NASDAQ$DXCM

DexCom Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Dexcom reported strong growth in revenue and operating income, driven by increased awareness of its CGM technology.

Dexcom's Q3 2020 results showed significant growth in revenue and operating income compared to the same quarter of the previous year. Revenue increased by 26% to $500.9 million, and GAAP operating income rose to $94.1 million, or 18.8% of revenue. The company also raised its full-year 2020 guidance.

  • Revenue grew 26% year-over-year to $500.9 million.
  • U.S. revenue increased by 29%, while international revenue grew by 17%.
  • GAAP operating income was $94.1 million, representing 18.8% of revenue, a 470 basis point increase from Q3 2019.
  • The company raised its full-year 2020 revenue guidance to approximately $1.900 billion, representing 29% growth.

Headline financials

Total Revenue

$501M

Previous: $396M+26.4%
EPS (adj)

$0.24

Previous: $0.16+50.0%
GAAP Operating Margin

18.8%

No prior period
Capital Expenditures

-$139M

Previous: -$136M-2.1%
Free Cash Flow

-$66.6M

Previous: -$90.1M+26.1%
Net Income

$72.2M

Previous: $45.8M+57.6%
Operating Income

$94.1M

Previous: $56M+68.0%
Gross Profit

$340M

Previous: $247M+37.9%
Cash & Equivalents

$674M

Previous: $396M+70.2%
Total Assets

$3.83B

Previous: $2.19B+75.4%
Stock-Based Comp

$30.7M

Previous: $24.4M+25.8%

Revenue & EPS history

DexCom · Revenue · Quarterly

$501M

Q3 2020+26.4%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

The company is updating guidance for fiscal year 2020 revenue, gross profit, operating margin, and Adjusted EBITDA margin as follows:

Tailwinds

  • Revenue of approximately $1.900 billion (29% growth)
  • Non-GAAP Gross profit margin to meet or exceed 66%
  • Non-GAAP Operating margin to meet or exceed 16%
  • Adjusted EBITDA margin to meet or exceed 26%

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 Q3 2020

Historical avgQ3 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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