“DexCom (NASDAQ: DXCM)Q4 2024 Earnings CallFeb 13, 2025, 4:30 p.m. ETThank you for standing by. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the Dexcom Inc. fourth quarter 2024 earnings release conference call.All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. [Operator instructions] Thank you. I would now like to turn the call over to Sean Christensen, VP of finance and investor relations.Please go ahead.Thank you, Abby, and welcome to Dexcom’s fourth quarter and fiscal year 2024 earnings call. Our agenda begins with Kevin Sayer, Dexcom’s chairman, president, and CEO, who will summarize our recent highlights and ongoing strategic initiatives, followed by a financial review and outlook from Jereme Sylvain, our chief financial officer. Following our prepared remarks, we will open the call up for your questions. At that time, we ask analysts to limit themselves to one question each so we can provide an opportunity for everyone participating today.Please note that there are also slides available related to our fourth quarter and fiscal year 2024 performance on the Dexcom investor relations website on the Events and Presentations page. With that, let’s review our safe harbor statement. Some of the statements we will make on today’s call may constitute forward-looking statements. These statements reflect management’s intentions, beliefs, and expectations about future events, strategies, competition, products, operating plans, and performance.Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.On rare occasions, our expert team of analysts issues a ‘Double Down’ stock recommendation for companies that they think are about to explode. This stock could be far cheaper today than it’s disclosed. And from the numbers, it’s likely to increase significantly. Now is the best time to invest before it’s too late. We’re currently sending “Double Down” alerts for three amazing companies, and there might not be another chance like this for a long time. Learn more » *Stock Advisor returns as of February 3, 2025 All forward-looking statements included on this call are made as of the date hereof based on information currently available to Dexcom, are subject to various risks and uncertainties, and actual results could differ materially from those anticipated in the forward-looking statements. The factors that could cause actual results to differ materially from those expressed or implied by any of these forward-looking statements are detailed in Dexcom’s annual report on Form 10-K most recent quarterly report on Form 10-Q and other filings with the Securities and Exchange Commission. Except as required by law, we assume no obligation to update any such forward-looking statements after the date of this call or to conform these forward-looking statements to actual results. Additionally, during the call, we will discuss certain financial measures that have not been prepared in accordance with GAAP. Unless otherwise noted, all references to financial measures on this call are presented on a non-GAAP basis. This non-GAAP information should not be considered in isolation or as a substitute of one superior to results prepared in accordance with GAAP. Please refer to the tables in our earnings release and the slides accompanying our fourth quarter and fiscal year 2024 earnings call for a reconciliation of these measures to their most directly comparable GAAP financial measure. I will now turn the call over to Kevin. Kevin Ronald Sayer — Chairman, President, and Chief Executive Officer Thank you, Sean, and thank you, everyone, for joining us. Today, we reported fourth quarter organic revenue growth of 8% compared to the fourth quarter of 2023. This brought our full-year organic revenue growth to 12%, which was in line with our latest 2024 guidance. 2024 was a year of strategic investment for Dexcom. And through these investments, we believe we enter 2025 in a stronger position to capitalize on our next wave of growth. To recap, over the past year, we broadened our commercial reach, launched new products that define the category, built greater scale, and advanced CGM reimbursement globally. We ended 2024 with more than 2.8 million customers globally on our G-Series and D-Series products as demand for Dexcom CGM remains high. This represents an increase of approximately 25% to our global active customer base compared to 2023. This increase in customers was driven by momentum both in the category and through our improving execution in the field, which we’re very excited about. This was evident in the U.S., where our salesforce productivity metrics showed improvement in the fourth quarter. We have now grown our U.S. prescriber base by more than 50,000 over the past year. Through these new relationships, we’ve successfully broadened our presence within primary care and made early inroads with emerging CGM care points like maternal-fetal medicine. Importantly, across this growing physician base, we are also seeing prescribing depth improve. It often takes only a single Dexcom experience for a physician to recognize the potential to deliver better care with Dexcom CGM. As these new physicians now expand their use of Dexcom CGM across our practices, we’ve seen the impact to our new patient performance build from the strong third quarter finish that we described on our last call. As discussed earlier in the year, we knew that the opportunity ahead was tremendous when expanding the U.S. salesforce. With this focus on execution, we look to build upon our momentum in 2025 as we further cultivate these relationships and connect with the next leg of CGM prescribers. Our team is also helping many of those physicians navigate the evolving coverage landscape within diabetes care. In the past two years alone, reimbursement for CGM has significantly expanded as we’ve helped establish our clinical value well beyond insulin management. As many of you remember, a key milestone on this journey was the publication of our mobile randomized controlled trial, which demonstrated significantly improved outcomes beyond intensive insulin use. This data prompted clinical societies to update their standards of care and quickly led to widespread reimbursement for anyone on basal insulin. We are now seeing similar evidence build around the benefits of CGM regardless of where someone is in their diabetes journey. In fact, some data has shown even greater health outcomes for those non-insulin when the CGM is providing them real-time feedback on lifestyle decisions for the first time. There is also a growing economic argument for incorporating CGM earlier into care plans as this has been shown to reduce hospitalizations, specialty visits, and utilization of healthcare resources. As this comprehensive body of evidence continues to grow, payers have started to act. We recently shared that as of January 202
