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T TANDEM INVESTOR CENTER Tandem Diabetes Care Announces Third Quarter 2021 Financial Results and Updated Full Year 2021 Sales Guidance November 3 , 2021 Virtual R & D Day Scheduled for December 6 , 2021 SAN DIEGO -- ( BUSINESS WIRE ) -- Nov . 3 , 2021-- Tandem Diabetes Care , Inc. ( NASDAQ : TNDM ) , a leading insulin delivery and diabetes technology company , today reported its financial results for the quarter ended September 30 , 2021 and updated its sales guidance for the year ending December 31 , 2021 . Third Quarter 2021 Highlights In comparing the third quarter of 2021 to the same period of 2020 : • Worldwide pump shipments increased 43 percent to 31,558 pumps from 22,021 pumps • Sales increased 45 percent to $ 179.6 million from $ 123.6 million • Gross margin improved to 54 percent of sales from 53 percent of sales ● Operating margin improved to 4 percent of sales from negative 1 percent of sales " We delivered a strong third - quarter performance in a difficult environment and continue to add new customers worldwide at an incredible rate , " said John Sheridan , president and chief executive officer . " Our domestic sales force expansion , scaling international launch of Control - IQ technology and depth of our new product pipeline has us well - positioned to drive growth in 2022 and beyond , while delivering upon our mission to provide people a positively different experience in diabetes care . " Third Quarter 2021 Financial Results Domestic pump shipments increased 10 percent to 20,296 pumps in the third quarter of 2021 from 18,380 pumps in the same period of 2020 . Domestic sales were $ 133.1 million , an increase of 24 percent compared to $ 107.5 million in the third quarter of 2020. International pump shipments increased 209 percent to 11,262 pumps in the third quarter of 2021 from 3,641 pumps in the same period of 2020. International sales were $ 46.5 million , an increase of 189 percent compared to $ 16.1 million in the third quarter of 2020 . Gross profit for the third quarter of 2021 increased 48 percent to $ 96.7 million , compared to $ 65.3 million for the same period of 2020. Gross margin increased to 54 percent in the third quarter of 2021 from 53 percent in the same period of 2020 . For the third quarter of 2021 , operating expenses totaled $ 89.0 million , compared to $ 66.3 million for the same period of 2020. Operating income totaled $ 7.7 million , compared to an operating loss of $ 1.0 million for the same period of 2020. Operating margin for the third quarter of 2021 was 4 percent of sales compared to negative 1 percent for the same period of 2020. For the third quarter of 2021 , adjusted EBITDA ( 1 ) was $ 26.9 million , or 15 percent of sales , compared to $ 14.8 million , or 12 percent of sales , for the same period of 2020 . Net income for the third quarter of 2021 was $ 5.8 million , which included a $ 0.4 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 senior notes . This is compared to a net loss of $ 9.4 million for the third quarter of 2020 , which included a $ 3.6 million non - cash charge for the change in fair value of certain warrants outstanding at that time and $ 4.9 million of interest expense related to the Company's convertible senior notes . Cash Balance and Liquidity As of September 30 , 2021 , the Company had $ 595.0 million in cash , cash equivalents and short - term investments . This represents a $ 49.7 million increase in the third quarter of 2021 , and a $ 110.1 million increase since December 31 , 2020 . 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 $ 685 million to $ 695 million , which represents an annual sales growth of 37 percent to 39 percent compared to 2020. The Company's prior sales guidance for 2021 was estimated to be in the range of $ 670 million to $ 685 million . o Includes international sales of approximately $ 168 million to $ 173 million , which represents an annual sales growth of 102 percent to 108 percent compared to 2020. The Company's prior international sales guidance for 2021 was estimated to be in the range of $ 160 million to $ 165 million . • Gross margin is estimated to be approximately 54 percent • Adjusted EBITDA ( 1 ) is estimated to be approximately 15 percent of sales • Non - cash charges included in cost of goods sold and operating expenses are estimated to be approximately $ 75 million , which include : o Approximately $ 60 million in non - cash , stock - based compensation expense o Approximately $ 15 million of depreciation and amortization