NASDAQ$TNDM

Tandem Diabetes Care Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Announced financial results for the fourth quarter and year ended December 31, 2022, and provided financial guidance for the year ending December 31, 2023.

Tandem Diabetes Care reported its Q4 2022 financial results, with worldwide sales increasing to $220.5 million. The company's GAAP gross profit increased to $115.5 million, and despite a GAAP operating loss of $17.8 million, Adjusted EBITDA reached $25.7 million.

  • Worldwide installed base increased 29 percent to approximately 420,000 customers.
  • Worldwide GAAP sales increased 14 percent to $801.2 million; worldwide non-GAAP sales increased 15 percent to $804.8 million.
  • Expanded worldwide insulin pump market with approximately half of new U.S. customers adopting t:slim X2 from using multiple daily injection.
  • Exited 2022 with record growth rate in renewal pump shipments of 75 percent in the fourth quarter.

Headline financials

Total Revenue

$221M

Previous: $210M+5.0%
EPS (adj)

-$0.01

Previous: $0.16-106.3%
Adjusted EBITDA

$25.7M

No prior period
Adjusted EBITDA Margin

12.0%

Previous: 16.0%-25.0%
GAAP Gross Margin

52.0%

Previous: 54.0%-3.7%
Non-GAAP Gross Margin

53.0%

No prior period
Capital Expenditures

$5.63M

Previous: $5.75M-2.1%
Free Cash Flow

$193K

Previous: $13.9M-98.6%
Net Income

-$15.9M

Previous: $10.8M-246.7%
Operating Income

-$17.8M

Previous: $11.6M-253.1%
Gross Profit

$116M

Previous: $114M+1.6%
Cash & Equivalents

$617M

Previous: $71.2M+766.7%
Total Assets

$1.05B

Previous: $905M+16.3%
Stock-Based Comp

$24.4M

Previous: $17.1M+42.9%

Revenue & EPS history

Tandem Diabetes · Revenue · Quarterly

$221M

Q4 2022+5%vs Q4 2021
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

For the year ending December 31, 2023, the Company estimates Non-GAAP sales to be in the range of $885 million to $900 million, representing an annual sales growth of 10 percent to 12 percent compared to 2022.

Tailwinds

  • Non-GAAP sales are estimated to be in the range of $885 million to $900 million, which represents an annual sales growth of 10 percent to 12 percent compared to 2022.
  • Sales inside the United States of approximately $650 million to $660 million.
  • Sales outside the United States of approximately $235 million to $240 million.
  • Non-GAAP gross margin is estimated to be approximately 52 percent.
  • Adjusted EBITDA margin is estimated to be approximately 5 percent to 6 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 $20 million depreciation and amortization expense.
  • 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.
  • The Company’s actual results may differ materially from those indicated in these forward-looking statements due to numerous risks and uncertainties.

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 Q4 2022

Historical avgQ4 2022

-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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