On Aug 1, Tandem Diabetes released the results from their 2Q, and it was quite the blowout!
Here are their revs and EPS…
Revs (Millions) Q1 Q2 Q3 Q4 Total Revs Growth 2017 $19 $21 $27 $40 $107 2018 $27 $34 $46 $76 $183 71.0% 2019 $66 $93 $159 (Q1/Q2)
Non-GAAP EPS Q1 Q2 Q3 Q4 Total EPS 2017 -$7.46 -$4.36 -$3.09 -$1.23 -$16.14 2018 -$1.82 -$1.17 -$0.62 $0.06 -$3.55 2019 -$0.40 -$0.03 -$0.43 (Q1/Q2)
And here are their rev, YOY, seq, and TTM growth rates…
Revs ($Ms) Seq Rev Growth YOY Rev Growth TTM Rev (Millions) TTM YOY Rev Growth 1Q17 $19 2Q17 $21 10.5% 3Q17 $27 28.6% 4Q17 $40 48.1% $107 1Q18 $27 -32.5% 42.1% $115 2Q18 $34 25.9% 61.9% $128 3Q18 $46 35.3% 70.4% $147 4Q18 $76 65.2% 90.0% $183 71.0% 1Q19 $66 -13.2% 144.4% $222 93.0% 2Q19 $93 40.9% 173.5% $281 119.5%
Quite the acceleration over the past couple years, and they seem to just be getting started! I forget who I heard about this company from first, I think it was someone on this board, or maybe just on a financial website or channel somewhere. I looked into the company and liked what I saw enough to start a position, and have been building it between $60-$70, but the stock has not really shown any appreciation of note, yet, from those levels (but, it’s up almost 30X in the past 18 months, but I wasn’t in then, unfortunately).
Tandem Diabetes Care, Inc., is a medical device company that designs, develops, and commercializes various products for people with insulin-dependent diabetes. The company’s flagship product is the t:slim X2 insulin delivery system that comprises t:slim X2 pump, its 300-unit disposable insulin cartridge, and an infusion set. The roll-out of the t:slim X2 with Basal-IQ technology, increased supply capacity and renewal sales, as well as the international launch, and drives Tandem’s revenues. Basal IQ is an algorithm which stops basal insulin delivery when low blood sugar is predicted (within 30 minutes) and resumes insulin delivery once blood sugar levels start to rise.
Here’s the company release:
Here are some highlights:
- Worldwide pump shipments increased 290 percent to 21,258 pumps from 5,447 pumps
- Sales increased 173 percent to $93.3 million from $34.1 million
- Operating margin improved to negative 2 percent from negative 41 percent
- Adjusted EBITDA improved to 13 percent of sales from negative 29 percent of sales
Regarding their 2019 guidance, Leigh Vosseller (CFO) said the following:
The record growth we achieved in the second quarter has continued to exceed our expectations, the acceleration of our sales growth drivers in recent quarters suggests that the longer-term goals we laid out a year ago may be attainable more quickly than originally anticipated, particularly with the strength of our near-term product pipeline, scaling renewal opportunity and expanding international launch.
They raised expectations as follows:
- Sales are estimated to be in the range of $350 million to $365 million, which represents an annual sales growth of 90 percent to 99 percent compared to 2018. The Company’s prior sales guidance for 2019 was estimated to be in the range of $300 million to $315 million.
- Includes international sales of approximately $55 million to $60 million. The Company’s prior international sales guidance for 2019 was estimated to be in the range of $45 million to $50 million.
- Gross margin is estimated to be approximately 54 percent, compared to 49 percent in 2018. The Company’s prior gross margin guidance for 2019 was estimated to be 52 percent.
Here’s a link to the transcript of their call, there’s so much good info in there, read if you’re interested:
I’m not any sort of expert in this field but the company really seems to be killing it! If anyone else has looked into TNDM I’d love to hear your thoughts.
They are not valued as highly as our software companies, their EV/S is around 13. They don’t have the same margins, percentage of recurring revenue, etc, but it’s a diversification away from the SaaS/cloud/enterprise companies, but being a medical device manufacturer carriers it’s own risks with that, so do your own DD.