Revenue: Q3 sales of $243 million, highest in company history.
US Sales: $171 million, 23% year-over-year growth.
OUS Sales: $72 million, 31% year-over-year growth.
Gross Margin: 51% in the third quarter.
Adjusted EBITDA: 2% of sales in the third quarter.
Free Cash Flow: Positive $22 million in Q3.
Total Cash and Investments: $473 million.
Annual Sales Guidance: Increased to $903 million to $910 million, 17% to 18% year-over-year growth.
Pump Shipments: Nearly 21,000 pumps in the US and nearly 11,000 pumps OUS.
Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Tandem Diabetes Care Inc (NASDAQ:TNDM) achieved the highest quarterly sales in its history during Q3 2024, driven by strong execution and positive feedback on the newly launched Tandem Mobi.
The company returned to positive free cash flow in the third quarter, highlighting improved operational performance.
There was a significant increase in new pump growth in the United States, with more than half of pump shipments going to new customers.
Tandem Mobi’s tiny size and versatility are attracting a younger demographic, contributing to high satisfaction scores.
Internationally, Tandem Diabetes Care Inc (NASDAQ:TNDM) demonstrated growth in pump placements and customer retention, with new tenders awarded to enhance customer access in select countries starting in 2025.
Despite record sales, the gross margin remained at 51%, with expectations of margin pressure related to the Mobi launch continuing through 2024.
The company anticipates a significant step down in both sales and profits from Q4 to Q1 due to deductible-driven seasonality in the US market.
The pharmacy channel strategy is still in its early stages, with only one contract signed and more work needed to drive profitable access.
The impact of the Tandem Choice program on GAAP financials was not meaningful in Q3, indicating limited immediate financial benefit.
There are ongoing challenges related to scaling Mobi production, which currently acts as a headwind on gross margins until volumes increase.
Q: Can you provide more details on new patient starts in the third quarter compared to the second quarter? A: Leigh Vosseller, CFO, explained that the third quarter marked a return to new start growth year-over-year, with more than half of the pump shipments being new pumpers, and over half of those were MDI conversions. The pump shipments increased modestly from Q2 to Q3 due to seasonal dynamics.
