01—Abstract
Summary
Summary of the 8-K filed January 8, 2024. Cited figures are marked; the original filing is the authoritative source.
DexCom (DXCM) furnished an 8-K on January 8, 2024, in connection with CEO Kevin Sayer's presentation at the J.P.
Morgan Healthcare Conference, providing preliminary, unaudited results for Q4 and full-year 2023 along with initial 2024 guidance. Fourth-quarter 2023 revenue is expected to be at least $1.030 billiona, up 26% year over year, with U.S. revenue of about $765 million (+26%) and international revenue of about $265 million (+27%). Full-year 2023 revenue is preliminarily estimated at approximately $3.62 billion, up 24% from 2022.
These figures remain subject to finalization ahead of the 10-K, and audited results are scheduled for release on February 8, 2024. For 2024, management anticipates total revenue of approximately $4.15 billion to $4.35 billionb, implying organic growth of roughly 16% to 21%, with a Non-GAAP Gross Profit Margin of about 63% to 64% and a Non-GAAP Operating Margin of about 20%. The outlook reflects increasing CGM access and awareness, international expansion, and the planned introduction of a product for people with type 2 diabetes who do not use insulin.
The company also disclosed that Stelo, a 15-day CGM sensor designed for non-insulin users with a cash-pay option, was submitted to the FDA in Q4 2023 and is expected to launch in the U.S. in summer 2024. For investors, the key takeaways are the strong revenue acceleration in 2023, the guidance implying continued double-digit growth, and the Stelo launch as a potential new addressable market expansion, though the figures are preliminary and the information is furnished rather than filed under Section 18.
02—Key points
Key Highlights
- Q4 2023 preliminary revenue of at least $1.030 billion, up 26% YoY; U.S. about $765M (+26%), international about $265M (+27%)
- FY2023 preliminary revenue of approximately $3.62 billion, up 24% from 2022
- Initial FY2024 total revenue outlook of $4.15B to $4.35B, implying roughly 16%–21% organic growth
- 2024 Non-GAAP Gross Profit Margin guided to about 63%–64% and Non-GAAP Operating Margin to about 20%
- Stelo, a 15-day CGM for non-insulin type 2 diabetes users with cash-pay option, submitted to FDA in Q4 2023; U.S. launch expected summer 2024
- Audited Q4 and FY2023 results scheduled for February 8, 2024, so figures remain subject to change
- Information is furnished under Item 2.02 and not deemed filed for Section 18 purposes
03—Questions
Frequently Asked Questions
How strong was DexCom's revenue growth in 2023?
Preliminary Q4 2023 revenue was at least $1.030 billion, up 26% year over year, and full-year 2023 revenue is estimated at about $3.62 billion, up 24% from 2022. Both U.S. and international segments grew at similar rates in Q4.
What is DexCom's 2024 revenue guidance?
Management expects 2024 total revenue of approximately $4.15 billion to $4.35 billion, representing expected organic growth of about 16% to 21% after excluding about $30 million of divested non-CGM revenue and FX effects.
What is Stelo and when will it launch?
Stelo is a new glucose sensor for people with type 2 diabetes who do not use insulin. It offers 15-day sensor wear, a cash-pay option, and a software experience tailored to non-insulin users. It was submitted to the FDA in Q4 2023 and is expected to launch in the U.S. in summer 2024.
Are these 2023 results final?
No. The fourth-quarter and full-year 2023 figures are preliminary and unaudited and remain subject to finalization in the Form 10-K. DexCom plans to report audited results on February 8, 2024.
What margin levels does DexCom expect in 2024?
DexCom estimates a Non-GAAP Gross Profit Margin of approximately 63% to 64% and a Non-GAAP Operating Margin of approximately 20% for fiscal 2024.
04—Continue