Summary
DexCom, Inc. (DXCM) reported strong revenue growth for the nine months ended September 30, 2015, with product revenues increasing by 56% to $269.9 million, driven by increased sales volume of its disposable sensors and durable systems for its G4 PLATINUM and G5 Mobile continuous glucose monitoring (CGM) systems. Despite this significant top-line growth, the company continued to operate at a net loss, which widened to $59.1 million for the nine-month period, compared to $23.7 million in the prior year. This increased net loss was largely attributable to a substantial rise in research and development (R&D) expenses, primarily due to a $36.5 million non-cash expense related to the issuance of stock for a collaboration agreement with Google Life Sciences (GLS), alongside higher share-based compensation and salaries. Financially, DexCom's balance sheet shows a growing asset base, with total assets increasing to $256.7 million from $184.6 million at year-end 2014. This growth is supported by increases in cash and cash equivalents, accounts receivable, and inventory. The company maintains a healthy working capital of $144.9 million as of September 30, 2015, and management believes its current resources are sufficient to fund operations through at least September 30, 2016. The company is actively investing in future growth, as evidenced by the significant increase in R&D spending and the strategic collaboration with GLS, indicating a focus on developing next-generation CGM products.
Financial Highlights
48 data points| Revenue | $104.20M |
| Cost of Revenue | $30.50M |
| Gross Profit | $74.70M |
| R&D Expenses | $64.80M |
| SG&A Expenses | $52.30M |
| Operating Expenses | $117.10M |
| Operating Income | -$42.40M |
| Interest Expense | $100K |
| Net Income | -$42.50M |
| Shares Outstanding (Basic) | 322.00M |
| Shares Outstanding (Diluted) | 322.00M |
Key Highlights
- 1Product revenue surged 56% year-over-year for the first nine months of 2015, reaching $269.9 million, driven by strong sales of G4 PLATINUM and G5 Mobile CGM systems.
- 2Net loss for the nine months ended September 30, 2015, increased to $59.1 million from $23.7 million in the prior year, primarily due to increased R&D expenses.
- 3Research and development expenses saw a significant increase of $61.2 million, largely due to a $36.5 million non-cash charge related to a collaboration with Google Life Sciences (GLS) and increased share-based compensation.
- 4Total assets grew to $256.7 million from $184.6 million at the end of 2014, reflecting growth in cash, receivables, and inventory.
- 5Working capital stood at $144.9 million as of September 30, 2015, with cash, cash equivalents, and marketable securities totaling $113.3 million.
- 6The company entered into a significant collaboration agreement with Google Life Sciences in August 2015 to jointly develop next-generation CGM products, including a $35 million upfront payment (issued in stock).
- 7Management believes its current liquidity is sufficient to fund operations for at least the next 12 months (through September 30, 2016).