INGN Inogen Inc

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 March 31, 2024.

“We are pleased to be off to a solid start at Inogen in 2024. Looking forward, we remain focused on positioning the business for revenue growth, improving our operating discipline to drive long-term profitability, and investing in our innovation pipeline to broaden our product portfolio,” said Kevin Smith, President and Chief Executive Officer. “The performance in the quarter reflects the quality of the team we have in place, and we will continue executing against our strategic priorities, while strengthening our market leading position. I am excited for the future of Inogen.”

First Quarter 2024 Financial Results

First quarter total revenue increased 8.1% to $78.0 million from $72.2 million in the first quarter of 2023, primarily driven by higher international and domestic business-to business sales, partially offset by lower direct-to-consumer sales and rental revenue.

Total gross margin was 44.1% in the first quarter of 2024 versus 42.6% in the comparative period in 2023. The increase was driven primarily by lower premiums paid for components, partially offset by sales channel mix.

Total operating expense for the quarter was $50.6 million compared to $52.6 million in the first quarter of 2023, representing a decrease of 3.8%.

GAAP net loss for the first quarter of 2024 was $14.6 million compared to GAAP net loss of $20.3 million in the first quarter of 2023. Adjusted net loss was $10.4 million compared to adjusted net loss of $14.5 million in the first quarter of 2023.

Adjusted EBITDA was a negative $7.6 million in the first quarter of 2024 compared to a negative $11.8 million in the first quarter of 2023.

Cash, cash equivalents and marketable securities were $119.8 million as of March 31, 2024, and no debt outstanding.

A reconciliation of adjusted EBITDA and adjusted net loss for the three months ended March 31, 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.”

Second Quarter 2024 Financial Outlook

For the second quarter of 2024, Inogen expects revenue to be in the range of $81 million to $84 million.

Quarterly Conference Call Information

On Tuesday, May 7, 2024 the Company will host a conference call at 2:00 pm Pacific Time / 5:00 pm Eastern Time.

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 May 14, 2024. To access the replay, dial (877) 660-6853 or (201) 612-7415 and reference Conference ID: 13745058.

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, investing in the innovation pipeline, and Inogen’s second quarter 2024 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, 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 months ended March 31, 2024, and March 31, 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. For future periods, Inogen is unable to provide a reconciliation of non-GAAP measures without unreasonable effort as a result of the uncertainty regarding, and the potential variability of, the amounts of interest income, interest expense, depreciation and amortization, stock-based compensation, provision for income taxes, and certain other infrequently occurring items, such as acquisition-related costs, that may be incurred in the future.

Consolidated Statements of Comprehensive Loss

(unaudited)

(amounts in thousands, except share and per share amounts)

 

 

 

 

 

 

 

 

Three months ended

 

 

 

March 31,

 

 

 

2024

 

 

2023

 

 

Revenue

 

 

 

 

 

Sales revenue

 

$

63,095

 

 

$

55,887

 

 

Rental revenue

 

 

14,930

 

 

 

16,275

 

 

Total revenue

 

 

78,025

 

 

 

72,162

 

 

Cost of revenue

 

 

 

 

 

Cost of sales revenue

 

 

35,244

 

 

 

33,964

 

 

Cost of rental revenue, including depreciation of $3,179 and $3,078, respectively

 

 

8,410

 

 

 

7,465

 

 

Total cost of revenue

 

 

43,654

 

 

 

41,429

 

 

Gross profit

 

 

34,371

 

 

 

30,733

 

 

Operating expense

 

 

 

 

 

Research and development

 

 

6,578

 

 

 

5,344

 

 

Sales and marketing

 

 

26,936

 

 

 

28,441

 

 

General and administrative

 

 

17,131

 

 

 

18,863

 

 

Total operating expense

 

 

50,645

 

 

 

52,648

 

 

Loss from operations

 

 

(16,274

)

 

 

(21,915

)

 

Other income (expense)

 

 

 

 

 

Interest income, net

 

 

1,403

 

 

 

1,525

 

 

Other income, net

 

 

143

 

 

 

237

 

 

Total other income, net

 

 

1,546

 

 

 

1,762

 

 

Loss before provision (benefit) for income taxes

 

 

(14,728

)

 

 

(20,153

)

 

Provision (benefit) for income taxes

 

 

(150

)

 

 

196

 

 

Net loss

 

 

(14,578

)

 

 

(20,349

)

 

Other comprehensive income (loss), net of tax

 

 

 

 

 

Change in foreign currency translation adjustment

 

 

(1,035

)

 

 

170

 

 

Change in net unrealized gains (losses) on marketable securities

 

 

(2

)

 

 

69

 

 

Total other comprehensive income (loss), net of tax

 

 

(1,037

)

 

 

239

 

 

Comprehensive loss

 

$

(15,615

)

 

$

(20,110

)

 

 

 

 

 

 

 

Basic net loss per share attributable to common stockholders (1)

 

$

(0.62

)

 

$

(0.88

)

 

Diluted net loss per share attributable to common stockholders (1) (2)

 

$

(0.62

)

 

$

(0.88

)

 

Weighted-average number of shares used in calculating net loss per share attributable to common stockholders:

 

 

 

 

 

Basic common shares

 

 

23,401,598

 

 

 

23,009,617

 

 

Diluted common shares

 

 

23,401,598

 

 

 

23,009,617

 

 

     

(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 months ended March 31, 2024 and March 31, 2023, diluted loss per share is the same as basic.

       

Consolidated Balance Sheets

(unaudited)

(amounts in thousands)

 

 

 

 

 

 

 

March 31,

 

December 31,

 

 

2024

 

 

2023

 

Assets

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

107,444

 

 

$

125,492

 

Marketable securities

 

 

12,361

 

 

 

2,979

 

Accounts receivable, net

 

 

40,223

 

 

 

42,241

 

Inventories, net

 

 

24,601

 

 

 

21,840

 

Income tax receivable

 

 

976

 

 

 

669

 

Prepaid expenses and other current assets

 

 

13,589

 

 

 

13,846

 

Total current assets

 

 

199,194

 

 

 

207,067

 

Property and equipment, net

 

 

49,270

 

 

 

50,316

 

Goodwill

 

 

9,834

 

 

 

10,057

 

Intangibles assets, net

 

 

32,907

 

 

 

34,591

 

Operating lease right-of-use asset

 

 

20,575

 

 

 

20,338

 

Other assets

 

 

3,819

 

 

 

3,825

 

Total assets

 

$

315,599

 

 

$

326,194

 

Liabilities and stockholders' equity

 

 

 

 

Current liabilities

 

 

 

 

Accounts payable and accrued expenses

 

$

31,706

 

 

$

30,142

 

Accrued payroll

 

 

10,602

 

 

 

11,066

 

Warranty reserve - current

 

 

10,095

 

 

 

9,628

 

Operating lease liability - current

 

 

3,515

 

 

 

3,653

 

Earnout liability

 

 

10,570

 

 

 

10,000

 

Deferred revenue - current

 

 

7,422

 

 

 

7,980

 

Income tax payable

 

 

—

 

 

 

27

 

Total current liabilities

 

 

73,910

 

 

 

72,496

 

Warranty reserve - noncurrent

 

 

15,435

 

 

 

13,850

 

Operating lease liability - noncurrent

 

 

18,595

 

 

 

18,270

 

Deferred revenue - noncurrent

 

 

7,613

 

 

 

8,227

 

Deferred tax liability - noncurrent

 

 

8,148

 

 

 

8,539

 

Total liabilities

 

 

123,701

 

 

 

121,382

 

Stockholders' equity

 

 

 

 

Common stock

 

 

24

 

 

 

23

 

Additional paid-in capital

 

 

323,213

 

 

 

320,513

 

Accumulated deficit

 

 

(131,527

)

 

 

(116,949

)

Accumulated other comprehensive income

 

 

188

 

 

 

1,225

 

Total stockholders' equity

 

 

191,898

 

 

 

204,812

 

Total liabilities and stockholders' equity

 

$

315,599

 

 

$

326,194

 

 

Condensed Consolidated Cash Flow

(unaudited)

(amounts in thousands)

 

 

 

 

 

 

 

Three months ended March 31,

 

 

2024

 

 

2023

 

Cash flows from operating activities

 

 

 

 

Net loss

 

$

(14,578

)

 

$

(20,349

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

Depreciation and amortization

 

 

5,265

 

 

 

4,086

 

Loss on rental units and other assets

 

 

1,162

 

 

 

1,099

 

Gain on sale of former rental assets

 

 

(38

)

 

 

(21

)

Provision for sales revenue returns and doubtful accounts

 

 

2,164

 

 

 

2,258

 

Provision for inventory losses

 

 

(53

)

 

 

603

 

Stock-based compensation expense

 

 

2,416

 

 

 

3,442

 

Deferred income taxes

 

 

(201

)

 

 

—

 

Change in fair value of earnout liability

 

 

570

 

 

 

—

 

Changes in operating assets and liabilities

 

 

(1,456

)

 

 

2,581

 

Net cash used in operating activities

 

 

(4,749

)

 

 

(6,301

)

Cash flows from investing activities

 

 

 

 

Purchases of available-for-sale securities

 

 

(12,384

)

 

 

(10,359

)

Maturities of available-for-sale securities

 

 

3,000

 

 

 

—

 

Investment in property and equipment

 

 

(1,310

)

 

 

(1,076

)

Production and purchase of rental equipment

 

 

(2,820

)

 

 

(5,733

)

Proceeds from sale of former assets

 

 

70

 

 

 

58

 

Net cash used in investing activities

 

 

(13,444

)

 

 

(17,110

)

Cash flows from financing activities

 

 

 

 

Proceeds from stock options exercised

 

 

—

 

 

 

384

 

Proceeds from employee stock purchases

 

 

370

 

 

 

630

 

Payment of employment taxes related to release of restricted stock

 

 

(85

)

 

 

(455

)

Net cash provided by financing activities

 

 

285

 

 

 

559

 

Effect of exchange rates on cash

 

 

(140

)

 

 

(25

)

Net decrease in cash and cash equivalents

 

$

(18,048

)

 

$

(22,877

)

 

Supplemental Financial Information

(unaudited)

(in thousands, except units and patients)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 31,

 

 

Change as reported

 

Constant Currency Change

 

 

2024

 

 

2023

 

 

$

 

%

 

%

Revenue by region and category

 

 

 

 

 

 

 

 

 

 

 

 

Business-to-business domestic sales

 

$

16,519

 

 

$

12,585

 

 

$

3,934

 

 

 

31.3

%

 

 

31.3

%

Business-to-business international sales

 

 

26,035

 

 

 

18,972

 

 

 

7,063

 

 

 

37.2

%

 

 

35.4

%

Direct-to-consumer domestic sales

 

 

20,541

 

 

 

24,330

 

 

 

(3,789

)

 

 

-15.6

%

 

 

-15.6

%

Direct-to-consumer domestic rentals

 

 

14,930

 

 

 

16,275

 

 

 

(1,345

)

 

 

-8.3

%

 

 

-8.3

%

Total revenue

 

$

78,025

 

 

$

72,162

 

 

$

5,863

 

 

 

8.1

%

 

 

7.6

%

Additional financial measures

 

 

 

 

 

 

 

 

 

 

 

 

Units sold

 

 

33,900

 

 

 

26,900

 

 

 

 

 

 

 

Net rental patients as of period-end

 

 

51,800

 

 

 

45,800

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of U.S. GAAP to Other Non-GAAP Financial Measures

(unaudited)

(in thousands)

 

 

 

 

 

 

 

 

Three months ended

 

 

 

March 31,

 

Non-GAAP EBITDA and Adjusted EBITDA

 

2024

 

 

2023

 

 

Net loss (GAAP)

 

$

(14,578

)

 

$

(20,349

)

 

Non-GAAP adjustments:

 

 

 

 

 

Interest income, net

 

 

(1,403

)

 

 

(1,525

)

 

Provision (benefit) for income taxes

 

 

(150

)

 

 

196

 

 

Depreciation and amortization

 

 

5,265

 

 

 

4,086

 

 

EBITDA (non-GAAP)

 

 

(10,866

)

 

 

(17,592

)

 

Stock-based compensation

 

 

2,416

 

 

 

3,442

 

 

Acquisition-related expenses

 

 

238

 

 

 

554

 

 

Restructuring-related and other charges (1)

 

 

—

 

 

 

1,809

 

 

Change in fair value of earnout liability

 

 

570

 

 

 

—

 

 

Adjusted EBITDA (non-GAAP)

 

$

(7,642

)

 

$

(11,787

)

 

 

 

 

Three months ended March 31,

 

 

Net Loss

 

Diluted EPS

Non-GAAP Adjusted Net Loss and Diluted EPS

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Financial Results (GAAP)

 

$

(14,578

)

 

$

(20,349

)

 

$

(0.62

)

 

$

(0.88

)

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Amortization of intangibles

 

 

932

 

 

 

26

 

 

 

 

 

Stock-based compensation

 

 

2,416

 

 

 

3,442

 

 

 

 

 

Acquisition-related expenses

 

 

238

 

 

 

554

 

 

 

 

 

Restructuring-related and other charges (1)

 

 

—

 

 

 

1,809

 

 

 

 

 

Change in fair value of earnout liability

 

 

570

 

 

 

—

 

 

 

 

 

Income tax impact of adjustments (2)

 

 

—

 

 

 

—

 

 

 

 

 

Adjusted

 

$

(10,422

)

 

$

(14,518

)

 

$

(0.45

)

 

$

(0.63

)

     

(1)

Charges represent the costs associated with workforce reductions and associated costs 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 2024 and 2023.

 

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