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DexCom: Q1'22 Earnings Strong Enough To Maintain Valuation But Not To Increase It

May 01, 2022 5:31 AM ETDexCom, Inc. (DXCM)1 Comment


  • DexCom reported its Q1'22 earnings on Thursday - $629m of revenues, up 25% year-on-year, but net income of $41m, down 250 basis points.
  • DexCom is a high growth startup transitioning into a market incumbent in a lucrative market and management deserves huge praise for its achievements.
  • But in 2021 its share price of >$646 probably ran too far ahead of its top and bottom line earnings - it is not too surprising the share price fell.
  • At $408 presently, and a market cap of $40bn, the market clearly expects further growth, and soon.
  • That may be too difficult for Dexcom to deliver in the short term - or even in the next 2 years - but progress with type 2 diabetics and insulin pumps ought to keep investors very interested.
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Investment Thesis

DexCom (NASDAQ:DXCM) released its Q1'22 earnings on Thursday, reporting revenues of $629m for the quarter, reflecting year-on-year growth of 25%, and its 11th straight quarter of >$100m revenue growth overall.

The integrated continuous glucose

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This article was written by

Edmund Ingham profile picture

Edmund Ingham is a biotech consultant. He has been covering biotech, healthcare, and pharma for over 5 years, and has put together detailed reports of over 1,000 companies. He leads the investing group Haggerston BioHealth.

The group is for both novice and experienced biotech investors. It provides catalysts to look out for and buy and sell ratings. It also provides product sales and forecasts for all the Big Pharmas, forecasting, integrated financial statements, discounted cash flow analysis and market by market analysis. Learn more.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (1)

Thanks for the analysis. Given the significant drop-off since the Insulet rumor, do you feel there is now a compelling cushion to open a new position? Or do you feel the drop-off is deservedly so given the questions surrounding the potential deal (as the market seems to be suggesting)...?
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