DexCom Reports Third Quarter 2018 Financial Results
SAN DIEGO--(BUSINESS WIRE)--Nov 6, 2018--DexCom, Inc. (Nasdaq: DXCM) today reported its unaudited financial results as of and for the quarter ended September 30, 2018.
Third Quarter 2018 Highlights:Revenue grew 44% on a reported basis to $266.7 million versus the same quarter of the prior year US revenue grew 34% versus the same quarter of the prior year International revenue grew 93% on a reported basis versus the same quarter of the prior year GAAP net income of $46.6 million, or $0.52 per share Non-GAAP net income of $15.1 million, or $0.17 per share
“Dexcom has maintained the strong momentum we have seen all year, with sales up 45% on a constant currency basis,” said Kevin Sayer, Dexcom’s Chairman, President and CEO. “Clearly, our G6 launch has been very well received and leaves us in a strong position for continued growth. We are pleased to again increase our 2018 outlook.”
Third Quarter 2018 Financial Results:
Revenue was $266.7 million for the third quarter of 2018, an increase of 44% from the $184.6 million in revenue for the same quarter of 2017. Gross profit totaled $168.6 million or 63% of revenue for the third quarter of 2018 compared to a gross profit of $127.0 million or 69% of revenue for the same quarter of 2017.
GAAP net income was $46.6 million, or $0.52 per share, for the third quarter of 2018 compared to GAAP net loss of $2.0 million, or $0.02 loss per share, for the same quarter of 2017.
Non-GAAP net income was $15.1 million, or $0.17 per share, for the third quarter of 2018, which excludes $34.9 million of income related to investments and $3.4 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 September 30, 2018, DexCom had $668.7 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 $975 million, versus the prior forecast of $925 million Gross profit margin of approximately 64%, consistent with the company’s most recent outlook Total GAAP operating expenses to increase by approximately 18%, including investments into non-intensive programs, consistent with prior guidance
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) 895-5271 (US/Canada) or (847) 619-6547 (International) and use the confirmation number “46267195″ approximately five minutes prior to the start time.
Statement regarding use of non-GAAP financial measures
DexCom reports non-GAAP results for net income (loss) and net income (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 September 30, 2018, as filed with the Securities and Exchange Commission on November 6, 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.
(1) The sum of the revenue components may not equal total revenue due to rounding.
(1) The sum of the revenue components may not equal total revenue due to rounding. (2) Prior period reporting has been adjusted to conform to current component level reporting. (3) Includes allocated subscription revenue. (4) Includes services, freight, accessories, etc.
(1) The 2017 Non-GAAP presentation was adjusted to include non-cash interest expense to conform to 2018 presentation. (2) Non-cash interest expense represents accretion of the debt discount associated with our 2022 Senior Convertible Notes. (3) Non-cash tax benefit associated with the 2022 Senior Convertible Notes. (4) Income from equity method investments is related to our investment in Tandem Diabetes Care, Inc. (5) Tax-effecting GAAP only items at a 0% tax rate due to being in a position of recording a valuation allowance. (6) Basic and diluted loss per share amounts for the nine months ended September 30, 2017 do not add due to rounding.
View source version on businesswire.com:https://www.businesswire.com/news/home/20181106005890/en/
CONTACT: DexCom, Inc.
Steven R. Pacelli
Executive Vice President, Strategy and Corporate Development
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: HEALTH MEDICAL DEVICES DIABETES MEDICAL SUPPLIES
SOURCE: DexCom, Inc.
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PUB: 11/06/2018 04:01 PM/DISC: 11/06/2018 04:00 PM