DexCom shares surge as Q1 revenue beats expectations

Published 01/05/2025, 22:58
DexCom shares surge as Q1 revenue beats expectations

Investing.com -- DexCom , Inc. (NASDAQ:DXCM) saw its shares jump 3.9% after the continuous glucose monitoring (CGM) device maker reported first-quarter revenue that surpassed analyst estimates, despite a slight miss on earnings per share.

The company posted revenue of $1.04 billion for the quarter ended March 31, 2025, beating the consensus estimate of $1.02 billion. This represents a 12% increase YoY on a reported basis and 14% YoY on an organic basis. However, adjusted earnings per share came in at $0.32, $0.01 below analyst expectations of $0.33.

DexCom’s U.S. revenue grew 15% YoY, while international revenue increased 7% on a reported basis and 12% on an organic basis. The company’s GAAP operating income rose to $133.7 million, or 12.9% of revenue, marking a 190 basis point improvement compared to the same quarter last year.

"To start the year, DexCom delivered a quarter of strong revenue results and unlocked significant new type 2 coverage," said Kevin Sayer, DexCom’s chairman, president and CEO.

For the full fiscal year 2025, DexCom reiterated its revenue guidance of $4.60 billion, which aligns closely with the analyst consensus of $4.606 billion. The company also announced a $750 million share repurchase program.

DexCom updated its non-GAAP gross profit margin guidance, citing "incremental costs related to near-term supply dynamics" as it works to reestablish optimal finished goods inventory levels. The company now expects a non-GAAP gross profit margin of approximately 62% for the year.

As of March 31, 2025, DexCom held $2.70 billion in cash, cash equivalents, and marketable securities, providing significant financial flexibility for future expansion and market opportunities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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