DexCom (DXCM) 1 Aug 192019 Q2 Earnings call transcript

Company Profile

Participants

Sean Christensen	Senior Investor Relations Manager
Kevin Sayer	Chairman, President and Chief Executive Officer
Quentin Blackford	Executive Vice President and Chief Financial Officer
Steven Pacelli	Executive Vice President of Strategy and Corporate Development
Robbie Marcus	JP Morgan
J.P. McKim	Piper Jaffray
Jeffrey Johnson	Robert W. Baird
Margaret Kaczor	William Blair
Joanne Wuensch	BMO Capital Markets
Danielle Antalffy	SVB Leerink
David Lewis	Morgan Stanley
Travis Steed	Bank of America
Ryan Blicker	Cowen and Company
Jason Bradford	Raymond James
Raj Denhoy	Jefferies
Christopher Pasquale	Guggenheim Partners
Steven Lichtman	Oppenheimer & Co.
Suraj Kalia	Northland Securities

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to the DexCom Second Quarter 2019 Earnings Release Conference Call. My name is Adrienne and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we'll conduct a question-and-answer session. [Operator Instructions] Please note this conference is being recorded.

call Sean the turn now over Christensen. to I'll Christensen, you begin. may Sean

Sean Christensen

DexCom's and XXXX operator, you, second welcome Thank to quarter earnings call.

Our Corporate Chairman, update Pacelli, President President, President and a Kevin from from Quentin Sayer, Steve who and and Development. Executive financial with Strategy quarter, of provide Vice our a the summary agenda will Vice of then outlook our by review CFO; Executive Blackford, and and begins CEO, followed DexCom's a strategic

will open At the everyone we follow-up available call website up ask on Following analysts DexCom questions. are participating remarks, our can for page. note Please themselves the also Events a opportunity the for your and related that question that the provide second prepared so we slides and we our time, Presentations to to there on limit Investor an to Relations today. one performance quarter

Safe let's statement. review that, our With Harbor

These constitute events, management's products, statements about in future plans statements. strategies, make the that beliefs expectations intentions, performance. and forward-looking will of operating Some we and call statements competition, today's may reflect

in uncertainties, included could materially statements and information statements. forward-looking from subject as anticipated DexCom, are risks available presentation hereof, results based forward-looking All on of the currently various to the in are and to made actual and date this those differ

XX-K, by Form of and Exchange forward-looking on statements Securities these The factors in other reports that expressed annual filings could cause XX-Q actual and report results any the those or are to differ on Commission. materially implied with from DexCom's Form detailed quarterly

such the results. of statements forward-looking we conform to law, assume actual after this by these obligation date to no update required as any forward-looking to Except presentation or statements

for cash that been results discuss financial basis. results. with Additionally, accordance in on prepared results or based to certain or in presented will substitute and in a Unless to non-GAAP be respect considered superior financial we accordance during this with our noted, The isolation otherwise references have non-GAAP the all not should measures as information GAAP of not with to a are presentation GAAP. metrics additional prepared call,

the their to our slides measure. refer comparable to presentation second of measures most earnings and the Please release financial for directly in a quarter these GAAP accompanying tables reconciliation earnings our

Now, it over to turn I will Kevin.

Kevin Sayer

And everyone, joining Sean. you, you, for today. Thank thank us

to with We within are outstanding rise CGM of the to pleased for diabetes community. another report quarter DexCom, continuing awareness DexCom's

past Second momentum continuing on grew XXXX revenue basis, XX% over $XXX currency a have second quarter to that a quarter the million, increase five constant quarters. for the we the seen of

in all previous of quarters, businesses, our primary the growth remains commercial As observed growth Medicare our patients. we to in O-US US driver attributable have business, volume new channels, and including

a fact, new patient level in the again record additions In once quarter. second reached

than experiencing more offsetting move the And that businesses. the pricing as lower anticipated growth patient our that pharmacy volume indicate, we're well is we as our the and O-US of the with Medicare continued with our to as expansion channel, per pressure revenue results associated

conclusions American me. the early Francisco clear in While Association attending San increasingly Diabetes June, in two became Conference to

towards CGM driving of and progressing standard quickly is status. CGM real-time of care awareness First,

We have which prominently a that seeing. automated insulin longer featured we was CGM presence the product CGM papers telling for awareness devices, we're that to market the of DexCom gone believe minor is and that relative delivery academic Instead, is CGM therapies. reflect no as At on driver years drug the future record ADA, of the in standing-room-only here. growing presentations, first all future various and

provide metrics. metric glucose becoming most the this quickly of these Only control, year. time Time established with important and is to guidelines range new can and range assist being CGM types

Pro in to significant the CGM opportunity we are and intensive that more for launch product in recent Type in the that which confident is I large tool adoption further the our lies business expect Type ever II future. populations, become in growth for us XXXX. for market core the very these to a with This segments. With room GX both ahead will clear diagnostic us we is well-timed It as submission another of

maximize potential we inpatient just in insulin growth CGM. our opportunity. we're settings scratching populations, pregnancy Second, Discussions to limited we to last into and were contingent DexCom these on its technology at exploring whether as we call, surface the use studies the ADA applications of CGM traditional for the DexCom not position intensive settings. around using And stated of on to as are long-term preliminary

the our team's GX At to start operational critically of goal. and production performance support that achieve ambitious remains we significant goal are our on report year, the we I'm track capacity that To the important. established to opportunities, these doubling of pleased

about the Mesa that initiated excited our in cost of and fact low production we our Diego transmitter We're have locations. San

launch. we are for prepare We inventory now building as

Based our GX GX work this we transition both expand GX of GX positions to ongoing the forward later in Canada the half well hard on second to the to and continue strengthen of This to year of capacity. We look the bringing teams O-US in driving to operations San this markets. Mesa, additional our us in year. launch Diego and

believe category. launch that committed drive an should in demand satisfaction our and strong year already remain We a Medicare to patients this later patient GX for this incremental and

the have supplies keep II seen, the Class of will be between you system a GX III differentiated Class sensors CMS while III on ship bundle. future a and reimbursement less mind recently we that than Class Medicare for Also, rate the number please GX CGM, in no fewer the CGMs. front, will as for BGM And and

Based be EBITDA outlook our pleased margin operating XXXX as revenue on full-year able again for we're targets. and quarter well our better-than-expected to adjusted increase as performance, to second our

will review outlook our I will call now turn to as this on Quentin who the over as well financials. provide detail

Quentin Blackford

Thank Kevin. you,

as today's as noted, As a a found metrics release well to the will IR be otherwise discussed today earnings on website. Reconciliations non-GAAP presented financial can be reminder, unless on basis. GAAP on

of of for million to $XXX.X second quarter revenue basis. the for worldwide compared in reported XXXX reported XX% on same of representing we growth Today, $XXX.X XXXX, quarter the million a

quarter third Kevin we company. a more absolute with the basis consecutive Our $XX record to another additions being patient year-over-year and, new on this added stated, in as that momentum quarterly continued growth dollar million for be have the of strong, than

basis, On continued revenue our our basis the strong on at a to quarter. XX% respectively a XX% second be businesses, geographic grew growth O-US in which in and constant currency both and US

will to our like I'd of were and second meaningfully our difficult O-US growth the than and you year. through both the quarter in comps that in remainder quarter more US the continue first businesses the remind

$XXX.X revenue, points sequential was while with and the improvement of GX XXX of representing Our capacity second was first quarter XX.X% or gross basis our over profit quarter XXXX, line our million in expectations. increasing

negatively by our capacity as was to margin well gross basis, and year-over-year expansion ongoing pharmacy as the increasing channels. a O-US drive our impacted investments both mix On in

expectations unchanged. Our remains full-year gross margin

the we team of in progress job the can As continue our has an to flexibility do both long-term, toward systems. providing evaluate that our as as platform we manufacturing opportunities. of introducing confident into we and, done innovation therefore, of cost this GX, the future automation decreasing growth and we invest launch GX with within sensor We're the profile company excellent the process the and

XX% $XXX.X compared QX This were year-over-year. $XXX.X XXXX. million in million XXXX increase to reflects QX for expenses of Operating an

realized for of As continued variable top line, outperformance expenses our quarter. in operating an we on the the uptick our a result

second term. of normalize that included In expense near higher-than-expected addition, the to quarter we in two sources expect the

charge launch. made First, development we we made $X.X Verily of a We continue toward prepare triggered to the incentive number work. accelerating of good GX quarter for the in which in as investments of quarter to the for small million development a progress

we manufacturing continue innovation, introduction in invest system, GX of which our product GX when and as are with of beginning will rollout ensure Even to the our product the worldwide launched. aggressively we rapid

in organization we Second, within through location. we incur customer Manila. DexCom costs service our ramp duplicative we team We transition willing these world-class costs this believe as to Manila have built in our operations remain incurred a and our

our level. we bring capabilities third-party to that service and up to met expectations the have However, not them same are working recognized our

expense would unusual have approximately these rate items, operating of the for Normalizing been revenue. growth half

are of we the year in in margins Overall, operating track and anticipate on half this good demonstrate year. leverage operating to the second improvement continued

in was loss of quarter quarter operating in an XXX that I expenses quarter Operating highlighted, same margin of nearly of basis year-over-year the $X.X the second operating $X.X XXXX. XXXX just the the achieved expansion quarter. second compared to we million million income with of in points Even

exploration to remain we well of compared was established the positioned of This trajectory. XXXX. CGM in of targets XXXX, quarter innovation or platform the the XX.X% as the our margin as at generating long-term the of markets. second We late growth in to includes new revenue extend while or revenue in invest $XX.X quarter that value next of achieve our of to second $XX.X Adjusted well our our day GX will million wave that investor EBITDA investment million XX.X% our for cash in for

or income million Our was net $X.XX per share. $X.X

We financial our ended strategic on balance with sheet, position nearly company billion the in and providing second strong quarter $X.X cash with a significant the flexibility.

evidenced million of capacity. priority the remains our production second For our the capital expansion quarter, now, $XX by as of in expenditures

in beginning GX doubling stated this our And invest production. capacity remarks, tracking as for his while are of GX target we Kevin year, to towards

billion CGM, year, XX% anticipate seeing our for XXXX revenue we half the for now outlook of first approximately to up XX%. prior are performance our reflecting XX% $X.XXX and total continued of growth $X.XXX from to billion, reported XX% strength the the of Given demand real-time that DexCom we to of

previously, we XX% year, in by the mentioned of our as expectation margin approaching driven of year. the the half I exit XX% back our transmitter at GX stands lower-cost As introduction and broad the full-year XX% gross to primarily

margins of from and XX guidance. approximately growth, an basis we basis points XX.X%, X% of prior reflecting margins of XXX expect of respectively In now better-than-expected our increase light operating approximately adjusted points EBITDA revenue and

that, turn Steve update. With for over I strategic now to a the call will

Steven Pacelli

excited Quentin. people technology therapy. diabetes With the around insulin about in quarter the are line acceptance another first a we the on as CGM growing of you, great intensive for world with Thank bus,

is Despite the the a market is business confident well massive a we're that opportunity dynamics, number succeed growth changing long-term. of over DexCom positioned on rapidly and to capitalizing

core the strategic of to One was DexCom XXXX CGM. expand access objectives entering to

our areas. two primary teams have the on market, focused Within been US

through that have to the CGM we access making detail, we strong ensure a pharmacy in as push DexCom channel. First, have are to patients discussed

primary it channel Although and clinicians not half of efficient driver is the we over for the DexCom our are confident the first the growth volume year, of for the has been in this most patients, that long-term.

The the insulin business doubles effectively population where II the have Type an more is intensive II diabetes our core to with sought people market insulin, than X.X addressable expand we population. this the estimated Type area million US. With real-time in access second using in of

approved our population, dosing. this clearly for patients first stands they Most safer that glucose better importantly, when CGM the benefit as group of for CMS from recognized to management is insulin a Medicare technology our and

two the detailed throughout year. Our will been headwinds proactive driving initiatives increasingly have the care that of effort the also standard over and be CGM behind to we has to the these factor long-term pricing primary the drive

While these efforts. we it strategic to realize gaining benefits these we that pleased in report are of will are full take of strategic the traction to priorities, time both

partners progressing toward commercialization delivery insulin products. the Our are of well integrated

plus both to results insulin Tandem related automated presented their at Diabetes and the On encouraging delivery side, ADA systems. Insulet respective

these but pump in will therapy. among users, attract that gain those not pump solutions believe share only interested We will

support yet intent in ADA, another our GX designation. represents our diabetes announced leverage as patient to DexCom choice of the At integrate and DexCom interoperability ecosystem the This we iCGM also Tidepool into example of we Loop.

pen We the with pump. on Lilly a of pen Novo and and with both development partnerships Nordisk connected side smart the remain about excited smart Eli our a on

the our reminder, choose of a majority diabetes intensive which insulin continue smart relationships. highlights around delivery, insulin the therapy pens of their world preferred insulin pen people As to of as on with the means importance

In which CLARITY collaboration also announced pen we Companion insulin to from DexCom's early integrate software. smart allows pen June, users data into Medical, us with a maker, Companion's

and ecosystem dosing, their management. insulin their diabetes DexCom decisions, for sources insulin to We by together diabetes critical We give continue treatment manage components a patients two are of picture time. additional the comprehensive clinicians glucose helping of levels to intend the to to over integrate people and data bringing committed into

business. a confident are highly our As Quentin outside With factor, markets, prospective well into our to we even one-piece desirable and significantly a insulin disposable existing that wearable, accelerates will our defining a be and form as strategic as roll of GX additional reduced company. key platform out development as for that of patients we objective our remains to accuracy intensive a GX product market the new our core the GX entrance markets mentioned,

are late launch timelines in launch On reaffirm ahead our limited this XXXX. a in for a broader XXXX, of front, we pleased to

that, back it With I to pass will Kevin.

Kevin Sayer

having million the you, half you truly Anytime than full-year that half must first exit raised Thank going or for guidance you great Steve. year, XX%, it more has the revenue been And the first be XXXX of know DexCom. of year by $XXX well. a

there To years what's for DexCom things have a and to next, people the that grow at that scale, we is to serve. a To down rooms team this our commitment field thank clean those and in lot your current the thinking and great you DexCom. the asking the at come and here together, road the to have those we of are testament to

positions we core after market opportunity so develop diabetes that have business choose. that There well growth we to significant beyond. is technology still a worked DexCom's ahead for to The in us hard go any and huge opportunity

it's and just XXXX, rest. will a first not been but started summary, getting In of half great we we're

like I Q&A. now open up would the to call Sean? for

Sean Christensen

Thank Kevin. you,

As limit complete the provide themselves Q&A only instructions. a we Operator, question to audience and follow-up. reminder, one one please to our ask

Operator

JP comes Thank you. [Operator Marcus our first Morgan. And from from Instructions]. Robbie question

Your open. line is

Robbie Marcus

Congratulations quarter another on here. really Great. nice

Kevin Sayer

Thanks, Robbie.

Quentin Blackford

Thank you.

Robbie Marcus

and I year? guidance in year. of part back pharmacy, us Maybe in year, in of them back know I don't XX% greedy of the moving Quentin. of help growth XX% DME big for But of XX% to to pricing north implies the the moving as impact terms first to a the – of here this you maybe and in raises year pieces is the of switch understand but the there's could the growth start beats the here. lot here of on half catchall the international, the part that And of guidance up I first each after put from some half with and here, you have parts get the Medicare, Quentin, the for question want

Quentin Blackford

Sure, Robbie.

You the the XX back third respectively. I of accurate year of fact more draw roughly that get is just half point in comps difficult percentage the the to year, thing, everybody's is back attention think out to, points in important meaningfully and which in that the points headwind half most growth decelerating the of probably to percentage tune XX quarter the of fourth to the –

launch of We're last of the back you if headwind. saw half a to XX% in in So, comp year, the anniversarying think creates of back you to quarter. fourth start the up year GX the that and growth get into it now north mid-XXs, the meaningful even

So, rates mindful get normalize that for you year, have the first ranges be into start I to so and you to that start aspect. in growth of the half seen you back of you that think the have

a throughout year, accelerating we just in bit those And of that probably the headwinds continue then, see course a certainly from the perspective, has of half create back headwind start some price to even we'll with incremental perspective. That the pricing anticipate of contemplate business. bit a from of when CMS the you will moves fourth an Medicare that a made the incremental quarter little to the

Although from over we going perspective, it's pretty provide a margin to to longer supplies. time, beneficial BGM good have no to all that, us feel the as be we actually

of bit But create about good term. we goes that feel a headwind. going to it's longer So, where

tougher So, comps. the moving I think being pieces, those are biggest the one big the

Robbie Marcus

we of to give what focus an us And of when sort see, for timelines your the of I Okay, know be GX filing that's timelines on the should here we it's it's than different what all timelines you it, great. ramping Can a the different just seen to historically us nice see we'll Everybody's we'll No, or manufacturing the alterations. today. iCGM from going is help Thanks. there. out. presentations sit layout out expect? whether data here up way then, as product follow-up But question. understand we've ahead, what and

Kevin Sayer

Kevin. is I'll This one. that Robbie. Yeah, take

on go. very and big design making over on we We of development lot before the in the months GX. side We're next continue some lock a couple decisions

clinical because is has till play in candor, the As as have approved and been our will to presentations, the far hand. really don't we pivotal we not much product FDA to want the probably trial submitted all

the right small We consider to trials looking and those got are in are configurations of we've running product. things all that place for now, over at contemplated really putting But publication. none

know confident GX on we're one should to what look the very has points to The the since push Therefore, be that – and like. we We're iCGM perform this our those standards platform well. will a run trial overly going no surprised. one meet that outcome will outcome

We been into it and developing going things for we've have wonderful that really the some technology years.

said the his as launch, late remarks, launch a as far As XXXX. it be in limited in Steve will

out the those We to to we're enough want have an the We're way. and not capacity lessons – everyone not in fourth will try. roll We this learned going in to capacity it to do year. bigger even quarter re-learn about we've to not not going

We will our volumes. fully thing go this we then, approved, can once plant get roll up out and we significant as manufacturing ready whereby get support we to

product. our can learned It's we've And would going to GX patient this just be lesson to GX GX convert fast. at given about the to new underestimate what patients is to GX rate going is behavior. very from conversion from the We wonderful going which Another fast. our We're go to it actually we technology underestimated probably know not be conversion. the on a

want everybody to to swap able be we the XXXX, capacity out. So, really

GX by product the We will GX integrated totally end different our specific and and of products GX it in to in with markets flagship with XXXX, support supporting roles. becomes But continue such.

Robbie Marcus

Appreciate lot. it. a Thanks

Operator

from question from comes Piper Jaffray. next McKim the J.P. And

open. Your line is

J.P. McKim

way. the terms you bit it little to on you if a touch where question. remarks. I'd prepared for are your And and maybe you PowerPoint, on the touch but in didn't can you in the coverage like Thank an us Good could, of going Hi. update on just in just the Walgreens give pharmacy, taking you about volume that talk if It is announcement. afternoon.

that So, forward. you for that maybe talk going do and partnership what guys could about

Steven Pacelli

are and pharmacy [ph] adding access the see coverage. you the We the on give I'll an to Kevin question the update Sure, can J.P. Walgreens. pharmacy that of on to terms progress we're in making through product speak front able pharmacy will lives

path. to So, down continue we move that

continue come they're in the the pharmacy to into put years. DME think, the through continue new how that. Obviously, importantly, that seeing in channel, navigate folks over still trained I've an patients place We're to and the made progress got company to channel. there. that accustomed I we've we've existing business come through the being to good

with the out the existing new what bit coming see the that on slowly So, DME shift of base gone and patients. in has pharmacy than a more we

the fully we channel. So, over anticipate pharmacy business through be that time the will model

We push and organization to continue making of go. a lot room still there's the runway pathway us. a good ahead to progress. of lot Still we're down of But that

and So, here to to about time focus get we'll talk continue I'm on quite sure. it for some

Kevin Sayer

with And Walgreens a a been ours for has Walgreens announcement, respect that and partners quite of to while. good

distribution as our days outlets technology patients, fact, Walgreens started get pharmacies pharmacy one to access pharmacy via for benefit. could the the we easily in very best specialty patients was early our In where coverage of

meets our from other the patients' with all and all a very Going and and view have, data and such patients to devices the this be our forward, sensors we they opportunity we other going gather gather forward, strong with partner looking have data the we Walgreens as data time. from the will general ambitions we're their get great partner much We to to we closer relationship. place on And and What patients it healthcare. and data for be working the forward product a together. need for certainly we think their

center. So, website front this, the at beginning. talked you is And pretty about their if they've go this it's how and can't look and

happy. we're very So,

J.P. McKim

you like segments address, the rate helpful. just the then, transmitter, in between Quentin, if could receivers. And the That's on growth delta

the down side with on Specifically, receiver X%.

just the around move maybe do assume So, the so should across pharmacy, if international why people the to into I expectations but with has rates some different and growth the you various give it be products? could

Quentin Blackford

in actually you, as our a for reported the prepared It's pointed And Kevin were question. significantly. they your great dollar an the tell basis, I all-time can remarks, point, Yeah. from a from is quarter. out to patient perspective at second his figures. receiver record new down unit in were in And again the record numbers a levels, up us

So, very volume continued well. to trend

or about over new future, seeing pharmacy, you're as the out is to really dynamic we think What GX start product but move well receiver into a altogether. that the remove both there as for think the start like we product pricing component strategically in iterations the play how about as to the we time transmitter

where the underlying is getting it's the in And a from not value perspective, different placed growth category volume but the ends bit so, reflective a up of business.

these through from is dollar patient to. So, But Volume ever that I to think it that we you're underlying now categories certainly would indicate is the out play in seeing as that anybody been. up we any terms strong strategies very start pricing that's made have perspective. new around you're set growth to incredibly attention it's there. growth concerns seeing strong, pay nothing of needs play It's a and something distinct what how in decisions

J.P. McKim

you. Thank

Operator

from from And the next Johnson question Jeff comes Baird.

open. is line Your

Jeffrey Johnson

Good guys. you. Thank Can you me okay? hear afternoon,

Kevin Sayer

Yep.

Jeffrey Johnson

where Quentin, what versus days, on we've next maybe takes and receiver revenue patient year, $X,XXX kind generate you per launching on there. you XXXX at revenue, more ex-receiver go? the All per looking GX With or per I and transmitters from of in XX of follow-up revenue to versus Trying per question kind patient away year right, think, anyway. year – that what I'll that into thought likely, could from that do are think maybe sensors going of late great. maybe XX XX puts move to conceptually, $X,XXX guys

Quentin Blackford

that price Jeff, we're into not of specifics get point. going the to

payers just with look we negotiate we average average patient per annual down to basis. sit an tend value I to from at on think, importantly, as physicians,

that the payers. straight so, front there And degree putting in see, the there, as to there. of that, you're as you out playbook can to we the soon give it's going that And out we're particularly information, going are imagine everybody

I marketplace. different comes structure that into into we to it. think can than very having the contracts, around GX of thing payers important in It's the how the product. understand it so very the come is and GX move right these we seamlessly know when configuration discussions with today we GX that We're

And so, the revenue does start to change across each of the buckets.

And come it down an annual user does on to perspective. a start per basis on

move that time. we progress the made. about come as So, into very further the pathway you time. of that billion pharmacy, $X to goals. the billion playing down I put has that And our good to feel over anticipated and When we to executing patient right down over out it might front long-term what absolutely being to on of we revenue, the just we And anticipated come the look $X.X would has per know revenue we're back we We're along like. nicely point

Jeffrey Johnson

All bit right. error size modestly Medicare of enough. the with implies rounding as be How on on around about next that about something comments do point that that guidance we XXXX why need in a a put our understanding like XQ bundle XXXX, fourth-quarter finer not that the dollars? in to maybe XXXX? you're a as think, XX% down, into start we thinking Thanks. revenue then. and that we X that XX% Medicare that, And something change impacts growth the impacted models is just growth, year's guidance? little you class or Is your slower about thinking then, think giving But Fair one or or may I

Quentin Blackford

be need I just for in a one us quarter headwind It to mindful of it. going we full year a to now impact be XXXX. of relative will to think you is have as

So, mindful about of we to XXXX. it. get to of to that and it's be end the we'll as want you're going But year certainly start closer talking something the about speak more

think, relative in I the current margin to supplies becomes with actually to in to position the the longer the eliminate it from Medicare us no we're importantly, bundle ability the that that accretive where BGM or provide puts a position channel. having

So, not the that overall, margin as we from in an doesn't show been. going significant needle view to to a headwind but move it improvement. It's way, opportunity some perspective it's become it a the

Jeffrey Johnson

Thank Fair enough. you.

Operator

Margaret And Kaczor from comes Blair. our from William next question

open. line Your is

Margaret Kaczor

Hi, Maybe for guys. me, the to one for little dynamic switching O-US bit. a questions. over the taking Thanks

If outside you long-term market could and penetration really US XX% the are us through three will walk Where outlook penetration? bear above guys and or the two bull you when and a near for case? what scenarios the in above and and XX% be

Kevin Sayer

Look, Western should look Japan I as those that little how it's a is specifics developed behind reason get to Canada obviously, there a but levels think, over markets. and can business, the whole and in give, frankly lagging We're we in Australia we on not the should quickly lot US of think but us, and Europe no Yeah. and Europe to US, our – going the like other time, coming. penetration, for in particularly is penetrations our reimbursed markets that Western Europe when

a seasonality quarter. And network, choppy. choppier. same order to patterns don't one on we've tends The that and tend to from still business the little through said on have the the European be time distribution little the I the European this in DME European be revenues, and distribution the would because our first comment business, second make just deductibles a European it's particularly business predominantly quarter, We calls more and third-party in again that reset

us and we it growth a So, be to the European business spot to a expect perspective. is bright still It's big humming continue great from along. for

Margaret Kaczor

are to time what should horizon towards a guys missed? of is Thanks. and some guys follow-up it? to everything still we what have of wanted on commentary Walk fix doing margin just had Quentin, of guys then, you assume the goal through And kind bit organization over What track outsourced maybe some that. you support the operating little us you And long-term? on on the

Quentin Blackford

from away the think don't I or concern to with added an you call Yeah. being margin goal. incremental any should – walk operating have

incredibly we be from We time. made going it's well we about the perspective, great decision to us leverage are that point and really over and nice a for that feel tracking there

probably I And think I outsourced honestly standard really hold up the the component performed that and we've just well we've incredibly is DexCom There third-party not other learned standard same then we ourselves a well. we parties base difference has is, that that two there's we a hold paths. when with that is operation, what employee that stood started direct the was themselves utilized Philippines as to think to.

question And those us. expect into is we and to for starting to accountable the us to situations, issue that standard to that get so, them we're hold the elevate or that and the deliver remedy

we're think is priority our going it. front here work what be better that our we through we to it. The months a we challenge. experience can better. know say do as get center. resources understand all we're it's can got that's is and over trying It's for team. It a think after and for The We I it. I And few here, patients. reality the is the We've

in that. And and committed investing improving so, we're to

spend significant You beyond now. look at executing investment current you us see shouldn't as to that the rate a that

Margaret Kaczor

Thanks, Great. guys.

Operator

And question comes from Wuensch from BMO. next the Joanne

open. is line Your

Joanne Wuensch

able a like, the pharmacy It taking to you larger pharmacy channel just give update percent us to benefit. head for way another quarter, sounds look the a that were bit you the granted around Are an it, had can insurers Thank coverage want little announce question. to moment? to Cigna I the you any that Or on? move last there more. share or my other at get

Kevin Sayer

You know take that. what, I'll

this come had that we really roll to along fruition have well. we but disclosed quarter, contracts continue to haven't We large that any

in the – struggling many payers look we have having find with, covered One lines how and we competitor the because may things to our of honesty, all we is have have. all – much we're how as at we

be through got we'll I we've not same, we move know to Joanne; continue We're patients programs I'm same is The be. situation continue We and follow getting important – but patients we coverage to just We we're have well to there, we as And really that Margaret, new about where more the Margaret get relationships. this disclose factor, to don't that the want XX%. we our have in continue on – I And percentage. we sorry, to that have. as over want to mean, to – helpful. missed to way would

in You'll see lot the there of a effort future.

Our strategy well them. couple as go of a I've before very and working has before been we gone payers,

out. get the Our and presentation able wanting keep very just we're But has we've been been very we've knocking to reimbursement and the pharmacy get frequently strong channel. them got to to that

Joanne Wuensch

you. Thank

I know Am a there as basis, correctly, I on was this should And something I flat going about? there follow-up, right? calculate your international sequentially. revenue broader looking a Just that on if at is

Quentin Blackford

Yeah.

You're think concerned particularly looking be I need correctly. there about. you don't it to at anything there's that

from it first falling is the time. think, in sequential order into an third of the matter the through point the quarter, accurate. two, your a or cross through I channel. of market half flows can coming a or I time second point is perspective, can Nearly quarter To earlier, you, still lumpy quarter tell over this Steve's business. And or to distributor from it a in

would that little So, quarter second played the a did out in that we change that have sequential that trend. bit of

consistent I important is markets. think It's adoption, seen. you new performance in you at in patient what no There we've look existing at that with change is, patient thing look when trend. these the

you more sequential So, seeing I think a you're from timing perspective. look of it at a when issue

point just other think thing, first in this had you've In in in the more quarter got what terms you the is, than of second comp quarter last lumpiness difficult the meaningfully I year-over-year, out the just a I international again, demonstrates of and back incremental QX think, in kind that business, of growth versus XX year comes which, points nearly in the business. QX, up international showed of to the

the So, is and to nothing still there. playing new out adoption in still run. quite international patient overall we opportunities continue a most strong are business. that bullish market the technology on about lot The concerned probably, lite, are incredibly room to leaves the of of We importantly, which our be

Joanne Wuensch

Thank you.

quarter. Another nice

Kevin Sayer

Joanne. Thanks,

Operator

question next from from SVB. comes Antalffy the And Danielle

open. is line Your

Danielle Antalffy

the for that Thanks Hey, color the quarter. guys. more in headwind million you've we good far a How year. taking for I really, guys expect much so far? year-to-date? I been have how that's afternoon, pricing on hoping about on a you follow-up. could little really incremental was you the question. Quentin, give I talked bit And so another second And seen should $XXX much know thus half? much strong the Congrats absorbed

Quentin Blackford

Yeah.

I was So less we commented then think than that the the a you go $XX bit back quarter, to million. it first

on closer was basis. per on with would in it's $XX the we've I had commented quarter, second tell million line right to quarter a you it the that expectations. in Here

we think in to that the back the a bit. of I accelerate year, expect half

us to channel. Certainly, importantly, think there's to I bit of around talked pharmacy playing allow a for our dynamics couple out. intent come open to big priority into very price a that is move down we've and the a clearly up the

That move we're a You've play a then, as access the willingness headwind easier seeing product the even create technology. bit And to opportunity with into a got also continue the payers think, a – rates. and to to there in Medicare well. will of importantly, bit revision and to DME their channel I and

willing we're going to bit over down. it's price so, time, in as scenario of to walk knowing well, And itself have give that, that to a

and because you're understand the negotiations, negotiating happens play willing in those can of glucose paperwork, of for a to pick less easier levels. what patient, that terms generally, bit technology, for the to are in are requirements we is concede have likely to the So, make we price if that, out. certainly Those less easier volumes seen we up that that kind are we things logging access

back half into incremental That give that back the on you well. half first. in the color versus So, should we've got baked as price some the

Danielle Antalffy

then, at you about, million, take consensus follow-up outperformance. have? year-to-date And yet if do you level know raised the one, I talked guidance pharmacy driving You've outperformance, And a been helpful. like, of can $XXX the high-level. this been not that's driving just Okay, the has it's $XX want is that's curious to talk my what visibility Kevin, if what you been necessarily million. beat I'm – don't but about but by you've only you

would expanded some last like you expect. sounds as at all? a how of have Thanks. I quantify much expanded And level into has your months Like, something? it's visibility it clearly you addressable XX population a by patient So, increased Could over that, access. access or actually the has percentage of certain percent

Kevin Sayer

Quentin I'll walk And You if and want to. what, to through know welcome have they Steve add, they're anything that.

couple there's think a factors. I of

of what has more Many are become marketplace. and it our I huge can now factor than aware people in awareness been do a CGM ever think have before.

ever better we our CGM As awareness marketing our responses brand we've are much, research own much do and seen. about and ask than awareness, the

I learned would helpful learned it and GX that have you is tell that all has can a they Patients does. growth. experience and our about deal. the big in have been This GX extremely also

little other new Tandem pump helpful that's with growth patients The an international integrated driving in There's things. been having system. our the It's DexCom. certainly to approved in markets.

Oftentimes, And in at old like it's I we interesting. days. growth, Steve. the back would at look look

is is growth? peds? and about what recently, Medicare Every us, is single driving And driving line growing ask peds growing. Is would nicely. then growth? growing all segment You business Every

at both look business, and they're Commercial peds you adults, growing. the Medicare business,

CGM much anything I that very add something this fact really if to it's the know on people else Europe, control to at manage board. and they across you really the that. you figuring guys that It is by look don't driven need really is have and out awareness want You you are diabetes. their

Danielle Antalffy

much. so Thanks

Operator

And from our Lewis Morgan Stanley. David question next comes from

open. is line Your

David Lewis

Good afternoon.

me. for first couple a for Maybe Quentin. Just

So, first you COGS think offered the could be. specifics ADA some around was qualitative time what I Quentin, GX

can levels specifically, down scale. providing do and What that How kind you qualitative of you confidence at a scale your competitor things. what's define I now want to I There's GX think, just to COGS you perspective of are? driving in said, commentary? a couple from those kind revenue sure. think get levels make you of think

Kevin Sayer

cost able beginning I'll to the target. When the not over electronics, are But, we processes in as done battery, the we're anything to GX we when to put going That that, manufacture. but has We manufacturing of number different of project This lower been cost table is a not time, even think been at meet. was everything our back ever insertion aggressive David. XXXX, at the in the at implementing we've rolled here thing be when to Kevin. in know didn't before, going we more the in But and very designed target on forward. It we'd designed the take way. designed target. than the to has things we only was reliable the started cost that system, we'd hit a look cost perform parts standard, a that march manufacture the that out in to door it's we one been

get can very we're So, lower confident COGS. we to

as I manufacturing honestly, said come as to Mesa COGS, the our as year our in down Quite out capacity plant, get next significantly and and yesterday, meeting fill volumes going are our well. GX to increased we we've

invested very done. completely the plant GX get and we'll moving San dollars as bit tough than insertion hard is little to we keep ever side, the working that in different confident more But there. anything as are COGS we've a direction. we've Our It's And fill designed but expansion, get we're on Diego, time. in just taking expand, just right before things the

David Lewis

Kevin. very It's helpful, Okay.

The is just second coverage percentage. thing pharmacy

is what XX% said I number think at Can they I quarter. that you this think XX% of shared you your quarter. today? that us last one just update competitors were

Thanks just much. guys be the could that number sense and you by are in give what year-end, perhaps you so a where So, today? of percent from a will in us that just sense, come pharmacy what scale number, revenue year any think And now? of through

Kevin Sayer

and I as coverage what a a as into from can set that goal. is I'll certainly that's certainly now, XX% is think want be This today. the go far We I Kevin. range would shooting from in than we're easier now because year year to for. a

more we're a one of XX%. But market above we're but today, I others what far We've as don't a calculations. David. I've gotten some at are comments, I was these And we What comfortable above done we last on do in some lot of payer. heard earlier gone XX%. number for we basis. see quarter, have, we is are. regular have, said our better it number know a we where contracts. As It you, through than perfect the don't lot haven't the there's – the of we each I've We difference. XX%. like where have we've rest this heard

lives So, different. It make. compute the to making want our progress we maybe we matter. doesn't that We're

reiterate becomes through, over I'll as and of day, obvious. never far very As until percentage it our the we much business – it end going Quentin's new the our percentage there. going all disclose comments. the won't are patients of very our We becomes At

relates going how DME. effort major there. a the a patients past, they this being again, with but to launched to existing time, process. to move over the process just There's It's get comfortable good them covers we'll in there. going to that have people And in We things take be having insurance

Quentin Blackford

a or or Yeah. building today, business DME XX – XX last David, just to Kevin years earlier shift preparations we as we were in our going talking XX XX and out, spent overnight. pointed not big years the it's

used Our processing patients existing force, our are to their field business. our sales doctors,

going shift because to patients pharmacy every time. pharmacy see obviously, who comes door is in much coverage, the pharmacy to to some we're, So, if patient the but have over taking new quicker base we you'll the transitioning see new take DME to

David Lewis

you. Nice quarter. Thank Great.

Kevin Sayer

Thank you, David.

Operator

from question of Steed America. Bank our next Travis comes And from

Your line is open.

Travis Steed

a great again. quarter Congrats on

a capacity strengths, both and from patients. So, about you we've from lot heard

a sense a the actually been second double adding So, get see factor patients how of as what year wanted to half. you tailwind limiting first could new and for in the a much you on from capacity of capacity in the you've half

Kevin Sayer

a wise for the wise patient shipments of we that quarter, the of And direct that patient have start. We is the things and literally delayed on bit. timing tell capacity. new don't and many end The we've can think patients I'll at much lost was books. really everything pretty issue we we've

some the processes. in we the go a capacity That's the running we have year, year. got as that it new The double is rest by will of double to we've capacity, not through goal have process the ongoing the and place of end

the those over For running. things example, the And Arizona we in GX here fully least we'll at up automated really GX and to Diego San exciting, is running is it and lines have then for up replicate next to those our several in process lines first get fully me over months and see. automated

the Over again, year, the a see capacity bit of of the still. course is you end just can constrained

Medicare the launch the quarter. till fourth are We delaying

other have the out international to want coming on on immediately. And markets second this in some in European Canada the swap want our We existing is half coming of in geographies We as that not Medicare there but with and GX well. base. are year, to our we patients, GX be those particularly

the year, of good So, a in a still the we're things constrained it. all think, we'll to bit we on would by And be like but we very place. do, the end through work we'll

Travis Steed

versus first things? margin? half for by you the other committing that. the lower margin that ramp Anything transmitter the can in confidence on QX. in is us that range of How approaching Quentin, still from to coming the XX% Thanks back the gross cost year, low and of And, really Great. on much give gross XX% half

Quentin Blackford

question. lower transmitter. the to tied that our quarter get range ability cost vast Yeah. great Sure. majority It's a And really to is XX% fourth the of the in

you what QX want see in saw you plan probably what with somewhat over to think I So, will to step is QX be. line QX

think quarter you'll in fourth of nice XX%. and you'll improvement the that to see I then same the sequential improvement see kind

in lines In low a off our trying little to that cost first help got you confident units of more number, we've speak. we production the as confidence or become bit terms deliver of

They've Mesa. So, Diego. producing off lines San in them come we're in the

high We to in confidence of that ramp it. a degree and being scale able up have

our And high is level that confidence numbers. these to can so, get we quite

Travis Steed

Great. Thank you.

Operator

from comes question Cowen. And our Doug next Schenkel from

Your line open. is

Ryan Blicker

on Hi. Ryan questions. is Doug. This Thanks for for my taking

or a I XX% expanding you anything anything in say? believe this progress, intensely made steady commercial II Do represents the for to more quantitative patient within How making progress XX%? of have managed Type talked coverage much Medicare labs population. you payers about third of of specifically? have Is US. can coverage patients You commercial close

Steven Pacelli

that a have great answer a I don't know question. for specific It's we you.

we to greater the for as to push the pharmacy, the access continue progress, make for move of pushing at to We right Type certainly top list. managed is X intensively

Kevin Sayer

is, give past, sometimes our was you an I not you couple a and the of And back our up to pricing years, our contractual give going Type That's in as Type now. in go X things example X one access the give for would patients access of discussions. better could on we

for the others. us It's having of get Medicare to say, aggressively a Type been this, that payers very X issue and pushing CMS go users the honestly, guidance covered. And been insulin are if has look, quite type helpful catalyst us. to should so to We get patients for

So, not yet. we're We're progress. making there

Ryan Blicker

I That's missed I And this. then, Okay. apologize helpful. if

around on that Thank you MDI year think, system talked out little patients track decision along pushed with you. launching or for a previously, partner I a pen or had support year. late about a this has that been bit? smart next early Is still

Steven Pacelli

Yeah.

it's first CGM in CLARITY together our – our together will system. pen be commercial data with of doing smart launch really insulin with we're data where So, retrospective Companion, review right,

happen to insulin this display of real-time later could first asset, part or year still respect With that year. the a next in DexCom of

but product look good progress. that what We still making and been what we're and haven't specific with who might like,

Kevin Sayer

we sit to driver don't today, a nice view as I'll just as here We that. being revenue add have. to that that

Operator

question next the comes Bradford And James. from from Jason Raymond

line is open. Your

Jason Bradford

Thanks.

couple a ones quick Just here.

I the to to COGS and new there the features transmitter, of In benefits benefit users? are but realize DexCom, terms

Kevin Sayer

to GX the existing transmitter. identical It's

Steven Pacelli

to direct couldn't Watch I this go we will new configuration. add, until Apple But we got

and such. is But far we'll some understanding is a but better electronics it's it's guess longer, the on as there a So, huge range and the bit use firmware that in some new not that's I performance, to my be as – change. little features able get

Jason Bradford

And to flat want then, commentary, sequential. to of the international the kind back get just I Okay.

in see Did seen goes And I dynamics market in have direct through mentioned You you distributors. question more that you the half the business? consistency business other Europe? the is, guess, any change from

Kevin Sayer

Yes.

direct That forth. business. more different. upon the at bit so to user, the they'll a recognizing little the replenish inventory is whereas, end and cycle distributor, inventory see sale We're do take where consistency that in generally, revenue we positions revenue fewer So,

So, bit in more than direct. in distributor you lumpiness you the business a get that do

trends were patient we And comments continue nice us, market business, an changing, very end of be international terms patient The what we've to for pretty I seen very continue overall earlier. of existing track anything numbers the or trends in as clear terms good well. international think the with new no. In perspective from historically to from looking overall

bit a And – to I lumpiness. of back so, a again, come it's

You've got have going in it a quarter tough to international was even as Honestly, third comp was in Last well rate in third year, quarter growth the that a tough beyond the comp. business. QX. you're what

to here, it. We nothing for drawing I close see you the encourage you'll the think dynamics that our is and we patient I quarter. in it with understand again think then So, another to very start We and again see. up what this pick very quarter see fourth But concern. stay quite unusual nothing well

Jason Bradford

Thank you.

Operator

question Raj our comes from And Jefferies. Denhoy from next

is line Your open.

Raj Denhoy

competition, late delay here. on Hi. figured calls. but approved? it's We're Good to anyway competitive right? call, most on on updated and asked that's X.X I So, product product conference or getting landscape do Libre been about the approved on you still question for I'll guess afternoon. just that that any get ask guess really the I thoughts I in the waiting anything the have

Kevin Sayer

that And ever deal dealt there with not comes. here it to get don't. We've when No. that since been we're we've competition We time. by going with and we'll

add. So, we now, anything don't have to

Raj Denhoy

Fair enough.

see we're question, ask mentioned I your know adoption several guess, over And, CGM. to I expectations into just really the growth on insulin my your year? the of your the CGM you going delivery first I pump that For to could start around next next to systems automated you Do second with some thoughts any wanted do what – have partnerships. about to months, or

Steven Pacelli

in QX to I'll guidance control, in would latest launch is but they're of year. this Kevin, that system public somewhat their defer

with a running GX be the So, that'll XX algorithm pump. on Tandem a DexCom Dexcom/TypeZero sensor

I already who their before, with that GX taking system beauty able the system the are of the will of said that is to current upgrade Basal-IQ systems. field the be architecture As Basal-IQ patients with advantage of –

existing systems we're said automation, GX already reinvigorate, already seen. automated Do get in patients. the a be market? number So, the think – many it They're I've of system. that joint of their of It patients does. are growth these on this I as delivery does insulin using pump optimistic we to remains kind occasions. that more reaccelerate

Insulet, the we new extent, therapy, attract benefit so, of patients Tandem, that's into all a And to it obviously us. for pump be

Raj Denhoy

helpful. That's Thank Okay. you.

Operator

And from Chris our Pasquale next question comes from Guggenheim.

line Your is open.

Christopher Pasquale

Yeah. gross about Thanks. to on margin. I the Quentin, follow-up question wanted

You XX had you XXXX, out about talked thoughts [indiscernible] on in the next ongoing the not update XX margin just of sustainable over pressure. that for to assuming course pricing Could shakes gross where months? given one you

Quentin Blackford

see the approaching get good Yeah. that we number into we're going Obviously, the again, you And about exit. fourth the feel where not Again, yet. expected expectation very XXXX range. for setting XX% the quarter to to just is

channels. headwinds could be We're trying bit bit the pricing that we navigate are giving a going be But actually potential think that to continue are towards of like to the to that I very about in we of from is have We So, to continue from perspective, a margin without talks a it topline, CGM accretive. the supplies, headwind the transparent the us. Medicare a to a but know exist. to fact front feel we going pharmacy

that as that year should range color XX% or at don't we to you end get exit anticipate year. more the the give think in I we'll to So, But QX. it closer of see up start we the being

comes a from I to pricing talked the component. headwinds and that's becomes but the model bigger starting the things of pressure point, as business, fine a shifting start that we about mix that even the think O-US in

any work can It's into to but at we're yourself too point. going more You specifics than number, a to that give early. not start this

Christopher Pasquale

the And piece duplicative how over quarter trend it by come math. Does if the does math That's that little stay to bit Does in million And year? the of then, gradually right cost fine. half in that helpful. was it talked like $X you that the my in the That's ballpark? on it a here, do out? of back I Is $X million looks there? about about,

Quentin Blackford

you're to you. think with bit be little high a I honest

you're off, meaningfully but bit higher the not a of You're that on end is. where

that We to per right think half starts wouldn't down I But that alleviate a bit the in of annualize do So, and at se. the you're path. year. look getting that the that back

So, in we let that capability would that to before here. said demonstrating one of resources be ensure and the stood now go we facility things that careful that. have we do are our was, the we we about up would new And we very

We have or had go resources wave a of two.

out QX. continue play that to see in will We

year. duplicative will the costs in the back to step so, down of start And half the

Christopher Pasquale

Thanks.

Operator

question from Steven next Oppenheimer. comes Lichtman from our And

Your open. line is

Steven Lichtman

expect model Do moving large overall your be on you latest Thank the you. you thoughts GX, latest term? that within non-intensive usage your Hi, move guys. Just wonder intermittent can just continue population. the to you to us into Yeah, patient as on toward see I use? if on it still how long channel update thoughts you

Kevin Sayer

we had of can cost would a would I all reimbursed that going whether is model from patients reimbursed the patients a think going best they if wear it. those type to be to perspective. that issue be term, time, device Long wear The and becomes what it's serve

on we're different use. use feedback of And interment you of tell on GX levels is and at give right can going where aware I of programs three you interment least now.

months Some wear for straight. three

wear Some one.

wearing a we there. difference work very with can on we're will model learn that ever been we the depending anything drug. in continue We're people, patient the from big Type And and ever working, any one X they more with right optimistic upon programmatic the payers in such, these and to They outcomes in exceeds than for that's the develop Some month market. those where pharmaceutical parties introduced are. business patients platforms a to product any wear the sensor that our in make model. And GX

to this. from So, confident the go. It's use to be And lot app wants reusable if three-month track product a to when to a we're away wouldn't we walk [ph]. a can just lot. difference, an we're opportunity ready, not to the we're learning Quite live we committed resources honestly, GX. yet model but with somebody transmitter perfect But very huge business developed. We've a of we're has make a ready

Steven Lichtman

when Great. use Thanks. Steve, was you That's opportunity on that think provide helpful, and becoming start Japan a you on update mentioned Kevin. could And then, just you wondering international, I and not an just personal if secondly, professional can there. just briefly. you

Steven Pacelli

regulatory Japan. Yeah. We're the aspects in still working GX through of

version, the with professional Japan a remember, So, GX/GX you in platform. we if launched actually sensor utilizing

GX tell would end we're use hoping first you this I year, in consumer part year, as I'm So, next probably the direct-to-patient it's a before but launching product. of the – sometime not of probably

Steven Lichtman

Got it. guys. Thanks,

Operator

And the question next Securities. from comes from Kalia Suraj Northland

is open. line Your

Suraj Kalia

Good taking Thanks for can my afternoon, Kevin, alright? everyone. question. you me hear

Kevin Sayer

Yes. I hear you can fine.

Suraj Kalia

Perfect.

is XX%. asked. us math Quentin, this about the QX in been take have Most is QX up you is, be here? questions you XX% Maybe Can the to all have and XX%. or to know suggested question. least it of one blanks going just fill then steps margins, up thing have whole this about Quentin. I for give So, At help you better to stepping consistent – positioned been the

going step Because that rough my the be be question. right math. just transmitters, plus So, the am change, ones cause to How Gentlemen, for should to getting XX% you taking are I a that additional Any appreciated. some on If have that would those I'm thank that? margins I that? XX%. did fill-in-the-blanks think about to gross are we they greatly not

Quentin Blackford

ours. will is don't where cost be. of specific from what I have than But costly transmitter, margin that particular is reduction – never significant. it we've I to the given we you product tell it magnitude less in was, think gross orders Yeah. of Suraj, profiles any used of that It

out process job. design meaningful was you the operation give team also a Really and combined generated an just was whole but incredible manufacturing very to going the cost not teams the a did we're The product. the a incredible of R&D designing reduction. in that the but It team effort perspective, it from specifics, So, benefit. team both

Suraj Kalia

you. Thank

Operator

And will that final I over now session. question-and-answer concludes to remarks. Sayer back the Kevin the for turn call

Kevin Sayer

for haven't that of one I X heard haven't over at Thank years for known kept and talk you, thing again. my up I over have me about my numerous months. over I eight there finger just six people same I've literally met other Type coming operator. a and pricked diabetes. want again. who months ADA that the number I to finger I to pricked over for theme recurring

story a first scales shoulder he them many, many on in she from or and for years have fingers patient on his his said rubbed rough. wife weren't who said one her didn't I heard the time

Other my use. easy to been patients because never just said I've it's life healthier in so

and of physician actually the to have as GX their we well-known the because one One on were took responsibility their me of only anymore. to a all make aware opportunity diabetes now finger his patients no right pricks company manage

to to and be manufacturing operation perform to and have But technology, the on financial meet stories. really the continue our that assume good we we on side. have great can to goals are responsibility, These type of we side, so

do things are have There we better.

address our all service, experiences will get have patients with customer and earlier, particularly we said of we that product. in our service wonderful our Quentin line will outside As area, the with

continued especially, physician patients, everybody's community, our appreciate We support investors employees. our the our – and,

first performance on of you. the going and performance this sustained the we over Our think half had a light only excellent Thank future. is to had year in we the happen shines brighter what

Operator

and ladies participating disconnect. gentlemen. concludes now you, you for you conference. This may today's Thank Thank and

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.