Tandem Diabetes Care (TNDM) Q4 2024 earnings summary

Executive summary

• Achieved record annual worldwide sales of $940.2 million in 2024 (up 26% YoY), with strong growth in both U.S. and international markets.

• Launched Tandem Mobi and expanded product portfolio, driving double-digit growth in new pump shipments and MDI conversions.

• Expanded addressable market with FDA clearance of Control-IQ Plus for type 2 diabetes, more than doubling U.S. market opportunity.

• Implemented operational efficiencies, sales force expansion, and commercial realignment to support future growth and profitability.

• Returned to positive free cash flow in 2024.

Financial highlights

• Fourth-quarter GAAP sales reached $282.6 million (up 44% YoY), with over 24,000 pumps shipped in the U.S. and nearly 10,000 internationally.

• U.S. pump shipments for the year totaled nearly 81,000, up 10%, with sales of $642 million.

• International sales grew 39% to $268 million, with 40,000 pumps shipped.

• FY 2024 GAAP gross margin was 52% (up from 49%); Q4 2024 gross margin was 56%.

• Adjusted EBITDA margin was negative 1% for 2024, with a return to positive free cash flow and $438 million in cash and investments at year-end.

Outlook and guidance

• 2025 worldwide sales expected between $997 million and just over $1 billion, representing 10%-11% growth.

• U.S. sales projected at $725-$730 million (13%-14% growth); international sales expected to grow 2%-4% to $272-$277 million, including $15M–$20M headwind from direct operations setup.

• Gross margin guidance for 2025 is 54%, with Adjusted EBITDA margin improving to approximately 3% of sales.

• First-quarter 2025 sales expected at $219M–$224M (U.S.: $144M–$147M; OUS: $75M–$77M), reflecting typical seasonality.

• Guidance includes modest contributions from type 2, pharmacy, and new product launches, with multi-year growth expected from these initiatives.