Tandem Diabetes Care (Nasdaq:TNDM) shares took a hit after hours on fourth-quarter results that came up short of the consensus forecast.
Shares of TNDM fell 8% at $20.74 apiece after the market closed today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — finished the day up 0.2%.
The San Diego-based automated insulin delivery technology developer posted losses of $30 million in the quarter. That equals 46¢ per share on sales of $196.8 million for the three months ended Dec. 31, 2023. The company’s bottom line fell by nearly 90% while sales dipped by 10.8%.
Compared to Wall Street expectations, earnings per share fell 21¢ shy, while sales came up nearly $6 million short.
Despite some financial dips in the quarter, Tandem has hit a number of milestones in recent months. The company first made great strides on its CGM integration, becoming the first to pair an automated insulin delivery to Dexcom’s latest technology when it integrated G7 into the t:slim X2 in December. The company then became the first to add Abbott’s CGM to AID technology by integrating the FreeStyle Libre 2 Plus into the t:slim X2.
Tandem then launched its new Mobi miniature insulin pump system earlier this month.
“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,” said John Sheridan, Tandem president and CEO. “2024 is positioned to be a year of tremendous opportunity for Tandem. Our portfolio of devices, applications, and insights positions us to improve the lives of more people living with diabetes worldwide, while driving operational improvement across our business.”
Tandem’s 2024 outlook
Tandem expects non-GAAP sales to total approximately $850 million in 2024, marking about 10% growth year-over-year.
“2024 marks an exciting opportunity for Tandem to return to growth, with our 10% sales guidance primarily reflecting recurring revenue streams,” said Leigh Vosseller, EVP and CFO. “Investing in the launch of multiple new products is reflected in our margin expectations and are important for setting the foundation for these offerings to serve as catalysts for additional growth.”
