Dexcom (DXCM) The 44th Annual William Blair Growth Stock Conference summary

Market Overview and Unmet Needs

• Diabetes affects 783 million people globally, with significant economic and personal costs, including reduced lifespan and high healthcare spending; over 1 in 4 US healthcare dollars are spent on diabetes.

• Global diabetes prevalence is projected to reach 783 million adults by 2045.

• Current standards of care are insufficient, with many patients spending significant time out of glucose range, leading to severe complications.

• Intermittent glucose monitoring is insufficient for optimal diabetes management, reinforcing the need for CGM adoption.

• CGM technology is now standard for insulin users but has broader potential for non-insulin and prediabetic populations.

Company Achievements and Innovation

• Pioneered multiple CGM industry firsts, including direct Apple Watch connectivity, direct-to-smartphone data, and over-the-counter approval.

• 2023 revenue reached $3.62 billion, a 24% organic growth, with user base expanding to 2.3 million and improved operating margins.

• Operating expense leverage improved by approximately 400 basis points.

• Expanded manufacturing capacity with new facilities in Malaysia and Ireland to support future growth.

• Connectivity with digital health apps, automated insulin delivery, and healthcare providers is a key differentiator.

Product Development and Launches

• Transitioning users from G6 to G7, with G7 being the most accurate and simple sensor, and expanding into new geographies.

• Dexcom ONE+ launched in 8 new markets in Q1 and expanding further; Stelo, the first OTC product, launches in late August 2024.

• G7 platform enhancements include 15-day wear, medication logging, and integration with Apple and Google Health.

• The company is advancing 15-day wear products and expanding G7 pump and connected pen compatibility.

• Stelo will launch as a cash-pay option and is the first CGM cleared for use without a prescription in the US.