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DXCM · DEXCOM INC

23 filings

10-K

DXCM 10-K Annual Reports

DEXCOM INC - 23 annual reports

Filing record · 2016–202610-K1110-Q328-K134

2025
DEXCOM INC Annual Report, Year Ended Dec 31, 2025
DexCom (DXCM) reported a strong fiscal 2025, with revenue rising 16% to $4.66 billion, gross profit up 15% to $2.80 billion, operating income up 52% to $911.8 million, and net income up 45% to $836.3 million (diluted EPS $2.09, versus $1.42 in 2024). Growth was driven by disposable sensor volume, with roughly 600,000 to 700,000 net new customers added excluding Stelo, partly offset by pricing headwinds from greater rebate eligibility and channel mix. Gross margin slipped to 60.1% from 60.5%, attributed to supply-availability inefficiencies, lower production yields, and replacement costs. Operating cash flow reached $1.44 billion, and cash plus short-term securities ended the year at $2.00 billion after repaying the $1.21 billion 2025 convertible notes at maturity. The filing also flags several headwinds. CMS has added CGMs to the DMEPOS competitive bidding program, with contracting starting in 2027 and payment changes effective in 2028; management expects lower Medicare reimbursement for CGMs from 2028. The company remains under an FDA warning letter issued in March 2025 covering its San Diego and Mesa facilities, and it faces multiple securities class actions and G6/G7 product class actions. Competitive pressure is rising from Abbott, Medtronic (MiniMed), and wellness-focused wearable entrants, and a January 2026 FDA guidance broadened the 'general wellness device' category. The company is also investing heavily in manufacturing, with property and equipment rising to $1.56 billion and a new Ireland facility under construction. Capital allocation remained active: the company repurchased $500 million of stock in 2025 under a $750 million program, leaving $250 million authorized through June 2026. The $1.25 billion 2028 convertible notes remain outstanding, and the $200 million revolving credit facility is undrawn and expires in 2026. Management reports effective internal controls, and Deloitte issued an unqualified opinion. Investors should weigh the strong earnings momentum against the 2028 Medicare pricing reset, regulatory and litigation overhang, and rising competition.
Feb 12, 2026
2024
DEXCOM INC Annual Report, Year Ended Dec 31, 2024
DexCom (DXCM) closed fiscal 2024 with revenue of $4.03 billion, up 11% year over year, driven primarily by higher disposable sensor volume as the worldwide customer base grew by roughly 500,000 to 600,000 net users (excluding Stelo). Gross margin contracted to 60.5% from 63.2%, reflecting pricing headwinds from greater rebate eligibility, unfavorable product and channel mix, higher freight costs, and non-cash inventory charges. Operating income was essentially flat at $600.0 million (up 0.4%) as operating expenses grew 9%, while net income rose 6% to $576.2 million and diluted EPS reached $1.42 versus $1.30. Operating cash flow was strong at $989.5 million, up 32%, supporting continued capital investment in manufacturing (capex of $358.8 million, including new facilities in Malaysia and Athenry, Ireland). Balance sheet and capital allocation were active during the year. Cash, cash equivalents and short-term marketable securities totaled $2.58 billion, and the company repurchased $750 million of stock under its 2024 program. Total convertible debt principal is $2.46 billion, with $1.2 billion (2025 Notes) classified as current due November 2025, which the company may need to address through cash, share settlement, or refinancing. The revolving credit facility ($200 million, undrawn) matures in October 2026. The company reported no outstanding borrowings and was in covenant compliance at year end. Key risks highlighted include G7 manufacturing and inventory challenges that disrupted supply to certain markets, intensifying competition (including Abbott's Libre, Medtronic, and emerging Chinese competitors and adjunctive CGMs gaining Medicare coverage), pricing pressure from payors and rebates, GLP-1 drugs as a potential competitive and complementary force, and ongoing securities class action and derivative litigation filed in late 2024. The Abbott patent dispute was resolved via a royalty-free cross-license settlement in December 2024, removing a significant overhang.
Feb 18, 2025
2023
DEXCOM INC Annual Report, Year Ended Dec 31, 2023
DexCom's FY2023 10-K (filed February 8, 2024) shows a strong year of growth and profitability. Revenue rose 24% to $3.62 billion, gross margin was 63.2% (down from 64.7%), operating income climbed 53% to $597.7 million, and net income rose 59% to $541.5 million (diluted EPS $1.30). Operating cash flow was $748.5 million, and cash plus short-term securities ended the year at $2.72 billion. Disposable sensors and other revenue made up about 90% of total revenue, supporting the recurring-revenue model. Growth was driven by sensor volume from a larger worldwide customer base, partly offset by channel and pricing mix shifts. Distributors accounted for 85% of revenue, and four customers each represented 10% or more of revenue. The balance sheet shows more leverage and capital deployment. Convertible notes now total $2.46 billion principal, following the May 2023 issuance of $1.25 billion of 2028 notes and the repayment of the 2023 notes. Dexcom bought back $500 million of stock under the 2023 ASR and repurchased about $689 million in total during 2023. Inventory and accounts receivable rose sharply, and accrued rebates reached $950.7 million, which makes the rebate estimates an important area to watch. The auditor flagged estimation of pharmacy rebates as a critical audit matter. Capital spending is elevated for manufacturing expansion in Malaysia, Mesa, Arizona and a planned facility in Ireland. The main risks are pricing pressure from payors and distributor consolidation, competition from Abbott's Libre, Medtronic and new entrants, and GLP-1 drugs, which management says are a companion product but which could reduce demand. Ongoing patent litigation with Abbott spans multiple jurisdictions, and management cannot estimate the outcome. Supply constraints, regulatory dependence, and the sales lift expected from the G7 and planned Stelo launch are also key items for investors.
Feb 8, 2024
2022
DEXCOM INC Annual Report, Year Ended Dec 31, 2022
DexCom's FY2022 Form 10-K (filed February 9, 2023) shows a strong year of growth and margin-driven earnings improvement. Revenue rose 19% to $2.91 billion, led by higher disposable sensor volume as the installed base expanded, partly offset by price and channel mix. Gross margin fell to 64.7% from 68.6%, reflecting price, product and channel mix and FX, while operating income rose 47% to $391.2 million and net income rose 57% to $341.2 million. Note that 2021 comparatives were restated for the ASU 2020-06 convertible debt accounting change and the four-for-one stock split, and the 2022 net income benefited from a roughly $52.9 million tax benefit tied to the Verily milestone share payment, which affects comparability. Liquidity remains solid. Cash, cash equivalents and short-term marketable securities totaled $2.46 billion (about 93% held in the U.S.), and operating cash flow was $669.5 million, up 51%. Capital spending of $364.8 million was directed at the Malaysia manufacturing facility and Mesa, Arizona capacity expansion. The company repurchased $557.7 million of stock under an accelerated share repurchase program and has $142.3 million remaining under its $700 million authorization. Debt consists of convertible senior notes: about $772.6 million current (due December 2023) and about $1.2 billion long-term (due November 2025), plus an undrawn $200 million revolver. The filing also highlights material risks for investors. Medicare coverage is expanding to adjunctive CGMs, which introduces a large competitor into the Medicare market, and CMS has proposed broader coverage for CGM. Pricing pressure from payors, concentration of revenue among a few distributors (four customers accounted for 10% or more of revenue, with the largest at 32%), supply-chain constraints on single-source components, and ongoing patent litigation with Abbott are all significant. The G7 received FDA clearance in December 2022, and the company is working toward Medicare and Medicaid coverage for it.
Feb 9, 2023
2021
DEXCOM INC Annual Report, Year Ended Dec 31, 2021
DexCom's FY2021 Form 10-K (filed February 14, 2022) shows a company with strong top-line momentum but a sharp decline in profitability. Revenue rose 27% to $2.45 billion, driven by disposable sensor volume growth across a widening worldwide customer base, and gross margin expanded to 68.6% from 66.4% on manufacturing efficiencies and economies of scale. However, operating income fell 11% to $265.8 million and net income fell 69% to $154.7 million. The decline reflects heavier spending on R&D, sales and marketing, and an $87.1 million charge tied to a regulatory milestone under the Verily collaboration. The prior year's net income was inflated by a $285.5 million tax benefit from releasing a valuation allowance, so the comparison is distorted. Operating cash flow was $442.5 million, down 7%, and the company ended the year with $2.73 billion in cash and short-term marketable securities. The main risks investors should weigh are concentrated distributor exposure, pricing pressure from payors, and dependence on the G6 franchise until the G7 launches. Four distributors each accounted for 10% or more of revenue, and the top distributor alone represented 28%. Management flagged supply constraints at existing facilities, a new Malaysian plant still under construction, and COVID-19 disruptions to supply chains and clinical trials, including delays to the next-generation G7 program. Medicare expanded CGM coverage in December 2021, which could bring in lower-cost competitors. Litigation with Abbott is active in multiple jurisdictions. Debt totals about $2.06 billion in convertible notes, with the 2023 and 2025 maturities as key refinancing or conversion events. Management also noted that the company will adopt ASU 2020-06 in 2022, which will reclassify the notes entirely as liabilities. Overall, the filing describes a company growing revenue quickly and maintaining strong liquidity. Investors will need to judge whether that growth can offset rising operating costs, the timing of the G7 launch, and the risks tied to a concentrated distribution network and a large convertible debt load.
Feb 14, 2022
2020
DEXCOM INC Annual Report, Year Ended Dec 31, 2020
DexCom (DXCM) closed fiscal 2020 with a strong year: total revenue rose 31% to $1,926.7 million, gross margin expanded to 66% from 63%, and operating income reached $299.5 million versus $142.3 million in 2019. Net income of $493.6 million was inflated by a $285.5 million non-cash tax benefit from releasing most of the valuation allowance on deferred tax assets, so investors should focus on operating income and cash flow rather than headline EPS of $5.06 diluted. Operating cash flow rose to $475.6 million, and cash, equivalents and short-term securities reached $2.71 billion, though this was funded partly by a $1.21 billion 0.25% convertible note offering in May 2020. Growth was driven by disposable sensor volume from the G6 system, which now accounts for about 81% of revenue, and by distributor channels, which rose to 75% of revenue. Management is preparing the G7 system, which is smaller and fully disposable, and is building a manufacturing facility in Malaysia. Key risks include pricing pressure from private payors, CMS proposals that could expand Medicare CGM coverage starting April 2021 and possibly lower prices, concentration among four large distributors (each at 10% or more of revenue), COVID-19 supply and trial disruptions, and dilution and refinancing exposure from roughly $2.06 billion in convertible notes. The company has no stock buybacks or dividends planned, and it has $2.06 billion in convertible debt outstanding. Overall, the filing shows a company transitioning from a loss-making growth stage toward sustained profitability, while its valuation depends heavily on continued sensor growth, next-generation product timing, and the outcome of Medicare reimbursement reform.
Feb 11, 2021
2019
DEXCOM INC Annual Report, Year Ended Dec 31, 2019
DexCom's FY2019 10-K shows a company in a strong growth and profitability inflection. Total revenue rose 43% to $1,476.0 million (from $1,031.6 million), driven mainly by disposable sensor volume growth as the G6 system gained adoption, and the company posted its first full-year net income in the period presented: $101.1 million, versus a net loss of $127.1 million in 2018. The 2018 result was distorted by a one-time $217.7 million Verily collaboration charge, so year-over-year operating income swing (from a $186.3 million loss to $142.3 million of operating income) is partly non-recurring. Gross margin compressed modestly to 63% from 64%, reflecting channel strategy shifts, product mix, and capacity expansion costs, while operating cash flow more than doubled to $314.5 million. The balance sheet remains liquidity-rich but more leveraged. Cash, equivalents and short-term marketable securities totaled $1,533.3 million at year-end, against $1,250.0 million of 0.75% convertible senior notes (2022 and 2023 maturities). Interest expense rose to $60.3 million, including non-cash accretion, and the company has a $200.0 million undrawn revolving credit facility. Distributor concentration is notable: three distributors accounted for roughly 39% of 2019 revenue, and the U.S. represented 79% of sales. Key risks investors should weigh include reimbursement and pricing pressure from private payors and consolidation, intense competition from Abbott (FreeStyle Libre) and Medtronic, ongoing patent litigation with AgaMatrix/WaveForm, manufacturing scale-up constraints, and regulatory dependence on FDA classification of the G6 as a Class II iCGM. Dilution from convertible notes is mitigated by hedge and warrant transactions tied to the 2023 notes, though warrant strikes ($198.38) sit within the trading range the company disclosed.
Feb 13, 2020
2018
DEXCOM INC Annual Report, Year Ended Dec 31, 2018
DexCom's FY2018 10-K shows a company in rapid commercial ramp but still deeply unprofitable on a GAAP basis. Total revenue rose 44% to $1,031.6 million (from $718.5 million), driven by growth in the installed base of G6 and G5 Mobile users and in disposable sensor sales. Gross margin slipped to 64% from 68%, reflecting channel mix (distributors were 63% of revenue), product launch costs, and international expansion. Operating loss widened to $186.3 million, largely because of a one-time $217.7 million non-cash collaborative R&D charge tied to the Verily restated collaboration, which was settled with 1.84 million shares. Net loss was $127.1 million, or $1.44 per share, versus $50.2 million in 2017. Partly offsetting this, $80.1 million of income came from the Tandem Diabetes equity stake. The balance sheet was transformed by $1.25 billion of 0.75% convertible notes issued in 2017 and 2018, plus $1.39 billion of cash and short-term securities at year end. Cash rose sharply after the November 2018 notes offering, net of a $218.9 million convertible note hedge and $183.8 million in warrant proceeds. Management states that existing cash and a $200 million revolver are sufficient for at least the next 12 months. The company also repurchased $100 million of stock. Operating cash flow turned positive at $123.2 million, though this was helped by non-cash add-backs. Key investor watch items include the G6's March 2018 de novo authorization and the reimbursement path under Medicare Part B's Therapeutic CGM classification, which remains dependent on local coverage rules. Also important are concentrated distributor exposure (Distributor A 15%, Distributor B 12% of revenue), ongoing AgaMatrix/WaveForm patent litigation, dilution risk from the convertible notes and hedges, and the company's history of operating losses since 1999 with an accumulated deficit of $798.9 million.
Feb 21, 2019
2017
DEXCOM INC Annual Report, Year Ended Dec 31, 2017
DexCom's FY2017 10-K shows a company in rapid commercial scale-up that is still unprofitable but closing the gap. Total revenue rose 25% to $718.5 million (from $573.3 million), driven mainly by growing installed-base sensor sales, which made up about 70% of revenue. Gross margin expanded to 68% from 66%, helped by lower warranty costs after the February 2016 receiver alarm customer notification. Operating loss narrowed to $42.5 million from $63.9 million, and net loss improved to $50.2 million, or $0.58 per share, from $65.6 million. Operating expenses still grew fast, with SG&A up 22% and R&D up 19%, so profitability depends on continued revenue growth outpacing spending. Balance sheet and liquidity strengthened materially. The company raised $389.0 million in net proceeds from 0.75% convertible senior notes due 2022 ($400.0 million principal), repaid its $75.0 million short-term borrowing, and ended the year with $548.6 million in cash and marketable securities against $200.0 million of undrawn revolver capacity. Management states this is sufficient through at least February 27, 2019. Risks to note include the convertible notes' cash-settlement features and potential dilution, a 2017 tax-reform remeasurement of deferred tax assets, and a $761.6 million federal NOL base with a full valuation allowance. The key investment risks are concentrated reimbursement and competition. Medicare began covering Therapeutic CGMs after the G5 Mobile received its non-adjunctive indication, and the seven largest private payors now cover the category, but coverage remains restrictive. Competitors are advancing, including Abbott's FreeStyle Libre (FDA-approved September 2017), Medtronic's Guardian Connect and 670G pump integration, and Senseonics. Distributor concentration is high, with Byram and Cardinal Health representing about 14% and 17% of revenue. Ongoing patent litigation with AgaMatrix and Arbmetrics, plus a planned Mesa, Arizona manufacturing facility expected to start in 2018, are additional items to monitor.
Feb 27, 2018
2016
DEXCOM INC Annual Report, Year Ended Dec 31, 2016
DexCom's fiscal 2016 10-K shows a company still in the investment phase of a growth story. Total revenue rose 43% to $573.3 million (from $402.0 million), driven mainly by growth in the installed base of G4 PLATINUM and G5 Mobile users and the resulting disposable sensor sales, which made up about 70% of revenue. Gross margin held at roughly 66% ($378.4 million gross profit), but operating expenses grew faster, pushing the operating loss to $63.9 million and the net loss to $65.6 million, or $0.78 per share. Accumulated deficit reached $621.0 million, and share-based compensation of $110.8 million is a major non-cash drag on reported results. The most important regulatory and commercial development was the December 2016 FDA approval of a non-adjunctive indication for the G5 Mobile system, which allows patients to dose insulin without confirmatory finger sticks. In January 2017, CMS classified Therapeutic Continuous Glucose Monitors as Medicare Part B durable medical equipment, opening a large potential payor channel. The G4 PLATINUM is excluded from that decision, and the company still depends on private payors, with the seven largest having issued coverage policies. Concentration is significant: distributors Byram and Edgepark accounted for about 17% and 11% of revenue, and the February 2016 audible-alarm customer notification was classified as a Class 1 recall. Liquidity is adequate but thin relative to burn. Operating cash flow was positive at $56.2 million, but capital expenditures of $55.7 million for manufacturing expansion, including a new Mesa, Arizona facility, meant free cash flow was negative. Cash and short-term securities totaled $123.7 million, with $200 million available under a June 2016 credit facility. Management says this is sufficient through February 28, 2018. The company also faces an active patent suit with AgaMatrix and competitive pressure from Medtronic, Abbott, and others, including Medtronic's 670G system.
Feb 28, 2017
2015
DEXCOM INC Annual Report, Year Ended Dec 31, 2015
DexCom's fiscal 2015 10-K shows a company in a rapid commercial ramp, but one that is still deeply unprofitable. Total revenue rose 55% to $402.0 million (from $259.2 million), driven by product revenue of $400.7 million, up 56%. Gross margin held strong at roughly 69% (gross profit of $278.4 million), and the company is approaching a self-funding model: operating cash flow turned positive at $49.0 million, up from $23.6 million. However, operating expenses grew even faster, rising 70% to $335.5 million, so the operating loss widened to $57.1 million from $21.5 million, and net loss reached $57.6 million, or $0.72 per share. Note that about $36.5 million of R&D expense was non-cash, tied to the issuance of shares to Verily under the August 2015 collaboration, and share-based compensation totaled $82.7 million. Excluding these non-cash items, the cash burn profile is considerably better than the headline loss suggests. The balance sheet strengthened, with cash, equivalents, and short-term securities of $115.2 million, working capital of $164.4 million, and stockholders' equity of $221.2 million after equity issuances. Management states this liquidity is sufficient through at least December 31, 2016, though the company has an accumulated deficit of $555.4 million and warns it may need additional financing, which could be dilutive. Revenue concentration is significant: distributors Byram and Edgepark accounted for roughly 18% and 11% of total revenue, respectively. The most important near-term risk is regulatory and product-quality related. On February 23, 2016, DexCom issued a customer notification about a problem with the audible alarms and alerts on its G4 PLATINUM and G5 Mobile receivers, which could cause users to miss severe hypoglycemic or hyperglycemic events. The company is developing a fix, and its financial impact is not yet known. Investors should also weigh the Medicare reimbursement gap, the lack of a national coverage decision, and the dependence on a small number of single-source suppliers.
Feb 23, 2016
2014
DEXCOM INC Annual Report, Year Ended Dec 31, 2014
DexCom's FY2014 10-K shows a company still in early commercialization but with rapidly accelerating top-line growth. Total revenue rose 62% to $259.2 million in 2014 from $160.0 million in 2013, driven primarily by product revenue of $257.1 million (up from $157.1 million) as the G4 PLATINUM system gained traction in the installed base. Gross margin expanded meaningfully, with gross profit reaching $176.3 million (68% of revenue) versus $100.1 million (63%) a year earlier, reflecting the higher-margin G4 mix relative to the SEVEN PLUS. Operating loss narrowed to $21.5 million from $28.9 million, and net loss improved to $22.4 million, or $(0.30) per share, from $29.8 million, or $(0.42) per share. Operating cash flow turned positive at $23.6 million, compared with $2.4 million in 2013. The filing also highlights important risks. Operating expenses rose sharply, with SG&A up 53% to $128.4 million and R&D up 55% to $69.4 million, largely driven by share-based compensation (which totaled $50.0 million in 2014 versus $24.6 million in 2013). Revenue concentration is significant: distributors Byram and Edgepark accounted for roughly 18% and 11% of 2014 revenue, and two customers represented 23% and 12% of receivables. Reimbursement remains a key constraint, as Medicare has not issued a national coverage decision, and the company's products rely on private payor policies, many of which are restrictive. Manufacturing depends on several single-source suppliers, and the company received an FDA warning letter in March 2014 concerning medical device reporting administration. The company also disclosed a settlement with Abbott, a leadership transition to Kevin Sayer as CEO effective January 1, 2015, and an upcoming Share-enabled G4 PLATINUM launch in the U.S. in Q1 2015. Liquidity is adequate but not abundant. Cash, cash equivalents and short-term marketable securities totaled $83.6 million at year-end, working capital was $105.3 million, and the accumulated deficit reached $497.8 million. The company states that resources are sufficient through at least December 31, 2015, while also noting it may need additional financing beyond that horizon, and it has $15.0 million of undrawn revolver capacity under its Silicon Valley Bank and Oxford Finance loan agreement.
Feb 25, 2015
2013
DEXCOM INC Annual Report, Year Ended Dec 31, 2013
DexCom's 2013 10-K shows a company in early commercialization that is narrowing its losses while growing revenue quickly. Total revenue rose 60% to $160.0 million in 2013 from $99.9 million in 2012, driven mainly by product revenue of $157.1 million (up from $93.0 million) after the October 2012 launch of the G4 PLATINUM system. Gross profit more than doubled to $100.1 million, and the net loss narrowed to $29.8 million from $54.5 million, or $(0.42) per share. Operating cash flow turned positive at $2.4 million, compared with a $33.1 million outflow in 2012, though the company still carries an accumulated deficit of $475.4 million and had working capital of $61.0 million and cash plus short-term securities of $54.6 million. The main investor debates are regulatory and reimbursement progress and litigation risk. In February 2014 the FDA approved a pediatric indication for the G4 PLATINUM, which widens the addressable population to children aged two and older. Reimbursement remains a constraint: Medicare has no national coverage decision, and coverage from the seven largest private payors is often restrictive, although six of them have negotiated contracted rates. Concentration is also notable, since two distributors, Byram and Edgepark, generated about 15% and 14% of 2013 revenue. The primary overhang is Abbott's ongoing patent litigation. Abbott has filed a new infringement complaint covering the SEVEN PLUS and G4 PLATINUM, and the case could lead to an injunction if the stay is lifted. No amounts have been accrued. Management believes current resources are sufficient through at least December 31, 2014, but the filing notes that additional financing may be needed to fund commercialization and next-generation development.
Feb 20, 2014
2012
DEXCOM INC Annual Report, Year Ended Dec 31, 2012
DexCom, Inc. reported its 2012 annual results, highlighting significant progress in its continuous glucose monitoring (CGM) technology. The company received FDA approval for its fourth-generation G4 PLATINUM system in October 2012, a key advancement designed for improved accuracy, a sleeker receiver, and better sensor performance. This new system is poised to be a primary revenue driver, with marketing efforts shifting from the older SEVEN PLUS model. The company also expanded its reach by securing CE Mark approval for the G4 system in Europe and other international markets. Financially, DexCom saw a substantial increase in product revenue, reaching $93.0 million in 2012, driven by higher sales volumes and the introduction of the G4 PLATINUM. However, the company continued to incur net losses, with a reported net loss of $54.5 million for the year. Despite ongoing losses, the company's cash position remained stable, and it raised capital through equity offerings. The company is focused on further development, including seeking pediatric indications for its G4 PLATINUM system, and expanding market access through strategic partnerships and reimbursement efforts.
Feb 21, 2013
2011-A2
DEXCOM INC Annual Report (Amendment), Year Ended Dec 31, 2011
This document is not a full annual report. It is Amendment No. 2 on Form 10-K/A for DexCom, Inc. (DXCM) for the fiscal year ended December 31, 2011, and it is an exhibit-only filing. It contains no financial statements, MD&A, risk factors, or business discussion, so it cannot support an analysis of DexCom's 2011 revenue, margins, cash position, or outlook. The original 10-K was filed February 23, 2012, and Amendment No. 1 followed on March 28, 2012. The signature block is dated May 14, 2012, which differs from the May 15, 2012 filing date given in the request. The amendment's purpose is narrow. DexCom re-filed Exhibit 10.26, the Research and Development Agreement with Roche Diagnostics Operations, Inc. dated November 1, 2011, in response to SEC staff comments on its confidential treatment request for portions of that agreement. It also restated Item 15 and the Exhibit Index, and added new CEO and CFO certifications (Exhibits 31.05 and 31.06) under Rule 12b-15. The filing states that no other disclosures were updated or changed. For investors, the main relevant facts are the registration and capital-structure details. DexCom is a large accelerated filer listed on the NASDAQ Global Select Market, with 68,534,954 common shares outstanding as of March 26, 2012. Non-affiliate market value was about $960.5 million as of June 30, 2011. The exhibit list also shows the company's key partnerships, including Roche (the newly re-filed agreement), Animas, Edwards Lifesciences, and DSM PTG. Investors seeking financial performance should review the original 10-K filed February 23, 2012.
May 15, 2012
2011-A
DEXCOM INC Annual Report (Amendment), Year Ended Dec 31, 2011
This 10-K filing from Dexcom, Inc. (DXCM) for the fiscal year ended December 31, 2011, highlights the company's growth trajectory and its strategic focus on expanding product revenue while managing operating losses. The company reported a significant increase in product revenue, reaching approximately $65.9 million, a 64% jump from the previous year, demonstrating strong commercial performance and market adoption. Dexcom's executive compensation strategy for 2011 emphasized conserving cash by favoring equity-based incentives over cash salaries, aiming to align employee interests with long-term stockholder value and support the company's goal of achieving profitability. The filing also details the company's corporate governance structure, board of directors, and executive compensation policies, including details on base salaries, bonus plans, and equity awards, reflecting a pay-for-performance philosophy. The robust board composition, with a majority of independent directors, and the clear committee structures underscore a commitment to sound governance.
Mar 28, 2012
2011
DEXCOM INC Annual Report, Year Ended Dec 31, 2011
DexCom, Inc., in its 2011 10-K filing, reported significant revenue growth driven by its SEVEN PLUS continuous glucose monitoring system. The company is focused on expanding its product offerings and market reach, including development of in-hospital solutions and partnerships for insulin pump integration. Despite strong revenue increases, DexCom continued to incur net losses, underscoring the high R&D and SG&A expenses associated with its growth strategy and the medical device market. Key investor considerations include the company's progress in gaining market acceptance for continuous glucose monitoring, the importance of reimbursement from third-party payors, and the ongoing legal dispute with Abbott Diabetes Care. DexCom's future success hinges on its ability to navigate regulatory pathways, secure broader reimbursement, manage manufacturing scale-up, and continue product innovation in a competitive landscape.
Feb 23, 2012
2010
DEXCOM INC Annual Report, Year Ended Dec 31, 2010
DexCom, Inc. (DXCM) presented its 2010 Form 10-K filing, detailing its progress as a medical device company focused on continuous glucose monitoring (CGM) systems. The company's primary product, the SEVEN PLUS system, is designed for ambulatory use by individuals with diabetes and saw increased sales volume and average selling prices in 2010 compared to 2009. Despite revenue growth, DexCom continued to incur significant operating losses, consistent with its early commercialization stage, with a reported net loss of $55.17 million for the year. The company is actively investing in research and development for next-generation products and exploring the in-hospital market with its GlucoClear system. Key financial and operational highlights include a substantial increase in product revenue to $40.2 million, driven by higher sales of the SEVEN PLUS system. However, the company's operating expenses, particularly in selling, general, and administrative functions, also rose significantly. DexCom secured additional funding through follow-on public offerings, raising approximately $66 million in 2010 to support its ongoing commercialization and development efforts. The company is also navigating significant legal challenges, including a patent infringement lawsuit with Abbott Diabetes Care, which poses a notable risk. Despite the ongoing losses, DexCom is positioning itself for future growth by expanding its sales force and advancing its technology platform.
Mar 3, 2011
2009
DEXCOM INC Annual Report, Year Ended Dec 31, 2009
DexCom's FY2009 10-K shows a company still in early commercialization of its SEVEN PLUS continuous glucose monitor (CGM). Product revenue rose to $18.0 million in 2009 from $8.1 million in 2008, driven by higher volume and pricing, and the company estimates a 37% U.S. CGM market share. Total revenue more than tripled to $29.7 million, but that growth was inflated by $11.7 million of non-recurring-style development grant revenue from the Edwards Lifesciences and Animas collaborations, rather than by product sales alone. Product gross margin was essentially breakeven (a $180,000 loss), and the company still posted a net loss of $53.5 million (EPS of -$1.21), with an accumulated deficit of $291.2 million and stockholders' deficit of $18.4 million. Liquidity is thin relative to burn. Operating cash outflow was $39.4 million in 2009, and year-end cash plus short-term securities was $28.0 million, with working capital of $18.1 million. Management says cash should be sufficient for at least twelve months, helped by a February 2009 offering (about $45.6 million net) and a January 2010 offering (about $33.1 million net). Management also expects operating cash use to rise significantly in coming years. The company has $60 million of 4.75% convertible notes due 2027, of which $39.8 million was outstanding as of March 5, 2010 after exchanges for equity, and these convert at $7.80 per share. Key risks are concentrated. Medicare has not issued a national coverage decision, so reimbursement depends on private payors, several of whom have restrictive policies. Abbott has an ongoing patent infringement suit that could lead to a preliminary injunction against the SEVEN PLUS, which is the company's only commercially approved ambulatory product. The February 2010 FDA post-approval inspection produced a Form 483, and the company is remediating the observations. Single-source suppliers and a single San Diego manufacturing site add further operational risk.
Mar 9, 2010
2008
DEXCOM INC Annual Report, Year Ended Dec 31, 2008
DexCom's FY2008 10-K describes a early-commercialization medical device company developing continuous glucose monitoring (CGM) systems. Revenue remains small: total 2008 revenue was $9.8 million (product revenue $8.1 million plus $1.7 million of development grant revenue), against product cost of sales of $13.4 million, so gross margin was negative at $(5.5) million. Operating loss widened to $52.8 million and net loss was $55.2 million, with an accumulated deficit of $231.4 million. Stockholders' equity turned negative, at a $(38.6) million deficit, and working capital fell to $17.1 million. Cash, cash equivalents and short-term securities were $27.1 million at year-end, and operating cash burn was $37.5 million. The key near-term catalysts are the February 2009 FDA approval of the third-generation system (expected to be branded SEVEN PLUS), with commercial launch planned for Q1 2009, and a February 2009 follow-on equity offering of about 15.99 million shares that raised roughly $45.6 million. The Edwards Lifesciences collaboration (an $13.0 million upfront payment plus up to $23.5 million in milestones) and development agreements with Animas and Insulet add non-dilutive funding and partnership optionality. Management states that existing resources should fund operations through 2009, but ongoing losses and rising cash needs mean further financing is likely. The principal risks for investors are concentrated and substantial. Abbott Diabetes Care has sued for patent infringement, and a preliminary injunction could halt sales of the SEVEN, which is the company's only commercially approved product. Reimbursement remains limited, since there is no Medicare national coverage decision. The company also relies on sole-source suppliers, has had manufacturing scale-up and field-failure issues, and faces a pending FCC MICS band rule change that could require product re-engineering. The $60 million 4.75% convertible notes carry a 7.8 dollar conversion price and create dilution potential, and the FSP APB 14-1 restatement will likely raise reported interest expense.
Mar 5, 2009
2007
DEXCOM INC Annual Report, Year Ended Dec 31, 2007
DexCom's 2007 annual report describes a early-commercialization medical device company focused on continuous glucose monitoring (CGM). Its second-generation SEVEN system, approved by the FDA on May 31, 2007 for up to seven days of continuous use, began commercial launch in Q3 2007 and became the company's only meaningful revenue driver going forward. Revenue reached $4.6 million in 2007, up from $2.2 million in 2006, but cost of sales of $12.7 million produced a negative gross margin of $(8.1) million. Net loss was $45.9 million, with an accumulated deficit of $176.3 million, and management expects operating losses to continue for the foreseeable future as commercialization, clinical development and sales expansion proceed. The balance sheet and liquidity picture is the central investor concern. Cash, cash equivalents and short-term marketable securities totaled $64.3 million at year-end 2007, against working capital of $58.8 million and stockholders' equity of only $7.1 million, down from $56.8 million a year earlier. The drop reflects the $60 million 4.75% convertible senior notes issued in March 2007, which are classified as long-term debt (about $61.0 million on the balance sheet). Management states current resources are sufficient to fund 2008 needs, but it acknowledges that cash used in operations is expected to rise significantly in coming years and that additional financing may be required, potentially dilutive. The company also notes a proposed FASB accounting change that could materially increase non-cash interest expense on the convertible notes. Key risks extend beyond financing. Reimbursement is not yet broad: SEVEN is generally not covered by Medicare or private payors, so patients bear the cost until coverage is established. Management has also disclosed field failures, manufacturing scale-up difficulties with periods of backorder, and a patent infringement lawsuit from Abbott Diabetes Care that is currently stayed pending USPTO reexamination, with an adverse outcome including a preliminary injunction a possibility. The company's FDA labeling is adjunctive rather than a replacement for finger-stick testing, which limits its addressable market and reimbursement prospects. Investors should weigh these against the company's early but growing installed base and its pipeline, including a planned pediatric indication, an in-hospital intravenous sensor, and integration partnerships with Animas (Johnson & Johnson) and Insulet.
Mar 11, 2008
2006
DEXCOM INC Annual Report, Year Ended Dec 31, 2006
DexCom, Inc. filed its 2006 Form 10-K on February 27, 2007, reporting on its early commercialization efforts for its Short-Term Continuous Glucose Monitoring System (STS®). The company received FDA approval for the STS in March 2006 and launched it shortly after. Despite commencing revenue generation, DexCom incurred a significant net loss of $46.6 million for the year, reflecting substantial investments in research and development, sales, marketing, and manufacturing infrastructure. The company is actively working to establish market acceptance, build its sales force, and secure reimbursement from third-party payors, which are critical for future revenue growth. DexCom also faces ongoing challenges including manufacturing scale-up, potential product failures, patent litigation with Abbott Diabetes Care, and the competitive landscape within the diabetes monitoring market.
Feb 27, 2007
2005
DEXCOM INC Annual Report, Year Ended Dec 31, 2005
This 10-K filing from DexCom, Inc. (DXCM) on February 27, 2006, details the company's progress in developing continuous glucose monitoring (CGM) systems. As a development-stage company, DexCom has not yet generated revenue but has invested heavily in research and development for both a short-term (3-day) and a long-term (up to 1-year) CGM system. The company has submitted a Premarket Approval (PMA) application for its short-term system to the FDA and is awaiting a decision. The report highlights the significant market opportunity in diabetes management and the limitations of existing finger-stick glucose monitoring methods, positioning DexCom's technology as a potential solution offering greater convenience and real-time data. The company faces substantial risks, including the uncertainty of FDA approval, intense competition from established medical device manufacturers, potential intellectual property disputes (including a lawsuit filed by Abbott Diabetes Care), and the need for significant future funding. DexCom's financial performance reflects its development stage, with substantial net losses incurred to date. The company's strategy focuses on establishing its technology as a leader in CGM, rapidly bringing products to market, maintaining high quality standards, and building a direct sales and marketing effort. The filing also provides detailed information on clinical trials, manufacturing capabilities, intellectual property, and regulatory challenges.
Feb 27, 2006