DexCom, Inc. reported its financial results as of and for the quarter and fiscal year ended December 31, 2017.
Fourth Quarter 2017 Highlights:
- Revenue grew 29% versus the same quarter of the prior year to $221.0 million
- International revenue grew 58% versus the same quarter of the prior year
- Gross profit of $153.5 million or 69% of revenue
- GAAP net loss of $9.4 million, or $0.11 loss per share which includes an $18.2 million one-time non-cash tax expense
- Non-GAAP net income of $8.8 million, or $0.10 earnings per share which excludes an $18.2 million one-time non-cash tax expense
Full Year 2017 Highlights:
- Revenue grew 25% versus the prior year to $718.5 million
- International revenue grew 61% versus the prior year
- Gross profit of $492.1 million or 68% of revenue
- GAAP net loss of $50.2 million, or $0.58 loss per share
“2017 was defined by several key accomplishments for DexCom, highlighted by record revenue, strong Q4 financial results, and meaningful progress on a number of strategic programs,” said Kevin Sayer, President and CEO, DexCom. “In the U.S., our commercial team executed well as we initiated our rollout into the Medicare population, and our International franchise exceeded expectations. DexCom also made big strides with our product pipeline, including our next generation system and with our development partners both in our intensive and non-intensive initiatives. We believe we are well positioned for continued success in 2018.”
Fourth Quarter 2017 Financial Results:
Revenue was $221.0 million for the fourth quarter of 2017, an increase of 29% from the $171.2 million in revenue for the same quarter of 2016. Gross profit totaled $153.5 million or 69% of revenue for the fourth quarter of 2017 compared to a gross profit of $116.7 million or 68% of revenue for the same quarter of 2016.
The GAAP net loss of $9.4 million, or $0.11 loss per share, for the fourth quarter of 2017 included $55.7 million in net non-cash expenses, compared to the GAAP net loss of $7.4 million, or $0.09 loss per share, for the same quarter in 2016, which included $34.3 million in non-cash expenses. Non-cash expenses for the fourth quarter of 2017 of $55.7 million were comprised primarily of share-based compensation, depreciation and amortization, non-cash interest expense related to our senior convertible notes, and an $18.2 million non-cash tax expense related to the reversal of a non-cash deferred tax benefit related to our senior convertible notes recorded during the second and third quarters of 2017. Non-cash expenses for the fourth quarter of 2016 were comprised primarily of share-based compensation, depreciation and amortization.
Non-GAAP net income was $8.8 million, or $0.10 earnings per share for the fourth quarter of 2017, which excludes an $18.2 million non-cash tax expense related to the reversal of a non-cash tax benefit related to our senior convertible notes recorded during the second and third quarters of 2017. See the table below entitled “Itemized Reconciliation Between GAAP and Non-GAAP Net Income (Loss) and Net Income (Loss) per Share” for a reconciliation of these GAAP and Non-GAAP financial measures.
Full Year 2017 Financial Results:
Revenue grew to $718.5 million for the fiscal year ended 2017, an increase of 25% from the $573.3 million in revenue for the same period of 2016. Gross profit totaled $492.1 million or 68% of revenue for the fiscal year ended 2017 compared to a gross profit of $378.4 million or 66% of revenue for the same period of 2016.
The GAAP net loss of $50.2 million or $0.58 per share, for the full fiscal year 2017 included $139.6 million in net non-cash expenses, compared to the GAAP net loss of $65.6 million, or $0.78 per share, for the same period in 2016, which included $128.1 million in non-cash expenses. Non-cash expenses for the fiscal year ended 2017 of $139.6 million were comprised primarily of share-based compensation, depreciation and amortization, and non-cash interest expense related to our senior convertible notes. Non-cash expenses for the same period of 2016 were comprised primarily of share-based compensation, depreciation and amortization.
As of December 31, 2017, DexCom had $548.6 million in cash, cash equivalents and short-term marketable securities.
2018 Annual Guidance:
DexCom reaffirmed the following projections for the full year 2018:
- Revenue of $830 million to $850 million
- Gross profit margins in the range of 65% to 68%
- GAAP operating expenses, excluding investments into non-intensive programs, to grow 10% versus 2017.
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, Inc. website at www.dexcom.com by navigating to “About Us,” then “Investor Relations,” and then “Events and Presentations,” and will be archived for future reference. To listen to the conference call, please dial (800) 447-0521 (US/Canada) or (847) 413-3238 (International) and use the confirmation number “46267189" approximately five minutes prior to the start time.
