TNDM - Earnings call transcript Q3 2024 | Tandem Diabetes Care, Inc.

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Operator

Good day and thank you for standing by. Welcome to the Tandem Diabetes Care Q3 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Susan Morrison, Executive Vice President and Chief Administrative Officer.

Susan Morrison

Hello, everyone, and thanks for joining Tandem's Third Quarter 2024 Earnings Call. Today's discussion will include forward-looking statements. date. expectations and events, plans, financial only of management's development product and reflect as lines, time performance today's statements about our future pipeline, speak These and operating cause There actual those are or our in statements. projected uncertainties risks that anticipated results differ materially and to from forward-looking could and A issued highlighted implied report the to of by most under Form materially list these could earlier in from XX-Q. and different forward-looking our most as on results factors quarterly actual that is recent our on updated any release press those today of statements portion report in Factors cause be expressed XX-K, Risk our Form or by elsewhere annual recent result will of factors. Today's financial information, or obligation other include and of events, also new assume forward-looking update We no a to future discussion to publicly non-GAAP GAAP as a references measures. number any statements, whether information of reflects Non-GAAP our give financial believe investors business performance and we are operating indicative provided measures our core that is operations. ongoing to our We non-GAAP periods. results operating better across facilitate believe comparisons financial reporting these of measures a non-GAAP as not GAAP. presented independently or prepared should accordance be considered to with information in superior, Any results substitution, Vice Tandem's our to and of directly Investor earlier on issued Please Center and financial President Leigh earnings measure. Participating Financial a President GAAP Executive these comparable Chief are: for today available Sheridan, portion CEO; call and our refer measures John release to most Officer. of website reconciliation the their today's Vosseller, on and

turn to back into to you question getting Following open queue. I'll the limiting in now their up Thank for advance call remark, for the X John. prepared questions. yourself will over the before call the operator

John Sheridan

our welcome everyone call dynamic been XXXX Thank a today. you, Susan, has to and year.

is the by Driving through pleased and very be milestone and to as innovation with positive result our Tandem our flow also a returned growth to I'm company. an a drive cash strategy feedback Mobi. Tandem company's marked leverage to highest free our to of we our This history. margins focus achievement quarter. for outstanding important delivered performance portfolio is expanding for quarter business our launched sales underscored execution continue strong newly greater our in operational third in third of our quarterly on we gross the as The improve using product in

to addition quarter pump performance, In new return marked growth year-over-year States. sales and in United the record strong this operational to also a

evidence QX in new U.S. our our over QX. we more We notably, furthering seen new is the MDI users of the quarters, points daily multiple have in our to over and insulin adopted injections. from half customer that Most data past for observed Tandem are favorable continued The than pump to a growth market. were customers pump half shipments X customers, goal expand we which pump

converters a observed to again once years disposable of also We past. pump compared rate higher

in shift more will we increase continue MDI coming therapy. as attracts pump anticipate Our customers that portfolio to insulin from is people an our important

one-size-fits-all Mobi solution These therapy see to and the our strategic no that there results for customer t:slim position underscore continue in in create Tandem also platforms and both preferences serve. XX We quarter. demand is a both enthusiasm underpenetrated market insulin in that the technology there and that in we and the a indicates is market. needs further segmented also for diabetes large It management, highly

with convenience to technology. Control-IQ hear and our the on continue to XX, disconnect, t:slim customer for pump, its offered controls we freedom being enthusiasm For the all-in-one best-in-class

exposure a and Mobi our the building to attributes, high insulin scores tiny category its are are t:slim. community has as is Mobi, is increasing platform. new and Control-IQ market to combination demographic compared of attracting wearability. satisfaction driving Tandem technology, redefining with versatility pumps, are in unparalleled For diabetes a our and Tandem size new pioneering These awareness younger

It's Union insulin. XXXX. Outside Ultra-rapid-acting we with support for as strategy lives our diabetes again once in in broader we European States, and improve X XXXX European a and new with a of even in efforts for is a U.S. focus was commercial regulatory with and recent orders. in our insulin the Tandem, first type United the the associated select United typical time, response building global season XQ the this we outcomes beyond. With outside we outside of high of in step customer holiday t:slim improved will customers call reflection like outside The with win and is a and to of beginning United with people demonstrated are performance I'm our which diabetes had the for due this with living provide opportunity timing demand, to U.S. award offset proud retention. seasonality turn distributor pump the a look The over certain people awareness access countries technology, of of was that, greater popular than with A experience to us see customer placements to growth is offering. greater anticipated our than the Control-IQ. clinical living strategic also clearance the scaling for the in of along we XX use States the Leigh. I'd enhanced rate its to our to in States, ultra-rapid-acting our of this the Lyumjev Turning the the choice by tenders, the

Leigh Vosseller

Thanks, John.

financial of As from are Reconciliations be our our expectations targets for out we on of today's line a top plans. non-GAAP sales, website. At results Center laid for Investor the growth expansion in profitability, which and product a unless many the discussing is can reminder, basis. release, be will available on found the to today beginning of non-GAAP the GAAP noted, we metrics year, otherwise earnings portion

XX,XXX today's performance States, third I'm in sales achieved particularly our United our in we reached can as on progress our seasonality proud the OUS marked see with As with million both our demonstrated fronts, we the the of which worldwide new sales highest all pumps. of that you growth in is and we total markets. Starting return company's business. to meaningful in nearly demonstrating record history notable are quarter sales results, QX a in starts, shipments and customer U.S. $XXX

the Our delivered and mix in pumps year-over-year than with we more our a by X sales. increase growth, to where been Sequentially, growth contributing a in flat business XX% $XXX favorable of U.S. XX% period represented pumps sales in driven years. have modest down million saw shipment X% of a last seasonal our sales

by mix, insurance XX% payers and of in sales Sales to sales see directly customer to continue ASP direct and benefiting U.S. billed XX% strength increased from year to ago. business margins. increases, We both price driven more shift to a favorable a the

to pumps our be price supplies relationships share Our payer improvements of benefits technology components continue in care years we market were our and many achieved access strategy. following of our distribution broad contracting to and multichannel that direct as managed efforts. key dedicated and for the Pricing brings

business achieved In payer the Tandem sharing first for and step channel. our addition company this our progress profitable it's strategy the on we've is reduce confirm to pharmacy that I'm be for contract any to our that and within drive this in We details first we've made arrangement. model. share we won't happy but not an multiyear the new focused now disruptive patient current through pull-through for agreement strategy of I milestones are channel, our DME at access to Mobi the also time, This the out-of-pocket costs. signed important can to

We contracting have a additional of number as well. underway conversations

strategy. on as will our continue pharmacy from We to access potential color to we more provide execute future benefit

switch late to previously As quarter, Choice began discussed, XX in program. under we choice Mobi Tandem our t:slim offering the the eligible to second customers

election to we a and As to any GAAP only, availability the portion financials shipments and the The the of quarter, in fully Mobi. with in difference QX. a cease reminder, deferring and first of cost switch between sold sales and associated quarters, recognize goods In individual financials we deferrals In second pump any do basis, program from GAAP and not sales not fourth additional non-GAAP sales of upon the impact will any our On the program. the we quarter. non-GAAP on third $XX remaining a million the GAAP basis costs. meaningful include plus were with Mobi's capture switch each sales

on program, in to refer please accounting XX-Q. policy For the GAAP further our discussion this the accounting for details

our strong our OUS XX,XXX to Turning The results million third we to continued the quarter benefited anticipated $XX in in pumps which demand. sales ship also in by outside nearly performance, of in approximately $X we focused the margin reflecting we business our that originally million, increase quarter. pleased a represents which XX third in grew in XX% We XX% year-over-year the on line operate the fourth markets were once demonstrating received orders I'm U.S., Overall, with the which and pump are of was year-over-year. increasingly more XX% was are that profitability expectations. quarter, growth the in profile our than again, in shipment company. Gross

the related the expect business our margin ease across XXXX to year. and Mobi will We launch gross that to XXXX pump as the XXXX, accretive to be scales exiting in pressure begin the

adjusted of greater in provide the to XXXX. From Mobi our at benefit quarter. of supply, EBITDA to improved in As also third the portion our beginning anticipated installed an users corner we profitability a we anticipate gross late X% become in base, perspective, turn sales margin

sales. margins, as the applies and our in operating As a business reminder, seasonality gross as to well

million and million are to growth. to range down U.S. positive XXXX remains strong which QX through to year. We to U.S., free is million. and remainder of flow we $XX generation breaks sales at the $XXX Our million $XXX in of return million to total million, Today, a to of to cash the increasing $XXX XX% balance cash trend annual sales $XXX once million with again and expectations expect XX% the This a $XXX $XXX $XXX our growth. we year-over-year marks guidance investments the XX% to continue outside that of began million,

plan take reaffirming with about year XXXX to adjusted of we to XX% few breakeven. I our for new drivers are multiple like quarter comments how our our also guidance margin across for We dynamic XXXX and like to would expectation outlook, to be we to think Much at provide on call. staged year. full this opportunity fourth growth a the year which highly XXXX, another provide earnings EBITDA the gross expect

strategy based new through drive the put in how growth to in wins and will our any the of streams approach our while continue U.S., recurring opportunities markets. more benefits. assess guidance we we the in pharmacy and expectations align in introduce market sales the anticipate on the where Mobi access with will We we revenue tender predictable used Then, growth we renewals, on revenue emphasis factoring the and before start. XXXX, initial set on supply products trended from through We new worldwide, channel OUS awareness XXXX U.S. execute in market to

of a it As be mentioned to our continues margin efforts scale. Also, to impact will This the profits and highlight down both deductible-driven growth the to seasonality from in balanced diligent to generally earlier, leverage our meaningful I fourth expansion in Mobi to U.S. operations. I on drive will supplies. sales also want a results as first contributing in the and quarter quarter. key demonstrate business with the both be to factor investments step pumps for

last years, in the first the sales the fourth to four For compared on quarter over in average U.S. declined quarter. XX% example,

to by we XXXX. sales, next details you, that now more look call. And seasonality We operating I'll and turn affected providing margin be back our with anticipate across to and John. build our will forward at the will As call growth

John Sheridan

Leigh. Thanks,

innovation. in progress future a deliver In portfolio. operational continuing is designed our to exciting product the and growth industry to addition in and we roadmap most to expanding cadence drive is steady our Tandem's by our commercial differentiating are of execution,

initiatives U.S. span we include focus longer-term Our near- in and to a on the we the currently serve development efforts the bringing countries and technology meaningful offer internationally.

Mobi this XXXX, with by in our demonstrated with throughout followed U.S., have its GX the beginning sensor. integration of launch We the

Mobi. as Next, on a continue outside Canada, throughout Libre the launched Source Abbott's platforms we be we States, key Tandem XXXX integrate X we on a and XXXX. Global and beginning t:slim theme will in FreeStyle both country-by-country deployment United through basis

efforts with serve we Android the to to also We offer Mobi markets bring it underway control to have and OUS.

worn new as have in a that providing notably we Additionally, without options features tubeless allows even in unique cartridge to patch be wearability. an active the infusion Mobi greater most a development, option pump set,

This by is us set the are and not end be shared detachable technology, provide in pumps to lines efforts initiatives Steadiset, activities internally previously, remain for a underway pumps. Clinical new rechargeable, on them includes or pivotal priority supplies ergonomic, or we've wear to bring infusion but patch trial year. The we remain commercialization. also our development, high extended at to for to development going of As for time track done Sigi for Tandem. the

currently by indication submission, the X-day a we strategy is Steadiset and Our it's intend mitigation regulatory This FDA in is filing although support commercialize set now. a first for a process. not X-day risk to to regulatory in infusion set, our review our do

third the expand in our pivotal trial living X Control-IQ. highlight clinical diabetes was quarter with completion Another the for type for the indication to people of

market opportunity living with technology with diabetes. it's of type of insulin-dependent than X bring X a to us and penetration, the With benefits people type priority even the a greater living our strategic for the to people fraction

off-label. care prescribe our providers X today health Some to type pumps to Control-IQ their patients choose and

basis, a type the new each use As people a a a result, If Tandem which X% X to has more quarterly of type XX% than on in look U.S. trend quarter the been years. with pump. consistent have throughout customers we X, XX,XXX it approximately at living

market been of identify a the we marked for how living increasing it's working best company, near-term in serve before, this pumpers population. research-driven with as ever diabetes. a to are see people management than X to therapy our as through of fascinating strategy technology solution As More people and insulin-dependent interest type part

are With year. of complete, clinical finalizing FDA the regulatory the the it we trial to and the before submission will end submit now the

also studies program. feasibility series We support completed of a our to closed-loop fully clinical

closed-loop the this intend from been efforts. and see these in the keep see it technology fully the the dream Conference approaching It's study is confidence You'll end the at upcoming increases the we that recent early ATTD-ASIA technology, my insights Tandem progress to at reality, of this at presented and most amazing of month. forefront of to

to see, a Tandem. and be can for continues you exciting As busy it time

is Our Thank work. employees' you, hard focus throughout everyone, our on for execution your impressive. business

commitments. I'd focused we closing to the like over for XXXX, achieve year up questions. positioned the operator the record-breaking on and deliver our fourth now wrap a are continuing to we to turn well strong, As to are quarter, on call

Operator

[Operator Instructions] Stifel. Blackman with Our Mathew first question from comes

Mathew Blackman

Can you hear me okay?

John Sheridan

Yes, Matt.

Mathew Blackman

hoping could versus third a I quarter. you little give starts John. on Leigh, was quarter, color the patient perhaps more us the Good, new second in bit

I then did month-over-month give but XQ hear if you're us you just And any shift what willing new say you quarter-over-quarter, grew last the Mobi curious, pump exiting you recall think Mobi saw told XQ. that to color us that about or I'm I I through quarter patients? growth. on cadence

Leigh Vosseller

Thanks, Matt.

to conversions. the broke in down we've it's third a which celebration So start a because in in quarter first, seen quarter growth MDI in the it the is some shipments It's row way second us our quarter, we've for new was the first quite seen a year-over-year, growth where return time.

is we than a MDI. down, And pump saw, more were the more than break so, were little a new that, what half still then pumpers, new shipments. it if of half of And pumpers you little

second dynamics, QX quarter. to modestly. QX, up So in the of what our seasonal with saw much only shipments actually pretty Pump stepped the consistent line because in very expectations with we and from

intact So with before. much seen we stayed everything had what pretty

Operator

Lichtman next Co. question Our with from comes Oppenheimer Steve &

Steven Lichtman

progressing giving in great are you're see I it's specific us in Leigh, update can about you of that give details that thinking the the of the announcement. strategy, to sort your appreciate about context pharmacy quarters? any one, of how contract broader pharmacy an but coming talk to you not that

Leigh Vosseller

Sure.

of year. our were a everyone excited that We've this by it's point said, on this the them. celebration would as of it about so So And goals and we for We about able the have strategy. to another very possibility with end of executing quarter. long we that contract we're announce talked be achieving to

And What the is so, important first -- next we do important an have for step. to really to focus very contract. on it's pull-through this

benefit, we it's as volume trends potential we XXXX look what And as those into color more well of economic give we'll and positioning, time. and so, ahead in to we both move as at And XXXX. that could evaluate like then look terms

Operator

O'Neil comes Capital question Street Brooks Lake from next with Markets. Our

Brooks O'Neil

the follow-up on Steve's to Congratulations wanted I pharmacy question. on contract.

pharmacy going their be can understanding give and question. us on us Can durable equivalent who any prices relate So you basis competitor help your substantial my a understand, premium to the you others. the pumps product to here's a business, your at pricing the uses to how to channel is for My time not but your you're pricing competitor in disruptive of said existing might channel? your feel your you pharmacy

Leigh Vosseller

and one we that, share today about only the say we're competitively. that honestly the can I contract even Brooks. is very contractually, past the would about But selective said contracts would willing we Thanks, Sure. little to what have be I things, in very as that, be have is And foremost, we lower in. to economically need and that And as at has into. it contracts least secondly, to good first we out-of-pocket. key DME enter able the patient of be the to the been

it can I forward with to excited it. and say move we so, our And were met criteria,

Operator

Our next comes Matt with question Barclays. Miksic from

Matthew Miksic

but that Mobi: your cartridge you timing yet give mentioned you're about to just know going you integrate be reason forward? Is set describing, option, that you Love were infusion than not tubeless comments are I any possibly set? technologies John. also traditional there a curious X-day on infusion the Steadiset. option the us on So any a can longer X Tubeless set, could those wear why And something color. tubeless going the

John Sheridan

Mobi: all, we've in looks of the first why very on. longer Tubeless excited consider and we reason develop great no certainly, Well, And sets, at wear making good there's in-house time. really to how this It's thing. product that. right now point about expertise progress we're Sure exciting got wouldn't

that in an there. point but got this at out option it's We haven't said time, anything we've specifically definitely

that. if development, people that we into as consider going know to we'll further let we're I think get

we going about study I to the a clinical point also clinical it's the quarter. We're to report, so we're activity, questions I with answer mentioned, as is file while all on clinical can that Steadiset. set, very which clear doing we the complete the is submitting while want just be this relatively excited FDA We strategy. straightforward to a risk think X-day mitigation we get now and going study we're preparing the why the of set X-day I as that. that the did the are that, when right And to wanted We

Operator

Wells next Our with Larry comes Biegelsen question from Fargo.

Larry Biegelsen

Congrats on comments. on follow-up wanted here. to Leigh, a your I XXXX nice quarter

in guidance. XX% you You started XXXX, the mentioned growth

XX% about in. what high message except trying to at you Consensus it I to U.S., why you're you're 'XX next enhanced I'm have 'XX? what X on were Now which bake would with the if XX%. say, Libre year Mobi, again, to clear I to versus going type think, seems doesn't -- guide this you're And, like going cetera, year a not in you of sure call. bar? is conservatively XX%. it indication integration, clear tenders And et is growth the guess, You was slow wasn't seem in XX%, full that comfortable but mentioned we're today, a

Leigh Vosseller

Thanks, Larry.

will for the time And we all, of a really exciting XXXX, to what product first out our we very very we There for how start So, wanted the business approach. this first it's curious. after with of so just thanks launches just had revenue we to when how streams. questions all guided number XXXX. this And different set think predictable in we with laying year, what the in what's to the this about I And lot similar about philosophy year. of to to philosophy versus many XXXX the even do, think, will At are aspiration at about And is be start. a growth XXXX, are talk of looking really people coming exciting start our things expectations drivers. we it X and the

then at sales growth both point. to number comes And The base that almost going almost we're opportunities. U.S. so, large Also, the XX%, opportunity is renewal this from opportunities, take in the focus expiring mostly the as growing install the warranties that supply XXX,XXX on our to the in of from customers growth and from we year start our see risks next well OUS meaningful markets. And of as comes

before we competitive as first about start then in to do that new something of out of tend so, we from and we some we how sustainable hard see growth perspective are the growth think them we these dynamics timing And and factor like what really trends the a drivers, would to drivers. it develop play then And factor see in. think to

just not about expectations. to about for business. it's aspirations It's the approach the So, so really our setting much

Operator

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

Matthew O'Brien

love hear the specifically. to guide We'd about QX

that's think evening. little causing I a this of bit consternation

the beat in to guide increased Your the the -- guide QX result, the see year we QX implies than or but for the QX. the guide is here -- full by good for less saw

as not worried the that So, is more same than think or upside to we or on QX, those get in much, cause gross the anything on side you're margin kind along that question competitively there by pretty just really expected. it lines we guess, would else meaningful, that of anything I about raise then didn't EBITDA, guess, to the about even you was guide? And the we saw I on line top but

up see move well? why we QX as didn't So, those in metrics

Leigh Vosseller

a Matt. loaded was That question, Great.

focus to going it. piece QX guidance of the on I'm So,

fact, we and and So, break I'll the both of those a amount did raise the by in little beat, in U.S. our apart guidance bit. OUS, the

just represented implied you in for year and business last XX% would the in year quarter, would fourth full And that quarter falls for will. look U.S. if the midpoint somewhere of the at from the years, the U.S., perspective, the just fourth fourth heading if the our you guidance of I under few into imply we're guidance the our below has the So, as say. percent what's you in the if look quarter, XX% that a seasonal of something

the have very a seen. To QX it that that's the quarter. but So, million the step orders in quarter, have like of with does come fact, down $X to represent feel implies from in we from we trends anticipating quarter, OUS it third to we that in we QX, happened which in, in about were did fourth much line originally seasonal markets, third historical the

that's a shift QX really QX. So, from to just timing

And Tandem and the with that so, expectations parts we think out put guidance there, a plays that exciting in out We have great be also for set. From have from margin the we there's to lower benefit confident we moving costs. always we materials a there. of pricing, an are year perspective, did it lot

which facing, We we Mobi we'll some begin to tend so though, I'll that this see to was benefit headwinds, are put headwinds bit XXXX. in exit those add then some as outperformance smaller markets, that modest will too. from just rather still in and margins, a continues dissipate, pressure the little to the year, being gross to as of volumes, of OUS on scale. And more that And expect start we does

So, the I think that question. points hits all your in

Operator

question Patrick Stanley. with from next Morgan Our Wood comes

Patrick Wood

just the originally of based guess, today? should had kind t:slim. volumes is think some X? about on guess, slightly of you around go? the are from holistically, versus that seen I Mobi commentary between What around you've where that customers mix, we I You that to expected split guys nice gave landing hearing you what And longer-term how mix

John Sheridan

are getting a really just that positive the that providers. pump we're care reception growth very performance haven't driving pleased living and we're seen think I while. health Yes, by people very Control-IQ and with performance diabetes Mobi's in The we excited size, wearability, from and with

X and a growth say we've at also now. I awareness. definitely are seen pumps, in MDI seen of still in you row early, it's building and would year-over-year in new we a that -- market and when look stage starts quarters we've So, improve increase

anything by ratio the specifically and we're the to excited going outperformance like And our well so, X think think I that very the in between continued to quarter, is what And being driven I growth but the performance, as them, achieving we're as of we're this really the look conversions about Mobi. going is MDI say not about absolutely objectives.

Operator

with Matt from Taylor Jefferies. comes question next Our

Matthew Taylor

hear you okay? Can me

John Sheridan

Yes, Matt.

Matthew Taylor

want or the I conversions, X to was you So, us pump could was I you is, wondering part. small of a give color rate follow-ups. notable, did high just any mentioned you that if One ask patch thought and on that if

John Sheridan

and Yes, step we this quarter, percentages just relatively low many quarter. And did trend we it's up the tracked in for third same and that quarter. continue I'll we say until in many, saw that years, been the up meaningful the see have second a second

we who former thing present well of patch Tandem was the And at users the were as tube interesting, the MDI, And and that from because it's improved appreciated Control-IQ former pump did from the so, it group users, was data that a from of other ADA the patch, early Mobi, as in users. control benefit former of their former people said, and users really they the got diabetes. they management came

the algorithm, to market I that patch an direction it. continue And so, the same the on that seen today, device improved the people be are about in considering essentially, as it. the and think that's that's is movement size, we've positive fact I think, -- excited pump And with

Operator

Roman Our Goldman next question comes Sachs. with from David

David Roman

quarter the longer-term in and mid-XXs context And aspirations. your contextualize I you've this gross performance the think just I to of of some EBITDA. talked bit wanted mid-XXs P&L adjusted little margins a about

go-forward that As this you revenue, how kind fair margins mid-single-digit billion a of at quarter, that Is And you're it? we of basis? kind think $X of a to margins. trajectory EBITDA of way annualizing on look kind about adjusted at the should about at think it implies a of

Leigh Vosseller

question, great David. Yes,

in launch. at now, I'm our margin gross of year the and the about this smaller call thinking opportunity up bit scaling and it long-term underway building volumes, a Mobi still our is to single It that, we're So, is largest a goals those of we're achievement volumes. contributor in with going its transition future. to Right year

a benefit we a year, the that to And And now, users perspective. From a Mobi across using you'll of a almost small a of level as to fraction we bit at percentage the in perspective, gross until level expect that right pump has of benefit get see where the people, exit worldwide, you been see of a won't a supplies start have side. we be this margin. very to XXX,XXX And so, we XXXX a on but that scale scale, headwind it's still pump from Mobi.

So, the cartridge to compared is bit benefit Mobi to should reiterated or a will take long-term XX% little will have supplies be I And And comes the that pump manufacturing about the stated XX%. probably to in about cost. in t:slim the XX% the see. that a lower longer the long-term from

of through matter margin. time a out the it's So, come you'll before see that start to

to from I'll piece our margin story market other access add initiative. the The comes

So, pharmacy drive which Like traction we step long-term that access, space. to particularly we in said there, drive margins well. and a first in the the continue can thinking that as very believe improve earlier, and about channel I important the that we've made we'll can

a year to up And need I of it's so, improvement demonstrate said, a to in the be order like Mobi scale that now, the it we bit getting to transition right margin just opportunity.

Operator

Our question from Nephron Chris with next comes Research. Pasquale

Christopher Pasquale

than came really more of pump we Supply so thinking, well were sales. ahead revenue in where

about? something that the in it the to else come order forward, there may helped contributed direct have supplies which that like U.S. down you mentioned strength pull dynamic to there? OUS, you talked You that Or sales was sounds that. Did

Leigh Vosseller

see the address in in QX. also, And In it. see already third to we wasn't U.S., some for have pricing. And bit impact. a the of the was a timing quarter. we to material favorable Sure. but to you It enough did sales it really did from which higher bump the did a QX part, level OUS of really It us shift U.S., piece quantify, was continue in

quarter. some third those U.S. the in between So, benefit drove pieces, the X in that

Operator

Josh with Jennings question TD next Cowen. comes from Our

Joshua Jennings

off the pick expansion? channel X Omnipod is, the even out front data, to of can Control-IQ question increase the for there front and real-world in you in that's piggybacking Congratulations data you can I up quarterly. on volumes third quarter. I of them some on seeing expect increase? X seeing gave wondering, you type strong quarter. those you're requests Do that of and label see I SECURE-TXD appreciate prescriptions the that you label ] John, details in guess, expansion? maybe was pre-auths what Are [ the

John Sheridan

call, on of use been who system of we've to Well, on X% said using steady the off-label. look a have a number starts people seen as we the X if couple And basis. years, a type our of XX,XXX it's by you last back with about pretty Control-IQ the quarterly diabetes. -- people, now of we it's Control-IQ about new XX% about are over And

it So anything that's marketing like and certainly not or been we're pretty steady, that.

Al expect I to research, ] won't the improvements type begin we've software So, it market is for research, actual we of now. news, would for this until though, to been to quite it bit and actively enable good time consistently X. The that market a [ turn been some up doing doing really Control-IQ we've

greater seen anticipated. as times, would what And because people going is that for likely we recent we a it's there I bumpers. near-term than characterize more in of penetration think rate that, is X we've be propensity originally that very we who higher of type that think to the

a couple this us. think we're is I from with for would data us get you to new now seeing, if think it's have to to from to And were XX%. over maybe today we great can ask XX%, we of ago, so, quarters which X% very And up said, likely get I X%

I the the that FDA We're on report Control-IQ the the schedule that, into we've were good We And do FDA. seen, they've midst is of get think it times finished the quarter. has seen study. X now. news in the clinical to other this preparing to

to we're quickly, through and market So pretty next we to expect this to get year. go excited

as think beyond. to So and going be we a of we growth into XXXX do get our part it's meaningful

Operator

with comes Singh question next RBC. from Our Shagun

Shagun Singh Chadha

I that case? then all think the could about see And sooner you you question were versus the later year? the mentioned, base to you can which a do XXXX. And reasonable just upside? on on as catalysts Larry's where to ones XX% wanted on Is impact anything share follow-up in start most

Leigh Vosseller

integrations They might to The benefit to part pumps of haven't buy in us a question help excited in before. quarter be the we of that haven't earnings earlier. say different all So us. to not would terms to number provide can I'm rank numbers The ways hard affordability been right to are reserve for which going to so expansion XXXX be about market I very we pharmacy specific We're call. able for going that now CGM able But any channel of giving opportunities not we help me I'm to that to our the any order first reach It's initiative fourth through opportunity. and people going today. with able We're just of speak clear. one pull for to there. laid the before. been guidance out

And ways starting on between as available can said business as on we'll there's that streams in renewals provide the to these all and we're ways supply the we own. focused when So evaluate predictable of sales and really to next lot earlier, how expectations, then to revenue in that become more the a baseline set I our opportunities they factor of are new exciting their what those continue us. we year. But with growth grow

John Sheridan

that, next have to things coming year. I'll just to we place very add of a important lot

products. We expect new

pharmacy. We expect

that's highly year But to saying, the and and great all type a produce going balance Leigh think But expect the X. do what's onward. We predictable. we and it's risks, the about us. very to These very we are grow company, as help to going XXXX philosophy, we excited guidance And initiatives. to be business think is grow on from the it's we're lot have very, exciting a going something for

Operator

Plovanic question Canaccord next Our from comes Genuity. William with

William Plovanic

just, XX% from on patient type the to of a starts and your point see then like, XX% clarification out by TXD That's Is or commentary to penetration. X% all starting the Just you market? And from now me. you awareness that, of just X label the there more have a that from IIT XX%. new are that of the thinking XX% in type general in Is X population? Saying competitor.

John Sheridan

say the roughly over It's X. I'm who penetration is, what years can X% reasonable talking it's million about type over roughly that I'm Today, would about assume people have to marketplace. talking the get insulin-intensive the XX%. several in I U.S. next that there's Bill, X overall in that they the Yes. penetrated. We think

both that to We're it's And say market. as because that label and fact awareness the others beneficial the I I are -- the out this a increase well that's wasn't clinical and we'll be So there's working building to is benefits also the have new what meant I technology market. there to the clear. And if that we new make working providers. health say, care

new say last pretty we the been So, the the to once directly, develop data, expect, and wouldn't just all years would I market has -- we to uptake as But dramatically. to mentioned, change seen begin that, clinical expect like we've about the it our development over of steady. market this, needed a we are to couple uptake. Prior definitely expect of I share that activities market see would benefits that that, it's of I've could talk products, to

Operator

comes Our from next Citi. question Wuensch with Joanne

Joanne Wuensch

of is, of therapy. me strikes core it the the if adoption States United One outside but is as not United that pump the as the the States, you're things just speaking sounds market, accelerating in

ago and now type that And look just were is is second all, just like of worried very things much mean, read? First and a that we about I reimbursement, right year the X diabetes general, feels how utilization of population the it new all, products? in good. quite patients, of

John Sheridan

would that there Yes. several say a product year introductions was year last bumpy because I occurred. were new Joanne, that

that ]. last Tandem that there's new year. happens, introduced all and think Beta, when products I [ Medtronic, pausing And

think year, an This in there's any on to seeing coming of forward. the addition that. effect we're And market it the so, overall not had type that, And X growth. indication that's I

be the how think do Certainly and has from We continue as doing, we'll new see a it's bring I market, end growth. growth. of I but assess difficult of the we heard happened won't typically and indications, we future. well since as in where think will is And the a So to we're the in year. year going what haven't they're until that as innovation that be year, we to the I growth to to drive year know, exactly this believe of that to new this get to see middle our continue competitors products

Operator

Redburn Issie with next Kirby Our from Atlantic. comes question

Issie Kirby

X to that more bit is little To a talk to of XX%. some patient wanted around side? type opportunity extent the the just awareness bottlenecks and around really on what I getting it the primary inertia what Or around really the it pumps? And do extent around channel feel onto like in really there's putting type care you is the particularly provider? to clinical addressing Xs,

John Sheridan

I think it's both.

soon. think help are type to pumps I of available understand to we And that, physician, of have make the certainly, broad sure prescribing have be the that We'll cross-section the clinical to it. get data clinical that's who you you when the X. presenting them benefit strong we'll think I in people

community about they're think user I can really I things in are cognitive is the the that's think ease comorbidities. the use. things these of well to clinical therapy. things the seeing provide systems So use, understand the themselves help are The to beginning who and improve direct. so longer-term is, they're physician. the directed other terms But -- these reduction as data the AID that at And people the definitely in really as many that X, reduction factors there's market, Those how the also thing much have type need advertise, of burden, we easier see exciting wearability, how things in what benefits. to But of easier lives

it's I that in So research. to believe encouraging the see pumpers in our market really near-term uptick

go us And so, as that's the very get for XXXX to encouraging we into indication.

Operator

question Danielle with comes from next UBS. Our Antalffy

Danielle Antalffy

Congrats on here. another quarter good

specifically continuing market the let's and above have where position you the grow full Tandem. If Tandem So, relative a to being ahead You Leigh, look launch? to U.S., the you Mobi in I'm you see want a where guidance see market talk is to to you question. But growing? to ask about is do around with where question a XXXX, to think not growth see we XXXX Tandem ask as a market maybe you And do you going I what year.

context growth? signed, contract that's a You now have maybe ton, going albeit put pharmacy sure I'm market least Or at a of to it contribute initially. not in

John Sheridan

and X, competitors other how quarters. enable this the the share were new to are to But in something indication grow bringing us well we're several going market help, type grow that when certainly back, absolutely last that about have are Yes, would with to as products at again, time I We if holding certainly to our have the access new doing. point And, say it's pharmacy. for knowing improved will the through difficult going we're step to for we to that's a and that's that, not market the as it. I own talk think market

tailwinds of, the deal been there So becoming a have number products, with opportunity that pharmacy, for sure and headwinds we the are I that indications. deal with there sort as as new have for we would we now have our of as things are say new

going we're So, dealing XX issues we're see last that over of for that. I the months. think with I that in the benefits And to XXXX, us been the have problematic think

Operator

Our question from next comes with Mike Partners. Kratky Leerink

Michael Kratky

open overall anything up very business you're quickly which can to initial that And that it's But the business will help expecting likely scale fraction Going migration, year? the degree how early too very, channel? back that to that contract expect you pharmacy to understand you represent I in to us appreciate to probably pharmacy a next do pharmacy forward? small your give of going specific. sense orders your is your

Leigh Vosseller

Yes, thanks for the Mike. question,

could But the to too even the relation soon would what is to that like for through about the contract, can have in open a one still come would of conversations opportunity. So, that that, to say, I highlight I we talk volume single number it's more door underway it.

multiyear also a we'll opportunity if mind that of that we be pharmacy what more could we continue in we move for this will been It's on size not But like as all and up to give it open keep So overnight. has be up XXXX, to you and us. that color to into strategy. as continue able looks we anticipate when

pharmacy just some solidify build we're and to really opportunities. of this work need contract strategy We with that other Mobi continue it's reminder, do payers Tandem a putting these we pull-through then And to into As on to this. the channel. need

the it it. Again, with I huge a it's So we've first a right celebrating are super excited track. And I earlier, think us. that been we're about we signal for on said step

John Sheridan

said, a we're And well. other as that Leigh that underscore aggressively opportunities of just on I working there would what number are

near more the future. not just see, one we many to this it's in So but expect

Operator

Our from Baird. comes Jeff with Johnson next question

Jeffrey Johnson

better that John, pharmacy from someday we and can maybe just to and type the pharmacy that use I are your penetration as X to X, and going together you I comments saying, really as and combined those for in of those Is risks those you're as a that to a so that. think through of XX,XXX, that X% not just put as your comes about ask one way scale market in question contract? comments there. XX%, in access But getting C-peptide for get coming having to C-peptide a How X.X kind take the lot probably of moving to situation? want necessary the going multiple starts not especially a Especially back a positive go to docs volumes X a XX,XXX it test pharmacy type in those is patients, XX,XXX, that that year but type points, inherently Medicare, still you on pump XX,XXX patients patients required know X in X. a is year, point test year, point up really XX,XXX, maybe type and

John Sheridan

you. with agree I would Yes,

X, is certainly pharmacy that progress something we're think I we're working important making and there. type on for

unnecessary. in when when been X rulings. difficult have We going and under the eliminate these we're are just and considered. that's place It's yet. support has where I to heard get recommendation, But need we've these companies that's review, the are And some to happen. there physicians made recommendation's they've a back type and haven't tests we're coalition to that. basically working anticipate we right arena, success here. with contracts that, into that'll happen But there on diabetes a pharmacy of And thing have we that, seen certainly anticipate other who CGM companies been The to to area has favorable that going you're been that is, hoping basically think to going

Operator

question Raymond James. Our next comes Bedford Jayson with from

Jayson Bedford

didn't and commentary you've renewal. given think few past, quite think Leigh, for renewals. framework catch around up full I Congrats I some the I progress. come us a the on users growth, on had the in you

more on So details can renewals in assume us sequentially? we can renewals give a quarter and the grew you that few

Leigh Vosseller

for question, Jayson. Thanks the

So we've renewals, of years, challenges described our highest be It's I the been we would where on just our ever. say, with experienced at renewals spot in renewing rates story, John the very few track. last in a some as to bright been even continue

continue do And our ability very the so, patients. convicted the to renew grow. in to We're opportunities

year-over-year quarter. a third was And the so, it in growth nice

Operator

Polark Our next with question comes from Wolfe Research. Michael

Michael Polark

What question, renewal OUS us about this but you a does that of have timing as remind remind us starts maybe Can look like? how it's numerically opportunity it next frame opportunity. the XXXX? And this you'd I year, too, to the mature?

Leigh Vosseller

some first launched in Yes, markets a were lot it. we of exit a our we And timing piece in start Yes, to as we of meaningful with question. sure. haven't Thanks opportunity until the the about stocking year. goes hasn't a for talked There's outside renewals reminder, to U.S. -- a element. been the just an U.S. we it outside this And that started It really XXXX.

early until so, on occur And say, 'XX. I 'XX, first would people pumps late didn't

XXXX. launched into, the we meant smaller didn't was The for first that until some markets. so, that markets year that of time And larger this happen our

year. those become we to opportunities exit So beginning just are as this

be So as renewals from where And more we'll from the in our with we're start distributors on our best the closely first learned XXXX year, long practices partnering is short, U.S. story and meaningful perspective. to see a here something to going lessons well. experience

as just successful we been have here. So we'll there be we believe as

Operator

[Operator comes of Bank America. Instructions] from with Our question Travis next Steed

Travis Steed

to you've through tariff your don't business? that I impacts on are little components, help know or of could about sourced election think color from and potential tariffs international maybe for forward, sources? in you look some if Since U.S. supplies for way thought how I you how question. components Just tariffs or any put like more the U.S. about think a do know, that likely lot day do but a an going manufacturing,

John Sheridan

we it's a commitments of thinking Travis. made definitely and the And something we'll Yes, very while, in have cross does he that's campaigning mean, may chain things I that about. to have move some actual But process. less we're expenses supply with wide see to. we of we early goes other it's he's thanks, the the obviously that have where could potentially to one flexible problematic. into in countries to But And be that come have flexibility another. need we some Asian and as offset versus the actually mechanisms market

sort It's a flexibility that, at things the with we chain. specific, top of supply as begin point thinking can in see news we've time. to good it various is right definitely now. So And got And more become that actions in we mind it. about of address

Operator

the you concludes you. for Thank This conference. participation. Thank your

You may disconnect. now

Tandem Diabetes Care (TNDM) 6 Nov 242024 Q3 Earnings call transcript