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Dexcom Posts 49% YoY Revenue Growth, Sending Shares to 52-Week High

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Glucose monitoring systems developer Dexcom's shares traded 30% higher today after releasing Q3/19 earnings and raising full-year 2019 guidance.

Glucose monitoring systems maker Dexcom Inc. (DXCM:NASDAQ) yesterday announced financial results for its third quarter ended September 30, 2019.

In the report the company reported that worldwide revenue in Q3/19 grew by 49% to $396.3 million, compared to $266.7 million in Q3/18. The firm indicated that volume growth together with strong new patient additions continues to be the primary revenue growth driver. Dexcom further advised that U.S. revenue increased by 53% and international revenue increased by 36% in the corresponding period.

The firm indicated that GAAP operating income in Q3/19 was $56.0 million compared to $13.9 million in Q3/18. For Q3/19, the company posted GAAP net income of $45.8 million, or $0.50 per diluted share, compared to $46.6 million, or $0.52 per diluted share in Q3/18.

Regarding the effectiveness of the company's monitoring devices, the firm noted "the 3-Year COMISAIR study results continued to demonstrate the value proposition of Dexcom's real-time CGM resulting in significant improvements to A1C and time in range for Dexcom CGM subgroups regardless of one's method of insulin delivery."

The company's Chairman, President and CEO Kevin Sayer commented, "Dexcom maintained its robust revenue growth momentum in the third quarter, leading to another significant increase to our full year revenue outlook...Our team is working hard to meet demand and ensure an exceptional experience for our customers, and we look forward to a strong close to 2019."

The company updated and mostly raised its estimates for full-year 2019. The firm now expects FY/19 Revenue of $1.4251.450 billion (3841% annual growth). This compares to previous expectations of $1.3251.375 billion (2833% yearly growth). The firm advised that it anticipates a 63% gross profit margin compared to previous expectations of 6465%. Additionally, the company indicated that it expects non-GAAP operating margin of approximately 9% up from the previously projected 7%, and non-GAAP adjusted EBITDA margin of approximately 19.5% compared to previous expectations of 18.5%.

Dexcom is a medical device company headquartered in San Diego, Calif., that designs, develops and markets continuous glucose monitoring (CGM) systems for use by people with diabetes and by healthcare providers.

Dexcom started the day with a market capitalization of around $14 billion with approximately 91.19 million shares outstanding, and about a 6% short interest. DXCM shares opened nearly 21% higher today at $185.20 (+$32.08, +20.95%) over yesterday's closing price of $153.12. The stock has traded today between $183.15-200.80 per share and currently is trading at $198.50 (+$45.38 +29.64%).

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