DexCom, Inc. (Nasdaq: DXCM) today reported its financial results
as of and for the quarter and fiscal year ended December 31,
2017.
Fourth Quarter 2017 Highlights:
- Revenue grew 29% versus the same
quarter of the prior year to $221.0 million
- International revenue grew 58% versus
the same quarter of the prior year
- Gross profit of $153.5 million or 69%
of revenue
- GAAP net loss of $9.4 million, or $0.11
loss per share which includes an $18.2 million one-time non-cash
tax expense
- Non-GAAP net income of $8.8 million, or
$0.10 earnings per share which excludes an $18.2 million one-time
non-cash tax expense
Full Year 2017 Highlights:
- Revenue grew 25% versus the prior year
to $718.5 million
- International revenue grew 61% versus
the prior year
- Gross profit of $492.1 million or 68%
of revenue
- GAAP net loss of $50.2 million, or
$0.58 loss per share
“2017 was defined by several key accomplishments for DexCom,
highlighted by record revenue, strong Q4 financial results, and
meaningful progress on a number of strategic programs,” said Kevin
Sayer, President and CEO, DexCom. “In the U.S., our commercial team
executed well as we initiated our rollout into the Medicare
population, and our International franchise exceeded expectations.
DexCom also made big strides with our product pipeline, including
our next generation system and with our development partners both
in our intensive and non-intensive initiatives. We believe we are
well positioned for continued success in 2018.”
Fourth Quarter 2017 Financial Results:
Revenue was $221.0 million for the fourth quarter of 2017, an
increase of 29% from the $171.2 million in revenue for the same
quarter of 2016. Gross profit totaled $153.5 million or 69% of
revenue for the fourth quarter of 2017 compared to a gross profit
of $116.7 million or 68% of revenue for the same quarter of
2016.
The GAAP net loss of $9.4 million, or $0.11 loss per share, for
the fourth quarter of 2017 included $55.7 million in net non-cash
expenses, compared to the GAAP net loss of $7.4 million, or $0.09
loss per share, for the same quarter in 2016, which included $34.3
million in non-cash expenses. Non-cash expenses for the fourth
quarter of 2017 of $55.7 million were comprised primarily of
share-based compensation, depreciation and amortization, non-cash
interest expense related to our senior convertible notes, and an
$18.2 million non-cash tax expense related to the reversal of a
non-cash deferred tax benefit related to our senior convertible
notes recorded during the second and third quarters of 2017.
Non-cash expenses for the fourth quarter of 2016 were comprised
primarily of share-based compensation, depreciation and
amortization.
Non-GAAP net income was $8.8 million, or $0.10 earnings per
share for the fourth quarter of 2017, which excludes an $18.2
million non-cash tax expense related to the reversal of a non-cash
tax benefit related to our senior convertible notes recorded during
the second and third quarters of 2017. 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.
Full Year 2017 Financial Results:
Revenue grew to $718.5 million for the fiscal year ended 2017,
an increase of 25% from the $573.3 million in revenue for the same
period of 2016. Gross profit totaled $492.1 million or 68% of
revenue for the fiscal year ended 2017 compared to a gross profit
of $378.4 million or 66% of revenue for the same period of
2016.
The GAAP net loss of $50.2 million or $0.58 per share, for the
full fiscal year 2017 included $139.6 million in net non-cash
expenses, compared to the GAAP net loss of $65.6 million, or $0.78
per share, for the same period in 2016, which included $128.1
million in non-cash expenses. Non-cash expenses for the fiscal year
ended 2017 of $139.6 million were comprised primarily of
share-based compensation, depreciation and amortization, and
non-cash interest expense related to our senior convertible notes.
Non-cash expenses for the same period of 2016 were comprised
primarily of share-based compensation, depreciation and
amortization.
As of December 31, 2017, DexCom had $548.6 million in cash,
cash equivalents and short-term marketable securities.
2018 Annual Guidance:
DexCom reaffirmed the following projections for the full year
2018:
- Revenue of $830 million to $850
million
- Gross profit margins in the range of
65% to 68%
- GAAP operating expenses, excluding
investments into non-intensive programs, to grow 10% versus
2017.
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) 447-0521 (US/Canada) or (847) 413-3238
(International) and use the confirmation number "46267189"
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 annual
report on Form 10-K for the period ended December 31, 2017, as
filed with the Securities and Exchange Commission on
February 27, 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.
DexCom, Inc. Consolidated Balance
Sheets (In millions—except par value data)
December 31,2017
December 31,2016
Assets Current assets: Cash and cash
equivalents $ 441.5 $ 94.5 Short-term marketable securities,
available-for-sale 107.1 29.2 Accounts receivable, net 134.3 101.7
Inventory 45.2 45.4 Prepaid and other current assets 16.6
9.2 Total current assets 744.7 280.0 Property and equipment,
net 145.6 109.4 Goodwill 12.1 11.3 Other assets 1.7 2.1
Total assets $ 904.1 $ 402.8
Liabilities
and stockholders’ equity Current liabilities: Accounts payable
and accrued liabilities $ 87.2 $ 68.1 Accrued payroll and related
expenses 48.5 33.4 Deferred revenue 3.2 0.9 Total
current liabilities 138.9 102.4 Other liabilities 18.2 16.6 Long
term senior convertible notes 327.6 — Total
liabilities 484.7 119.0 Stockholders’ equity: Preferred
stock, $0.001 par value, 5.0 shares authorized; no shares issued
and outstanding at December 31, 2017 and December 31, 2016,
respectively — — Common stock, $0.001 par value, 200.0 authorized;
87.3 and 87.0 issued and outstanding, respectively, at December 31,
2017; and 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 1,093.7 905.7 Accumulated other comprehensive loss
(2.6 ) (1.0 ) Accumulated deficit (671.8 ) (621.0 ) Total
stockholders’ equity 419.4 283.8 Total liabilities
and stockholders’ equity $ 904.1 $ 402.8
DexCom, Inc. Consolidated Statements
of Operations (In millions—except per share data)
Three Months Ended December 31, Twelve Months
Ended December 31, 2017 2016
2017 2016 Revenues $ 221.0 $ 171.2 $ 718.5 $
573.3 Cost of sales 67.5 54.5 226.4 194.9
Gross profit 153.5 116.7 492.1 378.4 Operating expenses
Research and development 48.7 43.7 185.4 156.1 Selling, general and
administrative 92.8 79.1 349.2 286.2
Total operating expenses 141.5 122.8 534.6
442.3 Operating income (loss) 12.0 (6.1 ) (42.5 ) (63.9 )
Other income (expense) (0.1 ) (0.7 ) 3.4 (0.7 ) Interest income 1.4
0.1 3.3 0.4 Interest expense (4.7 ) (0.3 ) (12.8 ) (0.7 ) Income
(loss) before income taxes 8.6 (7.0 ) (48.6 ) (64.9 ) Income tax
expense 18.0 0.4 1.6 0.7 Net loss $
(9.4 ) $ (7.4 ) $ (50.2 ) $ (65.6 ) Basic and diluted net loss per
share $ (0.11 ) $ (0.09 ) $ (0.58 ) $ (0.78 ) Shares used to
compute basic and diluted net loss per share 86.9 84.6
86.3 83.6
DexCom,
Inc. Revenue by Geography (In millions)
(Unaudited) Three Months Ended December
31, Twelve Months Ended December 31, 2017
2016 2017 2016 US revenue $
187.8 $ 150.2 $ 596.2 $ 497.5 Year over year growth 25 % 31 % 20 %
43 % % of total revenue 85 % 88 % 83 % 87 % OUS revenue $
33.2 $ 21.0 $ 122.3 $ 75.8 Year over year growth 58 % 31 % 61 % 39
% % of total revenue 15 % 12 % 17 % 13 % Total revenue $
221.0 $ 171.2 $ 718.5 $ 573.3 Year over year growth 29 % 31 % 25 %
43 %
DexCom, Inc. Revenue by
Component (In millions)
(Unaudited)
Three Months Ended December 31, Twelve
Months Ended December 31, 2017 2016
2017 2016 Sensor & other revenue (1) $
160.6 $ 124.0 $ 515.5 $ 410.1 Year over year growth 30 % 36 % 26 %
44 % % of total revenue 73 % 72 % 72 % 72 % Transmitter
revenue $ 42.4 $ 32.3 $ 144.8 $ 110.8 Year over year growth 31 % 25
% 31 % 49 % % of total revenue 19 % 19 % 20 % 19 % Receiver
revenue $ 18.0 $ 14.9 $ 58.2 $ 52.4 Year over year growth 21 % 7 %
11 % 23 % % of total revenue 8 % 9 % 8 % 9 % Total revenue $
221.0 $ 171.2 $ 718.5 $ 573.3 Year over year growth 29 % 31 % 25 %
43 %
(1) Includes subscription revenue, 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 December
31, Twelve Months Ended December 31, 2017
2016 2017 2016 GAAP net loss $
(9.4 ) $ (7.4 ) $ (50.2 ) $ (65.6 ) Reversal of deferred tax
benefit on senior convertible notes(1) 18.2 — —
— Non-GAAP net income (loss) $ 8.8 $ (7.4 ) $ (50.2 )
$ (65.6 ) GAAP basic and diluted net loss per share $ (0.11
) $ (0.09 ) $ (0.58 ) $ (0.78 ) Reversal of deferred tax benefit on
senior convertible notes(1) 0.21 — — —
Non-GAAP basic and diluted net income (loss) per share $ 0.10 $
(0.09 ) $ (0.58 ) $ (0.78 ) Shares used to compute net
income (loss) per share: Basic 86.9 84.6 86.3 83.6 Diluted 87.6
84.6 86.3 83.6
(1) Non-cash reversal of tax benefit associated with the
convertible senior notes.
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version on businesswire.com: http://www.businesswire.com/news/home/20180227006389/en/
DexCom, Inc.Steven R. PacelliExecutive Vice President, Strategy
and Corporate Development(858) 200-0200www.dexcom.com
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