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 Q4 sales of $282.6 million (up 44% YoY), and strong double-digit growth in both U.S. and international markets.

• Launched Tandem Mobi, expanded the Control-IQ algorithm (FDA-cleared for type 2 diabetes), and expanded U.S. sales force and pharmacy strategy.

• Returned to positive free cash flow in 2024.

• Implemented operational efficiencies, expanded commercial teams, and initiated direct sales transition in select European countries.

Financial highlights

• U.S. Q4 2024 non-GAAP sales were $184.4 million (up 13% YoY); full-year U.S. sales were $642 million.

• International sales grew 39% to $268 million for the year, with Q4 international sales up 48% to $68.1 million.

• Pump shipments totaled nearly 81,000 in the U.S. (up 10%) and 40,000 internationally for the year.

• FY 2024 GAAP gross margin was 52% (up from 49% YoY); adjusted EBITDA margin at -1% of sales; returned to positive free cash flow.

• Ended 2024 with $438 million in cash and investments.

Outlook and guidance

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

• U.S. 2025 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 expected to improve to 54% for 2025, with adjusted EBITDA margin rising to 3% of sales.

• Guidance includes modest contributions from new type 2 indication, pharmacy channel, and Libre integration, with multi-year growth expected from these initiatives.

• Q1 2025 sales guidance: $219M–$224M (U.S.: $144M–$147M; OUS: $75M–$77M); Q1 gross margin at ~51%, adjusted EBITDA margin at -6%.