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  "docSlug": "34401c2968d1",
  "documentTitle": "Dexcom, Inc. (DXCM)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-03-21 00:00:00",
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  "pageNumber": 65,
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  "density": "overcrowded",
  "nDataPoints": 28,
  "notes": "The slide uses a red dashed box to highlight the divergence in the second chart.",
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      "kind": "callout",
      "text": "As the G6 as released in June 2018, Q2 reflected only one months' worth of G6-related sales at most. Would this have been sufficient to drive the accelerated growth? If so, why didn't transmitter sales grow at a similar rate? New G6 users would have had to purchase new transmitters in addition to sensors...",
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      "kind": "callout",
      "text": "As the G6 as released in June 2018, Q2 reflected only one months' worth of G6-related sales at most. Would this have been sufficient to drive the accelerated growth? If so, why didn't transmitter sales grow at a similar rate?",
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      "kind": "chart",
      "text": "Revenue Growth, YoY",
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      "kind": "chart",
      "text": "Sensor Revenue Growth vs. Transmitter Revenue Growth",
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      "kind": "paragraph",
      "text": "Management and the sell side cite accelerated sales growth as evidence that Dexcom continues to grow its patient base. However, due to unusual trends in Dexcom's recent product-level growth, we question whether this acceleration can in fact be attributed to expanded patient penetration. Notably, in Q2 FY17, Dexcom began breaking out product-level sales between sensors, transmitters and receivers. Since this time, growth in sensor sales and transmitter sales have tracked each other closely. Yet, in Q2 FY18 – the same period in which the G6 was launched (June) – these numbers suddenly diverged materially. Why could this be?",
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      "kind": "source-note",
      "text": "Source: Dexcom SEC Filings",
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      "kind": "title",
      "text": "Recent Sales Growth Gives Misleading Appearance Of Underlying Patient Growth",
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