DexCom Q1 2020 Earnings Report
Key Takeaways
DexCom's first quarter 2020 results showed significant revenue growth driven by increased awareness and customer satisfaction with their G6 CGM technology. The company's response to the COVID-19 pandemic included making CGM systems available for hospital use and initiating a patient assistance program. Dexcom is temporarily suspending its 2020 guidance due to uncertainties related to the COVID-19 pandemic.
Revenue grew 44% year-over-year to $405.1 million.
U.S. revenue increased by 39%, while international revenue grew by 61%.
GAAP operating income was $33.6 million, representing 8.3% of revenue.
The company obtained CE Mark for Dexcom G6 CGM system use during pregnancy and received regulatory approvals in Australia, Japan, and South Korea.
DexCom
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DexCom Revenue by Segment
DexCom Revenue by Geographic Location
Forward Guidance
Dexcom is temporarily suspending its 2020 guidance, which was previously issued on February 13, 2020, due to uncertainties related to the duration and scope of the COVID-19 pandemic.
Positive Outlook
- Shift to telemedicine
- Growing appreciation for Dexcom’s real-time connectivity for virtual diabetes care
- Patient monitoring in the hospital setting
- Making its CGM systems available for use in hospital settings
- New patient assistance program to aid current U.S. customers who have lost insurance
Challenges Ahead
- Uncertainties related to the duration and scope of the COVID-19 pandemic
- Some impact to new patients during the period of broad stay-at-home orders
- Clinicians shift to adopt virtual care models
- Temporarily suspending its 2020 guidance
- Company anticipates some impact to new patients
Revenue & Expenses
Visualization of income flow from segment revenue to net income