Tandem Diabetes Care, Inc. (NASDAQ: TNDM), a leading insulin
delivery and diabetes technology company, today reported its
financial results for the quarter and year ended December 31, 2019
and financial guidance for the year ending December 31, 2020.
In comparing the year ended December 31, 2019 to the same period
of 2018:
- Worldwide pump shipments increased 113 percent to 73,431 pumps
from 34,493 pumps
- Sales increased 97 percent to $362.3 million from $183.9
million
- Gross margin increased 5 points to 54 percent of sales from 49
percent
- Adjusted EBITDA (see "Non-GAAP Financial Measures" below)
improved to 13 percent of sales from negative 8 percent of
sales
In comparing the fourth quarter of 2019 to the same period of
2018:
- Worldwide pump shipments increased 21 percent to 19,602 pumps
from 16,168 pumps
- Sales increased 42 percent to $108.4 million from $76.2
million
- Gross margin improved 1 point to 56 percent of sales from 55
percent
- Adjusted EBITDA improved to 21 percent of sales from 16 percent
of sales
“In 2019, we more than doubled our year-over-year shipments,
primarily based on the strength of our Basal-IQ technology
adoption. We also pioneered two new device categories with the FDA
and received clearance for t:slim X2 with Control-IQ technology,
the most advanced automated insulin delivery system available,”
said John Sheridan, president and chief executive officer. “As we
look to the year ahead, we'll be working to bring the benefits of
our t:slim X2 systems to more people with diabetes worldwide, while
advancing our robust product pipeline, furthering our scalability
efforts and driving the Company to sustained profitable
growth.”
Full Year 2019 Results
Domestic pump shipments increased 78 percent to 53,735 pumps
from 30,205 pumps in the same period of 2018. Domestic sales were
$302.1 million, or an increase of 73 percent compared to $174.2
million for the year ended 2018. International operations commenced
in the third quarter of 2018. International pump shipments
increased 359 percent to 19,696 pumps in 2019 from 4,288 pumps in
2018. International sales were $60.2 million, or an increase of 522
percent compared to $9.7 million in 2018.
Gross profit for the year ended 2019 increased 116 percent to
$194.2 million, compared to $89.8 million in 2018. This included a
non-cash charge of $6.4 million, or 2 percent of sales, for
stock-based compensation for the year ended 2019, compared to $2.6
million, or 1 percent sales, for the comparable period of 2018.
Gross margin was 54 percent, compared to 49 percent in the same
period of 2018.
For the year ended 2019, operating expenses totaled $210.9
million compared to $134.5 million for the same period of 2018.
Operating expenses included a non-cash charge for stock-based
compensation of $51.7 million, compared to stock-based compensation
of $21.2 million for the same period of 2018. Operating loss
totaled $16.7 million compared to $44.6 million for the same period
of 2018. Operating margin for the year ended 2019 improved to
negative 5 percent compared to negative 24 percent for the same
period of 2018. For the year ended 2019, adjusted EBITDA was $47.4
million, or 13 percent of sales, compared to negative $15.1
million, or negative 8 percent of sales, for the same period of
2018.
Net loss for the year ended 2019 was $24.8 million, which
included non-cash charges of $58.1 million for stock-based
compensation and $11.1 million for the change in fair value of
certain outstanding warrants. This compares to a net loss of $122.6
million for the year ended 2018, which included non-cash charges of
$23.7 million for stock-based compensation and $66.5 million for
the change in fair value of certain outstanding warrants at that
time, as well as a $5.3 million charge associated with the full
repayment of the Company’s term loan agreement in August 2018.
Fourth Quarter 2019 Financial Results
Domestic pump shipments increased 35 percent to 17,453 pumps in
the fourth quarter of 2019 from 12,935 pumps in the same period of
2018. Domestic sales were $98.2 million, or an increase of 42
percent compared to $69.1 million in the fourth quarter of 2018.
International pump shipments decreased 34 percent to 2,149 pumps in
the fourth quarter of 2019 from 3,233 pumps in the same period of
2018. International sales were $10.2 million, or an increase of 43
percent compared to $7.1 million in the fourth quarter of 2018.
Gross profit for the fourth quarter of 2019 increased 45 percent
to $60.3 million, compared to $41.5 million for the same period of
2018. Gross margin was 56 percent, compared to 55 percent in the
same period of 2018. These included a non-cash stock-based
compensation charge of $2.2 million in the fourth quarter of 2019
compared to $1.5 million for the same period of 2018, or 2 percent
of sales in both periods.
For the fourth quarter of 2019, operating expenses totaled $58.1
million, compared to $41.0 million for the same period of 2018.
Operating expenses included a non-cash charge for stock-based
compensation of $16.4 million, compared to stock-based compensation
of $8.9 million for the same period of 2018. Operating income
totaled $2.1 million, compared to $0.6 million for the same period
of 2018. Operating margin for the fourth quarter of 2019 was 2
percent compared to 1 percent for the same period of 2018. For the
fourth quarter of 2019, adjusted EBITDA was $22.5 million, or 21
percent of sales, compared to $12.3 million, or 16 percent of
sales, for the same period of 2018.
Net income for the fourth quarter of 2019 was $2.7 million,
which included non-cash charges of $18.7 million for stock-based
compensation and $0.2 million for the change in fair value of
certain outstanding warrants. This compared to net income of $3.7
million for the fourth quarter of 2018, which included a $10.3
million non-cash charge for stock-based compensation and a $2.5
million non-cash gain for the change in fair value of certain
warrants outstanding at that time.
Cash Balance and Liquidity
As of December 31, 2019, the Company had $176.5 million in cash,
cash equivalents and short-term investments. This represents a
$19.5 million increase in the fourth quarter of 2019 and a $47.4
million increase since December 31, 2018.
2020 Annual Guidance
For the year ending December 31, 2020, the Company is providing
its financial guidance as follows:
- Sales are estimated to be in the range of $450 million to $465
million, which represents an annual sales growth of 24 percent to
28 percent compared to 2019
- Includes international sales of approximately $70 million to
$75 million
- Gross margin is estimated to be approximately 54 percent
- Adjusted EBITDA is estimated to be 12 percent to 14
percent
- Non-cash charges included in cost of goods sold and operating
expenses are estimated to be approximately $60 million, which
include:
- Approximately $50 million in non-cash, stock-based compensation
expense
- Approximately $10 million of depreciation and amortization
Non-GAAP Financial Measures
Certain non-GAAP financial measures are presented in this press
release, including adjusted EBITDA, to provide information that may
assist investors in understanding the Company's financial results
and assessing its prospects for future performance. We believe
these non-GAAP financial measures are important indicators of our
operating performance because they exclude items that are unrelated
to, and may not be indicative of, our core operating results. These
non-GAAP financial measures, as we calculate them, may not
necessarily be comparable to similarly titled measures of other
companies and may not be appropriate measures for comparing the
performance of other companies relative to the Company. These
non-GAAP financial results are not intended to represent, and
should not be considered to be more meaningful measures than, or
alternatives to, measures of operating performance as determined in
accordance with GAAP. To the extent we utilize such non-GAAP
financial measures in the future, we expect to calculate them using
a consistent method from period to period. A reconciliation of each
of the GAAP financial measures to the most directly comparable
non-GAAP financial measures has been provided under the heading
"Reconciliation of GAAP versus Non-GAAP Financial Results" in the
financial statement tables attached to this press release.
Consistent with SEC regulations, we have not provided a
reconciliation of forward-looking non-GAAP financial measures to
the most directly comparable GAAP financial measures in reliance on
the "unreasonable efforts" exception set forth in the applicable
regulations, because there is substantial uncertainty associated
with predicting any future adjustments that we may make to our GAAP
financial measures in calculating our non-GAAP financial
measures.
Conference Call
The Company will hold a conference call and simultaneous webcast
today at 4:30pm Eastern Time (1:30pm Pacific Time). The link to the
webcast will be available by accessing the Events &
Presentations tab in the Investor Center of the Tandem Diabetes
Care website at http://investor.tandemdiabetes.com, and will be
archived for 30 days. To listen to the conference call via phone,
please dial 855-427-4396 (U.S./Canada) or 484-756-4261
(International) and use the participant code "4065427".
About Tandem Diabetes Care, Inc.
Tandem Diabetes Care, Inc. (www.tandemdiabetes.com) is a medical device
company dedicated to improving the lives of people with diabetes
through relentless innovation and revolutionary customer
experience. The Company takes an innovative, user-centric approach
to the design, development and commercialization of products for
people with diabetes who use insulin. Tandem’s flagship product,
the t:slim X2 insulin pump, is capable of remote software updates
using a personal computer and features integrated continuous
glucose monitoring. Tandem is based in San Diego, California.
Tandem Diabetes Care is a registered trademark and t:slim X2 and
Control-IQ are trademarks of Tandem Diabetes Care, Inc.
Follow Tandem Diabetes Care on Twitter @tandemdiabetes; use
#tslimX2 and $TNDM. Follow Tandem Diabetes Care on Facebook at
www.facebook.com/TandemDiabetes.
Follow Tandem Diabetes Care on LinkedIn at https://www.linkedin.com/company/tandemdiabetes.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, that concern matters that involve risks and uncertainties
that could cause actual results to differ materially from those
anticipated or projected in the forward-looking statements. These
forward-looking statements include statements regarding, among
other things, the Company’s projected financial results and the
Company’s ability make pipeline advancements, scale operations and
drive towards sustained profitable growth. The Company’s actual
results may differ materially from those indicated in these
forward-looking statements due to numerous risks and uncertainties.
For instance, the Company’s ability to achieve projected financial
results, including its sales and profitability goals, will be
impacted by the Company’s ability to obtain regulatory approvals
for new products and products under development and the timing of
any such approvals; market acceptance of the Company’s existing
products and products under development by physicians and people
with diabetes; the Company’s ability to establish and sustain
operations to support international sales, including expansion into
additional geographies; the Company’s ability to meet increasing
operational and infrastructure requirements from higher customer
interest and a larger base of existing customers; and the potential
that newer products, or other technological breakthroughs for the
monitoring, treatment or prevention of diabetes, may render the
Company’s products obsolete or less desirable. Other risks and
uncertainties include the Company’s ability to manufacture products
at quantities at higher volumes at an acceptable cost and in
accordance with quality requirements; the Company’s ability to
contract with third-party payors for reimbursement of the Company’s
products; and other risks identified in the Company’s most recent
Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and
other documents that the Company files with the Securities and
Exchange Commission. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date of this release. Tandem undertakes no obligation to
update or review any forward-looking statement in this press
release because of new information, future events or other
factors.
TANDEM DIABETES CARE,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands)
December 31,
December 31,
2019
2018
Assets
Current assets:
Cash and cash equivalents and short-term
investments
$
176,458
$
129,027
Accounts receivable, net
46,585
35,193
Inventories, net
49,073
19,896
Other current assets
4,025
3,769
Total current assets
276,141
187,885
Property and equipment, net
32,923
17,151
Operating lease right-of-use assets
15,561
—
Other long term assets
1,485
1,258
Total assets
$
326,110
$
206,294
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable, accrued expenses and
employee-related liabilities
$
54,079
$
34,784
Deferred revenue
3,869
4,600
Common stock warrants
23,509
17,926
Operating lease liabilities
6,320
—
Other current liabilities
11,619
8,978
Total current liabilities
99,396
66,288
Operating lease liabilities -
long-term
14,063
—
Other long-term liabilities
17,672
8,731
Total liabilities
131,131
75,019
Total stockholders’ equity
194,979
131,275
Total liabilities and stockholders’
equity
$
326,110
$
206,294
TANDEM DIABETES CARE,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except per
share data)
(Unaudited)
Three Months Ended December
31,
Year Ended
December 31,
2019
2018
2019
2018
Sales
$
108,398
$
76,199
$
362,305
$
183,866
Cost of sales
48,126
34,664
168,093
94,044
Gross profit
60,272
41,535
194,212
89,822
Operating expenses:
Selling, general and administrative
45,561
32,178
165,735
105,226
Research and development
12,567
8,797
45,199
29,227
Total operating expenses
58,128
40,975
210,934
134,453
Operating income (loss)
2,144
560
(16,722
)
(44,631
)
Total other income (expense), net
585
3,177
(7,882
)
(77,929
)
Income (loss) before income taxes
2,729
3,737
(24,604
)
(122,560
)
Income tax expense
77
51
149
51
Net income (loss)
$
2,652
$
3,686
$
(24,753
)
$
(122,611
)
Net income (loss) per share, basic
$
0.04
$
0.06
$
(0.42
)
$
(2.55
)
Net income (loss) per share, diluted
$
0.04
$
0.02
$
(0.42
)
$
(2.55
)
Weighted average shares used to compute
basic net income (loss) per share
59,219
57,434
58,507
48,129
Weighted average shares used to compute
diluted net income (loss) per share
62,883
60,874
58,507
48,129
Reconciliation of GAAP versus Non-GAAP Financial
Results
(in thousands)
Three Months Ended December
31,
Year Ended December
31,
2019
2018
2019
2018
GAAP net income (loss)
$
2,652
$
3,687
$
(24,753
)
$
(122,611
)
Income tax expense
76
51
149
51
Change in fair value of stock warrants
226
(2,548
)
11,075
66,494
Other (income) expense, net(1)
(812
)
(630
)
(3,194
)
11,435
Depreciation and amortization
1,643
1,467
6,072
5,821
EBITDA
3,785
2,027
(10,651
)
(38,810
)
Stock-based compensation expense
18,684
10,309
58,071
23,736
Adjusted EBITDA
$
22,469
$
12,336
$
47,420
$
(15,074
)
(1) Includes $5.3 million loss on extinguishment of debt for the
year ended December 31, 2018.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200224005883/en/
Media Contact: Steve Sabicer 714-907-6264
ssabicer@thesabicergroup.com
Investor Contact: Susan Morrison 858-366-6900 x7005
IR@tandemdiabetes.com
Tandem Diabetes Care (NASDAQ:TNDM)
Historical Stock Chart
From Aug 2024 to Sep 2024
Tandem Diabetes Care (NASDAQ:TNDM)
Historical Stock Chart
From Sep 2023 to Sep 2024