DexCom Shares Slip As Q2 Earnings Miss Estimates, Tightens FY22 Outlook

DexCom Inc's DXCM reported second-quarter revenue grew 17% year-over-year to $696.2 million,+16% on an organic basis, missing the consensus of $698.55 million.

U.S. revenue growth of 11% Y/Y and international revenue growth of 39% Y/Y.

Volume growth and strong new customer additions continue to be the primary driver of revenue growth as awareness of real-time Continuous Glucose Monitoring (CGM) increases.

Adjusted EPS of $0.17 missed the consensus of $0.19.

Gross margin fell by 552 bps to 64.6%. Operating income was $77 million (-23.7% Y/Y), and the margin contracted by 590 bps to 11.1%.

The adjusted operating margin was 14.6%, down by 242 bps.

Adjusted EBITDA increased by 12.1% Y/Y to $175.5 million, and margin contracted by 111 bps to 25.2%

As of June 30, 2022, Dexcom held $2.75 billion in cash, cash equivalents, and marketable securities, and its revolving credit facility remains undrawn.

Kevin Sayer, DexCom's Chairman, President & CEO, commented, "We are excited for the rest of this year, particularly as we implement a broader launch of G7 in the coming week."

FY22 Guidance: DexCom expects revenue of approximately $2.86 billion - $2.91 billion (17-19% growth) compared to prior guidance of $2.82 billion - 2.94 billion, compared to a consensus of $2.92 billion.

The company expects an adjusted gross profit margin of ~65%, adjusted operating margin of ~16%, and Adjusted EBITDA margin of ~25%.

Price Action: DXCM shares are trading lower by 9.70% at $78.55 during the post-market session on Thursday