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Sep 30, 2020

DexCom Q3 2020 Earnings Report

Dexcom reported strong growth in revenue and operating income, driven by increased awareness of its CGM technology.

Key Takeaways

Dexcom's Q3 2020 results showed significant growth in revenue and operating income compared to the same quarter of the previous year. Revenue increased by 26% to $500.9 million, and GAAP operating income rose to $94.1 million, or 18.8% of revenue. The company also raised its full-year 2020 guidance.

Revenue grew 26% year-over-year to $500.9 million.

U.S. revenue increased by 29%, while international revenue grew by 17%.

GAAP operating income was $94.1 million, representing 18.8% of revenue, a 470 basis point increase from Q3 2019.

The company raised its full-year 2020 revenue guidance to approximately $1.900 billion, representing 29% growth.

Total Revenue
$501M
Previous year: $396M
+26.4%
EPS
$0.24
Previous year: $0.16
+50.0%
Gross margin
68%
Operating margin
18.8%
Gross Profit
$340M
Previous year: $247M
+37.9%
Cash and Equivalents
$674M
Previous year: $396M
+70.2%
Free Cash Flow
$100M
Previous year: $44.8M
+123.7%
Total Assets
$3.83B
Previous year: $2.19B
+75.4%

DexCom

DexCom

DexCom Revenue by Segment

DexCom Revenue by Geographic Location

Forward Guidance

The company is updating guidance for fiscal year 2020 revenue, gross profit, operating margin, and Adjusted EBITDA margin as follows:

Positive Outlook

  • Revenue of approximately $1.900 billion (29% growth)
  • Non-GAAP Gross profit margin to meet or exceed 66%
  • Non-GAAP Operating margin to meet or exceed 16%
  • Adjusted EBITDA margin to meet or exceed 26%

Revenue & Expenses

Visualization of income flow from segment revenue to net income