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
: So I'm going to use my one, Quentin. The guidance came in a little lower on the margin side for 2021. Can you walk us through what's the delta
on gross margin and those expenses? I realize the long-term guide is $65 million, but I think people were thinking a little bit higher in 2021 here.
And then it seems like to get to 13%, you're going to need a pretty big step-up in SG&A. So maybe just help us walk through SG&A and R&D and
what you're expecting in terms of investment, how much DTC will be 2021 versus 2020, and any other notable expenses that we should be thinking
about?
Question: Mathew Justin Blackman - Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst
: I wanted to touch on the sales force expansion. And just remind us how quickly those new reps could start to contribute to revenues. And also
remind us, how is the sales force going to be structured? Are these reps going to call on all clinicians or it will somehow be bifurcated between
PCPs and endos and specialists?
Question: Ravi Misra - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: So just wanted to go back to the gross margin and the kind of CapEx investments and scale-up that you're looking to make. I'm trying to figure
out, Quentin and Kevin, you're building all this capacity presumably for the next, I'm guessing, decade or so. How do we think about that plant or
the plants coming online in terms of what level of volume do you think you need to be when it comes to the kind of sales numbers that you put
out there for the long term to kind of really truly get those plants to lever the fixed cost investments they've made? I guess what I'm trying to ask
REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us
consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.
FEBRUARY 11, 2021 / 9:30PM, DXCM.OQ - Q4 2020 DexCom Inc Earnings Call
is, if sales ramp faster than we've kind of modeled here, is there upside to your gross margin? Conversely, if it's kind of in line with the long-term
guidance -- what gets that 65% higher as I contemplate these CapEx investments?
|
