The Dexcom logo is seen on a smartphone screen and in the background.
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Actions of Dexcom fell more than 35% in extended trading Thursday after the diabetes management company reported disappointing second-quarter revenue and offered weak guidance.
Here's how the company did it:
- Earnings per share: 43 cents adjusted versus 39 cents expected by LSEG
- Revenue: $1 billion versus LSEG's $1.04 billion forecast
Dexcom's revenue rose 15% from $871.3 million a year earlier, according to a statement. The company reported net income of $143.5 million, up from $115.9 million in the same period last year.
For the third quarter, Dexcom expects to report revenue of $975 million to $1 billion to account for “certain one-time items impacting seasonality in 2024,” according to the statement. Dexcom updated its full-year fiscal year guidance to reflect expected revenue of $4.00 billion to $4.05 billion, down from the $4.20 billion to $4.35 billion it forecast last quarter.
“While Dexcom made progress on several key strategic initiatives in the second quarter, our execution did not meet our high standards,” Dexcom CEO Kevin Sayer said in the statement. “We have a unique opportunity to serve millions more customers around the world with our differentiated product portfolio and are taking steps to improve our execution and better position ourselves for continued long-term growth.”
Dexcom offers a suite of tools such as continuous glucose monitors for patients who have been diagnosed with diabetes. In March, the company announced its new The U.S. Food and Drug Administration (FDA) has approved the use of an over-the-counter continuous glucose monitor (CGM) called Stelo. Stelo is designed for patients with type 2 diabetes who do not use insulin and Dexcom said Thursday that it will be officially launched in August.
