NASDAQ$TNDM

Tandem Diabetes Care Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Tandem Diabetes Care's new technology innovations progressed, operational improvements were driven, and sales expectations were achieved.

Tandem Diabetes Care reported second quarter 2023 financial results, demonstrating progress with new technology innovations and achieving sales expectations. The company updated its full year 2023 financial guidance, anticipating disruption from market releases and focusing on new offerings and operational efficiencies.

  • Worldwide installed base increased 16 percent to approximately 437,000 in-warranty customers compared to the second quarter 2022.
  • Tandem Source, a data management application, commenced U.S. launch.
  • First participant enrolled in pivotal study for people living with type 2 diabetes using Control-IQ technology.
  • Tandem Mobi, the world’s smallest durable insulin delivery system, received U.S. Food and Drug Administration clearance.

Headline financials

Total Revenue

$196M

Previous: $200M-2.2%
EPS (adj)

-$0.30

Previous: -$0.24-25.0%
Adjusted EBITDA

$5.27M

No prior period
GAAP Gross Margin

52.0%

No prior period
Capital Expenditures

-$16.2M

Previous: -$14.8M-9.8%
Free Cash Flow

-$52M

Previous: -$29.8M-74.3%
Net Income

-$35.8M

Previous: -$15.1M-137.6%
Operating Income

-$38.8M

Previous: -$12.2M-217.1%
Gross Profit

$102M

Previous: $102M-0.2%
Cash & Equivalents

$131M

Previous: $115M+13.7%
Total Assets

$947M

Previous: $1.04B-8.7%
Stock-Based Comp

$23.4M

Previous: $20.1M+16.2%

Revenue & EPS history

Tandem Diabetes · Revenue · Quarterly

$196M

Q2 2023-2.2%vs Q2 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Tandem Diabetes · $80.7M total across 1 segment · Q3 2022

  • Pump Sales
    $80.7M

Forward guidance

Tandem Diabetes Care updated its 2023 financial guidance, expecting non-GAAP sales of at least $785 million, non-GAAP gross margin of approximately 51 percent, and adjusted EBITDA margin of at least breakeven.

Tailwinds

  • Non-GAAP sales are estimated to be at least $785 million.
  • Sales inside the United States of at least $575 million.
  • Sales outside the United States of at least $210 million.
  • Non-GAAP gross margin is estimated to be approximately 51 percent.
  • Adjusted EBITDA margin is estimated to be at least breakeven as a percent of sales.

Headwinds

  • Measured rate of market releases has the potential for disruption and reduced sales visibility.
  • Resetting guidance to provide minimum sales expectation for the remainder of the year.
  • Focusing on driving the success of new offerings and operational efficiencies across the business.
  • Includes approximately 3 percent impact from the operating costs associated with the acquisitions of Capillary Biomedical and AMF Medical.
  • Non-cash charges included in cost of goods sold and operating expenses are estimated to be approximately $110 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.4%

Avg return

Earnings day

-2.2%

Avg return

5 days after

+3.5%

Avg return

30 days after

55%

27 / 49 earnings

Positive

+32.8%

Q4 2025

Best reaction

-63.6%

Q3 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+7.6%-23.6%+5.0%
Q4 2025+32.8%+40.4%+34.0%
Q3 2025+22.0%+35.5%+56.9%
Q1 2025+18.6%+26.5%+17.6%
Q4 2024-35.2%-42.0%-42.6%
Q3 2024+0.6%-5.3%-9.1%
Q2 2024+12.7%+17.3%+17.6%
Q1 2024+23.5%+21.5%+41.5%
Q4 2023+6.1%+22.5%+28.4%
Q3 2023-12.1%-11.5%+22.5%
Q2 2023+2.8%-13.4%-14.3%
Q1 2023-2.9%-13.4%-35.9%
Q4 2022-2.1%-8.0%+8.0%
Q3 2022-34.3%-31.5%-23.7%
Q2 2022-14.0%-11.8%-34.3%
Q1 2022-16.4%-27.6%-33.8%
Q4 2021-0.3%+7.6%+7.6%
Q3 2021-4.9%-2.6%-4.3%
Q2 2021+4.7%+2.6%+8.8%
Q1 2021-5.6%-11.9%-5.8%
Q4 2020+3.5%+4.4%-10.0%
Q3 2020+1.5%-11.4%-17.9%
Q2 2020+1.8%+3.0%+10.1%
Q1 2020+7.6%+13.7%+11.5%
Q4 2019-11.4%-15.2%-34.7%
Q3 2019-6.5%-8.0%+2.2%
Q2 2019+2.9%-1.5%+14.2%
Q1 2019-5.8%+6.3%+9.2%
Q4 2018+27.9%+43.2%+31.8%
Q3 2018+6.3%-2.2%-2.1%
Q2 2018+7.7%+29.0%+59.9%
Q1 2018+7.9%+7.7%+96.4%
Q4 2017+23.1%+25.0%+57.0%
Q3 2017-3.4%-6.4%+2.7%
Q2 2017-17.3%-39.4%+8.7%
Q1 2017-11.8%-10.5%-22.4%
Q4 2016-19.1%-10.6%-51.1%
Q3 2016-63.6%-66.9%-63.2%
Q2 2016-13.9%-18.8%-8.4%
Q1 2016+7.1%
Q4 2015+11.9%
Q3 2015+20.6%
Q2 2015+8.9%
Q1 2015+1.7%
Q4 2014-3.1%
Q3 2014-11.0%
Q2 2014+11.4%
Q1 2014-11.7%
Q4 2013+4.0%
Q2 2013
Q1 2013
Q4 2012
Q3 2012

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