DexCom(US:DXCM)2024-10-24 20:04Revenue 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].