Summary
DexCom, Inc. reported a solid third quarter of 2021, with revenues reaching $650.2 million, a significant 30% increase year-over-year. This growth was primarily driven by strong sales volume of their disposable sensors, reflecting continued expansion of their global customer base. The company also demonstrated improved profitability, with gross profit rising 31% to $446.9 million and operating income increasing by 26% to $118.3 million. Despite a slight dip in net income to $70.9 million (down 2%), the company's financial health remains robust, with total assets growing to $4.78 billion and stockholders' equity increasing to $2.14 billion. The company continues to invest heavily in research and development, with R&D expenses up 47% year-over-year, indicating a commitment to future product innovation. Financially, DexCom ended the period with a strong liquidity position, holding $1.44 billion in cash and cash equivalents, and $1.25 billion in short-term marketable securities, totaling $2.70 billion. Cash flow from operations was healthy at $336.7 million for the nine months ended September 30, 2021. The company also managed its debt effectively, with convertible notes outstanding but no borrowings against its revolving credit facility. Overall, the report showcases continued top-line growth supported by operational efficiencies and a strong balance sheet, positioning DexCom favorably for future expansion.
Financial Highlights
51 data points| Revenue | $650.20M |
| Cost of Revenue | $203.30M |
| Gross Profit | $446.90M |
| R&D Expenses | $128.80M |
| SG&A Expenses | $198.50M |
| Operating Expenses | $328.60M |
| Operating Income | $118.30M |
| Interest Expense | $4.60M |
| Net Income | $87.30M |
| EPS (Basic) | $0.23 |
| EPS (Diluted) | $0.21 |
| Shares Outstanding (Basic) | 387.40M |
| Shares Outstanding (Diluted) | 430.30M |
Key Highlights
- 1Revenue increased by 30% year-over-year to $650.2 million for the third quarter of 2021, driven by increased sales volume of disposable sensors.
- 2Gross profit grew by 31% to $446.9 million, and gross profit margin improved to 68.7% from 68.0% in the prior year's quarter.
- 3Operating income increased by 26% to $118.3 million, reflecting strong sales growth and management of operating expenses.
- 4Net income for the third quarter was $70.9 million, a slight decrease of 2% from the prior year, impacted by higher operating expenses and interest expense.
- 5Diluted earnings per share were $0.71, a decrease from $0.73 in the same period last year.
- 6The company maintained a strong liquidity position with $2.70 billion in cash, cash equivalents, and short-term marketable securities as of September 30, 2021.
- 7Research and development expenses significantly increased by 47% year-over-year to $128.8 million, indicating substantial investment in future growth and innovation.