Tandem Diabetes Care Inc (TNDM) Reports Mixed 2023 Results and Sets 2024 Guidance
Worldwide Sales: TNDM reported a decrease in worldwide sales by 7% year-over-year.
Operating Loss: GAAP operating loss widened to $233.2 million for the full year 2023.
Net Loss: GAAP net loss increased to $222.6 million for the full year 2023.
Gross Margin: GAAP gross margin decreased to 49% for the full year 2023.
2024 Guidance: Non-GAAP sales are estimated to be approximately $850 million for the full year 2024.
Cash Position: TNDM ended the year with $467.9 million in cash, cash equivalents, and short-term investments.
On February 21, 2024, Tandem Diabetes Care Inc (NASDAQ:TNDM) released its 8-K filing, disclosing its financial results for the fourth quarter and full year ended December 31, 2023, and providing financial guidance for 2024. The company, known for its advanced automated insulin delivery systems, faced a challenging year with a decrease in worldwide sales and an increase in net loss compared to the previous year.
Tandem Diabetes Care Inc (NASDAQ:TNDM) designs, manufactures, and markets durable insulin pumps for diabetes patients. With a significant portion of its revenue derived from the U.S., the company's products include the t:slim X2 and the newly launched Tandem Mobi system. The pumps generate over half of total sales, with disposable infusion sets contributing another third.
The company's performance in 2023 reflected several challenges, including a reduction in pump shipments and an increase in operating losses. Worldwide installed base grew by 7%, reaching approximately 452,000 in-warranty customers. However, total worldwide pump shipments decreased by 19% year-over-year. The GAAP operating loss for the full year was significant, totaling $233.2 million, or negative 31% of sales, compared to a loss of $92.8 million, or negative 12% of sales, in 2022.
Despite these challenges, TNDM's financial achievements, such as the launch of Tandem Mobi and the Tandem Source platform, are important as they represent the company's commitment to innovation and growth within the Medical Devices & Instruments industry. These developments are expected to serve as catalysts for future growth and operational improvement.
Key financial metrics from the income statement and balance sheet include:
GAAP Sales | $747.7 million for 2023 |
GAAP Gross Profit | $367.7 million for 2023 |
GAAP Net Loss | $222.6 million for 2023 |
Cash Position | $467.9 million as of December 31, 2023 |
John Sheridan, president and CEO, commented on the company's resilience and future prospects:
"We exited the year on a high note, demonstrating positive momentum across key areas of our business, including the unprecedented accomplishment of introducing four new products in the United States. 2024 is positioned to be a year of tremendous opportunity for Tandem. Our portfolio of devices, applications, and insights positions us to improve the lives of more people living with diabetes worldwide, while driving operational improvement across our business."
For the year ending December 31, 2024, TNDM provided financial guidance with non-GAAP sales estimated to be approximately $850 million and non-GAAP gross margin estimated to be around 51% for the full year. Adjusted EBITDA margin is expected to break even as a percent of sales for the full year.
Overall, Tandem Diabetes Care Inc (NASDAQ:TNDM) is navigating through a transformative period, with a focus on returning to growth and enhancing its product offerings. The company's ability to innovate and adapt to market demands will be critical as it aims to strengthen its position in the competitive landscape of diabetes management technology.
Explore the complete 8-K earnings release (here) from Tandem Diabetes Care Inc for further details.
This article first appeared on GuruFocus.
