Shares of Dexcom tumbled more than 35% in extended trading Thursday after the diabetes management company reported disappointing revenue for the second quarter and offered weak guidance.
Here’s how the company did:
- Earnings per share: 43 cents adjusted vs. 39 cents expected by LSEG
- Revenue: $1 billion vs. $1.04 billion expected by LSEG
Dexcom’s revenue increased 15% from $871.3 million a year earlier, according to a release. The company reported net income of $143.5 million, up from the $115.9 million it reported during the same period last year.
For its third quarter, Dexcom expects to report revenue between $975 million to $1 billion to account for “certain unique items impacting 2024 seasonality,” the release said. Dexcom updated its full fiscal year guidance to reflect expected revenue between $4 billion and $4.05, which is down from the $4.20 billion to $4.35 billion it forecast last quarter.
“While Dexcom advanced several key strategic initiatives in the second quarter, our execution did not meet our high standards,” Dexcom CEO Kevin Sayer said in the release. “We have a unique opportunity to serve millions of more customers around the world with our differentiated product portfolio and we are taking action to improve our execution and best position ourselves for continued long-term growth.”
Dexcom offers a suite of tools like continuous glucose monitors for patients that have been diagnosed with diabetes. In March, the company announced its new over-the-counter CGM called Stelo had been cleared for use by the U.S. Food and Drug Administration. Stelo is designed for patients with Type 2 diabetes who do not use insulin, and Dexcom said Thursday that it will officially launch in August.