Tandem Diabetes shares tumble on earnings miss, despite upbeat 2024 revenue outlook

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Tandem Diabetes shares tumble on earnings miss, despite upbeat 2024 revenue outlook
Credit: © Reuters.

SAN DIEGO - Tandem Diabetes Care, Inc. (NASDAQ: NASDAQ: TNDM ), a leading insulin delivery and diabetes technology company, reported a fourth-quarter earnings per share (EPS) of minus $0.46, falling short of the analyst estimate of minus $0.27. The company's revenue for the quarter was $196.8 million, which also did not meet the consensus estimate of $203.49 million.

The company's stock fell sharply by 9% in response to the earnings miss. This decline reflects investor concerns as the company's earnings trailed analyst estimates.

Despite the fourth-quarter shortfall, Tandem Diabetes provided an optimistic revenue outlook for the fiscal year 2024, projecting non-GAAP sales to be approximately $850 million, which is above the analyst consensus of $841.8 million. This positive guidance indicates the company's expectation of returning to growth, primarily through recurring revenue streams.

John Sheridan, president and chief executive officer, commented on the company's performance, stating, "We exited the year on a high note, demonstrating positive momentum across key areas of our business, including the unprecedented accomplishment of introducing four new products in the United States." He expressed confidence in the company's potential for the coming year, emphasizing the strategic positioning of Tandem's portfolio to improve the lives of people living with diabetes worldwide.

For the full year 2023, Tandem reported GAAP sales of $747.7 million, a decrease from $801.2 million in the previous year. The GAAP net loss widened to $222.6 million, compared to a net loss of $94.6 million in 2022. The company's worldwide installed base grew by 7%, reaching approximately 452,000 in-warranty customers.

Leigh Vosseller, executive vice president and chief financial officer, highlighted the company's investment in launching multiple new products, which she believes will serve as catalysts for additional growth. She also noted that these investments are reflected in the company's margin expectations.

Looking ahead, Tandem Diabetes aims to leverage its innovative product offerings, such as the Tandem Mobi system and the t:slim X2 insulin pump with Control-IQ advanced hybrid closed-loop technology, to strengthen its market position and drive operational improvements.

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