Revenue Analysis
Total and Operating Revenue: TNDM has demonstrated a fluctuating revenue pattern over these reported periods. As of the most recent 2024 Q1, Total Revenue was approximately $191.67 million, compared to $196.80 million in 2023 Q4 and $169.38 million in 2023 Q1. There seems to have been a peak in 2023 Q4, with a notable drop towards 2023 Q1.
Gross Profit Margins: The Gross Profit for 2024 Q1 amounts to $94.67 million. This signals a slight rise from $93.29 million in 2023 Q4 and a significant increase compared to $82.91 million in 2023 Q1. This suggests that TNDM has increased its efficiency in generating profit from sales over the year.
Cost Management
Cost of Revenue and Operating Expense: The Cost of Revenue for the latest quarter stands at $97.00 million, reduced from $103.50 million in 2023 Q4. Operating Expenses have been relatively stable, with $136.35 million in the latest quarter as opposed to $128.35 million in 2023 Q4.
Total Expenses: There has been a rise in Total Expenses, from $231.86 million in 2023 Q4 to $233.35 million in 2024 Q1, which should merit deeper cost management strategies to ensure profitability.
Profitability Analysis
EBITDA, Operating Income, and Pretax Income: EBITDA was negative at -$34.34 million in 2024 Q1. Operating Income also reflected a loss of -$41.68 million in the same period, indicative of continual operational struggles. The pretax income loss narrows slightly to -$39.53 million, marking a consistent trend of fiscal pressure.
Net Income Metrics: Net Income has persistently been negative, with -$42.72 million in 2024 Q1, reflecting ongoing challenges in turning operations into profitable endeavors.
Cash Flow Indicators
Reconciled Depreciation: The reconciled depreciation amounts to $4.04 million for 2024 Q1, consistent with the prior quarter, indicating steady capital asset depreciation practices.
Interest Expense: Interest expenses are consistent, hovering around $1.15 million, which reflects steady financial costs pertaining to company debt.
Taxation
Tax Rate and Tax Provision: The tax rate varies but was notably marked up in 2024 Q1 at 0.4. The Tax Provision was $3.19 million in this period, contrasting sharply with other quarters where the provision was significantly lower or even negative.
Tax Effect of Unusual Items: Notably, there was a tax effect due to unusual items amounting to -$507,200 in 2024 Q1, indicative of non-recurring costs impacting fiscal computations.
Shareholder Metrics
Diluted and Basic EPS: Earnings per Share(both diluted and basic) were at a loss of -$0.65 in 2024 Q1. This represents a decrease in shareholder value when compared to previous quarters within the given timeframe.
Average Shares and Net Income Available to Common Stockholders: The diluted number of shares stands consistent at approximately 65.33 million, with Net Income available to common stockholders also reflecting the overall net loss of -$42.72 million in 2024 Q1.
Conclusion
TNDM’s financial performance over the reviewed period showcases several challenges, primarily in maintaining profitable operations. While revenue has seen occasional improvements and gross profit has increased, the persistent operational losses and negative net income highlight the need for rigorous cost management and operational strategy review. The company may need to explore avenues for reducing expenses and optimizing operations to turn these fiscal pressures into profit.