DexCom’s long-term prospects are improved by the rising addressable market

Over the last two years, sales at DexCom Inc. (DXCM), a maker of mobile blood glucose monitors, have climbed by 66%. The company’s success story is far from over, as the diabetes patient market continues to develop in both the United States and internationally. By the end of 2021, DexCom had earned $2.4 billion.At the same time, the company’s operations generate a substantial profit.

Last year’s gross profit was $1.7 billion, or over 70% of sales. Investment in research may have an impact on earnings in the following years. However, adjusted EBITDA increased by 14% to $578.9 million in 2021, accounting for 24% of sales.The business anticipates sales growth of up to 20% and an adjusted EBITDA margin of 25% this year. It’s worth noting that DexCom works in a rapidly expanding market.

According to Vantage Market Research, the worldwide market for glucose monitoring devices is increasing at a 10.8% annual pace and will be worth more than $13 billion by 2028. The market is presently projected to be worth $5.1 billion. One of DexCom’s main goals is to expand into new foreign markets, which might result in considerable growth in the next few years. In 2021, international revenue increased by 44 percent year on year, while domestic sales increased by 23 percent.

However, overseas sales do not yet account for more than a quarter of the company’s revenue. The company’s shares are a plausible long-term investment due to the increasing market and DexCom’s strong position in it. According to the US Centers for Disease Control and Prevention, the number of people living with diabetes in the United States might quadruple by 2050. As the number of people with this condition grows, so will the need for treatment, which means that DexCom will continue to make more money.