DexCom, Inc.

Ladies and gentlemen, welcome to the Dexcom first quarter 2023 earnings release conference call. My name is Abby 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. And during the question and answer session, if you would like to ask a question, please press star one on your touchtone phone. As a reminder, today's conference is being recorded And I will now turn the call over to Sean Christiansen, Vice President of Finance and Investor Relations. Mr. Christiansen, you may begin.

Thank you, Abby, and welcome to Dexcom's first quarter 2023 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 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, 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 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 our tables in our earnings release and the slides accompanying our first 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 another excellent quarter for Dexcom with first quarter organic revenue growth of 19% compared to the first quarter of 2022. Momentum for global CGM adoption remains very high. and we continue to see a growing appreciation for the differentiated experience that Dexcom provides. It has been an exciting start to 2023. Our teams advanced some of our most important strategic initiatives in the first quarter that will continue to build on our foundation for growth in the years ahead. There is growing momentum behind the rollout of our G7 system, as we initiated our full launch of G7 in the U.S. This launch represents years of hard work to bring to market a product based on feedback from our customers that meets their specific needs. G7 is the most accurate CGM on the market. It is simple to use and is supported by the most covered CGM brand. We expect its differentiated feature set will add to our leading customer satisfaction metrics. We were thrilled with the opportunity to announce this launch on the biggest stage with our second ever Super Bowl commercial. Over 100 million people were watching the game when our commercial aired, and the customer and clinician outreach that followed was incredibly encouraging, as we expected it would be. The ad generated three times as many impressions for Dexcom as our 2021 Super Bowl commercial, exceeding our initial expectations on engagement and awareness. We also heard from members of the diabetes community who shared their Dexcom magic moments and pride in feeling represented on a platform of this size. Awareness remains a critical element to driving broader access and adoption for CGM, and we designed this campaign to demonstrate the life-changing potential of our system in a G7 product that is incredibly simple to use. Millions of people with diabetes do not use CGM, and this provided us an opportunity to both connect with them and advocate on their behalf. While we are still early in our US launch of G7, we have been very encouraged by the initial response. We have seen a steady ramp of new users and the initial feedback from both customers and clinicians has been consistently great. We have also seen this product attracting new prescribers altogether. Already in the early weeks of this rollout, nearly 1,000 healthcare providers have prescribed G7 who previously were not prescribing Dexcom CGM. Perhaps most encouraging is the progress we have made in building reimbursement for G7 in only a short period of time. Medicare coverage was established for G7 only days after our Super Bowl commercial, which coincided well with the timing of our launch and came in about a month earlier than anticipated. We also finalized our commercial DME contracts relatively quickly, and G7 commercial DME coverage is now already on par with G6 levels. Commercial pharmacy coverage has also progressed rapidly. In our reimbursement discussions, payers are clearly recognizing the value proposition that exists with Dexcom G7. As a result, we already have more commercial pharmacy coverage established for G7 today than our competitor does for their sensor platforms. Payers continue to value our premium feature set, leading customer engagement metrics, best-in-class performance, and proven outcomes backed by robust clinical evidence. Overall, we have advanced coverage more quickly than anticipated, and we expect G7 to be covered by all major PBMs by the end of the second quarter. These coverage decisions for G7 also position us well as our industry takes a significant step forward in terms of access for CGM. In early March, CMS finalized their proposal to expand access to include people with type 2 diabetes using basal insulin only, as well as certain non-insulin-using individuals that experience hypoglycemia. With coverage officially kicking in last week, this decision represented the largest single expansion of access to CGM in our industry's history. As a reminder, we sized the basal-only type 2 population alone at around 3 million people in the U.S., with around half being of Medicare age. We are incredibly excited to start serving this population more broadly going forward, as we see a significant opportunity to help these individuals live healthier lives. Our mobile trial demonstrated meaningful improvements in time and range, A1C levels, and hypoglycemic advance among this population wearing Dexcom sensors, as sensor engagement proved to produce behavior changes within this cohort that supported greater glycemic control. We are in a great position to compete as this market develops, as accuracy, performance, and customer engagement will continue to be the defining features of delivering outcomes. Customers and clinicians have historically indicated a preference for a differentiated product where reimbursement exists, and we expect this dynamic to endure as access continues to expand. Along those lines, we will continue to leverage our mobile data as well as the updated ADA standards of care to build broader coverage. We are in active discussions with private payers in the U.S. to establish basal reimbursement and will similarly advocate for broader coverage in international markets. Our international G7 rollout also continues to go well, with good initial uptake and high customer satisfaction rates. The majority of our international G7 customers continue to be new to Dexcom altogether, suggesting the new form factor and feature set is attracting both people new to CGM as well as those using competitive systems. We view this as a very positive sign as we broaden our rollout in the coming months. In the second quarter, we will be launching G7 in eight new international markets as part of our strategic effort to get this product to as many people as possible. From a capacity perspective, we remain in great shape to support this broader rollout. We are ramping up production quickly and have plenty of G7 inventory on hand to support our growth ambitions. Additionally, we expect our Malaysia plant to start producing commercial product around mid-year, which will further support our G7 scale-up. Finally, we look forward to seeing many of you in June at the American Diabetes Association's 83rd Annual Scientific Sessions in our hometown of San Diego, California. We are always excited to connect with thought leaders across the industry at this event as we collectively work to map out the future of Dexcom CGM technology in diabetes care and beyond. In conjunction with the conference, we are planning an investor event where we will provide our latest vision around the future of Dexcom and share incremental detail on many of our key strategic initiatives. We hope to see you there. With that, I will turn it over to Jeremy for a review of the first quarter financials. Jeremy?