Stock Analysis on Net
Stock Analysis on Net

DexCom Inc. (NASDAQ:DXCM)

This company has been moved to the archive! The financial data has not been updated since October 26, 2023.

Common-Size Income Statement
Quarterly Data

DexCom Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Revenue 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of sales -36.07 -37.29 -37.61 -33.60 -35.78 -35.44 -36.69 -32.31 -31.27 -29.91 -31.90 -29.85 -32.04 -37.12 -36.68 -33.17 -37.70 -38.61 -39.82 -34.08 -36.78 -36.66 -35.52
Gross profit 63.93% 62.71% 62.39% 66.40% 64.22% 64.56% 63.31% 67.69% 68.73% 70.09% 68.10% 70.15% 67.96% 62.88% 63.32% 66.83% 62.30% 61.39% 60.18% 65.92% 63.22% 63.34% 64.48%
Research and development -13.48 -13.69 -16.05 -14.27 -14.33 -17.48 -21.61 -21.46 -19.81 -21.69 -21.66 -20.95 -17.51 -17.68 -18.04 -17.03 -16.83 -20.51 -21.03 -17.04 -18.79 -19.46 -24.30
Collaborative research and development fee 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -12.47 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -64.41 0.00 0.00 0.00
Amortization of intangible assets -0.17 -0.20 -0.24 -0.22 -0.23 -0.27 -0.32 -0.27 -0.20 -0.08 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Selling, general and administrative -29.20 -34.12 -39.73 -36.53 -30.48 -35.75 -34.81 -33.40 -30.53 -31.34 -37.35 -30.92 -31.66 -30.19 -36.98 -27.87 -31.34 -41.11 -44.28 -33.17 -39.22 -45.90 -56.83
Operating expenses -42.85% -48.01% -56.02% -51.02% -45.05% -53.50% -56.74% -67.60% -50.54% -53.12% -59.01% -51.87% -49.17% -47.88% -55.02% -44.90% -48.17% -61.62% -65.31% -114.62% -58.01% -65.36% -81.13%
Operating income (loss) 21.08% 14.70% 6.37% 15.38% 19.17% 11.06% 6.57% 0.09% 18.19% 16.97% 9.09% 18.28% 18.79% 15.01% 8.29% 21.93% 14.13% -0.24% -5.13% -48.70% 5.21% -2.02% -16.65%
Interest expense 0.00 0.00 0.00 -0.58 -0.60 -0.68 -0.73 -3.61 -3.86 -4.23 -4.91 -4.32 -4.87 -4.49 -3.80 -3.31 -3.81 -4.46 -5.31 -2.43 -1.84 -1.98 -2.60
Loss on extinguishment of debt 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.10 -0.12 0.00 0.00 0.00 -0.10 -1.20 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Income (loss) from equity investments 0.10 0.00 0.00 0.00 0.00 0.00 0.03 1.66 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1.50 -1.45 13.09 17.61 4.01
Other income (expense), net 3.48 3.58 2.33 1.53 0.43 0.43 -0.13 -0.14 -0.26 0.15 0.02 0.33 1.18 0.91 1.04 1.75 1.24 1.93 2.46 0.24 0.34 -1.40 2.22
Income (loss) before income taxes 24.66% 18.28% 8.70% 16.34% 19.00% 10.82% 5.74% -2.11% 13.95% 12.89% 4.20% 14.29% 14.99% 10.23% 5.53% 20.38% 11.56% -2.76% -9.48% -52.34% 16.80% 12.21% -13.02%
Income tax (expense) benefit -12.28 -4.98 -2.14 -5.08 -5.85 -3.50 9.73 -0.67 -3.05 -2.32 3.78 48.15 -0.58 0.02 -0.62 -0.35 0.00 -0.36 -0.11 -0.83 0.67 0.25 -0.11
Net income (loss) 12.38% 13.30% 6.55% 11.26% 13.15% 7.31% 15.47% -2.78% 10.90% 10.57% 7.98% 62.44% 14.41% 10.25% 4.91% 20.03% 11.56% -3.12% -9.59% -53.17% 17.47% 12.45% -13.12%

Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The financial trajectory from March 2018 through September 2023 demonstrates a transition from high operational volatility and initial losses toward a more stable and profitable operating structure. While early periods were characterized by aggressive spending and significant fluctuations in operating margins, the latter half of the period shows improved cost discipline and scaling efficiencies.

Gross Profitability
Gross profit margins have remained consistently strong, generally oscillating between 60% and 70%. A peak was observed in December 2020 at 70.15%, followed by a slight normalization toward the 62% to 64% range by late 2023. The cost of sales has remained relatively stable, typically fluctuating between 30% and 39% of revenue, indicating a consistent ability to manage direct production costs relative to sales growth.
Operating Expenditure Trends
Significant reductions in operating expenses as a percentage of revenue are evident over the analyzed period. Selling, General, and Administrative (SG&A) expenses decreased from a peak of 56.83% in March 2018 to 29.20% by September 2023, suggesting substantial operating leverage. Research and Development (R&D) spending also trended downward from highs of 24.30% to approximately 13.48% in the most recent quarter, indicating a shift from an intensive development phase toward a more commercialized operational model.
Operating Income Stability
Operating income has transitioned from periodic losses to consistent profitability. A notable outlier occurred in December 2018, where operating income dropped to -48.70% due to a one-time collaborative research and development fee of 64.41% of revenue. Following this event, operating margins showed a general upward trend, peaking at 21.93% in December 2019 and returning to a similar level of 21.08% by September 2023.
Non-Operating Items and Net Income
Interest expenses have declined sharply from an average of 3% to 5% of revenue in early periods to approximately 0.6% by late 2022, reducing the impact of debt servicing on the bottom line. Net income exhibits extreme volatility due to non-recurring items, most notably in December 2020, where net income reached 62.44% of revenue, driven by a significant income tax benefit of 48.15%. Excluding such anomalies, net income has stabilized in the 6% to 15% range in recent quarters.

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