Dexcom (Nasdaq:DXCM) today announced preliminary financial results with projections for significant sales growth in 2025.
Shares of DXCM dipped 1.5% to $76.57 in mid-morning trading today.
The San Diego-based continuous glucose monitor (CGM) maker reported preliminary 2024 revenues of $4.032 billion. That marks an 11% increase over 2023. For 2025, Dexcom anticipates total revenue of $4.6 billion, representing expected growth of 14% over 2024. That outlook reflects sensor volume growth driven by increasing CGM access and awareness for people with diabetes. The company also mentioned the rollout of the Stelo over-the-counter CGM, further international expansion and overall market dynamics.
“Dexcom made key strategic investments in 2024 that steadily progressed throughout the year, leaving us well positioned to capitalize on our growth opportunity ahead,” said Kevin Sayer, Dexcom chair, president and CEO. “We plan to build on these investments in 2025 by further enhancing our differentiated product portfolio and advocating for greater CGM access globally.”
More on the Dexcom preliminary financial report
For the fourth quarter, Dexcom reports preliminary revenue of $1.113, good for an 8% increase over the same three-month period in 2023. It anticipates $803 million in U.S. revenue (4% growth) and $310 million in international revenue (17% growth).
Dexcom updated its 2024 non-GAAP gross profit margin and non-GAAP operating margin guidance to 62% and 19%, respectively. That comes in slightly below the consensus forecast, according to BTIG analysts Marie Thibault and Sam Eiber.
It expects a non-cash charge primarily related to inventory damaged in transit to adversely impact its gross margin. It also attributed that to certain build configurations that lowered production yields for the quarter. The company expects a non-GAAP gross profit margin of about 64%-65% in 2025, with a non-GAAP operating margin of 21%.
Thibault and Eiber project $4.642 billion in revenue for Dexcom in 2025, coming in just ahead of the company’s guidance. They note that the company continues to guide at the low-end of a long range plan for revenues between $4.6 billion and $5.1 billion. The analysts say they “would continue to be buyers on any weakness.”
“We believe DXCM is likely conservative on their 2025 sales outlook to start the year as they continue to observe share dynamics in the DME channel and commercial execution efforts,” the analysts wrote. “We think that this Q4 preannouncement and 2025 guide, combined with relatively low investor expectations, may allow DXCM shares to move higher today.”
