Dexcom reports Q4 and fiscal year 2023 financial results

DexCom, Inc. reported its financial results as of and for the quarter and fiscal year ended December 31, 2023.

“2023 was an incredible year for Dexcom with significantly expanded access, another year of record new customer starts, and growing momentum behind our global rollout of Dexcom G7,” said Kevin Sayer, Dexcom’s chairman, president and CEO. “We are looking forward to another great year in 2024 as we strive to improve the health of significantly more people around the world with Dexcom CGM technology.”

2024 annual guidance
The company is reiterating fiscal year 2024 guidance for Revenue, Non-GAAP Gross Profit Margin and Non-GAAP Operating Margin, and establishing Adjusted EBITDA Margin guidance at the following levels:

• Revenue of approximately $4.15 – 4.35 billion (16 – 21% organic growth)
• Non-GAAP Gross Profit Margin of approximately 63 – 64%
• Non-GAAP Operating Margin of approximately 20%
• Adjusted EBITDA Margin of approximately 29%

Fourth quarter 2023 financial results
Revenue: In the fourth quarter of 2023, worldwide revenue grew 27% to $1.03 billion on a reported basis, up from $815.2 million in the fourth quarter of 2022. Volume growth in conjunction with strong new customer additions continues to be the primary driver of revenue growth as awareness of real-time CGM increases.

Gross profit: GAAP gross profit totaled $656.6 million or 63.5% of revenue for the fourth quarter of 2023, compared to $541.3 million or 66.4% of revenue in the fourth quarter of 2022.

Non-GAAP gross profit* totaled $663.8 million or 64.2% of revenue for the fourth quarter of 2023, compared to $543.7 million or 66.7% of reported revenue in the fourth quarter of 2022.

Operating income: GAAP operating income for the fourth quarter of 2023 was $216.9 million, compared to GAAP operating income of $125.4 million for the fourth quarter of 2022.

Non-GAAP operating income* for the fourth quarter of 2023 was $242.7 million, compared to non-GAAP operating income of $172.1 million for the fourth quarter of 2022.

Net income and diluted net income per share: GAAP net income was $256.3 million, or $0.62 per diluted share, for the fourth quarter of 2023, compared to GAAP net income of $91.8 million, or $0.22 per diluted share, for the same quarter of 2022.

Non-GAAP net income was $202.8 million, or $0.50 per diluted share, for the fourth quarter of 2023, compared to non-GAAP net income of $136.3 million, or $0.34 per diluted share, for the same quarter of 2022. The fourth quarter 2023 non-GAAP net income excludes $10.1 million of amortization of intangible assets, $2.0 million of business transition and related costs, $13.7 million of intellectual property litigation costs, $0.9 million of income from equity investments, and $78.4 million of tax adjustments.

Cash and Liquidity: As of December 31, 2023, Dexcom held $2.72 billion in cash, cash equivalents and marketable securities and our revolving credit facility remains undrawn. The cash balance represents significant financial and strategic flexibility as Dexcom continues to expand production capacity and explore new market opportunities.
MB Bureau