DexCom(DXCM) - 2025 Q1 - Quarterly Report

Financial Performance - Revenue for the three months ended March 31, 2025, was $1.04 billion, up 12% from$ 921 million in the same period in 2024[110] - Gross profit for the same period was $589 million, representing a 5% increase from$ 561.9 million in the prior year[110] - Operating income increased by 32% to $133.7 million compared to$ 101.1 million in the first quarter of 2024[110] - Net income decreased by 28% to $105.4 million, down from$ 146.4 million in the same period last year[110] - Disposable sensor and other revenue comprised approximately 96% of total revenue for the three months ended March 31, 2025, compared to 93% in the same period in 2024[121] Customer Growth - The company added approximately 500,000 - 600,000 net customers in 2024, excluding Stelo customers, contributing to revenue growth[121] Expenses - Research and development expenses increased by $10.2 million due to higher compensation and related costs from headcount growth[122] - Selling, general and administrative expenses decreased by$ 22.7 million primarily due to lower legal expenses related to a settled patent infringement lawsuit[122] Cash and Liquidity - The company ended the first quarter of 2025 with cash, cash equivalents, and short-term marketable securities totaling $2.70 billion[110] - As of March 31, 2025, the company had$ 2.70 billion in cash, cash equivalents, and short-term marketable securities, an increase of $122.0 million from$ 2.58 billion as of December 31, 2024[128][144] - For the three months ended March 31, 2025, the company reported positive cash flows from operating activities of $183.8 million, a decrease of$ 25.4 million compared to $209.2 million for the same period in 2024[129][146] - The company expects existing cash and short-term investments, along with future cash flows, to be sufficient to fund ongoing core business operations for at least the next 12 months[135] Capital Expenditures - The company anticipates significant capital expenditures for the next year, particularly for the build-out of its manufacturing facility in Ireland, resulting in a$ 30.1 million increase in capital expenditures[133][146] Financial Ratios - As of March 31, 2025, the company had a working capital ratio of 1.50 and a quick ratio of 1.27, indicating sufficient current assets to cover short-term liabilities[133] - The company reported a debt-to-assets ratio of 0.36, indicating that total assets are more than sufficient to cover both short-term and long-term debts[136] Debt and Financing - The company had outstanding senior convertible notes classified as current, maturing in November 2025, and long-term notes maturing in May 2028, with potential for conversion into cash and/or shares prior to maturity[134][137] - 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[130] - As of March 31, 2025, the company had no outstanding borrowings under its Amended Credit Agreement, with a total available balance of $192.3 million[132] Risk Factors - The company is exposed to foreign currency exchange risk as it expands its international operations, which may impact financial performance[127] Future Developments - Future product development plans include technologies focused on improved performance and intelligent insulin administration[102]