Financial Performance - Total revenue for fiscal 2024 reached $4.03 billion, an increase of 11% from 2023[439] - Gross profit for fiscal 2024 was $2.44 billion, up 7% from the previous year[439] - Operating income for fiscal 2024 was $600 million, reflecting a slight increase of 0.4% from 2023[439] - Net income for fiscal 2024 was $576.2 million, representing a 6% increase compared to 2023[439] - Operating cash flow for fiscal 2024 was $989.5 million, up 32% from the previous year[439] - Revenue from the United States accounted for 72% of total revenue in fiscal 2024, amounting to $2.89 billion, a 10% increase from 2023[449] - International revenue reached $1.14 billion in fiscal 2024, up 15% from the previous year[449] - For the twelve months ended December 31, 2024, the company reported a net income of $576.2 million, an increase from $203.8 million in the previous year, representing a growth of approximately 183%[477] Expenses - Research and development expenses for fiscal 2024 were $552.4 million, a 9% increase from 2023[441] - Selling, general and administrative expenses totaled $1.29 billion, reflecting an 8% increase from the previous year[441] - Research and development expenses increased by $37.6 million, driven by higher headcount, clinical trials, and software costs, reflecting the company's commitment to future growth and product development[453] - Selling, general and administrative expenses rose by $92.3 million, mainly due to increased advertising, compensation, software, and travel expenses[453] Cash Flow and Capital Management - Cash, cash equivalents, and short-term marketable securities totaled $2.58 billion as of December 31, 2024, a decrease of $144.7 million from $2.72 billion as of December 31, 2023[475] - Positive cash flows from operating activities amounted to $989.5 million for the twelve months ended December 31, 2024, with expectations for continued positive cash generation[459] - The company had a working capital ratio of 1.47 and a quick ratio of 1.22 as of December 31, 2024, indicating sufficient current assets to cover short-term liabilities[463] - As of December 31, 2024, the company had a debt-to-assets ratio of 0.38, suggesting total assets are adequate to cover both short-term and long-term debts[466] - The company received net proceeds of $1.19 billion from the 2025 Notes offering and $1.23 billion from the 2028 Notes offering, with plans to use the proceeds for general corporate purposes and potential acquisitions[460] - The company anticipates significant capital expenditures in the next year to invest in equipment and manufacturing facilities to support growth[463] - Capital expenditures for the year were $358.8 million, up from $236.6 million in the previous year, indicating a growth of approximately 51.6%[477] - The company generated $248.1 million in net proceeds from marketable securities, contrasting with $253.0 million in net purchases of marketable securities in the prior year[477] - The company issued $1.23 billion in senior convertible notes, net of issuance costs, compared to $26.6 million in proceeds from the issuance of common stock under employee stock plans in the previous year[477] - The company purchased $750.0 million in treasury stock, while the previous year saw $688.7 million in similar purchases, reflecting a significant commitment to returning capital to shareholders[477] Product Development and Market Expansion - The company launched the Dexcom G7 in 2023 and Stelo, the first over-the-counter glucose biosensor in the U.S., in August 2024[422] - Revenue for the twelve months ended December 31, 2024, increased primarily due to a sales volume increase from approximately 500,000 - 600,000 net new users added to the worldwide customer base, with disposable sensor revenue comprising approximately 95% of total revenue[451] Risk Management - The company is exposed to foreign currency exchange risk due to international operations, which could adversely affect financial results, including income and losses[483] - The company utilizes foreign currency forward contracts to hedge monetary assets and liabilities, with these contracts generally maturing in one month[485] - The company maintains a portfolio of cash equivalents and short-term investments to preserve capital while maximizing income from investments, with no material exposure to interest rate risk[479] - The company translates financial statements of international subsidiaries into U.S. dollars, affecting net income only upon sale or liquidation of the underlying investment[484] Profitability Metrics - Gross profit margin percentage decreased in 2024 compared to 2023, primarily due to product and channel mix changes, higher freight costs, and non-cash charges totaling $43.3 million related to inventory[451] - The company experienced a net increase of $108.8 million in changes of working capital balances compared to a net increase of $3.2 million in the prior year[477]

Group 1: Company Performance - Dexcom, Inc. reported a fourth-quarter revenue increase of 8% year-over-year to $1.114 billion, surpassing the analyst consensus estimate of $1.104 billion [1] - U.S. revenue grew by 4%, while international revenue increased by 17% on a reported basis and 19% on an organic basis [1] - Dexcom reaffirmed its FY25 guidance for revenue of $4.60 billion, with an adjusted gross profit margin of around 64%–65% and an adjusted operating margin of 21% [1] Group 2: Legal Developments - Abbott Inc. reached an agreement with Dexcom to settle all outstanding patent disputes related to continuous glucose monitoring products, dismissing all pending cases worldwide [2] - The settlement includes a provision that prohibits both parties from litigating patent, trade dress, and design rights disputes for the next 10 years, with no financial payments involved [2] Group 3: Analyst Insights - Analysts note that Dexcom's market share remained steady in Q4, with productivity improvements expected following a 40% expansion of the commercial team last year [3] - Multiple growth drivers are anticipated to boost Dexcom's performance in 2025, sustaining revenue and earnings growth in the long term [4] - Dexcom's long-term growth is supported by an expanding product lineup, including G7, Dexcom One, and Stelo, with opportunities to reach new patient groups [5] Group 4: Competitive Landscape - Competition from major players like Medtronic and Abbott could impact Dexcom's expansion by capturing shares of new or existing patients in the continuous glucose monitoring market [6] - Analysts maintain varying ratings on Dexcom, with Morgan Stanley raising the price target from $75 to $82 and Canaccord Genuity raising it from $99 to $103 [6] Group 5: Stock Performance - Dexcom's stock price increased by 6.22% to $89.32 as of the last check on Friday [7]

Core Insights - DexCom, Inc. reported weaker-than-expected earnings for Q4, with earnings of $0.45 per share, missing the analyst consensus estimate of $0.50 per share, while quarterly sales of $1.140 billion exceeded the consensus estimate of $1.104 billion [1] - The company plans to expand its US commercial sales force and has launched two major products, Dexcom One+ and Stelo, while also submitting the G7 15-day product to the FDA [2] - DexCom reaffirmed its FY25 guidance, projecting revenue of $4.60 billion, an adjusted gross profit margin of around 64%-65%, and an adjusted operating margin of 21% [2] Stock Performance - DexCom shares increased by 0.3%, closing at $84.09 following the earnings announcement [3] - Analysts have adjusted their price targets for DexCom, with Morgan Stanley maintaining an Equal-Weight rating and raising the target from $75 to $82, while Canaccord Genuity maintained a Buy rating and increased the target from $99 to $103 [4]

Core Insights - DexCom, Inc. reported fourth-quarter 2024 adjusted earnings per share (EPS) of 45 cents, missing the Zacks Consensus Estimate of 50 cents by 10% and down from 50 cents in the prior-year quarter [1] - Total revenues grew 7.6% year over year to $1.11 billion, driven by strong new patient performance and expanded availability of its G7 and DexCom ONE+ product platforms [2] - The company expects 2025 revenues to be $4.6 billion, implying 14% year-over-year growth, in line with the Zacks Consensus Estimate [10] Revenue Performance - Total revenues increased by 7.6% (8% on an organic basis) to $1.11 billion year over year [2] - Sensor and other revenues, which account for 96% of total revenues, rose 13% year over year to $1.07 billion, while hardware revenues decreased by 49% year over year to $45 million [5] - U.S. revenues (72% of total revenues) increased 4.4% year over year to $802.8 million, and international revenues (28%) improved 17.1% (19% on an organic basis) year over year to $310.7 million [6] Margin Analysis - Adjusted gross profit totaled $661.2 million, down 0.4% from the prior-year quarter, with an adjusted gross margin of 59.4%, down 480 basis points year over year [7] - Adjusted operating margin was 18.8%, down 460 basis points year over year, with total adjusted operating expenses of $209.5 million, down 13.7% from the prior-year period [8] Financial Position - The company exited the fourth quarter with $2.58 billion in cash, cash equivalents, and marketable securities, compared to $2.49 billion in the third quarter [9] - Total assets amounted to $6.48 billion, up sequentially from $6.35 billion [9] Strategic Initiatives - DexCom's active customer base reached over 2.8 million users worldwide, up 25% from the 2023 level, driven by strategic initiatives including an expanded sales force and new product launches [12] - The company added more than 50,000 new U.S. prescribers, enhancing access to its CGM technology and driving record new patient starts in the fourth quarter [13] - Stelo has contributed significantly to growth, with over 140,000 users, particularly among type 2 diabetes and prediabetes populations [14] Market Expansion - International revenues are driven by expansion in markets such as France and New Zealand, with broader reimbursement coverage achieved [15] - DexCom is focusing on increasing basal insulin coverage across other markets, with early wins in Germany, Canada, Australia, and a growing presence in Japan [15] Future Outlook - The company expects adjusted gross margin to be 64-65% and adjusted operating margin to be approximately 21% for 2025 [11] - Key plans include the rollout of a 15-day wear G7 system, improved manufacturing efficiencies, and further penetration into the non-insulin diabetes market [16] - Reimbursement expansion is crucial, with coverage extending beyond insulin users, potentially granting access to over 5 million people with type 2 diabetes not on insulin [17]

Financial Data and Key Metrics Changes - The company reported fourth quarter organic revenue growth of 8% compared to Q4 2023, bringing full-year organic revenue growth to 12% [10][29] - Worldwide revenue for Q4 2024 was $1.11 billion, up from $1.03 billion in Q4 2023, representing an 8% increase [29] - US revenue totaled $803 million for Q4 2024, compared to $769 million in Q4 2023, reflecting a 4% increase [30] - International revenue grew 17% to $311 million in Q4, with international organic revenue growth at 19% [32] - Gross profit for Q4 was $661.2 million, or 59.4% of revenue, down from 64.2% in Q4 2023, impacted by a $21 million non-cash charge [34] - Operating income was $209.5 million, or 18.8% of revenue, compared to $242.7 million, or 23.5% of revenue in Q4 2023 [36] - Net income for Q4 was $177.8 million, or $0.45 per share, with cash and cash equivalents at approximately $2.6 billion [37] Business Line Data and Key Metrics Changes - The company ended 2024 with over 2.8 million customers globally on its G series and D series products, a 25% increase from 2023 [12] - The US prescriber base grew by more than 50,000 over the past year, contributing to record new customer starts [13][15] - The DME channel share remained stable during Q4, with expectations for improvement in 2025 [31] Market Data and Key Metrics Changes - The company achieved significant reimbursement wins, with two of the three largest PBMs covering CGM for anyone with diabetes as of January 2025 [19] - By the end of 2025, the company expects coverage for over five million people with type 2 diabetes who are not on insulin in the US [19] - Internationally, the company secured basal coverage for its One Plus system in France and expanded coverage in New Zealand [25][33] Company Strategy and Development Direction - The company is focused on broadening its commercial reach, launching new products, and advancing CGM reimbursement globally [11] - The launch of the over-the-counter product, Stella, aims to empower more individuals to take control of their health, with over 140,000 users in the first four months [21][23] - The company is leveraging generative AI technology to enhance the Stella platform and improve customer engagement [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering 2025 with a stronger position to capitalize on growth opportunities [11] - The company anticipates total revenue of $4.6 billion in 2025, representing a 14% growth, with expectations for improved gross margins [38][39] - Management highlighted the importance of navigating the evolving coverage landscape and the growing economic argument for incorporating CGM earlier into care plans [16][18] Other Important Information - The company is actively pursuing coverage for the remaining 20 million type 2 non-insulin users in the US [20] - The FDA review for the fifteen-day G7 system is nearing completion, with expectations for a second-half launch [80] - The company is developing the G8 platform, which will be smaller and more capable, with multi-analyte capabilities [88][90] Q&A Session Summary Question: Status of Salesforce and DME issues - Management reported significant progress in addressing Salesforce productivity and DME channel issues, with improved metrics and record new starts [47][49] Question: Volume versus revenue gap in the US - Management indicated that the gap between volume and revenue is expected to converge throughout 2025, with improvements anticipated as rebate dynamics stabilize [55][56] Question: Cadence of growth through the year - Management expects a stable cadence of improvement throughout 2025, with a typical seasonal decline in Q1 but overall growth in the second half of the year [62][66] Question: Type 2 coverage impact on revenue - Management confirmed that the unit economics remain similar across disease states, with expectations for strong utilization and retention rates among newly covered type 2 patients [72][76] Question: G7 fifteen-day sensor approval process - Management expressed confidence in receiving FDA approval soon, with plans for a second-half launch and integration with pump partners [80][81] Question: Expectations for record new patient numbers in 2025 - Management anticipates a record year for new patients, driven by continued penetration in insulin-intensive segments and new type 2 coverage [104][110] Question: Assumptions behind 2025 growth guidance - Management provided insights into the conservative assumptions behind the 14% growth guidance, emphasizing the importance of stable DME share and the potential impact of new product launches [121][126]

Core Insights - DexCom reported mixed earnings for Q4 2024, with revenue growth of 8% to $1.114 billion, slightly exceeding analyst expectations, while Non-GAAP EPS fell to $0.45, below the forecast of $0.50 [2][3][6] Financial Performance - Revenue for Q4 2024 reached $1.114 billion, an 8% increase from $1.035 billion in Q4 2023, surpassing the estimate of $1.112 billion [3][6] - Non-GAAP EPS was $0.45, a 10% decline year-over-year from $0.50 in Q4 2023, falling short of the expected $0.50 [3][6] - Non-GAAP operating income decreased by 13.7% to $209.5 million compared to $242.7 million in Q4 2023 [3][6] - Gross profit margin fell to 59.4%, down 4.8 percentage points from 64.2% in Q4 2023 [3][9] Business Overview - DexCom specializes in continuous glucose monitoring systems, focusing on diabetes management with products like the G6 and G7 systems [4] - The company is investing in product development, including AI advancements, to enhance its offerings and market reach [4][7] Strategic Developments - The introduction of the G7 system and the Dexcom Stelo aims to target non-insulin-using diabetes patients, expanding the product line [5][7] - Significant international revenue growth of 17% was noted, with a 19% organic growth increase, indicating successful market expansion [6][8] - A strategic partnership with ŌURA was announced to integrate glucose data into a broader health management ecosystem [8] Future Outlook - Management anticipates a revenue growth of 14% for fiscal year 2025, with a Non-GAAP operating margin target of around 21% [10] - The approval and expected release of the G7 15-day system in the U.S. is seen as a key milestone for future performance [10]

Core Insights - DexCom reported $1.11 billion in revenue for Q4 2024, a year-over-year increase of 7.6% [1] - The EPS for the same period was $0.45, down from $0.50 a year ago, indicating a -10.00% surprise compared to the consensus estimate [1] - The revenue met the Zacks Consensus Estimate, showing a slight surprise of +0.05% [1] Revenue Breakdown - International revenue was $310.70 million, exceeding the six-analyst average estimate of $307.38 million, with a year-over-year change of +17.1% [4] - U.S. revenue reached $802.80 million, slightly above the $798.41 million average estimate, reflecting a +4.4% year-over-year change [4] - Hardware revenue was $45 million, below the two-analyst average estimate of $46.55 million, showing a significant year-over-year decline of -48.6% [4] - Revenue from sensors and other products was $1.07 billion, slightly above the $1.06 billion estimate, with a year-over-year increase of +12.8% [4] Stock Performance - DexCom shares returned +4.3% over the past month, outperforming the Zacks S&P 500 composite's +3.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Viewpoint - DexCom reported quarterly earnings of $0.45 per share, missing the Zacks Consensus Estimate of $0.50 per share, representing a -10% earnings surprise [1] - The company posted revenues of $1.11 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.05% and showing a year-over-year increase from $1.03 billion [2] Company Performance - Over the last four quarters, DexCom has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] - The stock has gained approximately 7.8% since the beginning of the year, outperforming the S&P 500's gain of 2.9% [3] Future Outlook - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates at $0.37 for the coming quarter and $2 for the current fiscal year [7] - The Zacks Rank for DexCom is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Medical - Instruments industry, to which DexCom belongs, is currently in the top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, Globus Medical, is expected to report quarterly earnings of $0.76 per share, reflecting a year-over-year change of +26.7% [9]

Dexcom Dexcom earnings Q4 2024 Digbetes Nasdag Safe harbor statement This presentation also contains non-GAAP financial measures. The appendix reconclies the non-GAAP financial measures in this presentation to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP). These non-G-AP financial mecsures include organic revenue, nor-GAAP gross profit, non-GAAP operating income (loss), non-GAAP operating income (loss), non-GAAP operating margin, ...

Financial Results and Guidance - DexCom will report preliminary, unaudited financial results for Q4 2024 and fiscal year 2024, along with initial financial outlook for fiscal year 2025[3] - The preliminary unaudited financial results for Q4 and fiscal year 2024 are subject to finalization in DexCom's Annual Report on Form 10-K[9] - DexCom's forward-looking statements include preliminary unaudited revenue for Q4 and full fiscal year 2024, including growth rates[9] - DexCom provided total revenue guidance for fiscal year 2025[9] - DexCom provided Non-GAAP Gross Profit Margin and Non-GAAP Operating Margin guidance for fiscal years 2024 and 2025, including expected growth rates[9] Forward-Looking Statements and Risks - DexCom's forward-looking statements also include potential strategic and business opportunities[9] - The forward-looking statements are subject to risks and uncertainties, and actual results may differ materially from current expectations[9] - DexCom assumes no obligation to update forward-looking statements after the date of the report unless required by law[9] Regulatory and Filing Information - The information in Item 2.02 and Exhibit 99.1 is not deemed "filed" under Section 18 of the Securities Exchange Act of 1934[10] - The information in the report and exhibit is not incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act unless expressly set forth[10]