NASDAQ$TNDM

Tandem Diabetes Care Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported financial results for Q4 and full year 2023 and provided financial guidance for the year ending December 31, 2024.

Tandem Diabetes Care announced positive momentum across key areas, including the introduction of four new products in the United States. The company's portfolio positions them to improve the lives of more people living with diabetes worldwide, while driving operational improvement across their business.

  • Worldwide installed base increased 7 percent to approximately 452,000 in-warranty customers compared to the fourth quarter 2022.
  • Launched Tandem Mobi, the world’s smallest, durable Automated Insulin Delivery (AID) System in the United States.
  • Achieved first-to-market launch with multiple, next-generation continuous glucose monitoring sensor integrations.
  • Launched Tandem Source, a new diabetes management platform for customers and healthcare providers in the United States.

Headline financials

Total Revenue

$197M

Previous: $221M-10.8%
EPS (adj)

-$0.27

Previous: -$0.01-2600.0%
Adjusted EBITDA

$4.25M

Previous: $25.7M-83.5%
Adjusted EBITDA Margin

2.0%

Previous: 12.0%-83.3%
GAAP Gross Margin

47.0%

Previous: 52.0%-9.6%
Non-GAAP Gross Margin

51.0%

Previous: 53.0%-3.8%
GAAP Operating Margin

-18.0%

No prior period
Non-GAAP Operating Margin

-11.0%

No prior period
Capital Expenditures

$5.2M

Previous: $5.63M-7.6%
Net Income

-$30M

Previous: -$15.9M-89.3%
Operating Income

-$35.1M

Previous: -$17.8M-97.2%
Gross Profit

$93.3M

Previous: $116M-19.2%
R&D Expense

$42.6M

No prior period
Stock-Based Comp

$22.7M

Previous: $24.4M-7.0%

Revenue & EPS history

Tandem Diabetes · Revenue · Quarterly

$197M

Q4 2023-10.8%vs Q4 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 anticipates a return to growth in 2024, with sales guidance primarily reflecting recurring revenue streams. Investments in new product launches are reflected in margin expectations and are important for setting the foundation for these offerings to serve as catalysts for additional growth.

Tailwinds

  • Non-GAAP sales are estimated to be approximately $850 million for the full year and $175 million in the first quarter.
  • Sales inside the United States of approximately $625 million for the full year and $122 million in the first quarter.
  • Sales outside the United States of approximately $225 million for the full year and $53 million in the first quarter.
  • Non-GAAP gross margin is estimated to be approximately 51 percent for the full year and approximately 48 percent in the first quarter.
  • Adjusted EBITDA margin is estimated to be breakeven as a percent of sales for the full year and approximately negative 15 percent in the first quarter.

Headwinds

  • Non-cash charges included in cost of goods sold and operating expenses are estimated to be approximately $120 million.
  • Approximately $100 million non-cash, stock-based compensation expense.
  • Approximately $20 million depreciation and amortization expense.

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 2023

Historical avgQ4 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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