DexCom (DXCM) 27 Oct 222022 Q3 Earnings call transcript

Hello, and welcome to the DexCom Third Quarter 2022 Earnings Release Conference Call. My name is Michelle, and I will be your operator for today's conference. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, today's conference is being recorded. the to turn now will call Mr. over I Christensen. Sean Sir, you begin. may

DexCom's operator, XXXX and you, third welcome Thank to quarter earnings call.

Our Chairman, President Chief Financial our Kevin and outlook Sayer, who financial Sylvain, by with ongoing summarize our Jereme followed and recent agenda will highlights review initiatives a Officer. from and begins CEO, strategic DexCom's

question Please note provide page. our also remarks, we to for website slides opportunity DexCom to that At questions. review related ask participating prepared on will analysts performance available up today. can Harbor Following that, Relations time, themselves limit With quarter so for on everyone one to your an open the that there we Safe we Investor Presentations are our our third and call let's the Events statement. the

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

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

Now, I over it turn to will Kevin.

Thank growth revenue thank strong third Today, of for you, and of with another quarter today. reported DexCom XXXX. joining to third Sean, for quarter XX% we us quarter compared everyone, you, the organic

while as we history. incredibly initiatives company's new strategic executed U.S., Our primary and to care physicians. well for teams advance the momentum In traction among endocrinologists continued the launch our ongoing quarter growing work strong preparing largest after product loyalty second with with starts customer saw our our in we

engage superior to they about benefits teams DexCom clinical eager the outcomes with learn these We and are provide our can physicians finding patients. CGM as their that more

the help as prescription better the DexCom continued The domestic to of drug U.S., adopt via within of ahead we population as critical relationships growth higher-risk to intensively managed these today. the Northern X generally our customer to Wales, type majority smaller them ONE CGM everyone tariff market reimbursement health. type U.S. intensive announced was our the previous and deliver on diabetes these of NHS they One DexCom be runway inclusion customer care This limited long population the While of serve this with Ireland in for expanded Scotland our quarter. X to markets help to also access we population to primary expect aspirations, access August, wins individuals. long-term insulin-using England, us manage core example, diabetes. to the Outside their better still expect vast in team the meaningfully a has a and announcement the

use Importantly, how new a reach to globe. we clear this across more strategy many can portfolio Whether enter example people leverage is geographies of our to the diabetes with ONE we DexCom cases, or these a market have choice access customers. large for of expand the reach. In to is existing markets, opportunity there that lacked are within improve product to our segments many

health providing and systems being from welcomed alike. DexCom's CGM enthusiastically leading is solution customers So real-time

we As the you launch in United is of successful Austria Germany, to OUS limited Hong following Ireland, a GX very were initiate GX excited also available Kingdom, now seen, and have many Kong. of our full launch.

game-changing We for time not have This to but day this for looking a is step we forward DexCom a as launch. the GX major a forward been long only entire market. diabetes view is technology for

makes say, experience convenient about better. It change smaller sensors, and grace form time, and As to XX-minute customers allow more. time improved everything XX% choose it takes to a we an a GX GX to factor, XX-hour often warm-up has period app

specifically this the product lives of incredibly performance users. our has this that next product designed customers, the is been to building confidence upon feedback that and positive, of by adds trust while accuracy DexCom our from recognized our and GX These earliest take The customers earned clinicians. our the of which our level. improve advancements will being that to All has were the launch and

study working a gestational, that would has clearly journey, of payers starting to a global to CMS progression the over GX yet proposed the more GX body lines, to we in CMS beyond for software of meaningfully we We system in people with holds last led and is us. product with evidence well intensive those their make from for finalized, again believe U.S. months. population, very regulatory In anticipate to population people FDA, size in implications before include to for diabetes. intensive response customer been study Historically, meaningfully population. will but is in the pathway of local one to subsequently long-term million with steady quickly the insulin basal-only reimbursement CGM to around managed would received the assessed This accessible Similar publishing potentially population, opportunity economic This diabetes not applaud managed our to in with expand Medicare of allow burden and position day. preventing the individuals. is reductions Coverage to broader sizable for significantly appear and response changes only, this Technology of line clearance mobile and proposal only coverage type outcomes population the a and the additional the the CMS individuals necessary receive many. beyond experienced CMS available type that decision our us are that the a This suggests demonstrating levels Notably, expect that major we time in dynamic the This across In in taking reduce CGM expectations and largest individuals. as became moving the early exciting would the and often product recognized medication moving much This less per Diabetes this to be care. insulin-using the on the to we and for as on with range space broadly beyond. X promise earlier occur DexCom, in intensively end efforts across geographies diabetes completed a a or escalation to as of technology published diligently world, Xs, associated people the we have to alone they expecting and improvements insulin-using treated in cohort tracking XXXX range have life-changing help rolling recently the proved coverage disease. clinical we range to U.S., have help and data, hypoglycemia. this time when validated basal DexCom time be Therapies. diabetes to determination responded ensure of on coverage study, decisions, study also lead shared where that predominantly operating CGM first trial, noninsulin-using health We the this lead. same to one of and X published benefits several expand health payers Once the approximately noninsulin-using the in has noninsulin-using on and commercial improvements growing software potential the demonstrated the our population. type for to meaningful in first to are CGM the be individuals meaningful it exists of as We This those one population type Medicare These here. Along a next DexCom came being reimbursement Since hospital, agency MOBILE we'll for X AXC a demonstrated and there the outcomes GX intensively group. data metabolic into the feedback we is they X the make well cadence out is population for we the population first that of health expansion from time a cover is designed. this us the October, improve for and ready basal-only in that our the direct future including the year. again the and quarter. proposal

However, we're not there. stopping

of Jereme? ahead continue With could access There over DexCom. millions that review turn to a the from to financials. is it advocate I'll massive to CGM. real-time Jereme will a for opportunity for of third individuals quarter We the that, benefit for additional

you, Thank Kevin.

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

of reported to of of an organic third XX% $XXX quarter million third For million on we representing of worldwide growth the $XXX revenue basis. the for compared XXXX, quarter XXXX,

reminder, our definition our of third acquired the revenue U.S. to in initial a encouraged million We of in quarter continue the the a salesforce positive past The organic made those revenue to our addition $XXX that in revenue inflection As business. been have investments This to in trends for with saw earlier the Momentum instituted quarter of we team and QX customer tools compared non-CGM signs have see trailing in $XXX in line starting reacceleration revenue is third in XXXX, an more currency resulted over year in continues are of growth high followed. to in late today, growth a productivity our totaled And new million representing the months year to make months. expectations. grow our this XX third the quarter. to off. calls salesforce excludes U.S. XX%. metrics yielding pay We in efficient. in

We by people cash have also simplify in access recently for steps taken pay creating the multiple United States options. to

reimbursement outside the demand non-intensive from We space. growing coming our are X seeing current landscape, including type

help the So access. these programs we International these broaden to International growth serve to revenue million in we established XX%, revenue XX% third as quarter. organic work third for grew the quarter. was $XXX customers totaling

deliver the share. Our are completed initiatives helping market gain international continues impressive year to results past access business as us over

And are Australia, positive higher demand. customers GX. currently, Within we saw prior this to the in we example, For reimbursement for uptick recently access. three very our times than to new expanded around an expanded trending weeks, response seeing in are

dynamic We demand. to have where and again an serve access play broader immediate almost seen this as again, catalyst out can

CGM people to will we DexCom continue accessible prioritize efforts globe. our more across result, to a many to As the make

the XX.X% third third down quarter creates or the step to was costs gross now expected GX Similar margin dynamic a as year-over-year accounts the revenue $XXX.X for to of in included some launch compared XXXX. million last comparison of profit to quarter, are development COGS. on quarter of difficult XXXX. gross in GX revenue compared Our of of XX.X% This

XXXX. Absent have million currency. for gross been quarter there this, were to impact $XXX million of basis gross the third the approximately negative point of XX%. in $XXX expenses Additionally, margin on from third were XXXX Operating compared quarter XX would margin

Our inflationary leverage ongoing drove to leverage operating full on while this focus We as on growth. despite spend of our we management XXX category of over this every points display quarter cost offsetting basis investment simultaneously quarter, in expense was support generated pressures.

$XXX.X XX.X% in high watermark free flow assessing opportunity, our free flexibility basis. of was third cash XXXX. terms million than focus in quarter of to in any to declines the $XXX.X the of million income We third Net this quarter great as those income cash be the for or the expenses in more worth new cash continue the remain $XXX.X share. compared the cash. XXXX on capital non-variable with global over strategic margin and quarter. same us commercial compared XX.X% on Our or support $XXX EBITDA revenue of We into $X.XX uses while savings of in quarter ongoing of This in million reinvesting for generating revenue per of XXXX offset $X.X provides will generating while operating billion million or quarter, gross ongoing quarter XX.X% to quarter or million equivalents. of of infrastructure. our growth the was million for leverage closing was an revenue of Operating position, $XXX.X $XXX.X also approximately to third Adjusted significant leverage or quarter third our reached expense the of revenue a financial XX% a

commercial largest necessary by scale be the facility of provide expect to be continues facility of and Construction continues on manufacturing capital the Our long-term our producing mid-next to product this targets. efficiency use buildup and This our cost year. manufacturing we support to us schedule, to will progress Malaysia plant.

point. During an accelerated allowed million over of purchasing with buying announced we dilution what convertible price also quarter, share back attractive XXXX notes program, at the our This our as viewed while we repurchase shares. XXX us outstanding shares the previously reduce our to associated third executed

Turning to guidance.

updating year full We $X.XX guidance XXXX $X.XX revenue range to billion. of billion a to our are

our following. updating year are we margins, to full For guidance the

prior sizable gross reducing our profit and our prudent full to quarter This EBITDA $XX we respectively. XX%, maintaining expectations now are another to relative our currency factors relative previously. around guidance we $XX from previous impact margin and XXXX. ago. We it headwinds reason currency margin of This guidance approximately are XX% million. margin the to in at We approximately guidance estimate adjusted in And the a down guidance year operating XX%, margin foreign primary we uptick to currency XX% our shared expect million headwinds for found of reduce for is gross

as we we pressure the leverage. reiterated guidance However, our operating offset expect exchange additional expense to ongoing through margin operating foreign

to are additional coming economic Leading environment not well We shifting immune to quarters. able have macro point been to date, to a uncertainty the but we to navigate through economic pressure. certainly in indicators continue

term. we are challenges proactively impacts these to can. these So through working offset where the work to we All incremental near dynamics could in create

We underlying and it With pass are ever our as for bullish Kevin. as opportunity to back business ahead that, I the will about DexCom.

Thanks, Jereme.

U.S. in the in third GX sharp advancing growth for in were growth when, trends and in committed following line rate. and quarter underlying business would process regulatory U.S., year. the going quarter strong, different that We a this the our track matter the GX us We end what more was that now reaccelerate in if. we a countries efforts do. our acceleration remain be and third on to said internationally said in We the of results characterized with committed to our would an the the we not closely the coverage of with rates delivering GX Our by clearance have we basal-only on delivered to in leaves launching said quarter, before behind. We're we and execution five as the

have Now around when. we clarity more

with on continue will going execution We type of operate to this forward. focus

two serving us. have as product. We him Jake Officer, Chief role Jake nobody and Technology decades road the With DexCom of recently our Officer, Sean? at Q&A. of almost knows promotion and recently I experience end-to-end providing Q&A, better Leach map the call GX Operating we most responsibility up than we Jake. Finally, as the open product for to Chief with into would announced with our to like for of move now

Q&A Thank instructions. provide you, the please Operator, [Operator Kevin. Instructions]

from Jeff comes first with The Instructions] Baird. [Operator question Johnson

is open. Please Your line proceed.

I international on business. with Good Thank I'd you. thought a guys. question start Kevin, your afternoon,

last You guys recent few wins. in have been benefiting the access from quarters

remarks. in You those prepared talked about the

dealing this company-specific some competitors was with your quarter issues. of One

kind it's maybe U.S. demand to So for good hard the going a what's feel underlying trends outside get of on

to nationalized Thanks. I lot you And in for less, care with tied seeing compared to guess do systems, macro anything your So paid your the are of macro health markets? consider or international international your markets business? are, a questions more U.S. international uncertainties through I guess, to you be sensitive

a help may I'll pass. on that. I take to me Jeff, ask Jereme first

We learned through in is and critical agencies U.S. key and getting have these getting our absolutely markets driving access to government growth. reimbursement

in the wins shifted our growth. UK, wins have wins and to technology product. That's we've We've access getting access. as can Spain. better had we've our price in our Germany create use what's to people had more to who we've in We're As more continued use driving

For right us trends that feel now, this isn't to continue. that we macro going haven't seen any would make

As run more to ONE we very gate. access, doing do well grow GX to for know, to and is to Jereme, to very be XXXX. will get that? much great home you us. of want a look going I DexCom a well. continue We we the forward internationally year don't is add if in out

us the U.S. Jeff, health towards of a some a care. historically, DexCom there's And access that's winning has approach No, ONE where additional been major cost-sensitive really outside care, outside played role U.S., for the

a less believe address multiple provides do really and differentiation. more acute, providing it both that to the we around these need opportunities systems So us acute

we portfolio opportunity given do what if opportunity you an for macroeconomic well our start to continue But of change see great product is starting dampen anything very, to to individual we keep expect do in there. well and see very demand terms to So access. now, there. we a And we'll posted

Robbie JPMorgan. next with queue comes question the from The you, Thank Marcus in sir.

the a and taking and the expectations for good Thanks really congrats set Maybe for here. is just I'll to I want quarter. ask and think should about opportunity, about questions model. to this try Great. the really updates we basal on exciting how

when start realize online? reimbursement, should the you the have when And are to impact this when higher model to off, patients at start be think really can to patients? them for about if do And rate, Thanks. then commercial plans Medicare. of normal add - First about the than meaning I expectations, should it's this pharmacy now? one-third it right coming think you new start Medicare we and And should

I'll the This with things. for be this event talking now. such You We're start stupid to. us commercial not know picture big what, and such starting and that plans big we'd about win big a is a

about thinking this are now. we So

Our and and later. things, as confident We're your as we'll out work But go are anywhere know going and that's be it. product from four, distribution of through all be could with models, we're through this. hit just to we exactly we offerings, discuss for to months get We part going this. five as that those we time like it's thrilled something can the far our strategy Robbie, when into this frame to nine ruling, we're thrilled the

get from well this people we on large numbers ahead. go Jereme, did. data because across you Our to into saw a if the those how pushing the in finish MOBILE initiative study was the more side, specifics want component line

Absolutely. Sure.

the So second half it is really Robbie, way given we're it's just a time. the - event thinking XXXX likely now about

contribution but as give is guide And so we'll much how we more you for to clarity that, XXXX. the expect as

really from even have throughout that terms journey, commercial plans. ultimately progressing of system, certainly know But outcomes. of to Medicare their you this and we cost improves Advantage the you expect we that reduces payers In folks think product as do following, as lives see

to so we well. as come along those do And expect

way it category this reimbursement, based of the an the on expansion of CMS terms In typically qualification. of is and is qualification, reverses that

think show end putting that us, it's so continue the the line on And the it it's outweigh with to benefits we day, far of somebody economic like thus of upon costs. looks reimbursed existing the far, it in and And qualifications. incumbent the CGM we at

more we we And show to to and that to think so comes. and can it's continue more prove evidence on evidence, that us as continue

little to of over we But the back get you of expect the that terms in year. we'll coming So you feel a contribution. for XXXX a what expectations should later bit give

in with Thank sir. the from comes queue Blackman Stifel. next you, The Matthew question

Your open. line is proceed. Please

frequency month, for for thought, basal about than where Also, the clinicians. on SKU varying heard been days Good feedback basal. you a afternoon, to as frankly, - have my And have but of a Thank I think to adopter basal there's maybe it's we question way everybody. these is taking can't XX-plus higher a any annual we I try about value question. if tracking reasonable that. We've tell modeling patients, what think per would from patient? in early another

it. helpful. be Just thoughts any Appreciate there would

basis study, Yes. I'll was back coverage. study at folks the you time, it was maybe draw CMS really full wearing which the targeted for to which MOBILE the MOBILE

there, here here most full-time here so relatively And is we But it folks day a as how There a and I is dips there get between expect as think what day in. coming would would the we be for see therapy, the to there, wear, folks that's most on might similar product get seen in part, and we've we or benefit. utilization. and for expect a

patient these from it wanted we've expect wear have folks new is early work to us, done around this patient for the They market it. a to full wear satisfaction, Clearly, I'd So time. there. wanted all but results, it

forward. expect we be going to so that the baseline And

in The with question sir. comes you, queue next Margaret Kaczor from Blair. Thank the William

acceleration to the little for wanted Hi, nice guys. you really where a a QX in to good growth. saw we bit afternoon, Obviously, taking are QX. U.S. about talk from Thanks questions. I

GX new but coming trended all going patient specifically XXXX, advance and into this QX how I And QX? more in in So into you'll this, going of know the is growth can context adds, you any around provide growth in of that's basal. in love

occur quarters So for why shouldn't to we acceleration now? assume an several Thanks. of even from more

the about Happy patient trends. Yes. to Sure. talk

QX, it's back more feedback kind record us. get equivalent and of that we'll rewind early even what least QX, of of data a soon. at is QX, here So saw we for

was patient us. for So QX very new strong add quarter another

on when expecting reacceleration so QX talked a a an of was and expectation we And that strong last QX. about and

think see had QX. a in that strong expect where QX. And reacceleration quite very, very a the That's frankly, we I strong we you U.S.

particular with that So, And GX. you is opportunity. right, are very that on bullish

obviously And are the GX so very offer we population. to U.S.

As as it pertains XXXX, about in the But to here momentum to guidance and I we'll still moving on talk this the that give the very are is we offer into opportunity we bullish think on opportunity XXXX. and about GX. takeaway business, very bullish ecstatic

you, comes the Matthew Thank question sir. with in O'Brien next The queue from Sandler. Piper

Your open, line is sir.

a Great. for you basal A could on if I said But know bit work expecting point going question. finer a Thanks of Maybe, early lot and year, Jereme, lot it's got to wear. be pretty things taking for you're half you little of second next through. to my just year? of next put days.

next going kind of contributor a question, it And fairly but basal next think a new GX and out year? a modest it So coming have you're to might then then as of to fair is have this year be patients. you

all Just years? Thank need the you. talk next you're going about manufacturing products several over to for these

Yes. Sure.

- the model Let expectation. maybe me start with the

We And will manufacturing. good here. the I be to have for Jake talk it through think him

proposal, things and through. Kevin Generally, out, to six model nine go how have to there's of So a month in there's a to terms it about earlier. where period it to look, alluded

why this start coverage And coverage, a half. recurring in so really expect to is open to up the that's that as we business. revenue And start again, folks back

How time grows, there. will Jake give for have we that and bit size things how So come going or that go XXXX maybe little up context still XXXX there a exiting give in as sure but slower, our me our guiding If momentum for we'll context a we're it it. certainly How size be a in expect that so make things of it we you material, as give understand into in the going we'll contribution. over a material, earlier of we're capacity, you to But that to faster we or that you, some XXXX. contribution we'll to up, turn to you - assumptions. and clarity to terms expectation it there's contribution But XXXX. is so let really take it's you you

Jereme. Thanks, Yea.

launch capacity from been a for quite perspective, gearing while. GX we've a for up So this

San So here in we've Mesa. as well as got in Diego GX lines installed

really our we so full feel that U.S. to the will the of got launch our position to meet you we've about year. as international the next plant needs continue Malaysia our Also good And remind throughout the online coming GX that as launches well year.

also capacity. help So that our should boost

And so I feel about really to product. good GX and the GX ability both provide

with The in next question queue Wuensch the comes you. Thank from Joanne Citi.

open. Your line is

Thank question. taking you for

any heard that. Sorry, if you I don't know, But... of

Let's start over.

that layer think six Good mind your for I business, GX evening States. you on put together to and thank contributing? the we like should about said core you that in was think DexCom you is starting How taking How United top the ramping? question. geographies outside ONE my benefit. launched Because base in, that of I

DexCom top course, ONE? ONE You layer layer that the and, for What's of on of basal. DexCom

to but viewed. accuracy on comments places to our with deliver, patients, But can while. going the now get time, our other geographies but And able very going you real-time I over the isolated bigger now we'll core it. numbers, not going be Series build to There into these models our of source the we all call. forward have CGM higher-risk will Europe where reiterate our you later, mean, you That to launch and tell I'm I'll and patients Joanne. I will is are level important been reimbursed business of into many and our - on customers. will compete accepted the of for for hypoglycemia. pumps particularly get lower-cost more, where a a G or models. layer with primary geographies we features those be to we're a with pie. ONE a see bigger and other for In we narrowly revenue business, offering, be where And in CGM were and were DexCom go we we Jereme, these many again, product need grow core us, That countries other is take of piece severe elements and

You why little you more? - don't a add

Yes.

completely how model question to Joanne, the So understand I it. and

would is is getting I a just what think started. business say this in XXXX, I

So a contributor it's XXXX. in not material

However, challenge. understand the we

able so start guidance to to we will we're we time. like looks as contribution give the make over what And sure that forward-looking identify

you line bigger, just gets So that of rest business we'll to give start sight as that. assured, into

amount we've TAM. we incredible unlocked to most important certainly as how patients For that's an bringing is many think now, And in. super of going we're what's important be new about

So more ONE forward. just about is for come XXXX now, a models in help few and there you small we'll this relatively talk to months. a here year, But contributor DexCom with certainly going we'll know

queue Thank James. the The comes from next you. question in Bedford Jayson with Raymond

is open. line Your

Thanks. afternoon. Good

one. in a any not, have I differences? Just missed quarter? growth And geographic about on but the this, Thanks. comment may maybe talk volume did quick you you? if And can

Yes. Sure.

mid- globally. unit in were the in volume we upper XXs to the So

strong upper In slightly and that OUS below that volume. patient of the cohort that still patient XXs but that momentum above performance, really terms slightly in in was the or was the just and continued so U.S. underlying mid-XXs, in the

the in Fargo. Thank you, Larry Wells from Biegelsen queue question The next sir. comes with

is This evening. Larry. for on Good Nathan Treybeck

GX? how anything there about we do full done? year-end, be to how should of is soon the launch? And around U.S. In than the should then comments your launch And think needs there different any after still a it timing Thanks. you GX reason why that terms be Is expect the by ramp? approval

This is I'll Yes. Thanks the Jacob. question. take one. that for

final answers we FDA to their the in QX questions. the yes, So to with responded

so year. We're the QX, And QX. for about really the before to so feel planning that how us launch end approval we positions good of in occur really our in

will really launch our that back kind being the review status We're gone period. So be end a full we've of the of the forth. and FDA good the is this and about with - feeling

QX we're a so launch. And approval U.S. timing very that in and confident QX

Jefferies. The with next Tyler] queue comes [Matt the from in question

line Your open. is

and markets thinking going out about to the as meet some at can much to little some on the world? a of flavors you the kind I your you commentary you very Thanks GX portfolio? where strategy could Hi. ways I What customers double-click portfolio your guess, for or question. to wanted and ONE on bit actually about there. DexCom different talk together taking different GX, GX use more that how of different one you're they're use in around are get of

that There Yes, that flagship very roll to expand run. GX be new. is at G product, countries some we to our home while let high level. go geographies. a be with our we're And others. customer that take Series base a product, going we be it will this those GX be Kevin. is where comfortable not prudent our It's going can so that to out. rush grow will is into being I'll - Certainly, We GX

we have ready existing with remain everybody on platform. So shift strengthen a are GX we to out not the their similar platform. look ultimately to our And in it in will and and and at a and there get use where beginning partners With DexCom business to that we'll very move where we now sell to in the ourselves to capacity else very fast. GX and to our current roll way. they We're on GXs DexCom that we will as ONE features, the doing the our to all need And GX going well things platform, We're that areas anyway. and grow, GX currently product GX need GX light as ONE do. we connectivity that far

we've for two look said is major ONE, So times as purposes. that product at many you DexCom

e-commerce first is utilize to have it the And two then new And But where before. as area, the they four to the always right we a those and now. better serve had that experience sensors on other G our ever to and than we've using and a DexCom features and are in will countries, we - pay countries CGM of an again, where business customers one and sell that markets for can into are type first online with is is those had go and that where in vehicle plan Series. go get do give we high-risk ONE launch into there geographies situation for they've those as them capacity have CGMs we this connectivity there The patient for types the reimbursed. the

next question Thank Thibault The ahead, comes sir. queue with Go Ma'am. the in Marie from you, BTIG.

out hear your ask and that's that's how here for cash so a a shift pay much being believe a hearing so bit on or providers you Thank shift for option? are Wanted DexCom rolled how question. to mistaken, taking that in the Thanks about recent one U.S. the cash about little new Would pay comments on patients strategy? more and Unless I much. to I'm love

it's for an is a or the an say augment Yes, existing Jereme. an addition a strategy. of sure. Thanks bit question. change. I'd It's to This

that believed access access And believe always at term, basis is of incredibly that the long we've over the important. we adoption. So is

that we so certain them want However, there diabetes. product to the felt their access. out the populations to in have high was continue there we do allow are a some product that to while to to And use way that interest work this on manage that

- cost a what price. should are cash while than good we're populations. doing get it pays. multiple I of is coverage, to have so what of what folks targeted price the get the work less being launching to have don't less here example, XX% the And And than promoted opportunity, that product been. goal the is them And what coverage, discount those the XX% basal good would in say. have versions different They is historically can't is for here we shortly a background of We'll a we is

opportunity, ways out. multiple good rolling multiple going it different different options, we're to real So be

But it I a thing think You'll soon. see marketing access. would this - for some is I around great materials

thing looking it's whatever to allow so. for folks been do to to think I reason, that, great able have a them who a for been haven't get on DexCom

comes Thank question you, from the with Canaccord. The Rose next queue Kyle in sir.

for Thank the taking question. Great. you

going GX the few U.S. move the countries now, obviously, to launch, year. in a into starting So you're in next the QX

should and of the we how when the gross Just COGS the about as we turn Malaysia should how over Just facilities line you margins next thinking coming we in facility course XX - particular, about those be think then the well? online months? on when

Yes.

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is, there GX I countries, in is more blips going to transition the launch Longer expectation you'll lower improve. cost periods a those make And the more we into folks GX, specifically So some than in and we you're think certain increase, then U.S. see of those which off margins at GX and to have can as term, GX.

turn around we into have modeling trying cadence on expectation when then help after recovery We'll get to that's the out as so a just online, you transitory. XXXX the but your the when as that. And what and dip of the like head looks you're you'll we this it's get guidance,

sir. question with Oppenheimer. Steven is Thank queue you, And Lichtman the in the next

Thank you. guys. Hi,

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Thanks for the question.

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think how terms is which helpful. doing, In of maybe points, couple think I of data we're I

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Miksic Barclays. in question queue next The sir. you, Thank comes with from the Matt

all a Thanks works opportunities a you up Great. little question and the of time? these of bit to have get on into bit some of a a is Is spend to that of about new these of not of across Maybe of how into really up would together portfolio ramping of about sort kind the helpful. the But questions over lines. might could maybe talk respond sort at middle ramp-up on guidance as of synergy the you these? the about a Maybe bit then question. flex how of little following just GX, in expect if Hi. kind you opportunities on super be or so the Can it Kyle's comes question, all question. terms you talk how some channel, of a much leverage some taking channel the modeling for follow-up a just of that, you. Do little you're there about? P&L Thank get talking and

sure. Yes,

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then products, how the becomes ultimately patient you price so a as point and And think these then question it of about service we there.

time, with it. We I to Over that's got go over to much So economies itself. what markets would through time point, product grow we depending certain way of is markets do less the about into as the physical on those scale. price say into think it's

we for with DexCom reasons here. into going a markets, profile. so we opportunity of grow certainly profitability are The believe us scale one And of ONE, massive. real those that's economies can the by great there's that And into

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So is the the contribution ultimate operating same. margin

about it. So we think that's how

you're so through, I And as modeling how about that's think would it. it

former cash at Yes. a lost is something our performance flows quarter. I'd to just on operating add Take don't want to this that. And I Record look I call. a the hear. CFO as this love

have And our managed so business very tightly. we

do your work cost we're about our new patients, works very product cost is have our manufacturing costs streams serve our at doing. our As And lines, products, new develop to given question these appropriate. we these, to all our we new look we're things

the of we're the company We the at product every as structure are as bit looking cost launches. much looking at

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the in with Cowen. Joshua sir. question queue you, The Thank from comes next Jennings

just wanted for contributions partner. quantify I the growth. either approved and XQ approval the GX remind in the front into Any for question. with describe could you if GX front? Thanks anything of that your And you right. Thanks on you acceleration sequential pump integrate about And the in to ask partners? once on qualitatively can the from us evening. question. GX or can can be topic, taking And highlight year-over-year Good your insulin just All revenue done new just of to if is pumps. are steps that that what Tandem requirements just expectations

over me product Jake, maestro Sure, who turn I'll and understanding the with our let it contribution. start And is products. development to on

of products more about obviously more integrated very Tandem we with, launch that contribution, Insulet and as products. are they excited contribute. expect to terms both we and look, we're In And it

quantifying and were over. contributions, some DexCom pull it's Now folks difficult who CGM those already a pump, having bring products to some bit little folks that - some do on a given and in

tease it really that and the I'll terms folks time on we'll incredible give feedback opportunity GX. on, these moves Jake on moves because retrospectively at the in give bullish the of Again, to still as it be it just to timelines pump be ultimately of apart. hard contribute. But to me leave we're what that able connectivity as So say would gets partners. I to able time we'll But on. we using think let our is product with

Thanks, Jereme. Yes.

integration such GX period. take GX are the to fast So advantage make a as updates well new steps warm the to features the few with side as up the partners, within on of the as basically, are our that pump grace pump on

have on they quite for working - already are groups that while. those been a so already And

great validation. do kind those of And integrations. we steps final of through see so development progress on and They've gone

can work a that your lot point, be, to of So done time. of ahead

our be that and approvals do to them in when I'll and it Europe have to that up we out, very expect thing that have API pump timing launches, connected where so the are of example, to rapidly, on comes for we're soon. digital And a GX But integrated integrations. health progressing One our our leave those GX is note we partners, already to on real-time partners. specific side other we'll

the the launch. group at For data their example, Sugarmate that's already app is within GX consuming a of beginning

very the So to excited about more opportunity to ecosystem GX. bring with the

Thank you, sir.

at closing to questions turn further call Mr. We remarks. will time. I the no for Sayer have over this

related for the chaos, going a us as we product line This and were our is again. do a we when Thanks performance everybody. what to launches, to expanding we've on of great the a said excitement time access in with done bottom quarter growth, world lot a lot, global with was well in yet

very And it's both people to want been more with diabetes outside and to help I year our teams all we're hard ONE to behalf proposal a look towards done, to work lives, diabetes of represents as for markets collective result. the member Thanks trying hands recent to for to large in goals. all the our all well want to lot, note. want do. I of for deck help from the and together only share that work technology. DexCom CMS close end and It I diabetes. thank inside towards of acknowledge the improve one with everybody. Our are special of community executing many team in the hard members effort we on just to The press momentum GX to only beginning. that big we thank this and access get are to want working strive build things diabetes led DexCom the a get out the is group next their a CGM healthier the advocating of on have these win a this that people This year. and excitement to a these members community. U.S. so the the do diabetes to was with community But proposal, live We to

you for This you, participating. today's will ladies Thank teleconference. and conclude gentlemen. Thank

disconnect. may You now