Tandem Diabetes Care (NASDAQ:TNDM) has reported a widened adjusted loss of 38 cents per share in Q3 2023, missing the Zacks Consensus Estimate of a loss of 35 cents and marking a significant increase from last year's loss of 27 cents per share. The company's GAAP loss stood at 51 cents per share, which, despite being an improvement from the previous year's 76 cents per share, reflects the company's financial struggle.
The GAAP revenues for Q3 decreased by 9.3% year over year to $185.6 million, falling short of the Zacks Consensus Estimate by 4%. Adjusted revenues were driven by the introduction of the Tandem Choice Program for t:slim X2 customers and the upcoming Tandem Mobi platform. Non-GAAP revenues reached $193.9 million based on 24,831 pump shipments worldwide.
In terms of regional sales, total GAAP sales in the U.S. were $130.2 million, a decrease of 10.8% year over year, while non-GAAP sales were $138.5 million. Outside the U.S., both GAAP and non-GAAP sales were reported at $55.4 million.
The gross profit for Q3 was $89.8 million with a contraction of gross margin by 270 basis points to 48.4%. While SG&A expenses fell by 5.7% to $79.3 million, R&D expenses rose by 14.1% to $42 million.
The company registered an adjusted operating loss of $31.6 million in Q3, which was almost double compared to an operating loss of $16.5 million in Q3 2022. As for liquidity, Tandem exited Q3 with cash and cash equivalents and short-term investments of $498.2 million, down from $507.2 million at the end of Q2.
In light of these results, Tandem has lowered its non-GAAP sales estimate for 2023 to at least $765 million, a reduction from an earlier projection of $785 million. The full-year non-GAAP sales inside the U.S. are expected to be at least $575 million and outside the U.S., at least $190 million.
Despite lower-than-expected earnings and revenues, Tandem continues to launch new products and implement scalable systems to support global operations. The company also reached a milestone with full U.S. healthcare provider availability of Tandem Source, its second-generation data management application.
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