DXCM - Earnings call transcript Q1 2021

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

Operator

Welcome to the DexCom First Quarter 2021 Earnings Release Conference Call. My name is Adrian, and I will 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 that this conference is being recorded. the to turn Christensen. now will call Sean over I Sean, begin. you may

Sean Christensen

everyone. and DexCom’s operator, you, Welcome good call. Thank earnings afternoon, to XXXX first quarter

progress. CEO, initiatives Financial a our on financial with; Chairman, and Quen outlook summary begins Blackford, Sayer, Sylvain, review and then our who our the a Jereme and from Chief of by agenda Officer, a and will Company’s Chief followed Our progress, scaling Operating from; strategic provide Officer, Kevin President DexCom’s update

prepared will Please review for that statement. available we our Investor your on Events questions. quarter there slides Relations up Following the call DexCom the first and remarks, open also on safe our [Operator note related let’s Presentations our harbor the website that, performance page. Instructions] to are With

presentation conform forward-looking as results. to update any after make products, the statements annual expectations performance. beliefs and plans intentions, in could actual of the XX-Q statements as implied call the report actual Form DexCom’s from reflect required to These and competition, may law, obligation and DexCom, forward-looking factors presentation or are with statements, to All statements. these on cause statements in recent available by of Exchange XX-K, in we report no information strategies, materially constitute detailed filings materially such operating Securities statements events by actual those uncertainties, subject to and today’s on or anticipated this forward-looking Some included management’s that are of on Form forward-looking and and results based to those made about any in future expressed The Commission. from to risks this the we differ forward-looking various of these could other are currently differ results statements. quarterly statements hereof Except date most the forward-looking assume date will

considered as prepared reconciliation all to been non-GAAP presentation tables certain for GAAP not prepared results and respect financial to our of with in presented the cash-based noted, earnings measures GAAP. results a will to are accordance in to of with superior directly or not metrics measures and Additionally, our refer that additional references financial have or call, discuss to financial in Please measure. these a presentation we The in first earnings this be our GAAP otherwise non-GAAP comparable should slides information substitute a for isolation the accordance their during most release basis. the quarter on accompanying with Unless results.

turn Now over to I will Kevin. it

Kevin Sayer

thank of first and us. over Sean, you, we total strong Today, Thank you, XX% revenue with results growth of quarter XXXX. joining first everyone, the for quarter reported

to its Whether our it treatment improved significant a or accordingly. unique and insights our benefit comes product. gaining patients These and what We our settings, the incredible members, X being or gather their ability the optimize new as and and that learning from like sources our optimize coming as to tools are monitoring doctors As of are stories control levels hear therapy are stories of about is glucose setting, even increased potential who X And family remote type and workflows those only with drive I deploying continue is we employees, often ability coming CGM in control, And from are clinicians, technology. type inpatient or nurses the better real-time to GX from to their by problems to their and as users glucose of company empowered well. data a into tell down reduced who see burden diabetes who better solving ultimately thrive to responses to great have enhanced GX. customer people empowered we've multiple experiences. disease with

which to sent the the generate of of was our intensively early New all to the GX, years. U.S., across past and the managed featuring that the the us Type non-intensive our that stories expansion but of X program, pride with levels Type and continued including see diabetes, the building our their as couple progressing customer the Level completed to and and X continued were The force for with new like traction able continue generating increased growth growing from over both during sales through Nick strategic programs we of additions significant other innovative the annual This years. number start strong employees off customers only of a quarter. one and highlight includes people to also access in past awareness. feeling We commercial events the gained our for great channels, several have over establishing first especially have Type seeing for a a world. direct-to-consumer the commercial brand XXXX, X providers customers, and seen access many marketing Super diabetes company in we've momentum pictures efforts, in growth represented quarter commercial of UnitedHealthcare's We're DexCom also partnerships We're first of are X CGM. on biggest that efforts, also remainder Bowl are our whom of excitement the Jonas not in in we've

will all there We broader diabetes of And record than be visitors we the The a record in ongoing a confident will also benefits leads ad. and broader in contribute come to customer future. drove our hope CGM community for single-day conversation that to the media that that from access will new website, XXXX. to number we ad are facilitate a help more the we in significantly of impressions generated

in for was In and DexCom all investment Overall, brand together. fact, great according to really advertisers our the company, equity independent of Harris for growth. team pulling led it it proud Super a the Bowl I'm Poll,

to and next-generation the step populations. advancing well a offset both to are we markets grow as GX aggressively GX systems optimistic initiatives X that There path what diabetes. access geographies. positions access history to price we we significant and this push impact us markets, include Canada in provinces are access covering with our teams managed in significantly months. here X diabetes incremental will the near-term. incremental have similar into regulatory of and we new result to awareness, certain with reimbursed confirmation in CGM into positive strong clinical continue Since a will conjunction initiatives, as Canadian and also is and This and begin now deeper to CGM efforts more CGM. In continue broader our technology lowering sensor access we existing have CGM the from the expand the our from of to from expand With strongest DexCom than great growing to future, the in customers This done commercial Type Type our clinicians, to the States. position with reported both United will inventory the and February, system. in private for we received advocating expanding are scaling DexCom for and demand are in is category our proactively the three In over coming with we people for payers volume volumes a believe intensively customer diabetes, significantly additional well public in the we commercial for momentum price we the people that Our internationally, company's forward they last DexCom in

a expect to we reminder, GX less in of a As than experience GX customer all is improve the wearable size. half the disposable current that offered with aspects

We At device this track standard are accordance with for point, in the target of half XXXX. EU. of in the compare Mark working CE the we submission remain to new in our launch the medical second GX reporting for on

on data We early conference also plan upcoming the ATTD at June. in to GX performance present preliminary

trial our and have patients from will U.S. Our ICGM outstanding And feedback the received is involved. well filing investigators also we that underway. support

and to and launch. current as regulatory that trial in we expect towards approvals the keep you complete We progress updated quarter, we'll

our advance growth the pandemic and as global Even continued plans seen year, past have of we the remains strategic us. the evidence over customer with

territories certain we year: our focused the have continued on and communities. supply health that three We service past the our that safety and of our throughout customers continue our priorities spike, emphasized team to cases the seen remains navigate and employees, have to and closures of

our of help Towards a about means company transitions to support customers the am facility indoor this community several the think proud a end, the we I to facility it State to the work facility to thousand summer with capacity Mesa distribution willing the were recently are that pleased This open be of appointments as communities to heat Arizona, the the within mass per months. what rests so leader in our employees and of the serve. service we to dedicated vaccination to whose lead Arizona, has in and it to creatively day. to first

back earnings call already. the Chief Sylvain DexCom he’s for you I'm first our announced a many Jereme? joined Last afternoon. role Jereme to call, come the though to to pleased we his results, to Quentin Financial Officer this we quarter to and want As voice I and of to new first promotion earnings Jereme of welcome familiar have month, I of

Jereme Sylvain

diabetes. we new today work Thank be advance with you, for and together with role Kevin. you as I'm excited to the people our in

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

international compared This and the million of consecutive seventh the for revenue against quarter performance quarter both a of our in quarter reported basis. as million, quarter Impressively, on XXXX, on is came constant the a more. our XX% toughest by representing For growth reported $XXX first $XXX XXXX, XXXX, worldwide of of was basis the U.S. pandemic. comparison XXXX revenue our to currency largely XX% revenue businesses, quarterly unaffected million and $XXX COVID-XX first we our growth of of for first or of

the saw volume totaled quarter, unit first in for the $XXX growth the growth quarter representing first quarter, in demonstrating million We U.S. nearly for revenue to global also the customer $XXX compared XX% of continued the million XX%. in growth business. XXXX,

fourth volumes driver our that rising quarter We momentum. our with Our the efforts was CGM an we in business this first growth acceleration growth believe quarter, positioned continue primary of are commercial percentage. solid to the U.S. from awareness, driving and well in

awareness CGM. DTC efforts Our driving are DexCom of

work new the build collaborative from we systems market field expanded coming with sales and that years connected that love. equipped products have We our customers of with our force, partners to an have

XX% quarter first of $XXX the compared business XXXX. high a growth international to on quarterly a million, or of with watermark, reached Our revenue reported basis another

impact revenue on in certain impact As customer of toughest we reoccurring the comp we compounding lockdowns saw on a growth delivered had growth of greater in new has quarters XXXX, the grew which against effect where pandemic. XXXX, Nevertheless, final international the a markets, of our before COVID-XX model. XX% has international our quarterly revenue three

We CGM are continue access a see particularly growth administrative the reimbursement. minimized in via channel via countries where across to or to broad of strong our e-commerce requirements number markets, our

of intentionally we you technology into executing costs efforts, increased we incremental many believe efficiencies we we not this growth. any capacity. our address. sensor our reduced production are longer seen, near-term no and long-term and manufacturing to will markets have the flexibility, As for impact With we've the previously by commercial to high-risk, offset manufacturing broaden volumes positioning high-reimbursement company access while are Through CGM existing to on we successfully focusing pushing by generated our on deeper populations. increased could these restricted capacity, increased these better price strategy Through

business outlined associated the is to the $XXX.X initiatives of million $XXX.X impact sales the of $XXX.X fact a despite or in to was XXXX. U.S. first is as our channel in result with to material to reflected compared the costs. channel first force revenue of million XXXX. compared for both of Operating mix increase and first the a production U.S. of testament we of Our that first original our acceleration profit the pharmacy This efforts, includes we quarter driving guidance for million, gross of marketing sales doubling DTC absorbing margin drive our work down revenue several percentage operating expenses the of a teams the XXXX, quarter XXXX efforts of quarterly of The XX.X% results. commercial are XX.X% of the the of to that quarter The key quarter quarter February. increase expansion, our were in with and the XXXX in first our in in global expanded expenses

income quarter, or the XX.X% costs offset a fourth of second quarter includes those we the basis expense to position, GX, our We our regulatory as resulting as $XX.X quarter more our or business continue in $XX.X or quarter the development of which services continue the we initiatives. and gross Net To revenue quarter demonstrating is research of in million support million the XX.X% our for data strategic with same as first necessary ICGM facility revenue filing. well-positioned global to trial Lithuania, share. compared in the expenses with by equivalents and EBITDA $XX.X administrative quarter launched general associated our quarter and $X.X GX $XX.X first our benefits we've leverage growth XX.X% point our that look and live a remain Adjusted to our remain financial the compared Operating opportunistic which XXXX expand addition, million of XXXX. we XXXX, indicated, In for to of generate or than or revenue continue now our of with in per officially we in U.S. opportunities. to in for to was great the for will servicing cash improvement. million first cash was large previously XXX scale-up first revenue scaling of $X.XX strategic quarter income end, investments, the quarter gain the margin closing have the in into of decrease investments $XX.X billion million Offsetting from and X.X% customers. in was first

Turning to guidance.

to volumes recovers. higher in the ongoing in continued channel economy some particularly starts U.S. new expect vaccine global as international than markets our impact continue customer We well to during the rollout, Medicaid certain as usual as

of lower to as raise our recent growth to our the customer which first efforts that to as we and the XXXX. to representing strong the full are the XX% unit continues impact over factor currency quarter year anticipate, impact billion, of saw are revenue revenue to to XXXX be volumes, access as to a in With first revenue We in strong GX $X.XX per benefit well offsetting XX% This continue $X.XX quarter well the to between performance, be channels in growth international growth markets of currency. broaden as now XXXX expect in pleased guidance. we and position to billion

to Turning margins.

We operating our be gross fourth year at XXXX on approximately profit This margins includes the of results call. established are targets full affirming non-GAAP quarter previously XX%, approximately XX%. approximately to margins levels; the following of

forward. to EBITDA We perspective, a you XX%. and a continue tax may have applicable that as transitioned earnings to approximately expect And finally, be have noticed, tax rate have adjusted profitability to we we'll from going margins to

over Our to expectation [Technical the strategy Difficulty] call scale Quen a turn for and update.

Quen Blackford

steps as take his last role. and to It's the for years I watching contributions this Jereme. look been make excited to he in role, look next he'll forward thrilled the I him to you, many am now my and broadly for attention seven Jeremy to step work by our also career turn much Thank scaling the you a efforts the into alongside the while of and careers, and our forward new strategic to across CFO pleasure that his organization. opportunity more in

and on initiatives making fronts. are on several strategic Our remain incredibly focused teams our great progress

and efforts June. the at Kevin of conference As we in are ATTD upcoming regulatory and data advancing will clinical mentioned, our set GX first present the GX for early

site have in for In we near-term, grow manufacturing growth committed on and our global production lines forward users broken GX our continue building enable press meaningfully to our to Arizona continued in that more that the GX significantly business effort our system. to our scale in San which includes making Malaysia, experience also Even our of the are launches and our GX to in on established us leading the we we building our are the scale toward progress expect we we customer Diego this come. of the to we to We've customer manufacturing ground goals, As capacity years steady horizon, we base. with GX to support to facilities. as customers GX remain our Mesa, the on serve

have US, from rolled Following this approval first are updated to the retention the levels an industry-leading the further the in reductions We regulatory Net Promoter Canada our to provide, unavailable reflected in drive algorithm December customer contributing to this data our and Scores. seen XXXX. results GX in believe in kinds we in temporarily out we the update and times to of quarter. and that of These update initial is which looking excellent strong in improvements launch they incremental are always algorithm satisfaction are the will

launch pump were delivery we well XXXX, we in access We've options the US encouraged in to their IIT On initiatives insulin well of the strategic that that Nordisk, to as performance as strong market, and to greater diabetes position with results discussed undertaking as international from variety advance we we customers from systems. to delivery quarter for Omnipod choices growing we upcoming Omnipod's in Similarly, markets. using great market in our trial front, the from development the Control-IQ, recently, integrate benefit very their our presented our CGM. tandem's that of for Dexcom-connected the are our this appreciation pump. see these as insulin us differentiated Novo believe in in factor, the insulin continue and to expand the are people well some ENDO Ypsomed, pivotal positioned with DexCom X years system launch Eli Omnipod look key that future leaving stand patch to automated forward delivery to DexCom With at with first Bluetooth-connected more as form Lilly, benefit for a traction continued continue the excellent

progress also our effort pillar of near-term Investor non-intensive making our that we growth market. type the the Day, excellent are in at XXXX third highlighted We to drive X

programs, we as teams multichannel is for digital we've approach themselves. that rollout involves DexCom early access and our with we as program. providers, absence mentioned and are as to taking before, widespread direct As of networks care working This part system of to are optimize well the enabling experience health patients the work see payers, team reimbursement. with the program to the in integrated CGM of LevelX The GX well, continue members using our well expand United progressing as Healthcare that to health

our in CGM over will CGM evidence well X unit, We also builds will our also expanding pilot work Health's the awareness populations of drive including offer This and pool X with worked Teladoc pilot Everside broader are type the GX initiation the while of in This a platform, to believe Diabetes with of utility previous of in from DexCom that access of health customers its DexCcom as technology their with relationship of GX for expand who Livongo use business the announced in quarter. and type we the commercial in several Welldoc. future. the to pilots first diabetes for X a use that market it access there can partners the in these respective now generating screenings Healthstat is phase. with relationships as proceeding years, the their initial clinics. members includes type we at its staff Health of on-site two with for health Each

advantage sensor and includes contribute continue and pandemic. are temporary This for initiatives, growth the advance these use enhance And via believe that, look to we feedback better we as also growth hospital Beyond GX. it hospitals our in we will development gestational we can to you the DexCom. We that many America finally, platform updating setting of where long-term next-generation teams to management FDA's includes continue to market, that research Kevin. the great access I believe feel with diabetes, for GX This to core patient back established from innovative technologies the to receiving we've child. DexCom the registry mother to can across several generating product CGM data and continue the progress. that With that will our for we both allowance of and a CGM the inpatient DexCom the of take build during assessing forward solution as pass outcomes the studies we clinical

Kevin Sayer

Quintin. Thanks,

and a up As execute you laid call we're can to off like on for great would we've strategic out the the Sean? year see, the to working for now Q&A. to I hard XXXX. start that open pathway to

Sean Christensen

Kevin. you, Thank

a the we provide to themselves As time ask Operator, please queue reminder, question this Q&A to our reenter instructions. necessary. and one audience limit if only the

Operator

Thank you.

question-and-answer first So comes Baird. Instructions] question we’ll Jeff Johnson the now from our begin from session. [Operator And

line is Your open.

Jeff Johnson

afternoon, guys. you. Good Thank

officially given Let still growth, about But little so, of the me $XXX headwinds channel there, if into north your have quarters question, of I'll would to I XX% pricing plus out I multi-part put around a mix be headwinds Kevin, as last to or from on look still headwinds, front-end But here I XX%. is think been ex thinking minus, U.S. -- eight grown And it like, that it the of XXXX, seem in bit volumes this a rate and guess. loaded? then exit question. one it's the to when I that it or year, we've fair fair think the XQ million, must well talking at channel six the

well. mix So if from a as of guys. pricing you helpful number, could volume in confirm would U.S. Thanks, just XQ that kind that be versus

Kevin Sayer

that take Jeff. Jereme will one,

Jereme Sylvain

Jeff. Yes,

call going to more a markets. talked on over were we we for little one due about quarter. it aggressive the as So the to little about your did the recall, that in the of a for course you I, quarter. $XX have international more channel The are, thing headwinds is being XXXX the just to the talked million straight-lined if And question we'll was are what it you about, Kevin on bit It numbers be comps. what to mix referred tell we

what mix/pricing And year. so $XXX call we've because takes taken that, the to of account million steps obviously about the into outside we're raising that channel headwinds And we U.S. the aggressive on

your unit headwinds, talked When you growth of volume In and The terms approaching point a volume growth U.S. on the about perspective. the was the volume, talked take terms being well question of mix about, we you excess unit obviously, channel from basis. a are quarter of we XX% of in in growth global correct. that, stronger unit

So you are seeing that performance on the quarter.

Operator

Our next question Citibank. comes from from Joanne Wuensch

Your line is open.

Joanne Wuensch

Can you million how please? very the said, Thank to was what OUS? $XX much. To I just clear, go be much you the U.S. quarter, that in back of versus

Quen Blackford

Yes.

$XX So, down the Joanne, we we two. What of million into from break majority But is talk pharmacy was from channel give that that the or when number. pharmacy. DME we global give global now. mix has did A a been we don't the traditionally about generally number,

U.S. weighted So again, heavily on quarter, that $XX globally the million was

Joanne Wuensch

it's because possible was Okay. that one I'm GX more that the in year? U.S. to clarification. Is the to any end by this of sneak a going for there not reason be

Kevin Sayer

timelines than it of we launch any the will giving not year. the We're GX end other by

conclude on MDR in CE for feedback As gotten our pivotal our we've patients. but We're tell, U.S. working clinicians progress quarter, will the and Time under this from there. with portion from go study the I product. we'll happy the the remarks, of is going with our well. extremely We're and everything happy file. Mark, we'll then in and rules of earlier said We're will filing Europe

prep one great how for call to morning between In me clinician called fact, me this in was. our the product tell this

on so with we're not it, to have we're we but So give happy other very what going far. timelines any

Operator

from from next comes Robbie Marcus our question JPMorgan. And

Robbie Marcus

for wanted taking beat I about talk guidance Congrats in on was quarter. raise. and to question. first the than had more Great. It the quarter, thanks nice the you the

benefited driving doubling us OUS. and force of maybe on company how in expect sales spend and to the what's patient Super And assumptions could so you trends DTC early comment XXXX? So versus new the through the your Thanks. if and at all increased has far Bowl that what U.S. walk and

Jereme Sylvain

Sure. Yeah.

was it. The currency. approximately can we So you was walk of million it raise through guidance $XX

referenced growth, currency of the the So tailwinds we volume expected was of the with both first quarter and to balance on related associated foreign some the year. half other the in

we patient what adds saw, new adds patient the quarter, of of of terms were slightly in terms new In in expectations. ahead first

that's year, certainly, of the for really the -- look the And balance the those through customers, play to year. obviously, in of as we repeat so balance revenue

And so we've bullish the a added We have strong to We guidance. that still expect year. on still are year. to the very

was to allow obviously result, program product, I I performance a the as to Super if ads not force of there the is any that's Bowl DTC, sales as fact U.S. you folks think the And that a I there. of new think to play think sampling a there the trial in see think a well. garnering the as really of starting to starting well through, is seeing to you're question, question lot lot ads second which lot – the interest mention have we out that the we your

you think support is for that's the So raising do the you'd momentum it of say guidance contemplated all we raised And it seeing to lay out. by. think continue I as balance the year, are I been what we what in the

Quen Blackford

And Robbie, access, in I international see the the add laid the some we're year markets year that markets the to back in that of markets. what new of five larger in to continue these I opening up do thing to would just very Jereme you're are on as nicely to – one decision times going is, respect with as six into remarks, our the number half perform we that expect accessing the than prepared patient to had coming I'd out

to. that where about excited new very patient potentially goes So number

Operator

question Sandler. And O'Brien from next comes from our Matthew Piper

line is open. Your

Matthew O'Brien

question. Afternoon. taking Thanks for the

pretty on a increase. a to over Just in pricing $XXX $XXX The now. obviously X commentary. Germany Libre got follow-up million meaningful million is the We've

there a You're more terms talking is it Libra OUS, access. to that broad I launch Is of being of And aggressive be can does in reason you're X? a comes aggressive – right more then mean, the offset that US? function does say to more of kind increasing over pricing You're now? that? about GX concessions with what when of And in trying how a I GX three there? about that lowering front pricing. think, why for the

Kevin Sayer

than made X, a in done was what We've what example, to the came before. approval, Medicare based at increased what we accomplished by lower pharmacy here, Libre We've at going for we've is our decisions access which price channel price Matt. we've at in the not looked US our looking by on DME

in pricing we've the access our to have geographies than access Medicaid then enough. a pricing structures is had and what, we broad looked business set of yet increase US once before, key our to said, in of a number you that several up, again As know We lower at not our what patients. but structure are OUS

focused or or children patients. us awareness Our access lines. more on intensively pumps or type hypoglycemia to very it's to reach adults much just is very oftentimes something incredibly bad adults with those important more with managed an Xs, And along

We'll Libre in we're the as we've strategy taken won't used the deploying drive our places We it US, increase drive our to well X and own. decisions. we've other our let So in access.

Quen Blackford

US channel, we're is the part much thing we're you. that important in one where to of in is strategy and with the the think always honest been It's there level be to pharmacy to at very global pricing our I note line with pricing point. going still

the as we We're ever best from burdens been We execute against know to in got had down to in that the product. inventory reduce global we've now the to strategy. get on we're just now. a availability we've that in perspective. position stepping pricing So We're continue position to

where line heading. It pharmacy US of you in is elsewhere I part doesn't very the pricing comps. create globally. were Like mentioned, with this into right it's get our much we if risk So

about this excited what to So has potential for us. create a

Operator

And our of Bank America. next Bob comes Hopkins question from from

Bob Hopkins

ask question you I was things. wondering two Thank just you I wanted good comment GX. Great. and on afternoon. on to if could a

was just we're the happened something when meaningful already. be? Thank sense wondering on First see was was be could bit see little more we're to how to Europe? I there Mark just just thing, do and CE you help give just you. going just then a And upcoming happen might clarify, you detail data in us thought great. I to a if of that expect maybe I or to GX, that And comment might want that file going on secondly, going it would what to have

Kevin Sayer

GX, not have we Well, filed yet.

will We we future. in need – want our it not-too-distant all a row. file ducks in the to We

file same the For the the app example, not both to file we and do and iOS one then Android time, another filing. want at

comes and exactly I've product and be other when when and of that over are is feel the wonderful with of verified file the all made software, studies we'll and the the sure not making we the how the authorities use And some to performance to to you'll direct the of when standard is the in GX, of to going will Obviously, app consistent of is But be over. believe, from comment times any do all love is that's is shape. system, in, The tasks. you several only about data and present but we're one said done, really and don't on features a clinical for it questions. We to in with happy will more ready I'm feel part we'll with and spend data, the we it. and our pivotal how respect everything bigger twice going patient. go it had the going happy how product smaller to we've validated set the on our ready. there, with love GX. and of how you're the that and we're the market, about we putting With performs Ease we're see in about So wearable we're data that lot real not data software smaller done. as and spectacular be good our summer, discussions time US filing, that of obviously, we've and but easier answering the insertion want the people here to again, there, it, we're on a team. and It the

Operator

from question Kyle next Canaccord. from Rose our comes And

open. is line Your

Kyle Rose

I Wanted obviously, about few you mean, in a in very U.S. Thank talk the still much. the the commercial Great. of initiatives to program. early sampling

the on of shifting care. of You've and the just to the some of kind sales more focus the force completed doubling primary

initiatives the understand can do And out for help have we just there in initiatives execution there just, maybe move XXXX? on us about help sort So QX those played we of to frame through the how And metrics, QX? think is some early with any respect post as that me early days, or any early us? and how into those you are the goal of

Quen Blackford

then any in to a going sampling at itself, we're tell I'll it particularly aren't physician's Sure. enabled expectations, to to and these to patients to when the our hand our how metrics easy has product. both patient how that over perspective, although of perspective been you, we've the PCPs just to they sampling, into the this beyond quick then also of products will just response Dexcom is Kevin from get hands take I here. and it a There easy shot realize use disclose, of early program the from a and

the of be to program sampling you, something It will out one we gate. of will terms been I what do that will the the make we tell specific big that's it's point. not do. better look of continue around investments of beyond has metrics a at But this what coming to imagined into part we giving future. in the we So it,

Kevin Sayer

With I'd everybody place. to the speed. with And were add. that. agree added respect getting to is in sales we've Yes, up everybody to Everybody's we going force,

because do people already we've with so the easier, down Others, There's people. from are of ability But as speed we great on expansion. to from on these have they diabetes far get some a all calling to came it as our to more in going background, voices, take another learning in it's they call in we offices, a established this And from little Texas. underserved and for been respect plan relationships as fairness, we company. possibly longer, to that, that story we while heard a

-- they know people nothing about about said, come physician to me of One doctor I on them the your your for our talk a product or and it. reps and on product. I've our called competitors' because put product, ask and

we'll So he's physician again, with DexCom, using now that the Hello sample described Because DexCom Quentin introduced program the evaluate deeper with what the prescribing had. we've it, time. done, got that reach. to experience over we patient of the get on time. a deeper And all to reach and put we've on this system, that patient needed metrics We'll salespeople. the continue our and We tremendous

that also monitors commercial we organization understand while speed. very But incredible get it an to up takes a that. have much We to

can you jobs. culture have that. qualified expansion, of and is that about hire. apply very of I a thing and maintain and we to represent, want these that that continue we people a this that great want place want they did other very, people for This literally thousands The tell people work to not lot we a really And product to

Operator

Matthew from question And from our Blackman comes next Stifel.

line open. is Your

Matthew Blackman

U.S.? incremental a will or Thanks price question OUS is And headwind that million that's on for but pricing is year on the range of million, called about these XXXX, also taking my underlying think then think face continue raise I price. out $XX you of I strategy if and half the isolated Hi. $XX in multipart the wanted said Good follow-up of here, about headwind million afternoon, you full to beyond question. outside $XX I guidance to of the everybody. -- the But outperformance. XXXX headwinds another sort about

closer on underlying say rate is Thanks. to it, So is the to, it basis? $XX call million guidance fair actually that ex-FX an

Jereme Sylvain

Yes.

question. So good

step go let's So by step.

international the the outside of is So in majority terms the our of raise a your question U.S. pricing, strategy on

seeing And headwinds incremental of $XX is what right. in by as are a of, which you're taking it, there. we face did million result million, still of call We an the And are guidance into million $XX we going you of that mix currency. was $XX yes, so -- raise

incremental, that seen have $XX you absent yes, million. a would So

pricing those we're an incremental to pricing volume. Now and going we going up for headwinds, be are and taking those headwinds taking to be making

or to But neutral net guide. patients you new our correct. that of taking increases full year year add because to full that expect we it's, it the point obviously, Absent So are outlook. where on the strategy, strategy to

Operator

UBS. Matt And next comes question Taylor from from our

Your open. is line

Matt Taylor

Hi. taking Thanks the for question.

Okay.

those possible and think, salesforce, momentum the more the improvement. which just to sampling So still say, is all come, the about more you was you I'd contributed to or is called like which you to it ask impressive, That that? one Is for to out U.S. just it and DTC, of factors. And of equal?

Kevin Sayer

think more I think they're come, all and I equal. to there are relatively

growth, that out the created getting text all the we than goal, that our it sitting more anybody a effect from else. really It our awareness cool. the and minds, the hadn't called had just Bowl the developed as and really technology brand before, is our about. I lot was worth on the met made was ad couch was than industry the We I'm Bowl, the talked years awareness from As saying, of this short-term I've really equity -- we call, the hey, ad executives company, of on over Super the awareness messages for during just we I sales more in generated, Super

So that to important important. was DTC The us. remains

Nick is the certainly needed relationships. more But As campaigns well. having it you of And watch with feet it. our see and on other as on time We top to take certainly ads, more will you'll those develop then that, good. street

the that will less out extremely it helpful reps Dexcom but three, were expansion will I got the of of up force and the ultimately on rest And Bowl just because couldn't Super the sales one bang throughout of work I think then be ramping them, Hello we probably We of but DTC I year. this. in think and the ad quarter, that the more the and quantify probably first the the biggest. come was

Operator

And our James. from Raymond Bedford next comes from Jayson question

Jayson Bedford

good afternoon. Hi,

question. last Somewhat similar to the

be gone channel of function these initiatives? if know a The U.S., helpful. first seasonality. or a of the more some perhaps from new is that better in tough seen the there's that the function quarter out, I strength that just a that but than much shifts it's I'm this to of question, historical you've parse on business, way new any would wondering, momentum just

Jereme Sylvain

Sure. Yes.

question. So good

in bit the a as you're pharmacy. a of and change goes right, Some of to and in more shift dynamics, is that absolutely more

that slight if seeing did are see QX, that customer utilization. experience you we team a dynamic. neutralization, think a the we One is attrition, decline slight the thing in thought doing our saw a is was testament increase we you quarter, work and in QX certainly will, it to I of and this

as increases create through been talking it. and customer experience Scores. That's to so we've starting Net to we're about the play customer utilization in trying have about Promoter think here, you And that

bit a certainly that's something saw So bit outpaced we And saw performance just saw some performance. a the of. of little think expectations. is we little I of incremental We also then what

a result I we of a about talked an result new increased expectation think it is DTC. as growth, what awareness as outpacing of patient slightly of

together. coming So I think of it's all those three

Operator

Pasquale our from And next Chris from comes Guggenheim. question

open is line Your

Chris Pasquale

questions Thanks. Jereme front. Two on quick for the margin

for was the could your tax And were First, just about right full talk given about when bit then rate. talking cut hoping the is how why XX% audio a strong little you in year. XQ, margin you the I out was gross number

year, that If Thanks. rate would this you just could that back an expecting go be for to tax what you're overall great.

Jereme Sylvain

Sure. with first. the start latter I'll

year do Back rate quarter. margins, be a we're and great Certainly, want is between of We on first the proud to your QX. to XX% very between non-GAAP the in first one to thing tax we tax a XX%. have the rate The do off, XX%. question expect we quarter for is, – the did

do that over on channel about two think we out at being look play the expect incremental really we year. back take changing to anything, before, to mix first have of. in So mindful really won't for components the and taking quarter time. things headwinds it of be We thinking But from international a a there's markets see our about aware you half

these that get we to the in So discussions the we're some light going set of our And And the drivers when GX. GX, back getting some a we previous when launch to half of to the about the guidance yield contemplate lines back starting lower. in when see. efficiencies generally on to is, we you it's of little the that year, – of have is launched you're then

start There's also it work GX. of out. you our and little kinks to yields launch play with happen saw step bit to a of as start back of out the the You lines these

with So of let our point this play – out we feel the in comfortable as the and we those why back don't half any guidance, at raise that's we comfortable, year, need year it very the didn't but play to feel out.

Operator

And Furlong our Morgan Cecilia from next from Stanley. question comes

Cecilia Furlong

question. guess, more to I ex-US did sequential quarter-over-quarter relatively US in taking to for flat in XQ Thanks go Great. ex really just back terms revenues but still like results just your of performance, I expect XXXX, the of GX? just in grow our they pricing we to can before headwinds, ex-US or you look wanted should light increasing headwinds,

Quen Blackford

think don't going details particularly US around at to providing into we're specific get OUS, a of I level. guidance versus quarterly Yes.

to really, big us. of the we continue into where that is into scale of we're A can of confident comes on is a over today that multiyear ability There's future. we've international those part pricing and continues sit historically. that I you're much in a to forward, position can seeing decisions now down And that of this us couldn't runway And think grow step where inventory we're pricing to basis. in we bullish what the that out having so have to the available continuing decisions business in to to some lot laid front incredibly global go. where being with a the highly strategy pull

of So larger the you're addressing volumes And over or that time. opening really to that were these we've times international coming of than we now results to confident terrific I'm made, are we're going historically. six some see out patient that five up what business access with decisions

up that of business very international here well future. So strong into for the sets think all a very I

Operator

from Danielle comes question next our Leerink. And Antalffy from SVB

line open. Your is

Danielle Antalffy

your Thanks have if you bit doubling impact better today, it much. on so as we care sales potentially the could potential more to specifically, what so and as the the physicians how physician. about have the everyone. wondering the Thanks force guys a you so you of sort with prescribing little the from I'm this percentage can much many care relates primary I just if for sales could afternoon, of coming from physicians to sense of taking primary was a question. primary good and are detail, Hi, talk force calling doubling capture. curious care,

Kevin Sayer

this is why them, we that comes right why and I'll take that. little that's channel now. Well, from Kevin. we've added Very That's expanded.

to Type this are take in users, of there. a certainly Over that's get intensive increase. found those them If you the at most time, insulin offices. needed out And why look we will X

the We we we'll stories it orders we to expect the giving describe for recurring and to from they'll to monitor returns one with tools great go. best think I we returns, it. our a DexCom best brought them is got expectations current board. we that on to business team way book ways see group. think is just of are up have and we If that anecdotal be do are it. large patients, all have We the keep We're we'll to, good starting of and get Hello a going those And And the great great, the things already it's hearing to heat and and reality. --

Operator

Misra Ravi question from our Berenberg And next comes Capital. from

is open. line Your

Ravi Misra

taking gross from continues. Quentin similar level -- last management arena, the at go year over or over you strong uptake through had, DexCom pricing Hi. guess, a When the type in of Thanks of to guess, for albeit question. had margin changes lot question saw impact I into and the I Congrats, I after When pricing the pharma A channel, or Good maybe going started Jereme that you angle. The headwind wanted on evening. the moves. the so. rotations, pretty and commentary really U.S. a of pricing different we the I

in factor guess, immediate think of of kind do of kind -- it, you impact I'm Europe? in what million that as do I guess type from we is, I to price go is that here? forward guidance And the you kind $XX the So extent Thanks. does cut, ask of trying of

Jereme Sylvain

Yeah. can that. take I Sure.

international in of pricing So impact our gross margin impacts contemplates markets. the certainly our

any wouldn't expect And so, changes I there.

terms incremental that at In and it, as new we up we as after extent markets of access, these go of look almost patients. the open

we when new markets, and time. change over certainly, is patients go so, to after going And new pricing

knock there drag of be out and So be and guys. it expect certainly the through patients I targets that to that that over be significant. guidance, impact, pockets be the that that a will impacts wouldn't future could along will contemplated hasn't something talk we time provide of to anything these we always expect provide our contemplated on thought that been and all any in then we in you calls. sort going any in we But years, to of as certainly just would anything after not of result incremental

Operator

Marie from next Thibault And comes BTIG. from question our

open. line is Your

Marie Thibault

Europe quarter QX companies in heard this revenue Hi. affecting Good wanted if impact a COVID new I you obviously, on taking curious having and evening. is the this year, to patient to COVID an that Thanks well for question a the here rollout. starts. congrats on We still I seeing the Jeremy. that you're the as lagging impact vaccine as still that certainly ask questions impact OUS. last on But quarter, other terms in well, from as existing year. of understand of

if how Thanks. the been love in year? if would so, hear expect So that over you to contemplated that's And guidance. to change

Quen Blackford

Yeah.

those that from I where onto of channels particularly clinic has perspective example, hurdles now some get that certainly product we within in have think of COVID, that pockets all the incremental administrative we there. is we of business, put we that perspective, created our e-commerce, know those for kind environment from which seeing know in to other right we're visit require the have with incredible to pressure an or respect some results. operate been In international

an point growth you from to a thing was an perspective. result for absolute international that growth first two-year I at strong on international is number. think an Last quarter look that first it record it's year us when that from so one quarter perspective, out in And incredibly

an strategy year, we that international So line of growth. see was big part patients onto price I of that when product. normalize terms a looking to think or in down you're patient reduced the and at with requirements quarter adoption, But altogether first basis pricing our fact stepping on get the remainder eliminated the you global got administrative in that to the had to of

hurdle so these And we've the in been removed. the to onto has that, where markets product get done

And that start we absolutely positive to see so patient, for in take to patient and would new way. become expect a see acquisition us easier much very off

you're at we today the being see caveat environment. to in at today. might here upon to case, of stable impacted in we in think So trying I to see were do based that the about where year, it's even course stays to the think to With, that but how the look and some COVID that moment. of going get markets then what over have we're worse differently, course, uptick If the we it's the it the future

Operator

question from from next Wells Fargo. comes Larry Biegelsen our And

is line open. Your

Larry Biegelsen

for taking Hi, guys, thanks the question.

So premium And the U.S. much is GX X and competing how do are for opportunity in each do you the you price to of a you Libre Thanks think today brand? other, how And close you a outside on taking are think do GX that value price the the sustainable? as and question. U.S.? to pricing, once with see premium

Kevin Sayer

your Larry, question. thanks for

We to in about I'm several what I manner and And earnings to opportunities we strategy we're know we thoughtful commercial going team the access We'll look our who's grow wonderful continue is products to, finance in versus think balance, call. this to overall that. said it our with at continue our done our technology numerous We'll it and well. excess -- well. dollar and but as We to price a have of what pricing our do our great as a We've know volume were well, our growth provide. the this. benefit patients it balancing already on extremely accordingly, price volume our to not whereby, everybody team growth but but We models. very job continue we'll mean, to also managed U.S. have run we give combined so. growth. and going I we worth, We here, quarter volumes we're

Operator

Jefferies. question from Petrone Anthony And comes our next from

Your line is open.

Anthony Petrone

well. and margins GX on as one questions, of couple A on one Thanks.

a for Malaysia, just other in timing an update to basis? on do FDA facility. that a when what that look entry on coming on as as new take side, slow breaking do side ICGM, on sensors the down a – trying think the inspections factor starts And you In to Thanks get And margins, words, just recap maybe on sense U.S. at other to market? is breaking COGS side, form specifically, for behaves to of Just GX, and the timing place market the patient per a can lot. when unit ground potentially taking will to efforts a the bit differently? you then new COGS get actually

Quen Blackford

that building turn into of We'll Malaysia. sorry, have that progress. place with the to into place ready well the have first quarter the validation, next take as with clearly I'll plans year. in we first the latter in – of great project, of and clean a respect to room for We're making year, quarter exit a either year part the at up

half is product of in expectation there in out we'll the of Malaysia. the next that year So be producing first

So there. very seeing we're excited about what

Kevin Sayer

US GX we've the to I'll And Again, the with respect GX, question. timing, anything. take Yes. not disclosed and cutover

we've you we will ready will launch, this have be ready when do commitment be product, for go fully we flip really go be and our launch product when made on our and ready literally enough that able that great we go that to was over. learnings customers of GX and the to One to switch

of As at slowing you're GX, patients buying time. particular, their as product in pharmacy purchases the channel, one month far of in a

all we GX customers have that, when the opportunity the DME up can don't all, And as it. three is take we to lot announced far was without that there DME future even loading is today, do really we with going it's fairness, care channel up and as see when by there in did rapid view here, quit the that patients GX purchasing and will in in months less to of GX in six do with can. is as past as And loading our people you're plans, because like there's we And we So possibly than them GX of migration the that. let channel. in in opportunity GX but as haven't we'll to anything. what of We prior organized but disclosed a GX not their

Operator

Steven Oppenheimer. next And our comes from Lichtman question from

is line open. Your

Steven Lichtman

Thanks question. our for taking Great.

expansion the guidance, had are for efforts. anticipating Thanks. really countries a question more contribution the XXXX? driver What is of and year's in international or are here you focus from Just near any you term? over a on that these of for some key this And your new regions

Kevin Sayer

France. that's that years. think in Japan the scheduled of in We've driver year. future more for of in a Terumo, about happen launch with got to the reimbursement our and will second talked We be half I Yes,

expect you our France have past. of of they a lot we business so know, in start. gotten make moves discussion other But we large the numbers our businesses, looking we've a many a our mature so things the at about needle of these as big, geographies. part markets and to us in had more As how give access bigger that in can't that whole paths in Hence, lot the we when similar increasing follow do

more have in want more With end the this there's and the broad. sense of and operating just capability market. to We top going through be selling aggressive we now, no get

going patients these you'll but go as start we over we we'll more past, see to get geographies, the reimbursement So rapidly. into time, I we to as think in more started are and get more try

Operator

And William from our next question Blair. comes from Vazquez Brandon

open. is line Your

Brandon Vazquez

new to prepared comments Thanks for year. little connected wanted back go to I at just sounded the one taking was of a like made And maybe the coming question. during it the systems there this hinting remarks.

thinking, that. And maybe hardware there diabetes the expansion something on like of you non-intensives type products, if some anything maybe curious somewhere be for X catalyst TAM within those that what gestational we software could regular outside see upgrades opportunities that side like specifically, talk the kind could or of is maybe those. a I'm the about Just of or growth the

is the or anything hardware so? will not coming kind out important of So thinking XX be box we're there in here the normal from months that of the

Quen Blackford

the Insulet let when that prepared product But that of No, believe the that about ready are certainly you of guys I the about having we well. very Omnipod connectivity those to we'll the timing have to they'll that success like don't product to systems. and of that to terms half there's success the X into with year. excited product we'll into something we're one think speak of exact excited that that is some have thing in the a marketplace. and speaking anything The remarks has missing we're are in as with, be back and And put

on little a of U.S. can lay in year, at patients that meetings to X bit later particularly start the in using mid-year the CGM the the this that benefit think value us. going I Type front the going by confidence think the and bullish coming real more of opportunity population a couldn't we a X the And from population that that's increases they're there's that some sits -- you're relative with of the the day, on create to us we non-intensive X basal patient we opportunity I And out impact in to say, of and just bullishness sort on more the million there, have population, learn to BGM respect to this opportunity Type going it. there only. whole to And that some that be demonstrates study really the be population and society for see that's to mid-year more

excited really that up the sort So a opening I favor market existing doubles U.S. think that starts accumulate of market of whole very in segment that to we're about. that intensive core another data today

that going this we're to that well mid-year, open take I X advantage fact it Type way, the you'll to up to to a think is here but So and positioned space starts of in significant it. see all of data, point

Operator

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

Kevin Sayer

and for thanks, you, Thank everybody, participating.

want wrap this up some our to that a important very received acknowledge week. take minute DexCom call recognition As I to we today,

XXX published recently that be list. company honored for list Forbes of Employers Best to number their DexCom was America's XX on diversity.

this some the we've recognized for consider to been work done so that very perpetual we're a of we happy While journey, have far.

yet on as our friend executive outlook with message healthcare best forward, in long-time recently industry a of I me revolve come. fuels to and to our far As is business that caught was his Everything our belief quarter to simple. a diabetes CGM. is continued going up the the going care gist important very great who around

very we've in delivery the difference program. been pre-diabetes and even of that's a and about delivery. that solutions, new available we insulin forward confident experience diabetes, a vision our CGM great day. insulin all we can programs experience for talking part these there will today. very But and patient you integral are They're of and the beginning. and an time. make again, become of that automated outcomes we the treatment And example, of are treatments owned stepping Type devices and For as CGM have X right our Thank capable haven't only one incredible delivering never and long commercially numerous the there's than part started everyone, are the we algorithms more for opportunity engaged excited for only We've compounds,

Operator

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

DexCom (DXCM) 29 Apr 212021 Q1 Earnings call transcript