Dexcom Q4 Earnings: Expanding Sales, New Products, Margin Pressure And More

Dexcom, Inc. DXCM shares are trading higher premarket on Friday after the company reported its fourth-quarter results after Thursday’s closing bell.

Revenue rose 8% year-over-year to $1.114 billion, beating the analyst consensus estimate of $1.104 billion. U.S. revenue rose by 4%, while international revenue rose by 17% on a reported basis and 19% on an organic basis.

Adjusted gross profit declined to $661.2 million from $663.8 million in the same quarter a year ago, and the corresponding margin shrank to 59.4% from 64.2%.

Adjusted operating income declined to $209.5 million from $242.7 million a year ago quarter, with margin contracted 470 basis points Y/Y to 18.8%.

Adjusted EPS of 45 cents missed the analyst consensus estimate of 50 cents.

As of December 31, 2024, Dexcom had $2.58 billion in cash, cash equivalents and marketable securities, while its revolving credit facility remains undrawn.

Outlook: Dexcom reaffirmed its FY25 guidance for revenue of $4.60 billion (vs. cons. of $4.61 billion), adjusted gross profit margin of around 64%–65%, and adjusted operating margin of 21%.

The company sees adjusted EBITDA margin of approximately 30%.

Kevin Sayer, Dexcom’s chairman, president and CEO, said, “In 2024, we implemented our largest US commercial sales force expansion, had two major product launches with Dexcom One+ and Stelo and submitted our G7 15-day product to the FDA.”

“As we enter 2025, we look forward to building on these investments as we unlock the next wave of access to Dexcom CGM globally.”

Investors can gain exposure to the stock via First Trust Nasdaq Lux Digital Health Solutions ETF EKG and Spinnaker ETF Series Langar Global HealthTech ETF LGHT.

Price Action: DexCom shares are up 2.87% at $86.50 premarket at the last check Friday.

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