TNDM - Earnings call transcript Q1 2020 | Tandem Diabetes Care, Inc.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to Tandem's First Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference maybe recorded. [Operator Instructions]

to and conference Morrison. Chief like speaker to now EVP today Administrative would hand over the your I Officer, Susan please go Madam, ahead.

Susan Morrison

in Earnings financial management's expectations welcome First future events, include and to time about statements. Call. lines development XXXX and forward-looking results There our anticipated uncertainties that and and and reflect only speak you, will Today's risks those operating statements statements. Thank These from as cause forward-looking are to actual plans, product or materially discussion projected performance everyone of today's Quarter Tandem's date. differ could

and as that recent cause publicly highlighted the most from is in and any no other and our portion quarterly factors XX-K, of report any list risk other information, materially Form implied factors. update Form these forward-looking result obligation annual be of results, report in different We our A factors expressed XX-Q on by whether under future or in could events SEC today elsewhere a actual assume press statements to to release forward-looking those of earlier or filings. new our on statements issued

discussion today's is non-GAAP a references capital. today refer and plans, earlier for measure. for allocation to will adjusted decisions the a evaluate is by to EBITDA, of issued key Please generate Adjusted which EBITDA us further used release operating future include financial measure our to addition, performance, In information. operating make press strategic

and Chief President Today's Executive President Leigh Chief Officer. and call Officer; Commercial Vosseller, Chief Executive Brian Hansen, participants John and Executive Vice and include, Sheridan, President Vice Financial Officer;

we'll before for yourself Thank into queue. getting open to remarks, asking the up our questions. advance questions call limiting you back the two in Following for prepared

call With now turn the over to that, John. I'll

John Sheridan

two to earnings Thank the how held since much has and just everyone hard It's believe welcome last call. to world you, changed the months, call. in we past today's Susan, our

with, times. who we are the support thank with challenging and First, ways to health living finding all people to care solutions of these we'd creative work providers like during diabetes,

frontline of sincere people affected are In our us tirelessly and to like to express Thank to who who I'd keep to you. all safe working fit. addition, appreciation. workers, our by and helping families are COVID-XX take care

you suppliers, to times in who the face what the this well-being a I'm without who products, services Thank the systems our demonstrated achieved and our benefit employees, to diabetes of modern us features in our special of also of during continued And even proud providing you in support very have have prioritize flexibility adaptability current disruption. quarter to challenging incredible pandemic thank and are first to finally, we environment. community. of and the this this the greater

first bringing benefit the of our to lives. unprecedented quarter largely the customers' can which an in strength power be Our is Control-IQ, attributed to

more recently, elective Control-IQ It's we that some pressures for reminder an sales As the than demand diabetes from COVID-XX. is a is different look offsetting management inherent of procedure. the stark

will conviction hear in many time our you to our is achieve set have more challenging on products, a longer-term ever. than have the today's the is goals delivering a we that times strengthened our drive As high-growth to only important people call their it we these for continue when invest health, are that, result, people to the that and have company. continuing What during

are and to this of be thought the how on is would better face how for with them. overcoming COVID-XX top it helpful the prepared a the we during employee you conviction pandemic mind, to operating perspective in our we remarks focus our this on give long-term business With and near-term we challenges

Then, experiencing discuss Leigh. base I'll in employee touch what will Brian provide and on and on our about our talk to manufacturing are some pipeline to internationally. over before perspective specifically, handing call going the I'm up overall, we First, then the the operations field

Overall, I of few employees our never weeks. these past in than been proud more have

option regarding all which in whose at concerns from COVID-XX the measures, the one Boise Diego work up San facilities March, increased As it to employees, our throughout our positions we allowed were for smaller in our with and started Toronto. ramping headquarters and precautionary

so California largely When information efforts to we was were attributed in issued stay kicked our to by be our tremendous to home. and the operations. place remote last set investments that support restriction were Technologies It in March, technologies our in who ability successfully our a up from effort their able quickly transition can employees off year, scalability team, work

and company people It improve of living the have throughout to with true motivated, our risen are occasion. our to the diabetes. lives solutions Departments staying to identified creative mission

and Our are customer teams infrastructure are in support and support we systems outfitted all with doing technical home, from and and efficient have service in manner. compliant to so working laptops and place an the

high be troubleshooting, customers of time, to new level this we've a our simply the or verification a purchasing supplies. able a provide ordering help it As service during for been pop, result, with insurance to

as we an that during way very unusual haven't working operationally missed unsettling times. are business we beat it's in Overall, usual. been a And even though

we We have we serve. deemed the essential based an offer business the and on the critical care nature been health products of community

importance perform manufacturing continued provide and a to realize result, facility we that to operations pumps and to of business, to their As to meeting people They roles the teams and diabetes we diligently our warehouse come continue to and as have supplies the of are with production jobs. all the ensuring are able an goals. essential our

and keep these measures cautionary extra for are grateful taken dedication. their have help safe employees We to

this been has early pandemic. significant focus, in of since area another chain supply Our

us and team future. next the positions and not or pump anticipate against several target meets communications component well Also, manufacture has as do or disruption procurement not any we over in cartridges pumps well unforeseen with experienced our near available regular to have manufacturing our inventory the Our suppliers in needed shortage months. components as or exceeds our levels capacity our the

our cartridges and discuss further, purchasing below of finished end a inventory quarter. for at sets customers will our and is anticipated infusion higher the As a infusion And sets observed levels. cartridges result, we than targeted first rate at as the Leigh

cartridge commercial manufacturing existing Our volumes across recently third-party year. parts commenced, scaling supplement to and our this steadily capacity will scale manufacturer be we manufacturing

primary In is set infusion and temporary through work pump addition, currently supplies we to while working carefully our our manufacturer are challenges. managing inventory we overcome these constraints inventory so

our over Brian? and the like now the to team provide on commercial call partners I'd perspective are our what experiencing turn field. in to Brian to

Brian Hansen

John. tandem closely commercial this customers company diabetes we represented I'm proud navigate very always community times. face It's to the as so of is providers challenging the of our our work health employees these care the Thanks, themselves together. with The during and to been incredible they and organization see and how pandemic

At changing. to also so and customers have t:slim t:slim our we cost quarter, being more to updated received software learn continues marks easy commenced began of a on technology. our technology providers Control-IQ the It and Control-IQ feedback shipments often focus on was care no as people warranty it offering why with to XX from teach. training their for life easy update XX start it's XX,XXX Today, late and X,XXX health our support more to high Control-IQ new the than as than pump to U.S. to the referred January, in Then users. in

And been impact daily be sales portion last This I few where At last try the the of our nationwide quarter, with the focusing care to people's began COVID-XX and provider look COVID-XX. March, over have to my experiencing to little months. we reported beginning began at things lives. many the health As offices. our on the clinical majority increasing in as comments teams change is help and virus provide our daily throughout employees month disruption the restrictions of the perspective significantly due to of of will what spread

they if asked internationally been representatives only not or restricted specific others office feeling or well had Some staff. and traveling were meeting were not to to were clinicians visit

Throughout our employees. restrictions increasing the for March, Tandem at we also

the for we care forefront, emergencies and the community continuity and person quarter moving our out more Keeping suspended. field-based of person and to appointments. were activities all in safety in to more diabetes As the in practices only at telehealth patient visits were employees closed of limiting health the

visit to reported was model the pivot quickly aren't technology but and to a that few restrictions, a transition team still the have seeing they're the leveraging later vast quite making a to an able majority day through telehealth clinical week, person appointments our in or time. seamless. all clinicians where patients have or there virtual delayed sales existing just field Our a conducting states, while some are two In

the providers. not trust to use this do customers really take their technology Many using and telehealth us they turned help to our them place to is and optimize to care in the clinicians to team telehealth, in we tools something In practices us our lightly. shined virtually support both of support transition health

key critical solution their therapy. their management A health place one such of in CGM allow provider. care This allows information helps The to is information part their our our to which our all information t:connect pump upload provides clinician virtual cloud-based pump access patients' system better and their patient manage a application. trends and customers data them with blood as glucose

out. we've our technologies of highlighted the insulin t:slim a stand of it's really ease to and moved automated As use XX virtual world where delivery

training in to our call high who We began people remote report groups satisfaction now are from and and customers. new efforts have to dedicated with these their virtual customers services training create training an we We including importantly volume who develop offering seen remotely so pump few trained Patients all not program levels have are have therapy. options time a to pump increase had refine customer it. of years ago to a and new

starts in that an pump It's were XX decision. a quarter our saw remind about important you sales days verification in in before cycle, sales a purchase As person to purchase to strong. you typically process making results, the insurance our domestic first

largely through absent have even strong, that pump initiated April and that our greater were in in encouraging demand being think continued it's in shipments has our So in to COVID-XX. natural March February. What addition shipments is would been to

often own quarterly clinician for Control-IQ's decision. similar to to of take quarters, of they benefits of a consideration over weeks we not with diabetes multiple build or with before Control-IQ uncommon about expect visit time a do Basal-IQ, saw we And for their and a person to a research where making do spreading. therapy same. months their What give pump to It's following period the momentum

activities. That that to a we we greater even daily This of said, will see slowdown pandemic, continue this down. why depth resume the will is XX their t:slim likely to of shut start the duration being in depending people experience until people anticipate customer and to much we has country purchasing the begin on though orders normal

we shipments quarters may customer the also of quarter trends is less therapy first, of continued is remainder than of adopt pump first April, this a customers pump daily of to competitive environment. multiple therapy has that percentage to because the last half consistent and see using in to new new a In from quarter. high as as from conversions. injections from likely former X% throughout of an declined, assumption which These three anticipated approximately natural The average interesting, injections daily there be of conversions less year customer the start in Animas our XX% been coming people notable, this is multiple rate have

their that people to We're cause can limit global also a economic spending. recession cognizant

when an a to investment particularly healthcare However, hospitalization very at potential prioritize, when someone making can and area people their in or complications be purchases that are in consider other for that particularly is time. this health, Basal-IQ Overall, costly. they an reduction you tend Control-IQ, the

spending the contribute see greater flexible could of which seasonality like accounts, year. could things we greater high so, in accounts utilization deductible And and to

offered reminder, have As it's month-to-month, as their diabetes co-pay distributors, some time, quite rarely but our a program about We've of payment pocket. to allow for customers XX% pay a actually typically with of is pay utilized. out to plans, people that

if environment payment offering to and for usage the their monitoring people in current in are plans. will accommodations We see increases continue

for options payment customers, creative if is this will upfront our We at always look burdensome.

shipments momentum be renewals progress I'm we also our X,XXX first a customer in year-over-year than making. more part meaningful approximately pump the resources to internal continuing more domestic Our on to and XX% renewal increased the we've this growing are focused our business saw pleased with quarter, effort. are increased and of We

a effect the stand-alone currently taking often more the of have the the in focused the of due sales care the majority While critically systems ill. hospital of are believe the patients and our clinic United are United impact in place proportional hospital endocrinology diabetes that model take international This the our systems seen outside markets. care States on we on is a will COVID-XX versus mainly difference through States, greater those in to

in close will all servicing impact COVID-XX of support customers sales we driver selling our monitor are COVID-XX be during still open, for that to with our international times. continue for and They a remain who We responsible remain the international on confident company. and customer to our meaningful business distributors these contact are care taking of them post and activities

regions new entering Germany, The have Benelux, we year, been are ramping and launch. in preparation this up France for

each the was and orders the our picking before were at were be of placed launch their up country. Their for the restrictions training end in in in began Our distribution and completed customers to dependent COVID-XX pandemic these on initial regions partners of will state quarter the place. travel

the on the here launched U.S., heard hearing great to United the similarly United are outside part outside in the hearing we the customers same feedback was Device Basal-IQ Updater, States latter t:slim that feedback of on XX positive beginning in we XXXX. States the are We which overwhelming historically Tandem existing

are to people technology and more our We Control-IQ later the this begin still rolling benefits out year. worldwide to of diabetes expect bring to thrilled with

we very the I'm offer insulin and continuing Overall, of products confident care change therapy. pump to the standard that are

meeting an slowdown be that Our and partners done team will their continued to day-to-day diabetes the then, job the Until are people in and relating COVID-XX we believe of safely community. our amazing flattening teams short-lived we patients during has pandemic this busy our for hopes demands remain activities. that our and will can we the a resume and curve see any here of

John Sheridan

Thank you, Brian.

new products, As we're current efforts. excited continuing as product also we our are our development about

home, than While usual. us, prioritizing public of they understandably COVID-XX that we most being times mindful related may are the review reviewers of from expect communication FDA also devices. FDA's longer that so Like are in the mid-March working be

for trial We was that earlier fortunate completed a are this pediatrics year. clinical Control-IQ for

included During the children uncertainty for with aged it's any the age quarter, the six more indication for in difficult the will FDA control any always of unprecedented FDA's review. IQ. the to the There's lower predict But during meantime, even submission these In submission. to in was to first XX study data from the process. times, an prepare continue we pending to approval FDA indication the the inherent timing age expanded to

for not We in any actively in development. other the trial of our products phase are clinical

bolus amount quarter However, we diverse performed had factors multiple planned with human the a significant both entirely XX These t:Sport, for that of testing second mobile app. in are mobile geographies a pump in our studies and controlled through for typically t:slim feature demographics. smaller the is

these environment, Due we for have delayed the products. future COVID-XX to commencing of both current testing the

government the will are timing restrictions the again data regulatory to be t:Sport, mobile our result, required target for the since pushed a protective travel until Bolus and and safe it's As is for submission filings, out both lifted.

very about both products. we That remain being said, excited

the XX on It's requested the of app is highly mobile one with is digital customers. our the built features by the Bolus most that Our for based strategy. our of new mobile health application capability foundation t:slim Remote platform

generation first beta more rolled and launch weeks. the first of this app a in will The had the broadly be upcoming in quarter out

significant information data healthcare to having cable in and a environment, CGM step to that upload see the in t:connect. allowing greater their through our our tracking but and and our from pump data a their providers management This of patients will by t:connect this app t:slim wirelessly burdensome is takes even trending to XX it feature data also will current application, as to benefit upload for benefit away customers cloud-based USB provide

in they accepting tell day. As ACT the past, we've shared each us raise pumps from meaningful that office time insulin often data different

telehealth important be of the resource With efficiency providing phone-based will this offering first and launch for initiatives. this wireless and we improving issue new address by visits, solution the to streamlining thereby app, office

I'd as financial guidance. our the call Leigh results Now, over turn well the financial as Leigh? to discuss to to like

Leigh Vosseller

afternoon, Thank everyone. and you, John, good

uncertain Our presented through entire well challenges the these managing organization by times. has executed remarkably

proud performance. performance incredible our to in Control-IQ QX, we receive the we feedback continue the of on our achievements, and its successful launch particularly Focusing are of on

be of And as impact a result, in we greater as COVID-XX negative much its our of sectors. seeing not likely business availability. impact would on level The the care without other health are same

Our first impacted by quarter discussed. results were modestly as only COVID-XX, Brian

million second recent our quarter. our began We behind ever, only the year most $XX worldwide is quarter, this which sales fourth with in highest

Our success result XX,XXX and ago. the first is direct versus the a in benefits a the offers. it of XX,XXX growing demand quarter all shipped XX t:slim pumps We year of for

quarter million geographies. international first from Our included sales $XX

shipments even million pump increased total, to XX,XXX quarter. in million sales Control-IQ able In domestic on quarter strength this were $XX the remainder outsized the of in We of XXXX. delivering first Animas pump pump XX% the from domestic supplies. $XX growth the with benefit were Our with year-over-year, sales achieve for the of

cartridges we customers on approximately $X that the cycle, frequently and estimate in acceleration As observed John second routine purchasing sets quarterly more infusion sales resulted mentioned, an of of this some stocking supplies. million. We from up quarter the potentially than

opportunity orders first quarter was the pumps quarter. markets international X,XXX our France pump mostly our quarter highest U.S., complete of in in XXXX. the and second This shipped We including ended, initial to outside the late which since Germany the to was Animas shipment

beginning XXXX. business from quarter Animas is made The be X,XXX part conversions first the against benefited meaningful a there in the well from first international our as no the of turnaround XXXX to in as results. of Therefore, comparison XXXX pumps shipped in large quarter backlog

than approximately people and down a outside to people in to customers, year-over-year grew base XXX,XXX increase greater supply the U.S. the which approximately sales. Our breaks XX,XXX worldwide in U.S. and XXX,XXX warranty XX% This installed drove

represented sales by XX% and at of pump at XX%. cartridges sales total XX% result a infusion followed As sets

our We have purchasing of continue face patients typical this work to crisis as patients see choose due and some and delay sales to to decisions in experience COVID-XX to through pressure uncertainty. on disruption their financial their the begun to expect interactions and the downward providers to healthcare

guidance the As with a of helps is on to we received depth on information are of duration XXXX degree Control-IQ, slowdown annual believe discussed, at the term-based COVID-XX's sales. what will and on color in which best is we mitigate near provide withdrawing the impact we feedback estimate and today. business. this we have certainty difficult available extraordinary instead any our It for our Therefore, encouraging is the we have time,

Brian As vary across greatly is anticipated and quarters. calendar months year but begin our deductibles, and U.S. across their to meet not pump mentioned, also the quarters dynamics the the people it are for U.S. only between In weeks typical seasonally the as to scale insurance the the to a within the U.S. and

QX. Accordingly, March highest month was in sales our of

to expect sales least X% at of in quarter, million least achieve second last quarter implies which $XX growth We year. domestic at the compared the in second to

assuming in recovery. a see the until the weeks progression signs the second seasonal of or same we We the across quarter are even quarter third not

study. Despite will their for Basal-IQ patients the hospital expect because treated commonly be to excitement markets outside in the the greater the international impact we more that a experience tend U.S.,

primarily second international the based lined quarter at that the first on comparison XXXX, for In a our for results same anticipate that last our international influenced existing least the installed pump up sales supply second factors was base. to year. be quarter already driven in $XX quarter mind million Keep difficult by sales, our of we for in

least to in anticipate second worldwide In million. our at sales summary quarter $XX we be the

dismissed visibility have look and Although, we what achieving guidance will more in experience a not benefits the result as curve and more scenario have annual could Control-IQ. COVID-XX our like guidance that we possibility our the of obviously recovery have withdrawn original no completely people range to of

This year. product initiatives and progress benefit quarter greater margins first performance long-term of worldwide mix versus of quarter first the prior us each by with than pumps of our XX%. product improvement of XXXX. volumes the quarter drive to XX% an quarter XX% We individual XXXX was of compared this to margin up was margin partially offset in on Wrapping impact gross the representing with consistent sales saw of on the XXXX that higher based XX% our first will gross in in the goal the

quarter. new updates recognized expense of also launch We royalty The occurred royalty resulting the total as approximately the cost with Control-IQ within software shipped well pump was X% the this conjunction January in in as that of for quarter. both sales

Non-cash the the of stock-based improvement expenses sales. increased approximately at in essentially which X% adjusted demonstrated up in from We impact in sales first the year. compensation of margin equivalent The prior to leverage non-cash EBITDA operating adjusted as comp. our X% year-over-year stock in quarter excludes reflected of was breakeven to EBITDA

positive quarters EBITDA. stock and straight We to profitability Operating in continue programs $XX objectives. now $XX drive have market comp million to the of expenses long-term customer to in quarter million as reached six adjusted non-cash including leadership our first grew support we support

compensation. to $X to operating declining year of last in This expected million comp XXXX non-cash The these higher including in seen in prior compared from the half the in second we stock few start years. are expenses have of million levels charges the $XX stock only

from year. first we to with is This timing quarter deductible the decline the and due $XXX was cash the experienced ended end sale decrease in seasonality a million in $XX part investments levels the customer resets. lower million quarter typical associated with which insurance of first total We pump where anticipated of

planned stock for inventory annual capital other the and to include supply levels payout awards. incentive investments. of building These up against The decrease for protection disruption by magnified facilities compensation capacity and was safety manufacturing expansion chain expenditures meet

and in Even of due COVID-XX to focused of sales drive by long-term This exercises $XX and achievement prudent to ensure thoughtful we to was in spending continue and uncertainties organization making on investments stock are offset employee the from growth of option initiatives. light our million. partially profitability proceeds

an result the R&D cash the additional term. in of These advanced activities include near pipeline of and continued may all advancement in decrease of employees recruitment which technology key solutions of in implementation

new evaluate becomes uses as to of coming We information necessary. changes make in is our the will and months cash considered available continue planned

near-term our objectives. sales expect key XXXX committed investments, for relatively achieving on compared QX and our our be we continue QX Considering adjusted EBITDA margin with We margins. making to modest to gross flat to margin in outlook QX remain intention pressure long-term to

will for over I questions. the that to it operator turn With

Susan Morrison

any Operator, though happening able questions we to line? able of are looks of difficulty on the to isn't sort there on connect because Well apologize behalf system the be as there's and operator to some it the technical ask questions.

So maybe we'll in they're give to more it a able minute issue. case this resolve

if you change apologize is questions then our we'll analysts address. follow-up over and things have e-mail And This would or but like my happy in people Morrison. Susan e-mail do me or directly, any not to if to

you team want just to mic. happy now. and it We'll us I'm to a management to amongst facilitate able be these If me, wait for actually send the to

Operator

Thank you Chris question of for your Pasquale patience. [Operator Guggenheim. Instructions] comes of Our the first line from

Your line open. is

Chris Pasquale

okay? you me hear Can Thanks.

John Sheridan

can. We

Chris Pasquale

you that hoping on progresses if just of number the about in color us off terms was behind XQ. to thought are assumptions assuming pressure could starts? you start how with saw on more I give little And Perfect. bit million you What relative in to you a what then how $XX have April? for patient the new Okay. the

Leigh Vosseller

we've really now. on already QX Thanks guidance for based what seen the Chris. right The through is question

that system pretty So how come you know already can May what April the we will And much looks in dictate orders in. as we will imagine like. have

anticipated we forward. June what as normally now would At progress question point highest biggest quarter. June is we month the typical happens seasonal right in the a and be of mark would this scale, which that haven't mean The

of our today coming April million. all stayed overall. keep on So on But to orders intact number typically though from very monitor orders competitor versus through pressure now confident our conversions $XX monitoring we're point are have we we least we metrics even that hand, hit about at based MDI at seeing already those have that some we're what know can people that this going international we Interestingly the that. in we're just and that

Chris Pasquale

-- Okay. here new supply XQ? That's want the the thank for actually for there the impact there from revenue European went this a in this And the I OUS helpful. quarter territories understand then Was just to stocking into that stocking. number of contribution quarter? Was you

Leigh Vosseller

Yes.

that contributed sales quarter. orders quantified haven't for have initial but to We international Germany in and which France did we our the stocking particular this

Chris Pasquale

Thanks. Okay.

Operator

you. Thank

from Travis Steed comes question of of Bank America. next Our

is line Your open.

Travis Steed

for Thanks taking well. the questions. and Safe

in that on is $XX of what much that? Just through your the order have plan million kind happen be Just expectations? of below original to half. your think the how In original QX, -- to to get kind back in is scenarios

Leigh Vosseller

Sure.

we about to right have At sort at shape month only how it visibility our don't As anticipate. might but you what look And the of us of lots assumptions, here think in year, to or hear of entire one shape. our curve the this of really we down conversations obviously so. front modeling W a detailed about a any give V you is the U Shape upcoming comes point recovery for even what

QX uptick factoring ordinarily not in seasonal of sort we're any so we see. about into And even go as QX that would we thinking

Travis Steed

know originally I plan haven't fortunate competitors Are year. then and for know you you're had you still yet. product reiterating patients? And XXX,XXX and you then guidance for your the in got five-year built I your this but approved also Okay. competitive suspending some And launches, conservatism

there's a could that like get seems it chance those So delayed.

of to opportunity competitive launches Just getting from incremental delayed? what the kind think could there margin trying on be through

John Sheridan

think get have happens our in with to see numbers intend And this at we say momentum to had put to still studies But plans. Travis, it think just months a still us that's what clinical not -- on Control-IQ. to runway. build We year time five-year and to and be case. We that specific we about wait own just their point I of runway in place I six plan. I the anticipated for the on we the would competitors gives have think obviously that

Susan Morrison

And a next question? there operator is

Operator

Yes, ma’am.

comes Alex from Nowak of Craig-Hallum. question next Our

open. Your line is

Will Fafinski

question. on is actually here. afternoon Will Thanks the everyone. Good taking Fafinski Great. Alex for This for

are these to how sell guys you a reps be John medical where it start, world to post-COVID clinics? harder force the for might to Just access sales positioning in

John Sheridan

that Well, our interactions say I'll just with great our two physicians. job a transitioning team did virtual

We're relationships have with trainers. physicians. our excellent our in them We touch our sales with frequently organization both and

Brian was great a I'll color did that. job. the They So to smooth. little transition let add a

Brian Hansen

like I for the place had what take tools to tools then going place of Thankfully them. and now physicians. think calls lead. virtual would interface many And see for these and in has we're Yes, to the the how in video training. e-mails going we with both John, We're their with conferencing everyone to they also and us clearly

So via really we've virtual now. calls a some even setting how unique all we'll out. see that plays sales And done

by conversations their lead it's our at But it as day a going think we'll been well. they're we've adjusting norm account account with of kind and so of I time. far and a in take direct accounts to in the to new vary all and follow communication

Will Fafinski

to diabetics That's is COVID? the No. And great user what devices. the And then patient's about to shoes little is end hear. switch second their saying stepping just a willingness question into bit

year? to And this upgrading access During them what end patients turning for hospital? when the end-user the would from off do time the the at a demand tough it to that through doctor of Is all? might be or Thanks.

John Sheridan

April robust. far been think has in and can communications our our in speak the with so only field our team we I and calls very into QX seen through team we've what

at their actually research. they still They're their bit a through might communicating are at that They this home. physician. doing look you with time have So telehealth little

teams inside And us then open actually and those to out have time conversations. they're them with to the our very now very accessible with sales and found to conversations right be that reaching we've external to

So we may face-to-face unlike walks virtual now. we or the may before very captive we're participated visits and audience finding that have before sales of have our Gallas some calls very the had actually have in well right a gone

far. and a so onto well the But So can our very what it's coming tell months again the we're you very only switching from been so therapies we year. into open four know we far know as patients and norm, adjusting to numbers NBI new pump to gone have

Brian Hansen

add blood along affect as that significant stress as itself actually the control, issues shown environment that blood control. has hyperglycemia well people's in levels to just been with and the also with COVID-XX COVID-XX cause, sugar I'll with an sugar come dealing

Control-IQ, continue So of the it their that to does improvements overall we have actually they're such control. -- we're And that expect demand to hearing device. appreciating benefit people in the drive are because to

Will Fafinski

luck Sounds forward. good of hear. best Thanks, moving to and everyone

Brian Hansen

you. Thank

Leigh Vosseller

you. Thank

Operator

Thank you.

next Our from Brooks of question comes Street Capital. Lake O’Neil

Your question please.

Brooks O’Neil

and afternoon Good progress congratulations you. guys. continuing Thank on

for normal that. The might see you see first So made you there I assuming about seasonal in any do purchasing jump the any resumes But that bolus of delayed building backlog? patterns is, demand the question indication when I indication buildup. understand comments but understand a product. life any you the patients my not pumps do normal and be that have a

John Sheridan

Brooks.

virtual to largely training. would I months say better virtual visits indicated, all surprised, as obviously pleased anticipated of First And and we in the the weakness March to driven Brian as we it's that would and by quarter. we done April strength very And converted COVID-XX, see those have Control-IQ. and two people in were without first in

at they now right see actually and to we actually first IQ. it's ship to the because in started talk approximately January. began look The three thing we months to now with interesting Basal-IQ, what is when back physicians, three happened after with from It's Basal-IQ. Control happening of time benefit their people the And same months the started Control-IQ back to

mentioned, So momentum. Brian growing

great express as people see And to seeing growing to that's value to the product. expect they're of continued the going only We physicians, for results Control-IQ. underscore their momentum the

that to prepared with that. I that through a bump deal will well we there do So anticipate get we're we this. be when And think

Brooks O’Neil

overwhelmingly with just in what the I But means. Yes. understand really little is really feedback positive whether customer patients? correction on or some us the give the can you your bolus a things sort elevated, general of anecdotal Great. color of resonating

John Sheridan

Sure.

And look say time if changing. absolutely customers first you are people at and incredible. the experiencing The XXs. received, just It's blogs, high the I'll you XXs doing thing look it's are range not is It's is our that. who that, at and us. the in that we Control-IQ e-mails now calling life the They're if

experiences really is the night. to the they're at just to which slip they're able and their amazing they can while night, fact got just they worry diabetes And haven't they positive. sleep have through that And about People sleeping. just go love to

easy GX, right everything So it's integrates great. now And Dexcom with seeing its It's the it's It -- that it's require fingersticks. alarms. we're use. strong, to which doesn't also minimal

So it's positive. very all very, been

Brooks O’Neil

very you much. Thank Great.

John Sheridan

Take care.

Operator

Thank you.

comes Our Blicker Cowen. from of Ryan next question

open. line Your is

Ryan Blicker

quick with Hi. Thanks starting two for ones. pipeline taking questions. my Maybe

me believe trial? I besides to just what bolus wanted testing that. And factor can submitting. a then to you For clinical was the prior feature, other needed you required I remind also... human work confirm don't remote clinical

John Sheridan

ahead, right. That's Go sorry.

Ryan Blicker

XXXX launch any might an add attractive to launch in what you we that be going to trial product? really the that you little what's in Or incremental bit could think features. just surprises update give was with happening world? that some type planning work required to you us were algorithm XXXX? I on do clinical given for expect of And in also should without to launch you later the Could a think launch next-generation still

John Sheridan

feature, into or that's Yes studies a definitely time very goes that planning the The work all about human than there's mobile factors. the work. day it. of additional actual takes trial. and testing just lot reports. to two bolus factors There's prepare required and a analyze that required. for is a clinical And results there's different human factors no And the It's clinical is there human then

really of in much not period it's clinical study. a to the complexity shorter it's a of -- more I'm happens much challenge So contained of in all and time understate that the doing but it trying

there's factor the planned impact we'll think it the done human we almost submission. between the had doing the a studies of one-for-one in delays the actually to we on time that So get time

-- working we're currently still are generations. We aggressively the Control-IQ, on next

We it actually at risk-based manner. looking are a in

first a at really not So Control-IQ clinical are in going of to great looking improvements we're work. require deal the

we're what that's so prioritizing And now.

confirm to to year. likely this work if that's going that But just required in just later the obviously pivotal confirm and that all COVID-XX say to impact it's to going it the studies is sometime timeframe. impact with small starting at safety the those clinical difficult be study be we're work XXXX changes There's start-off going And I of that now. will a think and of with a series to right

Ryan Blicker

can any you And Healthcare? provide any major your United over you. update Got this with change you making has COVID-XX helpful. payers it. have Thank progress installed since Very with and been may on conversations then Has emerged. the last month

John Sheridan

Well, activities. interactions payer of our we comment on and any don't specifically

in onboarding features looking really our many possible. reimbursement patients. definitely with get work agreements the as complex patient to to to the as process our priorities are As we've about of payers are of talked that and also additional past get our And then place in some benefiting streamline, population our our for

So on going in that there's direction. activity lot a of

The control But positively been the now think happen received. these impact acute to We're with we'll working and great time. progress. right payor this. pivotal has seeing And we're time things takes see data it market very and all the initial organizations that I do over

Operator

Thank you.

from Matthew Stifel. comes question of Blackman next Our

open. is line Your

Mathew Blackman

us curious headwinds don't Leigh at the feel you'd you're that questions. or Thanks -- stabilized those can you'll say I've I Good like of afternoon, you magnitude headwinds, of So for Hi. the to. and what ---- couple if I'm expect but free about in least we seeing April have tell that the everybody. for a got But bottomed?

Leigh Vosseller

which would said the down really is mark I of seeing to how they've at say at I question. mind Hey, as guide stabilized this are bottomed we think pressure ordinarily is this point. question the it big we from April Matt, proceeds don't could compared predict I in is that what sequentially whether why thanks for the is see, and point. can our that June But there. or All May

we where moment. this at that's are So

Mathew Blackman

this my for I question. all enough. follow-up territory new Fair And look is Okay. guess us. of And

So help macro you are understand to consumer try looking help about what guys guys cross and like of about how but trajectory? the Obviously, potential are you to project you. unemployment? all metrics how are Thank think numbers currents? recovery more the Just impact you thinking or of order at through importance us confidence us you thinking have indicators those

Leigh Vosseller

good as guess what And to really about factors we anyone's But QX Sure. the be mean macro and beyond have is mine right would business. driving to the that impact I as more that you're -- happens. consider would it's

turn When as normalized phase how me point is that's be requirements So are environment. so won't relaxed. how We how more state guidance come -- a because do stages Thanks, home can rules And play we like quickly or a states it for to out that out relieved? the when annual return We do which well with they very how to happen believe It we what things this really our phases of position of instance, this in out. will to turnaround at one Mathew. those distancing time. is guess quick now you. over as why withdrew no for going social

Mathew Blackman

Leigh. you, Thank right. All

Operator

Thank you.

from Matthew Piper of O'Brien Our question Sandler. next comes

open. Your is line

Matthew O'Brien

Thank Thanks much. afternoon. questions. taking you so for the Good

know it's saying I you're Just for off the guidance you're comment Leigh not your but and either. I thinking reiterating not guess, about starters, not or table full year

half your to be would done you've for get QX and expectations QX in ramp significant pretty back what Given the there.

rolling So out technology. you're that you're seeing for demand Control-IQ, clearly extremely as strong

to a say the ramp seeing little talk the in hit half are bit confidence just you could you something you potentially what can about big guidance and the year? that that given back of you So give the

Leigh Vosseller

downside even it's Yes. I -- don't or I'm that It's there's that. no saying not a just even possibility. necessarily upside to

about people is out again as better of the at at in you guess to the experience occur this are health this. very have how which environment, of plays with having about this control. will mine look If this. factors, through But are the macro having success And time. couldn't variety anyone's we the we transition role market. launched like the we enthusiastic as we're feel gotten that you and Control-IQ with We the a a us what can't good is the scenarios in have help But that overall

Matthew O'Brien

upfront revenue bit was the expected have component Okay. I And generated of would all just you question gross that disposable but there follow-up plus than in then the in margin little is guess well. a the two bigger the given the kind lighter I as one, quarter

keep is right. that little plans a I of year business better? the come think if of available. margin out bit you that was But are we you talking this maybe chunk payment have to OUS why model in then that about wasn't recovery? those a gross that you later as And guys factoring big my How the

Leigh Vosseller

gross From One there gross And of margin. that really margin are look perspective Sure. play versus flat were year. is into a itself. you when the at year a last couple we this mix factors product

we lower which so is driver QX biggest year the sales in saw pump of this And the last gross our of margin. of was for versus year percent QX pump

associated the first Also Control one that with it's IQ, about quarter point. a about component margin in royalty time that add was that have we to being which this and

are across So factors a last improvement We all this quarter product really number there see margins that. year. did of versus though into playing

long-term or still So our and believing we better be we're made where that we've margins still very excited progress about that the XX% go, expect to we models. in will

in business, since as when take We've to much be them a advantage them might seen well. to distributors financial struggling out where very comes then that offer something particularly this assistance. we help some beginning there we'll payment can it say continue them. of and of where need more enhance them of payment people and maybe to our And it's percentage plans see really if that's there we evaluate pretty people our But small who plans environment the hard had we've ways are that can

to So at there we what plans, help. can looking because customer but and this the are any change payment wouldn't seeing anticipate do to we do always I -- voice of point, trajectory hear

Matthew O'Brien

Very you. helpful. Thank

Operator

Thank you.

Taylor UBS. comes Matt question from next Our of

open. is line Your

Matt Taylor

taking Hi, for the question. thanks

a telehealth wanted on to I bit. little focus So,

would You company. Medtech say I It talked capabilities, seems for having some your which are relatively you a lot you're like about advanced success.

the about your about OUS in with would those more and you that are usually parlay U.S. this a just into I seen in to said disruption experience folks be hospital. by that you So because wanted talk OUS, because impacted question

in U.S. seeing not that there? have as done Or much they to you're telehealth why guess can't of you pivot I the use appear So

Brian Hansen

Yes, this is U.S. the first. Brian. I'll start with

XXXX. have As we in to said, trainings late XXXX, remote are fortunate done I back several

in we follow-up, that or the patient at that And X,XXX training, got in out additional along. some kind of, So good send some the to those pretty we've already got, of homework a virtual count and things we a it. could and range do X,XXX-ish, that survey done we cadence we'd then help

good pivot pretty we So able to we at it were and got pretty quickly.

educators didn't What and meetings with the I really much diabetes physicians we is and the see happening accounts the as certified virtual are have. like

it I'm lining we this. and surprisingly a of can't been be super every well alternative face-to-face, U.S. gone my I to kind they've patient unique bit somewhat before norm health they've that it's while new bond very silver have patients of entire on and to a trained some do team system. we're The it's will well care care embraced provider think forward be develops health going and of together it proud a I and all So that trainings those a really a And learning work for think while. and will of not the then remotely for for And get received. can the reacted who how last with we right and now

just aren't much best helping here. those that the practices setting patients What doing acute in in our really and because have addressing hospital access pandemic shifted some seen more. period of care is on an we're limited now Europe the we've as to distributors train earlier unfortunately hospitals in those But seen

not there's by of varies by in them. U.S. a here the but different all little that's varies it It the region, for same state by dynamic, just country, So bit

process And lining still at talked telehealth we've as so is solid internationally. here think I seeing this silver about we're a still sales through. seeing we're the And piece We're good home. sales going of

John Sheridan

and But app in funds our a services around people building foray a experience that health products of, ecosystem this as world. new kind the and Matt, virtual now form We're driven And to that looking initiatives. I'd the data this. improve pump. first at robust well-positioned really, really for to both the underscores the physicians our the really really mobile mobile of it is in the company, really using importance we're of investments say our

increase guidance using people the and both as better. communications, to the To just diabetes the and well the physicians the make pump the -- manage as the access decisions help to basically data the better just

Matt Taylor

Maybe just one follow-up.

high people You mentioned that you're and seeing range. achieving reports of time very

the the number about I’d that about So so from love trial. in world? there could some talk that's the you playing real “controversy” why Maybe well you about out was given think if talk mid-XXs

John Sheridan

Sure.

who past as there just control state think diabetes when diabetes the States the really trial think try at representative about you good in didn't had the of the very we've at control I look there people where to very of are people I was were who then all. the trial, their United and talked in

done And so bolus cases high AXc's. many -- there no there no percentage the trial people was mobile pump excuse in during in me, had the was a significant of that

so And the down range and overall representative. population for group. it But was brought they time typically that the of

anticipated, something experiences have and in great pump, of the opportunity post-market But again they planning if and seeing we now using when to look just who you you looking and care we're They we And shows very serious population, we it. it's many, working their conferences think have at course time near that seen are had on about to do here I to at who at many -- looking about managing present collect great and range. it data now. it's and the people I it high reports look see we're are at diabetes. right think and future. And of We're the have they're as it's the really people

Matt Taylor

a lot, Thanks John.

John Sheridan

Perfect. Take care.

Operator

Thank you.

Our of Steven Lichtman next Oppenheimer. from comes question

Your open. is line

Steven Lichtman

you do first offices guys. of on a you Is you -- what that bit expand you. Can are? virtual Hi about some little alternatives offices they capability? training customer talk take the guess training on it talked then about doesn't how those you've that your from where And all remote could works. that trained I and how wonder, there? Thank work. And this where for training do Brian, something those more remote I have if the to

Brian Hansen

Sure.

something as that. So to to yes, training to or be been the first or Teams Skype able question remote have Zoom us They of well. trained been our utilizing some by accounts have do or

training educators day is are help trainings we've our great us out our own are their their they scheduled but patients sometimes their the So, which doing with got on a with team accord because remotely patients for that many multiple and there directly.

teams So for there's it's us through And out prework really our school well training. using are were worked It's on for front. kids a today. many Zoom that specifically, typically as of virtual done some -- Microsoft

is We've And everyone pretty two. to that resources follow-up. a living is done now. a after So call typically virtual used There is and in. we're this a of or world then, video training got getting online lot some there's

quickly. pivot And said those as last to positive. helped us the things during very So on time really I year throughout feedback we've been have earlier, and working has and us the allowed resources this been

if face-to-face. We've have a the So, to really technology physician's able that a that, patient a training. technology. type they're and reasons pump of or of remote There's to to way. They'd new variety for in simply remote comfort office they've some or like trainings help can't, doesn't in qualify for it's with whether patient done just been the it

socially there. aided we've it. And well extremely them with there's a out still working calling into the But that that had those has by doing from distance that health perspective. where we've provider physician cases we're office is worked So in care challenges

We're the thousands this. at working incredibly good getting it out we're in doing and well. it's So now

think to So be I fun it's going forward. going

John Sheridan

the trainings thousands number in through done first we've see to the year. remote we that Steve Yes grow quarter expect of just and

Steven Lichtman

just be those the helpful. mean month-to-month periods I a would Great. like? is times? four color on talk secondly mean amortized Brian, what look the just any payment that about follow-up. little years? then sort that Is the different it. bit upfront of And I you more Got you it another of upfront mentioned full over spoke over you more Can a flexibility. about programs

Brian Hansen

Yes.

think varies. it I

getting what the to a delaying willing really partners we're one be not of for if been company over demand to payments at spreading that typically a a of is payments our So the there out for that of spread pump. longer warranty might time folks. We've is period our whether as doing or for that more that. hear to And it looking far working with facing it's hardship strong today historically just more or offer out we as maybe certainly earlier the not certainly we're low. that But asked right ensure has to been pumps get to as Leigh's or But for surprisingly we're supplies patients low and open comments now. requests a they're

monitor continue point able with and we willing certainly our patients and flexible definitely it to So, we're to and help them. this at be

Steven Lichtman

Got it. guys Thanks

Operator

you. Thank

question of comes Joanne Citi. next Our from Wuensch

Your line is open

Matt Henriksson

is for in This Joanne. Henriksson hi. Matt Yes,

driver having Or quarter telehealth of other to on Based Is setting? the the to your given your is First patients from bigger checks, observations delays kind of question factors? more off kind through second it is pressure of and anecdotal delays it channel on regards with just what's here? commentary economic unemployment or go orders. kind

Brian Hansen

with We be yet Yes funnel insurance unemployment I of the these There'll had to too out actually the that. we patients. and haven't our you. lag it's fall some beforehand be of due felt haven't tell it's again we've with a seen with again. early certainly pressures. that think lack of to necessarily people discussions to started interactions But honest in Brian or XX-day

and figure So, go starts on I Leigh, any if year-end manifest we from in here see different that? as way. that itself out thoughts think that to forward we'll a

Leigh Vosseller

this is lot it a to people of I environment. new right adjusting the now think tell can we best

early key point to impacting what us that be determine as Brian's the So today. factors are it's too might

Matt Henriksson

-- OpEx to? your the And guys costs look spending, pull Okay. and as That's some of kind your do variable we to what more helpful. then in your you you if at have need of levers second,

Leigh Vosseller

Right.

this of for about I'll to year months. go at our initiatives the market year's long-term to invest necessarily leadership a of to It's a further year, still don't back from talked XXXX even find some laying couple that in continue this going meet us. the sales. point. we're We leverage about they order of for pipeline So profitability this though goal really years perspective foundation being our technologies those a We in drive to investment five anticipate to in investments

manufacturing are our base need growing we're absolutely the we what some there's capacity. to need to support prudent of we're in and we're looking invest the hiring to that just and and spending those So seeing conserve definitely as that installed We needed at on But investments slow everything the could if people be today. anything continue fringe down can if we about cash. thoughtful we to delay we to

Matt Henriksson

much. helpful. That's very you, Thank

Leigh Vosseller

Thank you.

Operator

Thank you.

question next from Our comes of Capital Berenberg Misra Ravi Market.

open. is line Your

Ravi Misra

families I the okay. you you taking for hope hope can me And I doing hear okay. Hi, their question. everyone thank is

that about us XQ the on U.S. I you I of include maybe table. could might to if the on us have return So, better hope guidance in color the been this then want March how are Can little kind you off of think working you April to in? that Or XQ number people some being and that? guess the aspirational give a help of guidance cadence XXXX bit coming original not

what after telehealth And exiting do we that's this of and then seeing then a getting trend XQ And kind continue the you of that. just the of half have kind year? one trends on second mean backlog XQ? how of towards And end you those expect resolved to I going in people into the were of quarter? with I are large

Leigh Vosseller

there to. from to give Okay, trends or beyond nothing can the month I from the there's current necessarily is terms consistency great. we're we're of It's coming conversions. was guess to as a competitor When color two I quarter. What comes into say really what Thank happen MDI seeing wouldn't our here. happy anyone's backlog it see to can the you. to you. ratios hear in Nice versus of

we think move might as more might MDI be pressured still one forward. When happen that and might

at this have anything about clarity watch to So, -- really next I quarter don't other we'll the or have so. don't this month ourselves. you have and to the patterns tell point any beyond to continue But I or really

Ravi Misra

around And just then Great. telehealth.

are help Just to of Can us just steps say the that what seeing. you the questions kind of build helping on some with? we're that actually it's

in kind -- more there support seeing is making kind existing more onboarding? just Or curious mean patient of you or with I'm I is helping new are efficient. or in it your you with of kind where of this right management sales the training you. patient And infrastructure using. new force curious where coming from? in kind Thank you talked all of kind is now? the is what that you're of know house? I some about video -- to But you strength just I'm see built as doctor vendors

Brian Hansen

that. connect is or all head some sort this I'd is our on technology that Through been in-house developed application other the day have using in the by technology but team. everybody way. to had a of virtually say pieces start we an face-to-face yes the certainly again And

But do as So well. to I helped. think certainly physicians it having are that

in line put telehealth already We're to of So, it. the right with the into We've so training comfortable it. them right some We're them. on initiative get other trained are helped channel our sure patients on that that for the make successful being helping we be They've the patient with folks. can helping. they're

is fashion we a on different more a in a change. and through it if call something So, were nothing really were it going than is technical we

to it. with have comfortable be You

very rather and with comfortable be well. pivot have be folks we'd patients pivot it. do face-to-face. ready to That's our have clearly had demand still to but sales the a inside we it. have were and why gone have to already force We to because there's there field would It's And physicians everything a we do the or had

can think we're And in going of a been now. we're But we extremely see we'll right positive. we're right I all to and we're about out. surprised the environment going it plays we quite the proud And I now frankly how doing and here. do has And this and continue all think it's can the while best forward for in feedback that's

right on to and more improve. play it right The things where videos a is we can to on or have also can try with different a how little which you iPhone our you putting to cartridge variety nothing pump. go continue the But do we now helpful. really application very of the together YouTube So, see go than fill on

technology mobile as think the device recognize this. of positive the said to the People app And Tandem feeds earlier. talked John about ability our kind I into now And it through it's update. all I do as a

John Sheridan

that the mobile had of the endocrinologists XXX were I just were we about the that information a on said into bring conference additional population. month his endocrinologists to and therapy management on that with Ravi provide the And I'd could around last also pump say -- that XX week patient important call his even in to world. actually is last app download actually system really he one over people for Brian actually so he's

So, that was a on huge him. burden

weeks, the the basically to few as pump comes a from cloud. upload mentioned data And will when app I in automatically it mobile out the

And so that health will eliminate that burden on practice. care the

a as big that see deal. we So,

just improving also of a the that's are that of the person health And in and go improving using things they're -- think again it's going this digital provider care actually the efficiency to towards And the happening pump. of we've number got all I health the experience area.

Susan Morrison

question? we be bridge. go in there So, the Operator can may another next our to delay

supplement and going I'm so one I via here e-mail. And to that ahead with received go just

more to basically is And if so we're the prospects stuck doing question this question digital on really is. at are is who focusing home what

are is basically so people it And customers. working? who So,

to best really home think I who pump doing benefits you'd customers to therapy? conversations be them are we digital prospective the in this. probably talk of about to answer are are Brian who order at People And

Brian Hansen

far as interesting a we're messaging that something it's I existing taking patients Marketing their question, to kind questions of as or our in we're here needs, to them supplies learning of pandemic think and technical our we're patients reassuring they need. right care about first any is great may support right? is really quite Yes, a all now and and

variety on out, somebody but we social to We reach lot be based methods stay channels And to interest an or want want both that channels to that a feedback if work out we in. inside interact through expressing an participate and active does continue to reaching in media through more, here way sales on them certainly a are the of Control-IQ. digital positive of channel

of is kind think not said home nice captive they're at in the now little but sense. market in home. environment, as months. Tandem be right does have We're trying bit at it, accessibility or that we and patients much specifically more. those makes the not So two concerned that of any target to last unique we're this trying I of conversations are family first, greater opportunistic We're taking more benefit to different the to part and I until a that captive care about overly it if during learned And been that earlier,

Susan Morrison

the And Thanks. are next bridge in we Jeff question? able for to

Operator

Yes, of Ma'am, Jeff Johnson Baird.

Your open. line is

Jeff Johnson

XX% if past Good XX%, quarters. load some to But payment in guys. your the over quarter range? plan XX% years? you would to revenues that do anyway as of that of let's P&L I And that people supplies or on rev hear hoarding been are supplies the were up base, that just the the XX over love but use kind some gut both. the Should still maybe just out Thanks. two remain that plans understand they there? end was to payment Two I'll as just perspective if you. to them One, XX% with supplies in that or patient QX kind they on U.S. is evening, follow-ups of it the on in you upfront? quick an time, mentioned. the unemployment would Thank two in up My in we answer guys trying XX% say already of want go in here interest wherever then upper rec you plan. of up we few to payment in it recognize that revenue expect this example ask Do spread you years had

Leigh Vosseller

to the these installed I predict with it's supply Starting Jeff. questions, function actually days. easy of our the question. mean, a for Supply Thanks pretty is base.

saw QX, people thought elements want the you if so thought to the guidance could to it one a of But about some, easily. year, we is quarter pretty, with pull forward little predict base. supplies of call now, of otherwise of pretty from the more supplement first stocking we a were QX to we that in tend we but best so bit, associated guess of in installed what across up. I because as million my seasonality just was the And the that's QX. tick-up Right it $X that mentioned about supplies because growth

treatment, your on revenue to about the able if To collectability have your different there to and second But that the for can accounting part, and most lot it it. history based plans we a collectability rules estimates. the with the because on of question, you one, payment assess payment plans. when of are book accounting best some upfront some you day estimate We're make comes

revenue So, on one. still best amount expect the the to while recognize day we of would

Jeff Johnson

Thank you.

Operator

you. Thank

SVB Our next Danielle from of question Leerink. comes Antalffy

open. is Your line

Danielle Antalffy

much Hey, the good for afternoon. so question. taking Thanks

existing of pumps patients different relates QX Tandem streams U.S. patients competitive switching about think here should be any doing the point, end thinking be guys bit at in COVID, but like And just get as so good And the willing patient QX. it about the on most that of sounds the I slowing telehealth on hopefully with was have you revenue And back and that patients telehealth have it that little be hoping significantly pretty far it the was subset here when belabor a is curious, guess a give upgrading. would but to subset on of you'd you in recovers we I then where color, to from in then you if from MDI, QX? which that. patient job to just sort been to Sorry I clarity switching sort risk of

Leigh Vosseller

deviation you coming we I month me, we to were April Frankly, a a from asked do. that still of would the us. remote were the But we so to it therapy of to have thought seeing patients because patients if that training I the from would seen you roughly competitor coming comment that from had norm, our say impacted, it. really we come haven't if and MDI or surprised source that what significant as from occur. this in the change point. it that all I'll to call a through And want just when at mix population more this pump such is patients, same far came the MDI the But conversions. Because with patients only not goes moving would balance have that began, be won't ago, of of like said, speculation fear they to been maybe

Danielle Antalffy

the Okay. patient that Got it. Thank have then other a around you. I I is is patients. And question get on -- you've telehealth so -- of lot trained

some I'm getting naive patient switch, caution checks specifically clinician in physicians Thanks comfortable. comfortable some it's pump think or pumps so aspect so MDI? get much. patients, As hearing physicians and with -- physician especially a relevant I'm but the physicians you for around telehealth getting caution training doing clinicians training on of I there? a less the a patients do How

Brian Hansen

Yes.

account-to-account. I think it varies varies certainly and

we that versus And XX/X. questions and can method of They're do other rigor the and available center are can there's as a the tools One use. that training with the time follow-up that of people obviously ways have all simply that showing Tandem tech use there's lot our they're answer trainers is Danielle on a There's access them that it, here pre-work to we our can and available. And them employees. it virtual lot of us. session with we support a well to and

share I if involved, physician the show that So their and concerned are there we them again a just, on it's is train using and we're little them what patients. with about think them simply a exactly is bit

far to so similar it a positive feedback. another the makes And situation. them are prescribe has And in coming hopefully feedback been very positive patient and patients that the more comfortable back be with might

been so it have physicians far. has a not the So, telehealth well. really clearly as to use barrier And

more with getting month they're two more ago. weren't or and comfortable they it, a if So

John Sheridan

matter building confidence. a it's Yes, I just think of

Brian Hansen

do the then, to And need little different then, certainly But a we where us gives it surveys the at bit training if And that. into something trainings are try we after or great satisfaction. do look the we to complete. insight amend

again has that the out soon is feedback far as real so as time. been very We complete. training It's sent positive. And that

Danielle Antalffy

you Thank safe. Stay Got so it. much.

Brian Hansen

you. of care Take

Operator

Thank you.

Jayson next from of comes Our James. Raymond Bedford question

is line open. Your

Matt Wizman

is my this Jason taking for on Matt Thanks for Hey, Bedford. Wizman questions.

inning this base stage? again, we're successfully of What you that have So, that in on telemedicine guess you think Mine is endo do to I don't percent number at is you think moved what different telemedicine. a if conversion? your said do has And way

sense? then, that, then be most near those more of a endocrinology are positive impacts on kind negative by being XXX% you of in think telemedicine should XQ, general expect if in we to the And with with or And of this of would becomes of sort onboard Thanks. end to aspect about any fully telemedicine? there and that kind permanent

Brian Hansen

that how Yes. emergency check visits. end, know. as on I haven't. to half of the most our that, visits there, kind to. out patients and I spoken physicians many with to have more they would have probably think lean they're your don't many really front seeing Tough those back telehealth only have reps more and any seeing numbers most haven't seen they're are And question I have how delaying or for reported because towards the I now because quarterly published or right are in critical doing we

diabetic. needs still perspective. face-to-face be a But a one that our things there they lot from are to of type for do virtual can There

going north be XX% comfortable we I I continues continue don't believe go And it its forward. of some with to folks going week-to-week mix but more know grow to now. think I there's of certainly that, XXX% and that right more So as it's it. to get and

that suggests are nature call Physicians was embracing we this things of was on how were and the very initiative were the center helping as That again was practices last best now the certainly feedback around sharing with before pandemic is said, this And the the and it. on started other week whole each call across John right there. world. front and but really and working telemedicine on An positive now. globe,

it So it. embracing they're that well very represented and group certainly

We will have as to well.

We and we're forward. it are today refine to going going

offering I we're patients. all our it's normal our of but honest in So day-to-day if to learning only the this like with what our be and even have feel something of not that's hopefully and prepared is we're like service but But our you normal part it physicians seen on needs any back does not rate activities high and occurs statistics to to really better again the adoption far so growing.

Matt Wizman

there so impact was the right, about the into All second deductibles XQ. have going I Control-IQ with my as of launch, concern guess, opposed in January the great, resetting I think, the to in some would one that launch

looking on through So impact had at least launch learning think any guess this back you Do other would that Control-IQ It dynamic in seasonality are mid-March. I be any launch helpful. the the regard? at and there

Susan Morrison

in that traditional QX where just product traditional product of we I seasonality. say moving I we've lower I launch seen if Yes. way, our impact a would normal Doesn't would don't purchases. was guess launch or we if anything only and a matter was see

you when happens And the seasonality across quarters talk weeks well. the in it we in within for about us terms and think as the it quarters year about months of the

scaling would But so nothing I So, we were moving -- along on normal up IQ. into patterns the I would say was with lowest March. of January being because control there say, different

Matt Wizman

All right, taking Thanks great, for my questions.

Susan Morrison

you. thank Great,

John Sheridan

Okay.

that think I it. does

everybody. thanks So

I a recently. Before wrap-up share of that feedback heard wanted I piece customer to I

this loved diagnosed. And of to said COVID-XX And diabetes ones pandemic, on focus diagnosed unless we've were care have and very they their were more control of who reach managing to had their had been of because customers During have themselves who for that. that IQ. attention they who their family us and thankful able taking were out personally members

everything. soon. like I are us health employees', everyone of care participate weeks I'd Thanks in that we're planning joining safe want why Stay hosted conferences to Bank we and hope pump, here a well. upcoming for is the that's use America number and And all particularly to our Craig-Hallum just to our of Securities, staying UBS, here. talk James. Raymond virtual providers say thanks to will In we people And their today. thank Berenberg, who for I you by safe. and

Operator

this Ladies today's you concludes gentlemen, for call. and Thank conference participating.

You may disconnect. now

Tandem Diabetes Care (TNDM) 1 May 202020 Q1 Earnings call transcript