DexCom, Inc.

Welcome to the Dexcom first quarter 2021 earnings release conference call. My name is Adrienne and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we'll 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 know this conference is being recorded. I now turn the call over to Shawn Christensen. Shawn, you may begin.

Thank you, operator, and good afternoon, everyone. Welcome to Dexcom's first quarter 2021 earnings call. Our agenda begins with Kevin Sayre, Dexcom's chairman, president, and CEO, who will provide a summary of our progress, followed by a financial review and outlook from Jeremy Sylvain, our chief financial officer, and then an update from Quentin Blackford, our chief operating officer, on the company's strategic initiatives and scaling progress. Following our prepared remarks, we'll open up the call 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 first 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 date 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, most recent quarterly report on Form 10-Q, 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. 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 first quarter 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 we reported strong first quarter results with total revenue growth of 25% over the first quarter of 2020. As I often tell our employees, our ability to thrive as a company ultimately comes down to solving significant problems with a great product. And that is what we continue to see with G6. We hear incredible stories of improved glucose control, reduced disease burden, and people being empowered. And those responses have only increased as we've enhanced tools to better drive our customer experiences. These stories are coming from multiple sources as well, whether it is coming from G6 users or their family members who are gaining better control of their glucose levels through real-time data. or clinicians who are empowered by the ability to gather unique insights into the diabetes treatment of their type 1 or type 2 patients and optimize therapy accordingly. And even new settings like nurses and doctors in the inpatient setting who are deploying CGM and learning about its potential to optimize workflows and benefit from our remote monitoring technology. New customer additions are off to a great start in 2021, especially in the U.S. as we continue to see growth across all channels. building from the increased access that we've gained over the past several years. This includes continued traction for people with type 1 diabetes and type 2 intensively managed diabetes, both of which have continued the strong growth momentum that we've seen over the past couple of years. We're also seeing a growing number of type 2 non-intensive customers on G6. Not only through our partnerships like United Health Care's Level 2 program, but also including the other innovative programs and providers that are establishing early access to Dexcom CGM. We're also progressing our strategic commercial efforts with the remainder of our commercial Salesforce expansion completed in the first quarter and our direct consumer marketing efforts generating new levels of brand awareness. The Super Bowl commercial featuring Nick Jonas was a highlight for the company in the first quarter. We were able to generate significant excitement for our employees and customers, many of whom have sent us pictures and stories of their pride and feeling represented during one of the biggest annual events in the world. We also contributed to a broader conversation in the diabetes community that we hope will help facilitate broader access to CGM in the future. The ad drove a record number of visitors to our website, a record for single-day new customer leads, and significantly more media impressions than we generated in all of 2020. And we are confident that there will be ongoing benefits that will come from the ad. In fact, according to the independent Harris poll, Dexcom led all Super Bowl advertisers in brand equity growth. Overall, it was a great investment for the company, and I'm really proud of our team for pulling it together. Our commercial efforts also include a strong push from our teams to expand access to Dexcom CGM technology internationally. both deeper in existing markets as well into new geographies. With Dexcom in the strongest inventory position in the company's history as a result of our scaling initiatives, we are aggressively advocating for broader access to our G6 systems for people with type 1 diabetes and intensively managed type 2 diabetes similar to what we have done here in the United States. Since we last reported in February, we have received confirmation from three additional Canadian provinces that they will begin covering Dexcom CGM. This is a great step forward in expanding access for people with diabetes. There is significant demand from customers and clinicians, and we are optimistic that we will continue this positive momentum in Canada with both the public and private payers over the coming months. In certain reimburse markets, we are proactively lowering price to significantly expand access to incremental customer populations. This positions us well to continue to grow sensor volumes significantly now and into the future, and we believe the incremental volumes will more than offset the impact of price in the near term. In conjunction with our commercial initiatives and the growing CGM category awareness, we're advancing the clinical and regulatory path for our next generation G7 CGM system. As a reminder, we expect G7 to improve all aspects of the current customer experience offered with G6. in a disposable wearable that is less than half the size. We are working to prepare the submission for CE-MARC in accordance with the new medical device reporting standard in the EU. At this point, we remain on track for our target launch of G7 in the second half of 2021. We also plan to present preliminary data on G7 performance at the upcoming ATTD conference in early June. Our trial that will support our US ICGEM filing is also well underway. And we received outstanding feedback from the investigators and patients involved. We expect to complete that trial in the current quarter and we'll keep you updated as we progress towards regulatory approvals and launch. Even as we advance our strategic plans and have seen continued customer growth over the past year, the evidence of the global pandemic remains with us. We continue to navigate certain closures and territories that have seen cases spike. And our team remains focused on the three priorities that we have emphasized throughout the past year. The health and safety of our employees, continued supply of our customers, and service to our communities. Toward this end, we were pleased to recently work with the state of Arizona to open the first indoor mass vaccination facility in Arizona to help the community as it transitions to the heat of the summer months. This facility rests within our Mesa distribution facility and has the capacity To support several thousand appointments per day. I am proud to lead a company whose employees are so dedicated to the service of our customers and willing to think creatively about what it means to be a leader in the communities that we serve. As we come back to first quarter results. I want to welcome a new voice to our earnings call those familiar to many of you already. Last month, we announced the promotion of Jeremy Sylvain to the role of Chief Financial Officer, and I am pleased to have Jeremy join Quentin and I for his first XCOM earnings call this afternoon. Jeremy?