Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: DexCom (Nasdaq: DXCM) dropped 10% in intraday trading today after reporting inline earnings and announcing plans to sell at least 4.7 million additional shares of stock to fund "working capital and general corporate purposes."

So what: Earnings per share of -$0.19 were inline with the consensus estimate. Despite a 48% increase in revenue from the year-ago quarter, DexCom's operating loss increased by 7% because of a surge in operating expenses.

Now what: The higher operating loss on significantly higher revenue raises questions about the company's ability to grow into profitability. In the meantime, the number of shares outstanding will increase by about 8%, diluting net income by a similar amount. As long as the company continues to operate at a loss, the larger share count has the counterintuitive affect of reducing the per-share loss.

Interested in more info on DexCom? Add it to My Watchlist.

Fool contributor Cindy Johnson owns no shares of any company named above. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.