DexCom, Inc.

Welcome to the Dexcom fourth quarter and full year 2020 earnings release call. My name is Darrell and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. During the question and answer session, if you have a question, please press star then one on your touchtone phone. Please note that this conference is being recorded. I will now turn the call over to Shawn Christensen. Shawn, you may begin.

Thank you, Operator, and welcome to Dexcom's fourth quarter and full year 2020 earnings call. Our agenda begins with Kevin Sayre, Dexcom's Chairman, President, and CEO, who will provide a summary of the quarter and full year 2020, followed by a financial review and outlook from Quentin Blackford, our COO and CFO, and then a strategic update from Steve Pacelli, our Executive Vice President of Strategy and Corporate Development. Following our prepared remarks, we will open the call up for your questions. At that time, we ask analysts to limit themselves to one question so we can provide an opportunity for everyone participating today. Please note that there are also slides available related to our fourth quarter performance on the Dexcom Investor Relations website on the events and presentations page. With that, let's review our safe harbor statement. Some of the statements we will make in today's call may constitute forward-looking statements. These statements reflect management's intentions, beliefs, and expectations about future events, strategies, competition, products, operating plans, and performance. All forward-looking statements included in this presentation are made as of the day hereof based on information currently available to Dexcom, are subject to various risks and uncertainties, and actual results could differ materially from those anticipated in the forward-looking statements. The factors that could cause actual results to differ materially from those expressed or implied by any of these forward-looking statements are detailed in Dexcom's annual report on Form 10-K and other filings with the Securities and Exchange Commission. Except as required by law, we assume no obligation to update any such forward-looking statements after the date of this presentation or to conform these forward-looking statements to actual results. Additionally, during the call, we will discuss certain financial measures that have not been prepared in accordance with GAAP with respect to our non-GAAP and cash-based results. Unless otherwise noted, all references to financial metrics are presented on a non-GAAP basis. The presentation of this additional information should not be considered in isolation or as a substitute for results or superior to results prepared in accordance with GAAP. Please refer to the tables in our earnings release and the slides accompanying our fourth quarter and full year earnings presentation for reconciliation of these measures to their most directly comparable GAAP financial measure. Now, I will turn it over to Kevin.

Thank you, Sean, and thank you everyone for joining us today. Let me start by summarizing some of the things that Dexcom accomplished in 2020. Total revenue grew 31% over 2019, driven by a record number of new patient additions. This translates to more than $450 million in absolute dollar growth, another high-water mark for Dexcom. We doubled G6 capacity in the first six months of the year. Our team has done a great job to meet the ambitious plans that we outlined nearly two years ago to scale G6 capacity, leaving the company in the best inventory position that we have been in since the launch of G6. The scale-up led to strong gross margin expansion in 2020, even as we increasingly shift our business to the pharmacy channel. We closed the full year 2020 with our highest gross margin since 2017. Our enhanced capacity puts us in position to aggressively pursue our growth initiatives. This includes the expansion of our sales force, which we announced in October and have nearly completed, as well as our efforts around product sampling and direct-to-consumer advertising in the U.S. and international markets. Many of you have seen our most recent effort to drive category awareness as we kicked off a new campaign around one of our Dexcom warriors, Nick Jonas, including our ad during the Super Bowl. This bold effort should give you a sense for our belief about the market opportunity ahead of us. We've received great feedback from the campaign so far and look forward to joining forces with Nick and diabetes advocacy groups in the coming months to drive greater awareness of the benefits of CGM. At the height of the pandemic's first wave, we established a new effort in a matter of days to support hospitals needing to preserve personal protective equipment and utilize our remote monitoring technology. We've made significant progress in our work to bring Dexcom CGM to people with type 2 diabetes, including both those on intensive insulin therapy and those who are not. We also announced several new initiatives in 2020 that we believe will position us to meet the kinds of patient growth that we expect over the next several years. Building on the success of our team in Manila, where we've strengthened our customer service metrics across the board, we announced a new global business services unit in Lithuania that will help serve our international operations. We also announced that we will be building our third manufacturing site and first international manufacturing site in Malaysia. This state-of-the-art facility will be key to scaling our G7 capacity and provide logistical advantages as we look to serve our growing international base. Speaking of G7, 2020 saw us initiate and complete the first G7 pivotal trial. We're very happy with these results, and the feedback we've received from participants and clinicians involved in the trial has been outstanding. Our clinical work is continuing as we progress with the regulatory path in 2021 to support our goal to launch G7 in the second half of the year. In any given year, these are accomplishments that we would be proud of. But in 2020, our teams accomplished these goals during a global pandemic. I want to use this forum again to say how proud I am of the Dexcom employees who have embraced our mission to empower people to take control of diabetes in a year of very unique challenges. It is a privilege to both lead and learn from such a talented team. And rest assured, our team is focused on the growth opportunity ahead of us as we're now well on our way in 2021. This is shaping up to be another exciting year for the company, featuring our continued momentum as we look to bring G6 to many potential customers yet to use CGM, the ongoing manufacturing scale up and launch of G7, and investing in several other key initiatives related to the growth pillars that we outlined at our recent investor day. We believe there is still a huge growth opportunity ahead, and we are investing to ensure that the company is positioned to deliver CGM as a mass market technology for greater health outcomes. The pandemic has contributed to structural changes in the way healthcare is delivered. With Dexcom CGM a valuable asset in the growing digital health and remote monitoring healthcare ecosystems, yet a majority of people with diabetes in the world continue to rely on finger stick technology. is because of these developing landscapes and our belief in what Dexcom CGM offers, that we're announcing the formation of Dexcom Ventures today, which Steve Pacelli will lead. With this entrance into the venture capital space, we believe we will be able to accelerate development for innovative companies that share our commitment to empowering greater health outcomes for customers and their clinicians. This may include technologies with use cases that can be combined with our CGM system, as well as independent technology platforms. To summarize, we are very proud of what we accomplished in 2020 and are moving forward with the same commitment to our users and the growth of Dexcom well into the future. With that, I will turn it over to Quentin for a review of the fourth quarter financials and discussion of the 2021 outlook. Quentin?