DexCom(DXCM) - 2024 Q4 - Annual Report

Financial Performance - Total revenue for fiscal 2024 reached $4.03 billion, an increase of 11$2.44 billion, up 7% from the previous year[439] - Operating income for fiscal 2024 was $600 million, reflecting a slight increase of 0.4$576.2 million, representing a 6% increase compared to 2023[439] - Operating cash flow for fiscal 2024 was $989.5 million, up 32$2.89 billion, a 10% increase from 2023[449] - International revenue reached $1.14 billion in fiscal 2024, up 15$576.2 million, an increase from $203.8 million in the previous year, representing a growth of approximately 183$552.4 million, a 9% increase from 2023[441] - Selling, general and administrative expenses totaled $1.29 billion, reflecting an 8$37.6 million, driven by higher headcount, clinical trials, and software costs, reflecting the company's commitment to future growth and product development[453] - Selling, general and administrative expenses rose by $92.3 million, mainly due to increased advertising, compensation, software, and travel expenses[453] Cash Flow and Capital Management - Cash, cash equivalents, and short-term marketable securities totaled$2.58 billion as of December 31, 2024, a decrease of $144.7 million from$2.72 billion as of December 31, 2023[475] - Positive cash flows from operating activities amounted to $989.5 million for the twelve months ended December 31, 2024, with expectations for continued positive cash generation[459] - The company had a working capital ratio of 1.47 and a quick ratio of 1.22 as of December 31, 2024, indicating sufficient current assets to cover short-term liabilities[463] - As of December 31, 2024, the company had a debt-to-assets ratio of 0.38, suggesting total assets are adequate to cover both short-term and long-term debts[466] - The company received net proceeds of$1.19 billion from the 2025 Notes offering and $1.23 billion from the 2028 Notes offering, with plans to use the proceeds for general corporate purposes and potential acquisitions[460] - The company anticipates significant capital expenditures in the next year to invest in equipment and manufacturing facilities to support growth[463] - Capital expenditures for the year were$358.8 million, up from $236.6 million in the previous year, indicating a growth of approximately 51.6$248.1 million in net proceeds from marketable securities, contrasting with $253.0 million in net purchases of marketable securities in the prior year[477] - The company issued$1.23 billion in senior convertible notes, net of issuance costs, compared to $26.6 million in proceeds from the issuance of common stock under employee stock plans in the previous year[477] - The company purchased$750.0 million in treasury stock, while the previous year saw $688.7 million in similar purchases, reflecting a significant commitment to returning capital to shareholders[477] Product Development and Market Expansion - The company launched the Dexcom G7 in 2023 and Stelo, the first over-the-counter glucose biosensor in the U.S., in August 2024[422] - Revenue for the twelve months ended December 31, 2024, increased primarily due to a sales volume increase from approximately 500,000 - 600,000 net new users added to the worldwide customer base, with disposable sensor revenue comprising approximately 95$43.3 million related to inventory[451] - The company experienced a net increase of $108.8 million in changes of working capital balances compared to a net increase of$3.2 million in the prior year[477]