Stelo Product Launch
Q: How confident are you about Stelo's launch and its potential?
A: The company expects Stelo to add approximately 100 basis points to growth in '24, equating to about $40 million in six months. " While emphasizing that this year's launch is about learning, they are confident that Stelo can become a very large part of the business over time. " Investments in Stelo will impact operating margins, but they are committed to expanding margins while investing carefully. "

Competition and Competitive Moats
Q: How defensible is DexCom's share against new competition?
A: DexCom believes its competitive moats are strong due to unparalleled sensor performance, superior connectivity features—like connecting up to three devices simultaneously—and significant investments in fully automated factories. " They continue to innovate and invest to stay ahead, confident in their position but never comfortable. "

Operating Margins and 15-day Sensor
Q: What's the timing for 15-day sensor approval and impact on margins?
A: Clinical testing is ongoing for fundamental science changes to achieve a reliable 15-day sensor, with plans to run a clinical study and file for approval. " The 15-day sensor offers significant opportunities to improve gross and operating margins and grow the business profitably in areas that may have been challenging with the 10-day product. "

International Growth and Challenges
Q: How is international growth performing compared to the U.S.?
A: International growth was affected by transitioning the non-CGM business and going direct in Japan, leading to lower growth in Q4. " Core markets like the UK and Germany continue to grow consistently. " They expect the international business to grow faster than the U.S. over the coming years and eventually make up a larger percentage of revenue. "

Gross Margin Expectations
Q: When will G7 start improving gross margins?
A: Currently, G7 costs more to produce than G6, but they expect this to flip during the year as the user base transitions and cost efficiencies are realized. " By exiting 2024 and entering 2025, G7 should be lower in cost than G6, positively impacting gross margins. "

Sales Force Expansion
Q: What's the plan for expanding the sales force in primary care?
A: The company is expanding its sales force to increase coverage in primary care, hiring over the first quarter with the full impact from Q2 onward. " Investments are being made carefully to continue improving profitability while expanding, with new hires expected to contribute to growth in Basal coverage and future products like Stelo. "

Non-insulin User Market Potential
Q: How will Stelo progress towards reimbursement in the non-insulin market?
A: Stelo will launch as a cash pay product, accumulating data to build a case for traditional reimbursement over time. " The goal is to demonstrate better outcomes and cost savings, eventually seeking coverage from CMS and other payers. "

Type 2 Hypo Non-insulin Penetration
Q: Why is penetration of the Type 2 hypo non-insulin indication slow?
A: Penetration is slower due to the need for increased awareness among physicians and patients about qualification criteria and documentation requirements. " The company is focused on educating the community, recognizing it as a significant opportunity that will contribute meaningfully over time. "

DexCom ONE Progress
Q: What's the status of DexCom ONE in international markets?
A: DexCom ONE accounted for about a quarter of new patient starts internationally in 2023, slightly below the expected one-third. " With the launch on the G7 form factor in multiple countries, they expect it to be a bigger contributor in 2024. "

Basal Adoption Rates
Q: How is Basal insulin CGM adoption impacting growth?
A: Basal insulin adoption is contributing to growth, with penetration rates around 9% to 10% per annum in the back half of 2023. " For 2024, they anticipate about an 8% penetration rate, which is ahead of long-range plans and presents opportunities for outperformance. "