Income from equity investments

[Table](#i6fa56528b8724eb3888e814d9e0a196b_7) [of](#i6fa56528b8724eb3888e814d9e0a196b_7) [Contents](#i6fa56528b8724eb3888e814d9e0a196b_7)

|  |  |  |
| --- | --- | --- |
|  |  |  |
| DexCom, Inc. |
| Consolidated Statements of Operations |
| (Unaudited) |



|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three Months EndedSeptember 30, |  | Nine Months EndedSeptember 30, |
|  | 2022 |  | 2021 |  | 2022 |  | 2021 |
| (In millions, except per share data) |  |  | (As Adjusted)\* |  |  |  | (As Adjusted)\* |
| Revenue | $ | 769.6  |  |  | $ | 650.2  |  |  | $ | 2,094.6  |  |  | $ | 1,750.3  |  |
| Cost of sales | 275.4  |  |  | 203.3  |  |  | 752.8  |  |  | 542.4  |  |
| Gross profit | 494.2  |  |  | 446.9  |  |  | 1,341.8  |  |  | 1,207.9  |  |
| Operating expenses: |  |  |  |  |  |  |  |
| Research and development | 110.3  |  |  | 128.8  |  |  | 367.9  |  |  | 367.3  |  |
|  |  |  |  |  |  |  |  |
| Amortization of intangible assets | 1.8  |  |  | 1.3  |  |  | 5.7  |  |  | 2.3  |  |
| Selling, general and administrative | 234.6  |  |  | 198.5  |  |  | 702.4  |  |  | 573.1  |  |
| Total operating expenses | 346.7  |  |  | 328.6  |  |  | 1,076.0  |  |  | 942.7  |  |
| Operating income | 147.5  |  |  | 118.3  |  |  | 265.8  |  |  | 265.2  |  |
| Interest expense | (4.6) |  |  | (4.6) |  |  | (13.9) |  |  | (14.1) |  |
|  |  |  |  |  |  |  |  |
| Income from equity investments | —  |  |  | —  |  |  | 0.2  |  |  | —  |  |
| Interest and other income (expense), net | 3.3  |  |  | (1.7) |  |  | 5.5  |  |  | (0.7) |  |
| Income before income taxes | 146.2  |  |  | 112.0  |  |  | 257.6  |  |  | 250.4  |  |
| Income tax expense | 45.0  |  |  | 24.7  |  |  | 8.2  |  |  | 28.2  |  |
| Net income | $ | 101.2  |  |  | $ | 87.3  |  |  | $ | 249.4  |  |  | $ | 222.2  |  |
|  |  |  |  |  |  |  |  |
| Basic net income per share | $ | 0.26  |  |  | $ | 0.23  |  |  | $ | 0.64  |  |  | $ | 0.57  |  |
| Shares used to compute basic net income per share | 389.8  |  |  | 387.4  |  |  | 390.4  |  |  | 386.5  |  |
| Diluted net income per share | $ | 0.24  |  |  | $ | 0.21  |  |  | $ | 0.60  |  |  | $ | 0.54  |  |
| Shares used to compute diluted net income per share | 425.8  |  |  | 430.3  |  |  | 428.0  |  |  | 427.9  |  |
|  |  |  |  |  |  |  |  |
| \* We adjusted our 2021 amounts to reflect the simplified convertible instruments accounting guidance, which we adopted on a full retrospective basis. All periods presented have also been adjusted to reflect the four-for-one stock split. Refer to Note 1, “Organization and Significant Accounting Policies,” for further information. |

  
See accompanying notes4
