DexCom(DXCM)2024-07-25 20:05Revenue Growth and Financial Performance - Revenue grew 15% year-over-year to $1.004 billion in Q2 2024, with U.S. revenue up 19% and international revenue up 7%[1] - Revenue for the three months ended June 30, 2024, was $1,004.3 million, a 15% year-over-year increase from $871.3 million in 2023[15][16] - U.S. revenue for the three months ended June 30, 2024, was $731.9 million, representing 73% of total revenue and a 19% year-over-year growth[16] - International revenue for the three months ended June 30, 2024, was $272.4 million, a 7% year-over-year increase[16] - Sensor and other revenue for the three months ended June 30, 2024, was $947.0 million, a 22% year-over-year growth and 94% of total revenue[17] - Hardware revenue for the three months ended June 30, 2024, was $57.3 million, a 39% year-over-year decline[17] Operating Income and Profitability - GAAP operating income increased to $158.0 million (15.7% of revenue), up 100 basis points YoY, while Non-GAAP operating income rose to $195.4 million (19.5% of revenue), up 130 basis points YoY[1] - GAAP net income for Q2 2024 was $143.5 million ($0.35 per diluted share), up from $115.9 million ($0.28 per diluted share) in Q2 2023[5] - Non-GAAP gross profit for Q2 2024 was $638.1 million (63.5% of revenue), consistent with the same period in 2023[4] - GAAP net income for the three months ended June 30, 2024, was $143.5 million, compared to $115.9 million in 2023[15] - Non-GAAP net income for the three months ended June 30, 2024, was $174.3 million, compared to $139.4 million in 2023[19] - Adjusted EBITDA for the three months ended June 30, 2024, was $283.9 million, a 22% increase from $232.6 million in 2023[19] - GAAP net income for the three months ended June 30, 2024, was $143.5 million, compared to $115.9 million in the same period in 2023[21] - Non-GAAP net income for the three months ended June 30, 2024, was $174.3 million, compared to $139.4 million in the same period in 2023[21] - GAAP diluted net income per share for the three months ended June 30, 2024, was $0.35, compared to $0.28 in the same period in 2023[21] - Non-GAAP diluted net income per share for the three months ended June 30, 2024, was $0.43, compared to $0.34 in the same period in 2023[21] - Adjusted EBITDA excludes non-cash operating charges for share-based compensation, depreciation, and amortization, as well as non-operating items such as interest income, interest expense, and income tax expense or benefit[28] Product Launches and Market Expansion - The company launched Direct-to-Watch in the U.S. and international markets, enabling G7 customers to use Apple Watch as their primary glucose display[2] - Dexcom secured coverage for Dexcom ONE in France for type 2 diabetes patients using basal insulin, expanding reimbursed access to real-time CGM[2] - Dexcom advanced pump connectivity by integrating G7 with Insulet's Omnipod 5 and Tandem's Mobi insulin pump with Control-IQ technology[2] Financial Guidance and Share Repurchase - Dexcom updated 2024 annual revenue guidance to $4.00 - 4.05 billion, representing 11 - 13% organic growth, and expects Q3 2024 revenue of $975 million to $1.00 billion[3] - The company announced a $750 million share repurchase program alongside Q2 2024 results[3] Cash Position and Expenses - Dexcom held $3.12 billion in cash, cash equivalents, and marketable securities as of June 30, 2024, with an undrawn revolving credit facility[6] - Research and development expenses for the three months ended June 30, 2024, were $136.0 million, a 14% increase from $119.3 million in 2023[15] - Selling, general, and administrative expenses for the three months ended June 30, 2024, were $332.7 million, an 11% increase from $299.0 million in 2023[15] - Business transition and related costs for the three months ended June 30, 2024, were primarily related to workforce reduction costs and rent for vacated office space in San Diego, California[21] - Intellectual property litigation costs for the three months ended June 30, 2024, were $0.05 per share, primarily related to Dexcom's patent infringement litigation against Abbott Diabetes Care, Inc.[21] - Tax adjustments for the three months ended June 30, 2024, were primarily related to the tax effect of non-GAAP adjustments and excess tax benefits from share-based compensation for employees[22] Share and Earnings Metrics - GAAP diluted weighted-average shares outstanding for the three months ended June 30, 2024, were 416.8 million, compared to 431.5 million in the same period in 2023[21] - Non-GAAP diluted weighted-average shares outstanding for the three months ended June 30, 2024, were 409.1 million, compared to 407.8 million in the same period in 2023[21]