The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Robert Justin Marcus - JPMorgan Chase & Co, Research Division - Analyst
: Great. Congrats on nice quarter. I wanted to talk about the guidance raise. It was more than the beat you had in the first quarter. So
maybe walk us through your new patient assumptions and what's driving that U.S. versus OUS. And if you could comment at all on
how the early trends of the Super Bowl and increased DTC spend and sales force doubling has benefited the company so far and
what to expect in 2021.
Question: Mathew Justin Blackman - Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst
: I wanted to follow-up on the OUS pricing strategy and sort of a multipart question here. But is the incremental $50 million headwind
you called out isolated to 2021? Or will these price headwinds continue beyond 2021 outside the U.S.? And then if I think about the
full year guidance range -- raise of about $50 million, I think about half of that you said is underlying outperformance. But that's also
in the face of another $50 million headwind on price. So is it fair to say that the guidance rate is actually closer to, call it, $75 million
ex FX on an underlying basis?
Question: Ravi Misra - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Congrats, Jereme and Quentin on the moves. A lot of management changes over at DexCom -- or rotations, I guess, over the last
year or so. The question I had, I guess I wanted to go after the gross margin and pricing commentary from maybe a different angle.
When you had the similar type of pricing impact in the U.S. when you started going into pharma channel, we really saw a pretty
strong level of uptake through that to that arena, albeit the pricing headwind continues. So I guess what I'm trying to ask is, do you
-- does guidance factor in that type of kind of immediate impact from the price cut, I guess, in Europe? And do you think that $50
million is the kind of extent of it as we kind of go forward here?
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