DexCom's Q4 2024: Contradictions on Sales Force, Revenue Growth, and Sensor Launch

These are the key contradictions discussed in DexCom's latest 2024Q4 earnings call, specifically including: Sales Force Productivity and DME Relationships, Revenue Growth Expectations for 2025, and 15-Day Sensor Launch:



Revenue and New Patient Growth:
- DexCom reported worldwide revenue of $1.11 billion for Q4 2024, representing an 8% increase on both a reported and organic basis.
- The growth in revenue was driven by a 12% increase in organic revenue for the full year and a record increase in their active customer base, with more than 2.8 million new customers globally.

U.S. Market Dynamics and Sales Force Expansion:
- U.S. revenue totaled $803 million for Q4, a 4% increase from the previous year.
- Despite this, the company's sales force productivity metrics improved, particularly in terms of prescriptions per health care professional, showing increased efficiency.
- This was attributed to the company's strategic expansion of its sales force and improvements in execution in the U.S. market.

International Expansion and Access Wins:
- International revenue grew 17% to $311 million in Q4, contributing significantly to overall growth.
- This was driven by new access wins and the expanded availability of G7 and DexCom 1+ systems in key markets, notably in France and New Zealand.

Stelo Product Launch and Market Strategy:
- The launch of Stelo, their over-the-counter product, added 2% to 3% of revenue in the first four months of availability.
- Stelo is projected to contribute 2% to 3% of revenue for the year, with strategic focus on expanding its distribution channels, including Amazon's launch in Q1.

Operational Challenges and Margin Improvement:
- Gross profit was $661.2 million, or 59.4% of revenue, impacted by a $21 million noncash charge related to inventory and production issues.
- Despite this, the company expects gross profit margin to improve to the range of 64% to 65% in 2025, supported by higher-scale manufacturing and the 15-day G7 system launch.