In this article, shares of Dexcom dropped by 9% in extended trading on Thursday following the release of the company’s third-quarter results. The results surpassed analysts’ expectations but revealed a decrease in U.S. revenue compared to the previous year.
According to a survey of analysts by LSEG, Dexcom’s revenue rose by 2% to $994.2 million from $975 million in the previous year. However, the company’s U.S. revenue declined by 2% from $713.6 million in the prior year. Dexcom reported a net income of $134.6 million, or 34 cents per share, an increase from $120.7 million, or 29 cents per share, in the same period last year.
Dexcom provides tools like continuous glucose monitors (CGMs) for patients with diabetes. In August, the company introduced its first over-the-counter product, Stelo, designed for adults not using insulin.
The company reaffirmed its full fiscal-year guidance, anticipating revenue between $4 billion and $4.05 billion. In the previous quarter, Dexcom revised its guidance down from the initial forecast of $4.20 billion to $4.35 billion in the first quarter.
Following a revenue miss and the revised guidance, Dexcom shares plummeted over 40% after the second-quarter results were released in July. CEO Kevin Sayer attributed the challenges to restructuring the sales team, lower new customer acquisition, and reduced revenue per user.
During a call with investors on Thursday, Sayer mentioned that these issues showed improvement in the third quarter. Additionally, Dexcom announced the retirement of Teri Lawver, the company’s chief commercial officer, by the end of the year. Lawver will serve as an advisor until early next year, while Sayer will oversee the commercial organization as Dexcom seeks a replacement.
