DexCom, Inc. (Nasdaq: DXCM) today reported its unaudited financial
results as of and for the quarter ended June 30, 2018.
Second Quarter 2018 Highlights:
“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:
Conference Call
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.
Common stock, $0.001 par value, 200.0 authorized; 88.7 and 88.4
issued and outstanding, respectively, at June 30, 2018; and 87.3
and 87.0 shares issued and outstanding, respectively, at December
31, 2017
88.8
2018
2017
(1) The sum of the revenue components may not equal
total revenue due to rounding.
(Unaudited)
2017(2)
(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.
2017
2017
(As Adjusted)(1)
(As Adjusted)(1)
88.8
(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) Earnings per share amounts for the three months
ended June 30, 2017 and the six months ended June 30, 2018 do not
add due to rounding.
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