(Commission File Number) | (IRS Employer Identification No.) | |||
(Address of Principal Executive Offices) | (Zip Code) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||
ITEM 2.02. | RESULTS OF OPERATIONS AND FINANCIAL CONDITION. |
ITEM 9.01. | FINANCIAL STATEMENTS AND EXHIBITS. |
Number | Description | |
104 | Cover Page Interactive Data File (formatted as Inline XBRL) |
DEXCOM, INC. | ||
By: | /s/ STEVEN R. PACELLI Steven R. Pacelli Executive Vice President, Strategy and Corporate Development |
• | Revenue grew 49% versus the same quarter of the prior year to $396.3 million |
• | U.S. revenue growth of 53% and international revenue growth of 36% |
• | GAAP operating income of $56.0 million or 14% of revenue, an increase of 890 basis points compared to the third quarter of 2018. Non-GAAP operating income* of $59.1 million or 15% of revenue, an increase of 940 basis points over the third quarter of 2018. |
• | 3-Year COMISAIR1 study results continued to demonstrate the value proposition of Dexcom’s real-time CGM: |
◦ | Significant improvements to A1C and time in range for Dexcom CGM subgroups regardless of one’s method of insulin delivery |
◦ | Time in range increased by more than 20% for CGM use in conjunction with both MDI and pump cohorts, nearly 5 hours per day of additional glycemic control |
• | Revenue of $1.425 billion to $1.450 billion (38% - 41% growth) compared to previous expectations of $1.325 billion to $1.375 billion (28% - 33% growth) |
• | Gross profit margin of approximately 63% compared to previous expectations of 64% to 65% |
• | Non-GAAP operating margin of approximately 9% versus previous expectations of 7% |
• | Non-GAAP adjusted EBITDA margin of approximately 19.5% versus previous expectations of 18.5% |
September 30, 2019 | December 31, 2018 | ||||||
Assets | (Unaudited) | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 395.6 | $ | 1,137.0 | |||
Short-term marketable securities | 1,034.3 | 248.6 | |||||
Accounts receivable, net | 234.9 | 226.7 | |||||
Inventory | 120.4 | 70.7 | |||||
Prepaid and other current assets | 30.5 | 16.5 | |||||
Total current assets | 1,815.7 | 1,699.5 | |||||
Property and equipment, net | 301.0 | 183.1 | |||||
Operating lease right-of-use assets | 34.6 | — | |||||
Goodwill | 18.4 | 18.7 | |||||
Other assets | 16.0 | 14.7 | |||||
Total assets | $ | 2,185.7 | $ | 1,916.0 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 232.4 | $ | 147.1 | |||
Accrued payroll and related expenses | 70.9 | 72.4 | |||||
Operating lease liabilities, current portion | 14.8 | — | |||||
Deferred revenue | 4.3 | 2.9 | |||||
Total current liabilities | 322.4 | 222.4 | |||||
Long-term senior convertible notes | 1,047.1 | 1,010.3 | |||||
Operating lease liabilities, net of current portion | 34.3 | — | |||||
Other long-term liabilities | 17.6 | 20.0 | |||||
Total liabilities | 1,421.4 | 1,252.7 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Preferred stock, $0.001 par value, 5.0 million shares authorized; no shares issued and outstanding at September 30, 2019 and December 31, 2018 | — | — | |||||
Common stock, $0.001 par value, 200.0 million shares authorized; 92.3 million and 91.5 million shares issued and outstanding, respectively, at September 30, 2019; and 91.1 million and 90.0 million shares issued and outstanding, respectively, at December 31, 2018 | 0.1 | 0.1 | |||||
Additional paid-in capital | 1,651.6 | 1,560.6 | |||||
Accumulated other comprehensive income | 1.0 | 1.5 | |||||
Accumulated deficit | (788.4 | ) | (798.9 | ) | |||
Treasury stock, at cost; 0.8 million shares at September 30, 2019 and December 31, 2018 | (100.0 | ) | (100.0 | ) | |||
Total stockholders’ equity | 764.3 | 663.3 | |||||
Total liabilities and stockholders’ equity | $ | 2,185.7 | $ | 1,916.0 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues | $ | 396.3 | $ | 266.7 | $ | 1,013.2 | $ | 693.6 | |||||||
Cost of sales | 149.4 | 98.1 | 391.0 | 252.5 | |||||||||||
Gross profit | 246.9 | 168.6 | 622.2 | 441.1 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 66.7 | 50.1 | 194.7 | 142.1 | |||||||||||
Selling, general and administrative | 124.2 | 104.6 | 386.7 | 320.7 | |||||||||||
Total operating expenses | 190.9 | 154.7 | 581.4 | 462.8 | |||||||||||
Operating income (loss) | 56.0 | 13.9 | 40.8 | (21.7 | ) | ||||||||||
Interest expense | (15.1 | ) | (4.9 | ) | (45.0 | ) | (14.5 | ) | |||||||
Income (loss) from equity investments | — | 34.9 | (4.2 | ) | 85.0 | ||||||||||
Interest and other income, net | 4.9 | 0.9 | 18.3 | 1.6 | |||||||||||
Income before income taxes | 45.8 | 44.8 | 9.9 | 50.4 | |||||||||||
Income tax expense (benefit) | — | (1.8 | ) | 1.5 | (2.2 | ) | |||||||||
Net income | $ | 45.8 | $ | 46.6 | $ | 8.4 | $ | 52.6 | |||||||
Basic net income per share | $ | 0.50 | $ | 0.53 | $ | 0.09 | $ | 0.60 | |||||||
Shares used to compute basic net income per share | 91.3 | 88.5 | 90.9 | 88.0 | |||||||||||
Diluted net income per share | $ | 0.50 | $ | 0.52 | $ | 0.09 | $ | 0.59 | |||||||
Shares used to compute diluted net income per share | 92.5 | 90.3 | 92.2 | 89.3 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
U.S. revenue | $ | 308.8 | $ | 202.4 | $ | 785.6 | $ | 537.4 | |||||||
Year over year growth | 53 | % | 34 | % | 46 | % | 32 | % | |||||||
% of total revenue | 78 | % | 76 | % | 78 | % | 77 | % | |||||||
International revenue | $ | 87.5 | $ | 64.3 | $ | 227.6 | $ | 156.2 | |||||||
Year over year growth | 36 | % | 93 | % | 46 | % | 75 | % | |||||||
% of total revenue | 22 | % | 24 | % | 22 | % | 23 | % | |||||||
Total revenue (1) | $ | 396.3 | $ | 266.7 | $ | 1,013.2 | $ | 693.6 | |||||||
Year over year growth | 49 | % | 44 | % | 46 | % | 39 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Sensor and other revenue(2) (3) | $ | 317.2 | $ | 194.0 | $ | 789.5 | $ | 505.3 | |||||||
Year over year growth | 64 | % | 47 | % | 56 | % | 42 | % | |||||||
% of total revenue | 80 | % | 73 | % | 78 | % | 73 | % | |||||||
Transmitter revenue(2) | $ | 61.8 | $ | 48.5 | $ | 169.0 | $ | 130.1 | |||||||
Year over year growth | 27 | % | 27 | % | 30 | % | 27 | % | |||||||
% of total revenue | 16 | % | 18 | % | 17 | % | 19 | % | |||||||
Receiver revenue | $ | 17.3 | $ | 24.2 | $ | 54.7 | $ | 58.1 | |||||||
Year over year growth | (29 | )% | 68 | % | (6 | )% | 45 | % | |||||||
% of total revenue | 4 | % | 9 | % | 5 | % | 8 | % | |||||||
Total revenue(1) | $ | 396.3 | $ | 266.7 | $ | 1,013.2 | $ | 693.5 | |||||||
Year over year growth | 49 | % | 44 | % | 46 | % | 39 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 (As Adjusted)(1) | 2019 | 2018 (As Adjusted)(1) | ||||||||||||
GAAP operating income (loss) | $ | 56.0 | $ | 13.9 | $ | 40.8 | $ | (21.7 | ) | ||||||
Amortization of intangible assets | 0.3 | — | 1.0 | — | |||||||||||
Business transition and related costs(2) | 2.8 | 0.8 | 15.9 | 5.5 | |||||||||||
Non-GAAP operating income (loss) | $ | 59.1 | $ | 14.7 | $ | 57.7 | $ | (16.2 | ) | ||||||
GAAP net income | $ | 45.8 | $ | 46.6 | $ | 8.4 | $ | 52.6 | |||||||
Share-based compensation | 24.4 | 27.1 | 79.1 | 77.3 | |||||||||||
Depreciation and amortization | 12.9 | 7.8 | 34.4 | 20.5 | |||||||||||
Business transition and related costs(2) | 1.7 | 0.8 | 13.4 | 5.5 | |||||||||||
(Income) loss from equity investments(3) | — | (34.9 | ) | 4.2 | (85.0 | ) | |||||||||
Interest expense and interest income | 7.7 | 2.4 | 23.5 | 8.3 | |||||||||||
Income tax benefit (expense) | — | (1.8 | ) | 1.5 | (2.2 | ) | |||||||||
Adjusted EBITDA | $ | 92.5 | $ | 48.0 | $ | 164.5 | $ | 77.0 | |||||||
GAAP net income | $ | 45.8 | $ | 46.6 | $ | 8.4 | $ | 52.6 | |||||||
Amortization of intangible assets | 0.3 | — | 1.0 | — | |||||||||||
Business transition and related costs(2) | 2.8 | 0.8 | 15.9 | 5.5 | |||||||||||
Non-cash interest expense(4) | 11.5 | 3.4 | 34.1 | 10.0 | |||||||||||
(Income) loss from equity investments(3) | — | (34.9 | ) | 4.2 | (85.0 | ) | |||||||||
Tax effect of adjustments(5) | — | — | — | — | |||||||||||
Non-GAAP net income (loss) | $ | 60.4 | $ | 15.9 | $ | 63.6 | $ | (16.9 | ) | ||||||
GAAP diluted net income per share | $ | 0.50 | $ | 0.52 | $ | 0.09 | $ | 0.59 | |||||||
Impact of diluted shares on net income (basic net loss) per share(7) | — | — | — | 0.01 | |||||||||||
Amortization of intangible assets | — | — | 0.01 | — | |||||||||||
Business transition and related costs(2) | 0.03 | 0.01 | 0.17 | 0.06 | |||||||||||
Non-cash interest expense(4) | 0.12 | 0.04 | 0.37 | 0.11 | |||||||||||
(Income) loss from equity investments(3) | — | (0.39 | ) | 0.05 | (0.97 | ) | |||||||||
Tax effect of adjustments(5) | — | — | — | — | |||||||||||
Non-GAAP net income (loss) per share(6) | $ | 0.65 | $ | 0.18 | $ | 0.69 | $ | (0.19 | ) | ||||||
Shares used in GAAP diluted per share calculations: | 92.5 | 90.3 | 92.2 | 89.3 | |||||||||||
Shares used in non-GAAP per share calculations: | 92.5 | 90.3 | 92.2 | 88.0 |
• | Non-cash collaborative research and development fees |
• | Amortization of intangible assets |
• | Business transition and related costs |
• | Income and loss from equity investments |
• | Non-cash interest expense on senior convertible notes |
• | Income tax effects of non-GAAP adjustments |
Document and Entity Information |
Nov. 06, 2019 |
---|---|
Cover page. | |
Amendment Flag | false |
Document Type | 8-K |
Document Period End Date | Nov. 06, 2019 |
Entity Registrant Name | DEXCOM, INC. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 000-51222 |
Entity Tax Identification Number | 33-0857544 |
Entity Address, Address Line One | 6340 Sequence Drive |
Entity Address, City or Town | San Diego, |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 92121 |
City Area Code | 858 |
Local Phone Number | 200-0200 |
Entity Emerging Growth Company | false |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, $0.001 Par Value Per Share |
Trading Symbol | DXCM |
Security Exchange Name | NASDAQ |
Entity Central Index Key | 0001093557 |
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