DexCom Reports Second Quarter 2018 Financial Results
SAN DIEGO--(BUSINESS WIRE)--Aug 1, 2018--DexCom, Inc. (Nasdaq: DXCM) today reported its unaudited financial results as of and for the quarter ended June 30, 2018.
Second Quarter 2018 Highlights:Revenue grew 42% to $242.5 million versus the same quarter of the prior year US revenue grew 35% versus the same quarter of the prior year International revenue grew 78% on a reported basis versus the same quarter of the prior year GAAP net income of $30.2 million, or $0.34 per share Non-GAAP net loss of $9.2 million, or $0.10 loss per share
“Q2 was a fantastic quarter for DexCom and demonstrates that CGM adoption is increasing significantly,” said Kevin Sayer, DexCom’s President and CEO. “This performance was particularly notable considering we only began launching our revolutionary G6 platform late in the quarter, and we are pleased to be able to raise our full year growth outlook.”
Second Quarter 2018 Financial Results:
Revenue was $242.5 million for the second quarter of 2018, an increase of 42% from the $170.6 million in revenue for the same quarter of 2017. Gross profit totaled $153.6 million or 63% of revenue for the second quarter of 2018 compared to a gross profit of $117.5 million or 69% of revenue for the same quarter of 2017.
GAAP net income was $30.2 million, or $0.34 per share, for the second quarter of 2018 compared to GAAP net income of $2.9 million, or $0.03 per share, for the same quarter of 2017.
Non-GAAP net loss was $9.2 million, or $0.10 loss per share, for the second quarter of 2018, which excludes $42.7 million of income related to investments and $3.3 million of non-cash interest expense related to our senior convertible notes. See the table below entitled “Itemized Reconciliation Between GAAP and Non-GAAP Net Income (Loss) and Net Income (Loss) per Share” for a reconciliation of these GAAP and Non-GAAP financial measures.
As of June 30, 2018, DexCom had $606.1 million in cash, cash equivalents and short-term marketable securities.
2018 Annual Guidance:
DexCom updated its projections for the full year 2018:Revenue of approximately $925 million, versus a prior range of $850 million to $860 million Gross profit margin of approximately 64%, versus the prior range of 65% to 68% GAAP operating expenses, excluding investments into non-intensive programs, to grow approximately 14% versus 2017, versus a prior forecast of 10%.
Management will hold a conference call today starting at 4:30 p.m. (Eastern Time). The conference call will be concurrently webcast. The link to the webcast will be available on the DexCom, Inc. website at www.dexcom.com by navigating to “About Us,” then “Investor Relations,” and then “Events and Presentations,” and will be archived for future reference. To listen to the conference call, please dial (888) 895-5479 (US/Canada) or (847) 619-6250 (International) and use the confirmation number “46267193” approximately five minutes prior to the start time.
Statement regarding use of non-GAAP financial measures
DexCom reports non-GAAP results for net loss and net loss per basic and diluted share in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Our financial measures under GAAP include non-cash interest expense related to our senior convertible notes, non-cash deferred tax benefits related to our senior convertible notes and income related to our equity investment in Tandem Diabetes Care, Inc. as listed in the itemized reconciliation between GAAP and non-GAAP financial measures included in this press release. Management believes that presentation of operating results that excludes these items provides useful supplemental information to investors and facilitates the analysis of our core operating results and comparison of operating results across reporting periods. Management also believes that this supplemental non-GAAP information is therefore useful to investors in analyzing and assessing our past and future operating performance.
These non-GAAP measures may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. We believe that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with U.S. GAAP and that these measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures. We encourage investors to carefully consider our results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand our business.
About DexCom, Inc.
DexCom, Inc., headquartered in San Diego, California, is developing and marketing continuous glucose monitoring systems for use by people with diabetes and by healthcare providers.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements that are not purely historical regarding DexCom’s or its management’s intentions, beliefs, expectations and strategies for the future. All forward-looking statements and reasons why results might differ included in this press release are made as of the date of this release, based on information currently available to DexCom, deal with future events, are subject to various risks and uncertainties, and actual results could differ materially from those anticipated in those forward-looking statements. The risks and uncertainties that may cause actual results to differ materially from DexCom’s current expectations are more fully described in DexCom’s quarterly report on Form 10-Q for the period ended June 30, 2018, as filed with the Securities and Exchange Commission on August 1, 2018. Except as required by law, DexCom assumes no obligation to update any such forward-looking statement after the date of this report or to conform these forward-looking statements to actual results.
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