects a 45% year-over-year increase.

Investors can also look for more positive results from Senseonics' Eversense Bridge Patient Access Program. Goodnow thinks the company will be able to continue "building on this momentum" in the future.

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Senseonics Holdings, Inc. Stock Quote
Senseonics Holdings, Inc.
$1.32 (-0.75%) $0.01

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.