What happened
Shares of continuous glucose monitor (CGM) maker Dexcom (DXCM -0.08%) are up more than 9% this morning after reporting sales and earnings that beat analyst estimates. Management also increased its full-year guidance for both metrics.
Image source: Getty Images.
So what
Revenue grew 32% year over year in the period. That was the fastest pace of expansion since the same quarter last year. It has Wall Street excited that any impact from the pandemic is in the rearview mirror.
| Quarter | Revenue | YOY Growth |
|---|---|---|
| Q2 2021 | $595 million | 32% |
| Q1 2021 | $505 million | 25% |
| Q4 2020 | $569 million | 23% |
| Q3 2020 | $501 million | 26% |
| Q2 2020 | $452 million | 34% |
Data source: Dexcom.
After a quarter of its value was erased during the broad market sell-off in May, shares are back at an all-time high. The stock got a boost after management presented positive data for its next-generation CGM in June.
Now what
The global market for CGMs is roughly $5 billion and is projected to grow faster than 10% for most of this decade. CEO Kevin Sayer has said the penetration of CGMs in the U.S. is still low. He cites type 1 diabetes penetration under 50% and type 2 penetration less than 25%. He's expecting the company's innovative products to push that number higher.
Investors will now look to the much-anticipated release of the company's next-generation monitor, the G7. The device was initially anticipated to launch early this year, but trials were hampered by the pandemic. Sayer confirmed the G7 will still launch in 2021, which was music to Wall Street's ears.
