NASDAQ$TNDM

Tandem Diabetes Care Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Tandem Diabetes Care's financial performance declined due to distribution partner disruptions and increased focus on scalability initiatives.

Tandem Diabetes Care reported a decrease in sales and gross profit compared to the same quarter last year. The company is focused on expanding the adoption of automated insulin delivery and managing costs.

  • Worldwide installed base increased 11% to approximately 444,000 in-warranty customers compared to Q3 2022.
  • Tandem Mobi commenced initial, limited release in the United States.
  • Tandem Source, the company's second-generation data management application, reached full U.S. healthcare provider availability.
  • Cash, cash equivalents & short-term investments totaled $498.2 million as of September 30, 2023.

Headline financials

Total Revenue

$186M

Previous: $205M-9.3%
EPS (adj)

-$0.38

Previous: -$0.27-40.7%
Capital Expenditures

-$21.6M

Previous: -$28.5M+24.1%
Free Cash Flow

-$54.6M

Previous: -$77.4M+29.5%
Net Income

-$33M

Previous: -$49M+32.7%
Operating Income

-$31.5M

Previous: -$47.5M+33.6%
Gross Profit

$89.8M

Previous: $104M-14.1%
Cash & Equivalents

$79.6M

Previous: $124M-35.7%
Total Assets

$940M

Previous: $1.05B-10.3%
R&D Expense

$42M

No prior period
Stock-Based Comp

$20.7M

Previous: $22.2M-6.7%

Revenue & EPS history

Tandem Diabetes · Revenue · Quarterly

$186M

Q3 2023-9.3%vs Q3 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

The company is updating its 2023 financial guidance, reaffirming U.S. guidance and margin expectations, while factoring in disruption reported by distribution partners outside the U.S.

Tailwinds

  • Non-GAAP sales are estimated to be at least $765 million.
  • Sales inside the United States of at least $575 million.
  • Sales outside the United States of at least $190 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

  • Includes approximately 3 percent from the impact of operating costs associated with the acquisitions of Capillary Biomedical and AMF Medical.
  • Approximately $95 million non-cash, stock-based compensation expense.
  • Approximately $15 million depreciation and amortization expense.
  • New disruption reported by distribution partners in key markets relates to the timing and process for new product launches.
  • There is substantial uncertainty associated with predicting any future adjustments that may be made to the Company’s GAAP financial measures in calculating the non-GAAP financial measures.

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 Q3 2023

Historical avgQ3 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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