Senseonics Holdings, Inc. (NYSEMKT: SENS) 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.
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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.
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.
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