DexCom, Inc. (DXCM) reported third-quarter 2024 adjusted earnings per share (EPS) of 45 cents, which beat the Zacks Consensus Estimate of 43 cents by 4.7%. The company had reported earnings of 50 cents per share in the prior-year quarter. DXCM registered GAAP net income per share of 34 cents, up from the year-ago quarter's figure of 29 cents. Revenue Details of Dexcom Total revenues grew 2% (3% on an organic basis) to $994.2 billion year over year, beating the Zacks Consensus Estimate by 0.3%. The revenue g ...

My last article about DexCom, Inc. (NASDAQ: DXCM ) was published almost one and a half years ago and similar to my previous articles about Dexcom, I was bearish about the stock. And while there might be stocks, I am rather bearish about, IMy analysis is focused on high-quality companies, that can outperform the market over the long-run due to a competitive advantage (economic moat) and high levels of defensibility. Focused on European and North American companies, but without constraints regarding market ca ...

Financial Data and Key Metrics Changes - For Q3 2024, the company reported worldwide revenue of $994 million, a 2% increase compared to $975 million in Q3 2023, and a 3% organic growth [16] - US revenue was $702 million, down 2% from $714 million in Q3 2023, attributed to slower new customer starts and a decline in revenue per customer due to shifting channel dynamics [17] - International revenue grew 12% to $292 million, with organic growth at 16%, driven by stronger performance in core international markets [18] - Gross profit was $625.9 million, representing 63% of revenue, compared to 64.7% in Q3 2023 [19] - Operating income was $212 million, or 21.3% of revenue, down from $238.9 million, or 24.5% of revenue in Q3 2023 [20] - Net income for Q3 was $179.9 million, or $0.45 per share [20] Business Line Data and Key Metrics Changes - The company experienced record levels of new customer starts in Q3, with a prescriber base expansion of nearly 35,000 clinicians since the sales force expansion in April [9] - The DME channel saw some incremental share loss, but trends stabilized late in the quarter as the team aligned better with partners [18] - The launch of the G7 system in Australia and the DexCom ONE+ system in 19 countries contributed to international growth [11] Market Data and Key Metrics Changes - The US CGM market growth slowed to about 10% in Q3, down from over 20% in the first half of the year, raising concerns about market dynamics [26] - Japan returned to growth with the new sales organization gaining momentum, achieving the highest new customer start month since entering the market in 2019 [12] Company Strategy and Development Direction - The company is focused on expanding its sales force and improving commercial execution to drive growth [7] - The launch of Stelo is seen as a pivotal moment in diabetes care, providing access to a broader audience and enhancing the care model for patients [13] - The company aims to stabilize and grow its DME channel by fostering better relationships and increasing prescription referrals [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to higher growth and continued margin expansion, with expectations of improved sales force productivity [7] - The company is maintaining its 2024 revenue guidance of $4.00 billion to $4.05 billion, reflecting organic growth of 11% to 13% [21] - Management acknowledged the challenges faced in Q3 but emphasized the positive momentum heading into Q4 and 2025 [24] Other Important Information - The company submitted its DexCom G7 15-day CGM system to the FDA for review, which is a top priority for future growth [15] - The company closed the quarter with approximately $2.5 billion in cash and cash equivalents, providing financial flexibility [20] Q&A Session Summary Question: Insights on US market performance and DME share - Management acknowledged a rocky quarter but noted strong new patient additions and stabilization in DME share towards the end of Q3, indicating positive momentum moving forward [24] Question: Concerns about CGM market growth - Management remains bullish on the CGM market, believing it can grow faster than the current 10% rate, despite recent challenges [27] Question: Progress on new patient starts and long-range plan - Management confirmed that they are on track with their long-range plan, expecting continued improvement in new patient starts and sales force productivity [28] Question: Clarification on record new starts - Record new patient starts did not include Stelo, focusing solely on the G-Series/T-Series insulin product base [30] Question: DME channel stabilization efforts - Management detailed efforts to improve relationships with DME partners and emphasized the importance of increasing patient referrals through this channel [35] Question: Timing and financial impact of FDA approval for the 15-day G7 - Management refrained from speculating on approval timing but expressed optimism about the potential financial impact once launched [38] Question: Pricing strategy for Stelo with DME partners - Management indicated that pricing for Stelo through DME partners would account for their margins while maintaining low costs for the company [42] Question: Competition in the Type 1 pump integrated segment - Management highlighted the strong reputation of DexCom sensors and their ongoing collaboration with pump partners to maintain market share [44] Question: 2025 outlook and growth expectations - Management reiterated confidence in achieving the $4.6 billion revenue target for 2025, factoring in new product launches and market stabilization [46]

DexCom (DXCM) reported $994.2 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 2%. EPS of $0.45 for the same period compares to $0.50 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $991.55 million, representing a surprise of +0.27%. The company delivered an EPS surprise of +4.65%, with the consensus EPS estimate being $0.43. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and h ...

DexCom (DXCM) came out with quarterly earnings of $0.45 per share, beating the Zacks Consensus Estimate of $0.43 per share. This compares to earnings of $0.50 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 4.65%. A quarter ago, it was expected that this medical device company would post earnings of $0.39 per share when it actually produced earnings of $0.43, delivering a surprise of 10.26%. Over the last four quarters, the co ...

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Table of Contents DEXCOM, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 000-51222 (Exact name of registrant as specified in its charter) Delaware 33-0857544 (State or other jurisd ...

Shares of Dexcom fell 9% in extended trading on Thursday after the company released third-quarter results that beat analysts' expectations but showed a decline in U.S. revenue year over year.Here's how the company did:Earnings per share: 45 cents adjusted vs. 43 cents expected by LSEGRevenue:  $994 million vs. $990 million expected by LSEGThe company's revenue increased 2% to $994.2 million from $975 million a year earlier. Dexcom's U.S. revenue declined 2% from $713.6 million the prior year. The company re ...

Revenue Performance - Revenue for Q3 2024 was $994.2 million, representing a 2% year-over-year growth on a reported basis and 3% on an organic basis[2]. - Total revenue for Q3 2024 was $994.2 million, a 2% increase from $975.0 million in Q3 2023[14]. - U.S. revenue decreased by 2%, while international revenue increased by 12% on a reported basis and 16% on an organic basis year-over-year[2]. - U.S. revenue decreased by 2% year-over-year to $701.9 million, while international revenue increased by 12% to $292.3 million[14]. - Sensor and other revenue grew by 9% year-over-year to $951.8 million, representing 96% of total revenue[15]. Income and Profitability - GAAP operating income was $152.0 million, or 15.3% of revenue, a decrease of 580 basis points compared to Q3 2023; Non-GAAP operating income was $212.0 million, or 21.3% of revenue, down 320 basis points year-over-year[2][5]. - GAAP net income for Q3 2024 was $134.6 million, or $0.34 per diluted share, compared to $120.7 million, or $0.29 per diluted share in Q3 2023[6]. - Net income for Q3 2024 increased to $134.6 million, compared to $120.7 million in Q3 2023[16]. - Basic net income per share rose to $0.34 from $0.31 year-over-year[16]. - Non-GAAP net income for Q3 2024 was $179.9 million, down from $202.8 million in Q3 2023[16]. - Adjusted EBITDA for Q3 2024 was $300.1 million, compared to $314.5 million in Q3 2023[16]. - GAAP net income for the three months ended September 30, 2024, was $134.6 million, up from $120.7 million for the same period in 2023, representing a 16.2% increase[17]. - Non-GAAP net income for the three months ended September 30, 2024, was $179.9 million, compared to $202.8 million in the prior year, reflecting a decrease of 11.3%[17]. - GAAP diluted net income per share for the three months ended September 30, 2024, was $0.34, an increase from $0.29 in the same quarter of 2023[17]. - Non-GAAP diluted net income per share for the three months ended September 30, 2024, was $0.45, down from $0.50 in the prior year, a decline of 10%[17]. - The company reported a GAAP net income of $424.5 million for the nine months ended September 30, 2024, compared to $285.2 million for the same period in 2023, marking a significant increase of 48.8%[17]. - Non-GAAP net income for the nine months ended September 30, 2024, was $482.4 million, up from $410.7 million in the previous year, indicating a growth of 17.5%[17]. Expenses and Financial Flexibility - Research and development expenses increased to $135.4 million, up from $131.4 million in Q3 2023[16]. - Total operating expenses for Q3 2024 were $441.8 million, compared to $417.8 million in Q3 2023[16]. - Cash and cash equivalents as of September 30, 2024, totaled $2.49 billion, providing significant financial flexibility for market expansion[7]. - The company incurred a nonrecurring $24.6 million non-cash inventory build charge and rent for vacated office space in San Diego, California, impacting the financial results for the three months ended September 30, 2024[17]. Product Development and Guidance - Launched Stelo, the first over-the-counter glucose biosensor in the U.S., targeting adults with prediabetes and type 2 diabetes not on insulin therapy[2]. - The company submitted the Dexcom G7 15-day CGM system to the FDA for review after the quarter ended[2]. - Dexcom is reiterating its 2024 revenue guidance of approximately $4.00 - 4.05 billion, indicating an expected organic growth of 11% to 13%[3]. Metrics and Adjustments - Non-GAAP gross profit margin for Q3 2024 was approximately 63.0%, down from 64.7% in Q3 2023[5]. - Adjustments related to taxes for the nine months ended September 30, 2024, were primarily due to the tax effect of non-GAAP adjustments and excess tax benefits from share-based compensation[18]. - The company emphasizes the importance of organic revenue as a metric for consistent comparison of revenue to prior periods and industry peers, excluding non-CGM revenue acquired or divested in the trailing twelve months[22].

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against DexCom, Inc. regarding a class action complaint filed due to alleged breaches of fiduciary duties by the board of directors [1] Financial Performance - On July 25, 2024, DexCom announced its Q2 fiscal 2024 financial results and reduced its revenue guidance for the full fiscal year 2024, attributing the results to the execution of several key strategic initiatives that did not meet their standards [2] - Following the announcement, DexCom's stock price plummeted from $107.85 per share on July 25, 2024, to $64.00 per share on July 26, 2024, marking a decline of approximately 40.66% in just one day [2]