Tandem Diabetes Care Announces Fourth Quarter and Full Year 2021 Financial Results and 2022 Financial Guidance

Rhea-AI Summary

Tandem Diabetes Care reported robust financial performance for 2021, achieving a 41% increase in sales to $702.8 million. Worldwide pump shipments rose by 41% to 128,312 pumps, with a gross margin of 54%. The company posted a net income of $15.6 million, a turnaround from a $34.4 million loss in 2020. For 2022, Tandem projects sales between $845 million and $860 million, indicating 20% to 22% annual growth. The guidance supports continued investment in innovation and operational improvements.

Positive

• Sales growth of 41% in 2021 to $702.8 million.
• Achieved a net income of $15.6 million, reversing a $34.4 million net loss in 2020.
• Projected sales growth of 20% to 22% for 2022, estimating revenues between $845 million and $860 million.

Negative

• Operating income decreased to $12.7 million in Q4 2021 from $18.7 million in Q4 2020.
• Adjusted EBITDA dropped to $33.4 million in Q4 2021 from $35.4 million in Q4 2020.

SAN DIEGO--(BUSINESS WIRE)-- 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, 2021 and financial guidance for the year ending December 31, 2022.

2021 FINANCIAL HIGHLIGHTS

In comparing the year ended December 31, 2021 to the same period of 2020:

• Sales increased 41 percent to $702.8 million
• Worldwide pump shipments increased 41 percent to 128,312 pumps
• Gross margin improved 2 percentage points to 54 percent of sales
• Achieved positive annual operating margin
• Adjusted EBITDA⁽¹⁾ increased to 14 percent of sales

“Our fourth quarter performance was a strong finish to a record year in which we furthered our global leadership position in insulin therapy management,” said John Sheridan, president and chief executive officer. “We look to continue driving growth through innovation in 2022 and beyond by offering solutions that meet the different needs and preferences of people living with diabetes.”

“Our top financial priority is investing in product and business model innovations to deliver sustained, high revenue growth,” said Leigh Vosseller, executive vice president and chief financial officer. “We remain confident in achieving our long-term profitability objectives through global market expansion, innovation and continuous operational improvement.”

Fourth Quarter 2021 Financial Results Compared to Fourth Quarter 2020

• Sales: Worldwide sales increased 25 percent to $210.0 million, which included sales outside the United States of $49.1 million. This is compared to worldwide sales of $168.1 million, which included sales of $28.7 million outside the United States.
• Gross profit: Gross profit increased 26 percent to $113.7 million, compared to $90.6 million. Gross margin was 54 percent, which is the same as the fourth quarter of 2020.
• Operating income: Operating income totaled $12.7 million, or 6 percent of sales, compared to $18.7 million, or 11 percent of sales. Adjusted EBITDA⁽¹⁾ was $33.4 million, compared to $35.4 million, or 16 percent and 21 percent of sales, respectively.
• Net income: Net income was $10.8 million, compared to $17.0 million.

Full Year 2021 Financial Results Compared to Full Year 2020

• Sales: Worldwide sales increased 41 percent to $702.8 million, which included sales outside the United States of $177.9 million. This is compared to worldwide sales of $498.8 million, which included $83.2 million outside the United States.
• Gross profit: Gross profit increased 44 percent to $376.2 million, compared to $260.5 million. Gross margin improved to 54 percent of sales from 52 percent of sales.
• Operating Income (loss): Operating income was $22.7 million, or 3 percent of sales, compared to an operating loss of $8.0 million, or negative 2 percent of sales. For the year ended 2021, adjusted EBITDA⁽¹⁾ was $97.2 million, or 14 percent of sales, compared to $60.9 million, or 12 percent of sales.
• Net income (loss): Net income was $15.6 million, compared to a net loss of $34.4 million.

See tables for additional financial information.

2022 Financial Guidance

For the year ending December 31, 2022, the Company is providing financial guidance as follows:

• Sales are estimated to be in the range of $845 million to $860 million, which represents an annual sales growth of 20% percent to 22% percent compared to 2021
  • Includes sales outside the United States of approximately $215 million to $220 million
• Gross margin is estimated to be approximately 54 percent
• Adjusted EBITDA⁽¹⁾ is estimated to be in the range of 14 percent to 15 percent of sales
• Non-cash charges included in cost of goods sold and operating expenses are estimated to be approximately $90 million, which include:
  • Approximately $75 million non-cash, stock-based compensation expense
  • Approximately $15 million depreciation and amortization expense

(1) See "Non-GAAP Financial Measures" below. 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 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 “1529844.”

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. 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 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 Table A (in thousands)
		December 31,			December 31,
		2021			2020
Assets
Current assets:
Cash, cash equivalents and short-term investments		$	623,811		$	484,936
Accounts receivable, net			110,725			82,195
Inventories			68,551			63,721
Other current assets			8,433			6,383
Total current assets			811,520			637,235
Property and equipment, net			50,386			50,022
Operating lease right-of-use assets			27,503			19,773
Other long-term assets			15,728			9,385
Total assets		$	905,137		$	716,415
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable, accrued expenses and employee-related liabilities		$	89,007		$	56,747
Deferred revenue			10,182			6,082
Common stock warrants			147			14,261
Operating lease liabilities			9,279			9,421
Other current liabilities			23,241			17,341
Total current liabilities			131,856			103,852
Convertible senior notes, net - long-term			281,467			202,984
Operating lease liabilities - long-term			23,922			15,914
Other long-term liabilities			34,780			27,360
Total liabilities			472,025			350,110
Total stockholders’ equity			433,112			366,305
Total liabilities and stockholders’ equity		$	905,137		$	716,415

TANDEM DIABETES CARE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Table B (in thousands, except per share data)
		(Unaudited)
		Three Months Ended December 31,								Year Ended December 31,
		2021				2020				2021				2020
Sales		$	209,996			$	168,065			$	702,799			$	498,830
Cost of sales			96,267				77,509				326,584				238,310
Gross profit			113,729				90,556				376,215				260,520
Operating expenses:
Selling, general and administrative			71,498				54,518				261,508				204,903
Research and development			29,493				17,376				92,054				63,574
Total operating expenses			100,991				71,894				353,562				268,477
Operating income (loss)			12,738				18,662				22,653				(7,957	)
Total other expense, net			(1,593	)			(1,624	)			(6,752	)			(28,325	)
Income (loss) before income taxes			11,145				17,038				15,901				(36,282	)
Income tax expense (benefit)			337				38				335				(1,900	)
Net income (loss)		$	10,808			$	17,000			$	15,566			$	(34,382	)
Net income (loss) per share, basic		$	0.17			$	0.27			$	0.25			$	(0.56	)
Net income (loss) per share, diluted		$	0.16			$	0.22			$	0.24			$	(0.56	)
Weighted average shares used to compute basic net income (loss) per share			63,650				62,249				63,000				60,990
Weighted average shares used to compute diluted net income (loss) per share			65,927				65,677				64,349				60,990

TANDEM DIABETES CARE, INC. SALES BY GEOGRAPHY Table C
($'s in thousands)		(Unaudited)
		Three Months Ended December 31,									Year Ended December 31,
		2021			2020			% Change			2021			2020			% Change
Domestic:
Pump		$	98,174		$	94,306		4	%		$	319,898		$	269,856		19	%
Infusion sets			43,136			30,860		40	%			140,387			99,743		41	%
Cartridges			19,239			13,924		38	%			63,375			45,342		40	%
Other			333			250		33	%			1,247			739		69	%
Total Domestic Sales		$	160,882		$	139,340		15	%		$	524,907		$	415,680		26	%
International:
Pump		$	26,158		$	16,866		55	%		$	96,458		$	44,851		115	%
Infusion sets			15,989			9,222		73	%			57,063		$	28,016		104	%
Cartridges			6,631			2,569		158	%			23,509		$	9,884		138	%
Other			336			68		394	%			862		$	399		116	%
Total International Sales		$	49,114		$	28,725		71	%		$	177,892		$	83,150		114	%
Total Worldwide Sales		$	209,996		$	168,065		25	%		$	702,799		$	498,830		41	%

TANDEM DIABETES CARE, INC. PUMP SHIPMENTS Table D
		Three Months Ended December 31,							Year Ended December 31,
		2021		2020		% Change			2021		2020		% Change
Pumps Shipped:
Domestic		25,712		24,552		5	%		83,317		70,825		18	%
International		11,873		8,133		46	%		44,995		19,946		126	%
Total Pumps Shipped		37,585		32,685		15	%		128,312		90,771		41	%

TANDEM DIABETES CARE, INC. Reconciliation of GAAP versus Non-GAAP Financial Results (Unaudited) Table E
(in thousands)		Three Months Ended December 31,							Year Ended December 31,
		2021			2020				2021				2020
GAAP net income (loss)		$	10,808		$	17,000			$	15,566			$	(34,382	)
Income tax expense (benefit)			337			38				335				(1,900	)
Interest income and other, net			47			(332	)			(674	)			(1,567	)
Interest expense			1,514			4,775				6,040				12,805
Depreciation and amortization			3,520			3,427				13,845				10,451
EBITDA			16,226			24,908				35,112				(14,593	)
Change in fair value of common stock warrants			32			(2,819	)			1,386				17,087
Stock-based compensation expense			17,099			13,308				60,752				58,431
Adjusted EBITDA		$	33,357		$	35,397			$	97,250			$	60,925

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220222005566/en/

Media Contact:

Steve Sabicer

714-907-6264

ssabicer@thesabicergroup.com

Investor Contact:

Susan Morrison

858-366-6900

IR@tandemdiabetes.com

Source: Tandem Diabetes Care, Inc.

FAQ

What were Tandem Diabetes Care's sales figures for 2021?

Tandem Diabetes Care reported sales of $702.8 million for the year ended December 31, 2021, representing a 41% increase from 2020.

What is Tandem Diabetes Care's 2022 financial guidance?

For 2022, Tandem Diabetes Care expects sales between $845 million and $860 million, indicating annual growth of 20% to 22%.

How much was Tandem's net income in 2021?

Tandem Diabetes Care reported a net income of $15.6 million for the year 2021.

What was the gross margin for Tandem in 2021?

Tandem Diabetes Care achieved a gross margin of 54% for the year ended December 31, 2021.

How does Tandem's adjusted EBITDA compare from 2020 to 2021?

Tandem's adjusted EBITDA increased to $97.2 million in 2021, up from $60.9 million in 2020.