Inogen Announces Second Quarter 2024 Financial Results

Rhea-AI Summary

Inogen (Nasdaq: INGN) reported its Q2 2024 financial results, showing a 6.1% increase in total revenue to $88.8 million. The growth was primarily driven by higher demand in international and domestic business-to-business sales. Gross margin improved to 48.1% from 40.7% in Q2 2023. However, the company still reported a GAAP net loss of $5.6 million, albeit reduced from $9.8 million in Q2 2023. Adjusted EBITDA turned positive at $1.3 million. Inogen maintains a strong financial position with $121.2 million in cash and no debt. The company projects full-year 2024 revenue between $325 million to $330 million, representing 3% to 5% growth over the previous year.

Positive

• Total revenue increased 6.1% year-over-year to $88.8 million
• Gross margin improved to 48.1% from 40.7% in Q2 2023
• Adjusted EBITDA turned positive at $1.3 million, compared to negative $3.2 million in Q2 2023
• Cash position remains strong at $121.2 million with no debt
• Full-year 2024 revenue guidance projects 3% to 5% growth

Negative

• GAAP net loss of $5.6 million, although improved from $9.8 million in Q2 2023
• Operating expenses increased 8.7% to $49.8 million
• Lower direct-to-consumer sales and rental revenue reported

Insights

Financial Analyst

Inogen's Q2 2024 results show mixed signals. While revenue increased by 6.1% to $88.8 million, the company still reported a net loss of $5.6 million. However, this loss narrowed from $9.8 million in Q2 2023, indicating improvement. The gross margin expansion from 40.7% to 48.1% is a positive sign, driven by lower component costs and favorable reserve adjustments.

The shift to positive adjusted EBITDA of $1.3 million from negative $3.2 million last year suggests progress towards profitability. With $121.2 million in cash and no debt, Inogen's balance sheet remains strong. The full-year revenue guidance of $325-330 million implies modest growth of 3-5%, which may be conservative given the Q2 performance.

Medical Device Industry Expert

Inogen's performance reflects the evolving landscape of the home respiratory care market. The 6.1% revenue growth, primarily driven by international and domestic B2B sales, indicates expanding market reach. However, the decline in direct-to-consumer sales suggests challenges in this channel, possibly due to competition or changing consumer preferences.

The company's focus on strategic initiatives and innovation pipeline is important in a competitive medical device industry. The improved gross margin, despite sales channel mix headwinds, demonstrates effective cost management and potential pricing power. However, the 8.7% increase in operating expenses, mainly due to personnel costs, warrants attention as it could impact profitability if not matched by proportional revenue growth.

08/06/2024 - 04:05 PM

GOLETA, Calif.--(BUSINESS WIRE)-- 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 June 30, 2024.

“I am proud of the performance of our team in the first half of 2024. We have made meaningful progress on our strategic initiatives, driving top-line growth and advancing the profile of the business toward profitability,” said Kevin Smith, President and Chief Executive Officer. “We will also continue to advance our innovation pipeline and look forward to delivering best-in-class products to more respiratory patients around the world.”

Second Quarter 2024 Financial Results

Second quarter total revenue increased 6.1% to $88.8 million from $83.6 million in the second quarter of 2023, primarily driven by higher demand and new customers in international and domestic business-to-business sales, partially offset by lower direct-to-consumer sales and rental revenue.

Total gross margin was 48.1% in the second quarter of 2024 versus 40.7% in the comparative period in 2023. The increase was driven primarily by lower premiums paid for components and favorable adjustments to reserves, partially offset by sales channel mix.

Total operating expense for the quarter was $49.8 million compared to $45.8 million in the second quarter of 2023, representing an increase of 8.7%. The increase was primarily due to higher personnel-related expenses.

GAAP net loss for the second quarter of 2024 was $5.6 million compared to GAAP net loss of $9.8 million in the second quarter of 2023. Adjusted net loss was $1.6 million compared to adjusted net loss of $5.8 million in the second quarter of 2023.

Adjusted EBITDA was a positive $1.3 million in the second quarter of 2024 compared to a negative $3.2 million in the second quarter of 2023.

Cash, cash equivalents, marketable securities and restricted cash were $121.2 million as of June 30, 2024, and no debt outstanding.

Reconciliations of adjusted EBITDA and adjusted net loss for the three and six months ended June 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 expects revenue for the full year 2024 to range from approximately $325 million to $330 million, which represents approximately 3% to 5% growth over the Company’s prior year revenue.

Quarterly Conference Call Information

On Tuesday, August 6, 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 August 13, 2024. To access the replay, dial (877) 660-6853 or (201) 612-7415 and reference Conference ID: 13747098.

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 six months ended June 30, 2024, and June 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. 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 (benefit) 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								Six months ended
		June 30,								June 30,
		2024				2023				2024				2023
Revenue
Sales revenue		$	74,425			$	68,343			$	137,520			$	124,230
Rental revenue			14,340				15,292				29,270				31,567
Total revenue			88,765				83,635				166,790				155,797
Cost of revenue
Cost of sales revenue			38,320				42,028				73,564				75,992
Cost of rental revenue, including depreciation of $3,128 and $3,328 for the three months ended and $6,307 and $6,316 for the six months ended, respectively			7,708				7,563				16,118				15,028
Total cost of revenue			46,028				49,591				89,682				91,020
Gross profit			42,737				34,044				77,108				64,777
Operating expense
Research and development			5,616				4,293				12,194				9,637
Sales and marketing			25,617				26,906				52,553				55,347
General and administrative			18,568				14,613				35,699				33,476
Total operating expense			49,801				45,812				100,446				98,460
Loss from operations			(7,064	)			(11,768	)			(23,338	)			(33,683	)
Other income (expense)
Interest income, net			1,333				1,646				2,736				3,171
Other income, net			134				337				277				574
Total other income, net			1,467				1,983				3,013				3,745
Loss before benefit for income taxes			(5,597	)			(9,785	)			(20,325	)			(29,938	)
Provision (benefit) for income taxes			(7	)			41				(157	)			237
Net loss			(5,590	)			(9,826	)			(20,168	)			(30,175	)
Other comprehensive income (loss), net of tax
Change in foreign currency translation adjustment			(286	)			7				(1,321	)			177
Change in net unrealized gains (losses) on foreign currency hedging			—				7				—				7
Change in net unrealized gains (losses) on marketable securities			(40	)			64				(42	)			133
Total other comprehensive income (loss), net of tax			(326	)			78				(1,363	)			317
Comprehensive loss		$	(5,916	)		$	(9,748	)		$	(21,531	)		$	(29,858	)
Basic net loss per share attributable to common stockholders (1)		$	(0.24	)		$	(0.42	)		$	(0.86	)		$	(1.31	)
Diluted net loss per share attributable to common stockholders (1) (2)		$	(0.24	)		$	(0.42	)		$	(0.86	)		$	(1.31	)
Weighted-average number of shares used in calculating net loss per share attributable to common stockholders:
Basic common shares			23,614,970				23,146,117				23,508,284				23,078,244
Diluted common shares			23,614,970				23,146,117				23,508,284				23,078,244

	(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 six months ended June 30, 2024 and June 30, 2023, diluted loss per share is the same as basic.

Consolidated Balance Sheets
(unaudited)
(amounts in thousands)
		June 30,				December 31,
		2024				2023
Assets
Current assets
Cash and cash equivalents		$	97,920			$	125,492
Marketable securities			19,767				2,979
Restricted cash			3,559				—
Accounts receivable, net			36,037				42,241
Inventories, net			24,048				21,840
Income tax receivable			1,050				669
Prepaid expenses and other current assets			12,410				13,846
Total current assets			194,791				207,067
Property and equipment, net			47,022				50,316
Goodwill			9,764				10,057
Intangibles assets, net			33,585				34,591
Operating lease right-of-use asset			19,951				20,338
Other assets			3,806				3,825
Total assets		$	308,919			$	326,194
Liabilities and stockholders' equity
Current liabilities
Accounts payable and accrued expenses		$	26,783			$	30,142
Accrued payroll			13,746				11,066
Warranty reserve - current			9,759				9,628
Operating lease liability - current			3,332				3,653
Earnout liability			11,180				10,000
Deferred revenue - current			7,385				7,980
Income tax payable			—				27
Total current liabilities			72,185				72,496
Warranty reserve - noncurrent			15,897				13,850
Operating lease liability - noncurrent			18,106				18,270
Deferred revenue - noncurrent			7,066				8,227
Deferred tax liability - noncurrent			8,070				8,539
Total liabilities			121,324				121,382
Stockholders' equity
Common stock			24				23
Additional paid-in capital			324,826				320,513
Accumulated deficit			(137,117	)			(116,949	)
Accumulated other comprehensive income (loss)			(138	)			1,225
Total stockholders' equity			187,595				204,812
Total liabilities and stockholders' equity		$	308,919			$	326,194

Condensed Consolidated Cash Flow
(unaudited)
(amounts in thousands)
		Six months ended June 30,
		2024				2023
Cash flows from operating activities
Net loss		$	(20,168	)		$	(30,175	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization			10,610				8,394
Loss on rental units and other assets			2,158				2,138
Gain on sale of former rental assets			(63	)			(40	)
Provision for sales revenue returns and doubtful accounts			4,615				4,488
Provision for inventory losses			74				989
Loss on purchase commitments			(68	)			—
Stock-based compensation expense			4,230				6,705
Deferred income taxes			(223	)			—
Change in fair value of earnout liability			1,180				—
Changes in operating assets and liabilities			(405	)			5,230
Net cash provided by (used in) operating activities			1,940				(2,271	)
Cash flows from investing activities
Purchases of available-for-sale securities			(32,330	)			(12,826	)
Maturities of available-for-sale securities			15,500				10,500
Investment in intangible assets			(2,090	)			(494	)
Investment in property and equipment			(1,360	)			(3,116	)
Production and purchase of rental equipment			(5,651	)			(11,810	)
Proceeds from sale of former assets			111				96
Net cash used in investing activities			(25,820	)			(17,650	)
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			(286	)			(488	)
Net cash provided by financing activities			84				526
Effect of exchange rates on cash			(217	)			68
Net decrease in cash, cash equivalents and restricted cash		$	(24,013	)		$	(19,327	)

Supplemental Financial Information
(unaudited)
(in thousands, except units and patients)
		Three months ended June 30,						Change as reported								Constant Currency Change
		2024			2023			$				%				%
Revenue by region and category
Business-to-business domestic sales		$	21,287		$	18,272		$	3,015				16.5	%			16.5	%
Business-to-business international sales			30,531			23,292			7,239				31.1	%			31.4	%
Direct-to-consumer domestic sales			22,607			26,779			(4,172	)			-15.6	%			-15.6	%
Direct-to-consumer domestic rentals			14,340			15,292			(952	)			-6.2	%			-6.2	%
Total revenue		$	88,765		$	83,635		$	5,130				6.1	%			6.2	%
Additional financial measures
Units sold			41,300			34,100
Net rental patients as of period-end			51,900			48,900
		Six months ended June 30,						Change as reported								Constant Currency Change
		2024			2023			$				%				%
Revenue by region and category
Business-to-business domestic sales		$	37,806		$	30,857		$	6,949				22.5	%			22.5	%
Business-to-business international sales			56,566			42,264			14,302				33.8	%			33.2	%
Direct-to-consumer domestic sales			43,148			51,109			(7,961	)			-15.6	%			-15.6	%
Direct-to-consumer domestic rentals			29,270			31,567			(2,297	)			-7.3	%			-7.3	%
Total revenue		$	166,790		$	155,797		$	10,993				7.1	%			6.9	%
Additional financial measures
Units sold			75,200			61,000
Net rental patients as of period-end			51,900			48,900

Reconciliation of U.S. GAAP to Other Non-GAAP Financial Measures
(unaudited)
(in thousands)
		Three months ended								Six months ended
		June 30,								June 30,
Non-GAAP EBITDA and Adjusted EBITDA		2024				2023				2024				2023
Net loss (GAAP)		$	(5,590	)		$	(9,826	)		$	(20,168	)		$	(30,175	)
Non-GAAP adjustments:
Interest income, net			(1,333	)			(1,646	)			(2,736	)			(3,171	)
Provision (benefit) for income taxes			(7	)			41				(157	)			237
Depreciation and amortization			5,345				4,308				10,610				8,394
EBITDA (non-GAAP)			(1,585	)			(7,123	)			(12,451	)			(24,715	)
Stock-based compensation			1,814				3,263				4,230				6,705
Acquisition-related expenses			419				467				657				1,021
Restructuring-related and other charges (1)			—				201				—				2,010
Change in fair value of earnout liability			610				—				1,180				—
Adjusted EBITDA (non-GAAP)		$	1,258			$	(3,192	)		$	(6,384	)		$	(14,979	)

		Three months ended June 30,
		Net Loss								Diluted EPS
Non-GAAP Adjusted Net Loss and Diluted EPS		2024				2023				2024				2023
Financial Results (GAAP)		$	(5,590	)		$	(9,826	)		$	(0.24	)		$	(0.42	)
Non-GAAP adjustments:
Amortization of intangibles			1,188				53
Stock-based compensation			1,814				3,263
Acquisition-related expenses			419				467
Restructuring-related and other charges (1)			—				201
Change in fair value of earnout liability			610				—
Income tax impact of adjustments (2)			—				—
Adjusted		$	(1,559	)		$	(5,842	)		$	(0.07	)		$	(0.25	)
		Six months ended June 30,
		Net Loss								Diluted EPS
Non-GAAP Adjusted Net Loss and Diluted EPS		2024				2023				2024				2023
Financial Results (GAAP)		$	(20,168	)		$	(30,175	)		$	(0.86	)		$	(1.31	)
Non-GAAP adjustments:
Amortization of intangibles			2,120				79
Stock-based compensation			4,230				6,705
Acquisition-related expenses			657				1,021
Restructuring-related and other charges (1)			—				2,010
Change in fair value of earnout liability			1,180				—
Income tax impact of adjustments (2)			—				—
Adjusted		$	(11,981	)		$	(20,360	)		$	(0.51	)		$	(0.88	)

	(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 six months ended June 30, 2024 and 2023.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240806055307/en/

ir@inogen.net

Source: Inogen, Inc.

FAQ

What was Inogen's (INGN) revenue for Q2 2024?

Inogen's total revenue for Q2 2024 was $88.8 million, representing a 6.1% increase from $83.6 million in Q2 2023.

Did Inogen (INGN) report a profit or loss in Q2 2024?

Inogen reported a GAAP net loss of $5.6 million in Q2 2024, an improvement from the $9.8 million loss in Q2 2023.

What is Inogen's (INGN) revenue guidance for full-year 2024?

Inogen expects full-year 2024 revenue to range from $325 million to $330 million, representing approximately 3% to 5% growth over the previous year.

How much cash does Inogen (INGN) have as of June 30, 2024?

As of June 30, 2024, Inogen reported $121.2 million in cash, cash equivalents, marketable securities, and restricted cash, with no debt outstanding.