today reported its financial results as of and for the quarter ended March 31, 2023.
“Given the strength of our first quarter results and an expanding market opportunity with new CGM coverage now available, we are pleased to raise our 2023 revenue guidance.”
First Quarter 2023 Financial Highlights:
- Revenue grew 18% versus the same quarter of the prior year to $741.5 million on a reported basis and 19% on an organic1 basis.
- U.S. revenue growth of 17% and international revenue growth of 21% on a reported basis. International revenue growth was 27% on an organic1 basis.
- GAAP operating income of $47.2 million or 6.4% of revenue, a decrease of 20 basis points compared to the first quarter of 2022. Non-GAAP operating income* of$78.6 million or 10.6%of reported revenue, an increase of 260 basis points compared with the same quarter of the prior year.
First Quarter 2023 Strategic Highlights:
- Initiated the launch of Dexcom G7 in the United States, bringing the industry’s most accurate2 CGM to the company’s largest market
- Broadcasted the company’s second-ever Super Bowl commercial starring Nick Jonas to announce the arrival of G7 in the United States and promote greater awareness of CGM technology
- Finalized coverage for Dexcom G7 with the US Centers for Medicare & Medicaid Services, providing Medicare beneficiaries reimbursed access to Dexcom’s latest generation technology
- Published annual Sustainability Report, which provided enhanced reporting on the company’s environmental initiatives and significant additions to human capital disclosure
“Dexcom is off to a great start in 2023, executing on several key initiatives including the launch of Dexcom G7 in the United States,” said Kevin Sayer, Dexcom’s chairman, president and CEO. “Given the strength of our first quarter results and an expanding market opportunity with new CGM coverage now available, we are pleased to raise our 2023 revenue guidance.”
| 1 | First quarter of 2023 organic revenue is $751.2 million and excludes $9.7 million of foreign exchange impact. |
| 2 | Dexcom, data on file, 2022. |
2023 Annual Guidance
The company is updating fiscal year 2023 revenue guidance, and reiterating guidance for Non-GAAP Gross Profit Margin, Non-GAAP Operating Margin and Adjusted EBITDA Margin at the following levels:
- Revenue of approximately $3.400 – 3.515 billion (17-21% growth)
- Non-GAAP Gross Profit Margin of 62-63%
- Non-GAAP Operating Margin of approximately 16.5%
- Adjusted EBITDA Margin of approximately 26%
First Quarter 2023 Financial Results
Revenue: In the first quarter of 2023, worldwide revenue grew 18% to $741.5 million on a reported basis, up from $628.8 million in the first quarter of 2022. Volume growth in conjunction with strong new customer additions continues to be the primary driver of revenue growth as awareness of real-time CGM increases.
Gross Profit: GAAP gross profit totaled $462.6 million or 62.4% of revenue for the first quarter of 2023, compared to $398.1 million or 63.3% of revenue in the first quarter of 2022.
Non-GAAP gross profit* totaled $469.8 million or 63.4% of revenue for the first quarter of 2023, compared to $398.1 million or 63.3% of reported revenue in the first quarter of 2022.
Operating Income: GAAP operating income for the first quarter of 2023 was $47.2 million, compared to GAAP operating income of $41.3 million for the first quarter of 2022.
Non-GAAP operating income* for the first quarter of 2023 was $78.6 million, compared to non-GAAP operating income of $50.3 million for the first quarter of 2022.
Net Income and Net Income Per Share: GAAP net income was $48.6 million, or $0.12 per diluted share, for the first quarter of 2023, compared to GAAP net income of $97.3 million, or $0.23 per diluted share, for the same quarter of 2022.
Non-GAAP net income* was $68.5 million, or $0.17 per diluted share, for the first quarter of 2023, compared to non-GAAP net income of $32.3 million, or $0.08 per diluted share, for the same quarter of 2022. The first quarter 2023 non-GAAP amount excludes $1.1 million of business transition and related costs, $21.3 million of intellectual property litigation costs, $9.0 million of amortization of intangible assets, and $11.5 million of tax adjustments.
Cash and Liquidity: As of March 31, 2023, Dexcom held $2.57 billion in cash, cash equivalents and marketable securities and our revolving credit facility remains undrawn. The cash balance represents significant financial and strategic flexibility as Dexcom continues to expand production capacity and explore new market opportunities.
* See Table E below for a reconciliation of these GAAP and non-GAAP financial measures.
Conference Call
Management will hold a conference call today starting at 4:30 p.m. (Eastern Time). The conference call will be concurrently webcast. The link to the webcast will be available on the Dexcom Investor Relations website at investors.dexcom.com by navigating to “Events and Presentations,” and will be archived for future reference. To listen to the conference call, please dial (888) 414-4585 (US/Canada) or (646) 960-0331 (International) and use the conference id “9430114” approximately five minutes prior to the start time.
Statement Regarding Use of Non-GAAP Financial Measures
This press release and the accompanying tables include non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP), please see the section of the accompanying tables titled “About Non-GAAP Financial Measures” as well as the related Table E. We have not reconciled our total revenue, Non-GAAP Gross Profit Margin, Non-GAAP Operating Margin and Adjusted EBITDA Margin estimates for fiscal year 2023 because certain items that impact these figures are uncertain or out of our control and cannot be reasonably predicted. Accordingly, a reconciliation of total revenue, Non-GAAP Gross Profit Margin, Non-GAAP Operating Margin and Adjusted EBITDA Margin is not available without unreasonable effort.
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