Dexcom (DXCM) 43rd Annual J.P. Morgan Healthcare Conference 2025 summary

Mission and market context

• Diabetes prevalence is rising globally, with projections reaching 783 million adults by 2045 and significant healthcare costs, as $1 in $4 is spent on diabetes care.

• CGM technology has evolved to improve accuracy, connectivity, and user engagement, expanding its impact beyond insulin users.

• Clinical studies and real-world evidence show CGM improves glycemic control, reduces cardiometabolic risk, and lowers healthcare utilization in type 2 diabetes, including non-insulin users.

• CGM use in basal insulin patients led to sustainable A1C reductions and improved time in range, reducing diabetes complications.

• CGM data also showed improvements in BMI, cardiovascular risk, and other metabolic markers in type 2 diabetes patients.

Financial and operational performance

• 2024 revenues grew 12% organically to over $4 billion, with U.S. growth at 10% and international at 17%.

• User base increased by 25% to nearly 2.9 million, supported by the largest U.S. commercial expansion and new manufacturing capacity in Malaysia.

• Two major product launches (Dexcom ONE+ and Stelo) and over 20 software updates were completed in 2024.

• 2025 guidance targets $4.6 billion in revenue and 14% growth, with a full-year Stelo contribution and a 15-day product launch planned for H2.

• Operating margins are expected to improve due to facility maturation and stable distribution channels, with 64%-65% margin guidance and $1.4 billion adjusted EBITDA expected in 2025.

Market expansion and growth strategy

• US market penetration remains below 60% for type 1/intensive insulin users, and under 5% for type 2 basal and non-insulin segments, leaving significant growth potential.

• Large opportunities exist in type 2 non-insulin, prediabetes, gestational diabetes, and metabolic health markets, with <5% CGM penetration.

• 2023 saw record coverage expansion and the G7 launch, with Stelo targeting type 2, prediabetes, and wellness segments.

• Commercial organization expanded by 40%, adding 50,000 new prescribers and driving record new patient growth in Q3 and Q4 2024.

• Dexcom is broadening its impact with Stelo, offering OTC access, e-commerce, and personalized software, targeting new customer segments.