DexCom, Inc. stock research
FY2024 Q4
DexCom (DXCM) Gross Margin — Quarter Ended Dec 31, 2024
In the current quarter, revenue increased compared to both the prior quarter and the same quarter last year, and gross profit also increased sequentially but was slightly lower than the year-ago period. However, cost of revenue rose at a higher rate than revenue, resulting in a gross margin that weakened from both the prior quarter and the year-ago quarter.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
In the current quarter, revenue increased compared to both the prior quarter and the same quarter last year, and gross profit also increased sequentially but was slightly lower than the year-ago period. However, cost of revenue rose at a higher rate than revenue, resulting in a gross margin that weakened from both the prior quarter and the year-ago quarter.
- The primary observable driver of the gross margin change was the relative increase in cost of revenue compared to revenue. While revenue grew, the cost of revenue expanded more, causing the margin to contract.
- Sequentially, revenue and gross profit were higher, while gross margin was lower. Year-over-year, revenue was higher, gross profit was slightly lower, and gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
58.9%
Gross profit
$655.8M
Revenue
$1.1B
Cost of revenue
$457.7M
Quarter-over-quarter change
-0.8 pts
Year-over-year change
-4.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2024 | $921.0M | $561.9M | $359.1M | 61.0% |
| Jun 30, 2024 | $1.0B | $626.7M | $377.6M | 62.4% |
| Sep 30, 2024 | $994.2M | $593.8M | $400.4M | 59.7% |
| Dec 31, 2024 | $1.1B | $655.8M | $457.7M | 58.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-0.8 pts
Year-over-year change
Dec 31, 2023
-4.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of the gross margin change was the relative increase in cost of revenue compared to revenue. While revenue grew, the cost of revenue expanded more, causing the margin to contract.
Sequentially, revenue and gross profit were higher, while gross margin was lower. Year-over-year, revenue was higher, gross profit was slightly lower, and gross margin was lower.
Monitor the trend of cost of revenue relative to revenue, as it has been the key factor in margin changes.