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Shares of medical device maker Dexcom fell 40% in extended trading after the company slashed its yearly revenue projection on Thursday, citing a reorganization of its sales force, fewer customers, and reduced revenue per customer as reasons.
After previously projecting $4.20–4.35 billion in sales for 2024, the business now anticipates $4–4.05 billion. The average expectation among analysts, according to LSEG data, was $4.33 billion.
Dexcom manufactures CGMs, which are wearable gadgets that measure glucose levels continuously throughout the day instead of using fingerstick blood testing. Competition has been coming from companies like Abbott and Medtronic.
During a conference call with investors following the company’s earnings, CEO Kevin Sayer stated that revenue from Dexcom’s US clients fell more quickly than anticipated. This was due to customers taking advantage of rebates for the new CGM, G7.
The business also predicted lower-than-expected sales for the third quarter, coming in at $975 million to $1 billion.
Its $1 billion in sales for the second quarter was lower than the $1.03 billion predicted by analysts.
On Thursday, the Anglo-Swedish pharmaceutical company AstraZeneca increased its sales and profit projections for the entire year.
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