Dexcom (DXCM) Q4 2023 earnings summary

Executive summary

• Q4 revenue was $1.035B, up 26% organically and 27% reported YoY; FY2023 revenue was $3.622B, up 24%.

• Expanded access, record new customer starts and global G7 rollout supported momentum; management expected continued growth in 2024.

Financial highlights

• Q4 GAAP net income was $256.3M and diluted EPS was $0.62, vs. $91.8M and $0.22 YoY; non-GAAP net income was $202.8M and diluted EPS was $0.50.

• Q4 GAAP operating income was $216.9M vs. $125.4M; non-GAAP operating income was $242.7M vs. $172.1M YoY.

• FY2023 GAAP operating income was $597.7M vs. $391.2M; GAAP net income was $541.5M vs. $341.2M.

• Nearly 500 bps of operating expense leverage was generated vs. Q4 2022.

Outlook and guidance

• FY2024 revenue guidance: $4.15B–$4.35B, representing 16%–21% organic growth; non-GAAP gross margin 63%–64%, non-GAAP operating margin ~20% and adjusted EBITDA margin ~29%.

• Guidance factors include G6-to-G7 conversion, launches for type 2 basal and non-insulin hypoglycemia populations, Dexcom ONE expansion and YoY operating expense leverage.

• Organic growth excludes FX and non-CGM revenue acquired or divested in the trailing 12 months; guidance assumes divestiture of non-CGM assets that contributed ~$30M of FY2023 revenue.