INGN Inogen Inc

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 07, 2024

 

 

INOGEN, INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware			001-36309	33-0989359
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
859 Ward Drive
Goleta, California				93111
(Address of Principal Executive Offices)				(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (805) 562-0500

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $0.001 par value		INGN		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

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Item 2.02 Results of Operations and Financial Condition.

On November 7, 2024, Inogen, Inc. (the "Company") issued a press release reporting its financial results for the third quarter ended September 30, 2024. A copy of the press release is furnished herewith as Exhibit 99.1 to this Current Report on Form 8-K.

 

The information furnished in this Current Report under Item 2.02 and the exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit		Description
99.1		Press Release dated November 7, 2024.
104		The cover page of this Current Report on Form 8-K, formatted in Inline XBRL.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			INOGEN, INC.
Date:	November 7, 2024	By:	/s/ Michael Bourque
			Michael Bourque Executive Vice President Chief Financial Officer Treasurer (Principal Accounting and Financial Officer)

 

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Exhibit 99.1

 

Inogen Announces Third Quarter 2024 Financial Results

GOLETA, Calif., – November 7, 2024 – 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.

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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

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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.

Contact

ir@inogen.net

 

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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

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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

 

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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	)

 

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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	)

 

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		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	)

 

 

 

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v3.24.3

Document And Entity Information	Nov. 07, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Nov. 07, 2024
Entity Registrant Name	Inogen Inc
Entity Central Index Key	0001294133
Entity Emerging Growth Company	false
Entity File Number	001-36309
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	33-0989359
Entity Address, Address Line One	859 Ward Drive
Entity Address, City or Town	Goleta
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	93111
City Area Code	(805)
Local Phone Number	562-0500
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	INGN
Security Exchange Name	NASDAQ

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