Summary
DexCom, Inc. (DXCM) reported its first quarter 2019 financial results, showcasing significant revenue growth year-over-year, though the company continues to operate at a net loss. Total revenues surged by 52% to $280.5 million, driven by strong sales volume of both disposable sensors and durable systems, indicating continued expansion of its customer base globally. Despite the impressive top-line performance, the company's gross margin saw a slight decrease to 60% from 64% in the prior year's quarter, attributed to evolving channel strategies, product mix, and investments in infrastructure for production capacity expansion. Operating expenses also increased, particularly in Research & Development and Selling, General & Administrative areas, contributing to a wider operating loss of $14.4 million. The net loss for the quarter was $26.9 million, or $(0.30) per share. The company maintains a strong liquidity position with over $1.3 billion in cash, cash equivalents, and marketable securities, providing confidence in its ability to fund operations for at least the next 12 months.
Financial Highlights
49 data points| Revenue | $280.50M |
| Cost of Revenue | $111.70M |
| Gross Profit | $168.80M |
| R&D Expenses | $59.00M |
| SG&A Expenses | $124.20M |
| Operating Expenses | $183.20M |
| Operating Income | -$14.40M |
| Interest Expense | $14.90M |
| Net Income | -$26.90M |
| EPS (Basic) | $-0.07 |
| EPS (Diluted) | $-0.07 |
| Shares Outstanding (Basic) | 361.20M |
| Shares Outstanding (Diluted) | 361.20M |
Key Highlights
- 1Revenue increased by 52% year-over-year to $280.5 million, driven by higher sales volume of CGM systems and sensors.
- 2Gross profit grew to $168.8 million, but the gross margin percentage decreased to 60% from 64% in the prior year period.
- 3Operating loss widened to $14.4 million, compared to $30.7 million in Q1 2018, due to increased R&D and SG&A expenses.
- 4Net loss for the quarter was $26.9 million, or $(0.30) per diluted share, a slight increase from the previous year's net loss of $24.2 million.
- 5Cash, cash equivalents, and marketable securities totaled $1.358 billion as of March 31, 2019, indicating a strong liquidity position.
- 6The company adopted new lease accounting standards (ASC 842) in Q1 2019, resulting in the recognition of operating lease right-of-use assets and liabilities on the balance sheet.
- 7A restructuring plan was announced in February 2019 to transition certain operations to the Philippines, expected to incur approximately $9 million in pre-tax charges primarily in the first half of 2019.