Exhibit 99.1

 

img132417817_0.jpg 

 

Inogen Announces Second Quarter 2024 Financial Results

GOLETA, Calif., – August 6, 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 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.

Contact

ir@inogen.net

 


 

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.