Dexcom Reports Preliminary, Unaudited Revenue for the Fourth Quarter and Fiscal Year 2023 and Initial 2024 Outlook
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Insights
The preliminary revenue figures released by DexCom, Inc. indicate a robust growth trajectory, with a year-over-year increase of 26% for the fourth quarter and 24% for the full fiscal year. This performance is particularly notable given the competitive landscape of the medical device sector, where innovation and market penetration are critical drivers of success. The projected revenue for 2024, with an organic growth rate of 16% to 21%, suggests confidence in the company's expansion strategy and product pipeline.
From a financial perspective, the anticipated Non-GAAP Gross Profit Margin of 63-64% and Non-GAAP Operating Margin of around 20% are strong indicators of operational efficiency and cost management. These margins are crucial for investors assessing the company's ability to translate top-line growth into profitability. It is also worth noting the strategic significance of the Stelo glucose sensor submission to the FDA, as it represents DexCom's entry into a new market segment, potentially broadening its customer base and revenue streams.
The submission of the Stelo glucose sensor for FDA review is a strategic move for DexCom, addressing a previously underserved demographic—type 2 diabetics who do not use insulin. This product diversification could catalyze further growth for the company by tapping into a larger portion of the diabetes care market. The sensor's 15-day wear and cash-pay option may enhance user accessibility and adherence, which are common barriers in chronic disease management.
Moreover, DexCom's international market expansion with the Dexcom G7 demonstrates the company's proactive approach to leveraging global opportunities. The ability to successfully penetrate more than 15 international markets is indicative of the company's agility in navigating regulatory landscapes and local market needs. This is essential for sustaining growth in a sector where technological advancements and patient-centric solutions are rapidly evolving.
The diabetes care industry is witnessing a shift towards continuous glucose monitoring systems, which offer significant benefits over traditional blood glucose meters in terms of real-time data and trend analysis. DexCom's performance and strategic outlook reflect an understanding of this shift, with investments in innovation and market expansion aligning with broader healthcare trends towards preventative care and personalized medicine.
The economic implications of products like Stelo extend beyond direct revenue generation. By potentially improving diabetes management for non-insulin users, there could be downstream effects on healthcare costs, including reduced hospitalizations and complications. This aligns with the overarching goal of value-based care, which emphasizes patient outcomes and cost-effectiveness in healthcare delivery.
The company also announced Stelo, its new glucose sensor for people with type 2 diabetes who do not use insulin, has been submitted to the
For fiscal 2023, total preliminary, unaudited revenue is expected to be approximately
“Dexcom had an incredible year in 2023 with the largest expansion of coverage in our company’s history, a successful rollout of Dexcom G7 in the
2024 Outlook
For 2024, Dexcom currently anticipates total revenue of approximately
In addition, Dexcom currently estimates 2024 Non-GAAP Gross Profit Margin and Non-GAAP Operating Margin to be at the following levels:
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Non-GAAP Gross Profit Margin of approximately 63 –
64% -
Non-GAAP Operating Margin of approximately
20%
Dexcom also announced today that Stelo, its new glucose sensor designed specifically for people with type 2 diabetes who do not use insulin, was submitted to the FDA for review in Q4 2023. Stelo will offer 15-day sensor wear, a cash-pay option and a software experience tailored specifically for non-insulin users. The system is expected to launch in the
“Understanding glucose levels is key to unlocking our metabolic health, and Stelo will help users see first-hand how their health is affected by factors such as diet, exercise, sleep and stress,” said Jake Leach, executive vice president and chief operating officer at Dexcom. “Through our expanding product portfolio, Dexcom is defining the future of sensing technology and empowering people to take control of health.”
Fourth Quarter 2023 Financial Results Conference Call
Dexcom will report its audited full fourth quarter and fiscal 2023 financial results on Thursday, February 8, 2024 after the close of market. Management is currently scheduled to host a conference call at 4:30 p.m. (Eastern Time) that day. More details will be provided later.
About DexCom, Inc.
DexCom, Inc. empowers people to take real-time control of health through innovative continuous glucose monitoring (CGM) systems. Headquartered in
Category: IR
Statement Regarding Use of Non-GAAP Financial Measures
This press release includes non-GAAP financial measures. We have not reconciled our organic revenue growth, Non-GAAP Gross Profit Margin and Non-GAAP Operating 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, a reconciliation of organic revenue growth, Non-GAAP Gross Profit Margin and Non-GAAP Operating Margin is not available without unreasonable effort.
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 preliminary, unaudited revenue for the fourth quarter of and the full fiscal year 2023, and estimated total revenue, Non-GAAP Gross Profit Margin, and Non-GAAP Operating Margin for fiscal 2024, expected growth rates as compared to the year ended December 31, 2022, as well as the anticipated launch of Stelo. All forward-looking statements included in this press release are made as of the date of this release, based on information currently available to Dexcom, deal with future events, are subject to various risks and uncertainties, and actual results could differ materially from those anticipated in those 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 Dexcom’s most recent Quarterly Report on Form 10-Q for the period ended September 30, 2023, as filed with the Securities and Exchange Commission on October 26, 2023, and its other reports, each as 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 report or to conform these forward-looking statements to actual results.
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Organic growth excludes non-CGM revenue acquired or divested in the trailing twelve months, as well as the impact of foreign exchange. Assumes divestiture of certain non-CGM assets that accounted for approximately |
Dexcom, Dexcom Clarity, Dexcom Follow, Dexcom One, Dexcom Share, and any related logos and design marks are either registered trademarks or trademarks of Dexcom, Inc. in
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Sean Christensen
Vice President, Finance and Investor Relations
(858) 203-6657
www.dexcom.com
Source: DexCom, Inc.
FAQ
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