Dexcom received marketing clearance from the FDA on Stelo, a new 15-day sensor designed for people with Type 2 diabetes who do not use insulin. This expands Dexcom's addressable market and represents a new growth avenue.

Dexcom is investing in scaling up capacity in Mesa, Arizona, and driving strategic initiatives of building out manufacturing facilities and/or equipment in Malaysia and Ireland. These investments are expected to support future growth and demand.

The company added approximately 600,000 users to its worldwide customer base in 2023, driving increased sales volume of its disposable sensors.

Management concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of March 31, 2024. This indicates sound internal controls and reliable financial reporting.

Dexcom and Abbott continue to be engaged in multiple patent infringement lawsuits across various jurisdictions. These legal battles require ongoing management attention and could potentially impact future operating results.

Management continues to believe that focused investments in research and development are critical to the company's future growth and competitive position. R&D expenses increased primarily due to higher headcount, supplies, and clinical trial costs.

Dexcom is involved in numerous ongoing patent infringement lawsuits with Abbott, the outcome of which is uncertain and could have a material adverse effect on the company's business, financial condition, or results of operations.

As Dexcom expands its manufacturing internationally and its business continues to increase in international markets, it will be exposed to additional foreign currency exchange risk related to its international operations.

Dexcom's cash and investments are primarily in U.S. dollar-denominated, investment grade, highly liquid obligations. Certain of these investments are subject to general credit, liquidity, and other market risks, which could affect the value and liquidity of investments.

Disposable sensor and other revenue comprised approximately 93% of total revenue and Reusable Hardware revenue comprised approximately 7% of total revenue for the three months ended March 31, 2024. Disposable sensor and other revenue comprised approximately 88% of total revenue and Reusable Hardware revenue comprised approximately 12% of total revenue for the three months ended March 31, 2023.

Selling, general and administrative expense increased primarily due to $16.0 million in compensation-related costs most notably due to higher headcount, $5.9 million of travel related expenses, and $2.5 million related to the divestiture of certain non-CGM assets, partially offset by $9.6 million in lower advertising and marketing costs.

Research and development expense increased primarily due to $6.8 million in compensation-related costs most notably due to higher headcount, $5.0 million in supplies and other support costs, and $3.2 million in clinical trials costs.

As of March 31, 2024, Dexcom had $2.90 billion in cash, cash equivalents, and short-term marketable securities, indicating a strong liquidity position. The company intends to use these funds for general corporate purposes, capital expenditures, and potential acquisitions.

In the first quarter of 2024, Dexcom issued 7.9 million treasury shares to settle a portion of the 2023 Warrants, impacting the share count and potentially diluting existing shareholders.

The provided 10-Q filing does not contain specific information regarding ESG initiatives or progress. Further research is required to assess Dexcom's ESG performance.

Dexcom typically experiences seasonality, with lower sales in the first quarter of each year compared to the immediately preceding fourth quarter. This seasonal sales pattern relates to U.S. annual insurance deductible resets and unfunded flexible spending accounts.