Inogen, Inc. (Nasdaq: INGN), a medical technology company
offering innovative respiratory products for use in the homecare
setting, today announced financial results for the quarter ended
September 30, 2024.
“We continued to make significant progress on our strategic
priorities in the third quarter. Our results demonstrate our team’s
strong commercial and operational execution,” said Kevin Smith,
President and Chief Executive Officer. “As we move into the fourth
quarter, we remain focused on driving growth, continuing
innovation, and advancing towards sustainable profitability.”
Third Quarter 2024 Financial Results
Total revenue in the third quarter of 2024 increased 5.8% to
$88.8 million from $84.0 million in the third quarter of 2023,
primarily driven by higher demand and new customer gains across the
domestic and international business-to-business channels, which
were partially offset by lower direct-to-consumer sales and rental
revenue.
Total gross margin was 46.5% in the third quarter of 2024 versus
40.2% in the comparative period in 2023. The increase was driven
primarily by lower raw material costs, that were partially offset
by sales channel mix.
Total operating expense for the third quarter of 2024 was $49.1
million compared to $80.5 million in the third quarter of 2023,
representing a decline of 39.0%. The decline can be attributed to
the one-time goodwill impairment charge in the prior year
period.
GAAP net loss for the third quarter of 2024 was $6.0 million
compared to $45.7 million in the third quarter of 2023. Adjusted
net loss for the third quarter of 2024 was $2.6 million compared to
$8.5 million in the third quarter of 2023.
Adjusted EBITDA was a positive $0.5 million in the third quarter
of 2024 compared to a negative $5.5 million in the third quarter of
2023.
Cash, cash equivalents, marketable securities and restricted
cash were $124.3 million as of September 30, 2024, an increase of
$3.0 million from the second quarter of 2024, with no debt
outstanding.
Reconciliations of adjusted EBITDA and adjusted net loss for the
three and nine months ended September 30, 2024 and 2023 are
provided in the financial schedules that are a part of this press
release. An explanation of these non-GAAP financial measures is
also included below under the heading “Reconciliation of U.S. GAAP
to Other Non-GAAP Financial Measures.”
2024 Financial Outlook
Inogen now expects revenue for the full year 2024 to range from
approximately $329 million to $331 million, which represents
approximately 4% to 5% growth over the Company’s prior year
revenue.
Quarterly Conference Call Information
On Thursday, November 7, 2024 the Company will host a conference
call at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time to discuss
its third quarter 2024 financial results.
Individuals interested in listening to the conference call may
do so by dialing:
US domestic callers (877) 841-3961 Non-US
callers (201) 689-8589
Please reference Inogen to join the call. A live audio webcast
and archived recording of the conference call will be available to
all interested parties through the News / Events page on the Inogen
Investor Relations website. This webcast will also be archived on
the website for 6 months.
A replay of the call will be available approximately three hours
after the live webcast ends and will be accessible through November
14, 2024. To access the replay, dial (877) 660-6853 or (201)
612-7415 and reference Conference ID: 13749319.
Inogen has used, and intends to continue to use, its Investor
Relations website, http://investor.inogen.com/, as a means of
disclosing material non-public information and for complying with
its disclosure obligations under Regulation FD.
About Inogen
Inogen, Inc. (Nasdaq: INGN) is a leading global medical
technology company offering innovative respiratory products for use
in the homecare setting. Inogen supports patient respiratory care
by developing, manufacturing, and marketing innovative
best-in-class portable oxygen concentrators used to deliver
supplemental long-term oxygen therapy to patients suffering from
chronic respiratory conditions. Inogen partners with patients,
prescribers, home medical equipment providers, and distributors to
make its oxygen therapy products widely available allowing patients
the chance to remain ambulatory while managing the impact of their
disease.
For more information, please visit www.inogen.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including, among others, statements with respect to the
business positioned for revenue growth and long-term profitability,
advancing the innovation pipeline, and Inogen’s full year revenue
expectations. Any statements contained in this communication that
are not statements of historical fact may be deemed to be
forward-looking statements. Words such as “believes,”
“anticipates,” “plans,” “expects,” “will,” “intends,” “potential,”
“possible,” and similar expressions are intended to identify
forward-looking statements. Forward-looking statements are subject
to numerous risks and uncertainties that could cause actual results
to differ materially from currently anticipated results, including
but not limited to, risks related to its announced management and
organizational changes, and risks arising from the possibility that
Inogen will not realize anticipated future financial performance or
strategic goals. In addition, Inogen's business is subject to
numerous additional risks and uncertainties, including, among
others, risks relating to market acceptance of its products;
competition; its sales, marketing and distribution capabilities;
its planned sales, marketing, and research and development
activities; interruptions or delays in the supply of components or
materials for, or manufacturing of, its products; seasonal
variations; unanticipated increases in costs or expenses; risks
associated with international operations; and the possibility that
Inogen will not realize anticipated revenue from recent or future
technology acquisitions or that expenses and costs related thereto
will exceed Inogen’s expectations. Information on these and
additional risks, uncertainties, and other information affecting
Inogen’s business operating results are contained in its Annual
Report on Form 10-K for the period ended December 31, 2023, its
Quarterly Report on Form 10-Q for the calendar quarter ended March
31, 2024 and in its other filings with the Securities and Exchange
Commission. These forward-looking statements speak only as of the
date hereof. Inogen disclaims any obligation to update these
forward-looking statements except as may be required by law.
Non-GAAP Financial Measures
Inogen has presented certain financial information in accordance
with U.S. GAAP and also on a non-GAAP basis for the three and nine
months ended September 30, 2024, and September 30, 2023. Management
believes that non-GAAP financial measures, taken in conjunction
with U.S. GAAP financial measures, provide useful information for
both management and investors by excluding certain non-cash and
other expenses that are not indicative of Inogen’s core operating
results. Management uses non-GAAP measures to compare Inogen’s
performance relative to forecasts and strategic plans, to benchmark
Inogen’s performance externally against competitors, and for
certain compensation decisions. Non-GAAP information is not
prepared under a comprehensive set of accounting rules and should
only be used to supplement an understanding of Inogen's operating
results as reported under U.S. GAAP. Inogen encourages investors to
carefully consider its results under U.S. GAAP, as well as its
supplemental non-GAAP information and the reconciliation between
these presentations, to more fully understand its business.
Reconciliations between U.S. GAAP and non-GAAP results are
presented in the accompanying tables of this release.
Consolidated Statements of
Comprehensive Loss
(unaudited)
(amounts in thousands, except
share and per share amounts)
Three months ended
September 30,
Nine months ended
September 30,
2024
2023
2024
2023
Revenue
Sales revenue
$
74,929
$
67,973
$
212,449
$
192,203
Rental revenue
13,905
15,994
43,175
47,561
Total revenue
88,834
83,967
255,624
239,764
Cost of revenue
Cost of sales revenue
39,592
42,708
113,156
118,700
Cost of rental revenue, including
depreciation of $3,247 and $3,364, for the three months ended and
$9,554 and $9,680 for the nine months ended, respectively
7,898
7,495
24,016
22,523
Total cost of revenue
47,490
50,203
137,172
141,223
Gross profit
41,344
33,764
118,452
98,541
Operating expense
Research and development
3,518
4,489
15,712
14,126
Sales and marketing
26,361
26,091
78,914
81,438
General and administrative
19,257
17,011
54,956
50,487
Impairment charges
—
32,894
—
32,894
Total operating expense
49,136
80,485
149,582
178,945
Loss from operations
(7,792
)
(46,721
)
(31,130
)
(80,404
)
Other income (expense)
Interest income, net
1,041
1,801
3,777
4,972
Other income (expense)
687
(398
)
964
176
Total other income, net
1,728
1,403
4,741
5,148
Loss before provision (benefit) for
income taxes
(6,064
)
(45,318
)
(26,389
)
(75,256
)
Provision (benefit) for income
taxes
(101
)
401
(258
)
638
Net loss
(5,963
)
(45,719
)
(26,131
)
(75,894
)
Other comprehensive income (loss), net
of tax
Change in foreign currency translation
adjustment
1,654
(752
)
333
(575
)
Change in net unrealized gains on foreign
currency hedging
—
33
—
40
Less: reclassification adjustment for net
losses included in net loss
—
13
—
13
Total net change in unrealized gains on
foreign currency hedging
—
46
—
53
Change in net unrealized gains on
marketable securities
203
49
161
182
Total other comprehensive income
(loss), net of tax
1,857
(657
)
494
(340
)
Comprehensive loss
$
(4,106
)
$
(46,376
)
$
(25,637
)
$
(76,234
)
Basic net loss per share attributable
to common stockholders (1)
$
(0.25
)
$
(1.97
)
$
(1.11
)
$
(3.28
)
Diluted net loss per share attributable
to common stockholders (1) (2)
$
(0.25
)
$
(1.97
)
$
(1.11
)
$
(3.28
)
Weighted average number of shares used
in calculating net loss per share attributable to common
stockholders:
Basic common shares
23,751,168
23,231,217
23,589,836
23,129,795
Diluted common shares
23,751,168
23,231,217
23,589,836
23,129,795
(1)
Reconciliations of net loss attributable
to common stockholders basic and diluted can be found in Inogen’s
Quarterly Report on Form 10-Q to be filed with the Securities and
Exchange Commission.
(2)
Due to a net loss for the three and nine
months ended September 30, 2024 and September 30, 2023, diluted
loss per share is the same as basic.
Consolidated Balance
Sheets
(unaudited)
(amounts in thousands, except
share and per share amounts)
September 30,
2024
December 31,
2023
Assets
Current assets
Cash and cash equivalents
$
105,690
$
125,492
Marketable securities
14,973
2,979
Restricted cash
3,591
—
Accounts receivable, net
34,233
42,241
Inventories, net
23,320
21,840
Income tax receivable
964
669
Prepaid expenses and other current
assets
9,783
13,846
Total current assets
192,554
207,067
Property and equipment, net
46,598
50,316
Goodwill
10,170
10,057
Intangible assets, net
33,762
34,591
Operating lease right-of-use
asset
19,017
20,338
Other assets
4,071
3,825
Total assets
$
306,172
$
326,194
Liabilities and stockholders'
equity
Current liabilities
Accounts payable and accrued expenses
$
27,028
$
30,142
Accrued payroll
14,285
11,066
Warranty reserve - current
9,492
9,628
Operating lease liability - current
2,777
3,653
Earnout liability
11,830
10,000
Deferred revenue - current
6,984
7,980
Income tax payable
—
27
Total current liabilities
72,396
72,496
Long-term liabilities
Warranty reserve - noncurrent
16,183
13,850
Operating lease liability - noncurrent
17,370
18,270
Deferred revenue - noncurrent
6,435
8,227
Deferred tax liability
8,384
8,539
Total liabilities
120,768
121,382
Stockholders' equity
Common stock
24
23
Additional paid-in capital
326,741
320,513
Accumulated deficit
(143,080
)
(116,949
)
Accumulated other comprehensive income
1,719
1,225
Total stockholders' equity
185,404
204,812
Total liabilities and stockholders'
equity
$
306,172
$
326,194
Condensed Consolidated Cash
Flow
(unaudited)
(amounts in thousands)
Nine months ended
September 30,
2024
2023
Cash flows from operating
activities
Net loss
$
(26,131
)
$
(75,894
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation and amortization
15,924
13,008
Loss on rental units and other assets
3,075
3,377
Gain on sale of former rental assets
(164
)
(58
)
Provision for sales revenue returns and
doubtful accounts
9,397
7,075
Provision for inventory losses
(243
)
2,343
Loss on purchase commitments
(334
)
—
Stock-based compensation expense
5,704
8,484
Deferred income taxes
(244
)
—
Change in fair value of earnout
liability
1,830
—
Impairment charges
—
32,894
Changes in operating assets and
liabilities
118
8,685
Net cash provided by (used in) operating
activities
8,932
(86
)
Cash flows from investing
activities
Purchases of available-for-sale
securities
(32,333
)
(23,750
)
Maturities of available-for-sale
securities
20,500
10,500
Investment in intangible assets
(2,090
)
(494
)
Investment in property and equipment
(3,031
)
(3,824
)
Production and purchase of rental
equipment
(8,833
)
(16,391
)
Proceeds from sale of former assets
272
149
Acquisition of business, net of cash
acquired
—
(29,633
)
Net cash used in investing activities
(25,515
)
(63,443
)
Cash flows from financing
activities
Proceeds from stock options exercised
—
384
Proceeds from employee stock purchases
811
1,094
Payment of employment taxes related to
release of restricted stock
(286
)
(504
)
Net cash provided by financing
activities
525
974
Effect of exchange rates on cash
(153
)
149
Net decrease in cash, cash equivalents
and restricted cash
$
(16,211
)
$
(62,406
)
Supplemental Financial
Information
(unaudited)
(in thousands, except units
and patients)
Constant
Three months ended
Currency
September 30,
Change 2024 vs. 2023
Change
Revenue by region and category
2024
2023
$
%
%
Business-to-business domestic sales
$
23,352
$
17,288
$
6,064
35.1
%
35.1
%
Business-to-business international
sales
32,328
25,613
6,715
26.2
%
26.9
%
Direct-to-consumer domestic sales
19,249
25,072
(5,823
)
-23.2
%
-23.2
%
Direct-to-consumer domestic rentals
13,905
15,994
(2,089
)
-13.1
%
-13.1
%
Total revenue
$
88,834
$
83,967
$
4,867
5.8
%
6.0
%
Additional financial measures
Units Sold
43,900
35,400
Net rental patients as of period-end
51,400
51,900
Constant
Nine months ended
Currency
September 30,
Change 2024 vs. 2023
Change
Revenue by region and category
2024
2023
$
%
%
Business-to-business domestic sales
$
61,158
$
48,145
$
13,013
27.0
%
27.0
%
Business-to-business international
sales
88,894
67,877
21,017
31.0
%
30.8
%
Direct-to-consumer domestic sales
62,397
76,181
(13,784
)
-18.1
%
-18.1
%
Direct-to-consumer domestic rentals
43,175
47,561
(4,386
)
-9.2
%
-9.2
%
Total revenue
$
255,624
$
239,764
$
15,860
6.6
%
6.6
%
Additional financial measures
Units Sold
119,100
96,400
Net rental patients as of period-end
51,400
51,900
Reconciliation of U.S. GAAP to
Other Non-GAAP Financial Measures
(unaudited)
(in thousands)
Three months ended
September 30,
Nine months ended
September 30,
Non-GAAP EBITDA and Adjusted
EBITDA
2024
2023
2024
2023
Net loss (GAAP)
$
(5,963
)
$
(45,719
)
$
(26,131
)
$
(75,894
)
Non-GAAP adjustments:
Interest income, net
(1,041
)
(1,801
)
(3,777
)
(4,972
)
Provision (benefit) for income taxes
(101
)
401
(258
)
638
Depreciation and amortization
5,314
4,614
15,924
13,008
EBITDA (non-GAAP)
(1,791
)
(42,505
)
(14,242
)
(67,220
)
Stock-based compensation
1,474
1,779
5,704
8,484
Acquisition-related expenses
127
960
784
1,981
Restructuring-related and other
charges
—
1,416
—
3,426
Impairment charges
—
32,894
—
32,894
Change in fair value of earnout
liability
650
—
1,830
—
Adjusted EBITDA (non-GAAP)
$
460
$
(5,456
)
$
(5,924
)
$
(20,435
)
Three months ended September
30,
Net Loss
Diluted EPS
Non-GAAP Adjusted Net Loss and Diluted
EPS
2024
2023
2024
2023
Financial Results (GAAP)
$
(5,963
)
$
(45,719
)
$
(0.25
)
$
(1.97
)
Non-GAAP adjustments:
Amortization of intangibles
1,107
205
Stock-based compensation
1,474
1,779
Acquisition-related expenses
127
960
Restructuring-related and other charges
(1)
—
1,416
Impairment charges
—
32,894
Change in fair value of earnout
liability
650
—
Income tax impact of adjustments (2)
—
—
Adjusted
$
(2,605
)
$
(8,465
)
$
(0.11
)
$
(0.36
)
Nine months ended September
30,
Net Loss
Diluted EPS
Non-GAAP Adjusted Net Loss and Diluted
EPS
2024
2023
2024
2023
Financial Results (GAAP)
$
(26,131
)
$
(75,894
)
$
(1.11
)
$
(3.28
)
Non-GAAP adjustments:
Amortization of intangibles
3,227
284
Stock-based compensation
5,704
8,484
Acquisition-related expenses
784
1,981
Restructuring-related and other charges
(1)
—
3,426
Impairment charges
—
32,894
Change in fair value of earnout
liability
1,830
—
Income tax impact of adjustments (2)
—
—
Adjusted
$
(14,586
)
$
(28,825
)
$
(0.62
)
$
(1.25
)
(1)
Charges represent the costs associated
with workforce reductions and other restructuring-related
activities.
(2)
Income tax impact of adjustments
represents the tax impact related to the non-GAAP adjustments
listed above and reflects an effective tax rate of 0% for the three
and nine months ended September 30, 2024 and 2023.
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ir@inogen.net
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