SAN FRANCISCO—After spending the past year extending its portfolio of continuous glucose monitors to include people who may not have diabetes, Dexcom said it expects to see more than $4.03 billion in 2024 revenue, for a gain of 11% over the year prior.
The blood sugar tracking company offered a preliminary look at its annual and fourth-quarter earnings report at the J.P. Morgan Healthcare Conference in San Francisco. That included stats showing Dexcom’s worldwide user base growing by about 25%, to more than 2.8 million customers.
At the same time, Dexcom predicted its year-long sales would continue to grow through 2025, with a forecast of about 14% growth to total revenues of around $4.60 billion.
During his presentation to investors, CEO Kevin Sayer noted that, as of this month, two of the three largest pharmacy benefit managers in the U.S. now offer commercial coverage for Dexcom’s CGM for any person with diabetes—including those with Type 2 diabetes who are not taking insulin. That amounts to more than 5 million new potential users.
“When people get a product that is reimbursed and paid for, they stay on it and they use it,” Sayer said.
Meanwhile, the company’s over-the-counter Stelo wearable—which launched last August—has since racked up more than 140,000 users and $22 million in revenue through the end of 2024, with the majority signing up for recurring subscriptions.
“It’s a completely different distribution strategy than we’ve had before and it appeals to a new patient group,” including people with prediabetes and those interested in health and wellness," he said.
For the fourth quarter alone, the company recorded at least $1.11 billion in sales, for an 8% gain over the same three-month period in 2023.
Sayer also addressed the issues that dragged down the company’s stock last year. Following its second-quarter earnings report in July 2024, Dexcom’s share price slid by as much as 40% after news that revenue was coming in below expectations—due in part to a realignment of its sales force ahead of Stelo’s launch, and its products losing market share among durable medical equipment distributors.
This week, Sayer said the company expanded its sales force by 40% and logged 50,000 new prescribers during the year. Elsewhere, new manufacturing lines came online in Malaysia and the U.S. to help cover demand.
“When you’re trying to do as many things as we were, sometimes things can get a little choppy, and they did,” Sayer said.
For its future portfolio, Dexcom is working to move all of its sensors to its 15-day platform, like its Stelo product, and has made submissions to the FDA. Stelo’s features will also migrate to other systems, with the over-the-counter wearable acting as a gateway for people new to CGM as a whole.
In addition, the next generation of the company’s mainstay G7 CGM will add the ability to track several diabetes biomarkers at once. “There are people wearing the G8 sensor right now” as it’s under development, with advanced electronics and multi-analyte probes, Sayer said.
Also during his presentation, Sayer illustrated how consistent CGM use can help bring a user’s high glucose levels back down into a healthy range.
“If we were a pharmaceutical, and we could lower A1Cs from 12% to 6%, you guys would be running out of here buying the stock now,” Sayer said to investors at JPM.
“This is what CGM does, it gives people the ability to make decisions in their health regarding lifestyle choices, activity choices, nutrition choices,” he said. “And most importantly the ability to determine how effective those medications are.”