Medical device maker Dexcom beat fourth-quarter sales estimates helped by resilient demand for its continuous glucose monitors (CGMs) used by patients with diabetes.
Dexcom’s shares fell nearly 37per cent last year, largely due to a slump in July after the company slashed its annual revenue forecast, blaming a restructuring of its sales team, fewer customers and lower revenue.
In July, the company said that based on the compounding effect of lower second-quarter new customer starts, it expects the growth rate in the back half of the year to be impacted.
It reiterated its previous 2025 revenue estimate of $4.60 billion. Analysts on average were expecting revenue of $4.61 billion, as per data compiled by LSEG.
The company reported fourth-quarter revenue of $1.11 billion slightly above the analysts’ consensus estimate of $1.10 billion.
The California-based device maker is pinning its hopes on Stelo, its recently launched device for adults aged 18 and older who do not use insulin, making it the first CGM available for over-the-counter sales.
Increasing diabetes care awareness, wider insurance coverage, and preference for devices that do not need finger pricks have benefited CGMs such as Dexcom’s Stelo and G7. Rival Abbott launched its own OTC CGM, Lingo, weeks after Dexcom’s Stelo debut.
The company is counting on further international expansion to drive growth after it said it had improved access to its devices in markets such as Japan and France last quarter.
On an adjusted basis, the company earned a profit of 45 cents per share, compared to estimates of 50 cents per share. Reuters