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Senzime Interim / Quarterly Report 2024
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Interim / Quarterly Report
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Quarterly report Q2
Senzime AB (publ.) April - June 2024
QUARTERLY REPORT APRIL-JUNE 2024
CEO COMMENT
"Strong growth in the US market, we're gaining market share and our technology is increasingly being established as the new clinical standard in operating rooms around the world"
HIGHLIGHTS
Strong US market growth
Sales in the US market increased by 167% driven by recurring sensor sales and new contract wins. Deals include some of the most prestigious and top-rated hospitals in the United States.
Win of larger Veterans Affairs public tender
Senzime wins another major public procurement from Veterans Affairs Health (VA), the single largest health care provider in the United States.
First signed GPO agreement
Senzime signs its first Group Purchasing Organization (GPO) agreement in the US and becomes so-called. sole source supplier to one of the largest healthcare players in the USA.
New US study strengthens the competitiveness of Senzime's technology
Clinical study published in the leading journal Anesthesiology confirms the leading accuracy and precision of Senzime's TetraGraph system and highlights the variability in data of competing products.
Strengthened patent protection
Senzime receives new European patent for the TetraGraph system. The patent portfolio is now approaching 100 patents.
KPI's
14,9 Million SEK
in net sales
76%
Total sales growth vs. Q2 2023.
US market sales growth
2 632 (1 709)
TetraGraph-Systems delivered to market since start1
48 680 (25 035)
Number of TetraSens disposable sensors sold during the quarter.
370 (259) Hospitals with TetraGraph systems in EU, USA, Japan och South Korea.
167%
vs. Q2 2023
QUARTERLY REPORT APRIL-JUNE 2024
SECOND QUORTER 2024 (1 APRIL – 30 JUNE)
- Net sales amounted to TSEK 14,917 (8,462), an increase of 76 %
- Sales of disposable sensors amounted to TSEK 8,412 (4,390), an increase of 92 %
- In the USA, net sales increased to TSEK 10,973 (4,108), an increase of 167 %
- Currency-adjusted net sales increased by 76 %
- The gross margin before depreciation amounted to 63.3 % (70.0)
- Operating costs amounted to TSEK 39,770 (37,101)
- Operating profit before depreciation amounted to TSEK -29,239 (-30,201)
- The result after financial items amounted to TSEK -34,259 (-35,264)
- Earnings per share amounted to SEK -0.28 (-0.42)
- Cash and cash equivalents as of June 30 th amounted to TSEK 80,184 (41,635)
SIGNIFICIANT EVENTS DURING SECOND QUARTER
- Senzime secures contracts with several leading US hospitals in robotic surgery and monitoring of children undergoing anesthesia.
- Senzime wins another major public procurement from Veterans Health in the USA.
- Senzime signs its first GPO agreement in the US and becomes so-called. sole source supplier to one of the largest healthcare players in the USA.
- Clinical study published in the leading scientific journal Anesthesiology confirming the leading accuracy and precision of Senzime's EMG-based TetraGraph system.
- Senzime receives a new European patent for the TetraGraph system. Senzime wins contract with the most prestigious and highest-rated children's hospital in the United States.
HALF YEAR 2024 (1 JANUARY – 30 JUNE)
- Net sales amounted to TSEK 27,037 (15,750), an increase of 72 %
- Sales of disposable sensors amounted to TSEK 15,668 (8,234), an increase of 90 %
- In the USA, net sales increased to TSEK 20,011 (9,182 KSEK), an increase of 118 %
- Currency-adjusted net sales increased by 71 %
- The gross margin before depreciation amounted to 63.7 % (69.3)
- Operating costs amounted to TSEK 72,576 (69,479)
- Operating profit before depreciation amounted to TSEK -53,150 (-56,661)
- The result after financial items amounted to TSEK -62,978 (-66,955)
- Earnings per share amounted to SEK -0.51 (-0.84)
- Cash and cash equivalents as of June 30 th amounted to TSEK 80,184 (41,635)
SIGNIFICIANT EVENTS DURING FIRST HALF YEAR
- Expansion of the commercial sales organization in the US, a Vice President Global Marketing is added, and the US headquarters is moved from Boston to St. Louis.
- Senzime's licensee Fukuda Denshi launches the first integrated TetraGraph module on the Japanese market.
- Senzime secures its largest US deal to date from leading Houston-based university hospital system with deliveries of more than 300 TetraGraph systems.
- Senzime secures contracts with several leading US hospitals in robotic surgery and monitoring of children undergoing anesthesia.
- Senzime wins another major public procurement from Veterans Health in the USA.
- Senzime signs its first GPO agreement in the USA and becomes the sole source supplier to one of the largest healthcare players in the USA..
EVENTS AFTER THE END OF THE SECOND QUARTER
- Senzime signs new contract with a top-10 ranked health care system (IDN) in the southeastern United States that expands use of the TetraGraph system and is expected to quadruple.
- Senzime provides market update and outlines higher growth ambitions
KPI's SECOND QUARTER 2024
| Q2 | HALF YEAR | TOT YEAR | |||
|---|---|---|---|---|---|
| TSEK | 2024 | 2023 | 2024 | 2023 | 2023 |
| Net Sales |
14,917 | 8,462 | 27,037 | 15,750 | 35,754 |
| EBITDA | -29,239 | -30,201 | -53,150 | -56,661 | -116,793 |
| Profit (loss) after financial items | -34,259 | -35,264 | -62,978 | -66,955 | -137,159 |
| Earnings per share (SEK) | -0.28 | -0.42 | -0.51 | -0.84 | -1.45 |
| Gross margin excl. amortization (%) | 63.3 | 70.0 | 63.7 | 69.3 | 69.8 |
| Solidity (%) | 81.3 | 82.9 | 81.3 | 82.9 | 86.7 |
| Sales Growth (%) |
76.3 | 148.6 | 71,7 | 173,2 | 154,8 |
Net Sales Q2 (MSEK)
Net Sales Total R 12 month TSEK
Total delivered base of TetraGraph-systems 1
Comment: (1) Refers to all accumulated deliveries of TetraGraph monitors to end customers, distributors and partners. Some of the delivered base are still in stock at sales partners or has not yet been installed in a hospital environment
SALES OVERVIEW
| Currency | ||||
|---|---|---|---|---|
| Raported | adjusted | |||
| TSEK H1 Jan-Jun | 2024 | 2023 | Growth | Growth |
| US | 20,011 | 9,183 | 118% | 116% |
| Devices/other | 8,959 | 3,368 | 166% | 163% |
| Disposables | 11,051 | 5,815 | 90% | 89% |
| Europe | 3,613 | 4,364 | -17% | -18% |
| Devices/other | 996 | 2,399 | -58% | -58% |
| Disposables | 2,617 | 1,965 | 33% | 31% |
| RoW | 3,413 | 2,203 | 55% | 59% |
| Devices/other | 1,413 | 1,749 | -19% | -16% |
| Disposables | 2,000 | 454 | 341% | 341% |
| Total H1 |
27,037 | 15,750 | 72% | 71% |
| Devices/other | 11,369 | 7,515 | 51% | 52% |
| Disposables | 15,668 | 8,234 | 90% | 89% |
Accumulated number of disposable sensors sold
This is Senzime.
- Senzime is a global medical technology company that develops algorithm-based patient monitoring systems with the goal of eliminating the risk of complications for over 100 million patients every year. 1.
- Our systems enable precision-based monitoring of patients during and after surgery. It is about ensuring the correct individual dose of anesthesia-related drugs, indicating when it is safe to breathe on your own again and identifying early post-operative complications. 2.
- Our foundation is based on extensive research and collaborations with leading academic institutions such as Mayo Clinic, Harvard, and Massachusetts General Hospital. Our systems meet the requirements of new clinical guidelines in the US, Europe, and many other countries. 3.
- We have a commercial operations covering over 30 markets with subsidiaries in the US and Germany, as well as several licensing and distribution partnerships in other regions. 4.
- …and we are one of the fastest growing medical technology companies on the Nasdaq Main Market Stockholm with long-term institutional owners and a world-class team. 5.
CEO COMMENT
Strong growth in the US market, we are gaining market shares, and our technology is increasingly being established as the new clinical standard in operating rooms around the world
It has been another eventful quarter for Senzime. We continue to report strong growth and net sales increased by 76 percent vs Q2 2023 to SEK 14.9 million. Last year's second quarter included a one-off licensing revenue and excluding that, the sales increase was over 100 percent. This was again another quarter with record sales.
Our US revenue continues to develop strongly with an increase of 167 percent vs Q2 2023 Strategically important new hospital contracts and recurring sales of disposable sensors to the installed base of TetraGraph systems contributed to the growth. The expanded sales organization in the US is proving to be very successful. The utilization rate of systems continues to increase, and we delivered almost twice as many disposable sensors as the previous year.
During the quarter, we secured a total of over 40 new hospital contracts. Many of these contracts are based on extensive competitive clinical evaluations that we have won. We have not lost any clinical evaluation during the quarter to a competitor. I also note the trend in the US with an increased proportion of contracts that we win without needs of evaluations, leading to significantly faster sales processes.
Among the deals we secured during the quarter, it's worth mentioning the tender win from Veterans Affairs, the single largest healthcare provider in the US, contract with the most prestigious and highest-ranked children's hospital in the US, as well as deliveries to robotic surgery rooms within the highest-ranked hospital system in the US.
We signed our first GPO agreement in the USA as sole supplier to one of the largest healthcare players in the US. The procurement agreement validates the hospital market's increased demand for our products, and hospitals within the group can now purchase without the need for further clinical evaluation. The first deals within the agreement came in after the end of the quarter. The GPO agreement is a major victory for our unique technology and our delivery capabilities.
Businesses in Japan and South Korea are also showing good growth. Our Japanese license partner Fukuda Denshi reports success in sales of its integrated module with "TetraGraph inside" launched in the first quarter of this year. The module is the first of its kind powered by our algorithms and sensors and launched as an accessory to Fukuda's extensive installed base of patient monitors. The healthcare strike in South Korea has continued, but despite this we have been able to once again deliver products to the market.
The European market is slow in the conversion from AMG to EMG-based
monitoring. We often enter the hospitals by supplying operating rooms that run robotic surgery and high demands on close monitoring. We then methodically convert room by room. Europe differs from the US market in that AMG-based monitoring has a stronger foothold since the 1990s, which leads to somewhat slower technology change. Further clinical guidelines have been announced in Europe for 2025 and I am confident that the European market will also start to change
Our technology is increasingly becoming established as the new clinical standard.
During the quarter, another important US study was published that validated our technology and highlighted the weaknesses and patient risks of conventional AMG technology. The study comparing our EMG technology with AMG published in the high impact Anesthesiology confirms the leading accuracy and precision of our TetraGraph system.
Our gross margin was slightly affected by the rapid growth in the US with a high proportion of instrument sales during the quarter. These systems will eventually generate recurring sales of higher-margin sensors. Last year's Q2 gross margin was positively impacted by a one-time license fee. We're also continuously investing in the scale-up of our production and during the quarter we moved into new efficient and sustainable premises in Uppsala to meet our long-term growth needs.
Our operating costs were slightly higher mainly due to non-recurring effects
related to our relocation in Uppsala and market launch of new products. We also continue to drive intense innovation work to secure our long-term leading position in the technology shift that is taking place in the market.
The new American and European clinical guidelines published at the beginning of 2023 are catalysts for our business. Over 200 million patients undergo major surgical procedures each year, of which approximately half receive muscle paralyzing drugs as part of anesthesia. These 100 million patients are our target market, and we focus on selling our technology to the approximately 160,000 operating rooms located in the US, Europe, Japan and South Korea. The conversion is partly from AMG-based monitoring solutions that dominate the European market, and partly from manual, subjective monitoring methods that dominate in the USA.
In conjunction with this report, we announced a market update and an outline of our future high growth ambitions The update is the result of a rapidly expanding addressable market, the new supportive EU and US clinical guidelines, and strong clinical adoption of EMG-based neuromuscular monitoring technology in predominately US, Japan and South Korea.
In summary, our mission is to be the undisputed global market leader in the field of EMG-based quantitative neuromuscular monitoring. Our longer 5-7 year growth ambitions are to reach revenues exceeding SEK 1 billion. The shorter-term guidance is to reach revenues of 250-350 MSEK and be cash flow positive during 2026.
The shorter guidance is a 12-month extension of previously communicated targets in 2022. We are surpassing our revenue targets in the US, Japan, and South Korea, but the European market transition to EMG is still advancing significantly slower than expected. Yet at the same time, we're increasing our longer-term ambitions for the company.
The focus and direction of Senzime is crystal clear – we are building the
undisputed market leader in the digital and clinical shift that is now taking place in operating rooms worldwide. The commercial breakthrough for Senzime is a fact. We shall achieve profitability through high market penetration, high utilization rate of our systems, offer the most user-friendly and innovative solutions and scale up with the support of smart, industrial partnerships. Everything is made possible by our brilliant team.
Our pipeline is strong, we are gaining market share, and we note higher demand in the market. Q3 has started strong and if I include sales through July, we are at a three-digit growth rate on a rolling-12 basis, compared to the same seven-month period last year. The outlook for the full year looks very positive, and I can promise exciting things will be announced during the autumn.
Uppsala, Aug 26, 2024
Philip Siberg, CEO
Comments to the report
Revenue and profit in the second quarter 2024
The group's net sales for the second quarter of 2024 amounted to TSEK 14,917 (8,462), corresponding to an increase of 76 percent compared to the same quarter of the previous year. Adjusted for currency changes, sales increased by 76 percent. The growth was primarily driven by increased sales of TetraGraph systems and disposable sensors in the US market and in Asia. For disposable sensors, the US accounts for a 96 percent increase, Europe for a 55 percent increase, and Asia for a 206 percent increase, mainly in Japan and South Korea.
Sales of monitors and accessories increased by 60 percent driven by a number of business wins in the US as well as new deliveries of monitors to our license partner Fukuda in Japan. Sales of disposable sensors increased by 89 percent adjusted for currency changes. In the US, total underlying sales adjusted for currency effects, increased by 163 percent. In the main markets, it was primarily the installed base of monitors that drove sensor sales growth.
The gross margin before depreciation during the second quarter amounted to 63.3 percent, compared to 70.0 percent for the corresponding quarter last year. A decrease is attributable to product and customer mix as well as temporary one-off adjustments to older consumables. The US market is affected by some price pressure on instruments, which has negatively affected the margin compared to the same period last year. We see certain material price increases in our production which we continuously work to balance out with adjusted prices to our customers. We carry out extensive innovation work that aims to continuously launch products that strengthen the gross margin in the long term to levels above 70 percent.
During the second quarter, the group's total operating expenses amounted to TSEK 39,770 (37,101). Direct operating expenses amounted to TSEK 39,574 (41,054) and other operating income and operating expenses, attributable to currency-related recalculations of balance sheet items, amounted to TSEK 196 (-3,953).
The operating profit during the second quarter amounted to TSEK -34,720 compared with TSEK -35,257 in the corresponding quarter of the previous year. Profit after financial items amounted to TSEK -34,259 to be compared with TSEK -35,264 in the corresponding period last year. The loss also decreased in this subperiod, this time by just over SEK 1.0 million compared to the same period last year.
Revenue and profit January – June 2023
The group's net sales for the period January - June 2024 amounted to TSEK 27,037 (15,750), corresponding to an increase of 72 percent compared to the same period last year. Adjusted for currency changes, sales increased by 71 percent, a marginal currency impact as no major currency changes have occurred compared to the corresponding period last year.
The growth was primarily driven by increased sales in the US and Asia. In the US, total underlying sales adjusted for currency effects, increased by 116 percent and Asia grew by 66 percent, adjusted for currency effects. Adjusted for one-off licensing revenue for ExSpiron in China last year, Asia total sales grew 240 percent. In Europe, we are currently seeing negative growth compared to the same period last year, driven by longer sales processes for capital goods. However, sensor sales in Europe increase by 31 percent. On the US market, sensor sales increased by 89 percent and in Asia by 443 percent.
Sales of monitors and accessories increased by 51 percent driven by several new business wins in the US as well as new deliveries of monitors to our license partner Fukuda in Japan. Total sales of disposable sensors increased by 89 percent adjusted for currency changes.
The gross margin before depreciation for the first half of 2024 amounted to 63.7 percent, compared to 69.3 percent for the same period last year. A decrease attributable to product and customer mix as well as temporary one-off adjustments to older consumables. We have also seen price pressure in the US market on capital equipment, which has a temporary negative impact on the margin.
During the first half of 2024, the group's total operating expenses amounted to TSEK 72,576 (69,479). Direct operating expenses amounted to TSEK 76,910 (72,913) and other operating income and operating expenses, attributable to currency-related recalculations of balance sheet items, amounted to TSEK -4,334 (-3,434). The increase in direct operating costs is mostly attributable to building up the US commercial organization with, among other things, investment in the US Marketing VP position and further investments to strengthen the US sales and clinical teams in the USA.
The operating profit during the first half of 2024 amounted to TSEK -64,055 compared with TSEK -66,680 during same period last year. Profit after financial items amounted to TSEK -62,978 to be compared with TSEK -66,955 in the same period last year. The loss decreased for the second quarter in a row and, in total for the period, the loss decreased by approximately SEK 4 million compared to the same period last year.
Cash-flow and Investments
The cash flow from current operations, including changes in working capital, amounted to TSEK -30,884 (-27,972) for the second quarter. The negative cash flow is mostly due to the negative result and negative change in working capital, mostly attributable to increased inventory to ensure increased production and demand for our products as well as an increase in accounts receivable related to increased sales.
The cash flow from investment activities for the first quarter amounted to TSEK -4,685 (-2,298). Investments during the period are largely related to the activation of development projects. The cash flow from financing activities amounted to TSEK -1,057 (-1,100) for the second quarter and is mostly related to payments relating to leasing costs.
The cash flow from current operations including changes in working capital for the period January - June 2024 amounted to TSEK -60,299 KSEK (-61,206). The negative cash flow is mostly due to the negative result and negative change in working capital which is mostly reflected in the increase in accounts receivable due to increased sales as well as increased inventory to ensure increased production and demand for our products.
The cash flow from investment activities for the period January - June 2024 amounted to TSEK -8,274 SEK (-4,343) and is largely related to the activation of development projects. The cash flow from financing activities for the period January - June 2024 amounted to TSEK -2,366 SEK (81,002) and is mostly related to payments relating to leasing costs. Last year's positive cash flow from financing activities is related to a rights issue that Senzime carried out in March 2023, which brought to the company approximately 83 million SEK after issue and guarantee costs.
Financial position
Senzime shows strong sales growth combined with a stable cost level. At the end of the period, the company's cash and cash equivalents amounted to TSEK 80,184 (41,635), the group's equity to TSEK 319,693 (283,912) and the equity ratio 81.3 percent (82.9).
The board works continuously to secure the company's long-term financing to ensure the operation of the business assuming investments and ventures. The company's growth plan is continuously balanced against the financial resources that are available at any given time. The board has a positive view of being able to raise capital or provide other types of funding that are beneficial to the company.
Stock options
At the time of publication of this interim report, the group has three employee option programs with a total of 2,330,000 options, of which 214,000 options have expired. See note 10 for detailed descriptions. Based on the existing number of shares and outstanding employee stock options and warrants, the dilution, if all outstanding options and warrants are exercised for new shares, is calculated to amount to a maximum of 2.05 percent. The corresponding figure excluding hedge options amounts to 1.74 percent.
At the annual general meeting in May 2024, it was decided on another employee option program with a total of 1,200,000 options and allocation will take place during the third quarter of 2024.
Parent company and subsidiaries
The majority of the group's operations are conducted in the parent company. For comments on the parent company's results, refer to the comments submitted for the group. The American company Respiratory Motion Inc. was acquired in the third quarter of 2022 and is a 100 percent wholly owned subsidiary of Senzime AB (publ.). The US subsidiary Senzime Inc. started its operational activities in the second quarter of 2020. Sales in the US are carried out under its own auspices. In the first quarter of 2021, the German subsidiary Senzime GmbH started its operations. The group's two other subsidiaries only hold certain rights which have been licensed to the parent company against payment in the form of royalties.
Sustainability
Senzime's operations contribute to improved global health and patient safety by reducing anesthesia and breathing-related complications and lowering healthcare costs in connection with surgical procedures and emergency treatments. Senzime's sustainability work supports the commitment to patients and strives for sustainable development based on responsible action and in line with the fundamental values.
In 2023, Senzime signed an agreement with the UN Global Compact, which means that the company commits to operating according to their 10 principles, which include labor law, human rights, anti-corruption and the environment. In 2024, the company's ISO 14001 environmental management system was recertified.
Other significant events in the quarter
The dialogue between Senzime's US subsidiary Senzime Inc. and Florida-based Mercury Medical related to a terminated distribution agreement in 2022 has been put on hold.
Significant events after the end of the quarter
Senzime announced that the company signed a new contract with a top 10 ranked Integrated Delivery Network (IDN) healthcare system in the southeastern United States. The contract expands the use of the TetraGraph system from currently only being used on children to now being used on all patients receiving muscle relaxant drugs as part of anesthesia. Annual volumes of disposable sensors are expected to quadruple, and the healthcare system is expanding to have 75 TetraGraph systems installed in operating rooms to safely monitor adults and children.
Senzime announced market update and outlined growth ambitions with goal to be the undisputed global market leader in the field of EMG-based quantitative neuromuscular monitoring, longer-term growth ambitions are to reach revenues exceeding SEK 1 billion, and shorter-term guidance to reach revenues of 250-350 MSEK and be cash flow positive during 2026.
Risks and uncertainty factors
Several risk factors can have a negative impact on the operations of Senzime. It is therefore of great importance to consider relevant risks alongside the company's growth opportunities. An account of the group's significant financial and business risks can be found in the management report and in the annual report for 2023. No further significant risks are deemed to have arisen.
Covid-19 and the geopolitical situation
Like many other companies, Senzime has faced major challenges as a consequence of the Covid-19 pandemic. The basic need for neuromuscular monitoring has not diminished, although operations during the pandemic have been postponed accommodating and allow for the availability of medical personnel. The pandemic mainly affected the number of new trials and sales in the years 2020 and 2021. Access to the hospitals has varied between different countries. However, Senzime has seen increased access to the hospitals since 2022 and full access again since 2023. Senzime has no operations in Russia, Ukraine, Israel or Palestine.
Review
This interim report has not been subject to review by the company's auditors.
Board of Directors' certification
The Board of Directors and CEO certify that this interim report gives a true and fair view of the parent company's and the group's operations, financial position, and results of operations, and reviews the significant risks and uncertainties faced by the parent company and companies in the group.
Uppsala August 26, 2024
| Per Wold-Olsen | Adam Dahlberg | Sorin Brull |
|---|---|---|
| Chairman of the Board | Vice Chairman of the Board | Board member |
| Göran Brorsson | Eva Walde | Lars Axelson |
| Board member | Board member | Board member |
Philip Siberg
Chief Executive Officer
Condensed Consolidated Statement of Comprehensive Income
| Q2 | Jan-Jun | Full-year | ||||
|---|---|---|---|---|---|---|
| Amounts in SEK thousands | Note | 2024 | 2023 | 2024 | 2023 | 2023 |
| Net sales | 2 | 14,917 | 8,462 | 27,037 | 15,750 | 35,754 |
| Cost of goods sold | 3 | -9,867 | -6,618 | -18,515 | -12,951 | -27,415 |
| Gross profit (loss) | 5,050 | 1,844 | 8,522 | 2,799 | 8,339 | |
| Development expenditure | 4 | -5,577 | -5,358 | -12,026 | -10,303 | -19,363 |
| Selling expenses | 4 | -24,023 | -21,397 | -46,210 | -36,998 | -77,682 |
| Administrative expenses | 4 & 5 | -9,974 | -14,299 | -18,674 | -25,612 | -45,107 |
| Other operating income | 7,304 | 5,610 | 14,891 | 6,466 | 15,290 | |
| Other operating expenses | -7,500 | -1,657 | -10,557 | -3,032 | -18,837 | |
| Earnings before interest and taxes | -34,720 | -35,257 | -64,055 | -66,680 | -137,360 | |
| Financial income | 683 | 179 | 1,463 | 179 | 999 | |
| Financial expenses | -222 | -186 | -387 | -454 | -798 | |
| Financial items - net | 461 | -7 | 1,076 | -275 | 201 | |
| Profit (loss) after financial items | -34,259 | -35,264 | -62,978 | -66,955 | -137,159 | |
| Income tax | 848 | 900 | 1,638 | 1,788 | 3,010 | |
| Profit (-loss) for the period | -33,411 | -34,364 | -61,340 | -65,167 | -134,149 |
Condensed Consolidated Statement of Comprehensive Income
| Q2 | Jan-Jun | Full-year | ||||
|---|---|---|---|---|---|---|
| Amounts in SEK thousands | Note | 2024 | 2023 | 2024 | 2023 | 2023 |
| Profit (-loss) for the period | -33,411 | -34,364 | -61,340 | -65,167 | -134,149 | |
| Other comprehensive income | ||||||
| Items relassifiable to profit or loss | ||||||
| Translation differences | -113 | 4,795 | 5,344 | 3,983 | -3,325 | |
| Total comprehensive income | -33,524 | -29,569 | -55,996 | -61,184 | -137,474 |
The year's profit and total comprehensive income is attributable in its entirety to the parent company's shareholders.
Earnings per share, calculated on the period's earnings attributable to the parent company's shareholders.
| Q2 | Jan-Jun | Full-year | ||||
|---|---|---|---|---|---|---|
| SEK | Note | 2024 | 2023 | 2024 | 2023 | 2023 |
| Weighted average number of shares, before dilution | 6 | 119,705,523 | 82,566,660 | 119,705,523 | 77,634,509 | 92,269,497 |
| Weighted average number of shares, after dilution | 6 | 119,705,523 | 82,566,660 | 119,705,523 | 77,634,509 | 92,269,497 |
| Earnings per share, basic and diluted, SEK | 6 | -0.28 | -0.42 | -0.51 | -0.84 | -1.45 |
Condensed Consolidated Balance Sheet Assets
| June 30 | December 31 | ||
|---|---|---|---|
| Amounts in SEK thousands | 2024 | 2023 | 2023 |
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | 234,425 | 246,036 | 227,193 |
| Property plant and equipment | 3,525 | 2,788 | 2,592 |
| Rights of use | 24,289 | 13,019 | 11,931 |
| Other financial assets | 4,569 | 4,015 | 4,431 |
| Total non-current assets | 266,808 | 265,858 | 246,147 |
| Current assets | |||
| Inventories | 25,634 | 20,251 | 20,340 |
| Trade receivables and other receivables | 13,463 | 7,961 | 8,569 |
| Other receivables | 3,363 | 4,892 | 4,819 |
| Prepaid expenses and accrued income | 3,749 | 2,041 | 2,238 |
| Cash and cash equivalents | 80,184 | 41,635 | 151,009 |
| Total current assets | 126,393 | 76,780 | 186,975 |
| TOTAL ASSETS | 393,201 | 342,638 | 433,122 |
Condensed Consolidated Balance Sheet Equity and Liabilities
| June 30 | |||||
|---|---|---|---|---|---|
| Amounts in SEK thousands | 2024 | 2023 | December 31 2023 |
||
| EQUITY AND LIABILITIES | |||||
| Equity | 319,693 | 283,912 | 375,477 | ||
| LIABILITIES | |||||
| Non-current liabilities | |||||
| Provisions | 3,849 | 3,280 | 3,750 | ||
| Lease liability | 20,828 | 9,905 | 8,578 | ||
| Deferred tax liability | 20,951 | 24,206 | 21,767 | ||
| Total non-current liabilities | 45,628 | 37,391 | 34,095 | ||
| Current liabilities | |||||
| Lease liability | 3,242 | 2,569 | 2,890 | ||
| Trade payables | 7,775 | 3,711 | 5,146 | ||
| Other current liabilities | 3,467 | 3,092 | 3,608 | ||
| Accrued expenses | 13,396 | 11,963 | 11,906 | ||
| Total current liabilities | 27,880 | 21,335 | 23,550 | ||
| TOTAL EQUITY AND LIABILITIES | 393,201 | 342,638 | 433,122 |
Condensed Consolidated Statement of Change in Equity
Attributable to parent company´s shareholders
| Retained earnings incl.profit (loss) | |||||||
|---|---|---|---|---|---|---|---|
| Amounts in SEK thousands | Share capital | Other contributed capital | Reserves | for the year | Total equity | ||
| Adjusted opening balance as of 1 January 2023 | 8,735 | 636,729 | 4,302 | -387,863 | 261,903 | ||
| Profit (-loss) for the period | -65,167 | -65,167 | |||||
| Other comprehensive income | 3,983 | 3,983 | |||||
| Total comprehensive income | - | - | 3,983 | -65,167 | -61,184 | ||
| Transactions with shareholders in their capacity as owners | |||||||
| Employee stock options | 350 | 350 | |||||
| New share issue | 1,585 | 90,364 | 91,949 | ||||
| Expenses attributable to new share issues | -9,106 | -9,106 | |||||
| Total transactions with shareholders | 1,585 | 81,258 | - | 350 | 83,193 | ||
| Closing equity June 30 2023 | 10,320 | 717,987 | 8,285 | -452,680 | 283,912 |
Attributable to parent company´s shareholders
| Retained earnings incl.profit (loss) | ||||||||
|---|---|---|---|---|---|---|---|---|
| Amounts in SEK thousands | Share capital | Other contributed capital | Reserves | for the year | Total equity | |||
| Opening balance as of January 1, 2024 | 14,963 | 880,690 | 977 | -521,153 | 375,477 | |||
| Profit (-loss) for the period | -61,340 | -61,340 | ||||||
| Other comprehensive income | 5,344 | 5,344 | ||||||
| Total comprehensive income | - | - | 5,344 | -61,340 | -55,996 | |||
| Transactions with shareholders in their capacity as owners | ||||||||
| Employee stock options | 548 | 548 | ||||||
| Expenses attributable to new share issues | -336 | -336 | ||||||
| Total transactions with shareholders | - | -336 | - | 548 | 212 | |||
| Closing equity June 30 2024 | 14,963 | 880,354 | 6,321 | -581,945 | 319,693 |
Condensed Consolidated Statement of Cash Flow
| Q2 | Jan-Jun | Full-year | |||
|---|---|---|---|---|---|
| Amounts in SEK thousands | 2024 | 2023 | 2024 | 2023 | 2023 |
| Cash flow from operating activities | |||||
| Earnings before interest and taxes | -34,719 | -35,257 | -64,054 | -66,680 | -137,360 |
| Adjustment for non-cash items | |||||
| Depreciation and amortization | 5,480 | 5,056 | 10,904 | 10,018 | 20,567 |
| Other non-cash items | 1,194 | 240 | -4,495 | 339 | 1,049 |
| Interest paid | -67 | -6 | -67 | -92 | -92 |
| Interest received | 111 | - | 111 | - | 999 |
| Income tax paid | 32 | -698 | -294 | -811 | -331 |
| Cash flow from operating activities before change in working capital | -27,969 | -30,665 | -57,895 | -57,226 | -115,168 |
| Cash flow from change in working capital | |||||
| Increase/decrease in inventories | -3,610 | 1,925 | -4,845 | 1,401 | 1,312 |
| Increase/decrease in trade receivables | -4,878 | -2,565 | -4,460 | -3,751 | -4,359 |
| Increase/decrease in operating receivables | 583 | -301 | 1,401 | -466 | -590 |
| Increase/decrease in trade payables | 2,777 | -396 | 4,070 | -3,607 | -2,172 |
| Increase/decrease in operating payables | 2,213 | 4,030 | 1,430 | 2,443 | 7,069 |
| Total change in working capital | -2,915 | 2,693 | -2,404 | -3,980 | 1,260 |
| Cash flow from operating activities | -30,884 | -27,972 | -60,299 | -61,206 | -113,908 |
| Cash flow from investing activities | |||||
| Investments in tangible assets | -1,198 | -683 | -1,734 | -738 | -950 |
| Investments in intangible assets | -3,487 | -1,615 | -6,540 | -3,605 | -6,871 |
| Cash flow from (-used in) investing activities | -4,685 | -2,298 | -8,274 | -4,343 | -7,821 |
| Cash flow from financing activities | |||||
| Payments made for repayment of lease liabilities | -1,057 | -933 | -2,030 | -1,841 | -3,678 |
| New share issue, net of transaction expenses | - | -167 | -336 | 82,843 | 250,189 |
| Cash flow from financing activities | -1,057 | -1,100 | -2,366 | 81,002 | 246,511 |
| Decrease/increase in cash and cash equivalents | -36,626 | -31,370 | -70,939 | 15,453 | 124,782 |
| Cash and cash equivalents at beginning of period | 116,856 | 73,803 | 151,009 | 26,035 | 26,035 |
| Exchange difference in cash and cash equivalents | -46 | -798 | 114 | 147 | 192 |
| Cash and cash equivalents at end of period | 80,184 | 41,635 | 80,184 | 41,635 | 151,009 |
Parent company Income Statement
| Q2 | Jan-Jun | Full-year | |||
|---|---|---|---|---|---|
| Amounts in SEK thousands | 2024 | 2023 | 2024 | 2023 | 2023 |
| Net sales | 16,450 | 12,845 | 30,425 | 20,319 | 38,919 |
| Cost of goods sold | -7,445 | -6,004 | -13,952 | -9,827 | -18,220 |
| Gross profit (loss) | 9,005 | 6,841 | 16,473 | 10,492 | 20,699 |
| Development expenditure | -3,944 | -3,519 | -8,382 | -6,943 | -13,199 |
| Selling expenses | -26,049 | -15,441 | -48,826 | -18,767 | -72,408 |
| Administrative expenses | -9,872 | -12,694 | -17,990 | -22,725 | -39,837 |
| Other operating income | 6,701 | 5,629 | 14,237 | 6,486 | 15,298 |
| Other operating expenses | -7,021 | -1,313 | -9,253 | -2,673 | -18,557 |
| Earnings before interest and taxes | -31,180 | -20,497 | -53,741 | -34,130 | -108,004 |
| Financial income | 2,735 | 2,089 | 5,508 | 3,037 | 7,328 |
| Financial expenses | -19 | -6 | -19 | -28 | -120,125 |
| Financial items - net | 2,716 | 2,083 | 5,489 | 3,009 | -112,797 |
| Profit (loss) after financial items | -28,464 | -18,414 | -48,252 | -31,121 | -220,801 |
| Profit (-loss) for the period | -28,464 | -18,414 | -48,252 | -31,121 | -220,801 |
In the parent company, there are no items reported as other comprehensive income, which is why total comprehensive income corresponds to the period's result.
Parent Company Balance Sheet Assets
| June 30 | ||||
|---|---|---|---|---|
| Amounts in SEK thousands | 2024 | 2023 | December 31 2023 |
|
| ASSETS | ||||
| Non-current assets | ||||
| Intangible fixed assets | 31,476 | 23,553 | 25,854 | |
| Property plant and equipment | 2,741 | 1,340 | 1,416 | |
| Financial assets | 156,269 | 260,754 | 137,139 | |
| Total non-current assets | 190,486 | 285,647 | 164,409 | |
| Current assets | ||||
| Inventories | 21,475 | 14,731 | 17,381 | |
| Trade receivables and other receivables | 6,141 | 7,589 | 5,367 | |
| Receivables from Group companies | 9,428 | 4,674 | 8,606 | |
| Prepaid expenses and accrued income | 3,777 | 1,889 | 2,345 | |
| Cash and bank balances | 76,686 | 38,568 | 147,853 | |
| Total current assets | 117,507 | 67,451 | 181,552 | |
| TOTAL ASSETS | 307,993 | 353,098 | 345,961 |
Parent Company Balance Sheet Equity and Liabilities
| June 30 | December 31 | |||
|---|---|---|---|---|
| Amounts in SEK thousands | 2024 | 2023 | 2023 | |
| EQUITY AND LIABILITIES | ||||
| Equity | ||||
| Restricted equtiy | 49,712 | 37,825 | 43,986 | |
| Non-restricted equity | 200,091 | 281,954 | 253,858 | |
| Total equity | 249,803 | 319,779 | 297,844 | |
| LIABILITIES | ||||
| Non-current liabilities | ||||
| Provisions | 3,849 | 3,280 | 3,750 | |
| Total non-current liabilities | 3,849 | 3,280 | 3,750 | |
| Current liabilities | ||||
| Trade payables | 6,894 | 2,776 | 4,658 | |
| Liabilities to Group companies | 34,987 | 14,516 | 28,685 | |
| Other current liabilities | 1,848 | 2,114 | 2,490 | |
| Accrued expenses | 10,612 | 10,633 | 8,534 | |
| Total current liabilities | 54,341 | 30,039 | 44,367 | |
| TOTAL EQUITY AND LIABILITIES | 307,993 | 353,098 | 345,961 |
Notes on the consolidated accounts
Not 1. Accounting policies
This interim report and summary for the second quarter ended June 30 th, 2024 has been prepared in accordance with the international accounting standard IAS 34 "Interim reporting". The term "IFRS" in this document includes the application of IAS and IFRS, as well as interpretations of these recommendations published by the IASB's Standards Interpretation Committee (SIC) and IFRS Interpretation Committee (IFRIC)
The application of the accounting principles is in accordance with those contained in the Annual Report for the financial year ended 31 December 2023 and should be read together with this interim report. There are no changes to IFRS in 2024 that are estimated to have a significant impact on the results and financial position of the group. Unless otherwise specifically stated, all amounts are reported in thousands of kronor (TSEK). Information in parentheses refers to the comparison year.
Not 2. Division of net Sales
| Full-year | |||||
|---|---|---|---|---|---|
| Amounts in SEK thousands | 2024 | 2023 | 2024 | 2023 | 2023 |
| Devices/Other | 6,505 | 4,072 | 11,369 | 7,515 | 16,228 |
| - there of royalties | 141 | 1,199 | 265 | 1,201 | 1,336 |
| Disposables | 8,412 | 4,390 | 15,668 | 8,234 | 19,526 |
| Total | 14,917 | 8,462 | 27,037 | 15,750 | 35,754 |
Not 3. Costs of goods sold
| th, 2024 has been | Q2 | Jan-Jun | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Amounts in SEK thousands | 2024 | 2023 | 2024 | 2023 | 2023 | ||||
| Cost of materials | 4,342 | 1,975 | 7,799 | 3,812 | 8,450 | ||||
| Personnel expenses | 448 | 279 | 822 | 428 | 1,030 | ||||
| External services | 623 | 206 | 1,031 | 456 | 1,032 | ||||
| Depreciation and amortization | 4,454 | 4,158 | 8,863 | 8,255 | 16,903 | ||||
| Total | 9,867 | 6,618 | 18,515 | 12,951 | 27,415 | ||||
| Not 4. Development, selling and administrative expenses by nature of cost |
Q2 | Jan-Jun | Full-year | ||||||
| Amounts in SEK thousands | 2024 | 2023 | 2024 | 2023 | 2023 | ||||
| Personnel expenses | 23,364 | 25,315 | 46,678 | 44,765 | 84,682 | ||||
| Consulting expenses | 8,875 | 6,290 | 16,578 | 13,841 | 28,873 | ||||
| Depreciation and amortization | 159 | 130 | 325 | 282 | 635 | ||||
| Q2 | Jan-Jun | Full-year |
Not 4. Development, selling and administrative expenses by
nature of cost
| Q2 | Jan-Jun | Full-year | |||
|---|---|---|---|---|---|
| Amounts in SEK thousands | 2024 | 2023 | 2024 | 2023 | 2023 |
| Personnel expenses | 23,364 | 25,315 | 46,678 | 44,765 | 84,682 |
| Consulting expenses | 8,875 | 6,290 | 16,578 | 13,841 | 28,873 |
| Depreciation and amortization | 159 | 130 | 325 | 282 | 635 |
| Other expenses | 7,176 | 9,318 | 13,330 | 14,024 | 27,961 |
| Total | 39,574 | 41,054 | 76,911 | 72,913 | 142,152 |
Not 5. Transactions with related parties
During the period, one board member has invoiced TSEK 670 (1,197) on market terms, for performed consulting services linked to the company's operational activities.
The services for 2024 are performed by Sorin Brull. For 2023, TSEK 632 of the services were performed by Sorin Brull and TSEK 565 by former board member, Jenny Freeman, who left her position as board member in November 2023.
Not 6. Earnings per share
| Q2 | Jan-Jun | Full-year | |||
|---|---|---|---|---|---|
| SEK | 2024 | 2023 | 2024 | 2023 | 2023 |
| Basic earnings per share Diluted earnings per share |
-0.28 -0.28 |
-0.42 -0.42 |
-0.51 -0.51 |
-0.84 -0.84 |
-1.45 -1.45 |
| Performance measure used in the calculation of earnings per share |
|||||
| Results attributable to the parent company's shareholders are used |
Profit (-loss) for the period |
Profit (-loss) for the period |
Profit (-loss) for the period |
Profit (-loss) for the period |
Profit (-loss) for the period |
| Result attributable to the parent company's shareholders, SEK thousand |
-33,411 | -34,364 | -61,340 | -65,167 | -134,149 |
| No. Weighted average no. of ordinary shares for calculating basic earnings per share |
119,705,523 | 82,566,660 | 119,705,523 | 77,634,509 | 92,269,497 |
| Stock options Weighted average no. of ordinary shares and potential shares used as denominator for calculating diluted earnings per share |
119,705,523 | 82,566,660 | 119,705,523 | 77,634,509 | 92,269,497 |
Earnings per share after dilution are not reported as it gives better earnings per share because the period's earnings are negative. In the rights issue carried out during Q1 2023 there is a bonus issue element, the effect is however insignificant as the subscription rights had a low value when the issue was not fully subscribed. Consequently, no recalculation has been made.
.
Not 7. Share capital development
| Date | Event | Number of shares |
Share capital (SEK) |
Quotient value (SEK) |
|---|---|---|---|---|
| Januari 1, 2023 |
Opening balance | 69,883,985 | 8,735,498 | 0.125 |
| March 11, 2023 |
Right share issue | 12,682,675 | 1,585,334 | 0.125 |
| July 5, 2023 |
Set-off share issue RMI part 2 | 5,055,954 | 631,994 | 0.125 |
| August 24, 2023 |
Directed shares issue | 12,500,000 | 1,562,500 | 0.125 |
| September 25, 2023 |
Directed shares issue | 18,000,000 | 2,250,000 | 0.125 |
| November 7, 2023 | Set-off share issue RMI part 3 | 1,582,909 | 197,863 | 0.125 |
| Total June 30, 2024 |
119,705,523 | 14,963,190 | 0.125 |
Not 8. Alternative performance measures
Senzime has defined alternative key figures as below. Calculations are published on the company's websitewww.senzime.com.
| Performance measure | Definition | Motive for use |
|---|---|---|
| Gross margin excl. amortization | Gross profit (loss) excl. amortization of intangible assets divided by net sales |
The group uses the alternative performance measure gross margin excluding amortization because it illustrates the impact of amortization of capitalized development expenditure on gross margin. |
| EBITA | Earnings before interest and taxes excluding amortization of intangible assets |
The group uses the alternative performance measure EBITA because it illustrates the impact of amortization of capitalized development expenses on operating profit. |
| Equity/assets ratio | Closing equity in the period divided by closing total assets in the period |
The group uses the alternative performance measure equity/assets ratio because it illustrates the portion of the total assets that consist of equity and has been included so investors will be able to assess the group's capital structure. |
| Items affecting comparability | Items of material value that do not have any clear relationship with ordinary activities and are of such nature that they cannot be expected to occur often. They may, for example, relate to acquisitions, major one-off orders, other unusual non-recurring revenue and expenses, capital gains/losses from divestments, restructuring expenses and impairment losses. |
Enables improved understanding of the company's underlying operations. |
| Currency fluctuations | Adjusted for currency fluctuations on the net sales of operations excludes the effect of exchange rates by restating the net sales of operations for the relevant period by applying the rates of exchange used for the comparative period. |
This performance measure is important for understanding the underlying progress of operations, and improves compatibility between periods |
| Q2 | Jan-Jun | Full-year | |||||
|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | 2023 | |||
| A | Net sales, TSEK | 14,917 | 8,462 | 27,037 | 15,750 | 35,754 | |
| B | Gross profit excl. amortization, TSEK | 9,435 | 5,927 | 17,233 | 10,918 | 24,947 | |
| B/A | Gross margin excl. amortization (%) | 63.3% | 70.0% | 63.7% | 69.3% | 69.8% |
| Q2 | Jan-Jun | Full-year | ||||
|---|---|---|---|---|---|---|
| Amounts in SEK thousands | 2024 | 2023 | 2024 | 2023 | 2023 | |
| A | Earnings before interest and taxes | -34,720 | -35,257 | -64,055 | -66,680 | -137,360 |
| B | Depreciation and amortization | 5,481 | 5,056 | 10,904 | 10,019 | 20,567 |
| A+B | EBITDA | -29,239 | -30,201 | -53,150 | -56,661 | -116,793 |
| Q2 | Jan-Jun | Full-year | ||||
|---|---|---|---|---|---|---|
| Amounts in SEK thousands | 2024 | 2023 | 2024 | 2023 | 2023 | |
| A | Equity | 319,693 | 283,912 | 319,693 | 283,912 | 375,477 |
| B | Total assets | 393,201 | 342,638 | 393,201 | 342,638 | 433,122 |
| A/B | Equity/assets ratio, (%) | 81.3% | 82.9% | 81.3% | 82.9% | 86.7% |
Not 9. Alternative performance measures Not 10. Employee stock option programs
Dilution from stock option programs
At the time this report is published, the group's four employee stock option programs comprise a total of 2,330,000 allocated options, which, if fully exercised, lead to a dilution of 2.23 percent. This is provided that all options are exercised.
During the period January-June 2024, no employee options have expired. A total of 214,000 employee options have so far expired and the remaining 2,116,000 employee options, if fully exercised, would represent a dilution of 2.05 percent. The corresponding figure excluding hedge options is 1.74%.
At the annual general meeting in May 2024, it was decided on another employee option program with a total of 1,200,000 options and allocation will take place during the third quarter of 2024.
About Senzime
Senzime is a Swedish medical technology company that develops, produces and markets patient monitoring systems.
Senzime's employees worldwide are committed to the vision of a world without anesthesia and breathing-related complications. The company markets an innovative portfolio of solutions, including TetraGraph® and ExSpiron® 2Xi for real-time monitoring of neuromuscular function and breathing during and after surgery.
The goal is to help eliminate care-related complications and radically reduce costs associated with surgical procedures and emergency treatments.
Senzime aims at a market valued at over SEK 40 billion per year and works with sales teams in the world's leading markets. The company's shares are listed on NASDAQ Stockholm's main market (SEZI) and cross traded on OTCQX (SNZZF).
More information is available at www.senzime.com.
Financial calendar 2024
Interim report Q3 2024 November 6 Year-End 2024 report February 2025 Publication of Annual Report 2024 April 2025
Kontakt
Philip Siberg, CEO Tel. +46 (0) 707 90 67 34 e-post: [email protected] Slavoljub Grujicic, CFO Tel. +46 (0) 763 06 60 11 e-post: [email protected]
Adress
Senzime AB Verkstadsgatan 8 753 23 Uppsala www.senzime.com
