DexCom reports 62% increase in product revenue for fourth quarter 2013

DexCom, Inc. (Nasdaq: DXCM) today reported its audited financial results as of and for the quarter and fiscal year ended December 31, 2013.

For the full-year ended December 31, 2013, product revenue grew to $157.1 million, an increase of 69% from the $93.0 million in product revenue reported for 2012, and total revenue grew to $160.0 million, an increase of 60% from 2012. Product revenue totaled $51.3 million for the fourth quarter of 2013, an increase of approximately 62% from the $31.7 million in product revenue reported for the comparable period in 2012. Total fourth quarter 2013 revenue, which included development grant and other revenue, grew to $51.7 million, an increase of 55% from the comparable period in 2012. Product gross profit totaled $34.1 million and $99.0 million for the three and twelve months ended December 31, 2013, compared to a product gross profit of $17.2 million and $44.7 million for the three and twelve months ended December 31, 2012. The Company reported a net loss of $2.6 million, or $0.04 per share, and $29.8 million, or $0.42 per share, for the three and twelve months ended December 31, 2013, compared to a net loss of $8.5 million, or $0.12 per share, and $54.5 million, or $0.79 per share, for the three and twelve months ended December 31, 2012. The net loss for 2013 included $35.0 million in non-cash expenses, comprised primarily of share-based compensation, depreciation, and amortization.

Total cost of sales for the twelve months ended December 31, 2013 totaled $59.9 million compared to $53.3 million for 2012. The increase was primarily due to additional product sales. Research and development expense totaled $44.8 million in 2013 compared to $38.3 million in 2012. Changes in research and development expense included additional payroll costs and share-based compensation. Selling, general and administrative expense totaled $84.2 million in 2013 compared to $64.0 million in 2012, with change primarily due to additional selling and information technology costs, which includes share-based compensation. As of December 31, 2013, the Company had $54.6 million in cash, cash equivalents and marketable securities.