DexCom: Revenue Up, EPS Misses Mark

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$0.50 in Q4 2023, falling short of the expected $0.50 [3][6] - Non-GAAP operating income decreased by 13.7$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]