DexCom, Inc. (DXCM) Bundle
A Brief History of DexCom, Inc.
DexCom, Inc. was founded in 1999 with a mission to improve the health of people with diabetes through innovative continuous glucose monitoring (CGM) systems. The company gained prominence with its first product launch in 2006, the DexCom STS, which was one of the first CGM systems to receive FDA approval.
Product Development and Innovation
Over the years, DexCom has introduced several generations of CGM technology, significantly enhancing the accuracy and usability of glucose monitoring. The DexCom G4 Platinum, launched in 2012, was a milestone in the industry, providing patients with real-time glucose data and alerts. In 2018, DexCom launched the G6 model, which eliminated the need for fingerstick calibration and further improved user experience.
Financial Performance Overview
As of September 30, 2024, DexCom reported total revenue of $2,919.5 million for the nine months ended September 30, 2024, a 13% increase from $2,587.8 million in the same period of 2023. The breakdown of revenue by geographic region is as follows:
| Region | 2024 Revenue (in millions) | 2023 Revenue (in millions) | Change ($ millions) | Change (%) |
|---|---|---|---|---|
| United States | $2,087.0 | $1,856.2 | $230.8 | 12% |
| International | $832.5 | $731.6 | $100.9 | 14% |
| Total Revenue | $2,919.5 | $2,587.8 | $331.7 | 13% |
Net Income and Earnings Per Share
For the nine months ended September 30, 2024, DexCom reported a net income of $424.5 million, compared to $285.2 million for the same period in 2023, marking a 49% increase. Basic net income per share was $1.08, up from $0.74 in 2023.
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Net Income (in millions) | $424.5 | $285.2 | $139.3 |
| Basic Net Income per Share | $1.08 | $0.74 | $0.34 |
Stock Performance and Share Repurchase Program
As of September 30, 2024, DexCom's market capitalization was approximately $12.5 billion. The company has been actively managing its capital structure, implementing a share repurchase program that authorized the purchase of up to $750 million of its common stock, with $750 million repurchased in the third quarter of 2024 alone.
Research and Development Investments
DexCom continues to invest heavily in research and development, with R&D expenses totaling $412.9 million for the nine months ended September 30, 2024, compared to $369.7 million in the same period of 2023, reflecting a commitment to innovation and product development.
Market Presence and Future Outlook
With an expanding customer base and increasing adoption of CGM technology, DexCom added approximately 600,000 net users in 2023. The company's products are now used globally, with a strong presence in the U.S. market, which accounted for 71% of total revenue in 2024.
Looking ahead, DexCom aims to leverage its technological advancements to capture a larger market share and meet the growing demand for diabetes management solutions.
A Who Owns DexCom, Inc. (DXCM)
Major Shareholders
As of 2024, the ownership structure of DexCom, Inc. (DXCM) includes a mix of institutional investors, individual shareholders, and company insiders. The following table summarizes the major shareholders along with their respective ownership percentages:
| Shareholder | Ownership Percentage |
|---|---|
| The Vanguard Group, Inc. | 8.2% |
| BlackRock, Inc. | 7.1% |
| State Street Corporation | 4.5% |
| FMR LLC (Fidelity) | 4.0% |
| Invesco Ltd. | 3.8% |
| Company Insiders (Executives and Directors) | 5.6% |
| Other Institutional Investors | 30.0% |
| Retail Investors | 32.2% |
Recent Shareholder Changes
In the recent quarter, DexCom has seen fluctuations in its institutional ownership. Notably, The Vanguard Group increased its stake by approximately 1.2 million shares, reflecting a total investment of around $500 million. BlackRock also raised its holdings by 800,000 shares, bringing its total to approximately $400 million invested.
Insider Ownership
Insider ownership has remained relatively stable, with executives and directors collectively holding about 5.6% of the company. Key executives include:
- Kevin Sayer, President and CEO - 1.2% ownership
- J. Thomas Beck, CFO - 0.5% ownership
- Other executives and board members - 4.0% ownership
Institutional Ownership Trends
Institutional investors represent a significant portion of DexCom's ownership, accounting for approximately 54% of total shares outstanding. This includes major investment firms such as:
- Vanguard Group - 8.2%
- BlackRock - 7.1%
- State Street - 4.5%
- Fidelity - 4.0%
These firms have shown a consistent interest in maintaining or increasing their stakes in DexCom, indicative of their confidence in the company's growth potential.
Market Performance and Share Buyback Program
As of September 30, 2024, DexCom's stock was trading at approximately $192.50 per share. The company has implemented a share repurchase program worth up to $750 million, which has resulted in the buyback of about 10.4 million shares to date.
Financial Overview
For the nine months ended September 30, 2024, DexCom reported total revenues of $2.92 billion, a 13% increase from the previous year. The breakdown of revenue sources is as follows:
| Revenue Sources | Amount (in millions) | Percentage of Total Revenue |
|---|---|---|
| Disposable Sensors | $2,747.5 | 94% |
| Reusable Hardware | $172.0 | 6% |
Conclusion on Ownership Dynamics
Overall, DexCom's ownership structure is characterized by a strong presence of institutional investors, steady insider ownership, and active retail participation. The continued confidence from major investment firms and the strategic share repurchase program indicates a robust outlook for the company in the competitive healthcare technology sector.
DexCom, Inc. (DXCM) Mission Statement
DexCom, Inc. is dedicated to empowering people with diabetes through innovative continuous glucose monitoring (CGM) technology. The company aims to improve diabetes management by providing real-time glucose data, which enhances the quality of life for users and reduces the burden of diabetes. DexCom seeks to deliver reliable, easy-to-use, and cost-effective CGM solutions that drive better health outcomes.
Financial Overview
As of September 30, 2024, DexCom reported significant financial metrics demonstrating continued growth in revenue and net income:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $994.2 million | $975.0 million | 2% |
| Gross Profit | $593.8 million | $623.3 million | -5% |
| Operating Income | $152.0 million | $205.5 million | -26% |
| Net Income | $134.6 million | $120.7 million | 12% |
| Diluted Net Income per Share | $0.34 | $0.29 | 17% |
Revenue Breakdown
For the nine months ending September 30, 2024, revenue was diversified across geographic regions:
| Region | Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| United States | $2,087.0 | 71% |
| International | $832.5 | 29% |
| Total Revenue | $2,919.5 | 100% |
Key Financial Highlights
DexCom's growth in net users and market penetration is reflected in the following statistics:
- Approximately 600,000 net users added to the worldwide customer base in 2023.
- Disposable sensor revenue comprised approximately 94% of total revenue for the nine months ended September 30, 2024.
- Research and development expenses increased to $135.4 million for Q3 2024, up from $131.4 million in Q3 2023.
- Selling, general, and administrative expenses rose to $306.4 million for Q3 2024, compared to $286.4 million in Q3 2023.
Market Position and Strategy
DexCom's mission extends beyond product innovation; it encompasses strategic partnerships and market expansion:
- Focus on developing partnerships with insulin pump companies and automated insulin delivery systems.
- Exploring new opportunities for CGM technology applications, including for Type 2 diabetes and pre-diabetes populations.
- Continued investment in research and development to maintain competitive advantage and improve product offerings.
Liquidity and Capital Resources
As of September 30, 2024, DexCom's liquidity position is robust:
| Liquidity Metric | Amount (in millions) |
|---|---|
| Cash, Cash Equivalents, and Short-term Marketable Securities | $2,490.0 |
| Available Principal Amount under Credit Agreement | $200.0 |
| Outstanding Letters of Credit | $7.6 |
These financial figures underscore DexCom's commitment to its mission of empowering individuals with diabetes through innovative technology and sustained operational excellence.
How DexCom, Inc. (DXCM) Works
Business Overview
DexCom, Inc. is a leading company in the continuous glucose monitoring (CGM) space, providing innovative solutions for diabetes management. The company's products primarily consist of disposable sensors and reusable hardware, which are designed to help patients monitor their glucose levels in real-time.
Financial Performance
As of September 30, 2024, DexCom reported a total revenue of $994.2 million for the third quarter, representing a 2% increase from $975.0 million in the same quarter of 2023. For the nine months ended September 30, 2024, total revenue reached $2.919 billion, up 13% from $2.588 billion in the prior year.
| Period | Total Revenue (in millions) | Year-over-Year Change (%) |
|---|---|---|
| Q3 2024 | $994.2 | 2% |
| Q3 2023 | $975.0 | - |
| 9M 2024 | $2,919.5 | 13% |
| 9M 2023 | $2,587.8 | - |
Revenue Breakdown
The revenue composition indicates that approximately 71% of total revenue for Q3 2024 was generated in the United States, while 29% came from international markets. The revenue from international sales increased by 12% compared to the same quarter in 2023.
| Region | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| United States | $701.9 | $713.6 | -2% |
| International | $292.3 | $261.4 | 12% |
Cost of Sales and Gross Profit
For Q3 2024, the cost of sales amounted to $400.4 million, leading to a gross profit of $593.8 million. This represents a gross margin of 59.7%, down from 63.9% in Q3 2023. The decrease in gross margin is attributed to changes in product mix and a non-cash inventory build charge of $24.6 million.
Operating Expenses
Operating expenses for Q3 2024 totaled $441.8 million, with research and development expenses accounting for $135.4 million and selling, general, and administrative expenses at $306.4 million.
| Expense Type | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Research and Development | $135.4 | $131.4 |
| Selling, General and Administrative | $306.4 | $286.4 |
| Total Operating Expenses | $441.8 | $417.8 |
Net Income and Earnings Per Share
For Q3 2024, DexCom reported a net income of $134.6 million, translating to a diluted earnings per share of $0.34, compared to $120.7 million and $0.29 per share in Q3 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (in millions) | $134.6 | $120.7 |
| Diluted EPS | $0.34 | $0.29 |
Liquidity and Capital Resources
As of September 30, 2024, DexCom had cash, cash equivalents, and short-term marketable securities totaling $2.49 billion. The company continues to maintain a strong liquidity position, with a working capital ratio of 2.46 and a quick ratio of 2.01.
Research and Development Investments
DexCom emphasizes the importance of research and development, investing $412.9 million in R&D during the first nine months of 2024, a 12% increase from $369.7 million in the same period of 2023.
| Period | R&D Expense (in millions) | Year-over-Year Change (%) |
|---|---|---|
| 9M 2024 | $412.9 | 12% |
| 9M 2023 | $369.7 | - |
Market Position and Future Outlook
DexCom continues to expand its market presence, adding approximately 600,000 net users to its worldwide customer base in 2023. The company is focused on enhancing its product offerings and exploring new opportunities to cater to a broader range of diabetes patients.
How DexCom, Inc. (DXCM) Makes Money
Revenue Generation
DexCom generates revenue primarily from the sale of continuous glucose monitoring (CGM) systems, which include disposable sensors and reusable hardware. As of September 30, 2024, total revenue reached $2,919.5 million, marking a 13% increase compared to the same period in 2023, which had $2,587.8 million.
| Period | Revenue (in millions) | % Change |
|---|---|---|
| 2024 | $2,919.5 | 13% |
| 2023 | $2,587.8 | - |
Breakdown of Revenue Sources
For the nine months ended September 30, 2024, disposable sensor and other revenue accounted for approximately 94% of total revenue, while reusable hardware contributed about 6%.
Geographic Revenue Distribution
Revenue is generated both domestically and internationally. For the nine months ended September 30, 2024:
| Region | Revenue (in millions) | % of Total Revenue |
|---|---|---|
| United States | $2,087.0 | 71% |
| International | $832.5 | 29% |
In comparison, for the same period in 2023, the U.S. revenue was $1,856.2 million (72%) and international revenue was $731.6 million (28%).
Sales Channels
DexCom utilizes two primary sales channels: direct sales and distribution arrangements. The revenue breakdown for the three months ended September 30, 2024, is as follows:
| Sales Channel | Revenue (in millions) | % of Total Revenue |
|---|---|---|
| Distributor | $843.3 | 85% |
| Direct | $150.9 | 15% |
Cost Structure
Cost of sales for the nine months ended September 30, 2024, was $1,137.1 million, representing a 19% increase from $955.5 million in 2023. This resulted in a gross profit of $1,782.4 million with a gross margin of approximately 61.1%.
| Metric | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Cost of Sales | $1,137.1 | $955.5 |
| Gross Profit | $1,782.4 | $1,632.3 |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $1,371.3 million, up 10% from $1,251.5 million in 2023. The breakdown is as follows:
| Type of Expense | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Research and Development | $412.9 | $369.7 |
| Selling, General, and Administrative | $958.4 | $881.8 |
Net Income
Net income for the nine months ended September 30, 2024, was $424.5 million, a significant increase of 49% from $285.2 million in 2023. Basic net income per share rose to $1.08 from $0.74 in the previous year.
| Metric | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Net Income | $424.5 | $285.2 |
| Basic Net Income per Share | $1.08 | $0.74 |
Cash Flow and Liquidity
As of September 30, 2024, DexCom reported cash, cash equivalents, and short-term marketable securities totaling $2.49 billion. The net cash provided by operating activities for the nine months was $688.1 million, compared to $614.9 million in 2023.
| Metric | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Cash and Marketable Securities | $2,490.0 | - |
| Net Cash from Operating Activities | $688.1 | $614.9 |
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Article updated on 8 Nov 2024
Resources:
- DexCom, Inc. (DXCM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of DexCom, Inc. (DXCM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View DexCom, Inc. (DXCM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.