NASDAQ$DXCM

DexCom Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

DexCom reported strong first quarter results with revenue growth and advancements in CGM technology.

DexCom's first quarter 2020 results showed significant revenue growth driven by increased awareness and customer satisfaction with their G6 CGM technology. The company's response to the COVID-19 pandemic included making CGM systems available for hospital use and initiating a patient assistance program. Dexcom is temporarily suspending its 2020 guidance due to uncertainties related to the COVID-19 pandemic.

  • Revenue grew 44% year-over-year to $405.1 million.
  • U.S. revenue increased by 39%, while international revenue grew by 61%.
  • GAAP operating income was $33.6 million, representing 8.3% of revenue.
  • The company obtained CE Mark for Dexcom G6 CGM system use during pregnancy and received regulatory approvals in Australia, Japan, and South Korea.

Headline financials

Total Revenue

$405M

Previous: $281M+44.4%
EPS (adj)

$0.11

Previous: -$0.01+1200.0%
GAAP Operating Margin

8.3%

No prior period
Capital Expenditures

-$33.2M

Previous: -$39.3M+15.5%
Free Cash Flow

-$13.3M

Previous: -$66.2M+79.9%
Net Income

$19.9M

Previous: -$26.9M+174.0%
Operating Income

$33.6M

Previous: -$14.4M+333.3%
Gross Profit

$257M

Previous: $169M+52.0%
Cash & Equivalents

$585M

Previous: $1.29B-54.5%
Total Assets

$2.45B

Previous: $1.97B+24.0%
Stock-Based Comp

$23.9M

Previous: $25M-4.4%

Revenue & EPS history

DexCom · Revenue · Quarterly

$405M

Q1 2020+44.4%vs Q1 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

Dexcom is temporarily suspending its 2020 guidance, which was previously issued on February 13, 2020, due to uncertainties related to the duration and scope of the COVID-19 pandemic.

Tailwinds

  • Shift to telemedicine
  • Growing appreciation for Dexcom’s real-time connectivity for virtual diabetes care
  • Patient monitoring in the hospital setting
  • Making its CGM systems available for use in hospital settings
  • New patient assistance program to aid current U.S. customers who have lost insurance

Headwinds

  • Uncertainties related to the duration and scope of the COVID-19 pandemic
  • Some impact to new patients during the period of broad stay-at-home orders
  • Clinicians shift to adopt virtual care models
  • Temporarily suspending its 2020 guidance
  • Company anticipates some impact to new patients

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+1.6%

Avg return

Earnings day

+2.0%

Avg return

5 days after

+1.8%

Avg return

30 days after

56%

36 / 64 earnings

Positive

+31.1%

Q2 2018

Best reaction

-42.8%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+9.8%+1.4%+23.8%
Q4 2025+7.6%+11.9%-1.3%
Q3 2025+1.6%-13.1%-6.9%
Q1 2025+16.0%+18.6%+22.1%
Q4 2024+5.9%+6.6%-15.9%
Q3 2024+1.3%-0.3%+0.5%
Q2 2024-42.8%-37.7%-33.8%
Q1 2024-9.8%-7.6%-7.6%
Q4 2023-4.8%-7.6%+6.8%
Q3 2023+5.9%+5.3%+33.9%
Q2 2023+1.3%-6.6%-22.9%
Q1 2023-2.9%-5.5%-7.9%
Q4 2022+7.3%+7.9%-1.9%
Q3 2022+17.8%+16.0%+9.2%
Q2 2022-4.3%+2.9%-1.5%
Q1 2022-1.1%-4.3%-30.0%
Q4 2021-6.1%-6.8%-12.9%
Q3 2021+11.6%+14.5%+6.0%
Q2 2021+12.1%+13.3%+13.2%
Q1 2021-9.3%-12.8%-13.2%
Q4 2020+3.3%+1.2%-10.4%
Q3 2020-16.5%-23.5%-25.2%
Q2 2020+0.9%+2.9%+1.0%
Q1 2020+3.1%+1.9%+8.0%
Q4 2019+15.4%+20.3%-0.8%
Q3 2019+26.8%+33.9%+46.4%
Q2 2019-5.2%-9.1%+9.7%
Q1 2019-0.6%+0.9%+0.2%
Q4 2018-5.9%-4.1%-11.3%
Q3 2018+10.5%+14.2%-1.0%
Q2 2018+31.1%+28.1%+51.8%
Q1 2018+14.2%+16.6%+25.6%
Q4 2017-1.4%+6.6%+3.0%
Q3 2017+6.1%+11.1%+29.0%
Q2 2017+7.1%+6.8%+12.0%
Q1 2017-7.1%-4.3%-16.0%
Q4 2016+2.9%+1.6%+7.3%
Q3 2016-19.6%-20.9%-19.0%
Q2 2016-1.9%-1.5%-1.0%
Q1 2016-5.5%
Q4 2015+1.4%
Q3 2015-3.0%
Q2 2015+9.9%
Q1 2015-0.7%
Q4 2014+0.6%
Q3 2014+15.7%
Q2 2014+10.9%
Q1 2014-1.8%
Q4 2013-3.1%
Q3 2013+16.4%
Q2 2013+18.7%
Q1 2013+10.0%
Q4 2012+9.2%
Q3 2012-1.5%
Q2 2012+2.4%
Q1 2012+2.0%
Q4 2011-3.6%
Q3 2011-16.2%
Q2 2011-17.7%
Q1 2011-1.7%
Q4 2010+5.3%
Q3 2010-22.1%
Q2 2010+5.5%
Q1 2010-9.2%

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