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Jun 30, 2024

DexCom Q2 2024 Earnings Report

Dexcom's revenue grew, strategic initiatives advanced, but execution fell short of expectations, leading to updated guidance and a share repurchase program announcement.

Key Takeaways

DexCom reported a 15% year-over-year revenue increase to $1.004 billion for Q2 2024. The company launched Direct-to-Watch, secured coverage for Dexcom ONE in France, and advanced pump connectivity. However, execution did not meet expectations, prompting updated fiscal year 2024 guidance and a $750 million share repurchase program.

Revenue increased by 15% year-over-year to $1.004 billion.

U.S. revenue grew by 19%, while international revenue increased by 7%.

GAAP operating income was $158.0 million, representing 15.7% of revenue.

Launched Direct-to-Watch in the U.S. and several international markets.

Total Revenue
$1B
Previous year: $871M
+15.3%
EPS
$0.43
Previous year: $0.34
+26.5%
Gross margin
62.4%
Previous year: 62.7%
-0.5%
Operating margin
15.7%
Previous year: 14.7%
+6.8%
Gross Profit
$627M
Previous year: $546M
+14.7%
Cash and Equivalents
$939M
Previous year: $1.19B
-21.4%
Free Cash Flow
$213M
Previous year: $131M
+62.5%
Total Assets
$6.8B
Previous year: $6.82B
-0.3%

DexCom

DexCom

DexCom Revenue by Segment

DexCom Revenue by Geographic Location

Forward Guidance

Dexcom is updating fiscal year 2024 guidance for Revenue and Non-GAAP Gross Profit Margin, and reiterating guidance for Non-GAAP Operating Margin and Adjusted EBITDA Margin. Third quarter 2024 Revenue of approximately $975 million to $1.00 billion (1 - 3% organic growth).

Positive Outlook

  • Revenue of approximately $4.00 - 4.05 billion (11 - 13% organic growth)
  • Non-GAAP Gross Profit Margin of approximately 63%
  • Non-GAAP Operating Margin of approximately 20%
  • Adjusted EBITDA Margin of approximately 29%
  • Third quarter 2024 Revenue of approximately $975 million to $1.00 billion (1 - 3% organic growth)

Revenue & Expenses

Visualization of income flow from segment revenue to net income