DexCom Inc. (NASDAQ:DXCM)

An analysis of the financial data reveals the following key trends and patterns across the periods presented:

Revenue and Cost Structure

Revenue is consistently represented as 100% across all years, serving as the baseline for proportional analysis. The cost of sales exhibits fluctuations, initially increasing from -35.64% to -36.89% between 2018 and 2019, then decreasing to -31.37% by 2021, before increasing again to -35.28% in 2022. This indicates variability in direct costs relative to revenue during the period.

Gross Profit

Gross profit as a percentage of revenue ranges from a low of 63.11% in 2019 to a peak of 68.63% in 2021, indicating a general strength in the company's core profitability, although it contracts to 64.72% in 2022, suggesting some pressure on margins at the gross profit level in that year.

Research and Development Expenses

R&D expenses remain significant, ranging between -16.64% and -21.12% of revenue. Notably, there is a dip in 2022 to -16.64%, which may suggest improved cost efficiency or a strategic reduction in expenditure in that area. The presence of a collaborative R&D fee recorded at -21.1% in 2018 and -3.56% in 2021, with absence in other years, indicates episodic collaborative investment efforts impacting overall R&D costs.

Amortization of Intangible Assets

This expense is minor but gradually increases over the last three recorded years, from -0.13% to -0.26%, reflecting growing amortization charges relative to revenue, potentially due to acquisitions or intangible asset capitalization.

Selling, General and Administrative Expenses (SG&A)

SG&A expenses decline from -41.95% in 2018 to -32.09% in 2020, indicating improved control or cost optimization, but then rise again to -34.37% in 2022, reflecting a partial reversal or increased expenses in these functions.

Operating Expenses and Operating Income

Overall operating expenses as a percentage of revenue decreased sharply from -82.42% in 2018 to around -50.90% in 2020, then fluctuated without a clear directional trend, ending at -51.27% in 2022. Operating income demonstrated significant improvement, moving from a loss of -18.06% in 2018 to positive margins above 10% in subsequent years, peaking at 15.54% in 2020, indicating improved operational profitability throughout the period.

Interest and Other Financial Items

Interest expense remained a notable cost, fluctuating between -4.40% and -0.64% of revenue, with a marked decline to -0.64% in 2022. Loss on extinguishment of debt, recorded only in 2020 and 2021, was minimal but present, suggesting occasional refinancing activities. Income (loss) from equity investments varied, with a significant positive impact in 2018, a slight negative in 2019, and negligible in other years. Net interest and other income (expense) tended near zero, with minor positive or negative variances.

Income Before Taxes and Net Income

Income before income taxes transitioned from a loss of -12.26% in 2018 to positive margins over 7% in most years, reaching a high of 13.43% in 2022. Income tax expense fluctuated notably, with a large tax benefit of 13.94% in 2020 contrasting against typical minor tax expenses in other years. Net income mirrored this pattern, indicating a loss in 2018, profitability in subsequent years with a peak net income margin of 25.62% in 2020, followed by some decline but sustaining positive net margins above 6% through 2022.