DexCom (DXCM) 25 Apr 242024 Q1 Earnings call transcript

Ladies and gentlemen, welcome to the DexCom First Quarter 2024 Earnings Release Conference Call. My name is Abby, and I will be your operator for today's call. [Operator Instructions]

As a reminder, the conference is being recorded. And I will now turn the call over to Sean Christensen, Vice President of Finance and Investor Relations. Mr. begin. may you Christensen,

and DexCom's Abby, Earnings Quarter Call. welcome you, First to XXXX Thank

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

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

slides everyone Relations At let's available the there can provide we harbor X question that time, so first that statement. our we to DexCom With safe the note ask opportunity related analysts and participating for quarter to are on that, Please Presentations page. our also limit website themselves to performance Events today. an review XXXX on Investor

date statements. future These expectations statements to reflect beliefs risks statements and on and those strategies, All this and intentions, events, of based statements differ of today's make materially Some the information presentation anticipated the various to forward-looking hereof we subject from management's about in available the products, forward-looking will currently in forward-looking and results are could performance. statements. as constitute made actual are operating competition, included plans uncertainties, in call may DexCom,

actual we assume or statements date to forward-looking the XX-Q or and differ DexCom's these Form results could from those on materially with the to results. as obligation and by Exchange no filings actual Form these Securities law, any Except to conform other presentation statements such Commission. update expressed this report annual The of that statements are after factors forward-looking required quarterly recent implied on report cause of any in by to forward-looking detailed XX-K, most

financial in cash-based with with financial we respect our GAAP accordance been have and noted, call, on not results considered for GAAP. not presented accordance that the to as measures this superior prepared during a non-GAAP references results or to will otherwise with information isolation to presentation discuss of Unless in all results. The certain substitute Additionally, prepared non-GAAP be additional in are basis. or metrics should a

and first for our their in these Please refer GAAP our measures release the earnings tables presentation earnings comparable directly slides measure. the accompanying financial most to a reconciliation to of quarter

will I Kevin. to over turn Now it

for reported quarter and Sean, value with growth Today, very and of for thank another quarter us. differentiated compared first XXXX. leading joining customers great organic recognize we first DexCom user and for quarter remains you, Demand Thank everyone, to continue product XX% CGM DexCom to the performance high as of you, our experience. revenue

since shift the year launch seen U.S., landscape While a in time. over have it a only of GX has we the significant been in the that

coverage have year. improved and attributed features. We to our new our of the innovative demand expansions primary from are thousands care people benefiting of momentum who performance be Much experienced from meaningfully product ecosystem, significant to prescribers of this and our growing within diabetes presence and attracted with last can tens over directly

sensor in With launch a of leadership our forward took extended use. significant step GX, accuracy in ease the and of we

drive and was a ecosystem, and our experience retention. customer to new We also which levels high improve introduced user software of designed engagement

the GX improvements continued software and have experience we hardware Importantly, platforms. ongoing enhance the both to to with

app. integrate performance since completed establishing have and of monthly introducing we fact, almost features, data new and insulin the into to ability launch updates the GX, In software recently upgrading most connectivity our

much examples software architecture enables great innovation. our how faster are These of new

data. they primary very customer Apple providing by working display receive lines, mobile as connecting excited even DexCom flexibility we where technology the experience how constantly in our a FDA for for allow GX to their were Along with clearance to Watch as quarter. in advance are We customers our in the space. phone, greater to their this leader through and first reinforce the will than the This glucose direct-to-watch those rather and approval use their interact feature

the devices gives GX built CGM to added a or that same of connect infrastructure industry X into and ability with time, phone, as a robust DexCom of connect watch. options. only connectivity can sensor a the can to first we FDA-cleared first these communicate CGM the To list the simultaneously our different to customers to a long watch. design this, This at system Bluetooth the to pump our receiver enable GX is is directly that customers from

to to since the strengthening We expand. add we access and software forward and and have the continue Features platform to sensor Ireland standing awareness like our markets launched extending shortly. our feedback in in look as innovator the additional direct-to-watch received to industry, as our great these U.K. it CGM global

a with hypoglycemia. covered This reminder, to using X-year all way served and also CMS expand the payers. since the decision the paved as for Landmark recently struggle using conversations mark the CGM coverage insulin decision non-insulin most As crossed for populations, to It for we individuals certain further coverage broaden position people U.S. greater the these strengthening with in our commercial our that

recognized appreciation to to outcomes better through drive titrate our now insulin, behavior change for long help is payers customer ability While DexCom's have and there ability a engagement. growing

within core integration in app therapies tool recognize with into point, much see like health logging alongside also therapies. and To with metabolic DexCom we cornerstone behavior those the launching There management of to now GLP-Xs. DexCom incorporating plans. many their the drive using started CGM coverage in a these earlier will customer physicians new CGM that awareness They to is GX a care as medication clinical Diabetes of growing lifestyle second drug quarter, broader these be a help a Care the activity and landscapes have as tool the CGM benefits available, and community module

this expand channel There diabetes. primary year, deepen prescriber opportunity. people we are scratching While as There of the surface has the this care for care remains significantly work with past the still over greater of for patients. their helped our we a even base are millions us in to drive this only of clear presence tens over us sizable physicians to XXX,XXX U.S. within opportunity treat who our

an expansion As roles. of the past were to the a for and blown of were interest these we We away result, attract sales force talent by able quarter. this quality that level our of announced we

By the hit the look year. seeing end momentum we to completed and the first This quarter, we trained of ground had and of is reps. already to new running, build the forward these them over course hiring excited our team the

initiative, across structure care endocrinologists to physicians most as be primary part are call we in quarter, to also steps with maternal-fetal the as our and our practitioners well points in sales of As of the team this second optimize leading beginning taking medicine. effective

X [indiscernible] significant our opportunities closely product, to Along structure this the need solution million hypoglycemia, or this tailored another on access risk team new U.S., first with expect for are those a as type on our milestone for and with capitalize XX clearance for a Stelo, product. the glucose upgraded prescription We significant who diabetes better use of we recognizing insulin in not us hit FDA's company's biosensor without a newest help we ahead. to approved in our simplify work the the history unmet the population severe FDA to people developed more this lines, significant at with of the in

both to directly needs information. interest important iCGM meet category, want of clear both our from prescription, blood sensor members new as to drive providing diabetes accuracy of the measure experience not remain burden the custom with to reliable, that taking and of a the broad this expect community GX will industry-leading directly our understand hardware FDA, establishing better critically of actionable our sugar. removing Stelo we from Stelo those the leverage and the ensure it accuracy community their software a that In to sensor clinical By in the a who dialogue receiving more insulin. are safety while customers became

and greater earnings on providing features, models. updates on Stelo or our launch be is onetime forward e-commerce and payers go-to-market further a including XX-day and available strategy Stelo summer initially share Stelo a process continue to ADA via purchases quarter fulfilled will and subscription pricing, to track detail we'll on cash ordering our on product. before We'll case immediately with look in build We pay website broader coverage. call. We're launch, our brand-new for second to this at

to several the warm-up of factor. the benefits the technological as February, our we also business, officially markets. European customer improved international GX factor, launched In some simplifies GX X for X the shorter entire smaller into into In prescribing moving step we X base, DexCom further advanced this accuracy process plus and form our quarter. in DexCom key first initiatives product time such line transition and This physicians. this our brings is form past strategic which

volume benefits to hardware greater lines shared cost allows our as it a to Moving scale. over platform to also structure more and our GX us time quickly reach drive

to our model transition commercial sales also We begin a quarter. us enabling the second of operations start completed the at to in direct Japan,

reminder, people which people. As all X using coverage insulin, over is only markets a world one with for of in the this million the represents

penetration share. stages and in to remains see market we drive this, Despite its DexCom's a early in CGM uptake greater significant opportunity

key pioneer again of CGM is we become launch will time market us. we our strengthen more Stelo to a with in There could an a with we us the coming subset and users. exciting as quarters. you a driver we lot this in are updates of industry Japan incredibly a time As presence forward the This growth journey. We as believe the to for once learn new thrilled this to sharing result, for over look be with begin

With the for review that, financials. first I to Jereme? a it quarter over will turn of Jereme

Thank you, Kevin.

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

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

the organic As revenue million definition months. addition the XX%. the impact trailing a $XXX our in excludes $XXX quarter foreign first to million quarter compared in totaled non-CGM for growth divested of of to U.S. of revenue in or the XXXX, exchange reminder, our representing XX revenue of acquired first

continued history. the we recent benefited as in reimbursed our this of in coverage expansion company's the quarter Our largest momentum again U.S. from

new significant U.S. of another This to demand quarter new contributed customer globally. quarter led start in record and our to the

international first benefiting quarter, this product International from quarter. executed across first portfolio XX% for and We our the targeted footprint market and momentum our well sales force very As the the totaling International to seeing in to revenue build million mentioned, expanded excited team months up ramp we in new XX%, our forward the look $XXX on Kevin are expansion grew this share took was revenue quarter. and with organic growth ahead. strategy. again access

in offset We delivered quarter the which in markets, finalized its growth pause to sales. from a particularly more strong we than core our direct transition as European Japan

gross quarter become a result part XX.X% in million This quarter with revenue first as to our profit continues gross mix. compared line in of or to revenue of XX.X% of Our was GX expectations margin the product our XXXX. $XXX first larger of was

margin As a a carries GX GX lower than reminder, today.

So in this lines GX change and quarters we more in our as coming the we expect Malaysia. to the drive U.S. volume through

continued and GX compared were X the pump $XXX.X our to of million to Operating to of QX moving factor. the Between demand, million continue GX we of in XXXX. our expenses platform, integrations QX GX XXXX base form see for $XXX.X moving to more DexCom

significant demonstration another grow. was generate as operating This of our leverage ability to quarter we

operating our compared in to the first than In grew fact, more rate quarter, of basis in more first points of than expenses we quarter at OpEx double the resulting the revenue XXXX. leverage of XXX

the of or revenue revenue of Adjusted of $XX.X XX.X% compared in $XXX.X revenue a doubling $XXX.X free was cash for Net first share. compared the for XX.X% million quarter and was nearly approximately to in position, the our first or the quarter million of EBITDA or of on quarter million $XXX.X the Operating with great million per closing cash remain first We XXXX. revenue flow of and $X.XX to income in back of $XXX.X $X.X same cash for of XX.X% the the XXXX quarter was or million XXXX. equivalents income quarter XX% financial of or year-over-year. billion first quarter

the the positioned build-out facility. with well we are to further our diversifying opportunities uses capital. we and us any footprint this our in to our remain organic assess This a Ireland of This Malaysia support highly launch perspective, From growth near-term growth provides position with quickly our great both of significant a opportunities, strategic flexibility of capacity us anticipated Stelo scaling leaves summer. including support and

guidance. to Turning

the representing are to We growth midpoint of of an year. billion, XX% for raising $X.XX our to organic with updated of the XX% range billion revenue guidance $X.XX

full XX%, we margin margin non-GAAP of reaffirming our margin approximately are XX% prior a margins, gross For in non-GAAP adjusted to of EBITDA guidance operating XX%. approximately year and XX% of range profit of

can With that, open the call up for we Q&A. Sean?

you, Thank Jeremy.

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

[Operator with Instructions] UBS. Danielle question from Antalffy And we will first take our

aligning strong a the so on was us Can OTC you of you're your label saw the new to how help quarter. it? sales over-the-counter Congrats to start addressable year. understand Kevin, market? the first capitalize the expands that team happen most one you the clearance things obviously in on exciting how Stelo the we And think

ever has every care imagine, as been have more and had really spent to best suffer thinking from don't get buzz quickly as insulin or it's way to And We're It's this. accessible the them. it is who to product that studied question. through media not the type helpful impressions there's as outside because our us we for We it wanted for they as Danielle, about and a from to as very done. exciting excited process the XX for people than middle health have you for about on . The to severe eliminate call hypoglycemia. We thank that also prescription anything and that's have can pharmacy the and The inquiries make Stelo with time very we've And it. prescriptions -- been X We you Well, bit diabetes of spectacular. the do lot we this, are been out providers who way expands million access it. well. thought that to do for them don't the not in of and physicians.

that's we're lot this over in to with went obtain. it. getting we everybody remarks, easy for and over open sensor counter same the to key with to floodgates and said as particularly thrilled controls that why the labeling people still very the my by time, didn't we this come to to iCGM in just going So And the this the a the have is around fact counter, I of make the At we in.

to You go do still like have good to incredibly something have product an this.

very advantage very, there. a have we think we So good

a we expansion sales in of With respect to know of positioning fact for force. a couple We the arena extremely our expansion, when we the made I on have comments that and about well. doctors, when sales do we coverage the physician call

they more repositioned we And repositioning primary care and also group endocrinology, our the -- I well. have so as lot relates medicine care, who much talk patients endocrinology care where We've will and between markets our don't aren't X with maternal whereby fetal insulin. the And doctors prescribers, and we sales on force, type a who the so high who primary our specialists of lot. the in as not to repositioned the with those spend expansion a time talked of with about offices of adds, Stelo prescribe all almost primary new see to a lot who about

believe So this by able with more physicians way, expanding as have be we'll to well. coverage we

that And go you But other so driven way direct-to-consumer will on. same the with the you too. that well. bit type add be see and this also that, message might to in have X they the take doctors out talk a all products message to a will as Jereme,

Yes.

Stelo part and the force certainly the asked question the And of as pointed about Kevin big TAM. expanding force. a the to You sales sales

reasons as a there's expand massive to one Kevin there. said, of is opportunity so the exactly, And

in product. categories. a our massive opportunity well expand wonderful a GX coverage continuing is product. a also markets. those is GX existing wonderful there's to There's However, as in

more And allows in so force cover category. also sales the expanding us that to

code a that this category new well. had of We incredibly quarter continues do And to record patient quarter.

of growth expansion both of that that on force. see so can And expect sales really ends a result to as of you the

from take JPMorgan. with will Marcus next we our question And Robbie

pretty wanted It operating on to It by the quarter. bps we Congrats like a XXX down will margin. P&L. was nice saw I leverage impressive. the on about talk be

to So year, think moving but the to gross think progression of Stelo margin how see we margin and I especially just that cadence, upside of quarter the through just trying year? should and throughout the about we the in guidance, saw think the launch wanted operating in reiterated about progression, about the drivers key light that should how

this set look question. we year, the -- the Robbie. typical to generally this that's way of XXX basis about to the see course is think of in talked a what course Thanks gross little more see And year. Sure, of expect the that guidance over when for we I'd year. Yes. was course And bit margin over The over points and a XXX that expansion the the you a year. of year, more like to typical of course to going

typical lot right from A GX. thinking how That's back to years with GX it, year It's to go a prior now. least cadence. of the not coming that of over year year. kind a had about facility you of the the course as transition sort But manufacturing into we're you new that, online. We at last see happened

an in the gives margin context an perspective, that that already OpEx perspective for spend from cadence some the you at sales made so And op we've least or force. investment

quarter. playing quarter. some nice in first your see you to And first saw you that the in leverage so And the through point,

of investments launch Japan there. making course quarter, with and year. of will play we'll the the And in will course that here associated over then live the further second be in the obviously, Stelo out making the the summer, over of investments, be investments go We as we

saw the in the we quarter same So won't ultimately of the balance first you the over while leverage year. get that

the expect and down margin that's of click should some year, You guide, as about of that margin prior back leverage a op despite year. ultimately you'd of what an contributes see gross over the a bit to course from expansion the a

So that's think it. way about to the

the alluding the the performance of I you're over of margin. to beat in op terms think In terms QX, in

is I is we few this We've This sign think exception. demonstrated can past the leverage drive us. over an years, takeaway year business. it's no into encouraging for the here

continue. efforts the we've prior talking of about in years All that been

a keep And However, it's as how about the a first first progresses. progress little updated on you quarter, quarter. year we'll the the mentioned, early year and change thinking to start we're you to as full nice

We from will with take Wells our next Biegelsen Fargo. question Larry

about Kevin, I'd ask to love Stelo.

So the I patients, Why X heard about e-commerce opposed utilization as beyond as but maybe opportunity to your how see you Maybe you down playing type type X retail. comments only e-commerce know the an road? oral health-conscious website. see about out. patients And I the is for talk people an and prediabetes indication oral do pharmacies website and such

we've very, back labeled I'll definitely people will, in because with as be But products had where it markets. platform and X strong start migrating more unmet . We model, believe will in experience With and very is diabetes. and with DexCom end gate just markets believe out. the We don't of well. this type designed to that there's on the website. out here and very in not in wanted respect those do necessarily think distribution launching other for fact, labeled is time, Over the on for just have international we with gone insulin. to of software, success started the first. need use diabetes with diabetes and direct some interested and direct see to it. people those we've website this the a solution, marketplace product the great focus we've We a get can rolled who people purchase towards X reason with the tailored we this not a product to people go That features we to need. it our have the will It's focus

do know this. So we to how do

patterns. goes, what's we all, do the want We way launch we how a launch the We control I want little my to you start. when of will Second to comments, in said as program. we want We this this of understand to And felt going see bit we and track on. efficient utilization want most back this initially, was to it. go to when

gets people. efficient it's this more as to product think distribution we'll to get if I bigger, other more seek channels,

We and setting positioned, will work a then done distribution up are we've efficient. very of this the well and lot process website extremely be

concerned we've a that that set product not right about to up. the we're good it people now, really we're want So position through to this get website overrun the being in

on Yes. everything. question of a And then bit your utilization, Larry. be to going It's to little

some users think going it full time. do that be I use there's to

use research. will folks some on based think That's market I it intermittently. our

while and modeling, most Our use study product, high we market part, has, study. to studies once post said, And think so. doing are research utilization there as indicated, about folks a continue is being in sure they to we've all a think I utilization either on we're basically the in this That prudent it. we make where want for high run request to want was

have that of utilization ultimately so we'll And a out there. we variety put patterns

population get, So of a little bag I think of you'll everything. That is a I think, so big, everything. expect grab bit

folks to want to surprised positive these how often are on things. always wear the we Fortunately,

question our Joanne next from take will Citibank. We Wuensch with

XX-day Congrats steps that frame? or a are the With the to time market, GX bringing economics to sensor on are out GX platform? what the of Stelo moving quarter. the a XX-day onto the in what And

Yes.

there on any First not that. XX of can GX. spend going day. all, be I you money GX assure any to won't We're more of

environment. we're the and XX so launching current days to learn of our platform this GX type with performance reasons is its in One of

at a of more felt days have and make comfortable those, XX We delivered we wanted expectations we start. performance to earlier, of reliability customers. sure level and to talked our we've As we

at DexCom XX our R&D have some days numerous and time. including platform move efforts product the in in plus clinical to X efforts for markets all international to point GX We in the

not what for and anticipated certainly we've done that. anticipated guidance that's XXXX, our after long but in not it's said we've As

time. you'll The about over see simple. are that more hear quite economics So and

XX-day X. You're selling rather X sensors over a than period

a pickup on that as So shipping work, your doesn't we significant other in sensor because the we you're lost can all the box, you've FedEx margin proper a have reliability anyway. see one long of if replace economies side as a scale

only making XX days, not it at we're reliable. looking So

maximum very hard we offering at looking individuals the most customer go for days. efficient We're experience when XX to

So they're ready.

always the And delivers that we've because our the CSAT we as of -- things we of scores we give people and customers, always this much so that our one support that one value what delivered survey our and hear about how is them. experience

combination of we're it's things. road So product. to XX-day well those having scientifically, a But all down the a

We question with from Jeff Baird. will Johnson next take our

ask wanted So to Basel. on

how basal can And are you Just Obviously, sequentially new been here nicely still start quarter assume, contributing last there? obviously, scaling. record the also, debate, you sequential patterns few a assume but within been would some there's visibility population the can color that. it any to in Basals rate, on the this provide any growing I I'd quarter. market healthy what the Is give But at on that's pretty quarters? a share U.S.

insight Just would front as provide you on love kind that can of well. any

Yes.

I Jeff. Thanks, that Sorry, one. take

U.S. of talked about we this over year in and moving year we adoption year, XX% to we talked And the in the expected we right the year entire when XX%. of the population. the that think talked context really I adoption across course basal about the basal the exiting the around about across population what it

penetration. of X points So about

a Record the that. through performance that to that coming see So quarter, helps we things growing we first our and chunk think, new correct, basal far enforce patients, I well are new good are expected. category. And are channel, you continue in patients really as through of

the So the talked those we things about, still remain. in channel, that qualitatively, excitement

think internally share data we we're you debate of at The terms guys look we In I share of get -- taking see look data, on based script lot to that us. And data. and we debate see taking at know there's we that pathology. category, We and script how data. a that no

come scripts what data out see for there, continuing you worth, it's our So the that to can way. is

the For head-to-head, we when we the when coverage we and for talked typically compete about, purpose won. have we've

with it maybe some data at this where the over look think think is I continue you hope When script will clear. I out we disagree is data, that comments going I So helps. But think the there. time. to demonstrate I

from And next Bedford Jayson Raymond James. we will question with take our

it Stelo. summer on out are force I'm but setup. approve just training, to e-commerce but of the and app you're the to the not of launching else Kevin, until does What just anything mentioned don't the you Just And to prep quickly, the sales then getting need launch? certainly outside impatient, FDA it maybe doing for mean launch? the thinking else? you you before an or like be

plan very impatient we quickly. was anticipating to full to [indiscernible] FDA had very going for we for put FDA this we tend have have. become we time, No, ourselves and a been get it We approval we rapid by as approval, launch quickly -- a an that going launch and time actually very . the It we launch going time launch. approval has to have. come, from And plan we're product our to stick to experience over out we've at DexCom. as when When

schedule. We have manufacturing

set have We lines up.

We have both.

have We no the timing plan our stick that rush we is everything, need go, to going believe to packaging, everything we're We and good, we to have. need but anything. that ready to there's

so with And comfortable have, sticking we're we what it. we're and to

with Margaret William take from Andrew our will next Blair. We question

commentary said you Kevin, care. to I in wanted earlier think hit their seeing in something, growing your in I that coverage plans you're had for earlier patients

are nondiabetics, referencing obviously, that. know diabetics, which it thinks -- about basal, then to heard So maybe not have insulin you're free as obviously about, that I just we've and website traditional if just right why to less the Stelo, wanted any [indiscernible] of things And is buy proactively to [indiscernible]. your people it now the relates reached [indiscernible]. product number But on of out then sense that

I inquiries. anybody offering it And in certainly as haven't to again, And a lot we but sale, field news. things out I to doctor going far we been that offices, our go care the articles, they Stelo reached our to of has time walk see into for buy the Stelo. the it the spent have solicit biggest question interviews with we've as team just and like That's primary haven't because reps our had members. as impressions, door, when offered in you media minute am walk several bunch we Well, as a that of of

it was does when me was said, interesting, Stelo practice. in my of how up And to ATTD, at I affect many and came me physicians the

So there on interest and of that. is lot a lot a is there of buzz

this software your needs earlier it you As can in insulin, far just seeing looking experience a like we CGM goes affecting sensor as as and know to we're certainly on We're and titrate treatment, you learn body to is insulin, that to basal enhancements can with way be, how [indiscernible] seeing we're as at and well so basal. use somebody basal product that basal that using the so your offerings insulin better. make

DexCom And morning was with it. X-year-old were They manage They kids diagnosed But with to Type can Margaret, they even left no hospital again, hospital the X go because the get in someone the the this population, there's this at diagnosed. wearing disease they leave even, talked the and hospital. now see without I you told their way DexCom.

very, that quickly. very into definitely an have and play product comes become we a So offering

used also we as the Position it people some particularly to X who coverage tool manage to and those think there's CGM conditions. a becoming over patient, Across is insulin. aids will type earlier using diabetes, not board, treatment these is use they this see, again. them over in and I teaching their the of with help if

we we this of a our cash when Series. we And Yes. reasons about -- this, a on one why we little the is G talked Margaret, option last year, introduced bit think pay is

interest. of the more so to, your Kevin There's One doing reasons diabetes. managing as spectrum in of really the across alluded been is,

the not of has interest there. do everybody and our there uptake And pay so the some of that plans a not those but the with certainly that materiality pockets do have cash option and base, -- majority customer is have been uptake certainly our there, cover diabetes

continue Stelo. there's much why you interest Kevin's in bullish product. that why point, that place. so It's inbound to we're so see to on Back And taking so

so gives of context. that to and So this a rightfully people. it There's help hopefully, lot some groundswell attention a you can of

take will Jefferies. next question with from We Taylor Matt our

a got wanted payers you that with talking to ask broaden and coverage also try were the with obviously, moving benefit and you've how paradigms patients. earlier combined these of to plans you And to on. having I conversations Stelo may in kind question coming treatment when about about

really, G paradigm think is And the you signs take seeing treatment coverage question the this Series some than any it basically earlier [indiscernible]. the long for in you from actually you the could get format of basal. do that will coverage year, and/or in are payers Stelo get So to other how for kind

Yes.

early to ultimately preventative these that value the on that it's do talked all So a tool really question. there plans, fair before. plans results There plans the seen a CGM majority out at same about not we've change, of some have a are but a cover of actually the as folks you And and system. to back something it's economics yields lifestyle Diabetes

some that. plans not so Again, majority. it's have And the done

earlier. question, there. plan get majority broad wins at we you and year. plan, though, expect don't expand of But your here the terms national that significantly to In coverage do point. Certainly aren't I by formularies of this introduce how that think those or the this we more

place. to take think And continue so I to the has work

to think, we the demonstrating why partner clinical addition out our real-world health be there in we trials that's end did consistently I costs day. reduce that that that's the data, think I having one off want because all underway of underway, get work that payers organizations will are with going why and Stelo employers, then improve is of the and is to clinical data reasons helpful come really the the to tool to a at along good the do and ultimately to this

in XXXX. it expect So I don't

to keep progress. progress for the incentivized to time line, Nevertheless, X-year to our highly asked on work it do we'll you continue been go as window, so. quickly. Kevin you we it's We're and on us the we posted has to very make think X- something clear takes If

Matthew with next take will our from Blackman We Stifel. question

to me Maybe, Jereme, know here, for this question but give a going ask not anyway. I but you're you. precision I'll

Is roughest tipping terms where guess that mix the we integration out that guide? is in what's in are you part accretion I key the mix. of important the something Or we further hit happens base? of the of that Just Is the sense to the question of is get and margin year component a on of And even full installed GX, the ramp? GX more gross for point year? something in terms is AID that improvement quarter-over-quarter that this to potential

Yes.

course my going it's our how the are overall again, quarters the as move The out of expect So a point And -- But over I here's a here in that it's to ahead tracking, will on way coming over things of we depend of and year. to where percentage GX. the eventually play sales GX tracking expectations. XXXX. we're

it started is the it's someone the obviously the So having integration very point, And for and your back last moving was half to base. at that AIB -- year helpful started really moving. of to

So that of some half is year. it and the of the reason for back in is the the happening, leverage

primary start where product, to As the in, the start scale kick economies GX the to see starts below that's come you be and to GX. cost of

on a will over. was at that I very in depend happen and so very we And well going as velocity move. could velocity strong to this what move you, tell which could happen it at It's year the QX we movement.

are it in scripts, new you patients terms the of see guys moving and majority coming a to GX. can I of In patients already think in, new

it's when. the if, it's a of So news, great not matter

And that it's really converting so base. on

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we're those opportunities up and both I Insulet It's already about of Tandem coming Excited converting here about base. pretty know talking started that base. with our soon.

from And next we Singh question Shagun will our with take RBC.

line at strong roughly expectations. in with So U.S. XX% growth pretty but it year-over-year, was was

your so And cash were And assume pay pricing. I you to has sequentially? in can for And if on it on elaborate guys. I'm pricing, similar What more then to year-over-year know fair wondering indicated. is Stelo trends that's line big been with you competitor what a and

said I'll other. with, Jereme is pricing, can the pricing We a We've got and competitive that Stelo we'll competitive. start on on then we're more number very at going hear information into and call more considering. jump Stelo next bring we'd models when be to that's But Stelo. we other launch of when offerings cash ADA you be of you'll it. the with

QX do typical Yes. pricing pricing we that And continued pricing the to question in of don't lot we medical headwind then that contracts, your dynamics have to We dynamics, are stable. terms headwinds, those do on play when year-over-year and that's changing of have a have general, the device out. contracts in are

is of see the benefits through the lot stable. new is coming as start pharmacy year and patients channel. our we into you do see So The you do of reset thing that the a one get

seeing But we more We find business is a heavier call supported and Again, DME patients the our seen, a the strong and certainly, still to business, where bit there very, new channel patients. we pretty tilt stable. more on DME be have is partners for base by the continues primary as what care very very a is physicians well. basal towards are who pharmacy of are

pretty through the is you I call that our as don't not new, new as new of are more but price. dynamics. to about It's of it from. just helpful patients -- think move you you is bit we a to what it's we year-over-year. to year. consistent running where that get find understand a predominance something anything mix, So little continue the don't It's but do mindful coming do channel given those be into

take will Matthew our from Sandler. question O'Brien with next Piper We

feel down in aftermarket, the little a so a Jereme, of I cold, X%. look like it's you better. it stock sounds about at the bit have you When hope

And easiest little bit your top just had up stack on off year then the quarter when just do in of put acceleration comps. AX. just I know the is to a of -- or still tailwind. Even You it's tougher a Japan rest basis, the nice course throughout a more the going it the of of you year a the you of pretty than year, year of assumes be sorry.

kick those broader a got guys sales to but time now, You've take force in.

kick really Stelo QX. to in going more is probably like QX, not until

So just hit remainder guidance midpoint for range just dynamics? of to the year, some able why the given the confidence of in of kind the being of the these

I you to provide thanks guess trying the my Yes, I work. sure. with Matt, I'm impress and for cold. on to happy that, wishes the was that voice, didn't deep

the the how on terms of In year. confidence

things expansion. outside to that, adoption and going and that, things mindful have of we base, basal of set has U.S. we try what mix while pricing adoption case was base channel risking into the about to the like basal And do Japan a the talking of go you around base And like would launch, we we as case. coverage in internationally terms One to quarter, competitors, said a things in the things be like

set case. the All confident ranges some those more of feel get cases. those about go base for down, as of raising we And into you as knocked much base

And ultimately We more a base so feel why floor. case that's we confident did in the the reason as it.

there. we felt so And certainly good

for we X months. I launch really coverage talked in We are haven't things is of we've plus we in basal final to about the France, with excited about expect paperwork what is one the think DexCom yet, it our coming submitted but

And coming. talked so It we about we something it. thought was was

did of steps. that we it things knew appropriate one make was to sure was those coming, the but needed it We we

it. so wonderful basal And In to say that's the that's we Germany, wonderful would derisk us. start wonderful a we thing. start for have small agreed as coverage But one there, population that's to it, for

the are coverage And terms we right It's In for basal do us. albeit in is pocket that a basal now coverage. wonderful in a saying, progression leader Germany, of there terms well, Germany payers have of of now. small in

give in case. when base you gives that's we case. it's in up. that confidence And that us comfortable base the year more And that help in base and certainly, that that so guys that it we are feel moving these the a why confidence that things little case, confidence have derisk bit out hopefully come that

And we will Thibault take BTIG. Marie our next question with from

really I favorable wanted using people insulin. coverage broad Japan. question a sounds have you for like here It on ask all to certainly with

into that with to I to was those? barriers? What distributor been do have where the you attack to hurdles? market to are your the what So going understand And penetration what try want really have and partner been

did which big very the with Japan our in next not why us ways. partner for a fast in a acquire and already small. have out, and our coverage separate penetration because place. can did geographies grow like spite We've over existing the and partner a market of market we years. has we many been the those to like distributor and was has geographies infrastructure gone in very Our where we several gone out have we years our in of is an just experience come we In distributor quickly, had ago we've gate us we very in get this infrastructure great Australia, direct Germany, that

doing example, the to of and from from us we like a scratch, Japan, France, we're our growth how that respect it's other France starting build some in scratch in similar Japan. on own. in we're we're With geographies, to that dynamic like It engine take to while starting for will build

there. wasn't is drive back we our their own And fairness, distributor important all for have that is I think didn't and well commitment in business their there else what infrastructure more minds. that held than in most enough anything did and us just

to There Japan do, it's things a a a leadership physician can will market confident. going We're but It's We've team very overnight. happen but we've commitment that do drive be got, hired to build forward, those and hospital We a think it build while the and relationships very need while. certainly, little team to not to the going can a a from driven and that necessary. what is perspective, that by they can develop decisions. take relationships going that take much it.

for talking I market I'm -- to there. be be every but from you very as you successful have very As we'll expectation a that's us, we're large to now, to years talking going

And with we Canaccord Bill from will take next Genuity. Plovanic question our

in into What Just do from the IIT seen wondering the how reorder we if on could I you attrition using. patients get was then as you the think with this And have the transition of in different about just rates. rates, we comment and to patient non basal GX hypo GX. out eventually populations than

ourselves we've question a bit. quite asked it's Yes, a

think I'm across terms thoughts And we've Obviously, experience, products. seen consistent of in we that's So change it. GX, much as those experiences GX as on a a from so retention folks we GX wonderful, that of we the happy pride give other. the you GX X the to ourselves There on offer. to our been we From to relatively one utilization but rate. and is hasn't upgrade experience the is expected

been relatively So that's consistent.

isn't to that else What on today. into and that And follow populations, much say populations seems AID those find moving retention really markedly there is I we are also utilization pretty it's pattern a of to to think to that important we've it's category moving of because those a difference is and and across date we've retention on across more the we where and basal. different, start date, systems. similar there's into found utilization. are We new Everybody to date, only in as I products our one -- folks served our really

it are part smaller still We our albeit base. moving of more a user non-insulin-using into population,

as but it, you seen Kevin? the aware has use hypothesis guys but the being through surprised, positively around get And the To opportunity down that folks of bit we move date, less. expect keep help said, we're kind to those potential we'll there utilization been in is for We've always it, maybe spaces. been That to are we a a seeing. posted always we're you what you high curve, acuity moving we as it arms haven't little your

could as Yes. we there cases add, nonintensive a of outcomes into number think be use And head be there And people. I here. would could for number we therapy, insulin a of

find tools maintain then model people understand often how how subscription is start to understand what to versus out of reasons didn't. distribution to they purchases. the back the they begin use to to with our to what onetime like our and is what and they like, prefer experience and One patterns come do own what website the individual those patterns, And our on the purchasing many

past. world to the the our we utilization attrition, DME this I the barrier coverage, flip been other our patients fine have lose the of thing quarter why patterns in co-pays to a one used been them. our bit. first as very at that's dynamic. pharmacy and was distributors because The everybody point is to retention in reason not we would particularly attention of was that have add respect and customer has strong now very And of biggest The very successful a working DME with that in We've day, barriers, strong eliminated pay in be in that time. retention It a as to the back side the when big rates

a I but we're Bill, spot. everything, of good mix a it's think So in

to users. product in to nonintensive figure our will with world maximize insulin how offerings and those learn build the therapy We out experience

Wolfe And next Michael our Polark question take we Research. will from with

your I talent to heard expected. comments, sales about a I and hitting quite Street force also didn't Those the that. in XQ. and are what it's why on you're upgraded got impactful. follow about I doing folks higher Kevin. structure, faster heard wanted and than team of quality ask expansion one new I there it

it. could So unpack me, that update I'd for if appreciate you

Yes.

As enough happen. realized on people more couple Number prescribers. bunch prescribers our our we attention to and accomplish we paying we -- we are high field, going calling prescribers there of on a may things to high reps of out doing of emphasis not new number prescribers that need are are a as weren't also be calling and a we one, look finding who had needed where over who what the in we

And as have spend things up, high-prescribing more we've primary we so and in endocrinology set the diabetologists world time of set do with than a folks who care.

care we have call on more to again At call what time, learned the that needed on over people physicians. over we Consistently, we we win. and same primary people,

we We've relationships. so get the need out our individuals. several And been past more months. folks more to doors to to more much We with samples We people have aggressive on on knock there. need more sampling to and program over more call need more get

of element is that third A education.

As X don't even not offices rep. [indiscernible] as CGM sell into of train certainly who a may who's or some patients use account investment to little only we've doctors, a people scripts, training in we have regional the if managers where written are get somebody always get more we to as the are X then had these We they have And some office. see particularly more get care there made there. many who last, we to primary world and help we

have we of more sales on internal that force, more again, a an And to so do do of basis work. and regional

the all with at So and endocrinology primary the training we're supporting and our including broader world in of deeper broader to prescribers and same trying patients. high time, go care, across deeper then aspects

Oppenheimer. take our next from question We with Steve will Lichtman

the in does would overall where great. provide force Are you've non-insulin efforts? Any basal. moves as you're on of of the estimated could organization, at sales coverage helping updates now [indiscernible] to, before making that Kevin, size tapping sort and you and alluded about group, commercial the about have just I the ask which you're with you opportunity be obviously those this risk education sort same expansion I wanted think to is

for thanks And the Yes. question.

basal but a time. are You're right. say, quantity, is a one to it for event, a the focus big known those us, with but is the bit folks. It's severe hypoglycemia more educate harder Obviously, I or little taken unawareness should opportunity hypoglycemia that the on has

is we've educational done there. team And to sales and accordingly things materials creating get focused the point, then that and arming have Terri out of and the force her the to really your really on so One

folks where us points, are But our expansion care seen allow spectrum. and biggest and touch you a gamut to reaching have there a where seeing, force touch get right? more And the That really lot continue that out situation I when to good more. education. mind individuals of challenge the we these that's are the points, educate so does expanding across And if of top some broader to sales the and They're the on at of thing we're Again, just for is and takes to event team do work It doesn't is working have come more and place, to a qualify. hard going education. prescribers that. this health

our with from We will Jennings next Cowen. take TD question Josh

if to of on be iterations is important the lasting I be days? Stelo Kevin, to going first the an you the of can in you that most mentioned rate the the XX XX iterations of that those have other of there's over one months you'll and any side? success to Stelo. And of course the see wanted iterations to full the going numerous provide expansion software how launch. sensors of on the color And are just increase is Or

work very, that GX on we have on and on Stelo very board. across a Well, the platform. we strong the program always sensor performance optimization, And

do GX GX I go month software I into every back GX. new had we since can to anything make, With Stelo. can several and iteration I about launched think changes we apply what to a We to respect certainly we that brought with GX. we said features So literally

over road we we next to start. similar add have that a people once as would what we perspective, launch a from a a it and on we ramp map expect particularly Stelo of months engages as XX we the with it, number software learn We features

We're But else remain a have give we're road we're to add going very just the going going at competitive we'll vague and to map. launch not and we've been vague that those for everybody about features to reasons.

next take will with Barclays. Matt our we Miksic And question from

for maintaining of the you the to wanted maybe just made go approval back of on also I the and Kevin, call launch. in line the time to comments Stelo some the earlier kind

mean development diabetes prioritizing and post could between those community, to to this how capacity understand said you're opportunities about just could development, going there you market excitement It thinking product of talk sure outside and just would manufacturing the supply given the our X what about forward? things of business and like you launch the sort resources approval. want I to like is be great -- want also make don't rush If

that. timing our to again, going appreciate again, Well, I And we're to here. stick launch

have great We made investments.

plan. We we are our ready to on to We're when our to launch go. on launch We're we're ready And schedule. it. ready

approval up to fairness, every stick with the launch be it. go ready where be got be think we great I've team, frame. time the get launches reasons to many too job and all the when very we to we a up to this here. is product supposed so for wonderful FDA quickly. lined able In way tremendous that And Our to rapid. gave it's through everything one And we're go was time that. lived successful . But going office do? will with to to I because we They is great X are I our proper of will devoting we did what days my We [indiscernible] are and I'm And timing going dealing a We with early, end you in inventory everybody submission. [indiscernible]. resources. saying credit doing credit for working have the

this We have factory just GX well. in several That came summer. We Malaysia. as here manufacture in GX manufacturing lines up Arizona

we We'll capacity, with lines we time. comfortable and and it's So But to to We're we'll got running plan. of those it. lines stick there. we're ready GX be have go Stelo plenty very go we've our going when to dedicated to be and will

in of resource on terms Yes. allocation. as something in making and that's go what then supply. a of unmet we the right? And quite then a the of we're serving do resources, referred the go, decision think is which returns it. where about the what But are and do to the after combination we the company resources interest do frankly, And the need. to from There's really, Kevin We allocation, to marketing support, obviously that absolutely capacity and have sales best resource

So expect at that accordingly. us to continue to look

I we've go the reinvest allows doing think it of you the can it us and One as see drive made are and we year, is this we efficiencies, things in through to a priority the business. organization

efficiencies our those business, and all includes work And we've allowed the to working of we're been which to all launch get has doing able around us plans. through all Stelo, leverage in the do

to efficiently continue and appropriately. to robust we'll work important the important. So around also that do continue It's to scale scale, so but resource allocation, to really to do we for in really us order do

our Mike from will Kratky And Partners. we take question final Leerink with

possibility historically [indiscernible] for you of of are GX value your seeing part competitors has to which proposition one integration, the additional about for payers. your as How thinking pricing been of pressure start

can on directly U.S. of use Apple or pricing it. AID to in Europe, is devices can our features We're same go of They point with those a going make at DexCom lower sensors connect much offering the now to X-tiered system. Well, years. very of We consistent at They GX that to product for the set countries. systems. able again, AD anything . With have pump. to follow price number you there's time. if IV pricing tender U.S., many in several phone, to the our at the address in a what that's system be and comfortable AID X that's it's set the people look position the in the connect whether That's the have basis pricing, to you be our a product very been process. we have can connect comfortable offer to regardless we're over prices share DexCom X we offer system They world offerings also offer, without set on connect a countries, Watch. there. contracts those to to out When geographical patients the with in aren't contracts. time. our who superior we the pricing Certainly, very tender compare in a over our course we who And else And our that our to if are pricing here up in they

we're very as So in comfortable where those with well. are we

Sayer And this Mr. questions closing at call are will further for the there I turn remarks. now Kevin time. to no back

years Thanks, for competitors drive between everybody, was widen today. our our we to our first innovations continuing the addition launched has we particularly by continue the GX our experience really DexCom, a participating call ever industry. in driving it's since in We're great on most now been CGM and experience, many most the important in This GX DexCom for Direct gap watch our ago to quarter here. and more to user to and requested the platform.

able Our users I on will articulated, well. incredibly just system an shared Apple to, with to as that and going as experience discrete Watch all are have be follow of include only, CGM our an

imagine, to So to parent again, able to their were watch, global continues everything a expand. basis very our to they on do We're who they a portfolio so phone, these do be used opportunities. to to send phone. CGM to school on Access without wants a kid with their able positioned win to product on a well

filing December Stelo just in to bit went States. United about We the during I'll launch to the and from Stelo. first March many CGM over-the-counter a with This XXXX, many, years lives a very forward. platform so the we positioned the enhance in a talk will this much FDA last, 'XX is learn for be approval on greatly product we'll people, going it about of in in well going And

scale commitment strong appreciate the pursue Thanks, everybody, call creating and to opportunities. very get support we our on a needs the have we your and today. to time, let's all and drive this business the theme in top investing we And worldwide this At continue continued our we outstanding call, not the margin line skinned at future in operating same on have R&D, to of it deliver products growth, all not necessary forget expansion. strong to of where

Ladies we your for thank and gentlemen, participation. this and concludes today's you call,

disconnect. You may now