DexCom, Inc.

Welcome to the Dexcom second quarter 2021 earnings release conference call. My name is Darrell and I will 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. You may begin.

Thank you, Operator, and welcome to Dexcom's second quarter 2021 earnings call. Our agenda this afternoon includes comments on the company's recent performance and strategic initiatives from Kevin Sayre, Dexcom's Chairman, President, and CEO, Jeremy Sylvain, our Chief Financial Officer, and finally an update from Quentin Blackford, our Chief Operating Officer. 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 second 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 and 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 10Q, 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 our tables in our earnings release and the slides accompanying our second quarter earnings presentation for a 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 great results for our second quarter with 32% revenue growth for the quarter compared to the second quarter of 2020. As well as solid execution on our key strategic initiatives that we will discuss throughout the call today. The 143 million in absolute dollar revenue growth compared to the second quarter in 2020 represents the highest quarterly increase in Dexcom's history. We continue to believe that we are early in our story with the potential to drive a far greater impact on global health. Our growth performance is closely related to the progress we've made to advance access on our CGM systems for people with diabetes. And because there is often so much misinformation spread about access to Dexcom CGM in the field or the cost of our products for people with diabetes, Let me point out several key points that our investors, clinicians, and current and potential customers should know. We've advanced pharmacy access in the U.S., where more than 70% of our commercial customers have a monthly out-of-pocket cost of less than $60 per month, and nearly one-third of our customers have zero out-of-pocket costs for their G6 sensors. According to Acuvia, this is less than the comparable out-of-pocket cost for our nearest competitor. The latest research from diabetes market research firm Seagrove Partners confirms our conclusion, with Dexcom having the lowest customer copays of the three largest CGM suppliers in the U.S. for customers on intensive insulin therapy. We've significantly expanded coverage for people with intensively managed type 2 diabetes, with the overwhelming majority of these patients now having coverage for Dexcom CGM in the U.S. We also continue to advocate for equitable access to our CGM supplies for populations that are often underserved. As of July 2021, there are now 43 state Medicaid programs providing coverage for Dexcom CGM, including a growing number of states providing access through the pharmacy channel for both type 1 and type 2 intensive users. We are building even more on those advocacy efforts in collaboration with several key nonprofit organizations that support the diabetes community. In June, we launched the Global Movement for Time and Range. to broaden awareness of time and range and its benefits for people with diabetes and their healthcare providers. And we hope that this collaboration effort will lead to future solutions for improved CGM access. Our teams have taken a leading role to drive the removal of administrative barriers that prevent people with diabetes from accessing the benefits of real-time CGM. Along these lines, we are pleased to see the update from CMS in the second quarter to remove the requirement of at least four daily finger sticks for Medicare customers. This will simplify the CGM onboarding process for both customers and clinicians. We've also made solid progress internationally, building from our position of operational strength to advocate for broader reimbursement for G6. This initiative is moving forward according to plan, with several geographies publicly announcing enhancements to their coverage of Dexcom CGM in the second quarter. Despite these developments, a majority of people on mealtime insulin continue to manage their diabetes with finger sticks. Even in the U.S., a leader in CGM adoption, we continue to believe that the Type 1 market remains less than 50% penetrated, and the Type 2 intensive market is less than 25% penetrated. So there remains a great opportunity ahead of us, even in the markets that we currently serve. At the same time, we are generating a growing evidence base for the use of Dexcom CGM. At the ATTV and ADA industry conferences in June, We presented exciting research affirming the benefits of our product platform, including the Alert 1 trial. This randomized controlled trial was simultaneously published in the Lancet, showing superior health outcomes associated with use of Dexcom CGM relative to our nearest competitors, Flash Glucose Monitor. These conferences also featured several presentations on the use of CGM for people with type 2 diabetes. including those not using mealtime insulin, as well as use in women who are pregnant, use in a hospital setting, and even conclusions applicable to health and wellness using CGM data. Perhaps the most significant of these presentations was the long-awaited readout of our MOBIL trial, which was also published in the Journal of the American Medical Association. MOBIL was another rigorous, randomized controlled trial assessing the value of Dexcom CGM compared to the current standard of care, finger sticks, for people with type 2 diabetes treated with basal insulin. Importantly, the study looked at a diverse user base representative of the U.S. population, and it assessed these people in the primary care clinical environments where they are traditionally served. So what did we see? We saw clinically significant A1C reductions for users of our Dexcom CGM systems. And perhaps even more telling, we saw a 16% time and range increase for the CGM cohort, which is four additional hours per day spent in the target glucose range. These were results produced with Dexcom CGM and Dexcom software. We designed the trial with the goal of changing the standard of care for these basal insulin users, a group that we believe includes between 3 and 4 million people in the U.S. alone. With these results, we feel that mobile and Dexcom have the potential to do just that, And our teams look forward to driving better awareness and access based on the study outcomes and the JAMA publication. We also made great progress in the second quarter to advance the clinical and regulatory pathway for our next generation G7 CGM system. At ATTD in June, we provided an update on the performance of G7 drawn from our recent clinical trials. Based on the data shown, we expect that G7 will continue the excellent clinical and real-world performance and reliability that we have established with our G6 brand. And it will do so with several factors that we believe will enhance our customer experience, including a fully disposable sensor and transmitter, a redesigned app experience, and a market-leading 30-minute warm-up period. Our G7 continues to progress according to our plans. During the second quarter, we concluded our U.S. clinical trial that will support our ICGM filing, and our teams have now shifted to processing the data and working toward preparing the regulatory filing. In addition, we've recently submitted G7 for CE mark approval. As we previously discussed, we believe that this timing places us on track to begin the G7 launch by the end of 2021. These are incredible achievements and advances from the quarter and a nice step forward to fulfill the promise presented by our CGM technology. And this is just the beginning. There are several additional areas of progress that Jeremy and Quentin will discuss based on the great work of our teams in the past several months. So with that said, let me turn it over to Jeremy for a review of our second quarter financial performance. Jeremy?