Interim report January – September 2023
Press release: Uppsala, October 26, 2023. Senzime AB (publ):s interim report for January – September 2023 is now available on the company's website www.senzime.com.
Financial information July – September 2023
- Net sales amounted to TSEK 9,154 (3,720), an increase of 146 percent. Sales of instruments/others TSEK 4,510 (1,201), an increase of 275 percent. Sales of disposables TSEK 4,644 (2,519), an increase of 84 percent.
- Gross margin excl. amortization was 69.4 percent (69.6).
- EBITDA amounted to TSEK -25.477 (-24.727).
- Earnings per share SEK -0.33 (-0.41).
- Cash and cash equivalents as of September 30, TSEK 69,735 (58,389).
Financial information January – September 2023
- Net sales amounted to TSEK 24,904 (9,484), an increase of 163 percent. Sales of instruments/others TSEK 12,026 (5,083) an increase of 137 percent. Sales of disposables TSEK 12,878 (4,402), an increase of 193 percent.
- Gross margin excl amortization was 69.3 percent (60.5).
- EBITDA amounted to TSEK -82,138 (-80,895).
- Earnings per share SEK -1,16 (-1,37).
CEO comment:
Strong growth and secured long-term financing
It has been another eventful and strong quarter for Senzime. We continue to report strong growth and net sales increased by 146 percent to SEK 9.2 million. Our best quarter ever. 12-month rolling sales are just under SEK 30 million, a threefold increase compared to the same period last year. The sales volumes at the end of the third quarter were even higher with a 12-month run rate of around SEK 50 million.
Sales growth is driven by new strategic hospital orders and recurring sales of disposable sensors to the installed base of TetraGraph systems. Sales of disposable sensors have almost tripled this year, which is an important signal that the utilization rate of the TetraGraph systems is gradually increasing. The reported utilization rate fell slightly during the quarter, which is a function of many new monitors being delivered.
The gross margin is in line with expectations and amounted to 69.3 percent before depreciation during the first nine months of the year, to be compared with 60.5 percent during the same period last year. This is the result of product mix, licensing income and an efficient production process.
The important US business continues to develop well and during the quarter we won several important hospital contracts for the TetraGraph system. The contracts are all the result of extensive clinical and competitive evaluations. We win by offering the most clinically relevant, user-friendly and long-term sustainable solutions. Nevertheless, our complete product offering, our team and our commitment to increased patient safety are valued. Senzime is perceived as the reliable, long-term supplier with the ability to efficiently carry out large-scale implementations.
Major US business wins include a leading university hospital system in Southern California, a top-10 ranked hospital system in Northern California, as well as a contract with one of America's leading healthcare providers and not-for-profit health systems, known as Integrated Delivery Networks, or IDN, which provides healthcare to several million members. These individual deals alone correspond to the production volume and delivery targets of TetraGraph systems and sensors that we announced at the beginning of the quarter.
Other markets also report solid growth. Our sales organization in Germany continues to secure wins of hospital accounts. The deals usually start with a small number of monitors but gradually grow over time. We also note increasing interest in the ExSpiron system through our sales channels, but sales cycles are currently longer than for TetraGraph.
A catalyst of growth are the new clinical guidelines that were published last winter, which now accelerate the transition to quantitative and algorithm-based monitoring of neuromuscular function in every operating room. We just wrapped up the large annual ASA 2023 congress and the interest in Senzime and our solutions was record high.
During the third quarter, we carried out two successful and efficient private placements for a total of SEK 173 million. We were able to raise the capital without discount and attract long-term investors such as the Crafoord family and the Crafoord Foundation, SHB Fonder, Carnegie Fonder, Swedbank Robur, AP4 and Segulah Medical Acceleration. The capital gives us continued power to grow towards profitability. At the same time, margins and operating costs continue to be optimized and once again we report a quarter with reduced adjusted operating costs.
Senzime has a growing share of American investors and interest in the company has rapidly increased in the US market. I expect that we will be approved for trading on the OTCQX list in New York already at the end of October, which will open the way to more easily trade in our share in the US beyond our Nasdaq Stockholm listing.
The truly commercial breakthrough for Senzime is happening here and now. It has been a long journey and today Senzime is the only supplier offering a comprehensive portfolio of neuromuscular monitoring solutions that meet the new clinical guidelines for adults, pediatrics, and patients with sensitive and delicate skin.
The focus continues to be profitable growth, drive up the utilization rate of our systems, lead in innovation and scale up with the support of smart partnerships. I look forward to sharing more exciting news along the way.
This press release only contains parts of the full interim report release that is published on Senzime's website: www.senzime.com.