06:48 AM EDT, 07/26/2024 (MT Newswires) -- DexCom ( DXCM ) shares fell early Friday after the diabetes device maker slashed its full-year topline outlook, as second-quarter revenue fell short of market estimates amid the company's expansion and realignment of its sales team.

The company now expects revenue to be between roughly $4 billion and $4.05 billion for 2024, it said late Thursday, compared with the previous guidance range of about $4.2 billion to $4.35 billion. The current consensus on Capital IQ is for revenue of $4.01 billion. The stock fell over 35% in premarket activity.

"The compounding effect of our slower-than-expected new customer growth in the US (durable medical equipment) channel and international business, as well as increased pharmacy eligibility resulted in the need to recalibrate the guide," Chief Financial Officer Jereme Sylvain said during an earnings call, according to a Capital IQ transcript. "Our updated guidance reflects these dynamics and assumes a longer ramp in productivity in our US sales force."

DexCom's ( DXCM ) revenue climbed 15% year over year to $1 billion during the three-month period ended June 30, missing the Street's view for $1.04 billion. Adjusted earnings rose to $0.43 per share from $0.34 the year before, surpassing analysts' $0.39 estimate. Dexcom ( DXCM ) saw share of new customers fall short of expectations despite strong absolute customer additions as the company undergoes an expansion of its sales team, Chief Executive Kevin Sayer said on the call.

Sales in the US, which made up 73% of overall revenue, grew 19% to $731.9 million, while international revenue rose 7% to $272.4 million. "While we anticipated our international growth to slow this quarter as we lapped our very strong performance from (the second quarter of 2023), our results came in lighter than expected," Sylvain said on the call. "Our miss on new customers impacted us by approximately $10 million on the quarter."

Adjusted operating income as a percentage of revenue came in at 19.5% during the quarter versus 18.2% last year, according to Sylvain. Operating expenses rose to $468.7 million from $418.3 million in the prior-year quarter.

For the ongoing quarter, the company expects revenue of $975 million to $1 billion, while the Street is currently looking for $1 billion. The impact to new patients from DexCom's ( DXCM ) sales force initiative and revenue per customer trends are predicted to "reach their peak" in the current period, Sylvain told analysts.

The company also disclosed a $750 million share repurchase program.

Price: 70.00, Change: -37.85, Percent Change: -35.10