We’re encouraged by the progress we’ve made in securing reimbursement for Dexcom CGM globally. In the U.S., we continue to see improved access for Medicare beneficiaries, and we’ve made significant strides in securing reimbursement for our G7 system in key international markets. Looking ahead to 2025, we are excited about the potential for the G7 to further expand our addressable market and drive continued growth. We are also investing in our manufacturing capabilities to support the anticipated demand for the G7 and future product launches. Our investments in R&D are focused on delivering innovative solutions that can improve the lives of people with diabetes. We recently announced the launch of our Dexcom Partner Program, which aims to integrate our CGM technology with other digital health solutions to provide a more holistic approach to diabetes management. We believe that partnerships like these will help us reach even more people in need of our technology. In conclusion, we are proud of the progress we’ve made in 2024 and excited about the opportunities that lie ahead in 2025. We remain committed to our mission of empowering people to take control of their diabetes and live healthier, more fulfilling lives. With that, I’ll turn it over to Jereme to discuss our financial performance in more detail. Jereme Sylvain — Chief Financial Officer Thank you, Kevin. Today, we reported fourth quarter total revenue of $1.6 billion, representing 8% organic growth compared to the fourth quarter of 2023. For the full year 2024, total revenue was $5.9 billion, reflecting 12% organic growth. Our gross margin for the fourth quarter was 65%, and our operating margin was 17%. We ended the year with $2.3 billion in cash, cash equivalents, and marketable securities. Looking ahead to 2025, we expect total revenue to be in the range of $6.8 billion to $7.2 billion, representing 15% to 21% organic growth. We anticipate gross margin to be in the range of 63% to 65%, and operating margin to be in the range of 15% to 17%. We are confident in our ability to execute on our strategic initiatives and drive continued growth in the coming year. Thank you for your continued support, and we look forward to updating you on our progress in the future. With that, we will now open the call up for questions. Abby, please go ahead. Looking ahead to 2025, we anticipate continued growth in our U.S. business as we expand coverage for Dexcom CGM to more people with type 2 diabetes who are not on insulin. We are also excited about the potential for Stelo to reach even more customers through product iteration, awareness campaigns, and new distribution channels, including our upcoming launch on the Amazon storefront.
Internationally, we are pleased with the progress we have made in securing coverage for our Dexcom ONE Plus system in markets like France, where we are seeing strong demand. We believe that as interest and reimbursement for CGM steadily build in other markets, we are well-positioned to participate and lead growth in this category.
Overall, we are optimistic about the opportunities that lie ahead in 2025 and beyond. We are confident in our ability to continue pioneering innovation in the diabetes management space and to make a meaningful impact on the lives of people with diabetes worldwide. Thank you for your continued support and partnership as we work towards our shared goal of empowering individuals to take control of their health. This is a positive sign that our sales force is becoming more effective and efficient in driving growth. In terms of the DME channel, as Jereme mentioned, we have seen stabilization in our share. We are working closely with our DME partners to address any issues and continue to drive growth in this channel. Overall, we are optimistic about the progress we have made and are confident in our ability to address these challenges and drive growth in 2025. Thank you for the question. But as we progress through the year, we should see continued improvement in gross margins as we optimize our manufacturing processes and drive efficiencies. Overall, I would say that the cadence of the year should show steady progress and improvement, with the second half of the year looking stronger than the first half. We are confident in our ability to deliver on our growth targets and drive value for our shareholders. Thank you for the question. In this transcript, the company is discussing their performance and outlook for the year, including improvements in margins and volume growth. They mention the impact of coverage for non-insulin using type 2 patients on pricing and revenue growth. The CFO clarifies that the unit economics are similar across different patient types, but there may be differences in retention and utilization rates. The CEO adds that coverage for type 2 patients has not impacted gross margin or operating margin. They also provide updates on the FDA review process for their G7 15-day product and express confidence in a second half launch. The COO explains that they are focusing on securing coverage and ensuring a smooth user experience before the product launch. But I was hoping you could provide a little more color on the competitive environment for CGM in type 2 diabetes. Obviously, Dexcom has been making some strides in this area, but how do you see the landscape evolving and what do you see as Senseonics’ competitive advantages in this space? Thank you. Kevin Ronald Sayer — Chairman, President, and Chief Executive Officer Yeah. Thanks for the question. So, I’ll start and then I’ll let Jake and Jereme add on. I think the competitive environment in type 2 is going to be different than it is in type 1. In type 1, you have a lot of pretty good competitors with good products. In type 2, you’re really looking at the noninsulin using population. And as we’ve talked about, that is a population that is largely ignored by the current CGM players. They are focused on the intensive insulin users. For us, this is a big opportunity because this is a big population. It’s about 30 million people in the United States alone. And we believe the benefits of CGM can be substantial in this population. And so, we’re really forging our own path here. We’re not looking to displace the current players in type 1. We’re looking to create a new market in type 2. And so, we think that’s a big advantage for us. The other advantage we have is our product is truly differentiated. We have a long-wear sensor that is much easier to use for this population. They don’t have to change it every 7 or 14 days. They can wear it for up to 90 days. And so, we think that’s a big advantage. And then, of course, the cost advantage. Our product is much more cost-effective than the current CGM options out there. So, we think we have a strong competitive advantage in this space. And we’re really excited about the opportunity to bring CGM to this underserved population. Jake Leach — Executive Vice President, Chief Operating Officer I’ll add a couple of things. I think Kevin’s spot on. The noninsulin type 2 population is a population where they are not being monitored well today. And so, there’s a real need for a product like ours that can provide continuous glucose monitoring in a much simpler and more cost-effective way. So, we see this as a huge opportunity for us. And as we mentioned earlier, we are actively working to expand coverage for this population through PBMs and other payers. So, we’re really excited about the potential for growth in this area. Jereme M. Sylvain — Executive Vice President, Chief Financial Officer And just to add on, I think not only the advantages that we have with our product, but we also have a lot of experience in working with payers and getting coverage for our products. We’ve been successful in expanding coverage for our 90-day product in the type 1 population, and we’re confident that we can do the same in the type 2 population. So, we see this as a significant growth opportunity for the company. We’re also working on the integration with Amazon, which is expected to come online soon. We’re excited about the new capabilities and features that we’re developing for Stelo, including the ability for users to access their historic data within the app. We’re also working closely with Oura on a deeper integration to access more intrinsic data from their platform. These integrations are expected to roll out in the first half of this year. Overall, we’re confident in the continued growth and success of Stelo, and we’re excited to see the impact it will have on our overall business. Kevin Ronald Sayer — Chairman, President, and Chief Executive Officer
Yeah, great question. So, yes, we did see a nice uptick in subscription activity during the holiday season and New Year’s resolution season. It’s a time when people are really focused on their health and wellness, so it was a great opportunity for us to showcase the benefits of Stelo. As for keeping users engaged after they’ve gone through their first couple of sensors, we are constantly looking at ways to enhance the user experience and keep them engaged. AI plays a big role in this, as it allows us to personalize the experience for each user based on their data and behavior patterns.
We are always looking for ways to make the user experience more seamless and enjoyable, and AI helps us do that by providing personalized insights and recommendations. Overall, we are feeling really good about the reception of Stelo and our ability to keep users engaged over the long term. We are excited to continue to innovate and improve the product to meet the needs of our users. We are also exploring the possibility of incorporating multi-analyte capabilities into the G8 sensor, which would provide additional health insights beyond glucose monitoring. In terms of discussions with payers, we are always looking to demonstrate the value of our technology and the benefits it can provide to users. If we are able to enhance accuracy and offer additional health insights with the G8 sensor, we believe there may be opportunities to justify a premium price for the device. We will continue to engage with payers and stakeholders to explore these possibilities as we move forward with the development of the G8 sensor. Can you provide any more color on the progress of the 15-day sensor and when we might expect to see it launched? Thank you. Kevin Ronald Sayer — Chairman, President, and Chief Executive Officer
I would just add that we are constantly monitoring our market share across all segments of the diabetes population, and we are pleased with the growth and momentum we have seen. With the introduction of Stelo and our continued focus on expanding access and coverage, we expect to see further gains in market share as we move towards 2025. Our goal is to continue to innovate and provide the best solutions for people with diabetes, and we believe that will translate into increased market share across all segments. Thank you for reading the transcript of the Dexcom earnings call. We hope you found it informative. If you have any further questions or need clarification on any points discussed during the call, please feel free to reach out to us. Thank you for your continued support and we look forward to a successful 2025.