It makes sense that the stocks of companies that have developed or are developing products to fight COVID-19 have skyrocketed in 2020. The same is true for stocks of companies that directly benefit from the shelter-at-home regulations that have been in force. But DexCom (NASDAQ:DXCM) doesn't belong in either category and has still seen its shares soar more than 50% year to date.

The maker of continuous glucose monitoring (CGM) systems announced its first-quarter results after the market closed on Tuesday. And it looks like DexCom's good times will keep on rolling. Investors appeared to be pleased with the company's results, with the healthcare stock jumping more than 6% in after-hours trading on Tuesday. Here are the highlights from DexCom's Q1 update.

Dexcom's glucose monitoring app on smart phone

Image source: DexCom.

By the numbers

DexCom announced first-quarter revenue of $405.1 million, an impressive 44% year-over-year jump. This result trounced the average analysts' Q1 revenue estimate of $357.6 million.

The company generated net income in the first quarter of $19.9 million, or $0.21 per share, based on generally accepted accounting principles (GAAP). This was a huge improvement from the prior-year period when DexCom posted a net loss of $26.9 million, or $0.30 per share.

Wall Street focuses more on adjusted non-GAAP earnings. DexCom didn't disappoint on that score, either, reporting Q1 adjusted earnings of $41.4 million, or $0.44 per share. This represented a stark contrast from the company's adjusted net loss of $4.6 million, or $0.05 per share, recorded in the same quarter of 2019. It also blew away the consensus analysts' adjusted earnings estimate of $0.14 per share.

Behind the numbers

DexCom CEO Kevin Sayer aptly summed up his company's strong Q1 performance by stating the continued momentum was "driven by growing awareness and customer satisfaction with our G6 CGM technology." The company attributed its revenue growth primarily to volume growth in sales of the G6 system.

There really weren't any negatives to be found in DexCom's Q1 results. Operating expenses climbed nearly 22% year over year to $222.9 million. However, that increase paled in comparison to the company's revenue growth.

DexCom did spend $3.2 million in incremental costs related to the COVID-19 outbreak. These were mainly related to additional spending on payroll, consulting, information technology infrastructure, and facilities. But the company was able to shrug off these extra costs with soaring demand for its G6 CGM continuing in spite of the pandemic. 

Looking ahead

The one significant impact that COVID-19 is having on DexCom is that the uncertainties related to the pandemic resulted in the company temporarily suspending its 2020 guidance. DexCom anticipates that it could experience some impact from patients staying at home and clinicians shifting to virtual care models. However, it also stated that it "has seen benefits in the shift to telemedicine" including increased appreciation for its virtual diabetes care offerings and monitoring of patients in hospitals.