Tandem Diabetes Care(US:TNDM)2022-08-03 20:11Financial Performance - Sales for the three months ended June 30, 2022, were $200,262 thousand, a 16.3% increase from $172,139 thousand in the same period of 2021[11] - Gross profit for the six months ended June 30, 2022, was $193,039 thousand, up 16.5% from $165,741 thousand in the prior year[11] - The net loss for the three months ended June 30, 2022, was $15,056 thousand, compared to a net income of $4,008 thousand in the same period of 2021[11] - For the six months ended June 30, 2022, the net loss increased to $29.77 million compared to a net loss of $1.036 million for the same period in 2021[20] - The company reported a comprehensive loss of $16,277 thousand for the three months ended June 30, 2022, compared to a comprehensive income of $3,931 thousand in the same period of 2021[11] - Total sales for the three months ended June 30, 2022, were $200.3 million, a 16.3% increase from $172.1 million in the same period in 2021[156] - Total sales for the six months ended June 30, 2022, were $376.2 million, a 20.1% increase from $313.2 million in the same period in 2021[169] Assets and Liabilities - Total assets increased to $1,036,575 thousand as of June 30, 2022, compared to $905,137 thousand at December 31, 2021, representing a growth of 14.5%[10] - Total liabilities increased to $586,991 thousand as of June 30, 2022, from $472,025 thousand at December 31, 2021, an increase of 24.3%[10] - Cash and cash equivalents increased to $114,966 thousand as of June 30, 2022, from $71,181 thousand at December 31, 2021, reflecting a growth of 61.3%[10] - The company’s total stockholders' equity decreased to $346.09 million as of June 30, 2021, from $366.31 million at the end of 2020[16] - The company’s accounts receivable, net, was $103.763 million as of June 30, 2022, down from $110.725 million at December 31, 2021[49] Expenses - Operating expenses rose to $114,185 thousand for the three months ended June 30, 2022, compared to $87,022 thousand in the same period of 2021, marking a 31.2% increase[11] - Research and development expenses for the six months ended June 30, 2022, were $66,731 thousand, a significant increase of 73.6% from $38,460 thousand in the prior year[11] - Selling, general and administrative expenses rose 21% to $80.6 million for the three months ended June 30, 2022, from $66.5 million in the same period in 2021[164] - SG&A expenses increased by 23% to $153.9 million for the first six months of 2022, primarily due to a $22.8 million rise in employee-related expenses[176] Cash Flow - The company reported net cash provided by operating activities of $20.70 million for the six months ended June 30, 2022, a decrease from $57.58 million in the same period of 2021[20] - Net cash provided by operating activities was $20.7 million for the first six months of 2022, a decrease from $57.6 million in the same period of 2021, attributed to a $28.7 million increase in net loss[185] Stock and Equity - The weighted average shares used to compute basic net loss per share for the three months ended June 30, 2022, were 64,077 thousand, compared to 62,717 thousand in the same period of 2021[11] - As of June 30, 2022, a total of 10,402 thousand shares were reserved for future issuance, including 2,554 thousand shares for Convertible Senior Notes conversion[81] - The total number of stock options granted in Q2 2022 was 83,008, with a weighted average grant date fair value of $42.16 per share, compared to 239,608 options in Q2 2021 at $54.92 per share[86] Legal and Regulatory - The Company is involved in ongoing legal proceedings related to data breaches and employment claims, which may impact its financial condition, although the ultimate outcomes remain uncertain[99][100][101] - The company is involved in ongoing legal proceedings related to a data breach and labor code violations, with potential financial implications[207][208] Product Development and Market Performance - The company launched a mobile bolus feature for the t:slim X2 in July 2022, the first FDA-cleared smartphone app for insulin delivery[114] - The company is developing the Mobi insulin pump, which is approximately half the size of the t:slim X2 and designed for greater discretion and flexibility[120] - The t:slim X3 is being designed to enhance usability with a modernized interface and increased processing power[121] - The company has initiated clinical studies to expand the indications of its Control-IQ technology to include children aged 2 to 5 years and individuals with type 2 diabetes[126] - The company has entered into agreements with Dexcom and Abbott to integrate their CGM technologies with its insulin delivery systems[129][130] Market Trends and Sales Variability - The company anticipates ongoing variability in sales and operating results due to the impact of the COVID-19 pandemic[116][117] - The impact of the COVID-19 pandemic has introduced variability in sales trends, with the company anticipating unpredictable fluctuations in the coming months[145] Financial Instruments and Risk Management - The company maintains liquidity and preserves principal while maximizing income from financial instruments, with guidelines established for approved investments[197] - The company has limited exposure to foreign currency exchange rate risk, primarily related to operations in Canada, and may use derivative instruments to hedge such risks[200]