Tandem Diabetes Care, Inc. (TNDM) Earnings Call Transcript & Summary

Hello, and welcome to the Annual Meeting of Stockholders of Tandem Diabetes Care, Inc. Please note that today's meeting is being recorded. [Operator Instructions] It is now my pleasure to turn today's meeting over to EVP and Chief Administrative Officer, Susan Morrison. The floor is yours.

Great. Thank you. Good afternoon, everyone, and thanks for joining Tandem Diabetes Care's 2020 Annual Meeting of Stockholders. As you likely know, we've historically held our Annual Meeting of Stockholders in person at our corporate office in San Diego. We initially planned on holding in-person meeting again this year. However, the pandemic has caused us to shift to a virtual meeting to protect the health and well-being of our stockholders, directors and employees. We appreciate your flexibility in accommodating this change. Joining me on the line are Kim Blickenstaff, Chairman of our Board of Directors; John Sheridan, President, Chief Executive Officer; David Berger, EVP and Chief Legal and Compliance Officer; and Dan Kleeburg, Partner with Ernst & Young. Also listening in are other members of our senior management team and members of our Board of Directors. I'd now like to turn the call over to Kim Blickenstaff who, in accordance with the company's amended and restated bylaws, will be presiding over this annual meeting. Kim?

Sorry I'll just get my script up here. Good afternoon, everyone, and thank you for attending. On behalf of the entire Tandem organization, I would like to pause and take a moment to thank and commend the members of our community including the doctors, nurses and health care professionals that are fighting this pandemic on the front lines every day for the benefit of us all. Thank you very much. I would also like to thank our employees for working diligently through the crises to the benefit of Tandem's customers, stockholders and other constituents. I'm having trouble with my script. Sorry. Now we'll turn to the formal business of our meeting. As described in the notice and proxy statement previously distributed, you are entitled to participate in and vote in the meeting if you are a stockholder as of the close of business on March 30, 2020, which is the record date for this meeting. If you have a 16-digit voting control number issued by the American Stock Transfer -- Trust Company, LLC, our transfer agent, and you wish to vote during the course of this meeting, please insert your voting control number and follow the prompts. Sorry, this is lagging up on me. You may also ask questions at any time during the meeting if you register with your 16-digit voting control number. Please refer to the chat box icon located at the top of the left-hand panel of your screen to submit a written question. Questions should be restricted to the procedures for the meeting and the specific proposals under consideration. In addition, electronic copies of the notice and proxy statement relating to the annual meeting as well as our 2019 annual report are available for your review. You may access those documents by clicking on the Investor Center portion of the website under Stockholder Meeting. An agenda that outlines the order of business for the meeting is also displayed on the screen. So now, I'll turn to the procedural matters. Proposal 1, election of the 2 Class I directors, Christopher J. Twomey and Kim D. Blickenstaff for a 3-year term to expire at the 2023 Annual Meeting of Stockholders. Proposal 2 is the ratification of the appointment of Ernst & Young LLP as our independent registered public accounting firm for the fiscal year ending December 21 -- December 31, 2020. Proposal 3, the approval of a nonbinding advisory basis of the compensation of our named executive officers as described in the proxy statement. David Berger, who's also Tandem's Corporate Secretary, will act as Secretary and inspector of the election of this meeting. Mr. Berger has taken the necessary oath and has advised that we have a quorum present today. Accordingly, this is an official meeting, and we can proceed with our business today. During the meeting, we will address the matters described in the agenda -- sorry, the agenda -- I'm sorry. This is lagging up on me. The agenda, which is on your screen. We will open the polls for voting and answer registered shareholder questions -- I'm very sorry, this is all locking up on me. And then...

If it's helpful, Kim. We can -- if it's locking up, we can have either John, who's also designated to someone, who's able to preside over the meeting or else David continue with these formal remarks before we open it back up.

Yes. I definitely have a Zoom glitch or whatever this is. So they could do it. It's just locked up on me.

I'm more than happy to read it.

Okay, sounds great. Thanks so much.

Okay, okay. During the meeting, we will address the matters described on the agenda zone on your screen. We will open the polls for voting, answer registered shareholders' questions and then an announcement will be made regarding the preliminary voting results and then the formal meeting will be adjourned. If you are eligible to vote, and have not submitted your proxy or voting instructions, or if you want to change your vote, please cast your electronic vote via the function located on the left-hand screen -- side of the screen. Electronic votes will be tallied after we have voted on all matters on the agenda. Upon receipt of the voting results, the polls will be officially closed. The electronic votes cast today will be counted in the final tally along the proxies previously received. We'll be announcing the preliminary results of the voting at the end of the meeting. The polls are now open for the 3 items of business as of 3:10 on -- as of 3:10. And as a reminder, the first item of business is the election of the Class I directors for the 3-year term to expire at -- on 2023's Annual Meeting of Stockholders. The second item of business is the ratification and appointment of Ernst & Young LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2020. And the third item of business is the approval on a nonbinding advisory basis of the compensation of our named executive officers. Voting is by proxy and electronic ballot. Each share of common stock is entitled to 1 vote. If you have already submitted your vote -- excuse me, your proxy or voting instructions, there is no need for you to cast a ballot, unless you wish to change your vote. The individuals named in the proxy will vote your shares as indicated on the proxy that you have already submitted to us. As a reminder, if you are voting today, please make sure you have your 16-digit voting code -- voting control number issued by AST, and click the vote link on the left-hand side of your screen. We will now provide some additional time for the submission of voting. [Voting]

There being no further business to come before the meeting, I declare the polls are now closed for all items as a business as of 3:14. The proxies and electronic ballots will now be tabulated by the inspector of the elections. We will be happy to entertain any appropriate stockholders' questions at this time. Does anybody have a question? Okay. It doesn't sound like we have any questions. Based upon preliminary information provided by the inspector of elections, I can report that each of the Class I nominees for Board of Directors has received a plurality of votes of the shares present, virtually or represented by proxy, and each is, therefore, duly elected for the 3-year term to expire at the 2023 annual meeting of stockholders. The proposal to ratify the appointment of Ernst & Young LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2020, has received the affirmative vote of the majority of the outstanding shares of our common stock present virtually or presented by proxy and entitled to vote on the proposal, and is therefore adopted. The proposal to approve on a nonbinding advisory basis, the compensation of our named executive officers has not received an affirmative vote of a majority of the outstanding shares of our common stock present virtually or represented by proxy and other -- and entitled to vote on the proposal. As this is an advisory vote, it will not require us to take any action regarding our executive compensation practices. However, we are evaluating the opinions of our stockholders and will carefully consider the outcome of this advisory vote. The final results of voting including any ballots and proxies recorded during this meeting will be set forth in the report of the inspector of the elections, and will be included in the minutes of the meeting. The final results will also be reported in the current report on Form 8-K to be filed with the SEC within 4 business days following the meeting. Before adjourning, I would like to thank each of our stockholders who submitted a proxy or voting instructions for this meeting. And I'd especially like to thank those stockholders who were able to attend the meeting virtually. Thank you for your continued support of Tandem, and the formal portion of the meeting has now adjourned. I'll just make a few remarks here. Tandem is 1,200 employees located in San Diego, Boise, Canada and 18 countries outside the United States. Our mission is to improve the lives of people living with diabetes through relentless innovation and extraordinary customer service. Over the last 8 years, we have introduced 8 -- 7 new products [ creating ] much faster than our competitors. Control-IQ is now the most advanced diabetes management system on the market, and the response to it on the marketplace has been extraordinary. People are reporting amazing therapeutic outcomes as well as the experience. 2019 was a great year for Tandem. We also had a strong first quarter. Clearly, we're navigating the turbulence of COVID-19, and the company has made a seamless transition during this time, and we are definitely seeing pressure and uncertainty. But when the markets do open back up, we expect that the same factors that made us successful in 2019 will be there in 2020 and 2021. Thank you to our employees for delivering on our mission with excellent technology and amazing customer service. And thank you to our shareholders for all of your support in the past and going forward. Susan, I'll just turn it back over to you.

Great. In closing, we just wanted to thank everyone for your participation today. If anyone ever is interested in doing follow-up calls with Investor Relations, we're more than happy to if you'd like to reach out directly to the company. Thanks again everyone for your support, and have a great day.

This concludes the meeting. You may now disconnect.