Summary
DexCom, Inc. reported its third quarter 2017 financial results, showcasing significant year-over-year revenue growth driven by increased sales volume of its continuous glucose monitoring (CGM) systems, particularly disposable sensors. The company has seen substantial improvements in its financial position, including a significant increase in cash and cash equivalents, largely due to a successful convertible senior notes offering. Despite continued operating losses and an accumulated deficit, management believes its current working capital is sufficient to fund operations through at least September 30, 2018. The company is actively managing its balance sheet, evidenced by the issuance of long-term senior convertible notes and maintaining a strong cash position. The increase in operating expenses, particularly in Selling, General, and Administrative, reflects investments in sales and marketing to support product commercialization and growth. Investors should note the company's ongoing R&D investments aimed at developing next-generation CGM products and its strategic collaborations, such as the one with Verily Life Sciences.
Financial Highlights
52 data points| Revenue | $184.60M |
| Cost of Revenue | $57.60M |
| Gross Profit | $127.00M |
| R&D Expenses | $43.30M |
| SG&A Expenses | $84.20M |
| Operating Expenses | $127.50M |
| Operating Income | -$500K |
| Interest Expense | $4.50M |
| Net Income | -$2.00M |
| EPS (Basic) | $-0.01 |
| EPS (Diluted) | $-0.01 |
| Shares Outstanding (Basic) | 346.80M |
| Shares Outstanding (Diluted) | 346.80M |
Key Highlights
- 1Revenue increased by 24.2% to $184.6 million for the three months ended September 30, 2017, compared to $148.6 million in the prior year period.
- 2Gross profit increased by 25.6% to $127.0 million, with a gross margin of 69%, up from 68% in the prior year.
- 3Cash and cash equivalents significantly increased from $94.5 million at December 31, 2016, to $402.1 million at September 30, 2017.
- 4The company raised $389.0 million in net proceeds from the issuance of convertible senior notes in May/June 2017, strengthening its liquidity.
- 5Operating expenses increased due to higher Selling, General, and Administrative costs, primarily driven by increased headcount and marketing expenses.
- 6The company reported a net loss of $2.0 million for the three months ended September 30, 2017, an improvement from a net loss of $18.8 million in the same period last year.
- 7Commitments and contingencies include ongoing patent litigation with AgaMatrix, with no amounts accrued as of September 30, 2017.