DexCom, Inc.

Thank you for standing by. My name is Abby and I will be your conference operator today. At this time, I would like to welcome everyone to the Dexcom Inc. fourth quarter 2024 earnings release conference call. All lines have been placed in mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Sean Christensen, VP of Finance and Investor Relations. Please go ahead.

Thank you, Abby, and welcome to Dexcom's fourth quarter and fiscal year 2024 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 each so we can provide an opportunity for everyone participating today. Please note that there are also slides available related to our fourth quarter and fiscal year 2024 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 on 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 on this call 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 call 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. Unless otherwise noted, all references to financial measures on this call are presented on a non-GAAP basis. This non-GAAP 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 fiscal year 2024 earnings call 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 fourth quarter organic revenue growth of 8% compared to the fourth quarter of 2023. This brought our full year organic revenue growth to 12%, which was in line with our latest 2024 guidance. 2024 was a year of strategic investment for Dexcom. And through these investments, we believe we enter 2025 in a stronger position to capitalize on our next wave of growth. To recap, over the past year, We broadened our commercial reach, launched new products that define the category, built greater scale, and advanced CGM reimbursement globally. Through this work, we continue to lead the biosensing market and have positioned ourselves to impact millions of more lives around the world. We ended 2024 with more than 2.8 million customers globally on our G-Series and D-Series products as demand for Dexcom CGM remains high. This represents an increase of approximately 25% to our global active customer base compared to 2023. This increase in customers was driven by momentum both in the category and through our improving execution in the field, which we're very excited about. This was evident in the U.S., where our Salesforce productivity metrics showed improvement in the fourth quarter. We have now grown our U.S. prescriber base by more than 50,000 over the past year. Through these new relationships, we've successfully broadened our presence within primary care and made early inroads with emerging CGM care points like maternal fetal medicine. Importantly, across this growing physician base, we are also seeing prescribing depth improve. It often takes only a single Dexcom experience for a physician to recognize the potential to deliver better care with Dexcom CGM. As these new physicians now expand their use of Dexcom CGM across their practices, we've seen the impact to our new patient performance build from the strong third quarter finish that we described on our last call. This helped us achieve another quarter of record new customer starts. As discussed earlier in the year, we knew that the opportunity ahead was tremendous when expanding the U.S. sales force. With this focus on execution, we'll look to build upon our momentum in 2025 as we further cultivate these relationships and connect with the next leg of CGM prescribers. Our team is also helping many of these physicians navigate the evolving coverage landscape within diabetes care. In the past two years alone, reimbursement for CGM has significantly expanded as we've helped establish our clinical value well beyond insulin management. As many of you remember, a key milestone on this journey was the publication of our mobile randomized control trial, which demonstrated significantly improved outcomes beyond intensive insulin use. This data prompted clinical societies to update their standards of care and quickly led to widespread reimbursement for anyone on basal insulin. We are now seeing similar evidence build around the benefits of CGM regardless of where someone is in their diabetes journey. In fact, some data has shown even greater health outcomes For those not on insulin, the CGM is providing them real-time feedback on lifestyle decisions for the first time. There is also a growing economic argument for incorporating CGM earlier into care plans, as this has been shown to reduce hospitalizations, specialty visits, and utilization of healthcare resources. As this comprehensive body of evidence continues to grow, payers have started to act. We recently shared that as of January 2025, two of the three largest PBMs now cover Dexcom CGM for anybody with diabetes. With these national formularies leading the way by the end of the year, Dexcom will have coverage for more than 5 million people with type 2 diabetes who are not on insulin in the U.S. For context, this is even larger than the type 2 basal reimbursement that came less than two years ago, and yet this only represents around 20% of the 25 million type 2 non-insulin lives with diabetes in the U.S. In 2025, we will be actively pursuing coverage for the remaining 20 million lives. To strengthen our case even more, we recently announced that we initiated a randomized control trial for people with type 2 diabetes who are not on insulin and expect to complete enrollment soon. As we advance this important work to further expand coverage in the U.S., we have already significantly broadened access to Dexcom technology with the launch of our over-the-counter product, Stello. In line with our mission to empower people to take control of health, this product has allowed us to reach many more people. As we said at the JPMorgan conference last month, more than 140,000 people wore Stello in the first four months of the launch, with demand spanning across the type 2 diabetes, prediabetes, and health and wellness populations. Importantly, regardless of where someone is in their metabolic health journey, we're quickly enhancing Stello to make it more personalized and drive greater engagement across our platform. Key to this will be Dexcom's proprietary generative AI technology, which was recently launched in its initial feature in Stello and will become a key source of personalized content as we expand its functionality over time. We're also building on the Stello experience through targeted partnerships that will consolidate multiple biomarkers into our platform. This includes our recently announced relationship with Aura, which will integrate Dexcom glucose data with vital sign, sleep, stress, heart health, and activity data from the Aura Ring to provide an even broader picture of health for our mutual customers. Overall, we've been thrilled by customer demand for Stella in these initial months, and we're excited to build on this momentum as we enter 2025. We see an opportunity to further elevate the Stella brand this year through product iteration, broad awareness campaigns, and new distribution channels. This will include Stella's upcoming introduction on the Amazon storefront, which we expect to be live in the coming weeks. Finally, we ended the year on a high note across our international business. We have spoken time and time again about the importance of building greater access, and our most recent international coverage wins have again served as a nice catalyst for our business. Most notably, early in the fourth quarter, we finalized Basel coverage for our Dexcom One Plus system in France and saw strong demand in the first quarter of its implementation. France is another great example of our ability to leverage our product portfolio to match the needs of each customer and reimbursement system. It has also proven to be on the forefront of Type II CGM coverage as one of the only two international markets with broad basal coverage today. In fact, across many of our markets, even type 2 intensive coverage is in much earlier stages, though we're seeing interest and reimbursements steadily build. As it does, we believe we're better positioned than at any time in our company's history to participate and lead growth in this category. As we look forward to 2025, there is a lot for us to be excited about. We remain in a unique position to help pioneer a fast-growing industry that has significant potential to broaden its impact. With that, I'll turn it over to Jeremy.