On October 26, 2023, DexCom Inc (DXCM, Financial) released its financial results for the third quarter of 2023. The company reported a 27% increase in revenue to $975.0 million, compared to the same quarter of the prior year. This growth was primarily driven by strong new customer additions and increased awareness of real-time CGM.
Financial Highlights
DexCom's GAAP operating income for Q3 2023 was $205.5 million or 21.1% of revenue, an increase of 190 basis points compared to Q3 2022. Non-GAAP operating income was $238.9 million or 24.5% of reported revenue, marking a 360 basis point increase from the same quarter of the prior year.
GAAP net income for the quarter was $120.7 million, or $0.29 per diluted share, compared to $101.2 million, or $0.24 per diluted share, for the same quarter of 2022. Non-GAAP net income was $202.8 million, or $0.50 per diluted share, compared to $111.9 million, or $0.28 per diluted share, for the same quarter of 2022.
Strategic Highlights
During the quarter, DexCom secured reimbursement for Dexcom ONE in France for all people on intensive insulin therapy, significantly expanding access to Dexcom CGM in the French market. The company also received regulatory clearance of Dexcom G7 in Canada and launched into the Canadian market subsequent to quarter-end.
2023 Annual Guidance and Share Repurchase Program
DexCom is increasing its fiscal year 2023 guidance for Revenue, Non-GAAP Gross Profit Margin, Non-GAAP Operating Margin, and Adjusted EBITDA Margin. The company expects revenue of approximately $3.575 - 3.600 billion (23-24% growth), Non-GAAP Gross Profit Margin of approximately 64%, Non-GAAP Operating Margin of approximately 19%, and Adjusted EBITDA Margin of approximately 28%.
In conjunction with its third quarter results, DexCom also announced a $500 million share repurchase program.
Balance Sheet and Cash Flow
As of September 30, 2023, DexCom held $3.24 billion in cash, cash equivalents, and marketable securities. The company's revolving credit facility remains undrawn. This significant financial and strategic flexibility will support DexCom's ongoing expansion of production capacity and exploration of new market opportunities.
Overall, DexCom's Q3 2023 results reflect solid financial performance and strategic advancements, positioning the company for continued growth in the remainder of 2023.
Explore the complete 8-K earnings release (here) from DexCom Inc for further details.
