Company appoints Quentin Blackford as CFO beginning in
September
DexCom, Inc. (Nasdaq: DXCM) today reported its unaudited
financial results as of and for the quarter ended June 30,
2017.
Second Quarter 2017 Highlights:
- Revenue grew 24% over the second
quarter of 2016 to $170.6 million
- International revenue grew 69% over the
second quarter of 2016
- Gross profit of $117.5 million or 69%
of revenue
- GAAP net income of $2.9 million, or
$0.03 per share
- Non-GAAP net loss of $14.2 million, or
$0.16 per share
“The first half of 2017 has been very positive for DexCom. Our
revenue increased 23% for the first six months of the year, and we
remain on track to achieve our full year targets,” said Kevin
Sayer, President and CEO, DexCom. “New patient interest in DexCom
CGM is robust, fueled by positive reimbursement decisions for both
the Medicare population and in Germany combined with increased
awareness around the world. We believe DexCom CGM should be the
first tool prescribed for people with diabetes and continue to
invest in our pipeline to capitalize on the tremendous opportunity
we see through the end of 2017 and beyond.”
Second Quarter Financial Summary:
Revenue grew to $170.6 million for the second quarter of 2017,
an increase of 24% from the $137.3 million in revenue for the same
quarter in 2016. Gross profit totaled $117.5 million or 69% for the
second quarter of 2017 compared to a gross profit of $85.5 million
or 62% for the same quarter of 2016.
The GAAP net income of $2.9 million, or $0.03 per share, for the
second quarter of 2017 included $19.9 million in net non-cash
expenses, compared to the GAAP net loss of $20.2 million, or $0.24
per share, for the same quarter in 2016, which included $31.5
million in non-cash expenses. Non-cash expenses for the second
quarter of 2017 of $37.0 million were comprised primarily of
share-based compensation, depreciation and amortization, and
non-cash interest expense related to our senior convertible notes,
offset by $17.1 million of non-cash deferred tax benefit related to
our senior convertible notes. Non-cash expenses for the second
quarter of 2016 were comprised primarily of share-based
compensation, depreciation and amortization.
Non-GAAP net loss was $14.2 million, or $0.16 per share for the
second quarter of 2017, which excludes the non-cash deferred tax
benefit 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, 2017, DexCom had $496.6 million in cash,
cash equivalents and short-term marketable securities.
DexCom Appoints New CFO
In conjunction with its earnings release, DexCom announced that
Quentin Blackford has been appointed Chief Financial Officer,
expected to occur on September 1, 2017. Mr. Blackford most recently
served as Executive Vice President and Chief Financial Officer,
Head of Strategy and Corporate Integrity at NuVasive, where he
played a key role through a phase of significant growth and
improvements in profitability since 2009. Prior to NuVasive, he was
employed at Zimmer Holdings, Inc., serving most recently as
Director of Finance and Controller of the Dental Division. Mr.
Blackford obtained his Certified Public Accounting license
(currently inactive) after receiving dual Bachelor of Science
degrees in Accounting and Business Administration from Grace
College.
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 (800) 446-1671 (US/Canada) or (847) 413-3362
(International) and use the confirmation number "44096457"
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
deferred tax benefits related to our senior convertible notes 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 this
item 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
ambulatory 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, 2017, as
filed with the Securities and Exchange Commission on August 1,
2017. 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.
DexCom, Inc. Consolidated Balance Sheets
(In millions—except par value data) June
30, 2017 December 31, 2016 (Unaudited) Assets
Current assets: Cash and cash equivalents $ 395.9 $ 94.5 Short-term
marketable securities, available-for-sale 100.7 29.2 Accounts
receivable, net 101.7 101.7 Inventory 42.8 45.4 Prepaid and other
current assets 15.7 9.2 Total current assets 656.8
280.0 Property and equipment, net 125.0 109.4 Goodwill 11.9 11.3
Other assets 1.9 2.1 Total assets $ 795.6 $
402.8 Liabilities and stockholders’ equity Current
liabilities: Accounts payable and accrued liabilities $ 72.2 $ 68.1
Accrued payroll and related expenses 31.4 33.4 Current portion of
deferred revenue 1.5 0.9 Total current liabilities
105.1 102.4 Other liabilities 16.3 16.6 Long term senior
convertible notes 320.5 — Total liabilities 441.9
119.0 Stockholders’ equity: Preferred stock, $0.001 par
value, 5.0 shares authorized; no shares issued and outstanding at
June 30, 2017 and December 31, 2016, respectively — — Common stock,
$0.001 par value, 200.0 authorized; 86.8 and 86.5 issued and
outstanding, respectively, at June 30, 2017. Common stock, $0.001
par value, 100.0 authorized; 84.9 and 84.6 shares issued and
outstanding, respectively, at December 31, 2016. 0.1 0.1 Additional
paid-in capital 1,015.6 905.7 Accumulated other comprehensive loss
(1.6 ) (1.0 ) Accumulated deficit (660.4 ) (621.0 ) Total
stockholders’ equity 353.7 283.8 Total liabilities
and stockholders’ equity $ 795.6 $ 402.8
DexCom, Inc. Consolidated Statements of
Operations (In millions—except per share data)
(Unaudited) Three Months Ended June
30, Six Months Ended June 30, 2017
2016 2017 2016 Revenues $ 170.6 $ 137.3
$ 312.9 $ 253.5 Cost of sales 53.1 51.8 101.3
92.9 Gross profit 117.5 85.5 211.6 160.6 Operating expenses
Research and development 45.3 36.3 93.4 68.5 Selling, general and
administrative 85.8 69.3 172.2 131.4
Total operating expenses 131.1 105.6 265.6
199.9 Operating loss (13.6 ) (20.1 ) (54.0 ) (39.3 ) Other
income 1.8 — 2.2 — Interest income 0.5 0.1 0.7 0.2 Interest expense
(3.1 ) (0.1 ) (3.6 ) (0.2 ) Loss before income taxes (14.4 ) (20.1
) (54.7 ) (39.3 ) Income tax expense (benefit) (17.3 ) 0.1
(15.9 ) 0.1 Net income (loss) $ 2.9 $ (20.2 ) $ (38.8
) $ (39.4 ) Basic and diluted net income (loss) per share $ 0.03
$ (0.24 ) $ (0.45 ) $ (0.48 ) Shares used to compute basic
net income (loss) per share 86.4 83.6 85.8
82.8 Shares used to compute dilutive net income (loss) per
share 87.4 83.6 85.8 82.8
DexCom, Inc. Revenue by Geography
(In millions) (Unaudited) Three Months
Ended June 30, 2017 2016 US revenue $
140.8 $ 119.7 Year over year growth 18 % 48 % % of total
revenue 83 % 87 % OUS revenue $ 29.7 $ 17.6 Year over year
growth 69 % 42 % % of total revenue 17 % 13 % Total revenue
$ 170.6 $ 137.3 Year over year growth 24 % 47 %
DexCom, Inc. Revenue by Component
(In millions) (Unaudited) Three Months
Ended June 30, 2017 2016 Sensor revenue $
120.7 $ 95.0 Year over year growth 27 % 47 % % of total revenue 71
% 69 % Transmitter revenue $ 34.7 $ 28.3 Year over year
growth 23 % 69 % % of total revenue 20 % 21 % Receiver
revenue $ 14.0 $ 13.1 Year over year growth 7 % 25 % % of total
revenue 8 % 10 % Other revenue(1) $ 1.2 $ 0.9 Total
revenue $ 170.6 $ 137.3 Year over year growth 24 % 47 %
(1) Includes revenue from services, freight, accessories,
etc.
DexCom, Inc. Itemized Reconciliation
Between GAAP and Non-GAAP Net Income (Loss) and Net Income (Loss)
per Share (In millions—except per share data)
(Unaudited) Three Months Ended June
30, Six Months Ended June 30, 2017
2016 2017 2016 GAAP net income (loss) $
2.9 $ (20.2 ) $ (38.8 ) $ (39.4 ) Deferred tax benefit on senior
convertible notes (1) (17.1 ) — (17.1 ) — Non-GAAP
net loss $ (14.2 ) $ (20.2 ) $ (55.9 ) $ (39.4 ) GAAP basic
and diluted net income (loss) per share $ 0.03 $ (0.24 ) $ (0.45 )
$ (0.48 ) Deferred tax benefit on senior convertible notes (1)
(0.20 ) — (0.20 ) — Non-GAAP basic and diluted net
loss per share (2) $ (0.16 ) $ (0.24 ) $ (0.65 ) $ (0.48 )
Shares used to compute net income (loss) per share: Basic 86.4 83.6
85.8 82.8 Diluted 87.4 83.6 85.8 82.8
(1) Non-cash tax benefit associated with the convertible senior
notes.(2) Earnings per share amounts for the three months ended
June 30, 2017 do not add due to rounding.
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DexCom, Inc.Steven R. PacelliExecutive Vice President, Strategy
and Corporate Development(858) 200-0200www.dexcom.com
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