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T TANDEM INVESTOR CENTER Tandem Diabetes Care Announces First Quarter 2021 Financial Results and Updated Full Year 2021 Sales Guidance May 5 , 2021 SAN DIEGO -- ( BUSINESS WIRE ) -- May 5 , 2021-- Tandem Diabetes Care , Inc. ( NASDAQ : TNDM ) , a leading insulin delivery and diabetes technology company , today reported its financial results for the quarter ended March 31 , 2021 and updated its sales guidance for the year ending December 31 , 2021 . First Quarter 2021 Highlights In comparing the first quarter of 2021 to the same period of 2020 : • Worldwide pump shipments increased 46 percent to 25,352 pumps from 17,378 pumps • Sales increased 44 percent to $ 141.0 million from $ 97.9 million • Gross margin improved to 52 percent of sales from 51 percent ● Operating margin improved to negative 2 percent of sales from negative 14 percent of sales " This year is off to an incredible start . We achieved record first quarter sales , our international pump shipments more than doubled compared to last year , and we now have more than 20 million days of real - world Control - IQ technology use logged in our cloud infrastructure , " said John Sheridan , president and chief executive officer . " We believe the high interest in our t : slim X2 insulin pump , our expanding international sales efforts , and our robust product pipeline will continue to drive our positive momentum in 2021 and beyond . " First Quarter 2021 Financial Results Domestic pump shipments increased 26 percent to 16,644 pumps in the first quarter of 2021 from 13,158 pumps in the same period of 2020. Domestic sales were $ 103.3 million , an increase of 30 percent compared to $ 79.5 million in the first quarter of 2020. International pump shipments increased 106 percent to 8,708 pumps in the first quarter of 2021 from 4,220 pumps in the same period of 2020. International sales were $ 37.7 million , an increase of 105 percent compared to $ 18.4 million in the first quarter of 2020 . Gross profit for the first quarter of 2021 increased 46 percent to $ 73.3 million , compared to $ 50.3 million for the same period of 2020. Gross margin increased to 52 percent in the first quarter of 2021 from 51 percent in the same period of 2020 . For the first quarter of 2021 , operating expenses totaled $ 76.5 million , compared to $ 63.8 million for the same period of 2020. Operating loss totaled $ 3.2 million , compared to $ 13.6 million for the same period of 2020. Operating margin for the first quarter of 2021 was negative 2 percent of sales compared to negative 14 percent for the same period of 2020. For the first quarter of 2021 , Adjusted EBITDA ( 1 ) was $ 13.2 million , or 9 percent of sales , compared to $ 4.1 million , or 4 percent of sales , for the same period of 2020 . Net loss for the first quarter of 2021 was $ 5.0 million , which included a $ 0.7 million non - cash charge for the change in fair value of certain outstanding warrants and $ 1.5 million of interest expense related to the Company's convertible debt . This is compared to a net loss of $ 14.9 million for the first quarter of 2020 , which included a $ 1.9 million non - cash charge for the change in fair value of certain warrants outstanding at that time . Cash Balance and Liquidity As of March 31 , 2021 , the Company had $ 513.4 million in cash , cash equivalents and short - term investments . This represents a $ 28.5 million increase in the first quarter of 2021 . 2021 Annual Guidance Update For the year ending December 31 , 2021 , the Company is updating its financial guidance as follows : • Sales are estimated to be in the range of $ 625 million to $ 640 million , which represents an annual sales growth of 25 percent to 28 percent compared to 2020. The Company's prior sales guidance for 2021 was estimated to be in the range of $ 600 million to $ 615 million . o Includes international sales of approximately $ 125 million to $ 130 million , which represents an annual sales growth of 50 percent to 56 percent compared to 2020. The Company's prior international sales guidance for 2021 was estimated to be in the range of $ 105 million to $ 110 million . • Gross margin is estimated to be approximately 55 percent • Adjusted EBITDA ( 1 ) is estimated to be 14 percent to 15 percent of sales • Non - cash charges included in cost of goods sold and operating expenses are estimated to be approximately $ 80 million , which include : o Approximately $ 65 million in non - cash , stock - based compensation expense o Approximately $ 15 million of depreciation and amortization ( 1 ) EBITDA is a non - GAAP financial measure defined as net income ( loss ) excluding income taxes , interest and other non - operating items and depreciation and amortization . Adjusted EBITDA further adjusts for the change in fair value of common stock warrants and non - cash stock - based