Tandem Diabetes Care, Inc. (TNDM) Delivers Impressive Q2 Results, Raises Full-Year Guidance

Published on September 24, 2024 | Ticker: TNDM

Tandem Diabetes Care, Inc. (TNDM), a leading medical device company focused on the design, development, and commercialization of technology solutions for people living with diabetes, has reported its second-quarter 2024 financial results, showcasing strong performance and raising its full-year guidance.

Financials

The company's revenue for the second quarter of 2024 came in at $221.91 million, surpassing the Zacks Consensus Estimate of $206.16 million and representing a 13.3% increase from the year-ago quarter's $195.92 million. This top-line growth was driven by robust demand for Tandem's insulin pump products, particularly the recently launched Tandem Mobi, as well as continued strength in its recurring supply and renewal revenue streams.

For the first six months of 2024, Tandem reported revenue of $413.58 million, up from $365.30 million in the same period of 2023, reflecting a 13.2% year-over-year increase. The company's annual revenue for 2023 was $747.72 million.

On the profitability front, Tandem reported a net loss of $30.81 million, or $0.47 per share, for the second quarter of 2024, compared to a net loss of $35.78 million, or $0.55 per share, in the year-ago quarter. For the first six months of 2024, the company's net loss stood at $73.53 million, compared to a net loss of $159.65 million in the same period of 2023. Tandem's annual net income for 2023 was -$222.61 million.

The company's adjusted EBITDA, a non-GAAP metric, improved to a loss of $15.4 million in the second quarter of 2024, compared to a loss of $20.6 million in the year-ago quarter. For the first six months of 2024, Tandem's adjusted EBITDA was a loss of $28.8 million, compared to a loss of $77.9 million in the same period of 2023.

Tandem's operating cash flow for the first six months of 2024 was -$13.27 million, compared to -$24.65 million in the same period of 2023. The company's free cash flow for the first six months of 2024 was -$24.19 million, compared to -$40.85 million in the same period of 2023. Tandem's annual operating cash flow for 2023 was -$31.81 million, and its annual free cash flow was -$83.41 million.

Tandem's U.S. sales in the second quarter of 2024 were $156.71 million, up from $142.50 million in the year-ago quarter, representing a 10.0% increase. The company's international sales grew to $65.20 million in the second quarter of 2024, up from $53.42 million in the year-ago quarter, a 22.0% increase.

Guidance

For the full year 2024, Tandem is now guiding for total sales of approximately $868 million, up from its previous guidance of $850 million. This revised guidance implies a 12.0% year-over-year growth compared to 2023 revenue of $747.72 million. The company expects its U.S. sales to reach $634 million and its international sales to reach $234 million in 2024.

Tandem's gross margin for the second quarter of 2024 was 51.0%, compared to 52.0% in the year-ago quarter. For the first six months of 2024, the company's gross margin was 50.0%, compared to 51.0% in the same period of 2023. Tandem is maintaining its full-year 2024 gross margin guidance of 51.0%.

The company's adjusted EBITDA margin is expected to improve to a loss of 5.0% in the second quarter of 2024, compared to a loss of 10.5% in the year-ago quarter. For the full year 2024, Tandem is maintaining its adjusted EBITDA guidance of breakeven.

Liquidity

Tandem's balance sheet remains strong, with $452.4 million in cash, cash equivalents, and short-term investments as of June 30, 2024. This provides the company with ample liquidity to fund its ongoing operations and strategic initiatives.

Recent Developments

John Sheridan, Tandem's President and CEO, commented, "We are laying the foundation for 2024 to be a transformational year for Tandem, much like when we launched our first automated insulin delivery algorithm approximately 5 years ago. There is growing excitement across our company as we deliver on our strategy to bring greater choice and benefits to people living with diabetes worldwide."

Tandem's recent product launches, including the Tandem Mobi insulin pump and the integration of the Dexcom G7 continuous glucose monitoring (CGM) sensor, have been well-received by customers and healthcare providers. The company's focus on innovation, choice, and customer satisfaction has been a key driver of its success.

Outlook

Looking ahead, Tandem remains committed to its pipeline of future technologies, including the t:slim X3 pump, Mobi: Tubeless, and the Sigi Patch Pump, as well as continued advancements in its Control-IQ automated insulin delivery algorithm. These developments are expected to further strengthen Tandem's competitive position and drive long-term growth.

Conclusion

Overall, Tandem Diabetes Care's second-quarter 2024 results demonstrate the company's ability to execute on its strategic priorities, deliver innovative products, and drive revenue growth both in the United States and internationally. With its raised full-year guidance and strong pipeline of future offerings, Tandem appears well-positioned to continue its positive momentum and create value for its shareholders.

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