DexCom Inc. Files Q3 2024 10-Q

TL;DR

DexCom's Q3 2024 10-Q is in, showing their latest financials. #DXCM

AI Summary

DexCom Inc. filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the third quarter of 2024. Key financial figures and business segment information are presented, reflecting the company's ongoing activities in the medical device sector.

Why It Matters

This filing provides investors and analysts with the latest financial health and operational performance of DexCom, a key player in diabetes management technology.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing (10-Q) and does not inherently introduce new risks beyond those already associated with the company's business.

Key Players & Entities

• DexCom Inc. (company) — Filer of the 10-Q
• 20240930 (date) — End of the reporting period
• 20241024 (date) — Filing date

FAQ

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 Par Value Per Share DXCM Nasdaq Global

Filing Documents

• dxcm-20240930.htm (10-Q) — 1401KB
• dxcm9302024exhibit31.htm (EX-3.1) — 223KB
• dxcm9302024exhibit3101.htm (EX-31.01) — 9KB
• dxcm9302024exhibit3102.htm (EX-31.02) — 9KB
• dxcm9302024exhibit3201.htm (EX-32.01) — 4KB
• dxcm9302024exhibit3202.htm (EX-32.02) — 4KB
• dxcm-20240930_g1.jpg (GRAPHIC) — 108KB
• dxcm-20240930_g2.jpg (GRAPHIC) — 53KB
• dxcm-20240930_g3.jpg (GRAPHIC) — 53KB
• dxcm-20240930_g4.jpg (GRAPHIC) — 97KB
• 0001093557-24-000180.txt ( ) — 8532KB
• dxcm-20240930.xsd (EX-101.SCH) — 48KB
• dxcm-20240930_cal.xml (EX-101.CAL) — 80KB
• dxcm-20240930_def.xml (EX-101.DEF) — 254KB
• dxcm-20240930_lab.xml (EX-101.LAB) — 597KB
• dxcm-20240930_pre.xml (EX-101.PRE) — 462KB
• dxcm-20240930_htm.xml (XML) — 1163KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION ITEM 1.

Financial Statements

Financial Statements Consolidated Balance Sheets (unaudited) as of September 30, 2024 and December 31, 2023 4 Consolidated Statements of Operations (unaudited) for the three and nine m onths ended September 30, 2024 and 2023 5 Consolidated Statements of Comprehensive Income (unaudited) for the three and nine months ended September 30, 2024 and 2023 6 Consolidated Statements of Stockholders' Equity (unaudited) for the three and nine months ended September 30, 2024 and 2023 7 Consolidated Statements of Cash Flows (unaudited) for the nine months ended September 30, 2024 and 2023 9

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 10 ITEM 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 29 ITEM 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 42 ITEM 4.

Controls and Procedures

Controls and Procedures 43

OTHER INFORMATION

PART II. OTHER INFORMATION ITEM 1.

Legal Proceedings

Legal Proceedings 44 ITEM 1A.

Risk Factors

Risk Factors 46 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 46 ITEM 3. Defaults Upon Senior Securities 46 ITEM 4. Mine Safety Disclosures 46 ITEM 5. Other Information 46 ITEM 6. Exhibits 49

Signatures

Signatures 51 2 Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Except for historical financial information contained herein, the matters discussed in this Quarterly Report on Form 10-Q may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. Such statements include declarations regarding our operations, financial condition and prospects, and business strategies, and are based on management's intent, beliefs, expectations, and assumptions as of the date of this report. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks, uncertainties and other factors, some of which are beyond our control. Actual results could differ materially from those indicated or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, but are not limited to: (i) that the information is of a preliminary nature and may be subject to further adjustment; (ii) those risks and uncertainties identified under "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the Securities and Exchange Commission, or the SEC, on February 8, 2024, together with any updates identified under "Risk Factors" in our subsequently filed Quarterly Reports on Form 10-Q; and (iii) the other risks detailed from time-to-time in our other reports and registration statements filed with the SEC. Except as required by law, we undertake no obligation to revise or update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS DexCom, Inc. Consolidated Balance Sheets (Unaudited) (In millions, except share and par value data) September 30, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 621.2 $ 566.3 Short-term marketable securities 1,871.1 2,157.8 Accounts receivable, net 1,002.0 973.9 Inventory 586.3 559.6 Prepaid and other current assets 182.2 168.3 Total current assets 4,262.8 4,425.9 Property and equipment, net 1,318.8 1,113.1 Operating lease right-of-use assets 67.5 71.4 Goodwill 23.8 25.2 Intangibles, net 106.2 134.5 Deferred tax assets 486.5 419.4 Other assets 88.2 75.0 Total assets $ 6,353.8 $ 6,264.5 Liabilities and Stockholders' Equity Current liabilities: Accounts payable and accrued liabilities $ 1,592.5 $ 1,345.5 Accrued payroll and related expenses 105.8 171.0 Short-term operating lease liabilities 22.3 21.1 Deferred revenue 13.9 18.4 Total current liabilities 1,734.5 1,556.0 Long-term senior convertible notes 2,439.6 2,434.2 Long-term operating lease liabilities 71.1 80.1 Other long-term liabilities 129.6 125.6 Total liabilities 4,374.8 4,195.9 Commitments and contingencies Stockholders' equity: Preferred stock, $ 0.001 par value, 5.0 million shares authorized; no shares issued and outstanding at September 30, 2024 and December 31, 2023 — — Common stock, $ 0.001 par value, 800.0 million shares authorized; 408.8 million and 390.6 million shares issued and outstanding, respectively, at September 30, 2024; and 407.2 million and 385.4 million shares issued and outstanding, respectively, at December 31, 2023 0.4 0.4 Additional paid-in capital 2,050.5 3,514.6 Accumulated other comprehensive income (loss) 63.4 ( 16.7 ) Retained earnings 1,445.9 1,021.4 Treasury stock, at cost; 18.2 million shares at September 30, 2024 and 21.8 million shares at December 31, 2023 ( 1,581.2 ) ( 2,451.1 ) Total stockholders' equity 1,979.0 2,068.6 Total liabilities and stockholders' equity $ 6,353.8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) 1. Organization and Significant Accounting Policies Organization and Business We are a medical device company primarily focused on the design, development and commercialization of continuous glucose monitoring, or CGM, systems for the management of diabetes and metabolic health by patients, caregivers, and clinicians around the world. Unless the context requires otherwise, the terms "we," "us," "our," the "company," or "Dexcom" refer to DexCom, Inc. and its subsidiaries. Basis of Presentation and Principles of Consolidation We have prepared the accompanying unaudited consolidated financial statements in accordance with U.S. generally accepted accounting principles, or GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Securities and Exchange Commission, or SEC, Regulation S-X. Accordingly, they do not include all of the information and disclosures required by GAAP for complete financial statements. In the opinion of management, all adjustments, which include only normal recurring adjustments considered necessary for a fair presentation, have been included. Operating results for the three and nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2024. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto for the fiscal year ended December 31, 2023 included in the Annual Report on Form 10-K that we filed with the SEC on February 8, 2024. These consolidated financial statements include the accounts of DexCom, Inc. and our wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. We have reclassified certain amounts previously reported in our financial statements to conform to the current presentation. We determin

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View this 10-Q filing on SEC EDGAR