Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Senzime AB (SNZZF, Financial) reported a 90% sales growth in Q3 2024, with significant contributions from the US market, which grew by 81%.
- The company has placed nearly 2,900 Tegra systems in hospitals worldwide, with a strong growth rate in disposable sensor sales.
- Senzime AB (SNZZF) secured major hospital contracts, including a significant win with a top 10 US healthcare system, leading to a fourfold volume increase.
- The company successfully raised 86 million Swedish Kroner through a directed share issue, strengthening its financial position.
- The launch of the next-generation Tegra system has been well-received, with orders already announced in Europe, and it is expected to improve gross margins.
Negative Points
- Currency effects negatively impacted topline sales, with the weakened SEK affecting expense levels.
- Monitor sales were softer in Q3, particularly in the US, due to seasonal effects and comparative challenges from previous major deals.
- The European market showed slower growth compared to the US and Asia, with legacy technologies maintaining a stronghold.
- Gross margins were somewhat soft in Q3 due to lower price levels for monitors in the US.
- The ongoing healthcare strike in South Korea presents challenges, although growth continues in the region.
Q & A Highlights
Q: What drove the strong sales growth in Q3, particularly in the US and Asia?
A: The growth is primarily due to increased usage rates and large installations coming into effect, rather than one-time or stocking orders. In Asia, sales are aligned with customer needs without unnecessary stocking at the partner level.
Q: How did Japan and South Korea contribute to the growth in Asia?
A: Both markets showed good growth. Japan benefited from an integrated module launched earlier this year, while South Korea continued to ramp up despite an ongoing healthcare strike.
Q: Why were monitor sales softer in Q3, especially in the US?
A: The softer sales were due to a seasonal effect and a comparative effect from major deals in Q3 last year. There were no major losses to competition.
Q: What feedback did you receive on the new Tegra system launched at the ASA conference?
A: The feedback was overwhelmingly positive, with clinicians appreciating the simplicity and efficiency of the new system. The system was highlighted in discussions about making neuromuscular monitoring standard of care.
Q: How will the launch of the new Tegra system affect your product lineup and pricing?
A: The new Tegra system will be launched alongside the existing Tegra Classic, segmenting the market with a premium product. This approach is designed to optimize pricing and cater to different hospital needs.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
