DexCom, Inc. reported its financial results for the third quarter and the first nine months of 2024, highlighting significant revenue growth and changes in profitability compared to the previous fiscal period. For Q3 2024, the company generated revenue of $994.2 million, a 2% increase from $975.0 million in Q3 2023. For the first nine months of 2024, revenue reached $2,919.5 million, up 13% from $2,587.8 million in the same period last year. The U.S. market accounted for 71% of total revenue, with international sales also showing growth.
Despite the revenue increase, DexCom's operating income for Q3 2024 fell to $152.0 million, down 26% from $205.5 million in Q3 2023. The decline in operating income was attributed to higher operating expenses, which rose to $441.8 million in Q3 2024 from $417.8 million in Q3 2023. Net income for Q3 2024 was $134.6 million, a 12% increase from $120.7 million in the prior year, while net income for the first nine months of 2024 was $424.5 million, compared to $285.2 million in the same period of 2023.
The company’s gross profit for Q3 2024 was $593.8 million, reflecting a 5% decrease from the previous year, influenced by changes in product and channel mix and a non-cash inventory charge of $24.6 million. The gross profit margin percentage also decreased, primarily due to the increased sales volume from an additional 600,000 net users added in 2023.
DexCom's total assets increased to $6,353.8 million as of September 30, 2024, up from $6,264.5 million at the end of 2023. However, total stockholders’ equity decreased to $1,979.0 million from $2,068.6 million, largely due to a significant drop in additional paid-in capital, which fell to $2,050.5 million from $3,514.6 million.
In terms of strategic developments, DexCom launched the Stelo biosensor in August 2024, marking its entry into the over-the-counter glucose monitoring market. The company also initiated a share repurchase program, repurchasing 10.4 million shares for $750.0 million in Q3 2024. Additionally, the company is facing ongoing patent litigation with Abbott Diabetes Care, with a recent jury verdict finding DexCom liable for infringing one patent but awarding no damages.
As of September 30, 2024, DexCom had cash and cash equivalents totaling $621.2 million, an increase from $566.3 million at the end of 2023, and reported positive cash flows from operating activities of $688.1 million for the nine months ended September 30, 2024.
About DEXCOM INC
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