DexCom(DXCM)2025-05-01 20:30Financial Data and Key Metrics Changes - The company reported worldwide revenue of 921 million in Q1 2024, with organic revenue growth of 14% [18] - U.S. revenue totaled 653 million in Q1 2024, driven by strong new customer demand [19] - International revenue grew 7% to 596.2 million, representing 57.5% of revenue, down from 61.8% in Q1 2024 [23] - Operating income was 140.2 million in the same quarter of 2024 [24] - Adjusted EBITDA was 220.9 million, or 24% of revenue in Q1 2024 [25] - Net income for Q1 was 0.32 per share [26] Business Line Data and Key Metrics Changes - The company experienced record levels of new customer demand, particularly from the Type 2 non-insulin using population [9][10] - The introduction of Stello, the first over-the-counter CGM, and broader access in the Type 2 market contributed to increased customer starts [10][12] - The company launched a 180-day data look-back feature for the Stello app, enhancing customer experience [13] Market Data and Key Metrics Changes - The company secured access at two of the three largest PBMs for diabetes patients, which is expected to cover nearly six million people with Type 2 diabetes by the end of the year [10][11] - International business showed strength in Japan and France, with continued growth in the Type 2 landscape [22] Company Strategy and Development Direction - The company is focused on expanding coverage for Type 2 diabetes patients and enhancing customer experience through technology and software updates [10][12] - The introduction of the 15-day G7 system is expected to set a new industry standard for sensor accuracy and wear time [16] - The company is committed to addressing FDA concerns following a warning letter and is working on corrective actions [15][102] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating supply dynamics and maintaining customer care during the transition period [6][19] - The company reaffirmed its revenue guidance of 750 million share repurchase program, reflecting strong cash flow and financial position [26] - Management highlighted the importance of evidence-based data in driving changes to standards of care and expanding access globally [11] Q&A Session Summary Question: Did supply have any impact on the revenue growth? - Management indicated that supply dynamics were normalized by the end of the quarter, and strong new patient performance was observed despite previous challenges [35] Question: Why is full-year guidance unchanged despite strong Q1 growth? - Management stated that it is prudent to wait and see how the year unfolds before adjusting guidance, emphasizing the importance of a full-year perspective [42] Question: What are the trends in Type 2 patient utilization and reorder rates? - Management reported good retention and utilization rates among Type 2 patients, particularly those with reimbursement coverage [50] Question: How exposed is the company to a potential recession? - Management believes the company is well-positioned to weather economic downturns due to the cost-saving benefits of its products [58][60] Question: What is the status of the FDA warning letter? - Management confirmed that the warning letter does not restrict new submissions or approvals and that they are making progress in addressing FDA concerns [102] Question: What is the timeline for the RCT data readout for Type 2 non-insulin users? - Management anticipates finishing enrollment in the first half of the year, with initial data readout expected late this year or early next year [112]