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TNDM Stock Rises Despite Q1 Earnings Miss, Gross Margin Up
TNDMTandem Diabetes Care(TNDM) ZACKS·2025-05-02 13:06

Core Insights - Tandem Diabetes Care, Inc. reported a first-quarter 2025 loss of 67 cents per share, which was worse than the previous year's loss of 63 cents and missed the Zacks Consensus Estimate of a loss of 60 cents per share [1] - Despite the earnings miss, TNDM's stock surged 18.6% following the announcement [1] - The company achieved record quarterly revenues, with non-GAAP revenues of 234.4million,reflectingayear−over−yearincreaseof21.6234.4 million, reflecting a year-over-year increase of 21.6% and surpassing the Zacks Consensus Estimate by 6.4% [2] Revenue Performance - Non-GAAP revenues for the first quarter were 234.4 million, up 21.6% year over year, and GAAP revenues also totaled 234.4million,markinga22.2234.4 million, marking a 22.2% increase [2] - In the United States, non-GAAP sales reached 150.6 million, a 15% increase year over year, with over 17,000 pumps shipped [4] - Internationally, non-GAAP sales were 83.8million,upfrom83.8 million, up from 61.9 million in the prior-year period [5] Margins and Expenses - Gross profit for the quarter was 118.4million,a25.1118.4 million, a 25.1% increase year over year, with a gross margin of 50.5%, up 112 basis points despite a 19.6% rise in the cost of sales [6] - Selling, General and Administrative (SG&A) expenses rose 26.3% to 113.8 million, while Research and Development (R&D) expenses increased 8.6% to 50.2million[6]−Theadjustedoperatinglosswas50.2 million [6] - The adjusted operating loss was 45.7 million, compared to a loss of 41.7millioninthesameperiodlastyear[6]FinancialPosition−Attheendofthefirstquarterof2025,TandemDiabeteshadcash,cashequivalents,andshort−terminvestmentstotaling41.7 million in the same period last year [6] Financial Position - At the end of the first quarter of 2025, Tandem Diabetes had cash, cash equivalents, and short-term investments totaling 368.6 million, down from 438.3millionattheendofthefourthquarterof2024[7]Guidance−Thecompanyreaffirmeditsfull−year2025GAAPfinancialguidance,estimatingsalesbetween438.3 million at the end of the fourth quarter of 2024 [7] Guidance - The company reaffirmed its full-year 2025 GAAP financial guidance, estimating sales between 970 million and 1.007billion,withtheZacksConsensusEstimateforfull−yearrevenuesat1.007 billion, with the Zacks Consensus Estimate for full-year revenues at 1.00 billion [8] - GAAP sales in the United States are projected to be between 725millionand725 million and 730 million, while sales outside the United States are expected to be in the range of 272millionto272 million to 277 million [10] Overall Assessment - Tandem Diabetes ended the first quarter of 2025 with mixed results, as earnings lagged estimates but revenues exceeded expectations, driven by an expanding product portfolio [11] - The launch of Control-IQ+ technology for type 2 diabetes patients in the U.S. contributed to the strong performance [11] - However, the company's operating loss remains a concern [12]