DexCom Inc (NASDAQ:DXCM) shares are trading higher after the company reported better-than-expected Q2 FY23 results.
It posted sales of $871.3 million, up 25% Y/Y (+26% Y/Y organic basis), beating the consensus of $841.6 million.
Revenues continued to be benefited from volume growth in conjunction with strong new customer additions.
Adjusted gross profit increased to $553.5 million from $449.5 million in the prior year quarter.
Adjusted operating income rose to $158.4 million from $101.9 million a year ago.
DexCom reported adjusted EPS of $0.34, beating the consensus of $0.23.
As of June 30, 2023, Dexcom held $3.64 billion in cash, cash equivalents, and marketable securities.
FY23 Outlook: The company revised the guidance for sales to $3.500 billion-$3.550 billion from the previous guidance of $3.400 billion – $3.515 billion (vs. consensus of $3.50 billion).
DXCM updated the outlook for an adjusted gross margin of approximately 63% (from 62%-63%), an adjusted operating margin of around 17% (from 16.5%), and an adjusted EBITDA Margin of roughly 26.5% (from 26%).
Last month, the company raised the outlook for 2025 revenue to $4.6 billion – $5.1 billion (from $4.0 billion – $4.5 billion), adjusted operating profit margin to 21% (from 20%), and adjusted EBITDA margin to 31% (from 30%).
Also Read: Dexcom G7 Continuous Glucose Monitoring System Gets Regulatory Nod From Health Canada
Price Action: DXCM shares are up 6.9% at $138.29 on the last check Friday.
