Dexcom Reports Second Quarter 2024 Financial Results, Updates Guidance, and Announces $750 Million Share Repurchase Program
Second Quarter 2024 Financial Highlights:
-
Revenue grew 15% year-over-year to
$1.004 billion on a reported basis and 16% year-over-year on an organic1 basis. -
U.S. revenue grew 19% and international revenue grew 7% on a reported basis and 10% on an organic1 basis, all on a year-over-year basis. -
GAAP operating income of
$158.0 million or 15.7% of revenue, an increase of 100 basis points compared to the second quarter of 2023. Non-GAAP operating income* of$195.4 million or 19.5%of reported revenue, an increase of 130 basis points compared to the second quarter of 2023.
Second Quarter 2024 Strategic Highlights:
-
Launched Direct-to-Watch in the
U.S. and several international markets, providing G7 customers the option to use an Apple Watch as their primary display for glucose readings -
Secured coverage for Dexcom ONE in
France for people with type 2 diabetes using basal insulin only, further expanding reimbursed access for real-time CGM in this market - Advanced pump connectivity with the integration of Dexcom G7 to Insulet’s Omnipod 5 Automated Insulin Delivery System and Tandem Diabetes Care’s Mobi insulin pump with Control-IQ technology
- Showcased extensive clinical evidence at the American Diabetes Association’s 84th Scientific Sessions, including new real-world data demonstrating the benefit of Dexcom CGM for people with type 2 diabetes not on insulin
“While Dexcom advanced several key strategic initiatives in the second quarter, our execution did not meet our high standards,” said
_________________________ | ||
1 |
Second quarter 2024 organic revenue was |
Third Quarter and 2024 Annual Guidance and
-
Revenue of approximately
$4.00 - 4.05 billion (11 - 13% organic growth2) - Non-GAAP Gross Profit Margin of approximately 63%
- Non-GAAP Operating Margin of approximately 20%
- Adjusted EBITDA Margin of approximately 29%
In addition, to account for certain unique items impacting 2024 seasonality, the company is establishing guidance for third quarter 2024 Revenue of approximately
The company also announced a
Second Quarter 2024 Financial Results
Revenue: In the second quarter of 2024, worldwide revenue grew 15% to
Gross Profit: GAAP gross profit totaled
Non-GAAP gross profit* totaled
Operating Income: GAAP operating income for the second quarter of 2024 was
Non-GAAP operating income* for the second quarter of 2024 was
Net Income and Diluted Net Income Per Share: GAAP net income was
Non-GAAP net income* was
Cash and Liquidity: As of
_________________________ | ||
2 |
Organic growth excludes non-CGM revenue acquired or divested in the trailing twelve months, as well as the impact of foreign exchange. |
* See Table E below for a reconciliation of these GAAP and non-GAAP financial measures.
Conference Call
Management will hold a conference call today starting at
Statement Regarding Use of Non-GAAP Financial Measures
This press release and the accompanying tables include non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with generally accepted accounting principles in
About
Category: IR
Cautionary Statement Regarding Forward Looking Statements
This press release contains forward-looking statements that are not purely historical regarding Dexcom’s or its management’s intentions, beliefs, expectations and strategies for the future, including those related to Dexcom’s future operating results and financial position, including estimated Revenue, Non-GAAP Gross Profit Margin, Non-GAAP Operating Margin, and Adjusted EBITDA Margin for fiscal year 2024, and expected growth rates as compared to the year ended
|
||||||||
Table A |
||||||||
Consolidated Balance Sheets |
||||||||
(In millions, except par value data) |
||||||||
|
|
|
|
|||||
Assets |
|
|
|
|||||
Current assets: |
|
|
|
|||||
Cash and cash equivalents |
$ |
939.2 |
|
|
$ |
566.3 |
|
|
Short-term marketable securities |
|
2,181.5 |
|
|
|
2,157.8 |
|
|
Accounts receivable, net |
|
945.2 |
|
|
|
973.9 |
|
|
Inventory |
|
570.3 |
|
|
|
559.6 |
|
|
Prepaid and other current assets |
|
212.2 |
|
|
|
168.3 |
|
|
Total current assets |
|
4,848.4 |
|
|
|
4,425.9 |
|
|
Property and equipment, net |
|
1,183.1 |
|
|
|
1,113.1 |
|
|
Operating lease right-of-use assets |
|
71.2 |
|
|
|
71.4 |
|
|
|
|
23.3 |
|
|
|
25.2 |
|
|
Intangibles, net |
|
114.5 |
|
|
|
134.5 |
|
|
Deferred tax assets |
|
475.8 |
|
|
|
419.4 |
|
|
Other assets |
|
82.9 |
|
|
|
75.0 |
|
|
Total assets |
$ |
6,799.2 |
|
|
$ |
6,264.5 |
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|||||
Current liabilities: |
|
|
|
|||||
Accounts payable and accrued liabilities |
$ |
1,569.8 |
|
|
$ |
1,345.5 |
|
|
Accrued payroll and related expenses |
|
116.1 |
|
|
|
171.0 |
|
|
Short-term operating lease liabilities |
|
21.6 |
|
|
|
21.1 |
|
|
Deferred revenue |
|
14.7 |
|
|
|
18.4 |
|
|
Total current liabilities |
|
1,722.2 |
|
|
|
1,556.0 |
|
|
Long-term senior convertible notes |
|
2,437.8 |
|
|
|
2,434.2 |
|
|
Long-term operating lease liabilities |
|
76.8 |
|
|
|
80.1 |
|
|
Other long-term liabilities |
|
128.1 |
|
|
|
125.6 |
|
|
Total liabilities |
|
4,364.9 |
|
|
|
4,195.9 |
|
|
Commitments and contingencies |
|
|
|
|||||
Stockholders’ equity: |
|
|
|
|||||
Preferred stock, |
|
— |
|
|
|
— |
|
|
Common stock, |
|
0.4 |
|
|
|
0.4 |
|
|
Additional paid-in capital |
|
1,992.3 |
|
|
|
3,514.6 |
|
|
Accumulated other comprehensive loss |
|
(38.0 |
) |
|
|
(16.7 |
) |
|
Retained earnings |
|
1,311.3 |
|
|
|
1,021.4 |
|
|
|
|
(831.7 |
) |
|
|
(2,451.1 |
) |
|
Total stockholders’ equity |
|
2,434.3 |
|
|
|
2,068.6 |
|
|
Total liabilities and stockholders’ equity |
$ |
6,799.2 |
|
|
$ |
6,264.5 |
|
|
||||||||||||
Table B |
||||||||||||
Consolidated Statements of Operations |
||||||||||||
(In millions, except per share data) |
||||||||||||
|
|
|
|
|
||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Revenue |
$ |
1,004.3 |
|
$ |
871.3 |
|
$ |
1,925.3 |
|
$ |
1,612.8 |
|
Cost of sales |
|
377.6 |
|
|
324.9 |
|
|
736.7 |
|
|
603.8 |
|
Gross profit |
|
626.7 |
|
|
546.4 |
|
|
1,188.6 |
|
|
1,009.0 |
|
Operating expenses: |
|
|
|
|
|
|
|
|||||
Research and development |
|
136.0 |
|
|
119.3 |
|
|
277.5 |
|
|
238.3 |
|
Selling, general and administrative |
|
332.7 |
|
|
299.0 |
|
|
652.0 |
|
|
595.4 |
|
Total operating expenses |
|
468.7 |
|
|
418.3 |
|
|
929.5 |
|
|
833.7 |
|
Operating income |
|
158.0 |
|
|
128.1 |
|
|
259.1 |
|
|
175.3 |
|
Other income (expense), net |
|
29.8 |
|
|
31.2 |
|
|
61.2 |
|
|
48.5 |
|
Income before income taxes |
|
187.8 |
|
|
159.3 |
|
|
320.3 |
|
|
223.8 |
|
Income tax expense |
|
44.3 |
|
|
43.4 |
|
|
30.4 |
|
|
59.3 |
|
Net income |
$ |
143.5 |
|
$ |
115.9 |
|
$ |
289.9 |
|
$ |
164.5 |
|
|
|
|
|
|
|
|
|
|||||
Basic net income per share |
$ |
0.36 |
|
$ |
0.30 |
|
$ |
0.73 |
|
$ |
0.43 |
|
Shares used to compute basic net income per share |
|
399.2 |
|
|
386.7 |
|
|
394.8 |
|
|
386.7 |
|
Diluted net income per share |
$ |
0.35 |
|
$ |
0.28 |
|
$ |
0.71 |
|
$ |
0.40 |
|
Shares used to compute diluted net income per share |
|
416.8 |
|
|
431.5 |
|
|
416.9 |
|
|
426.6 |
|
||||||||||||||||
Table C |
||||||||||||||||
Revenue by Geography |
||||||||||||||||
(Dollars in millions) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
$ |
731.9 |
|
|
$ |
616.6 |
|
|
$ |
1,385.1 |
|
|
$ |
1,142.6 |
|
|
Year over year growth |
|
19 |
% |
|
|
21 |
% |
|
|
21 |
% |
|
|
19 |
% |
|
% of total revenue |
|
73 |
% |
|
|
71 |
% |
|
|
72 |
% |
|
|
71 |
% |
|
|
|
|
|
|
|
|
|
|||||||||
International revenue |
$ |
272.4 |
|
|
$ |
254.7 |
|
|
$ |
540.2 |
|
|
$ |
470.2 |
|
|
Year over year growth |
|
7 |
% |
|
|
38 |
% |
|
|
15 |
% |
|
|
30 |
% |
|
% of total revenue |
|
27 |
% |
|
|
29 |
% |
|
|
28 |
% |
|
|
29 |
% |
|
|
|
|
|
|
|
|
|
|||||||||
Total revenue (1) |
$ |
1,004.3 |
|
|
$ |
871.3 |
|
|
$ |
1,925.3 |
|
|
$ |
1,612.8 |
|
|
Year over year growth |
|
15 |
% |
|
|
25 |
% |
|
|
19 |
% |
|
|
22 |
% |
(1) |
The sum of the revenue components may not equal total revenue due to rounding. |
|
|||||||||||||||
Table D |
|||||||||||||||
Revenue by Component |
|||||||||||||||
(Dollars in millions) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
|
|
||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Sensor and other revenue (1) (2) |
$ |
947.0 |
|
|
$ |
778.0 |
|
|
$ |
1,801.3 |
|
|
$ |
1,429.9 |
|
Year over year growth |
|
22 |
% |
|
|
30 |
% |
|
|
26 |
% |
|
|
25 |
% |
% of total revenue |
|
94 |
% |
|
|
89 |
% |
|
|
94 |
% |
|
|
89 |
% |
|
|
|
|
|
|
|
|
||||||||
Hardware revenue (1) (3) |
$ |
57.3 |
|
|
$ |
93.3 |
|
|
$ |
124.0 |
|
|
$ |
182.9 |
|
Year over year growth |
|
(39 |
)% |
|
|
(5 |
)% |
|
|
(32 |
)% |
|
|
(1 |
)% |
% of total revenue |
|
6 |
% |
|
|
11 |
% |
|
|
6 |
% |
|
|
11 |
% |
|
|
|
|
|
|
|
|
||||||||
Total revenue (4) |
$ |
1,004.3 |
|
|
$ |
871.3 |
|
|
$ |
1,925.3 |
|
|
$ |
1,612.8 |
|
Year over year growth |
|
15 |
% |
|
|
25 |
% |
|
|
19 |
% |
|
|
22 |
% |
(1) |
Includes allocated subscription revenue. |
|
(2) |
Includes services, freight, accessories, non-CGM revenue, etc. |
|
(3) |
Includes transmitter and receiver revenue. |
|
(4) |
The sum of the revenue components may not equal total revenue due to rounding. |
|
||||||||||||||||
Table E |
||||||||||||||||
Itemized Reconciliation Between GAAP and Non-GAAP Financial Measures |
||||||||||||||||
(In millions, except per share data) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
GAAP gross profit |
$ |
626.7 |
|
|
$ |
546.4 |
|
|
$ |
1,188.6 |
|
|
$ |
1,009.0 |
|
|
Amortization of intangible assets (1) |
|
7.1 |
|
|
|
7.1 |
|
|
|
14.3 |
|
|
|
14.3 |
|
|
Business transition and related costs (2) |
|
7.3 |
|
|
|
— |
|
|
|
7.3 |
|
|
|
— |
|
|
Credits related to COVID-19 (3) |
|
(3.0 |
) |
|
|
— |
|
|
|
(3.0 |
) |
|
|
— |
|
|
Non-GAAP gross profit |
$ |
638.1 |
|
|
$ |
553.5 |
|
|
$ |
1,207.2 |
|
|
$ |
1,023.3 |
|
|
|
|
|
|
|
|
|
|
|||||||||
GAAP operating income |
$ |
158.0 |
|
|
$ |
128.1 |
|
|
$ |
259.1 |
|
|
$ |
175.3 |
|
|
Amortization of intangible assets (1) |
|
8.4 |
|
|
|
8.8 |
|
|
|
18.8 |
|
|
|
17.8 |
|
|
Business transition and related costs (2) |
|
9.9 |
|
|
|
0.7 |
|
|
|
13.4 |
|
|
|
1.8 |
|
|
Credits related to COVID-19 (3) |
|
(3.2 |
) |
|
|
— |
|
|
|
(3.2 |
) |
|
|
— |
|
|
Intellectual property litigation costs (4) |
|
22.3 |
|
|
|
20.8 |
|
|
|
47.5 |
|
|
|
42.1 |
|
|
Non-GAAP operating income |
$ |
195.4 |
|
|
$ |
158.4 |
|
|
$ |
335.6 |
|
|
$ |
237.0 |
|
|
|
|
|
|
|
|
|
|
|||||||||
GAAP net income |
$ |
143.5 |
|
|
$ |
115.9 |
|
|
$ |
289.9 |
|
|
$ |
164.5 |
|
|
Business transition and related costs (2) |
|
9.8 |
|
|
|
0.6 |
|
|
|
13.2 |
|
|
|
1.6 |
|
|
Credits related to COVID-19 (3) |
|
(3.2 |
) |
|
|
— |
|
|
|
(3.2 |
) |
|
|
— |
|
|
Depreciation and amortization |
|
52.1 |
|
|
|
43.7 |
|
|
|
104.6 |
|
|
|
85.3 |
|
|
Intellectual property litigation costs (4) |
|
22.3 |
|
|
|
20.8 |
|
|
|
47.5 |
|
|
|
42.1 |
|
|
Loss from equity investments (5) |
|
1.8 |
|
|
|
— |
|
|
|
1.8 |
|
|
|
— |
|
|
Share-based compensation |
|
44.7 |
|
|
|
39.7 |
|
|
|
83.7 |
|
|
|
74.9 |
|
|
Interest expense and interest income |
|
(31.4 |
) |
|
|
(31.5 |
) |
|
|
(63.1 |
) |
|
|
(49.2 |
) |
|
Income tax expense |
|
44.3 |
|
|
|
43.4 |
|
|
|
30.4 |
|
|
|
59.3 |
|
|
Adjusted EBITDA |
$ |
283.9 |
|
|
$ |
232.6 |
|
|
$ |
504.8 |
|
|
$ |
378.5 |
|
|
|
|
|
|
|
|
|
|
|||||||||
GAAP net income |
$ |
143.5 |
|
|
$ |
115.9 |
|
|
$ |
289.9 |
|
|
$ |
164.5 |
|
|
Amortization of intangible assets (1) |
|
8.4 |
|
|
|
8.8 |
|
|
|
18.8 |
|
|
|
17.8 |
|
|
Business transition and related costs (2) |
|
9.9 |
|
|
|
0.7 |
|
|
|
13.4 |
|
|
|
1.8 |
|
|
Credits related to COVID-19 (3) |
|
(3.2 |
) |
|
|
— |
|
|
|
(3.2 |
) |
|
|
— |
|
|
Intellectual property litigation costs (4) |
|
22.3 |
|
|
|
20.8 |
|
|
|
47.5 |
|
|
|
42.1 |
|
|
Loss from equity investments (5) |
|
1.8 |
|
|
|
— |
|
|
|
1.8 |
|
|
|
— |
|
|
Adjustments related to taxes (6) |
|
(8.4 |
) |
|
|
(6.8 |
) |
|
|
(65.7 |
) |
|
|
(18.3 |
) |
|
Non-GAAP net income |
$ |
174.3 |
|
|
$ |
139.4 |
|
|
$ |
302.5 |
|
|
$ |
207.9 |
|
|
||||||||||||||||
Table E (Continued) |
||||||||||||||||
Itemized Reconciliation Between GAAP and Non-GAAP Financial Measures |
||||||||||||||||
(In millions, except per share data) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
GAAP net income |
$ |
143.5 |
|
|
$ |
115.9 |
|
|
$ |
289.9 |
|
|
$ |
164.5 |
|
|
Interest expense on senior convertible notes, net of tax |
|
2.9 |
|
|
|
3.8 |
|
|
|
5.8 |
|
|
|
5.5 |
|
|
GAAP net income used for diluted EPS, if-converted (7) |
$ |
146.4 |
|
|
$ |
119.7 |
|
|
$ |
295.7 |
|
|
$ |
170.0 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP net income |
$ |
174.3 |
|
|
$ |
139.4 |
|
|
$ |
302.5 |
|
|
$ |
207.9 |
|
|
Interest expense on senior convertible notes, net of tax |
|
1.2 |
|
|
|
1.2 |
|
|
|
2.4 |
|
|
|
2.4 |
|
|
Non-GAAP net income used for diluted EPS, if-converted (7) |
$ |
175.5 |
|
|
$ |
140.6 |
|
|
$ |
304.9 |
|
|
$ |
210.3 |
|
|
|
|
|
|
|
|
|
|
|||||||||
GAAP diluted net income per share (7) |
$ |
0.35 |
|
|
$ |
0.28 |
|
|
$ |
0.71 |
|
|
$ |
0.40 |
|
|
Amortization of intangible assets (1) |
|
0.02 |
|
|
|
0.02 |
|
|
|
0.05 |
|
|
|
0.04 |
|
|
Business transition and related costs (2) |
|
0.02 |
|
|
|
— |
|
|
|
0.03 |
|
|
|
— |
|
|
Credits related to COVID-19 (3) |
|
(0.01 |
) |
|
|
— |
|
|
|
(0.01 |
) |
|
|
— |
|
|
Intellectual property litigation costs (4) |
|
0.05 |
|
|
|
0.05 |
|
|
|
0.12 |
|
|
|
0.10 |
|
|
Loss from equity investments (5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Adjustments related to taxes (6) |
|
(0.02 |
) |
|
|
(0.02 |
) |
|
|
(0.16 |
) |
|
|
(0.04 |
) |
|
Impact of adjustment to GAAP diluted shares (8) |
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
Non-GAAP diluted net income per share (7) (9) |
$ |
0.43 |
|
|
$ |
0.34 |
|
|
$ |
0.75 |
|
|
$ |
0.52 |
|
|
|
|
|
|
|
|
|
|
|||||||||
GAAP diluted weighted-average shares outstanding |
|
416.8 |
|
|
|
431.5 |
|
|
|
416.9 |
|
|
|
426.6 |
|
|
Non-GAAP diluted weighted-average shares outstanding |
|
409.1 |
|
|
|
407.8 |
|
|
|
409.2 |
|
|
|
407.7 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Reconciliation of non-GAAP diluted weighted-average shares outstanding: |
|
|
|
|
|
|
|
|||||||||
GAAP diluted weighted-average shares outstanding |
|
416.8 |
|
|
|
431.5 |
|
|
|
416.9 |
|
|
|
426.6 |
|
|
Adjustment for dilutive impact of senior convertible notes due 2023 (10) |
|
— |
|
|
|
(18.9 |
) |
|
|
— |
|
|
|
(18.9 |
) |
|
Adjustment for dilutive impact of senior convertible notes due 2028 (10) |
|
(7.7 |
) |
|
|
(4.8 |
) |
|
|
(7.7 |
) |
|
|
— |
|
|
Non-GAAP diluted weighted-average shares outstanding |
|
409.1 |
|
|
|
407.8 |
|
|
|
409.2 |
|
|
|
407.7 |
|
(1) |
Represents amortization of acquired intangible assets. |
|
(2) |
For the three months ended |
|
(3) |
Represents a credit received related to employment of personnel during the COVID-19 pandemic. |
|
(4) |
We have excluded third-party attorney’s fees, costs, and expenses incurred by |
|
(5) |
Represents losses from equity investments. |
|
(6) |
For the three months ended |
|
(7) |
When our senior convertible notes are dilutive on a GAAP or non-GAAP basis, net income used for calculating GAAP and non-GAAP diluted net income per share includes an interest expense add back, net of tax, under the if-converted method. In loss periods, basic and diluted net loss per share are the same since the effect of potential common shares is anti-dilutive and therefore excluded. |
|
(8) |
The adjustments are for the transition from GAAP diluted net income per share to non-GAAP diluted net income per share due to our senior convertible notes. |
|
(9) |
The sum of the non-GAAP per share components may not equal the totals due to rounding. |
|
(10) |
We adjust for the dilutive effect of our senior convertible notes when the effect is not the same on a GAAP and non-GAAP basis for a given period. |
ABOUT NON-GAAP FINANCIAL MEASURES
The accompanying press release dated
We report non-GAAP financial measures in addition to, and not as a substitute for or as superior to, measures of financial performance prepared in accordance with GAAP. We use these non-GAAP financial measures for financial and operational decision making and period-to-period comparisons. We believe that these non-GAAP financial measures provide useful information about operating results, enhance the overall understanding of our operating performance and future prospects, and allow for greater transparency with respect to key metrics used by senior management in our financial and operational decision making. Our non-GAAP financial measures exclude amounts that we do not consider part of ongoing operating results when planning and forecasting and when assessing the performance of the organization and our senior management. While we compute non-GAAP financial measures using a consistent method from quarter to quarter and year to year, we may consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures.
These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles, differ from GAAP measures with the same names, and may differ from non-GAAP financial measures with the same or similar names that are used by other companies.
We believe that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP and that these financial measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP financial measures. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP information and the reconciliations between these presentations, to more fully understand our business.
Management believes organic revenue is a meaningful metric to investors as it provides a more consistent comparison of Dexcom’s revenue to prior periods as well as to industry peers. We exclude the following items from organic revenue:
- The effect of non-CGM revenue acquired or divested in the trailing twelve months; and
- The effect of foreign currency fluctuations
Management believes that the presentation of operating results that exclude these items provides useful supplemental information to investors and facilitates the analysis of our core operating results and comparison of operating results across reporting periods. Management believes that this supplemental non-GAAP information is therefore useful to investors in analyzing and assessing our past and future operating performance.
Table E reconciles the non-GAAP financial measures included in this press release to the most directly comparable financial measures prepared in accordance with GAAP.
Our policy is to exclude the following items from non-GAAP financial measures for non-GAAP gross profit, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, and non-GAAP diluted net income per share:
- Amortization of acquired intangible assets;
- Business transition and related costs associated with acquisition and divestiture, integration and business transition activities, including severance, relocation, consulting, leasehold exit costs, third-party merger and acquisition costs, and other costs directly associated with such activities;
- Credits related to the employment of personnel during the COVID-19 pandemic;
- Income or loss from equity investments;
-
Third-party intellectual property litigation costs in connection with Dexcom’s patent infringement litigation against
Abbott Diabetes Care, Inc. ; - Litigation settlement costs;
- Gain or loss on extinguishment of debt; and
- Adjustments related to taxes for the excluded items above, as well as excess benefits or tax deficiencies from share-based compensation, and the quarterly impact of other discrete items
Adjusted EBITDA excludes non-cash operating charges for share-based compensation, depreciation and amortization as well as non-operating items such as interest income, interest expense, gain or loss on extinguishment of debt, income or loss from equity investments, and income tax expense or benefit. For the reasons explained above, Adjusted EBITDA also excludes business transition and related costs, COVID-19 credits, litigation settlement costs, and intellectual property litigation costs.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240725250070/en/
INVESTOR RELATIONS CONTACT:
Vice President - Finance and Investor Relations
investor-relations@dexcom.com
(858) 203-6657
MEDIA CONTACT:
(619) 884-2118
Source: