DexCom Inc (NASDAQ:DXCM) stock fell 3.64% (As on February 9, 11:23:55 AM UTC-4, Source: Google Finance) after the company beats earnings expectations for the fourth quarter of FY 23. The company has recently announced the launch of its latest continuous glucose monitoring (CGM) system, Dexcom ONE+. This system is simple to use and lowers the entry hurdle to diabetic technology. The new CGM system is likely to ensure more people gain access to accurate, easy, and real-time glucose monitoring. It aims to deliver a highly effective CGM experience to people treating their type 1 or type 2 diabetes with insulin. As of December 31, 2023, Dexcom held $2.72 billion in cash, cash equivalents and marketable securities and the revolving credit facility remains undrawn. The cash balance represents significant financial and strategic flexibility as Dexcom continues to expand production capacity and explore new market opportunities. Non-GAAP net income was $202.8 million for the fourth quarter of 2023, compared to non-GAAP net income of $136.3 million, for the same quarter of 2022.

DXCM in the fourth quarter of FY 23 has reported the adjusted earnings per share of 50 cents, beating the analysts’ estimates for the adjusted earnings per share of 43 cents, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 27 percent to $1.03 billion in the fourth quarter of FY 23, which matches the analysts’ estimates for revenue of $1.03 billion. Volume growth in conjunction with strong new customer additions continues to be the primary driver of revenue growth as awareness of real-time CGM increases. Non-GAAP gross profit totaled $663.8 million or 64.2% of revenue for the fourth quarter of 2023, compared to $543.7 million or 66.7% of reported revenue in the fourth quarter of 2022. Non-GAAP operating income for the fourth quarter of 2023 was $242.7 million, compared to non-GAAP operating income of $172.1 million for the fourth quarter of 2022.

The company has reiterated fiscal year 2024 guidance. DexCom expects full-year revenue to be in the range of $4.15 billion to $4.35 billion, Non-GAAP Gross Profit Margin of approximately 63 – 64%, Non-GAAP Operating Margin of approximately 20% and Adjusted EBITDA Margin of approximately 29%.

Meanwhile, the company has submitted Stelo, Dexcom’s new glucose sensor for people with type 2 diabetes who do not use insulin, to the FDA for review. The company has also submitted Dexcom’s direct-to-watch feature, which will enable customers to use a smartwatch as their primary receiver, to the FDA for review.