In 2020, Dexcom recorded a new high of $1.9 billion in revenue, prompting CEO Kevin Sayer to declare it the diabetes devicemaker’s “best year ever.” The company then proceeded to outstrip that total first in 2021, with $2.5 billion in revenue, then in 2022, with $2.9 billion—and now, it’s on track to record its fourth “best year ever” in a row.
The second quarter alone has already topped all of the company’s previous quarterly records.
“Q2 was our highest revenue quarter ever and represented the largest year-over-year dollar growth in our company's history,” Sayer said in a call with investors, adding that the second-quarter earnings “were like a highlight reel.”
Those memorable moments include year-over-year growth of 25%, which brought the quarter’s total to just over $871 million, according to the company’s earnings report. Not only is that $175 million higher than the $696 million Dexcom tallied a year prior, but it also bests the first quarter of this year by more than $100 million.
The increase was particularly pronounced outside of the U.S., with international revenue growth clocking in at 38% for the period. Dexcom “gained market share in nearly every major reimbursed geography,” Sayer said, and also racked up “record new customer starts worldwide.” Those new additions were helped along by the CEO’s report that in the U.S. alone, about 8,000 doctors are now writing prescriptions for Dexcom’s continuous glucose monitors for the first time—and specifically the G7 CGM—a sizable jump from the 1,000 new G7 prescribers the company had counted just three months before.
The G7 sensor scored FDA clearance at the end of last year and has spent this year gaining speed in a full-scale global rollout. That included its launch into six new markets in the second quarter alone, per Sayer; the coming months will see the CGM make its Canadian debut after scoring Health Canada approval just a few weeks ago.
The increased uptake of Dexcom’s devices has been helped along by the recent expansion of Medicare coverage for CGMs. As of this spring, the government insurer now covers the devices for all people with diabetes who use any type of insulin, rather than only those who require intensive insulin therapy—a change that has since been adopted by many private payers, too.
The expansion helped Dexcom set yet another quarterly record: “We have seen a notable uptick in demand in our Medicare business. In fact, Q2 was our highest new patient quarter within the Medicare channel in the history of our company,” Sayer said on the call. “Considering this was only a partial quarter of expanded coverage, we view this as a very positive sign of things to come.”
With those gains expected to continue—and building on the success of the record-setting quarter—Dexcom bumped up its outlook for the full year.
It’s now forecasting total revenue growth between 20% and 22%, compared to previous predictions that topped out closer to 20%. That could send the company’s 2023 revenues well past $3.5 billion, setting it up for yet another “best year ever.”
Elsewhere on the horizon, Dexcom is currently in the process of building a version of its CGM technology designed for people with Type 2 diabetes who don’t take insulin at all. That 15-day sensor will replace some features of the G7 monitors with a greater focus on factors like diet, medications and activity levels, and it’s on track for a U.S. launch “early next year,” Sayer said Thursday.