Dexcom Reports Fourth Quarter and Fiscal Year 2024 Financial Results
DexCom, Inc. (Nasdaq: DXCM) today reported its financial results as of and for the quarter and fiscal year ended December 31, 2024. Fourth Quarter 2024 Financial Highlights: Revenue grew 8% year-over...
SAN DIEGO: DexCom, Inc. (Nasdaq: DXCM) today reported its financial results as of and for the quarter and fiscal year ended December 31, 2024.
Fourth Quarter 2024 Financial Highlights:
- Revenue grew 8% year-over-year to $1.114 billion on a reported basis and 8% year-over-year on an organic1 basis.
- U.S. revenue grew 4% and international revenue grew 17% on a reported basis and 19% on an organic1 basis, all on a year-over-year basis.
- GAAP operating income of $188.9 million or 17.0% of revenue, a decrease of 400 basis points compared to the fourth quarter of 2023. Non-GAAP operating income* of $209.5 million or 18.8% of reported revenue, a decrease of 470 basis points compared to the fourth quarter of 2023.
Full Year 2024 Financial Highlights:
- Full year revenue grew 11% versus the prior year to $4.033 billion on a reported basis and 12% on an organic2 basis.
- U.S. revenue growth of 10% and international revenue growth of 15% on a reported basis. International revenue growth was 17% on an organic2 basis.
- GAAP operating income of $600.0 million or 14.9% of revenue, a decrease of 160 basis points compared to 2023. Non-GAAP operating income* of $757.1 million or 18.8% of revenue, a decrease of 100 basis points over the prior year.
Fourth Quarter 2024 Strategic Highlights:
- Submitted Dexcom G7 15-day CGM system to the FDA for review.
- Secured reimbursement for Dexcom ONE+ in France for people with type 2 diabetes on basal insulin, significantly expanding access to Dexcom CGM in the French market.
- Announced strategic partnership with ŌURA, enabling integration of Dexcom glucose data with vital sign, sleep, stress, heart health and activity data from Oura Ring.
- Launched first generative AI feature in glucose biosensing, providing Stelo customers the framework for more personalized content related to glucose levels, activity and sleep.
“In 2024, we implemented our largest US commercial sales force expansion, had two major product launches with Dexcom One+ and Stelo and submitted our G7 15-day product to the FDA,” said Kevin Sayer, Dexcom’s chairman, president and CEO. “As we enter 2025, we look forward to building on these investments as we unlock the next wave of access to Dexcom CGM globally.”
| ___________________________ | ||
1 | Fourth quarter 2024 organic revenue was $1.108 billion and excludes $5.3 million of foreign exchange impact. Fourth quarter 2023 reported revenue included $7.9 million of non-CGM revenue subsequently divested in the following twelve months. | |
2 | Full year 2024 organic revenue is $4.023 billion and excludes $7.2 million of foreign exchange impact and $3.0 million of non-CGM revenue divested in the trailing twelve months. | |
2025 Annual Guidance
Dexcom is reiterating fiscal year 2025 guidance for Revenue, Non-GAAP Gross Profit Margin, Non-GAAP Operating Margin, and establishing Adjusted EBITDA Margin guidance at the following levels:
- Revenue of $4.60 billion (14% growth)
- Non-GAAP Gross Profit Margin of approximately 64% - 65%
- Non-GAAP Operating Margin of approximately 21%
- Adjusted EBITDA Margin of approximately 30%
Fourth Quarter 2024 Financial Results
Revenue: In the fourth quarter of 2024, worldwide revenue grew 8% to $1.114 billion on a reported basis, up from $1.035 billion in the fourth quarter of 2023.
Gross Profit: GAAP gross profit totaled $655.8 million or 58.9% of revenue for the fourth quarter of 2024, compared to $656.6 million or 63.5% of revenue in the fourth quarter of 2023.
Non-GAAP gross profit* totaled $661.2 million or 59.4% of reported revenue for the fourth quarter of 2024, compared to $663.8 million or 64.2% of reported revenue in the fourth quarter of 2023.
Operating Income: GAAP operating income for the fourth quarter of 2024 was $188.9 million or 17.0% of revenue, compared to GAAP operating income of $216.9 million or 21.0% of revenue for the fourth quarter of 2023.
Non-GAAP operating income* for the fourth quarter of 2024 was $209.5 million or 18.8% of reported revenue, compared to non-GAAP operating income of $242.7 million or 23.5% of reported revenue for the fourth quarter of 2023.
Net Income and Diluted Net Income Per Share: GAAP net income was $151.7 million, or $0.38 per diluted share, for the fourth quarter of 2024, compared to GAAP net income of $256.3 million, or $0.62 per diluted share, for the fourth quarter of 2023.
Non-GAAP net income* was $177.8 million, or $0.45 per diluted share, for the fourth quarter of 2024, compared to non-GAAP net income of $202.8 million, or $0.50 per diluted share, for the fourth quarter of 2023. The fourth quarter 2024 non-GAAP net income excludes $8.0 million of amortization of intangible assets, $0.9 million of business transition and other significant items, $13.5 million of intellectual property litigation costs, and $5.5 million of tax adjustments.
Cash and Liquidity: As of December 31, 2024, Dexcom held $2.58 billion in cash, cash equivalents and marketable securities and our revolving credit facility remains undrawn. The cash balance represents significant financial and strategic flexibility as Dexcom continues to expand production capacity and explore new market opportunities.
* See Table E below for a reconciliation of these GAAP and non-GAAP financial measures.
Conference Call
Management will hold a conference call today starting at 4:30 p.m. (Eastern Time). The conference call will be concurrently webcast. The link to the webcast will be available on the Dexcom Investor Relations website at investors.dexcom.com by navigating to “Events and Presentations,” and will be archived for future reference. To listen to the conference call, please dial (888) 414-4585 (U.S./Canada) or (646) 960-0331 (International) and use the confirmation ID “9430114” approximately five minutes prior to the start time.
Statement Regarding Use of Non-GAAP Financial Measures
This press release and the accompanying tables include non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with generally accepted accounting principles in the United States (GAAP), please see the section titled “About Non-GAAP Financial Measures” below as well as the related Table E. We have not reconciled our organic revenue growth, Non-GAAP Gross Profit Margin, Non-GAAP Operating Margin and Adjusted EBITDA Margin estimates for fiscal year 2024 because certain items that impact these figures are uncertain or out of our control and cannot be reasonably predicted. Accordingly, reconciliations of our organic revenue growth, Non-GAAP Gross Profit Margin, Non-GAAP Operating Margin and Adjusted EBITDA Margin estimates are not available without unreasonable effort.
About DexCom, Inc.
Dexcom empowers people to take control of health through innovative biosensing technology. Founded in 1999, Dexcom has pioneered and set the standard in glucose biosensing for more than 25 years. Its technology has transformed how people manage diabetes and track their glucose, helping them feel more in control and live more confidently.
Dexcom. Discover what you’re made of. For more information, visit www.dexcom.com.
Category: IR
Cautionary Statement Regarding Forward Looking Statements
This press release contains forward-looking statements that are not purely historical regarding Dexcom’s or its management’s intentions, beliefs, expectations and strategies for the future, including those related to Dexcom’s future operating results and financial position, including estimated Revenue, Non-GAAP Gross Profit Margin, Non-GAAP Operating Margin, and Adjusted EBITDA Margin for fiscal year 2025, and expected growth rates as compared to the year ended December 31, 2024; future expenses and investments; and potential business opportunities. All forward-looking statements included in this press release are made as of the date of this press release, based on information currently available to Dexcom as of the date hereof. Forward-looking statements deal with future events and are therefore subject to various risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements. The risks and uncertainties that may cause actual results to differ materially from Dexcom’s current expectations are more fully described in the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Dexcom’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings filed with the Securities and Exchange Commission. Except as required by law, Dexcom assumes no obligation to update any such forward-looking statement after the date of this communication or to conform these forward-looking statements to actual results.
Dexcom, Dexcom Clarity, Dexcom Follow, Dexcom One, Dexcom Share, Stelo, and any related logos and design marks are either registered trademarks or trademarks of Dexcom, Inc. in the United States and/or other countries.
DexCom, Inc. Table A Consolidated Balance Sheets (In millions, except par value data) (Unaudited) | |||||||
| December 31, |
| December 31, | ||||
Assets |
|
|
| ||||
Current assets: |
|
|
| ||||
Cash and cash equivalents | $ | 606.1 |
|
| $ | 566.3 |
|
Short-term marketable securities |
| 1,973.3 |
|
|
| 2,157.8 |
|
Accounts receivable, net |
| 1,005.7 |
|
|
| 973.9 |
|
Inventory |
| 542.6 |
|
|
| 559.6 |
|
Prepaid and other current assets |
| 173.7 |
|
|
| 168.3 |
|
Total current assets |
| 4,301.4 |
|
|
| 4,425.9 |
|
Property and equipment, net |
| 1,339.9 |
|
|
| 1,113.1 |
|
Operating lease right-of-use assets |
| 62.8 |
|
|
| 71.4 |
|
Goodwill |
| 22.8 |
|
|
| 25.2 |
|
Intangibles, net |
| 103.4 |
|
|
| 134.5 |
|
Deferred tax assets |
| 481.2 |
|
|
| 419.4 |
|
Other assets |
| 173.0 |
|
|
| 75.0 |
|
Total assets | $ | 6,484.5 |
|
| $ | 6,264.5 |
|
Liabilities and Stockholders’ Equity |
|
|
| ||||
Current liabilities: |
|
|
| ||||
Accounts payable and accrued liabilities | $ | 1,585.1 |
|
| $ | 1,345.5 |
|
Accrued payroll and related expenses |
| 112.0 |
|
|
| 171.0 |
|
Current portion of long-term senior convertible notes |
| 1,204.4 |
|
|
| — |
|
Short-term operating lease liabilities |
| 22.5 |
|
|
| 21.1 |
|
Deferred revenue |
| 8.0 |
|
|
| 18.4 |
|
Total current liabilities |
| 2,932.0 |
|
|
| 1,556.0 |
|
Long-term senior convertible notes |
| 1,237.0 |
|
|
| 2,434.2 |
|
Long-term operating lease liabilities |
| 65.0 |
|
|
| 80.1 |
|
Other long-term liabilities |
| 147.9 |
|
|
| 125.6 |
|
Total liabilities |
| 4,381.9 |
|
|
| 4,195.9 |
|
Commitments and contingencies |
|
|
| ||||
Stockholders’ equity: |
|
|
| ||||
Preferred stock, $0.001 par value, 5.0 million shares authorized; no shares issued and outstanding at December 31, 2024 and December 31, 2023 |
| — |
|
|
| — |
|
Common stock, $0.001 par value, 800.0 million shares authorized; 408.9 million and 390.7 million shares issued and outstanding, respectively, at December 31, 2024; and 407.2 million and 385.4 million shares issued and outstanding, respectively, at December 31, 2023 |
| 0.4 |
|
|
| 0.4 |
|
Additional paid-in capital |
| 2,093.8 |
|
|
| 3,514.6 |
|
Accumulated other comprehensive loss |
| (8.0 | ) |
|
| (16.7 | ) |
Retained earnings |
| 1,597.6 |
|
|
| 1,021.4 |
|
Treasury stock, at cost; 18.2 million shares at December 31, 2024 and 21.8 million shares at December 31, 2023 |
| (1,581.2 | ) |
|
| (2,451.1 | ) |
Total stockholders’ equity |
| 2,102.6 |
|
|
| 2,068.6 |
|
Total liabilities and stockholders’ equity | $ | 6,484.5 |
|
| $ | 6,264.5 |
|
DexCom, Inc. Table B Consolidated Statements of Operations (In millions, except per share data) (Unaudited) | ||||||||||||
| Three Months Ended |
| Twelve Months Ended | |||||||||
| 2024 |
| 2023 |
| 2024 |
| 2023 | |||||
Revenue | $ | 1,113.5 |
| $ | 1,034.5 |
|
| $ | 4,033.0 |
| $ | 3,622.3 |
Cost of sales |
| 457.7 |
|
| 377.9 |
|
|
| 1,594.8 |
|
| 1,333.4 |
Gross profit |
| 655.8 |
|
| 656.6 |
|
|
| 2,438.2 |
|
| 2,288.9 |
Operating expenses: |
|
|
|
|
|
|
| |||||
Research and development |
| 139.5 |
|
| 136.1 |
|
|
| 552.4 |
|
| 505.8 |
Selling, general and administrative |
| 327.4 |
|
| 303.6 |
|
|
| 1,285.8 |
|
| 1,185.4 |
Total operating expenses |
| 466.9 |
|
| 439.7 |
|
|
| 1,838.2 |
|
| 1,691.2 |
Operating income |
| 188.9 |
|
| 216.9 |
|
|
| 600.0 |
|
| 597.7 |
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