Tandem Diabetes Care Inc (TNDM) reports mixed 2023 results, sets 2024 guidance

worldwide sales: TNDM reported a 7% year-over-year decline in global sales.
operating loss: GAAP operating loss widened to $233.2 million for the full year 2023.
net loss: Full-year 2023 GAAP net loss increased to $222.6 million.
gross profit: Full-year 2023 GAAP gross margin decreased to 49%.
Guidance for 2024: 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 year ended December 31, 2023, as well as its 2024 financial results. Provided financial guidance. The company’s advanced automated insulin delivery system faced a difficult year with lower global sales and higher net losses year over year.

Tandem Diabetes Care Inc (NASDAQ:TNDM) designs, manufactures and markets durable insulin pumps for people with diabetes. The company’s products, which derive the majority of its revenue from the US, include the t:slim X2 and the newly launched Tandem Mobi system. Pumps generate more than half of total sales, with disposable infusion sets accounting for another third.

The company’s performance in 2023 reflects several challenges, including lower pump shipments and higher operating losses. The global installed base grew by 7%, reaching approximately 452,000 insured customers. However, total global pump shipments decreased by 19% year over year. GAAP full-year operating losses were significant, totaling $233.2 million, or -31% of sales. In comparison, the loss for 2022 was $92.8 million, or -12% of revenue.

Despite these challenges, TNDM’s financial achievements, such as the launch of the Tandem Mobi and Tandem Source platforms, are significant as they represent the company’s commitment to innovation and growth in the medical device and equipment industry. These developments are expected to act as a catalyst for future growth and operational improvements.

Key financial indicators on the income statement and balance sheet include:

GAAP sales	747.7 million in 2023
GAAP gross profit	367.7 million dollars in 2023
GAAP net loss	$222.6 million in 2023
cash position	$467.9 million as of December 31, 2023

John Sheridan, President and CEO, commented on the company’s resilience and outlook.

“We ended the year on a high note, showing positive momentum across key areas of our business, including the unprecedented success of introducing four new products in the U.S. We are positioned for a year of great opportunity. Our portfolio of devices, applications and insights will enable us to improve the lives of more people living with diabetes around the world, while driving operational improvements across our business. We are in a position to improve.”

TNDM has financial forecasts for the year ending December 31, 2024 with non-GAAP sales of approximately $850 million and non-GAAP gross margin estimated at approximately 51% for the full year. Provided guidance. Adjusted EBITDA margin is expected to be breakeven as a percentage of sales for the full year.

Overall, Tandem Diabetes Care Inc (NASDAQ:TNDM) is undergoing a period of transformation with a focus on returning to growth and strengthening its product offerings. The company’s ability to innovate and adapt to market demands will be critical as it seeks to strengthen its position in the competitive environment of diabetes management technology.