DexCom to Take Its Technology International
DexCom (NASDAQ: DXCM) might just have significant untapped potential and even greater growth ahead. In this clip from "3 Minute Stocks Updates" on Motley Fool Live, recorded on Feb. 16, Motley Fool contributors Brian Feroldi and Brian Withers discuss why DexCom investors are keeping a close watch on the company for two main reasons.
Brian Feroldi: For now, all eyes remain on two things with DexCom. The first thing to keep an eye on is the launch of the G7, so this is the company's next generation sensing technology. There are all benefits to it. It's factory-calibrated. It's going to be a significant reduction in manufacturing costs and even more accurate than the current methodology, so management is really pumped about this system. Second, they are taking their current technology called the G6 and they're actually selling it in international markets such as Bulgaria, Estonia, Latvia, and Lithuania at a discounted price. They're taking their existing technology and allowing people around the world who don't have access to reimbursement and are far more price-sensitive to use this technology which is really cool and could be a long-term driver of growth for the company. However, doing so is likely to be a short-term drag on the company's margins until they get that up in scale. But if you look at the big picture for investors, revenue is trending in the right direction, 70% of this company's revenue is recurring from the sensors and the opportunity ahead of this company still remains large.
Source Fool.com
