TNDM - Earnings call transcript Q2 2020 | Tandem Diabetes Care, Inc.

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Operator

Ladies and gentlemen, thank you for standing by and welcome to Tandem's Second 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 may be recorded. [Operator Instructions] I would now like to hand the conference over to your host, EVP and Chief Administrative Officer, Susan Morrison. ahead. go please Madam,

Susan Morrison

report time results and Today's to statements. only discussion different in expressed in of expectations our today's product A reflect other materially Form you, most update projected on report to or operating our factors obligation actual performance XXXX are and plans XX-Q and result These of second implied earnings future highlighted management's Form development events, could these issued assume release in future forward-looking call. will by risk about statements. our date. speak new earlier and welcome, today of thank whether recent a financial Tandem's annual and everyone, quarter be and statements any lines Great, risks publicly could We from filings. other factors those as that press cause factors. on include anticipated under information, XX-K, uncertainties or as is from results quarterly elsewhere forward-looking and actual SEC no those any statements, forward-looking of list that cause statements to There and in to events differ materially the or our forward-looking portion

discussion strategic and non-GAAP will today’s President us today's and to information. of Vosseller, Vice plans and operating Sheridan, Financial CEO; press include issued financial addition, evaluate Officer President Leigh a allocation release operating earlier today the Please will John be EBITDA, measure for a for call. further refer capital. adjusted our make by used on to Executive participating Chief In generate measure. and references is which is to key Adjusted EBITDA decisions performance, future

now asking open Following I'll up for to queue. the Thanks John. remarks, getting our we'll call for questions With to before back limiting that, the turn over yourself the X into questions. prepared call

John Sheridan

welcome afternoon Susan, to everyone good today's and and call. Thanks,

our say XXXX, challenging in business of excelled continue the environment, the community customers first the accomplished. the am even is have world broader our and very at issues the so and a of to of in team operational able are to to like the at to this times, half our after be global succeed diabetes Incredibly back continued Looking forefront business. minds. commercial, during also of and impacting frontline support all healthcare to result I continue disruption, its these has proud looking without to to our all with to all suppliers our extend lives us that living and the work for a is thanks as diabetes. special strategic hard we commitment I'd the providers their to workers, like through to everyone. who supporting us improving It I'd focus dedication steadfast you employees people the and and of challenging their performance. our to the that in thank thanks only addition of

wealth technologies new that moment data McGroddy-Goetz I'd artificial to Howell. Kathy an microelectronics pioneering experience advanced extensive and software, to welcome two has Peyton members, span analytics, a take our to intelligence across Kathleen Next, home like extra commercializing board from through extend and broad and care a pharmacy with and in life an emphasis science hospital, of disease is states, a applications. including on a reimbursement range brings Peyton healthcare broad settings. across expert healthcare diabetes knowledge of

management. insulin of app, completed will Peyton as Their our with to of welcome our popular with to extremely above real our compelling are agreement long-term acquisition presented debt on the execute successful perspectives be an of early cross down The work talented also we indication adopters therapy a FDA board. fortunate very our addition lead finalized our with of clearance, Kathy and We individuals to strategy valuable our our two agreement technology, to were completion and a a for we pumps of two Control-IQ Control-IQ offering strengthened balance last recent many X of million XX an meaningful announcements. our call, these convertible Since the $XXX Abbott announced sheet license CGM to from to nearly clinical age age Medtronic. earned and world age lowering of Sugarmate technology integrate with their outcomes further

of awareness second to when pump, insulin we to long demonstrating the sales also even anticipated XX technology of XX clinical the t:slim our our share to the quarter, if platform entered better achieved enough, for the our list As of was guidance also were are continued Healthcare products the able better we original by we decision than their growing while, pivotal even are by we feedback use reinstating Domestically, that's beginning set Control-IQ This network. in is for which to COVID-XX. results XXXX. with record study. high our challenges of the in expected at than Based furthered outstanding. demand sales our in All include not this real continues the the highly we Tandem’s on Bluetooth t:slim world accomplishes the easy United worldwide enabled be quarter that

just CGM. integrated who once than XX%, from a provides information, Similarly, that XQ data than it injections Of more play. customer are than CGM that percent new Basal-IQ t:connect our us years comes Dexcom XX just XX% into insight insulin indicates or Our the customers, and t:slim half is more either delivery CGM are opportunities overall approximately that control, which highlights greater where belief from This domestic the automated the pump has person at for use U.S. to therapy these daily CGM in installed the XX% using supports more data multiple than their meaningfully higher and And increased using our overall is therapy great our use often glucose adopting base. looking two domestic in customers the also Control-IQ. today. ago, indicates XX% of our has customers

months of which continuing also less half there likely multiple second for throughout of This the report meaningful about are was the our during as the was pump therapy pump assumption time we adopting people adopt to be new was customers see that natural may quarter, the pandemic. to for a injection. therapy first consistent daily Importantly,

pump help people goal to with the of people market other with X making are XX% evident is to note metric that past, with the been broader our than also strategic the that pump progress to our It new population. dependent to are diabetes market The needs today benefits It's a that by of there X to type address not customers. continuing diabetes in insulin primary more type but insulin we type focus XX%. people points technology our up of of we in more are X bring expanding unmet just of our therapy being XX% have over how largely from this unsupported evaluating can make the

from receiving Another nearly on were high training quarter trainings all extremely we remarks performed customer and that from interesting observation the customers new are is virtually of our pump the experience.

confidence majority office, And continues. Today, of to have some customer seeing and opted scores people we limited have live the a of forward percentage many patients for their small commercial the estimate of virtually. activities while fact, In vast wait that in have accounts although moved training, our access increased. are satisfaction for

Control-IQ of their live and sales to will COVID-XX, are this participate expecting along United based Healthcare We initial on placements there many growth the using much throughout continue the is limit these also received with the will be towards pump Internationally, But Healthcare through with our during choice therapy new the this diabetes it to they expectations. and of that to with celebrated as we Access year. an members. to insulin quarter people in States. be weather the look interest the is work access our our anticipate decision geography members. of level their discretion greater visits. sales in we possible. Even their We the living not of direction outside United interactions improved provides forward people the XX entire systems pump remote as many would assumed that to seasonality, educators diabetes Healthcare’s management. with and of reps hospital benefits and strong as Our step overall pump as United outcomes recent is we t:slim expanded bringing care challenges that exceeded are by community some driven diabetes one United in with

commenced available have in However, the experience challenging this more our is to launch we XXXX languages, Control-IQ early for in our rolling t:slim feedback of from remainder which half it second at is t:slim excited I'm internationally we and international with even of the XX The our users positive same in share and that also broadly the demonstrated year. use their and now easy been to the distributor environment. that feedback restocking Control-IQ goal. international of throughout t:slim XX continue available out orders of now plan Africa to and pump on was receiving is South the the the XX system. end software continued XX we've UK our there their demand technology,

worldwide feel functions which continue any increased to our job do at and service. very our Similarly, are pressure immediate to on extremely potentially continue who As to return emphasis corporate at Employees, perform the have their and we not you both efforts to risk. well, so level. and are progressing to high operational innovation able office remotely do them put can our our commercial to product see, customer and a them we perform attribute functions

the products Overall, safety quarter. are border impact. operate growth. of in to insulin of to was of we mobile and bolus continuing are Scalability have to review third the we bring advance are the does Our us, in U.S. delivery onsite development. happy Mexico. for delay that manufacturer continues system. through months, preparing be very future launch a and to edition three towards to excelled app the of the new and including production particularly with there teams These underway the our party products mobile future warehouse In market delivery impact next the further cartridge precautions continue as our a the across clearance heightened a on now, for R&D our features just work t:connect from manufacturing challenges considering And in and which focus t:sport the the COVID-XX app, in employees of COVID-XX face place XX goals when new in be to circumstances an feature preparing the as we while is over focused just our no

for XX,XXX approximately our metered more few approach we a have As moving to a which forward, the Even downloaded the the took release without launch broad weeks. feedback devices. the confident mobile iOS has is promotion, why in the been user on health and are ability digital future experience foundation app strategy since of its our serve people past Most its app app importantly, Android t:connect both to center reminder, its over as for is we a excellent the and offerings. of

submission efficiency in delivery their The his and feature for FDA of used visits so a now, for as XXX(k) insulin to We our HCP an will the prioritized both analyze from using testing high display There the fourth USB upload resources to having trending in the sites the resource benefits up from plan in of to providing we key and will to the quarter. FDA and burdensome demand. see for will major customers and being country. a users information data. promotion office the be platforms. the data, streamlining customers deliver take a to one launch complete already is various factors through at several our available of across that This such is mobile not telehealth has upload compile next upload of app we improves are device ability its wireless are a app an be providers through the started t:connect. and will care the which commercially tracking wireless in cable data and and feature Then delivers aware takes healthcare Human and away providers COVID-XX. step important ramping a healthcare bolus and to pump by consumer The that's secondary a weeks

business customers step for difficult timing is in bolus towards preparing quarter we major of the our plan is as to prefer half whether choice but a meaningful using our a is Remote now is platforms depending which algorithm. is fully I'm pump insulin our program hardware on are offers through on prefer next they or the automated to launch touchscreen the expands to the a the therapy happy delivery insulin mobile it pump, a factors management app operation to human they t:sport launch will our for capability to size next the on feature So their meaningful pump control, first about of of that family pump. and for controlled and that's XXXX. the t:sport we a predict, the share full mobile clearance generation T:sport platform, to the Both underway. offer offerings app. testing latest

As a strategy. will regulatory have t:sport reminder, a two-part

the t:sport app. by filing dedicated full mobile COVID-XX fourth first controller. now a hardware pump quarter The be filing a the due This pump both And to planned the separate for expected for utilizing our through is to and t:sport include will followed control delays. pump it's the

gather is manufacturing While processes. filing real the experience user and a expanded to scale our second world plan with pump we review, under

helps However, the clearance after difficult broad Rounding activities we quarter preparing availability, key multiple use complimentary insulin a estimate the our the step innovative consumer time strategy, commercial features do the to half acquisition not of commercial Apple Sugarmate, we'll using CarPlay, Watch, integrates therapy Sugarmate, management. more summer which our insulin for people to FDA and out also are more Sugarmate app devices a commence visualize supporting with as the ways, but to with of We health ultimate this digital the and in of that it's also today. in t:connect. of an pump is Alexa light XX,XXX XXXX, popular which launch. in clearance data than and in our predict therapy with such

therapy the step this features deliver well pump users, So that small Tandem our digital of our to Also development continue diabetes. the It's management. a our and Control-IQ of with support but we broader for of a our future expect advance platforms technology. new as insulin development in company acquisition and help us features health strategy in on first important of to it people to to we internal reinforce to community efforts lead an strategy, enhancements as

We are a personalization are schedule systems usability. new yet the that but centered algorithm for clinical they broadly further overall reasons, with to providing and greater outcomes, features competitive around of intended aren't improve enhancements refinement

our of are half in planning We updates XXXX. the first second the Control-IQ of

happy integration to establish more develop development efforts kicking to customers now product and activity business exciting delivery Another were off we'll the able to people integrated look living automation, and system from which our an benefits finalize agreement this commercial using with to with quarter, technology. Abbott’s Abbott timelines. diabetes. commercialize we to the their The are We development bringing integration insulin be forward and of teams

improve which reflection amount the are drive we the very our are individually each of it's we at and Collectively, turn see, strength I'd our of can results you work. quarter to busy guidance. to further well diabetes. over level lives and As organization to the a accomplishments the growth represents our tremendous in the like living of this discussion and our mission high the for And now of to as as cross-functional of of longer-term call with of quarter the people functioning near the further financial business Leigh

Leigh Vosseller

ever quarter the second that highest of the afternoon, deal good a and John, you, with It remarkable We sales entered in impact. uncertainty achieved pandemic our we pandemic. COVID-XX regarding of face great everyone. is the Thank the quarter

quarter less anticipated. our support we continue to distributors impact suppliers negative on volumes, you Thank pronounced experience work who was did the originally and tirelessly employees, pump than to to pressure far While our again second we year, growth record last customers. Worldwide sales which XX% had tough a were representing over million $XXX in be the a dynamics XXXX. to international already anticipated comparison our to in due

strong million has base pump XX,XXX worldwide in reached were first this Our Overall, XXXX half customers or worldwide XXX,XXX quarter. $XXX our shipped of a with year-over-year. installed sales nearly growth the XX% worldwide

use the our in OUS domestic pumps our the this grew to attribute U.S., understand important Starting and part year-over-year to a to offer to the of technology growth meaningful the trends international XX% our as business, of of XX,XXX. As the successful We to and the it's to environment. more updates well appeal and U.S. continue markets. pump with as software in clinical improved our Control-IQ shipments building operations easy different our become awareness the offers remote ability customer operating benefits with pivot to the telehealth a it

customers. continue growth sales in steady And the compared our our XXXX. versus were to which the U.S., happy and This base more growth X,XXX more from Our pumps XXXX. of sales increase last in second first now second we than million which were the approximately achieved quarter million reflects year-to-day progress total, On to results of are supply basis, million customers the XX% in supplies. sales half install year. retention in initiatives. In XXX,XXX to domestic domestic last a warranty on This shipped has million renewal than second $XX XX% to customers. with $XXX our comparable Outside to $XX approximately reached quarter, quarter we renewing are year, our in directly included of $XXX for renewal is in sales not we entire we make or shipments domestic

fulfillment Animas the from in the second constraint quarter the well international of reminder, Tandem, to component converting supplier As last sales of our a major benefited million as earlier. a $X a backlog XXXX, influx of significantly patients from as months

expectations at is the quarter. pumps, meaningfully down one dynamics, the course last from time the those to beginning due more of our approximately shipped which we of quarter, X,XXX year, shipped This but than X,XXX

XX,XXX million growing post-launch. two contribution $XX in our U.S. sales a million prior XX% in U.S., represents base which a in supply we million than just we growth international in the to base. XXXX, year-to-date years. under for quarter years versus international international more sales. the size that from of the were installed By largely second outside our $XX now did On have result, achieved approximately install three due $XX As reach the year, in an of the not We customers comparison, basis,

our confident balance set worldwide important is of the that the our to including a continue from look worldwide. beginning of sales pandemic. positive in feel the we the anticipate unpredictable is to forward, positive strong, experiencing, of year tailwinds scaling Control-IQ headwinds the continued on Included at are are original $XXX in recovery and year. that far, the XXXX. are million we rollout continued factors million. reinstating pressure we the note not nature in we guidance COVID-XX from to to $XXX returning of we As assumptions confidence It XXXX give factors and pandemic do said, That the feedback being remainder of it's full so us the These and several

including on reflects from on to anticipate to across seen This At and of uptick existing to Our the and quarters $XX fourth are a approximately the historically XX% expectation year, members overall domestic it that U.S., will will a Control-IQ XX% million seems that demonstrated significant where pressure and particularly have the have time, benefits our in along the benefit $XXX to business. pandemic our we sales million achieving million. a year. the XXXX environment the in sales. sales benefit Healthcare $XXX the to third markets. from U.S., COVID-XX our remain network fourth as Outside in pump full access seasonal sequential typically but assuming $XX from the pressure in remote provider. new we drive success and operating represented million In the this anticipated United relating continued seasonality Tandem guidance with approximately We an of quarter United shipments Healthcare,

remainder of distributors Aside year. the quarter for from European from likely Control-IQ the our third the that, the we variability the of in consider holidays, scaling patterns ordering of and launch typical

comp. decline margin with for expense XXXX, As majority year. gross to is performance a XXXX. no X% XX% of on will software free the and quarter, of Control-IQ in Royalty the new of sold decline well percent eventually of recognize of royalty was every Control-IQ a the sales. non-cash that comparable percent stock-based sales. which was from number the fluctuate P&L, depending second the sales We of our expense the for associated the installed Royalty XX% nearly In was the element in to expense royalty rest new our may expense royalty in pump in as near across there is The gross but software updates period, with as given any a as compared in the was free of in margin prior as for updates expense quarter. term,

in demand. of year to also to an the to in compensation benefit of of sales managing months, XXXX. this X% stock-based the reduced builds we quarter impact incremental manufacturing The XXXX of second our quarter. manufacturing while the pump we non-cash in second manufacturing Additionally, from had QX margin last sales increased pandemic. increased in X% our pump the cost have in quarter recent during Fluctuating inventory backlog volumes resulted sales and from sales contrast, gross the appropriate saw the meet on fulfillment In levels volumes in

manufacturing our which overhead pump to the XX% per more quarter, first were increased in the down in than prior will unit into compared result, continue As of cost and a the second third volumes XXXX year, quarter. half the

decisions range. that in pressure selling Overall, to slightly resulted during average business to margin XXXX manufacturing pump in certain our both carrying number in costs ensure and be support capacity, from mix quarter essential customers, of mid also higher a of on gross prices, low for anticipate against health levels for we product and will manufacturing that included made the cartridge such slight our increased offerings. and larger COVID, XX% supplies digital spending increased product benefit to from disruption, as direct an gross employees. order this margin we continuity impacts Other labor As de-risk our

of feel least execute improvement We and our margin achieving continue at on confident in goal gross margin long-term initiatives XX%. our to

in compensation in the of Due Our strength quarter a margin of COVID-XX, we adjusted the margin, and profitability reporting quarter quarterly sales focused in EBITDA of conscious X% positive the XXXX. stock-based adjusted are investments, of balance second initiative. impact made decision to Prior continuing excludes non-cash of XXXX driving to trend our our even which to since the onset was the the continuing fourth EBITDA sheet, fund the that investments pressures. face long-term on were committed our these in to COVID-XX we

As We a mid $XX result, $XX our operating XXXX, million quarter stock low million second quarter EBITDA including expenses grew operating of second objectives the expenses non-cash anticipate in plan. to million $XX adjusted of By spending achieving to the on the stock our of million as prudent a to $XX comp. continue comparison, sales margins of the focus XXXX, of percent in including meet we and in teens our as strategic were XXXX, comp. to in

from year-to-date remain from million from of and Our debt million second increase that end at $XXX the $XX stock investments XXXX. return in $XXX profitability deliver and to includes committed initiatives end of $XXX the sales million of million, completed to in generated In range the $XXX proceeds This up May transaction key beyond we net sales are as investing anticipate XXXX, includes to to well expected summary, warrant as employee total both quarter we and the exercises. in the plans which range million. cash convertible in in international We at the sales worldwide XXXX. $XXX to were million of $XX that be million to million, $XX XXXX

XX% the low margins sales. to percent in turn that, margins low for that be the mid the to to as As operator will XXXX a result, it anticipate we over be a EBITDA I and in range questions. of adjusted in mid will gross teens will With

Operator

[Operator Thank you. Instructions]

Susan Morrison

are a as While to to XX-Q we as online. the short be questions wanted system in soon EDGAR and I there filed it to expect mention delay back being the due is Thanks. compiled, filing issues, comes our that

Operator

Thank you.

comes question first Street Brooks the Our from of Lake Capital. O'Neil line of

open. is line Your

Brooks O'Neil

terrific performance positive here all. the afternoon, a Good well. outlook as Congratulations on and

work. nice So

John Sheridan

Brooks. Thanks,

Leigh Vosseller

Thanks, Brooks.

Brooks O'Neil

there And carefully So in a I feel what most you've changes and specifically I been us I for you lot what time you're could. seeing was recent as been out in recently? hear about seeing give trends just period. what say as a have July Could you listening didn't the the little

Leigh Vosseller

Brooks. question. Thanks for Sure. the

we we So first I starting talk were little on more little we further us started stabilization. a really to was would that part quarter to the in of as to softness just our in the bit year. back what were a bit and earnings what the about in May, for bit through we guess to of we number to why we refer to guidance a happened little give of well, when go I'll what April, confidence second were as quarter, see just gave see led happens And call the guidance second the quarter a saw a annual is the what reinstating which for our at I the quarter, middle-to-late but end

not rather strong past. in as saw but we've seen the strengths, seasonal as so the normal than uptick, some we And

excited members, seeing we're we As – could to that opportunity about to from the of we're go year, numbers into now go for on cautious in still momentum as we we very very now moved the because seeing based the in July, the United after again. have were network And that there Healthcare strength we're the the the that that we and on quarter us. impact go COVID-XX rest confident but Control-IQ, put the second in we're the we've given forward,

John Sheridan

helping job, operating environment, our outstanding sales a I'd doing an team in and very been also the telehealth team field. that we've and in are out Brooks, us successful say that's training really

Brooks O'Neil

telehealth any in and you would follow but through up, fourth? continuing would problems So a quarter second more you environment you question, say going a don't third really my just anticipate of the as not quick the but say into

John Sheridan

up getting I timeframe, late. started to providers been we that. that's the our I timeframe. mean, feels and well, think think team shut be think see March, May I going forward. but even But as doing been efficiently something in very used right to has June comfortable that telehealth think in to operating down they're late while now is some the – offices world, going and was and of the been I for now. very opening important prepared of telehealth a there are that And and I that of we've up healthcare I it's It's that opening it there think May, it this doing late We've in team more April entirely is and the as the

don't I So us. an that's to impact going have on think

Brooks O'Neil

Great.

was, So you're changing Basal-IQ to beginning us us and could given a the enormous tell marketing a to dynamics my going had opportunity second success sense any that’s really I and right just term? excited – talk switch the primarily their you is about the how Abbott bit you're over Control-IQ how now, with more internationally, be and international? you've that about but I'm in about when tell little changes question might seen near internationally

John Sheridan

Okay.

now also and South of positive we launch now just seeing we see the in in same to And are of feedback We're the States. So have kind excitement roughly as most Control-IQ countries And XX countries, introducing indicated, we And using Basal-IQ. we Basal-IQ in success, Africa. the there's same the point, actively began and began kind second of XXXX. in OUS. that now half of the UK those at that we

end that's Control-IQ and have the a we between now rest than of geographies. we to of geographies year by plan so the expected, the launch for And and the earlier

think I a visits that's think OUS competitive. U.S. in of it's by hospital believe of so is So it. And way are demand because OUS here We same think that, we're OUS very dynamics confident we second the excited we're that this OUS, that with patterns, users. is introduction. great seeing and the less in this the Control-IQ we're current excited the of some about uncertainty there's the that materialize I It's might countered We the we're that. about most think half. exist basically unpredictability tailwind the the the ordering And very but I settings, that that will see going certain that. States, to say of competitive pump actually predominantly because in how is Control-IQ that kind has for I there patient been in in and headwind

Brooks O'Neil

great. much Thank so That's taking my for questions. Yes. you

John Sheridan

Thanks. Sure.

Operator

Thank you.

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

Your question, please.

Travis Steed

Hi, congratulations quarter. great on a

full the So year guide...

John Sheridan

Thanks, Travis.

Travis Steed

to the Yes, But plan, kind now you're below you're that you if just plan, ahead before. of it that now year you're same curious fill of have halfway through the original or year, tracking full that guide the if UNH void. and now the was as

of kind where Just [indiscernible] you stand? here, curious,

Leigh Vosseller

I to We're We're guess say fortunate Sure. able much I reinstate guidance. dynamics original it's when our be than of, thinking now would we had. set to guidance, original but with different the we

we don't and I beginning areas about the of that philosophy with control. in think year, guess start everyone we're the as And are elements cautious at I remind we more So our where have we factor should control. just to is our much guidance within that

on in a well we had an too, there we showed year, building those from grow seen just some trends. what very At or as would numbers year, focused of heading. more we we market quickly compared escalation which confident be to inflection some launched how perspective, are an revenues had we beginning about how it. weren't the last So controlling And because to we were much began we until very that the the renewal NDI feel were see believe cautious where as while could

halfway So We're different head. that from pressure. the seeing And its great COVID through now. momentum are It's here applying Control-IQ. we flipped very on is and everything's year

And also anticipate So we're year. have didn't which before. the United, we of we into now back the that factoring half

in dynamics, So going with year we're still great with be fortunately to a coming but much different growth very last year. over strong a

Travis Steed

Okay. And about new at look you QX, XXX patients it's like trend. the in if X,XXX U.S. to below it only looks in the

versus and trends, So, or delayed, state the those many and if the be UNH of that have you out how from through, come Control-IQ. second bolus the be think come very steady could for, that, patients that'll a trying in of I delaying second and from taking from negative you in there in think you patients just sense with the also thanks patients impact kind any more think don't out if line who half, to the could if for half just questions. benefit to know COVID trying tease

Leigh Vosseller

versus would It's as quarter. driving us in from was about anticipated. Travis. come cautious were to where being to how we COVID turn we originally And much Thanks, had greater exactly we how quarter, Sure. QX pressure QX attribute that hard I in more strength force you can we to say say second much Control-IQ. the But What offset from out. really giving is when recall, didn't Control-IQ entered the that

I so at that going wasn't because before can excitement who there's it access great able now actually that be pump switch our Healthcare, been people or the to there And to start what are say our first for and to to to now, to least, when before, there technology. anxious right time is comes weren't pump United to

that So we Health be Care, we to we expect business. it as United communicated mid-single-digit lift about expect, we've the a think to

another so, about back half. excited are for element we again, very And the that

Operator

Thank you.

Next question comes Nowak of the Alex of Guggenheim. from line

open. is line Your

Alex Nowak

everyone. Great. afternoon, Good

reentry to getting explain First that Obviously marketing that can network what how to win. get to Healthcare, United waiting you are switch towards pump big population going take Tandem? targeted this to the announcement language sort switch those can you affect Medtronic, come competitor, into some a a to congrats of just on have preferential appears is United back with with the to that to and actions in Health

John Sheridan

a work marketing We them about that aren't position as we basically they sort say that I with exactly talk practices and do the of to closely really that in we were UNH asked. to has. would careful just

organization able that Medtronic think, think to deal have there's the something to are word no advantage benefit, really don't in manage, we may and offs us any I now there's things with I right out, is we're the that dealing how It's knows we're prior here. against situation that mentioned have the discuss They with it. that think that today. I routinely. from that competitive what against

this. So provide the like And from to pump our to the we're human, the benefits it. excited diabetes therapy population. the benefit happy about think community UNH will control, UNC we're – of We

Alex Nowak

they Okay, pump out change put understood. XXXG, in week-to-week any And basis, good do June almost in did their some see then just talk data since you maybe on really visibility order next-gen on data about, you can have a you Medtronic, staying into on the patterns with on on you And endos product data? then to all started of thoughts Medtronic Control-IQ? after have to and blogs the their talked just speak compared this announcement about orders the

John Sheridan

you effect. I point seen any time. saw Medtronic competitive predominantly of conversions, our this mean, would and I that at say as sales half haven't just new it's were in that, we

really, say, would as a nothing result happened, So I really that. of

they I think that, the was presented data. data good that

it that really all that with, was than the think the however, is I We know dealing better issues that the they're sensor. XXXG.

continue under struggle. And get they're going to think Dexcom they they in sensor the I until the think so I with line the to Abbott, performance control, of sensor have and

see and good when very about wait here. feel we the have think I happens market So we'll to what gets and it to against XXXG competing Control-IQ

Alex Nowak

Congrats. understood. Okay,

John Sheridan

you. Thank

Operator

you. Thank

of Our SVB next line the Antalffy Danielle of Leerink. comes from question

Your line open. is

Danielle Antalffy

really afternoon, a questions so guys. on much. you Thank Thanks strong for congrats quarter. the and Good

to switch Medtronic. Just in follow-up on a question

here in new John, were the that switches. That's question, last of XX% your mentioned, starts competitive You consistent.

And that the the do you pump products? as to your shifting at launch evolve and competitors market is past sustainable I you think How forward? do see think that years. continues all few new with going

John Sheridan

maintain have social And you drive think I use best we've position. when product think improved the mean, listen got we the to can therapeutic today. of I innovate that to continue media, combination two outcomes as I as the as are of that And clearly the market you well on I adoption. see I the think – you things ease talking think to people to

we so on continue intend And that. focus to to

with mobile also product capability. T:sport excited algorithm. in talking about We another very here And bolus future. to are our add to is the the improvements mobile the competitive about app we're going

you the today. market of lined I at that think we when And got up. So us deal innovation competitively, the think great a we've on have product look best I

remain in to continue position this our about So we market. confident

Danielle Antalffy

Yes.

you it does stay way great. Okay, phenomenal here. in than much and is think strengthened a whole perspective. you guys have much. team up doing that my of And been feel competitive there like you to a there. it so then And far of from that here credit of sort to telehealth seems more has following and the of been your such I like how a Thanks abilities component mean job, dynamic, you from competitive sort competition so it Because has perspective, you a be ahead telehealth your actually accelerated position? guys your from could for telehealth. Do a a

John Sheridan

think was we've that the I services think interaction great Sure. talked were quite interaction and virtual just Again, happened, anticipate COVID-XX. digital our I our We a the their And burden has a daily we to environment team in virtual while. use operate practices. organization. data we that soon to important say towards ability is would ready. And in part But efficient. training about it experience it. tailwind as for a I physicians make develop been this to definitely working new to with this as didn't our as control responded on going be with virtual reduce health. like They well really to our physician's deal sales are products, that pump to And pivot their products going and more we increasingly the an and have extremely

Danielle Antalffy

Thank you.

John Sheridan

Danielle. talking to Nice you. Thank

Operator

you. Thank

Mathew Stifel. Our next the of from comes Blackman question

please. Your question,

Mathew Blackman

everyone. Good afternoon,

of join on the me remarkable quarter. congratulations chorus a Let truly

installed that roughly follow-up think a on XX% patients. on intensive John to type Just base in now two a wanted is largely couple current I highlighted Earlier to start, Maybe the some and some week, follow-up script. partner of CGM two their CGM of type I your of questions. your of comments and this

goes many one is as you type constructs runway. patient to with two, in that CGM think question pump cohort? this different about you the similar think So penetration, penetration Do type how go or penetration so would we'll on and how

John Sheridan

our using you the most pumps the people about right it's at of now just indicated I as higher. CGM. recent XX% use second the And look quarter, remarks, quarter, in the if appreciably So,

think were pump who I the come approximately that fact important was other MDI we the believe statistic, I therapy for that So, that into people CGM. people that think half use of also the

So people start the then therapy automated improving when insulin one, control. with their just they of CGM benefits type and using I glycemic comes it think pump systems and to see delivery

therapy, we're to pump natural it's are So to on benefits that today And just come seeing that benefits think the seeing. in a for they're move again, marketplace the I the remarkable.

type clearly that think I it's in. we're something two under markets the penetrated, interested that,

evaluating and are exploring We it.

They type adopters. presented think now type market patients the on was we data two The using early saw data great. Control-IQ, on – significant I two right improvement.

marketplace. intend more provides So collect two it’s is strong to the that encouraging. offering We pump data. We a that's discretion type to clinical that believe t:sport appealing

unsuccessfully, we're the sales So these we how we touch have a type insulin-intensive that's of drive help that commercial might do we to have what space, type two what do of the move And evaluating to of things right points. that, channels, make expect all two into now adoption look a that like, to we do sure and because which with to decide evaluating we're going patients. move well want out tried number thought strategy exactly we been the it plans. companies as there this into

Mathew Blackman

appreciate The was pretty question. John. Medtronic unique. licensing And announcement color cross my follow-up the then I patent

think is years? expect there litigious market should over XX do the read that should over we pump think there And that the anything we backdrop? competition into comes you a more the several months as landscape think, I more maybe about competitive we as next next

John Sheridan

don't and the – of the that is this is now develop can that, want distraction about innovate have not organizations. the and to litigations diabetes the your on we think products impact have has two community. litigations worry can going I just I now and the We to for the background. companies in good mean, on

think this clearly And its us. I so is good for

I I thing I this, think we entire the the I last agreement the Tandem's innovate stands that that And than we do our very can to diabetes out demonstrated think years. community. good I that portfolio IP suggests really we is to continue the strong. fact that And think the think this like competitors think one I that. for I that said, over that is was faster seven would have say think ability

Mathew Blackman

appreciate it. Thank congrats I And again. you.

John Sheridan

you. Thank

Leigh Vosseller

Thanks, Matt.

Operator

Thank you.

next comes of Our Blicker Cowen. question from Ryan

questions, Your please.

Ryan Blicker

there my earlier thanks about taking talked of bit Was first question. any little you're the I'm Hi, ordering little patterns geographies? international. a bit a guess of meaningful the guidance international half? bunch for just geographies. despite some you in really from guidance, wondering, Can your Control-IQ higher new on on follow-up I Maybe geographies, unpredictability, the wondering, meaningful about in you you launching a stocking why unpredictability just Can year. just – you're new I'm launching is talk for distributors. for a again, in distributors the

Leigh Vosseller

Sure.

on ordering impact mentioned, So is international there lot by a those the it's patterns in markets. the and variability of compounded on COVID-XX John basis, an and as

out summer we that when we And turbulence time patterns so business And or also be bit about out which back last season year, forward we're typically rolled We'll a the cautious to factor, which aside half is of is from one saw [indiscernible] Basal-IQ COVID, in well. we the Europe, Control-IQ. as there. disruption holiday year, look the of ordering happens that in little rolling at the which as

start at our new on in pumps reimbursement of to we about and impacts One excited of the which about placing end truly June. we Germany order approval needed market that about piece thoughtful very was opportunity. marketing perspective, being patients, one that just we're the in particular last still received we're thing So those. From of

expect full of we marketing here year. a the So the half push back in starting

what another and So international and that's still market. there we're very future about off. we're that that about just seeing by still being excited said, I though, and we're thoughtful Like the takes element how encouraged the hearing

Ryan Blicker

whenever this might about think infrastructure talk on hopefully OpEx get we your sustained helpful. will degree over trend Got then you it. you And virtual be do for that this mean time? pandemic? training, some so, Very could if a to is And through what that

John Sheridan

training and elements the itself, the you I'll talk Leigh, about financial about it. that think of can talk just I

think I that to stick going it's around.

carefully be patients think do like it. like it more it. that customer really physical track it. stress. But of in and things exams like just and afterwards. any mentioned that They confident, we're increase visit. our and service Because the sure significant the occurs are seeing script, require of do seeing make customer it. like very think that visits more we It's People as might It some good and And as statistics convenient, something that there's in well people I service a actually and more like they We not reduction really not physicians sort from and I people we're response this. that. every more

to think I here definitely stay. So it's

providing I to all more And some think toward the time it along reduce move makes clearly we efficient cost are going it's the that. it. of who here go that things less the potentially as do trading with travel and people there's because

anything stay. So want add I think that. Leigh, And you it's here to to to

Leigh Vosseller

prove COVID the are And they It successful. were will were actually about and that. we just trainings a impact very before of I the as sold, so goods be came piloting just training add a costs component brief gross opportunity margin. can gross of virtual cost something helped in margin that this that

benefit So yes, see in to we expect the future. do

Ryan Blicker

one I more. If could speak Excellent.

expect continue will to you on you're years initiatives. lot pipeline Thank you. the you differentiate one to ease exciting launch still two of use. making be of And lot able new to in you a next outcomes then to Can longer continue believe a about that over talked able term, Do a on XXXX? you of differentiate well? to moves algorithm You to to confirm as

John Sheridan

Yes, algorithm next the we do plan year. update to in half second to of Control-IQ an launch

We on personalization we focused improving use. at. going competitive reasons. haven't outcomes, be that the fact we're that That's But on have to where and for therapeutic features our really of said are what the about spoken heads ease

Operator

you. Thank

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

line is Your open.

Matthew O'Brien

Thanks All questions. the right, thanks taking for afternoon.

the it of was plan. What you did here cost revenue the into kind that? a broke rolled get in your How out, especially had for second Just COVID Did that guys patients, reaction from in out spending guidance I new impactful starters, QX? reinstating of for patients And you the year? does flexible then know, quarter? you when material any how rest factor

Leigh Vosseller

Sure.

think but So seen actually as at very it's very level. plans And which you're of patients. material our the an basis. had I in second referring quarter, we've may really we've payment on a for differential much impact low at what we utilized payment a usage, plans, been higher always no a option to we're mindful In their in see the rate, be didn't that it future, but used a

Matthew O'Brien

helpful. think then, with their I significant presence That's a obviously And the the bit Thank X.X, side. you. on the with space, in out opportunity little was given that label expecting, people than the different but Okay. some especially is were Abbott came AID

Abbott need with do or think that – kind CGM system is How you when relationship? we forward. expected integrate you really effectively So what like thinking Tandem Thank was with does label you. that the more you bit about to label a the X.X going do developing a of were about little

John Sheridan

technology. actually that Now, specific we we integrate were about the spoke model or going really with these never to

Abbott – working I now to on still that's just that's have that now. work So that's we say something that we're with begun would them. with right

to Abbott C. together put do experiencing has a of a they're issues come development together acid has and with details are that to plan preparing with said the and getting Our the and vitamin pipeline sorbic teams plan. forward

with are that our sensor. I that integration contributing issues our pump the nothing to think of do the to that with have

will down intend be will that system would move that expect. issues they'll to address be AID continue the And what used So which with in we imagine this allow path. an working parallel. ultimately system, to I in Abbott we do AID to to would Well, an that that is –

it's point in So at time. good this all

We them. continue have work to very we're address with they they're just to talked Abbott, to And confident going closely this. can

Matthew O'Brien

Good job. helpful. really That's Okay.

product X.X components. is point, Just be at plus those be t:slim though, Libre the there plan that two this will clear with a to is

John Sheridan

haven't that. said We

Matthew O'Brien

Thank you. Okay.

John Sheridan

Yep.

Operator

you. Thank

of James. Our Jason next go the of line Please question Raymond ahead. comes from Bedford

Matt Wizman

Thanks taking for Matt Jason Hi. questions This is on for the Bedford. here. Wizman

MDIs So question CGME. is of new on my coming the the from percentage

user them, And of XX% on those think are is executing Thanks. I from of about purposeful And an to converting are threw So them to a of on pumps? MDI? you you users Are coming One seeing that users CGM. Dexcom are MDI. Dexcom seeing kind Tandem rate out of acceleration you right? those target the is strategy

John Sheridan

to from of Tandem. right. You're people are when using We XX% coming who come MDI said that the are CGM they

So correct if of look think statistic. that it’s XX%. as the And over last at said, adoption it XX%. base that years I two of years, – the you of the now, installed was that's the is, couple average about of the entire And sort our CGM I ago,

saw data, at just a So it's increase. that. higher in this quarter's meaningful And look two even than you years we if the

order coming CGM. people what's to Control-IQ. So, you is clearly, or need systems that happening to for either In Tandem. They're I work think Basal-IQ are using those

they're in with results as algorithms the – use systems. uptake believe they And the they these and do think they're what's so, that's I use people achieving CGM driving the are and as of satisfied the happy – they

Matt Wizman

Okay, thank you.

So up a some dynamics. the follow ADA next, on just I guess, of

world endos real impact then along or maybe peds with improved – that data an the the strong. very Thanks. maybe you interest that and or guys from has presented all Has So that demand at that data? was had

John Sheridan

definitely – hurt. Yes, say that I it it's can't would

data as power system what's extraordinary world of are that and endocrinologists presented. actually that having and with happening the more Control-IQ. experiences They're we real think today seeing I the more the

Control-IQ more. that I familiar as prescribe more I more in of We technology a became effect. it to they of as helped really So, had as today. you announced a think I being and introduction Control-IQ. about an positive people clearly through think to just this. I And think that think has And with us it results saw the as the I've the with they’re headwinds have COVID-XX, result inflection began And but we it's we've talked get saw point definitely and Basal-IQ use having with

drive and going to the forward continue think we to we're So it, about foreseeable future. for going demand it's very excited

Matt Wizman

Appreciate the questions.

John Sheridan

Yup.

Operator

you. Thank

comes Our from next Wuensch Joanne Citi. of question

Your line is open.

Matt Henriksson

of This Matt's the process. Q&A the Hi. for Henriksson going Joanne. keep streak Matt in in Yes. is I'll

kind the the with start been radar during of pediatric Let's call. label. this That's under

tailwind be changed the expected of the open. have How aren't remainder has label, is how you to year? And to that the that the camps Now summer kind but those for of a reaching strategy with out kids?

John Sheridan

There conference [indiscernible]. It to few a children's that. visibility I I indication think we great And do of think a a ago. virtual the receiving just with popular still being diabetes. that of had conference. because intend Control-IQ we was a very was weeks for It's deal

a this marketing So are – group a very able market materials, so very we I think are the can And people benefits we our crowd. to let younger that to there. now know and this we saw positive that very, pop definitely the the response we adjusting actually technology of

endocrinologists of coming. aware it that think I were

the were prescribing some it think in of in prescribing situation comfortable they're that were now I past. a there although that And that it I think more endocrinologists off-label.

that of it's It bring excited to openly. So, technology the to I to again, thing. that this think positive us benefits market allows we're a population. And

Matt Henriksson

before to helpful. out reaching be clinical app, bolus mobile data would expanded or over And any approval provides feature label? Do next that any That's testing need on an weeks the the for about you through expect to the the then your there going talked factor before going human few FDA. FDA you

John Sheridan

with required said, the with real And is don't. we we right on are We've field been we're this now, human while produce. for I a factors as that No, the only working FDA information from we'd the the data we of but anticipated schedule we that FDA at the had this of year, When the the place at actively right put the testing summer. the end conducting beginning be originally now. the filing in

And so, quarter’s because COVID-XX. it's just a little of longer a than bit delay

to And do we're quarter. in planning this so, now fourth the

projects. the one indicated they're think we've COVID-XX I the that prioritizing FDA got is thing has cautious to about that's be that

there quarter a at and And process launch in approval of in first we're might we're so, the planning but feature than a this longer that be review there's if expecting potential a that normal, time. point

Matt Henriksson

Great. questions. Thanks taking the for

John Sheridan

Sure.

Operator

Thank you.

comes Pasquale question Guggenheim. next Our from Chris of

Your question please.

Chris Pasquale

of couple A Thanks. t:sport. questions, one on

clarify there. Just plan to wanted the

wait control the the would XXXX for estimate that approval? Was had you what I Or would be think And full summer launching I mobile that wasn't filing before for that still the submitted? Is you second before was clear that said just estimated plan? of that the commercially. timing was. then that the final when

John Sheridan

said, we had summer for We Good submitting I filing planned we – the on late summer – question. the the – first also. t:sport in as planned in

delay. And so similar we've seen a

So planning quarter. fourth we're the making in that on

the in device again expect at the the We and combined first will, that then quarter get time point the we app. to with mobile file approval in

and plans world almost small launch in time the That's for collect – launch real in numbers. we the ready we the actually to So that, the same once we're approval a just in with with standalone basically are. the a approval get market get At would refine device our manufacturing during as of device summertime. controller, again what But the evaluate in and shortly things we processes full that. launch soft we can And have get after do the the where small data, for result it the expect position our timeframe. summer a a

Chris Pasquale

of last commentary lower that there? shipped same then first the explain was Yes, manufacturing, headwind mentioned about just year, pumps through you just in you on as sense. a half for volumes happened Okay. the makes but what number walk gross the the as exactly Could And year It’s helpful. margin.

Leigh Vosseller

Last Sure. were patients shift a last going the to in on something international. were different pumps. couple related experiencing market, major Animas of we to the was year, particularly our It of things

the that first levels to add that demand we up the caught higher we quarter that backlog And situation, to in we backlog. XXXX. that so producing fulfill a had fourth which last year, fulfill and to were half in And at began of of manufacturing the

last sales producing So – that we the on the volumes levels side, we despite at were to demand. higher in were meet order year

Chris Pasquale

thanks. Okay,

Operator

you. Thank

Lichtman next Steven comes Our of question from Oppenheimer.

question please. Your

Steven Lichtman

guys. you. Thank Hi,

John Sheridan

Steven. Hi,

Steven Lichtman

opportunity, the bolstering Control-IQ quarter strong talk rate Can thoughts the your and is capture And better you're you making ahead? among what on first the capturing guess renewables. latest drivers how in the about progress I that was it? looking

Leigh Vosseller

Sure. that progress a added boring and surprise just not kind really continue it’s to that What's denominator. Steve, a to opportunities element We being continued going make steady is strong, have we on Renewals, story. there. really of so

we're grand more who's And to have this now, in back and right so, this already X,XXX of the expired XX,XXX year. about at we're people year, least in total, warranties have adding that half

expiring near-term. in are pumps continue the progress as well very to So as people two years we freshly warranties people, who who make one, are – purchased renewing whose ago, on here

Steven Lichtman

Thanks, can bit that digital it mobile was Sugarmate to talk Leigh. specifically integrate strategy to apps adds and to And you with more and I you then if a expect about wondering your respect into and how capabilities little how do your your your efforts?

John Sheridan

connects some innovative to Well, Apple of a connects Sure. where bring And as all, of connects different CarPlay, unique presenting They Sugarmate an connectivity the ways of first of very to to to Alexa, family it part we're also lot data. It of Tandem. there's watch. have areas. excited aspects a

expertise that that so, to will feature is brings follow allow have going certain a essentially us forward. today. available that utilize And DNA to that They there's also Tandem Sugarmate a that in

customer system forward will our and continue So to developing that the we’re working are that place And Sugarmate service and health platform. sorts Sugarmate that on quality and products digital with it into to plans integrating the members. work our the things. to going I to excellent that Tandem going today that gradually to from those bring its think and support organization XX,XXX bring with begin to really provide then service in that ideas to organization going stabilize has And bring services of Tandem we're a

it very see a complementary So, exercise. as we

I going them digital of we're as our to a part initiatives and team. excited to lot health to add our own that think have it's

Steven Lichtman

thanks lot. Great, a

John Sheridan

welcome. You're

Operator

you. Thank

ahead. go Please UBS. of Taylor Matt from comes question next Our

Matt Taylor

the Hi, question. thanks for taking

the mean, just different competitors momentum you're so largely there you outside talked Just it about that I you, dynamics dynamics, some U.S.? ask is So two one a a I and U.S. put of quick [indiscernible] seeing. Or different ones. any or curious I favor versus what same? in disadvantage the was was, the few you

John Sheridan

essentially Medtronic. it in dynamic this is I and year. the I Control-IQ those tube Medtronic back is what's market mean, would OUS to that's we in And I half the Tandem, going going versus think bring And in here we to it's just happen to start comparable of I here against happen States. tubeless. the to countries. it's when It's compete say Insulet, what to competitive and think that

very So, I well. think, to to our we're excited that we're opportunities about about. there. We're continue I going excited And out do think

Matt Taylor

another wanted follow renewal just changes get or have rates, seen up, just a you to any notable update then And Great. in attrition there. quick

Leigh Vosseller

when really say, at accelerate a we have seen steady would continued have purchasing put level forward. to seeing I second a purchasing still patterns. renewal, strong orders in customers We same place, nutrition people's but into were From not go the order change on QX the did we're quarter, of people any perspective, that pace. some in continue stay first home in haven't the growth We

So pressures significant than environment adapting no of COVID and to the we've pivoting note. as we items this telehealth and other of discussed some been

Matt Taylor

and congrats. much Thanks Great.

Leigh Vosseller

you. Thank

John Sheridan

Thanks, Matt.

Operator

you. Thank

ahead. next Johnson comes go Our Please from Baird. Jeff of question

Unidentified Analyst

other generally broadly pricing? On on Hi, any preferred Health had how the United this you Thank think pricing there requirements COVID about And more speaking, pricing Health pricing to is similar [indiscernible] given payers? and and impact channel? through has payer pricing change out you. Jeff. are Or to any on shake for the does Medtronic United

Leigh Vosseller

a question. any on impacts we comment by payer particular seen to the or pricing And you for Thanks from really suggested haven't don't pricing COVID and basis. payer as we

to relying a I Today, XX:XX is goal to gain our move and though shift. business, to that's say about operations continue of less our our we to I XX% model, would guess some to move care of initiatives One direct distributors. of from move in still the our direct our that on major to have is business efficiencies long-term managed more

Unidentified Analyst

pharmacy DME members bit particular ever to there you. the of any if payer Control-IQ front, a Thank Howell’s and to be time? Great. just the from speak of the possibility on addition a Is little getting would update the over on new last you experience Ms. in PBMs. And there can question, including board my requests

John Sheridan

great wanted say interested that It's an experience a Well, deal our and I have we to of Peyton in both just are clearly to has team. in. really reimbursement. area join excited that we're Kathy Peyton

pharmacy to organization just I hospital just her settings. think and comes care we – to looked the to provide guidance to it home in when

very So, we have to Kathy definitely we're think more well. background. excited And she's going on team to of got the do as Kathy also that. technical a has

digital be I pivot, going little want said, to you us Leigh, bit this think talk I've towards as to initiative. about working we a she's pharmacies? the as with health do

Leigh Vosseller

right strategy our just start laying now. out I'll by care Sure. managed

First to our can is that and as the go that in and continue product, erosion. about it for more the nature. potential get then the I understanding And business bolster as or a specialty and mentioned that we is visibility, the payers more price some a not makes which to forward direct what makes will pharmacy with continued potential of on then shift just foremost, business, relationships when contracts, us whether downsides evaluate you And for our that being sense sense in of and of lack of more pharmacy way.

today, and relationships really it's with into we're building on So consideration. foremost, payers. about first those are taking all focusing the But the factors that

Unidentified Analyst

you. Great, thank

Operator

you. Thank

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

line Your is open.

Ravi Misra

to the forward? driving about question. compared the And time was a to of last the home rate could expired is in I mean, on was you – models would people what stronger than it me so – it that Control-IQ, like sitting it at Hi, any appreciate bit was the up there thinking step looks Leigh, it help with over what going John, would to was be to thoughts the we in. we have run right more new, cycle. should last pump, that, is then speak, now renewal an think kind thinking that expected quarters. I turn maybe about little It a of few the

Leigh Vosseller

lot that we're in seeing think From what is making team. continued a just we're renewal of the a perspective, outcome of I investment the

So with the to retention of initiatives, touch over our don't we and the patient when sight the lose or renewals we them first that refer lose course it as making the sure buys four years. pump

to the be products, So what's if they're like with familiar They’re when they're does a part the warranty will. of Tandem familiar next. expire, coming their you family, with

And for and investment what reflect we've seeing is making the renewals opportunities we're grow. to that that think, so, starting the that I been continue us are to

that. helps certainly Control-IQ So

Ravi Misra

need you'll on for? around that affect Thank something that might as as we purchase as one And Just product maybe the you’ve election, to thoughts be Okay. as – then be curious thoughts, think Should to made on your your some – these a head longer-term drug in we suite a layered Sugarmate at you'll the the means purchased able how strategy that's very to maybe charge side. you pricing going price you the premium pricing into pump you to much. long-term? Or into point. and about defend

John Sheridan

Ravi. Sure,

I Control-IQ a this for reimbursement has pricing real savings. show their and compelling to side, our have technology them to a And made position back think in users, algorithms. and argue puts going us additional free payer be in Basal-IQ go the them we we made to us but that that the show that there's them – believe of benefits the provided for organizations on – and argument the the to makes terms and world to data strong that clearly cost

think that pumps. additional I say benefits to the at. burden – monetize have expecting that will of health as that data, the use using healthcare reduce services initially comes looking these the the it not believe to to products we one bring, it want of initiatives, and providers people the informations technology we're as will space, moving when thing well we're that the because So to the the effects the that that's would into the this that data really digital that provides. I We and increase stickiness definitely to this people technology that

as over opportunities think a to think – create that's the against but I time, opportunity price basically provides So erosion going us it necessarily I to not the something preventative increase to price. – it

Ravi Misra

good Thanks. a Have one.

John Sheridan

you. Thank

Operator

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

now may disconnect. You

Tandem Diabetes Care (TNDM) 31 Jul 202020 Q2 Earnings call transcript