Tandem Diabetes Care(US:TNDM)2023-11-01 20:08Financial Performance - Total sales for the three months ended September 30, 2023, were $185.622 million, a decrease of 9.3% compared to $204.547 million in the same period of 2022[10]. - Gross profit for the nine months ended September 30, 2023, was $274.395 million, down from $297.464 million in the same period of 2022, reflecting a decrease of 7.7%[10]. - Operating loss for the three months ended September 30, 2023, was $31.545 million, an improvement from a loss of $47.493 million in the same period of 2022[10]. - Net loss for the nine months ended September 30, 2023, was $192.609 million, compared to a net loss of $78.741 million in the same period of 2022, indicating a significant increase in losses[10]. - The company reported a comprehensive loss of $192.998 million for the nine months ended September 30, 2023, compared to a comprehensive loss of $83.189 million in the same period of 2022[10]. - Net loss for the nine months ended September 30, 2023, was $192.6 million, compared to a net loss of $78.7 million for the same period in 2022, representing an increase of 144%[19]. - Net loss for Q3 2023 was $32.961 million, compared to a net loss of $48.970 million in Q3 2022, representing a 32.6% reduction[10]. - Comprehensive loss for Q3 2023 was $33.974 million, down from $49.752 million in Q3 2022[10]. - The company reported a net loss per share of $0.51 for Q3 2023, an improvement from $0.76 in Q3 2022[10]. Cash and Assets - Cash and cash equivalents decreased to $79.611 million as of September 30, 2023, from $172.517 million as of December 31, 2022[9]. - Total assets decreased to $939.909 million as of September 30, 2023, down from $1.052 billion as of December 31, 2022[9]. - Total stockholders' equity decreased to $314.000 million as of September 30, 2023, from $439.947 million as of December 31, 2022[9]. - Total current assets decreased to $758.1 million as of September 30, 2023, from $850.0 million as of December 31, 2022[9]. - The Company’s total stockholders' equity at September 30, 2023, was $421.8 million, down from $433.1 million at December 31, 2021, reflecting a decrease of 2.9%[16]. - Cash and cash equivalents at the end of the period decreased to $79.6 million in 2023 from $123.8 million in 2022, a decline of 36%[19]. - Total financial assets measured at fair value as of September 30, 2023, amounted to $482.4 million, a decrease from $595.1 million as of December 31, 2022, representing a decline of approximately 19%[53]. - Cash equivalents decreased from $150.7 million in December 2022 to $63.8 million in September 2023, a reduction of about 58.6%[53]. Expenses and Liabilities - Research and development expenses for the nine months ended September 30, 2023, increased to $127.063 million, compared to $103.529 million in the same period of 2022, reflecting a growth of 22.7%[10]. - Stock-based compensation expense increased to $65.3 million in 2023 from $60.5 million in 2022, reflecting a rise of approximately 8%[19]. - The company incurred an operating lease impairment charge of $14.1 million in 2023, which was not present in 2022[19]. - Total liabilities increased to $625.9 million as of September 30, 2023, from $612.8 million as of December 31, 2022[9]. - The Company recognized total interest expense of $8.079 million for the nine months ended September 30, 2023, compared to $4.629 million for the same period in 2022, reflecting an increase of 74.5%[77]. - The Company has accrued approximately $3.1 million in additional interest on the Notes since May 2021, with overdue unpaid interest accruing at a rate of 2.50% per annum[76]. Revenue and Sales - The Company’s revenue recognition is primarily from sales of insulin pumps and related disposable products, with revenue recognized upon transfer of control to customers[35]. - Total revenue for the three months ended September 30, 2023, was $185.6 million, a decrease of 9.2% compared to $204.5 million for the same period in 2022[97]. - Revenue from the United States for the three months ended September 30, 2023, was $130.2 million, down from $146.0 million in 2022, representing a decline of 10.0%[97]. - Revenue from outside the United States for the three months ended September 30, 2023, was $55.4 million, a decrease of 5.5% from $58.5 million in the same period of 2022[97]. - The Company completed the acquisition of AMF Medical on January 19, 2023, for a total consideration of CHF 62.4 million, plus contingent earnout payments of up to CHF 129.6 million[100]. - The Company recorded a $78.8 million charge for acquired in-process research and development assets related to the AMF Medical acquisition[101]. - The acquisition of Capillary Biomedical was completed for total cash consideration of $24.7 million, with an assumption of $4.7 million in long-term debt[102]. Inventory and Receivables - Accounts receivable, net as of September 30, 2023, was $100.318 million, down from $114.717 million at December 31, 2022[49]. - Total inventories as of September 30, 2023, amounted to $143.492 million, significantly higher than $111.117 million at December 31, 2022[51]. - The allowance for credit losses increased to $5.355 million as of September 30, 2023, compared to $4.327 million at December 31, 2022[50]. - The total provision for expected credit losses for the nine months ended September 30, 2023, was $4,066,000, compared to $2,955,000 in the same period of 2022, reflecting an increase of approximately 37.6%[50]. Legal and Compliance - The Company is involved in various legal proceedings, including a putative securities class action complaint filed on September 8, 2023, alleging violations of the Securities Exchange Act[105]. - The Company believes it is not currently a party to any legal proceedings or regulatory matters for which a material loss was considered probable as of September 30, 2023[106]. Stock and Equity - The Company granted 208,082 restricted stock units (RSUs) during the three months ended September 30, 2023, with a weighted average grant date fair value of $29.19 per share[88]. - The Company has reserved 11,617 thousand shares of common stock for future issuance as of September 30, 2023[83]. - The Capped Call Transactions were recorded at a net cost of $34.1 million, intended to reduce potential dilution beyond a conversion price of $112.57[78].