• Worldwide Revenue: $994 million, a growth of 2% on a reported basis and 3% on an organic basis compared to Q3 2023.

• US Revenue: $702 million, a decline of 2% compared to Q3 2023.

• International Revenue: $292 million, a growth of 12% on a reported basis and 16% on an organic basis.

• Gross Profit: $625.9 million, representing 63% of revenue.

• Operating Income: $212 million, or 21.3% of revenue.

• Adjusted EBITDA: $300.1 million, or 30.2% of revenue.

• Net Income: $179.9 million, or $0.45 per share.

• Cash and Cash Equivalents: Approximately $2.5 billion.

• Share Repurchase Program: $750 million executed during the quarter.

• 2024 Revenue Guidance: Maintained at $4.00 to $4.05 billion, representing organic growth of 11% to 13%.

• 2024 Gross Profit Margin Guidance: Approximately 63%.

• 2024 Operating Margin Guidance: Approximately 22%.

• 2024 Adjusted EBITDA Margin Guidance: Approximately 29%.

• Warning! GuruFocus has detected 2 Warning Sign with DXCM.

Release Date: October 24, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• DexCom Inc (NASDAQ:DXCM) reported third quarter organic revenue growth of 3%, reaching the high end of their guidance.

• The company expanded its US sales force, resulting in improved productivity metrics and record levels of new customer starts.

• International revenue grew by 12%, with significant contributions from the expanded availability of G7 and Dexcom One Plus product platforms.

• DexCom Inc (NASDAQ:DXCM) launched its new product, Sello, in the U.S. market, targeting adults with prediabetes or type 2 diabetes not on insulin.

• The company submitted its DexCom G7 15-day CGM system to the FDA, aiming to enhance customer experience and cost efficiency.

Negative Points

• US revenue declined by 2% due to slower new customer starts and a decline in revenue per customer from shifting channel dynamics and higher rebate eligibility.

• The DME channel experienced share loss, although trends stabilized late in the quarter.

• Operating income decreased to 21.3% of revenue from 24.5% in the same quarter of 2023.

• DexCom Inc (NASDAQ:DXCM) incurred a non-cash charge of $24.6 million on inventory related to build configurations not suitable for commercial launch.

• The company is navigating leadership transitions, with the Chief Commercial Officer planning to retire, potentially impacting commercial strategy execution.

Q & A Highlights

Q: Can you provide more color on the progress made in the third quarter, particularly regarding sales force productivity and DME partnerships? A: Kevin Sayer, CEO: The sales organization showed significant improvement as familiarity with territories and physician relationships increased. New patient starts reached record levels, especially in the latter half of August and September. We added 35,000 new prescribers, which sets us up well for future growth. On the DME side, we saw stabilization in September after losing some share earlier in the quarter. We are working to be more channel-agnostic and improve relationships with DME partners.