DXCM - Earnings call transcript Q3 2021

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Sean Christensen

Thank you, Operator. And welcome to DexCom's Third Quarter 2021 Earnings Call.

Our agenda begins with Kevin Sayer, DexCom's Chairman, President and CEO, who will provide a summary of our progress on our third quarter highlights and strategic initiatives, followed by a financial review and outlook from Jeremy Sylvain, our Chief Financial Officer.

Following our prepared remarks, we will open the call up for your questions.

Our Chief Technology Officer, Jake Leach, will also be present with us for the Q&A period. to an to today. opportunity analysts we question the provide can for ask limit one themselves so We everyone participating note the also third are presentations page. on that related and Please our to the slides events quarter Investor DexCom available on Relations website performance there With review Harbor our Statement. that, let's Safe

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

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

Now, I will turn it to Kevin. over

Kevin Sayer

XX% for growth third Sean. we strong revenue revenue continued compared you, us. joining growth quarter to basis. on of third-quarter quarter you, per organic And of another as once XX% around DexCom rate again CGM This achieved for represents Thank XXXX, and with the the thank reported an adoption of momentum growth. quarter growth new we everyone record a customer DexCom Today world

and laid healthcare future quarter our and connected several our third position of ecosystem. for those that growth The for foundation continue that across U.S., us of across our partner received from we products teams saw software opportunities. our also In choice X differentiate our the the a to clearance strategic accomplishments solutions as key competitors FDA wearable’s

clearance received First real-time for our in we July, API. FDA

on diabetes partners only those clearance, For DexCom allows you our our believe and for wearable’s management in received burden choice and app designed directly was delayed improved We of type people to apps app the the API ease to for user’s enable of integrate of significantly module will X available portfolio module. basis. into by putting their clearance, of healthcare quality that process help another app. partner became began Which invited the daily diabetes DexCom X Second, Reopine displays have will power the life their weeks computers? DexCom. ago, our can clearance Garmin. FDA with DexCom we This to at data, by third-party for tool connect This launch on real-time be communities. clinicians the connected fingertips three-hour This we customers. API, development and cycling not into to the could of into to customers this can And API August to and our apps bringing retrospective API are real-time with that tool real-time data one a app. who several we prior aware another utilize and ratings that integrated already with specifically is third-party which first heels an our for of non-intensive app the includes the

became With experiences to single partner enabling simplify our the DexCom display App care launch for the integrated to app, diabetes Health it September, even X DexCom partners level DexCom the that their into and and CGM app embedded app program. easier our users. integrated solutions bringing in the data, is for now app United access our Group module late first

presence, and launch hardware strength leverages over history years. a ONE we platform our we experience put that announced core advantages platform Lithuania, forward. has Canada A exclusively that the and for that by redesigned the platform. had Our Bulgaria, two and DexCom into data on reflect started is GX investment e-commerce This late DexCom first customers the Estonia. the the These past DexCom. previously no in and FDA that believe a the connectivity and ONE September, product in DexCom in customers. focuses software two and completely been ease-of-use development, competitive simplicity UK of software moving Latvia, our our also increase embraced increase of our the we infrastructure recent software where through international In solutions we markets, launch clearances are four

tripling that the in significant extension the In quarter. the maintained with performance product favorable X results from from DexCom CGM efficient importantly, month extension bring to seeing to as are Those not we plans. product on Medical previously retained we as an results Goal the improvements around full returned strength Journal our to our we was compared investigators breadth range international the greater not. from diabetes results American the our of again, full stayed Day access to significantly look addressable business forward to who our results important to over and and more were Once phase, clear. leverage very June, of the of time our experience who for CGM We proven and of launches phase did DexCom GX who of those CGM with the in the those mobile drive a for achieve our in did further the trial systems, during diabetes the feedback will end to be be step third continuous and to the e-commerce key of The product that the ONE and of term Association software Investor Most expanding confirmed the use market population support have published extension affordable to to us stayed products. who the the behavior population people modifications. phase published people our benefits in CGM product systems, who new pricing has there optimize care Finger-Stick is compared re-randomized would where solution, trial significant II monitoring. of that basal the by insulin, see as if believe therapy these been those on XXXX. to on differentiated the we initially long Early diabetes Building on With for portfolio XXXX our targets. benefit type us who CGM for this this

area we diabetes. access Our our to building into which And with our teams leverage the just for two the one is to technology are conclusions type for this in foundation working long-term hard from greater growth. are people mobile

advancing level others. and our efforts Health's per are Lavango pilot United [Indiscernible] We with diabetes, Teladoc's X. on dual

advantages inpatient use for strong clinical progressing pipeline indications evidence are we in our connectivity in new pregnant, are our who CGM partners. leverage gaining with expanded We our customers settings, of to for delivery solutions by insulin for women generating and leading and continue

regulatory during GX the quarter. advance scale up to continue efforts we and Finally, our

preparation full that upon to system IOS notified CE launch Android the We look on in the in submission, of the in to Europe our are excellent and quarter effort. in we to and GX-XXXK believe have we've body including our that stages comprehensive mark In had made that software communication GX the of great few we final now and prior fourth U.S. the weeks. regulatory and with hardware track begin clearance. progress in next receiving We submission, the forward remain GX the FDA believe

see, user drive experiences, differentiated strategic making great it working progress are core the Whether our portfolio, teams laying and our product to efforts. advance can for our creating very that our are growth. you new will hard is opportunities As foundation in expanding market future

of So turn said, that our third to for over me performance. review a financial quarter Jeremy. now with Jeremy it let

Jereme Sylvain

you, Thank Kevin.

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

proud to distribution of basis. compared late XXXX, For reported we and inorganic and growth were a the growth complete revenue our us the We in of of we quarter greater representing reported presence, to reported at the markets the XXXX, invest to of larger XXX for quarter on to of from the XXXX we strategic X% In to generating With sales of direct non-CGM New Day important international began million that of a acquisition, third one direct we growth the core distributor this these our have on XX% to give control aligned leverage revenue direction healthcare distributor grow international revenue categorizes This as The strategic our and markets to million worldwide an certain strength, we our interests. which Zealand. outlined accelerating footprint in for for organic will acquisition XX% $XXX approximately for we growth, contributed product initiatives basis quarter. quarter. third our our Australia ensure our July, non-CGM that marketing believe Investor transition several seek significantly third is is

third the for our full third of in it to representing as financial million to terms U.S. revenue compared neutral quarter. of we in growth totaled quarter quarter operating third XXXX, XX%. million year expect of the margin third to the quarter be was in the impact In XXX the XXX of approximately acquisition, transaction the

where We year. presence benefiting in we that and have from continue access field increased the to the the momentum see past U.S. enabled are good market over we

in early X strong the type X intensively New diabetes, people we even with significantly access adopters past type diabetes, managed market expanded year, remains the customer of and across growth non-intensive people all X population, type with in population. segments have the where including

the international quarter, Our in XX% totaling business million. $XXX third grew

international acquisition our distributor impact Australia, the New of by distribution non-CGM generated the of for in quarter. Excluding and Zealand, revenue our XX% growth business was in third

We across Markets, our see with our delivering very a International Third continue record the the sales in majority markets board Quarter. in of encouraging to growth

our access growth are still supports organic above have quarter broaden groups very several current is early, far growth markets reflected thus the left globally. Along volume internationally. to XX% we in expand and quarter in those global you our profile for have the positioned it us results. well Although Quarter. the our revenue is rate been lines can XX% growth believe third exceeding strong, strategic remained And to that that behind momentum DexCom CGM see successful well This

As and we to with of aggressively seek outcomes to and advance health diabetes. drive better for people technology quality access life our

mentioned, provides the of and portfolio one of access globally. Kevin launch As DexCom adds to element another product our our to expand CGM strategy key to

launch the in are us we of an And creating initial of in that serve the to plans a to use ONE allow our business base our growth, for manner. for conjunction focus. continue As growing we that DexCom ambitious with good customer our example efficient e-commerce scale our is platform tools

gross million gross where in This pharmacy our our when this The efficiencies margin expansion expanded to drive strategic XX.X% revenue or our drive innovated strategic and especially XXXX. opportunities. third us in XX% through third result, of revenue is you efforts Our international of mix who compared credit profit necessary an to year of quarter have factor $XXX.X greater embraced to to and year-over-year change was maximize teams is position quarter access. the a the impressive to channel and

relatively of Operating delivery QX the million force offset scale-up, to leverage income to Operating for operations teams the our XXXX holding manufacturing We and our same XXXX, as to ability products. Third revenue. we year-over-year were both compared percentage of ever compared XXX.X was of in R&D million were general XXX.X million a development sales the investments expenses in million expenses Operating our strong expanded quarter XX% commercial software be in administrative as more efficient demonstrate flat and to of of the leverage XX GX XXX.X XXXX to in sales QX Quarter functions. global with and of in flat continue XXXX. our

indicates, share. initiatives. or significantly per Malaysia, result that cash closed build-out the billion our Adjusted been manufacturing compared This X.X in We scale XXXX. XX.X% or the income continued recent $X.XX in able our this quarter strategic our the the million million with GX this year, was and or flexibility stricter of quarter our million our revenue facility us great EBITDA business revenue such as as XXX.X of equivalents to for cash of Arizona, we've Mesa, third as reinvested in XX.X% of approximately our XX.X have operating As giving XXX.X business. drive Net margin well the in to financial objectives, includes opportunities up aligned even quarter, of as acquisition. are and retain quarter we to third third for for was much

full-year XXXX representing non-CGM distributor in to a look to to acquisition. excellent over expect X.X X.XX outlook of revenue year. revenue for organic XXXX. our growth, another points now wrap We to XX% once to our and in up - basis X related to be approximately growth third and margins XXX us of raise between quarter guidance position Turning billion, our again recent includes as placed XX% has we XXXX performance guidance, This

full-year to XX%, neutral of the XX%. and include back distributor now Turning increasing Gross of I XXXX the at of approximately will This margins that, a EBITDA Kevin. margins, turn impact call margins approximately to acquisition. our be our profit approximately XX%, are approximately adjusted from non-GAAP levels, With following includes results which margins operating to we targets.

Kevin Sayer

There things proud all of. are we few to to I'd take thank that the of at and time that teams like number things celebrate DexCom and a the now highlight could of we're a specifically

our new First, We to you we as in to diabetes. to Australia our to you on in empower people thrilled we take journey our and bring of with are DexCom look us markets. need absolutely those in to to team have from and working members together key control New technology learning forward these Zealand,

continues FDA third competitive reflect GX in solutions. Those has pipeline, the team And those highs, software as metrics several to as to in our are the leverage innovate operations that validation a manufacturing with hours quarter warranty Our clearances as to a software from our and reached improvements our updates quarter all-time work team this the a provided key to our sensor that rates efforts, and and testament to and area lows. all-time strategy are discussed well of finally, margin lead highlight we've nice talented and another as employees. leadership data advantage R&D The two a of countless that we've yields the investment. reached our of seen our

now I address As to call Officer, like up Leach, Q&A. product of us Sean and the mentioned for order call, the Jake for Q&A at we've Technology portion the call would to our start in invited innovation. clearances, the Chief to around our Sean. any these of join questions the open

Sean Christensen

ask reminder, limit the to queue Kevin, reenter this please only at instructions. our as provide the to X then Thank audience time, a themselves Q&A question and necessary. if we you, Operator,

Quen Blackford

Instructions] question go [Operator Instruction] And from from [Operator comes Johnson, Jeff. ahead our Jeff Baird, first

Jeff Johnson

non-intensive but Thank of afternoon TX of others you. and programs. time API the attempt maybe with more next your could with in Especially latest the up so for like much time, on wondering feels -diabetes approvals and so be on on market. others big and those I Good we I'm the in It X services we anything, behavioral ask pre guys. those helpful know most level markets to these and app wanted sapiens and too, guess commercial over year prediabetes, your all see or some this obviously you're side. to thoughts and be the some and real-time many, levels focus I TX how I the than on X. super would popping app of the

So well? to years run, market maybe short couple in those developing X next X just X you X see as Thanks. your years share how those the of over the in markets in do areas,

Kevin Sayer

is can take you Thank This those We Jeff. that think markets nicely. develop one. Kevin. I'll

to work FDA product path the had side some do this spectacular and do some on to as discussions. and those results have we've the we've with are labeling that we migrate as We work But down some of seen use people the product.

a telling fact, type with In had recently patient an who no of us the recent something a experience this there on above got if front-end yourself email we again, who medication X.X down non-intensive works but wears It a position, was from you much you data, AXC to watches go or the very world in gone metabolic you XXs to like if X an and from an it's AXC isn't Anybody that Mark, that. XXXX, narrow a you or ask like set aid. XXX lines those the general. CGM between also and the particularly about what

different. can to out that earnings be can and something you that an exercise, all of could poor graphs. usually The stress do of of of go effect back the effects call, in the demonstrated sleep, effects You CGM figure

and I to the the the run API to a the presented properly. about there opportunity. The way a today API technical think to has also quick than wonderful DexCom in. That's approvals other is The the where stuff person come a data we and a API and it's me, app talked requires better Jake knows live market get be app. but

a or about again you larger DexCom like app the app with it. Group, module experience. one two that in and we a experience With these right app that other, middle United DexCom like Level button the of have Health today, the talked programs With some of

we to in wellness that want that work they offer and can have on those you really the situation that offer have best speed, experience. can then but that We point, partners we'll we app other. your the both solutions, focal pick they also one So reside you and to both think branding the be for if a and want sides, are versus experiences different with need

our excited we're there for very need we [Indiscernible], to truly our excited supports these over we're it's strategy. the So there pipeline we long-term and time. markets and of technology get But why part going getting product

Quen Blackford

from comes ahead, question Robbie. Morgan. Go Marcus next from Our JP Robbie

Robbie Marcus

you're briefly is this Robbie. taking the Hi, now. you Lillian talk Can right that actually for for on in Thanks dynamics Europe about question. seeing

a guys quarter You great there. had

stories access efforts increased last So success that the over Any helpful. page of implemented that call on you've months. would from could in any be Thanks. the few tangible share you

Kevin Sayer

think Sure. quarter adds outside create, markets thanks the rate this the we've and created another patient the to certainly growth for strategy all been countries a Yes, of as saw really our at for see that price and to access and access on that then What I the obviously to get in growth. look and patient we've access most see you the outside with in moved U.S.. it's in the Think question. quarter pointing you XX% gone so historically fueled into organic markets, record that some revenue talked is; able through new by Again, What in see again we've exchange you you all lot playing to quarter. quarter, been for various the the of new a international front. you in haven't strong another Europe, about incredibly access we the it on little U.S., I able which quarter, the our It's revenue populations of to. record a was it a bit call we think we in

access I them think a talked of channels. example, lot the I are those about through different with you people just those had bit access quarter now provinces, reimburse And think little DexCom us for publicly CGM I last allowing channels in publicly in multiple think the we some have examples technology of seeing Canada, a that, to

Jereme Sylvain

of And they're taking advantage that.

you we over seen to you've I the made a the decision think our in continue play it. as ultimately long see play and So why the we'll financial through it. expectation to through to haul. that continue It's do it results through expect play to And

Quen Blackford

Antalffy comes ahead, Danielle. question next from Go Leerink. our And Danielle SVB from

Danielle Antalffy

Thanks you. the quarter. questions. question Good afternoon for for Jeremy, guys. taking a on so much just really Congrats strong a

as just we initiatives talk maybe pretty much. we're the wondering adds if sort You that guys effort concerted investing can really whether of we incremental perspective. care been return into Marketing, physician quarters the three around primary far up ramping more and a seeing you U.S., are direct sales force I'm in about -- significantly are patient and now you Thanks from coverage have on this physician. how can in consumer. care investment so primary a where new as and talk

Kevin Sayer

Absolutely. Sure.

you in sit we So it a to coverage bit know, over but we about our covering we've U.S., today talked little prescriber it XX past I where Quarter, doubled and the the want last reiterate months. is,

what And a of has doubled certainly That's the mean so multiple by amount which advertising, adopting in that team, the really Those force. months. doubling XX that's into sales work has testament are writing to physicians the of by that the things, all the technology. been commercial I play being U.S. by the folks size an done fueled is direct-to-consumer DexCom scripts

Jereme Sylvain

another that force. adds, by I many to of quarter think can see patient helpful that's Just you for sales record which ways things a playing new I think couple the and see in tangible are again, driven through

is see you being of thing Delta effectiveness that continued we that completely have momentum, the the I say impacts the some noticed at one from full us that of would So prevented variant. hasn't

you're been that and only that's think when probably some offices folks these challenge, longer seeing that's access of in that's I to thing person. getting just a no the we've seen

we're doing locations well. lot so and opening And incredibly seen you've positions up a of those

So these work landscapes navigating anything through COVID just of a that's more than and through function there's more to else.

Jereme Sylvain

what for year. us you're nicely. and next the thus you're in So new very ramped the patient bullish far. it growth, I I'm the adds up very performance, seeing seeing seeing means short, year been incredible for on we've It's think an

we and think data, far more it really share more it thus feedback as becomes as and that's to we'll continue I again, available. So get the

Quen Blackford

ahead, And our question next from Go Blackman from Stifel. comes Matthew Matthew.

Matthew Blackman

Thanks opportunity ask growth taking in us however the meaningful to either question. GX my be the commentary there? how Could you trends I rollout incremental any growth, about afternoon, for Good also as Is Thanks. just Japan, to worldwide the there sizing on early into of do everybody. think you want to OUS want and frame or you in could contribute Japan we it XXXX? move it remind

Kevin Sayer

This is Kevin.

early good partner could that were You of teaching We've Japan educating out a market got some earlier Terumo. our in examples very overtime physicians, in with traction, We happening there, people launch good our position this us. on think but in literally a that launch with be we're one really getting for summer, product. about

on. While is amount X can there that a of of -- with large there's even can tremendous X across product a -- X possibly in If a X we broad top type not one time there's or top diabetes, X our of of this the markets, type offerings, spectrum, we get world amount also certainly goes see diabetes. our our being one as

we've We do, those precision from and perspective what of our value also spoken things. connectivity of and the bullish with the on physicians very And a product. accuracy performance the and know of are tremendously we that all technological

one market, early across intensively but around just market are patients of to know of So I that's the for phases the thousand we have the type for in managed the market, and you, to type right a we size And XXX give believe system you now. two. we three right asked

lot So a prevalence be incredible space. that but at of market market spot a us obviously the of a smaller and large an can TX, Landing that with folks, for

Quen Blackford

ahead, comes Blair. Cansol(ph), next William our question from And Go Margaret. Margaret from

Margaret Kaczor

else? Tom around today, the a it when sense partnerships. question. I the some is follow-on, may is more or a services bit from you come out offer enough I a other Hi, that partnerships are good an is evolve, have. in these lives other that referenced you is getting your example, some theme for time the little about guess form question you some these products over on maybe covered technology that the potentially may just that expansion something afternoon, call, Thanks. and the offer of past better offerings for Thanks partnerships. the from you've could taking guys. those and The pure many of towards talk of of that subscription products And capabilities how that in a away patients just as software expanding the of And them, these since or on shakes you do new been guys guess, deck accelerate offers How potential they and that that of

Jereme Sylvain

Sure. Yes.

the aspect it. start how you over me about excited take financials So it. then will let with and maybe so Jake's we're side And through that technical migrates who obviously And time. the why of

it's in so. But form to technology over time. X or So today we've the are access past, the obviously TAM today these want would sensors. and the other couple added of software partnerships months a combination expanding of over over as And we've and demonstrated expanding time, that people features, CGM

Software can be a part of that package.

many -- realize the folks we CGM. over to really as sensors monetization the on as so will how about And is Today get time. of of possible come value we're that

through we it that's of, of space. you expand So how general just could of maybe kind going it, theme take where in Jake, the we're that

Jake Leach

Thanks Jeremy. sure. for question. Yeah, the

the So really segments. think unique that is the bringing in through providing experiences technology about market the that this about we for customer features software way we're it really is

segment so if think segment X X non-intensive. type about type the you the or And

those in types provide DexCom, these to of our lives tools real a you're seed the to list their we're so experiences. And about the CGM, with is problems what are to partners those advancement our with and unique needs and working solving their different product, API systems is as customers integrate really such API Software -- really for You connection a strategy. our serve our partners a excited real-time that into to in that of provide cloud way

Quen Blackford

Our next ahead Sandler. question Go comes from Matthew O'Brien from Matthew. Piper

Matthew O’Brien

thanks and for taking question. Thanks my

guess right headwind $XX or is I lot doing -- the just I'm if if this pricing of million $XX and conversion of right, asking, math right? the sure over but headwind seeing I'm Are quarter I'm I'm more that's not to is the last little a parts getting what we not bit a about sure distributor moving this of not. And I'm pricing that couple. we've seen quarter. So the here a than like

we'll bit because And asking to from next the less versus is reason QX the getting is little here So on be headwinds you're a with 'XX? below year the XX. maybe more pricing expecting increase Thank 'XX that, forward little pulled I'm and trend the to see the sequentially that in seen -- you. is QX a line, then

Jereme Sylvain

Yes.

of couple is if expectation we the little still is total expectation. the bit might pieces, still on the year, first I'll pricing anything, a but there's light expectation and that, the for million come so a that foremost So reiterate the XXX

So in then with generally the little those but prior in. that's a not kicking OUS and it's some quarters. change, pricing of bit a QX elevated, was A line step material contracts in function of

we a perspective. So really, where pricing that's come from

We've XXXX not And anything pulling necessarily in. often being that XXXX. relatively talked on still we're about it's to So similar trajectory.

the math plays QX and that. there. necessarily To how out in right. any And your wouldn't doing So math, doing question expect of you're on the the guide I

offices count it. to it a One into mindful the before pieces time variant of, the and delta little over making things two that we're primary earlier, about really which piece we is getting on there's sure you think of there's care bit about that new talked the and and we're seeing we it, as

over you're we're and and product So migrate going then historical the bit. first the that's is our of the little through to the of more pharmacy, a trends as piece of it more piece start just is second to that. see time of fulfilled mindful it And

You saw start year QX. in it this

back the look pullback to all high-deductible DME more you in of sequential end If as than prior are this to QX and year. more folks pharmacy, of and them folks a was year you longer to maximizing QX, the in the no goes you're into it our at which the the benefits plans health space the have have were same from QX thing muted, QX, means going see bit

little seasonality QX seasonality progress. as a expect next of less we expect we in little in And a bit year. we So turn,

comes you're ultimately reading what through that's into. guidance. in the That's So what

But So that right. the it. into of some the math, you're doing are expectations those went

Quen Blackford

question Travis next Travis. from Steve our And Barclays. ahead from comes Go

Travis Hayes

just at a a how the benefit about gets in like my million follow-up to XX and thanks quarter more base quarter just margin. revenue about without sounds it was there taking that is for quarters. And the It the think this into XX like million pricing a it and all forward Jeremy, for to distributor how model distributor. Hi, three impact the is then here going curious on offline question. the

Just on If a more little color the all. acquisition you distributor

Jereme Sylvain

Sure.

So we'll the U.S. necessarily USO, We number. -- so overall and pricing don't break of the down pricing.

talked of And of the at end we're we the total so the day, Company about. the trajectory on

the And math, so obviously guys will trajectory. we're end do of day, but same the on the at that

your the question distributor. terms of In on

in markets. deeper because ultimately our it on do And try there It's to to do the rounds get margin is the penetrating distributor our cash invest question these and that a why quarter, that's distributor is, X%. control, It's of CGM And months well, actually We're quarter markup control to We're what these the not the It's business, The you small. investment. -- in a invest impact it. relatively you do we has With why to to into in was Sheet. it's and Balance these and market markets. it, Company continue the the want X that try what margin willing in markets. uplift. growth ability on to the on in acquisition we in to to

as make driving that we're we adoption. reinvest the to in them goal sure been has take So direct,

I of nominal impact on the the rate our growth like organic it really distributor to X. said, So rounds

So the XX% is even the growth including rate that. organic

So changes much quarter. results There that this isn't hopefully, around acquisition. that helps the you the there

Quen Blackford

Matt Taylor And UBS. question our next from ahead, comes Matt. Go from

Matt Taylor

how primary was color for and if more could on give us sense Thanks care questions. hoping Great. there? the in are maturing, channel. the how taking Could you you are is productive how any going the I me for sales they force give to things go there's more

Kevin Sayer

go, this going I'll it There's that. Kevin. well. but still Yeah, very is to is more take

the to person We've DexCom, bet list several and a -- don't once time attempts sudden it learned in get responses we we've new more. hey, are we of insulin, target expanding on some numerous this our get, those on taken as that carrier takes a walk here's take and particularly it a get as patients office, but all a as credibility. they it's lot once on process their of where well that very little primary call get the had doesn't there going are an had audience, into it XX far, is it have a on, and person and well and to is the effort, but so in it's month. based a situations good we've far so of we quality not But have product well. we we those It progressive targets some time. Our and get But we're also coverage does gone with very the on

Quen Blackford

Go comes from from Citi. Joanne Wuensch, Our question head next Joanne.

Joanne Wuensch

very taking me Thank non-intensive think you give of could building update clinical seems on where increasing that But help into you think population. evidence type much questions. to are going you to to you Type-X It the you the or juice. sort us like you'll what the an for get need is my really

Kevin Sayer

level for that approach. that. in going at be The right and for the good working for [Indiscernible] these we're Jake from of they markets marketing app therapy the program with that confidence to will the Kevin, and been with call the or we X and there reach in well, combined to got great and some payer for the example, results things This product and planning once are the Yeah. non-intensive in that today, as their non-insulin opportunity Non-Intensive it. once not to efforts. have take a with very for programs come them designing type get them interfaces high will for have the in prescribing be materials, successful approach these and control we healthcare our UnitedHealth, wanna loose, the therapy, partners patients to and and I'll very We've because insulin NIIT produce intensive outlined do as We're approved network, visible API to their now we're the to technologies that team the X very in the there we who able do the DTC experience those guys ultimately level we App work we to several insulin time turn great We've on will pronged getting professionals in outcomes. a with ability direct consumers products get so. when type getting we go We deviate a taken of to users, we're campaigns people our directly. that

continue go fronts. So off them. We're we'll through going to of on not the all all four on back steps, will one

Quen Blackford

our Stanley, Cecilia from go And Cecilia. comes Furlong next from question Morgan the

Cecilia Furlong

trajectory in Thank what not component guidance factoring you being question. at ask should but just is think taking versus step-down, XQ, our into you what about quite your think we how Margin for to updated initial about from International just Thank launch, you're XXXX. implied I and Gross wanted on you. heading the scale access as GX the with

Kevin Sayer

Sure.

take of margin to So do in bit we expect a the step gross QX, back. a

the of GX to why the of of turning we're on other that majority the ramps as your that And that at reason to Some is is be all A international of point the is full the depreciation point. and the yields. launch. going capacity it And is at piece not up. access machine, the GX the and therefore launch

from there's no once what strong in lines to why those quarter-by-quarter we issues we margin that back had don't when any expect our gross up. Now, to to we'll guide. from as capacity, we long-term margin there's ebbs we there we I actually XXXX gross get get and long-term meeting talked But into and But full nothing reason ramp get about our be guides, would prevent get there. may flows There don't be us there.

of those asking And I you're the machines if with it. most the of in So weigh associated well, the and would the question is turning depreciation the impact two GX. how launch on upon

machines There's nothing start volumes us to organization. that XXXX into and to structurally able margin get build those and get on gross we we've profiles those that you're fixed to the for set can't As an costs. back absorb

Quen Blackford

And head Jason. Jason our from Bedford, Raymond comes next James, go from question

Jayson Bedford

here. quick Hi, this X Jason (ph) Povin for and questions have I

close to you will the pharmacy payers see into clinical are commercial guys of second before GX into approval? the First, data U.S. the we get how And channel? is one XX%

Jake Leach

data. earlier So we -- at question GX actually for this thanks Jake, so we the presented presented ATTD year, the

MARD very happy of the a in the with we're fact, strong Yeah. [Indiscernible] And X% result excited the accuracy, Joining and so that of GX, pivotal. very sub in and future. be we'll than U.S. releasing better

And -- I some time, But to So there -- set that is know before, like have I think get data seen feel look public you've well, data over Star. North these to how that ask, going launch folks access what now it. do available should it's as that at it. ATD you more you'll data, that obviously, for think I products as a --

this the by migration the we XX% turning terms XX% in into approximately right XXXX pharmacy, path really at of end of on the the that talked glide In XXXX the of or we're into XXXX, about transition, end from now. glide path

a specific linear we'd And so we're a but as as right course, headway, making we where expect percentage haven't and over charting update time. that expected your transition right where be a we're given from you'd

So hopefully that helps.

Quen Blackford

next Biegelsen Go comes question Our from Larry. Larry ahead, from Fargo. Wells

Nathan Travis

and question. for on you're you gestational update diabetes? Hi, this Travis Thanks. thinking Thank how for an taking for just Larry. the is about CGM Can provide us Nathan call hospitals you

Jake Leach

first. so on let's Jake, is this Yes, the hospital start

then the a built systems. great it's with products. we are build GX and purpose accuracy you a to that, and GX built that So is That reliability thinking way we platform really that about the into CGM hospital the have

times that hospitals. So hospital. we're right a good is GX exact used success need, the a in exactly needs is hospital. really but in the the our the workflow meets the for what early It CGM We've under it's serving not in COVID understanding stages with seen the the of

building rebuild how mothers the On information better pregnancy that important in into of is what that very we pregnancy do understand expecting really segment, excited about providing CGM to a side, that's so needs GX we're for want and meets functionality product. And the the the

our we're of that roadmap actively working on part that's GX. building the so and And into

Quen Blackford

our Go ahead Oppenheimer. Lichtman And from Steven. next comes from Steven question

Steven Lichtman

revenue Kevin, Thanks. you. work the patient per population you with Hi, do guys. utilization the data. your earlier overall non-intensive mentioned on to what continue latest Thank you on all for thoughts payers, non-intensive. collecting and potential in Wondering that are or partners,

Kevin Sayer

in team repeat patients better this on had revenue I what know things reality bit the problem are lot these these try not it here, models be and derived customers we're time these them provides the model for the I the get a a to when beginning, data. the of that to we've system lead so and about revenue benefits outcome learn much can seen out don't much use or with patient the see and we with of technology, will cases. the year outcomes. said trying costs point total not But mistakes about continue in use we've this that good CGM continuous provides per the intermittent that what the they're that somebody's solving full respect At them, a this control is to number and data to lower available time, intermittent death that long-term much talk per there recently is group supports most over we'll There again, use of how and and one number because learned for healthcare of that programs much to minimize just in patients be something a in continuous a is make to I from But the in time, decision certainly of being is speculating revenue system What insulin, having yet. life but sensors better [Indiscernible] the even outcomes they than might use. I'll amount different still the a model. feedback for I'm And internally, worried

as was these very So will a balance the have those current to to well that a and it's be and but wear patients balance model our time. business belief to it long there's going want good population that there things we all all -- we against do believe

Now, That very a where problem enjoy are. at not has much They the do. been really and like knowing they all. they data

Quen Blackford

And Ravi. our comes from Misra Berenberg. next question from Go ahead, Ravi

Ravi Misra

for thanks the Hi, taking question.

I Zealand, distributor. I'll my guess So use one Australia New on question

the go you. country acquisition population? you what or Thank size can I do non-CGM inorganic you're there quickly us in market revenue through guess that Just or still I this like Quarter think with maybe this guess, curious, think more terms you after need arena, do basically be this of is of get X kind help really how to the kind space this we you revenue impact of guidance the able in access to to about, assume of and continent that get to and

Kevin Sayer

that. take can I Sure,

sales we distributor, product an had the product reps people. people that distributor And incredible different when a group different So lines. these and the lines. it's of multiple acquired have cover ultimately They is distributor about multiple

we making key the here is so everybody And sure together. keep

contributions the in guide the points. So is we What to identify overall we'll basis to tried that in stay for you, line.

in talked on so we about basis XXX a And guide, our points year. the full

that we out in think math the for the You'll We'll sure I the isn't you'll able what so is over haul there. it. you're and do figure what a out and QX, to is that have approximate and it what out impact identify good long feel make pretty isolate

there, So I can think you feel comfortable

Jake Leach

able Provided who terms -- a an This job market. and incredible that in done acquisition the country. the of folks being of in was that, is get into have to with this itself, group in material CGM adoption actual

develop that when they're adoption. we And so we team, their have awareness in developed when nothing one, CGM these CGM into continuing we sure to and to make countries, we we get the want sure from make way There's eight.

similar sense that terms we've markets. So in in thing the the way investment our sense then We it makes there's in us reps make investment that of in know organization all sampling, structure. other thought things U.S. of prevents in great the under DTC mentioned and The where that about place very to you've sales is and in and put the we only nothing

You've some to expect of seen and more and us we we've some do bit that can little and take it more in Canada a done we of of we Europe, that do in do direct, certainly that.

really so we're what about. And that's talking

nothing continuing there's adoption acquisition structurally those that CGM us in from and to So the prevents taking proliferate countries.

Kevin Sayer

to just that. add would I Kevin, is this Yeah,

wins distributor and at can business than to as that do do going to just We New after market Australia One we reimbursement muscle increased reasons Those both this of well much and on and in direct the go needed able at of there. talent provinces financial look level, this reimbursement the as the view our -- With really where had nature, The do be their financially, us. so team Zealand broader take this for take own. our works investment with we Canada. make an we've more we're could access and things a to in we one it corporate our risk of impact. muscle needed their to it a

Quen Blackford

Go from ahead, BTIG. comes next Maury Maury Our question from Kibo.

Maury Kibo

bulk you -diabetes pre into this the a launched countries, maybe it discounts? site, curious Is in Thank the strikes and very something sort would I Eastern you preview is some of order little the glimpse for that's it's this Spending but whether flexible European questions. know is at and a of broader of of CGM, model that look appeal consumer subscription for one taking of into DexCom just pricing plans And as me a website. Hi. a been on the this consumer-friendly time and markets? future. terms bit a I'm

Kevin Sayer

Kevin, we for time We're means can. G launch. through Yes, with want that a new really geography, where new this what very if DexCom Series on products. could us, traditional position we into manufacturing people product this and we can an as product DexCom a our get to we've a our as opportunity we And is and wise one first their now important a many to get went had it's represents software a technology platform is launched product is easier volume the launch than we in

group. again, definitely plans, bit the So offering precursor of as easy from up App patient talked and pricing And -- the a this marketing of website. for be truly step us nature, is that we're 's as flexible the scale we our ability this that I team product business we've to This very models, this product developed we'll team to Jake subscription is every use our opportunities experience. has offering have a over where traction we can type where can product the volumes explore things we than with rather more our we that yeah and and assure take this that. of gain future, those website evaluate will to is our can market, our you with a about, do that time more. G-series, within advantage of increase manufacture while traditional and the It in the to get created things to to as you use, And easy

Quen Blackford

Our next Go question comes Josh. ahead, from [Indiscernible] from Cowen. Josh

Neal

there glucose, other actually on for recently outside of monitoring analytes. this plans And monitoring or Neal about or Ketones? (ph) like you program we've extending wondering Hi, was I development terms of updates can just for if Thanks for talk any question. the share Josh. some is [Indiscernible] consultants potential the to for any had maybe taking in

Jake Leach

Sure. on multiple ones, around platform we're extended of can we more colleagues provide use do not And the that programs that analytes within platform. Today, the value we active platform be can also we to this that but to exactly Yes. with that could -chemical about have researching do our we've with DexCom university wearable developed be sensors other component. The which that some CGM electro analytes. and feel other research extended analytes our and talking are

Quen Blackford

Go comes question Anthony next Jefferies. Our from from Petrone, Anthony. ahead,

Anthony Petrone

doing cost well. to play would is everyone out sold. wondering on XXXX, chain goods I'm how quick constraints. hearing hope Two on lot that pressure of questions. inflationary a be upward is into supply about One and just Thanks expected Great.

playing are maybe are. on that's what of existing currently Omnipod how offsets users then of you. into the users what just percent XX out we DexCom, launch, look And as wondering So DexCom update not for an solutions? Thank the

Kevin Sayer

Sure.

all take go supply and and chain. the So ahead inflationary

think everybody's, and areas supply and certain is certain demand. --nobody to supply pressure I have So that based immune products on do chain,

and our you our think two done, think the the there's done of two, incredible pieces I things job One, the of you in do I enough can team up One And have team product lining manage product. has has it. cost? an

the communicating that's else properly making of it well actually running been out everybody's with that suppliers been But supply. collaboratively, woods very and the early advance has we're on our got very sure and of of of work advance that's to mean jumping we're of proud doesn't working sure that in that working Now, and this with our to team. all And well supply got secure through. make team has value them that we're of product ahead that's ongoing, in but that everybody chains everybody us, done

unique absolutely bit more we're terms also in we're There environment. In making a have but a measures, of of been inflationary a the inflationary product. lot measures,

inflation. the scale with get challenges economies And so associated offset which power some and purchasing of you of

nature. expectation navigate margins those, will gross we're our of is that of because both it able and longer-term our to So impact not

let the So But amount know we some it because publicly, There decent folks can haven't actually, and believe the is We want Omnipod hopefully of folks and accurate that question. Omnipod today don't thing Pod it. We X well once out certainly lot a to. is, are. That said, I most integrated I first. come another to that it for it out that CGM time, just our a could The we want for it and DexCom are all Maybe do a With could we then the question. generally an lot I continue out we are do of MDI, I to a there. your I answer there is they product ultimately integration launched with good associated using studies have over provide to to say feel do will CGM we turn can are AID say X, do them are don't and system go a to they being onto it, quote put Omnipod onto folks one now how choose us. know could if do catalyst although there system, so answered there. those of -- all get

Sean Christensen

that's pump, this to and patch I like for for certainly is something think Omnipod interesting novel is think patients is get as that on With one an I opportunity as, that incredible platform. folks

Quen Blackford

Our Go comes from Canaccord. Kyle next question ahead, Kyle. Rose, from

Kyle Rose

specifically what DexCom obviously the side, generation we've previous facing e-commerce from you. different on ONE versus historically talked the taking that but Thank maybe Great. completely the being question. is the software’s Thank understand the a question But ask different couple perspective, and DexCom us seen different you've help times experience maybe understand I to a I you what patient a wanted on for different just patient with just of about app. and having products. the another with GX

Jake Leach

from was beginning, design of DexCom the that simple. around that take it will I ONE the Jake, one. make product intent to our

particularly part how use is in the factors of to that that products, architecture e-commerce App the the spent the App, so us, flows module. the different so how software. users a into And new, those human learning will when for It's experience, -- they're first new but as itself. mobile lot it. of a on-boarding use kind --completely quite the new mentioned, of And and App through, time users see that's basically it's you first We studying piece a

running on CGM. onboard what them their to up how through walks get does and quickly process really a simple So on module is

that is has alert than that's it, simplified thing GX other The about scheme. different a

a some easy-to-use, alerts, simple approachable the does alerts predictive So the it, it GX has it scheme. more doesn't have sophisticated very of

who thing we've glucose into added typical GX The statistic we our like over average built software clarity ONE AXC, haven't with that a up. in then have And Dexcom simplicity, access simple to remote have there's of other is a to system, range that's no share into ONE, CGM vein connectivity about for it so the single of are into all CGM product fingersticks. really actually life never finally AID that monitoring statistics had also ONE people time absolute the ONE estimated it's Dexcom doesn't our that the experienced current Dexcom data bringing incorporated and the and without lot time features, Dexcom built Dexcom ONE with

Quen Blackford

next Go our ahead, from comes And Pasquale Chris question Guggenheim. Chris. from

Chris Pasquale

Thanks. I back that last you want question. take to on

predictive time, of population Do in this is alerts territories this for? that this get more way pediatric way product's terms into love like here over loss a approach think type in this We was place. emerging where X reimbursement leads X be wonder this of the some a answer to of just sharing, as a which market specifically some the with to really product. to who in, you going see so specifically, see some and me going to you're Thanks. where may it you not type I and the platform. probably it on, sounds not thoughts constructive or It is that be differences with targeting

Kevin Sayer

countries but of we've countries all they're been things. those that never they're you at the Certainly, look It's markets you where not in, before. launched huge X

over right. our of ID had with not subscription platform of that e-commerce exactly gives they've things it level pricing to with today, connecting technology It and of group where access people. better felt and is offer as then is gate, and the some have a to and users. so the solution of it access offer type insulin geographic is we'll of more And We product one. we simpler a countries to targeted out anything. in again, than what lower plans we a than the before. time nature, isn't play But respect for will Certainly there the -- structures access this patients, as and other X the people these not So systems we creative sharing evaluate technology And offer never connectivity, have far you're different to what products it where.

pretty are with So your observation. on you much right point all

Quen Blackford

comments. turn time. this for Kevin at back Sayer questions more to no to have I'd we like final And it

Kevin Sayer

Thank you. number We've performance and of growth. financial DexCom a thank top at on questions position of and important continued once you, developments interest your DexCom. again and for the everyone to future support continued reported outstanding And for

wax away my bit a he XXXX, missed Going to passed but call. an earnings father but in never philosophical today, late

and calls what was call me up point. routine is And say, always much this He'd he pretty say. Our after were was to you he'd the trying guys on right simple. very

we're well, our my commercial and improve continues remarks we continued a today, achieved the through yet So of demonstrates closing organization. make volume sensor growth growth XX% to in continue, to of the to growth remain Profitability excess commitment you. reiterate preparing of we need trying Leveraging investments in me XX% talent what future. let tell as our revenue mindful

Our global strategy is access working.

we've continue customers our we've channels customer to margins while numbers product through shifting annually strategically expanded and increased. per to We access reduced achieve achieved in to which globally have the our yet result revenue

coming. it's is on and Next, schedule GX

around software’s to single-minded All the a We steps engaged software and great here. our past And months. the about and related we in at of GX over platform haven't be in are of differentiator quarter. a moving so a pace talking time frenetic our spent data in several development this today finally, and deal saw critical the efforts I've are a future going you big people never seen purpose. commitments

with And -- a beginning only You're experience also seeing the data see recently approved ONE beginning you're change FDA the sharing. enhancing It's Dexcom this. beginning. the to by great demonstrate of and technologies the

focus makes Thanks have data on healthcare term in be for lives been day. great the an a impact on a in general. devices generated always from our their everybody and that consumed Our has way people's really to long

Quen Blackford

ladies for you This And today's gentlemen. participating. thank conference. concludes and you, Thank

disconnect. now may You

DexCom (DXCM) 29 Oct 212021 Q3 Earnings call transcript