Supersapiens Expansion – Unprecedented look at company financials

More: Detailed Supersapiens Review

Supersapiens uses the Abbot Libre continuous glucose monitoring sensor (CGM) to give athletes real-time insights into performance levels of glucose. However, they’ve only done that so far in Europe.

That’s all about to change in 2024 as the company shifts focus to the US market AND targets the diabetes market – ie the same technologies but distributing to a new geographical market and a wholly new type of customer. To fund this expansion the company is turning to crowdfunding, offering investors a discounted Crowd Convertible Promissory Note in the company and 6% interest. To secure investment, Supersapiens needed to open up interesting performance statistics that give insights into the financial health of this well-known sports tech startup.

Convertible bonds are most often issued by companies with a low credit rating and high growth potential

These are my opinions and thoughts on the information, please do not take this as financial advice and if you do invest, understand the pros and cons of Convertibles.

I was surprised that Supersapiens only made $2m in EU revenue in 2022 based on 15,000 users but not surprised that each user uses 5.7 sensors per year ie between 11 and 12 weeks of use. Over the last 6 months the number of daily active users looks to me to be steady, not growing. But it’s also worth pointing out that the company was in an out-of-stock position at some points in the year. It’s also interesting but not surprising to see slightly more cyclists using the product than runners.

That said, the performance of the EU business this year looks to have grown from 2022. In the following chart, the company indicates 50% growth this year after a static performance last year. Like-for-like product growth doubles to $7m in 2024, presumably, that bump comes from athletes in the USA. I’ll just point out that’s over 100% growth.

Then, the new diabetes business which is presumably only in the USA goes from zero to hero in less than the space of one calendar year ($10.8m). Forecast growth for the subsequent year looks spectacular.

The company is valued at $120m which is a 40x multiple of 2023 revenues. Yikes! The 20% discount is based on that valuation. You would have to take a view on whether or not the company is overvalued as to whether or not there is a real discount!

Milestones & trajectory

The company has already received multiple, substantial investments. Even Wahoo’s head honcho, Chip Hawkins, has a stake.

Key statistics

The number of employee equivalents is stated as 16, which is probably not unreasonable for a $2-3m turnover tech startup.

• Headquarters: Atlanta, GA
• Founded: 2019
• Commercial launch: September 2020
• Total FTEs: 16 (including EU) (as of 11/01/23)
• 2022 Revenue: $2M
• Sensor users: 15,800 to date, 1,800 in US clinical trial
• Sensors per customer per year: 5.71
• Third-party data integration: over 200M potential collective users
• Working in conjunction with a market leader in sensor and device technology

More financial growth

Supersapiens talks about SaaS. To me, that usually means a subscription service for software. I’m not entirely sure what they mean here as the company currently sells small bundles of sensors and gives the software for free. It’s also possible to currently subscribe to the sensor bundles… Hopefully, that is what it means and there is no intention of also charging for the software.

Funding Launch

As of 20 Dec 2023, the company had raised 89% of its target. However, I imagine its real target is MUCH higher as $250k is only enough cash to find a few months of current usage (the burn rate appears to be about $100,000 pcm)

Q: Is it a risky investment

• A: Yes! The crowdfunding document lists many risks

I like the product and regularly use it, there is a good iOS app but perhaps a non-polished ecosystem on the Android/Garmin/Wahoo platforms. However, as I pointed out at the top. The company is going for a new market and a new type of customer. That’s inherently risky even if the US diabetes market is a large one.

Next, you have to realise that a large US diabetes market is no secret. MANY companies are targeting that space and many more planning the same. Will we see better sensor products from Abbot or Dexcom? Will non-invasive methods of monitoring Glucose finally become a reality in 2024? That’s certainly possible and if one of those companies is Apple then Supersapiens has a problem.

Take Out

If any of you in the UK have tried to get on the Zoe program (who also has a CGM) you’ll be aware of the demand for CGM even amongst non-diabetics. Glucose is a big market…both consuming it and then mitigating its impacts throughout society.

Supersapiens is currently not profitable and eats cash. This investment is presumably to alleviate cash flow for the first half of 2024, after which it could be a cash generator.

I was not at all surprised that Supersapiens is about to target the US market. Indeed I expected it to happen before now. However, I am surprised at the boldness of also aiming for the non-athlete market.

Buy SuperSapiens, Cost, Discounts, Price & EU, USA, UK Availability

The Supersapiens Performance Patches have an expiry date so buy with caution from trusted sources like SuperSapiens or athletes you know.