Tandem Diabetes Care, Inc. (NASDAQ: TNDM), a leading insulin
delivery and diabetes technology company, today reported its
financial results for the quarter ended June 30, 2021 and updated
its sales guidance for the year ending December 31, 2021.
Second Quarter 2021 Highlights
In comparing the second quarter of 2021 to the same period of
2020:
- Worldwide pump shipments increased 81 percent to 33,817 pumps
from 18,687 pumps
- Sales increased 58 percent to $172.1 million from $109.2
million
- Gross margin improved to 54 percent of sales from 50 percent of
sales
- Operating margin improved to 3 percent of sales from negative
11 percent of sales
“We achieved record-high sales in the second quarter by
expanding and further penetrating the U.S. insulin pump market, and
through the rapid uptake of our technology internationally where
our business opportunity is still in its early stages,” said John
Sheridan, president and chief executive officer. “Our worldwide
installed base is now nearly 270,000 people, and we are on track to
achieve our goal of bringing the benefits of our technology to more
than half a million customers by year-end 2024.”
Second Quarter 2021 Financial Results
Domestic pump shipments increased 40 percent to 20,665 pumps in
the second quarter of 2021 from 14,735 pumps in the same period of
2020. Domestic sales were $127.6 million, an increase of 43 percent
compared to $89.3 million in the second quarter of 2020.
International pump shipments increased 233 percent to 13,152 pumps
in the second quarter of 2021 from 3,952 pumps in the same period
of 2020. International sales were $44.6 million, an increase of 123
percent compared to $20.0 million in the second quarter of
2020.
Gross profit for the second quarter of 2021 increased 70 percent
to $92.5 million, compared to $54.4 million for the same period of
2020. Gross margin increased to 54 percent in the second quarter of
2021 from 50 percent in the same period of 2020.
For the second quarter of 2021, operating expenses totaled $87.0
million, compared to $66.4 million for the same period of 2020.
Operating income totaled $5.4 million, compared to an operating
loss of $12.0 million for the same period of 2020. Operating margin
for the second quarter of 2021 was 3 percent of sales compared to
negative 11 percent for the same period of 2020. For the second
quarter of 2021, Adjusted EBITDA(1) was $23.8 million, or 14
percent of sales, compared to $6.6 million, or 6 percent of sales,
for the same period of 2020.
Net income for the second quarter of 2021 was $4.0 million,
which included a $0.3 million non-cash charge for the change in
fair value of certain outstanding warrants and $1.5 million of
interest expense related to the Company’s convertible senior notes.
This is compared to a net loss of $27.1 million for the second
quarter of 2020, which included a $14.3 million non-cash charge for
the change in fair value of certain warrants outstanding at that
time and $3.2 million of interest expense related to the Company’s
convertible senior notes.
Cash Balance and Liquidity
As of June 30, 2021, the Company had $545.3 million in cash,
cash equivalents and short-term investments. This represents a
$31.9 million increase in the second quarter of 2021, and a $60.4
million increase since December 31, 2020.
2021 Annual Guidance Update
For the year ending December 31, 2021, the Company is updating
its financial guidance as follows:
- Sales are estimated to be in the range of $670 million to $685
million, which represents an annual sales growth of 34 percent to
37 percent compared to 2020. The Company’s prior sales guidance for
2021 was estimated to be in the range of $625 million to $640
million.
- Includes international sales of approximately $160 million to
$165 million, which represents an annual sales growth of 92 percent
to 98 percent compared to 2020. The Company’s prior international
sales guidance for 2021 was estimated to be in the range of $125
million to $130 million.
- Gross margin is estimated to be approximately 55 percent
- Adjusted EBITDA(1) is estimated to be approximately 15 percent
of sales
- Non-cash charges included in cost of goods sold and operating
expenses are estimated to be approximately $80 million, which
include:
- Approximately $65 million in non-cash, stock-based compensation
expense
- Approximately $15 million of depreciation and amortization
(1)
EBITDA is a non-GAAP financial measure
defined as net income (loss) excluding income taxes, interest and
other non-operating items and depreciation and amortization.
Adjusted EBITDA further adjusts for the change in fair value of
common stock warrants and non-cash stock-based compensation
expense. This definition of Adjusted EBITDA may differ from similar
measures used by other companies, even when similar terms are used
to identify such measures. Adjusted EBITDA is a key measure used by
the Company to evaluate operating performance, generate future
operating plans and make strategic decisions for the allocation of
capital. The Company presents Adjusted EBITDA to provide
information that may assist investors in understanding its
financial results. However, Adjusted EBITDA is not intended to be a
substitute for net income (loss).
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 at least 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 “6897987.”
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 worldwide 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, Inc., 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
factors impacting the Company’s business momentum. 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 will be impacted by 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; changes in reimbursement
rates or insurance coverage for the Company’s products; the
Company’s ability to meet increasing operational and infrastructure
requirements from higher customer interest and a larger base of
existing customers; the Company’s ability to complete the
development and launch of new products when anticipated; 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; the depth and
duration of the evolving COVID-19 pandemic, and the global response
thereto; reliance on third-party relationships, such as outsourcing
and supplier arrangements; global economic conditions; 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)
June 30,
December 31,
2021
2020
(Unaudited)
Assets
Current assets:
Cash, cash equivalents and short-term
investments
$
545,302
$
484,936
Accounts receivable, net
80,212
82,195
Inventories
66,705
63,721
Other current assets
6,066
6,383
Total current assets
698,285
637,235
Property and equipment, net
48,890
50,022
Operating lease right-of-use assets
31,499
19,773
Other long-term assets
16,576
9,385
Total assets
$
795,250
$
716,415
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable, accrued expenses and
employee-related liabilities
$
70,385
$
56,747
Deferred revenue
7,953
6,082
Common stock warrants
2,789
14,261
Operating lease liabilities
9,260
9,421
Other current liabilities
18,336
17,341
Total current liabilities
108,723
103,852
Convertible senior notes, net -
long-term
280,599
202,984
Operating lease liabilities -
long-term
27,376
15,914
Other long-term liabilities
32,467
27,360
Total liabilities
449,165
350,110
Total stockholders’ equity
346,085
366,305
Total liabilities and stockholders’
equity
$
795,250
$
716,415
TANDEM DIABETES CARE,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except per
share data)
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Sales
$
172,139
$
109,236
$
313,176
$
207,162
Cost of sales
79,685
54,846
147,435
102,511
Gross profit
92,454
54,390
165,741
104,651
Operating expenses:
Selling, general and administrative
66,523
50,440
125,086
100,157
Research and development
20,499
15,987
38,460
30,104
Total operating expenses
87,022
66,427
163,546
130,261
Operating income (loss)
5,432
(12,037
)
2,195
(25,610
)
Total other expense, net
(1,363
)
(17,145
)
(3,287
)
(18,341
)
Income (loss) before income taxes
4,069
(29,182
)
(1,092
)
(43,951
)
Income tax expense (benefit)
61
(2,075
)
(56
)
(1,977
)
Net income (loss)
$
4,008
$
(27,107
)
$
(1,036
)
$
(41,974
)
Net income (loss) per share, basic
$
0.06
$
(0.45
)
$
(0.02
)
$
(0.70
)
Net income (loss) per share, diluted
$
0.06
$
(0.45
)
$
(0.02
)
$
(0.70
)
Weighted average shares used to compute
basic net income (loss) per share
62,717
60,424
62,583
60,082
Weighted average shares used to compute
diluted net income (loss) per share
65,663
60,424
62,583
60,082
Reconciliation of GAAP versus Non-GAAP
Financial Results
(in thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
GAAP net income (loss)
$
4,008
$
(27,107
)
$
(1,036
)
$
(41,974
)
Income tax expense (benefit)
61
(2,075
)
(56
)
(1,977
)
Interest income and other, net
(418
)
(366
)
(690
)
(1,092
)
Interest expense
1,509
3,175
3,015
3,175
Depreciation and amortization
3,440
2,205
6,925
4,035
EBITDA
8,600
(24,168
)
8,158
(37,833
)
Change in fair value of common stock
warrants
272
14,336
962
16,258
Stock-based compensation expense
14,977
16,421
27,924
32,286
Adjusted EBITDA
$
23,849
$
6,589
$
37,044
$
10,711
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210804005403/en/
Media Contact: Steve Sabicer 714-907-6264
ssabicer@thesabicergroup.com
Investor Contact: Susan Morrison 858-366-6900
IR@tandemdiabetes.com
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