DexCom has released its second quarter (Q2) financials reporting a 15% growth in revenue to $1bn, up from $871.3m in Q2 2023.
However, it was the company’s annual revenue forecast that raised eyebrows among investors. It revised its full fiscal year guidance and now expects revenue of $4bn-$4.05bn, down from the $4.2bn-$4.35bn forecasted last quarter. The company’s stock was down by more than 38.7% in pre-market trading on 26 July, compared to the market close the day before.
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“While Dexcom advanced several key strategic initiatives in the second quarter, our execution did not meet our high standards,” said Kevin Sayer, Dexcom’s chairman, president and CEO.
Despite reducing its year-end guidance, DexCom reported a 15.7% increase in operating income to $158m. The company experienced a 19% growth in US revenue and a 7% increase in international revenue.
DexCom also launched a share repurchase program for up to $750m, concurrent with Q2 results. The company also reported $3.12 in cash reserves.
DexCom competitor, Abbott, raised its full-year guidance last week. Abbott expects diluted earnings of $4.61 to $4.71 per share for the full fiscal year of 2024, compared to $4.55 to $4.70 diluted earnings per share forecasted last quarter.
The diabetes care market is expected to grow to be worth $33.5bn in 2030, as per the GlobalData market model. The glucose monitoring device segment is estimated to grow to $6.7bn by 2033, with over-the-counter (OTC) continuous glucose monitors (CGMs) set to propel growth in this segment, as per GlobalData analysis.
In March 2024, the US Food and Drug Administration approved the first OTC CGM, Dexcom Stelo Glucose Biosensor System. The device is designed for individuals aged 18 and older who do not use insulin and provides continuous glucose measurements through a wearable sensor and smartphone application.
DexCom’s highlights for the quarter include launching a direct-to-watch feature for the G7 CGM and new automated insulin delivery integrations, especially with Insulet. The company also secured reimbursement from the French Government for DexCom ONE CGM.
