Summary
DexCom, Inc. (DXCM) reported strong performance for the nine months ended September 30, 2020, with total revenue increasing by 34% year-over-year to $1,357.8 million. This growth was primarily driven by higher sales volumes of their disposable glucose sensors. The company demonstrated significant improvements in profitability, with gross profit increasing by 42% and operating income by a substantial margin (not meaningful due to prior period low base). Net income also saw a dramatic increase from $8.4 million to $138.4 million for the nine-month period. This financial strength is supported by a robust balance sheet, with total assets growing to $3,833.2 million from $2,395.0 million at the end of the prior year, and a substantial increase in cash and cash equivalents to $673.5 million. Financially, DexCom raised considerable capital through the issuance of senior convertible notes in May 2020, amounting to $1.21 billion. The company also effectively managed its debt by repurchasing and converting its 2022 Notes. Management anticipates that existing cash, cash flow from operations, and available credit facilities will be sufficient to meet liquidity needs for at least the next 12 months.
Financial Highlights
50 data points| Revenue | $500.90M |
| Cost of Revenue | $160.50M |
| Gross Profit | $340.40M |
| R&D Expenses | $87.70M |
| SG&A Expenses | $158.60M |
| Operating Expenses | $246.30M |
| Operating Income | $94.10M |
| Interest Expense | $24.40M |
| Net Income | $72.20M |
| EPS (Basic) | $0.19 |
| EPS (Diluted) | $0.18 |
| Shares Outstanding (Basic) | 383.20M |
| Shares Outstanding (Diluted) | 398.00M |
Key Highlights
- 1Total revenue for the nine months ended September 30, 2020, increased by 34% to $1,357.8 million, driven by increased sales volume of disposable sensors.
- 2Gross profit margin improved to 65% for the nine months ended September 30, 2020, up from 61% in the prior year period, reflecting revenue growth and manufacturing efficiencies.
- 3Net income for the nine months ended September 30, 2020, surged to $138.4 million from $8.4 million in the same period of 2019.
- 4Diluted Earnings Per Share (EPS) rose significantly to $1.43 for the nine months ended September 30, 2020, compared to $0.09 in the prior year period.
- 5The company's cash and cash equivalents increased substantially to $673.5 million as of September 30, 2020, from $446.2 million at the end of 2019.
- 6DexCom raised $1.19 billion in net proceeds from the issuance of 0.25% Senior Convertible Notes due 2025 in May 2020.
- 7Operating expenses increased, with R&D up 24% and SG&A up 15% for the nine-month period, reflecting continued investment in growth.