Dexcom Reports 22% Revenue Growth to $1.2 Billion in 2024 Amidst Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4h ago
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Source: Fool
- Significant Revenue Growth: Dexcom's Q3 2024 revenue surged 22% year-over-year to $1.2 billion, indicating strong market demand despite product recall issues, reinforcing the company's leadership in diabetes monitoring.
- Expanding Customer Base: By the end of 2024, Dexcom's customer count reached approximately 2.8 to 2.9 million, with expectations for continued growth in 2025, reflecting the company's success in attracting new users.
- Limited Impact of Recall: Although Dexcom faced a Class 1 recall for 602,445 G7 receivers due to malfunctions, only 112 complaints were reported, indicating that the issue affected a relatively small percentage of the customer base and did not significantly impact overall business performance.
- Huge Market Potential: Dexcom estimates that 4.5 million diabetes patients have yet to adopt CGM technology, and the introduction of the new Stelo product is expected to broaden market coverage, attracting more non-insulin users and prediabetic patients, thereby enhancing the company's growth prospects.
Analyst Views on DXCM
Wall Street analysts forecast DXCM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DXCM is 84.81 USD with a low forecast of 68.00 USD and a high forecast of 112.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
23 Analyst Rating
19 Buy
3 Hold
1 Sell
Strong Buy
Current: 70.730
Low
68.00
Averages
84.81
High
112.00
Current: 70.730
Low
68.00
Averages
84.81
High
112.00
About DXCM
DexCom, Inc. is a medical device company. The Company is primarily focused on the design, development, and commercialization of continuous glucose monitoring (CGM), systems for the management of diabetes and metabolic health by patients, caregivers, and clinicians. Its products include Dexcom G6, Dexcom G7, Stelo, Dexcom Share, and Dexcom ONE. The Company enables people to take control of health through innovative biosensing technology. Dexcom G6 is its integrated continuous glucose monitoring system (iCGM). Stelo is designed specifically for people with type II diabetes who do not use insulin as the first over-the-counter glucose biosensor in the United States. The Dexcom Share remote monitoring system, offered for use with any Dexcom system, uses an app on the patient’s compatible mobile device. Its Dexcom G7 is for adults and children (2+ years) living with type I or type II diabetes who are on any insulin or medications, at risk of hypoglycemia, and those with gestational diabetes.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
