DexCom, Inc.

Welcome to the Dexcom second quarter 2022 earnings release conference 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 01 on your touchtone phone. As a reminder, 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 second quarter 2022 earnings call. Our agenda begins with Kevin Sayre, Dexcom's chairman, president, and CEO, who will summarize our recent highlights and ongoing strategic initiatives, followed by a financial review and outlook from Jeremy Sylvain, our chief financial 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, 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. 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 second quarter earnings presentation for a reconciliation of these measures to their most directly comparable GAAP financial measures. Now, I will turn it over to Kevin.

Thank you, Sean, and thank you, everyone, for joining us. Today, we reported another strong quarter for Dexcom with second quarter organic revenue growth of 16% compared to the second quarter of 2021. Momentum for global CGM adoption remains high, and we once again achieved worldwide record new customer starts in the second quarter. Following some disruption early in the year related to the Omicron wave, office access has continued to improve, and we experienced a return to a more normalized customer journey, which helped us deliver this record Customer satisfaction also continues to reach new levels as our U.S. Net Promoter Score hit another all-time record in the second quarter. Our customers value the differentiated experience that Dexcom provides with consistent praise for our real-world accuracy, connectivity, actionable features, and customer support. Product performance has been a hallmark for Dexcom throughout our history. Customers and caretakers alike rely upon the accuracy of Dexcom CGM and can be confident in performance across all aspects of glucose management, backed by numerous clinical trials and borne out by real-world experience. We have long viewed software as an avenue to differentiate, enabling unique user experiences, supporting greater connectivity, and enhancing our ability to move more seamlessly into new markets. In support of this vision, We have invested significantly in building our software infrastructure in recent years and now spend more of our R&D budget on software than hardware. A tangible example of this can be found in our rollout of Dexcom 1. This product leverages our G6 hardware and will use our G7 platform in the future, but uses software to provide a different experience than our G-series systems. This has allowed us to meaningfully expand our market presence in recent months. entering new markets and winning tenders internationally that were previously not available to our G-Series product. This is just the beginning of our journey on leveraging software to create products that meet the needs of our end users. Our software infrastructure has also positioned us to be the partner of choice for technology companies looking to build new and innovative experiences around CGM data. Our list of real-time API partners continues to grow. as we're the only company that can provide partners real-time CGM data in an FDA-regulated solution. Our software capabilities are also laying the foundation for our success beyond the intensively managed population. For example, two partners focused on the use of CGM for weight management and metabolic health, Cygnos and Levels Health, have clinical trials underway that are leveraging our real-time API capabilities. We are excited to see the outcome from these trials as they provide a glimpse into the future for CGM technology that could serve as a much broader end market than today. The second quarter saw a number of strategic accomplishments in international markets that continue to strengthen our competitive position. The excitement continues to grow for our portfolio of CGM systems, G6, G7, and Dexcom 1, and we've made significant strides in both direct and distributor markets to broaden access to our technology. We launched Dexcom 1 in both Spain and the UK and have secured reimbursement for key segments of the population, opening large parts of these markets that previously lacked reimbursement for Dexcom CGM. We also announced a partnership with Roche to distribute Dexcom 1 in Italy. This relationship will allow us to leverage Roche's well-established commercial infrastructure to bring Dexcom 1 to a much larger Italian market. In Australia, the government recently committed to providing subsidized access to our G6 system for all people living with type 1 diabetes, which is a significant improvement in coverage and a great win for Australians deserving access to CGM technology. Our limited launch of G7 in the UK continues to be met with significant enthusiasm from our customers, who have provided consistently positive feedback on product size, ease of use, the shorter warm-up time, the app experience, and more. Many customers shared that they would often forget they were even wearing the G7 during their session and indicated they can't wait to continue wearing the product full-time in the future. The period has proven to be incredibly valuable, allowing us to assess the functionality of the sensor and app in a real-world setting, and providing feedback on ways to refine our support system to make the broader rollout as streamlined as possible. We are excited to get G7 in the hands of more customers and plan to expand our launch in the third quarter starting in the U.K. In the US, our 510K submission for G7 remains under review with the FDA. As part of this process, we are making a subtle change to the G7 software based on feedback from the FDA, slightly delaying our expected timelines for clearance and US launch. We expect FDA clearance and a limited launch later this year and a large commercial launch in the US in the first quarter of 2023. Encouragingly, our preliminary discussions with payers have progressed very well. They understand what this product will mean for our customers and people with diabetes broadly, giving us increasing confidence in the ability to ramp up commercial coverage quickly. Finally, we were very proud to showcase our expanded CGM portfolio at two of the largest diabetes conferences of the year, ATDD in Barcelona and ADA in New Orleans. These events provide us an opportunity to connect with thought leaders across the diabetes space. and we continue to see a clear consensus on real-time CGM being the standard of care in diabetes management and a growing appreciation of the health and economic benefits of extending the use of this technology beyond the intensively managed population, including the broader type 2 population and use in the hospital. Between these two events, there were dozens of presentations, abstracts, and posters highlighting success stories of CGM to date and what the future could hold for this technology. I started attending diabetes conferences almost 30 years ago. As I look back even two or three years ago, these types of conversations around the broad potential of CGM were nonexistent. Now it's become very apparent that CGM data will become the basis of where diabetes management and glucose control in the future is headed. We're very excited about the opportunities they have for Dexcom. And with that, I'll turn it over to Jeremy for a review of the second quarter financials.