DexCom Wraps Up Solid Full-Year Performance; No Change to Our Fair Value Estimate

Dexcom posted full-year performance that matched up closely with our estimates, and we’re leaving our fair value estimate unchanged. Reported 2021 revenue growth of 27% hit our projection on the nose. However, gross margin clocked in slightly above our expectations, which was offset by R&D spending that slightly exceeded our projections. Our minor adjustments were not material enough to shift our fair value estimate. Though Dexcom has yet to sport an economic moat, we think there is potential as the firm continues to win over both type 1 and type 2 diabetes patients. Nonetheless, we continue to think that both Abbott and Medtronic are nipping at Dexcom’s heels with their own technological improvements.