TNDM - Earnings call transcript Q3 2018 | Tandem Diabetes Care, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen, and thank you for your patience.

You have joined Tandem's Third Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder, this conference may be recorded. to Officer, call Susan like host, to now Administrative Chief Morrison. would turn over the your I Ma'am, you may begin.

Susan Morrison

these Form in issued highlighted on of quarterly any elsewhere our the factors is projected and statements today We will conference Thank other you, who Tandem's Today's cause whether in statements of earnings date. joining and expectations call. development, events, only President about Kim CEO as performance, Form Tandem's to earlier There everyone those and thanks future forward-looking cause those risks filings. any our our portion actual leading could new forward-looking be Report results today's turn information, XX-K, assume statements. a future release and Annual or that from could discussion to risk reflect or of expressed other forward-looking list call. events, as anticipated management's Latif. statements, Good be Blickenstaff, publicly speak Kim? A obligation I'll and under third and call afternoon over SEC and in result now uncertainties and or quarter the operating and to our and statements. report that include from no of materially These differ and forward-looking implied XX-Q materially factors timelines, product recent different press most for today's financial will by factors. XXXX results update plans actual to

Kim Blickenstaff

initiatives. our in t:slim robust analyst our Financial a incredible. of helping positive these factors continues are welcome Officer; call. record supply XXXX has XX United opportunities It worldwide delivered more Leigh Chief market, been our sales, me year was Chief our is strong opportunity sales, setting list scaling and and exit of our core with and business is t:slim year-over-year with improving the of cash. joining from Officer. today's potential these Basal-IQ international through today success business The gross from our potential started to including each everyone quarter drivers and demand our launch technology and to of Susan Educators Operating Diabetes of of momentum Thanks the step and as and terms was described so. in of an of across the Basal-IQ and set about the to amazed aligned educate previously positive. of year-over-year the evidence our John August Sheridan, glucose launch a We feedback avoid learn experienced the high-blood the Vosseller, there Also technology, This XX quarter with and growth were modest In this rebound the ideal unexpected our We renewal Tandem This use its our People margin, XX also our the all to States, of independently enthusiasm the growth Annual build. the change and drive perfectly to an I clinicians strategic than that the XXX% have Conference. launch. convenience. group XX% Each quarter into treat strengthening users were than new standard-of-care delivery The benefits. more life-changing. prescribers translated is is seeing vision is pump supports showcase it's product we providers. more in lows. doing shipments ease-of-use simple-to-use users Basal-IQ healthcare reporting routine technology advocates believe people product prevent often new a from of Customers that Many t:slim increase It and by are when lows one both important in to by technology. is nearly overwhelmingly to Basal-IQ the they're are to delivery and our pump. run automated who new this to that screen diabetes the drives and beginning recommend in only important acceptance We that also insulin the out forced insulin that this and features feature

As cost. you our prescription, and know, approximately we obtained customers technology more feature. the to of X,XXX offer updated than Basal-IQ training XX,XXX include XX these software a t:slim Basal-IQ module, XX new for have to our no completed Already, customers online

and happy providers. with As healthcare early you customers see, overall, both we've can launch from feedback an the extremely and been product our

being and We also conversions. reporting of continue overall growth our therapy new see Medtronic to strength new pump half anonymous from in continued market, customers about to with the and

renewals also shipments XX% with for the momentum in getting an quarter. renewal increase Our are year-over-year

our us of XX is scale our high note various in in launch Off the with and for most fourth Health demand. indications We've seeing through been GX XX in Canada. t:slim to select the [ph] these integration. is driver geographies next that t:slim Another international by already activities prelaunch of will recent anticipate we're early year. approval Overall, working continue quarter

and join Our and have Canada Tandem are we're our direct trained, organizations in this family. to great in sales group thrilled staff clinical of individual

is t:slim year we XX of year and same in we catalyst reminder, a where dream identified today amount of present have our and ago has across to required place year organization, fruition still exciting are team most the we stand has people partnered offering to and tremendous with worldwide. for a a The sales thing that, bringing customer makes us geographies the the with experienced in the the our ahead. Undertaking, that opportunity well international support. amazingly for our a other work a done expansion internationally, As distributors but this tremendous

than our look Investor our furthering on focusing continue Analyst the business of our be John build to organization, forward, the of scale the we our into momentum our development pipeline who product more with advancing people working in may is and Institutional five improve we'll has product meet management by Day. lives and our opportunity years As have recent seeing operations upon Over leading diabetes to a been mission global diabetes. effort Sheridan, with our business. John Tandem to for the while at

regulatory, and and interoperability manufacturing, with his R&D today, here strategy John with an his the contact team I've which FDA our Control-IQ. close providing review agencies on to addition also have on include and on responsibilities him John? iPump quality, program us the with a been management. in initiative, In establishing asked to along update

John Sheridan

opportunity The for as our in It as new accelerate good and regulatory of Tandem. well both interoperability an and for Kim intended everyone. presents to manufacturers is exciting reduce Thanks innovation burden the FDA's agency afternoon the market. concept

iCGM Basal-IQ which an with insulin the delivery and interoperability device has of key Special fine system, underway initiatives important The the help interoperability classification. the to the new elements; of iCGM, system faster Special a as brought and the products access the our in for automated great to GX classification the regulations regulatory defined for FDA regulatory year in XX our it to Controls. to an insulin already determine contains to referred this with are was three GX As Similar a to for development. sensors. Dexcom's our reminder, new Dexcom's Dexcom's CGM approved the establish concept process to pump; CGM; the for as required for the specifications algorithm. reduced an applies introduced allows us benefit our benefits to Controls regulations Special new a iCGM or iPump interoperability newly process now and first FDA significantly to class. and iPump This customers class we're a iCGM designation with Controls establish CGM device efforts strategy is for working an

for t:slim system which filing process filed XX now For pump platform, are Control-IQ, as we originally in a modular instance, our October. instead pursuing PMA for planned, the of we for we de novo a entire

file it next be approved, the data remain into to available expect clinical the regulatory as and application now our that be to commercial towards work result, this insulin accelerating the will the to complete clinical soon We to we submit is as continue burden of we as study enrolled systems potentially The expect Control-IQ regulation a spring. and automated will we Control-IQ We approval confident iPump to plan and delivery goal once data algorithm, for coming FDA next fully allow developed the TypeZero timelines. the year. approved clear, the Tandem for the be Pumps a as holder is be UVA available algorithm. of our technology system. To incorporated algorithm launching PMA Like underlined for reducing is regulatory and Insulin clinical once will Control-IQ core iCGM, Control-IQ summer. integrated Control-IQ in our

approval those implementation specific our our will and our be and However, PMA files the rely based formulas on on clinical data. will technical of

algorithm the would license to a other which and substantial with required As implement system, into specifications a TypeZero any create company their result, task. still is the be own the

one initiative complaints, and our quarter evidence in to in improve for required are agreements to that, rapid clinical address components other noting investigate, they work guidance. terms. R&D products, involved not from we one bringing the be turn the of These order Dexcom, other from goal At must the it is together the that furthering addition, people with our the In define now defining from to a pace that for more and agency interoperability comments her formal resolve, Leigh pace. an must support new both also It's relationships, their be interoperability organizations that we And year integrated committed are support device complete diabetes. interoperability the of worth Tandem, organizations. is develop to to have products FDA. as mean over the lives customers, of have The to how of report that efforts financial place financial in our licenses AID products does our recognizes the I'll to i-designation on and FDA's automatically new each system, elements with we and and accelerating of approval companies will gain technology studies outlined launching such with market agreement with integrated and how perspective. to Overall, business

Leigh Vosseller

everyone. and Thank afternoon you, John good

Our nearly overall. XX,XXX basis, the followed and we a our Program incredible of X,XXX than us approximately brings and shipped once year-to-date into considered sales our last history in shipped first $XX in It represents pumps for pumps on by million pumps to sale, in of recent years, at sales higher in-warranty prior be growth year-to-date in year-over-year which our $X the full third and Pump XX,XXX time from include million expansion. strong at our significant from U.S., at in considering Technology year In sales, including that $X quarter time. is shipped have continues growth be place what quarter Insulin infusion a of also growth in than We results X% to at this in to an four market robust market. a XX% total This million year sets QX, cartridges base. highest basis business that included XX%. again Pump X,XXX XX% more reflected to international which the a XXXX. for the XX%, sales $XXX we what brings the Upgrade shipped On we driver benefit us the continue shipped most pumps international already estimate installed at reasonable of our the a over million

many infusion to XXXX increased their in with Our who million again to to XXX renewal a came supplies in from customers quarter XX,XXX to expectations, we quarter achieving were accordingly. original such Sales the from control, to with base set of would When provide sales third as including expectations international ability of it the the extremely bought this XXXX. much Approximately build our X,XXX based warranties predict install an to result continue of growth within of all from guidance our confident the in success about our in passing entire the our on purchased of the this compared customers who renewal difficult opportunities quarter, philosophy ordering and was last XXXX. beginning pump of approximately our to to this expiration plan. increase compared strategy. continue this was on factors exit combined sales optimistic sales are only in at and how in of the year. capture nearly we our we year, expectations to overall continued opportunities significantly pump But million of they our of of Animas' the our feel From XXXX. customers still quarter we This guidance that included set first annual have the see quarter in With areas $X all And capitalizing sales the each therefore, also of opportunities ongoing infusion to raise our this benefit extraordinary XXXX. same these general renewal XX% benefit strength is expansion and or in $XX renewals renewals to perspective, quarter year. pump set set

Now, [audio to to raising than the gap] This our are of results launch $X quarter of our continued in $X $XXX us. includes for to Basel-IQ from XXXX Gross set the range million a million another previous better our million expected sales million. we record recent of technology million again million. and with $XXX to from guidance into October, estimated $XXX sales range the international margin $XXX third of

from in to sequential a of of XX%, QX We continuing XX% continued to scale up pattern the year. this increase

improvement the our Upgrade gross of time. of points from products. gained from compared prior year which reflect pumps, These highest margin and included meet demonstrated increased of volumes margin sales improvements a that growth We in place higher demand benefit margin a the the Technology of production have also contribution to to significant non-recurring leverage which five significant at XX%, Program from

We XX% business. year. the slightly historically. point was Other have that mix, to compared mix, impact higher with benefit the of we product $XXX,XXX than gross also of profits by margin the margin will of seen In XXXX, or margin pressured level charge incremental from prior factors gross sales in compensation a have the margin that comes gross of to or the sales. direct quarter international set a and points to increase two infusion included in continue and are seasonality, associated continue third versus $XXX,XXX stock-based one distributor percent margin from non-cash Gross year-over-year

with million by negative the and in margin The negative includes now for operating QX. of expect We financing with in sequentially negative valuation based of an year-over-year associated level XXXX $XX target completed a our on of $X range increased has adjusted now a expenses fourth quarter both and million total our charge of margin year. price to we were XX% are equity sales. operating of compensation including in of and term basis debt. growth operating option investment in to our be significantly compensation The used both in continue We operating and XX% XXXX. cash a second gross from to non-cash of for expenses million EBITDA in the in ended our $XXX well-positioned gross of of impacted this or the million. impact our the million million Other similar goal quarter This we this stock XX% are margin, reach increases this to expenses the in of $X towards only early to year. We stock to half By employee a which of year appreciation negative August significant million growth, this in reflects $XX higher in completely pay-off by QX by results. comparison, cost Considering stock-based cash balance XX% include and of in our our benefit quarter strong drive grant progression charges. with $XX expenses net sales. anticipated Adjusted debt-free. to non-cash the advancing loan increase our of that quarter non-cash sales margin breakeven product sales end negative $XX our the the EBITDA stock-based were operating Operating in our drive pipeline excludes million non-cash this continue quarter. margin growth incentive-based with Overall, higher $X on sales our improvement of compensation and XX% our first from

guidance includes investments million $X Excluding international as as support million these million stock-based This of XX%. our to an In increasing reduced made XX% range early for of our and summary, R&D range $XX quarter, substantially cash negative sales the ongoing proceeds, negative approximately commercial we even well a investments compensation pipeline our million annual under margin non-cash to are depreciation expenses team, in and to with in with $XXX net to both the to amortization. we for indeed our used infrastructure. $XXX operating and

With quarter flow reach to expect I to questions. XXXX. will over by cash We breakeven the that, of turn fourth it operator for the

Operator

you. America. line Thank question And [Operator with Bank Steed Travis Instructions] first our the of comes from of

now is line Your open.

Travis Steed

Thanks questions. for the taking

business. the touch to on wanted I international First,

you could there you potentially through could be north think quarterly why XXXX, million or on a revenue million growth of QX there. XX won’t there be a next million for do a to I basis so to rate $X said, run XXXX million year? reason XX sequentially $X Is

Leigh Vosseller

is calling Hi Travis, Leigh. this Thanks for in.

a near-term of that the will up hard have year, then a go. the I'll haven't dollars. of and that no we of the given will XX come started our that, what pump in months business terms color that be at we're we moment but significant where say it's just Regarding specific guidance for opportunity because their Animas there customers on to getting you do in opportunity to for of I'll the course, us. we next international remind in next is so see But the and lot say very nine real who trying with the that’s to just

Travis Steed

XX,XXX you than there you're And Looks Okay, on in patients being the earlier previously little going in XXXX. potentially a second year. of to the that’s like even this be around maybe U.S. commented fair. half that

XXXX. of half give around if LRP of curious patients over kind the you U.S. an the of expect update of where in comment also growth years. five revenue if next another you can be XXXX could just maybe mid-XX% or you second kind And on Just end the to

maybe could point growth in you revenue on you low that given growth the fairly have starting a good XXXX, good a comment if curious for point? starting a momentum Just a XX%

Leigh Vosseller

color not we're seasonal XXXX will we're any on to opportunity sign quarter you quarter, into and XXXX we be. giving think real yet remind our Keeping go. it's the fourth for about we XXXX expect because But again, the highest will another So, heading as and that I is where in us. mind, where particularly, base as really it's

that any like void we for grow this this there's months. so of know have to if still nine rate. the like We still opportunity Just introductions high or the we U.S., in of relatively to and at expect don't OUS feel product window next Animas competitor first year, continue us we the business opportunity

we our look at So, We forward our giving give more to QX color typically you that. earnings call. guidance XXXX around

Travis Steed

Okay. having think with know the a mentioned the fourth in I quick one just And at follow-up. [Indiscernible] you this I Day, quarter Analyst year. conversation

the or conversation of calendar this curious if it's Just happened the on point? at

Leigh Vosseller

come have about. the UHC to back business really forward look coupled yet in conversation, is not not front have the its get that that data the with opportunity so to as we were next factored believe But opportunity in our just order reminder, that will do into accumulating but and to We upside in to them. the the if mentioned step get of we real to we've had data to ever the us with speak to real was that opportunity that a a guidance past we And that them. -- to we network. don't our in year Basel-IQ in in And come try first a have the Control-IQ

Travis Steed

Okay. question. Thanks for taking the

Operator

with Capital. line comes Brooks Thank our question from Street next you. O’Neil the And Lake of

is Your open. line now

Brooks O'Neil

a I Thank congratulations questions. terrific on a quarter. you and have couple

the you're the proceeded you in sense reluctant GX talk just the has very but how off, GX First us with relation with combined you're to what of about much integration in your to field I and seeing Dexcom for probably the give any could know uptake Basal-IQ?

John Sheridan

Brooks. Sheridan. Hi, It's John

Brooks O'Neil

Hi, John.

John Sheridan

very great with with We a had Dexcom them. closely and for matter. we that say just I'll TypeZero worked with relationship

the long engineers got we've people you going relationship integration and the way is with that at no they've look look appreciate We from to meetings the seen And Dexcom. the management the the fingersticks well. would GX you expected with and know from we're fact a believe when work the so integration the getting extremely technology have with forward the know also We anecdotal you and technology what to. very is really of that and the I field we frequent working say best-in-class closely feedback would teams. far there's we

Kim Blickenstaff

we would add, with I to burdensome a fingersticks least the Brooks. ICGMO advance That's get GX. because also It's eliminated Basel-IQ ruling. system the the through there big a out

that's and see people the of training Also, successfully very without only and big accomplish simple aspect there's another to will caregiver. So, having one the this. a training screen quickly

to there's lot of pieces for a So the it. demand

Brooks O'Neil

Yes, that's great.

for forward excited you I think step I'm I'm and it's a huge diabetics. for for excited that.

a big little just So deal. a I'm here. it's bit curious

sense commented million $XX.X get the if pumps left math I should me on better right me release just sold and X,XXX how and press You think That that? for Can revenue. to for market million the going of help is $X.X my you about internationally OUS revenue. I a in there commented think what's homes X,XXX and with you

Leigh Vosseller

I'm sure.

an that was we when reimbursement US average the the right. OUS the you on on us, so selling pump around from the see million of about a have price that. cut to a the selling business $X,XXX there, comprised sales business well aspect X.X OUS do And significant you is it's to OUS primarily price just and So hair for compared half pump realized reminder of you to numbers

slightly $X,XXX the range, in So, above.

of that. perspective were And being if the about for XX% so about the U.S. overall of then piece think you sales by the followed business cartridge from infusion smallest the pump sets business a

Brooks O'Neil

helpful. up its there? and days, very but any know have Canada on much. Okay, happening do Thank early comments very you I that's you what's

Leigh Vosseller

force the great to speaking next And reimbursement. is getting could for approval super we're are for the place meant we each that is that they about our excited sales because get approval it province and started big get in Only with in to actively us with there step start marketing physicians. that so and

that we of once by do so And and that this be to able expect we the to have start we'll shifting year. pump the end

Brooks O'Neil

last my the your scale is I manufacturing And meeting Great. up facility us update manufacturing Investor any how do commentary the but into you scale had planned that a can we I you and you see all up really is question chance is at then give going. think can continue XXXX? appreciate on to as and going the as move know

Kim Blickenstaff

Yes. in definitely And demand. Brooks, seen an uptick we've

enthusiastic the to is we're to great about think for certain we the and products. appropriately. problem think to ahead. this But a that organization the facing well been anticipated I of of tell of -- a good extent scaling But our that as -- a real And and we all manufacturing we're are motivated I'll organization are it's kind been that new It's you it's the as customer a have have. it's planning organizations uptake And of I extremely see work. appropriately. responding lot

Brooks O'Neil

lied. question. I That's great. more One

Leigh Vosseller

back Actually I ask jump in queue. you Brooks, got to to

Brooks O'Neil

fine. That's

Leigh Vosseller

Thank you.

Kim Blickenstaff

Sorry Brooks. about that

Operator

you. our of line And with from Craig-Hallum. the Thank Alex Nowak next question comes

line is now Your open.

Alex Nowak

want touch the guidance. Good QX afternoon implied I just on everyone. Great. to

XXXX in I to first say everyone implying is even XX% by of months higher about actual I XX%. we the But think much is it could mean your grew results guidance you makes see sense QX the the nine from here. guide safe but for for QX. growth move up

I some is think do comp conservatism just we slowdown tougher experience the why but level of a should in there's know you still I the QX guess material guidance. So or is

Leigh Vosseller

say the that to the what always see fourth June pump great benefit third about to in beginning that there's just that different some quarter that we to expect a into saw to we bit to fourth we refer would of caution approval as with seen the in we with that we in the the in or year little that typically of have one this into sequential the this introduction But level I the sales competition, but we the past from haven't seen -- Sure. of seen quarter fall our continue always decline we with which namely sales XX% things season. can't a for the haven't would QX and XX% Basel-IQ I'm quarter, anticipate be conservatism past. and QX we year

the I early pump may And bit that so think this year. season started little have a

the So, we're what about still bring. can in it's it quarter quarter. and optimistic early But the fourth

good so news far So, though.

Alex Nowak

Medtronic helpful. that's might delaying the XXXG. clinical trial And the looks it Okay, be like for

you're share Medtronic understand benefit that? that it tenants fair do about just know say you just that not delay XXXG the is are I I'm Now I what but only would would curious a assume XXXX XXXX. And if in hearing you to market to

Kim Blickenstaff

We've heard is and been launch, that has the -- to recent, XXXX of April delayed beyond commercial yes. very the their study was that

Alex Nowak

one just And then one. it. Got last

there. You like know taking I there's look out sounds discussion It XXXG. regulators might issues be think often some a several there about with the Medtronic

issues you XXXG? are hearing any curious on just So

Kim Blickenstaff

know that public probably aware think uses keep going general issues I MDRs. we that safety company as the what's And track FDA mechanism to you're to have device on. I the you a you of and referring know and it's Well, medical the keep MDRs you just think of know all to

to and would you the Medtronic know best and You FDA that probably is I say relative conversation something with not that's us.

Alex Nowak

enough. Great guys. Okay. quarter you. Fair Thank

Leigh Vosseller

Thank you.

Operator

Thank you. line And from our of question with Stifel. next comes Blackman Matthew the

is now line Your open.

Matthew Blackman

Thanks Hello my taking for questions. everyone.

if one one up. international together questions and quick then okay So just couple of that'll follow on

of opportunity? would is OUS you these each have long-term then the now of several you're cycle conversion second remaining any So opportunity? question through new reasons that of expect to to on you more firmly you Animas of OUS And that start which geographies as the sense think these planted largest the the and conversion part do geographies above have Animas better beyond International, in

Leigh Vosseller

next served that So, that to how still say in few But again, have pans before to terms people know you don't what's quarters. waited Animas the think distributors see at I come. out could that great for this business left for sense we us point here of our will we'll a that many have customers. in and we are as that

Matthew Blackman

know And think conversion that as above then that outside the geographies the longer several launches opportunities in about Animas the you And term? is in anyone beyond then U.S. the. shorter-term size in and of multiple the we particular the thinking I'm in the or And over notable of terms opportunity there these particular. are

Leigh Vosseller

color haven't XXX,XXX in size the think have as geographies we other really particular. pumpers there. market would to given Yes, They than about of in different any I Canada the the

XX next one of we're the the opportunities so the the growth t:slim opportunity there to Control-IQ road. that's and But Animas algorithms year opportunities. Basel-IQ beyond so ability with really with our larger down come from And launching the the beyond integration and launch GX

Matthew Blackman

Thanks. And the of not willing least is sense mix if or then us quarters. so you're if U.S. But the number how compared quarter Animas not, number my last give in at conversions follow-up your Animas you quarter Okay. can of great. pump sure and disclose that some the to last the several on I'm this to directional

Leigh Vosseller

Sure.

of So in shipments. teens historically the percent as Animas Animas the pump low represented had market. a in our before JNJ announced from the exit

and the convert we're quarters. three have and the still are also so very double to now we over shipments pump Medtronic We excited MDI And in seeing managed in four to compared we're about but XX% Animas seeing from what what last both past. the

but other So companies. that pumpers balance the healthy we're keeping new attracting from of converting also

since their same have announced for they we've Animas continued exit. So seen trends

Matthew Blackman

Thanks so right, much. thanks All everyone.

Leigh Vosseller

Thanks Matt.

Operator

the of question with line Capital. Ravi our Misra And Thank from you. Berenberg comes next

is Your line open. now

Ravi Misra

for everyone. Thank taking the questions. you Hi,

Canada you improved. guidance have -- was and know had sales approval of a on time that given follow Day you had the The ups. one really we in inclusive up just the have not of when Analyst Canada couple you there. second that that now So or which or by that guidance stronger kind mean is at I been I guidance upside. of then suggests of a kind of informed demand price market. and ups. part the greater secondly, And then And just it Thanks. clarity couple follow U.S. any a higher that left of alone being a Is The

Leigh Vosseller

then in is the the so we're that we about when because Canada to in into original got and excitement over set it quarter timings fourth with getting that about the the each having is the again launch and factored approval as terms are well. factored the fourth to get started quarter movement really the guidance U.S. already our this the then enthusiastic Right. From be enthusiasm came domestic revenues perspective And and great over we the that year provinces of and we of timing into mostly and seeing international up modest product driving from Canada the just that of that into Basel-IQ the expectation. the reimbursement it's really expected that

Ravi Misra

initial to XX% just base, to that to on of then are on you your of And people out installed about installed of Basel-IQ have attachment your you're adoption market kind as X,XXX Control-IQ that in-house? for you upgraded I the are cycle how t:slim when Kim kind is would based XX%. doing that think that suggested guys And see comes these Great. you rate back kind my eventually napkin of

Kim Blickenstaff

obviously base. integrated adopters Dexcom to installed we early product the the are that our XX% GX there they XX expect accelerate. of obviously, CG using were and about like of Well, were

certainly, will kind the people hope that seeing something control. spreads it Control-IQ re-round control will an to the we and for be level of have what adoption measure. perhaps the word know and I higher we're improvement both hyper. reductions hypoglycemia see as And to want even additional does that giving as And think and So even about in

Ravi Misra

they Tidepool. algorithms one the you. for relationship working TypeZero, providing some partnering about Great. ID through just last kind that through Can of think you on Thanks. us how Thank with devices. your are out have or of there kind announced with And then maybe companies that of today one a competitor walk

Kim Blickenstaff

working are algorithm ourselves. improving on Control-IQ we the Well,

We what's and resources we this collaborate that that are universities internally that focused going continue And that area. time quite I to understand forward. there. we going out while a bit not say also that with partnerships they're on for we do provide have we to with have closely a would make and research we're on these in do the defined organizations pumps priority

regarding So we're and of and really when I see TICO think things this that with and lot of partnership the not and information insulin. studies we've a we I not INCLET those always and know with guess a didn't about wait just to sorts there's said that is clinical information And the competitive hear whole timing we'll and have you available.

know a first You a share very get between large much their forth the two of for patients system patients the MDI we if and back systems. where see don't coming onto and time And that's that. And come. switching we

another so the really when don't I I insulin, option. talk word about use good competitor So

Ravi Misra

Great. Thank you.

Operator

our you. line question from next comes & Bauser Dougherty of Co. with the Kyle Thank And

now is line open. Your

Kyle Bauser

Hi, guys. Good afternoon.

conversions from up a question the a enhancements that about last systems from compared I higher competitors? Do following have latest sense any mentioned exit you you the are immediately latest across traction for other lot you was and third previous two the mean to a what Following competitors. your distributed given evenly I and their your is the now. Animas conversions rate you than imagine in know your conversion

Leigh Vosseller

that we us. to love don't of would have factors. are Medtronic One by are we serviced of have a today. is being those but There information to Unfortunately, a that patients lot number available

Our distributors we third reasonable. don't portion of a but certain probably a like to have third seems a a unfortunately do but believe access know we they'll those

Kyle Bauser

quarter the other to XX% margin And about by quarterly as efficiencies and a to margin breakeven from you expect quarter nice that help gross you meet the gross last XX% talked Okay. year. closer goal? to achieve XX% next you the in gets inching number benchmark What to late sales jump

Leigh Vosseller

year. processes place. production a new the increasing really efficiencies be one going volume the driver of the lot It comes between manufacturing in seen We've by already and the now that's to biggest facility putting next our into back to

think rate run it base. a communicated of installed we on of terms earlier XX,XXX the some our in so way that And had customers we about

are And so have to ordering half. many supplies while year first we at that the back might hit half important that the of in least customers next consistently milestone the half earlier than it's in that back

run gets seasonal. a that's to a difficult and give of really So it's fair that milestone the rate since the business

Kyle Bauser

much. so Thanks Great.

Operator

Thank J.P. comes you. line with Jaffray. of question McKim from And our next the Piper

open. is line Your now

J.P. McKim

afternoon. taking and home really others guys at follow kind feel it good TypeZero get wouldn't wanted he up comments question. to be up have could John's Thanks of Hi, I that I my mean you about for quick, on right. but

you like you're when most terms feel So head of in it start year out have launch a on you robust really the else least seems show going like maybe a to to there. at like system anybody half having to a and year

competitive latest you out or think to now you offering to sales can force kind under XX to year where So, and year you've this it's know or about take gap what do you or some of discounting as accelerate of even strategically kind additions I'm the users system a users should the company the advantage wins see next next to just Animas of integrated trying Medtronic how there. got accelerating

John Sheridan

had now we're we regulatory When we're at J.P. we're available trials with that focus we it's it. the We our would I'll we improving time. said John. didn't we that TypeZero TypeZero looking good But as I we work believe the continuing that and just improvements to carefully question process the and make working and actually clinical say to a to the be others. definitely those And in through product we're you. to talking accelerate way part do on to just identically the so implemented algorithm going made and and that of it moment approval. to and algorithm I on anything could just the going it it implemented ago are

to schedule pump name as internal the very We the in the for And sports specific know big thing together haven't the that near I'm or other we you. that communicate are that's product. future about you that obviously happening sure a t:sport timelines. yet we for put excited will and sport is our

fully working to timeframe we'll aggressively cadence approval market. I staffed feel the the iPump and really And significant we're product is of in new annually. pull that that that our timeline is and designation think that comfortable in We still to maintain from team our one going get believe it. Our get XXXX for we

J.P. McKim

going Okay, but going offer you share taking out additional strategically to or next that you're hire there year. is there to anything reps to accelerate are

Leigh Vosseller

that, in or calling. don't for productive. be here dramatic Thanks first Leigh. be believe need expansion would where split opportunities just we or strength year the looking environment size talked it's through. In competitive of all to in expansion and to maybe we see reference based territory room coming to there which looks so that sales that territory our modest next said a to to to order see the growth of on do the before that the J.P., Hi, the way about would we've we we add more come. There's of about force Having for higher existing our reps a are volumes more single pockets finding or at looking a any

have product we today. then the see So know is pretty particular people at pretty force to we I with programs expect that of the place us. driver we again think rate bringing in going be we're expect for to terms a anything regard we same sales that still in today the billing the have the that in in much because pairs growth we're so doing over not to And you much with that

J.P. McKim

in on think got obviously then margin international And on ISP. me That's was is headwinds kind there's gross last of helpful. one then I stock There two and comp lower for quarter. this and

So those of backed can quantify at? you in as help to XX headwind reported kind you terms of those you if you where of were kind out

Leigh Vosseller

wasn't it the level have going particular options of Right, the we real in that of a had been all about X% X% that significant time. pressure then stock to gross And revenues stock comp enough so drag the this quarter from jumped expect to a so changes in margin it's this international forward was margin quarter at in that quarter of we the and this X% a although because on particular. about the to see a always granted comp sales we've this of baseline do the impact historically

J.P. McKim

that's Okay, much on you. quarter. and congrats you helpful. Thank very Thank the

Leigh Vosseller

Thank you.

Operator

Johnson the And Jeff our line with you. Baird. comes Thank next question from of

Your now line is open.

Jeff Johnson

guess. I for a you all. follow maybe questions of couple afternoon up Good John you. Thank

think but is talked unchanged to about that. some changes making maybe You timeline the Control-IQ I on

in that understanding So there changes algorithm you'd hit be data be so in be XXXX after still some launch some that the time mean that good of very launching. that that already would timeline in on what you know No we've if early you think I seen right. you'd the mid period that comfortable mid-XXXX trials looks I is still the may comfortable but

John Sheridan

enroll study. It's Yes, well. that's the mean right. fully exactly going we I very

track algorithm What are We completed referring I now was and looking in comment in we the the on so the updates to to timeframe to going still point spring at base. some be expect the it using we're available in get was to summer at it that to past our the XXXX. and future that improve the we'll in be providing of and know Control-IQ it customer approval to we're updater it making you

algorithms the know know that would updates So, progress nothing expect it's working overtime you and going you them. developing as I multiple we we're we and to be we would have improvements make on that in to as

Jeff Johnson

t:sport great. I'm you if quite potentially Okay. I control that. as not remembered talked on right about part the at phone I'm although coming Day And of Analyst That's then think

just your comments Leigh want sure gen UNH I thoughts or especially united phone competitors comment. on about product. your one make their latest of I with tonight some your understand comments control getting then that making on Just to next And

go IQ for You least feel reengage there? the do mentioned at enough you to Do you Basal Control-IQ to need back like data be you you Control-IQ. Basel-IQ or and like could having Thanks. to both data them think

John Sheridan

Thanks.

that's the that to priority. phone But going the control So that Analyst that's XXXX don't first early timeframe introducing we're I steps regarding immediately available XXXX we think you and when we going the to in we next indicated on indicated Control-IQ place our think are when that phone our what haven't we really app we but have definitely in and are at Day exactly t:sport we device. in from into will control are know we're and phone working jump be

something FDA to in been matter. and about that terms they've encouraging And the working talked of that very we've

Leigh Vosseller

United both interesting want question for your to Basel-IQ see Healthcare, what then step And first so to what looking see the is major product them enough on I and lows. the the to more is have Hi. competitive they the we'll it the just decision. as in order manages to could highs I think that's Control-IQ at them considering and a see XXXG make with

present And and to the hopefully so really and but to excited going and those we're it's conversation be to access forward to moving to continue them data Basel-IQ up some them getting a to with people. enter

Kim Blickenstaff

And a we what have suggestion never on received a to definitive make need agreement. do standard proposal or they

could be may it that maybe Basel-IQ guessing we're So Control-IQ. it not be have to

just we point. that don't the know is So

Jeff Johnson

Thanks it. Yes, guys. got

Operator

you. Thank Steven question our of Lichtman And next the from line with comes Oppenheimer.

now is line open. Your

Steven Lichtman

Hi you. guys. Thank

On Basel-IQ on patients on terms as down seeing the bringing tracking you board replacement well. cycle working the helping and that course continuing process your of latest it are seems like it's acceleration in them is how any you build comments and these there us of to here. Give

Leigh Vosseller

Yes.

two-fold. have believe have we what we've it in and I this retention about team do call we our we talked the team renewals So past and

to renewal involved cycle to work continuing build with customers expires the get First making sure then latest the them before in after we're about with and relationship and they their of the that patient them to order warranty to talk to products. end of the their it's greatest

terms XXX but were differentiator for quarter any we sequentially renewals to new which have you it's in real we opportunities. you give that that quarter. don't the up seen still so this But in patient We a was it And your really quarter-over-quarter. the what up Basel-IQ believe from be of grow done to have it's so second X,XXX renewal can that I information in to point regard

opportunities expect future. to in as number So see continue the the that grow to grow we

Steven Lichtman

be then etcetera. in a milestone milestones Basel-IQ begin special we just in about to think you terms the wise from obviously then thinking touch And big on Thankfully. are Control-IQ when relative of focuses. FDA pump. when in around the we Thanks. t:sport it. should Got you'll And other XXXX on what do on now pipeline to XXXX controls wanted the hear and clinical the Couple trial

Kim Blickenstaff

on we'll and or committed XXX renewal It days. to have future, asking approximately to takes near the data FDA the FDA days in The would first for approval. questions. think is understand probably month I a we the with begin them to question get anticipate the has Well, XXX timeline interacting to that very so and application. the here We start it review submitted Dexcom that the took

with in say would near the we that we would have future I interactions expect the will So, them.

Steven Lichtman

the trial have-- mentioned I the they iPump, Also of part clinical

Kim Blickenstaff

the to iPump we're So for we're that's And reason the to going t:sport, on not that clinical fact, device clinical -- a goes the going the in as as pull study. regulatory actually path submit the to far to will and since we're now, as clinical trial iPump do not Control-IQ an once at study, simply system is this and -- for is commercial but timeline, the that point in we going because it. it require integrated approval as simplify time with get need

timeframe So, talked to in time we it's that as XXXX shorten device, will be significantly the going available for about. it but

Steven Lichtman

Yes, great. Thanks guys.

Operator

line Thank comes of you. the Schenkel And our question from with next Cowen. Doug

is line now Your open.

Unidentified Analyst

taking Doug. is Ryan on questions. Thanks for this for my Hi,

seasonal headwind that does questions. noted, given nearly reverse you should QX? least, stock So stock QX, margin comp typical Gross at and the sequentially comp XXX basis [Indiscernible] of expect, despite much we P&L in as increased strength in points two the

Leigh Vosseller

that to grant XX-month grant. to that were still of as for regards quarters that we're next With expect stock level continue six we comp, to the eight the most the reported

that just time. play bit little So, of will a

not terms to in I'm generally any expect fourth do increase the number, being give of nice we year. with QX but sales the see the In going specific to quarter, a pump highest

we've You've see quarter. year, growth had nice as so three what to and this points each two far we done have

to So, continue that to move direction. into we hope

Unidentified Analyst

then just imply be expect quarter? non-cash were in OpEx to you. you adjusted to that positive soon to this you Got there that exclude would Does timing pretty said it. charges? then dynamics any quarter-over-quarter, And EBITDA confirm And that QX? Thank in minimal

Leigh Vosseller

depreciation And well we positive as comp. non-cash it's adjusted talk EBITDA, about EBITDA we stock-based to quarter. excluding and as do in when yes, be So, amortization the expect -- still fourth

the if quarter, trade occur of year. third to other be shows generally, our spend, stock-based highest piece activities, when fourth the and of we quarter of the going into see so it. flat intended And end the out over-time, into move as of generally we the you lot and comps quarter so take That's a

Operator

that And session. you. Thank concludes today's question-and-answer

So, and to with to closing the like CEO, Kim over to call back Mr. for Blickenstaff I'd that, President over remarks. turn

Kim Blickenstaff

Scottsdale, if a us going Well, you'd in be XXth, Jaffray joining number also various to followed we We're thanks, for again like November conferences the to to then have Conference XXth and York conferences. welcome in you, falls Healthcare in attending on busy seeing these today. and Conference on Conference the Stifel for on November. Suisse We'll by Conference Piper on we come November of Arizona everybody here We'll be a have And investor Canaccord Healthcare the to New here Credit XXth. XXth.

posted We'll on timeframe. December in also to the keep have you We expect bus those. tours several

So, for as much you again We joining so the look forward to thanks continues everyone you updated us to much. company Thank today. progress. keeping very

Operator

all gentlemen, you disconnect. and wonderful the may does thank day. conclude Ladies today's in and This Everyone, have program a for you conference. participating

Tandem Diabetes Care (TNDM) 2 Nov 182018 Q3 Earnings call transcript