DexCom’s first quarter was met with a positive response from the market, as the company delivered revenue ahead of Wall Street expectations and maintained strong growth momentum. Management attributed this performance to robust demand, record new patient additions, and successful navigation of short-term supply challenges. CEO Kevin Sayer highlighted that the company’s expanded commercial reach, recent product launches, and broader patient access were key to driving acceleration in new customer starts, particularly among individuals with type 2 diabetes. Sayer noted, “We experienced an acceleration in demand from new customers, which again came in at record levels during Q1.”
Is now the time to buy DXCM? Find out in our full research report (it’s free).
DexCom (DXCM) Q1 CY2025 Highlights:
- Revenue: $1.04 billion vs analyst estimates of $1.02 billion (12.5% year-on-year growth, 1.8% beat)
- Adjusted EPS: $0.32 vs analyst estimates of $0.33 (in line)
- Adjusted EBITDA: $230.4 million vs analyst estimates of $251.9 million (22.2% margin, 8.5% miss)
- The company reconfirmed its revenue guidance for the full year of $4.6 billion at the midpoint
- Operating Margin: 12.9%, up from 11% in the same quarter last year
- Organic Revenue rose 13.8% year on year (24.8% in the same quarter last year)
- Market Capitalization: $33.2 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions DexCom’s Q1 Earnings Call
- Matt Taylor (Jefferies) asked about the impact of supply dynamics on revenue growth and how quickly the price-volume gap might close. CFO Jereme Sylvain said inventory levels have normalized, and new patient growth remains strong, suggesting volume growth will continue to track historical trends.
- Danielle Antalffy (UBS) inquired about DexCom’s resilience in an economic downturn. Sylvain explained that broader coverage and the value proposition of CGM position DexCom well, though all healthcare companies face some macro risk.
- Jayson Bedford (Raymond James) questioned international growth variances. Sylvain pointed to strong performance in Japan and France, attributing some volatility to the timing of coverage wins in various international markets.
- Jeff Johnson (Baird) sought clarification on gross margin cadence and potential manufacturing issues. COO Jacob Leach stated manufacturing output was at record levels and product quality was steady, with no major process issues identified.
- Marie Thibault (BTIG) asked how DexCom is maintaining operating and EBITDA margin guidance despite gross margin pressures. Sylvain and Leach credited operational efficiencies, prior commercial investments, and targeted cost controls for supporting margin targets.
Catalysts in Upcoming Quarters
In the quarters ahead, the StockStory team will watch (1) the pace of new type 2 diabetes patient adoption as expanded PBM coverage takes effect, (2) the rollout and patient uptake of the 15 Day G7 system and its integration with insulin pumps, and (3) progress on supply chain normalization and gross margin recovery as logistics costs decrease. Additional data releases in support of broader type 2 coverage will also be key milestones.
DexCom currently trades at $84.78, up from $70.25 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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