Inogen Announces Fourth Quarter and Full-Year 2023 Financial Results
Inogen, Inc. (INGN) reported fourth-quarter 2023 revenue of $75.9 million and full-year 2023 revenue of $315.7 million. The company highlighted a focus on revenue growth, profitability, and innovation in 2024. Notable financial results included a decrease in total revenue due to lower business-to-business and direct-to-consumer sales, offset by higher rental revenue. The company reported a GAAP net loss of $26.6 million for Q4 2023 and $102.4 million for full-year 2023. Adjusted net loss was $19.4 million for Q4 2023 and $48.3 million for full-year 2023. Inogen expects first-quarter 2024 revenue of $73 to $74 million, representing 1% to 3% growth compared to Q1 2023.
Positive
Strong focus on revenue growth, profitability, and innovation in 2024.
Decrease in total revenue due to lower business-to-business and direct-to-consumer sales, offset by higher rental revenue.
GAAP net loss of $26.6 million for Q4 2023 and $102.4 million for full-year 2023.
Adjusted net loss of $19.4 million for Q4 2023 and $48.3 million for full-year 2023.
First-quarter 2024 revenue expected to be $73 to $74 million, showing 1% to 3% growth compared to Q1 2023.
Analyzing Inogen, Inc.'s financial results reveals a notable year-over-year decline in fourth-quarter revenue, from $88.1 million to $75.9 million. This drop is attributed to decreased sales in both domestic business-to-business and direct-to-consumer channels, which could signal challenges in market penetration or competitive pressures. However, the increase in rental revenue may indicate a strategic pivot or diversification of revenue streams, which could cushion the company against future sales volatility.
The improvement in gross margin, from 33.5% to 37.1%, suggests effective cost management, particularly in reducing premiums paid for components and managing labor and overhead costs. This could reflect well on the company's operational efficiency and ability to maintain profitability despite revenue challenges. The substantial reduction in operating expenses, due largely to the absence of a prior-year intangible asset disposal, has also contributed to a less negative bottom line. However, the increase in adjusted net loss and negative Adjusted EBITDA year-over-year raises concerns about the company's ongoing profitability and financial health.
With no debt and $128.5 million in cash and marketable securities, Inogen appears to maintain a solid liquidity position, which is crucial for sustaining operations and investing in growth initiatives such as the introduction of Physio-Assist to the U.S. market. Nevertheless, investors should monitor the effectiveness of these growth strategies in reversing the current downward revenue trend.
From a market perspective, Inogen's performance reflects broader trends in the medical technology sector, where innovation and market adaptation are key drivers of success. The company's focus on advancing its innovation pipeline and bringing new products like Physio-Assist to market is a positive sign for future competitiveness. However, the reported declines in direct-to-consumer and business-to-business sales raise questions about current market positioning and product demand.
Investors should consider the competitive landscape, reimbursement rates and regulatory environment when evaluating Inogen's market potential. The company's ability to navigate these factors while effectively commercializing new technologies will be critical to its long-term market share and revenue growth. The appointment of new executives in commercial and financial roles suggests an organizational response to these challenges, potentially bringing fresh strategies to improve market performance.
Within the medical technology industry, Inogen's focus on respiratory products for homecare is particularly relevant given the aging population and increasing prevalence of respiratory conditions. The company's emphasis on innovation could be a response to the growing demand for home-based medical solutions, a trend accelerated by the COVID-19 pandemic.
The higher rental revenue indicates a possible shift in consumer preference towards rental models over outright purchases, which could be due to economic factors or a desire for flexibility. This shift could represent a long-term change in consumer behavior within the medical device market, affecting how companies like Inogen structure their business models and revenue expectations.
Moreover, the mention of higher reimbursement rates as a factor offsetting some cost increases is significant, as it highlights the importance of insurance and government reimbursement policies on the profitability of medical technology companies. Inogen's ability to navigate these policies and secure favorable reimbursement rates will be vital for its financial sustainability.
02/27/2024 - 04:05 PM
Fourth quarter 2023 revenue of $75.9 million $315.7 million
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 fourth quarter and the full-year ended December 31, 2023.
“I am excited for the future of Inogen. As we progress into 2024, we are focused on positioning the business for revenue growth and long-term profitability while advancing our innovation pipeline and working to bring Physio-Assist to the U.S. market,” said Kevin Smith, President and Chief Executive Officer. “We have a strong management team with the recent additions of Grégoire Ramade as Chief Commercial Officer and Michael Bourque as Chief Financial Officer, and we are confident in our ability to deliver value for shareholders.”
Fourth Quarter 2023 Financial Results
Fourth quarter total revenue was $75.9 million $88.1 million
Total gross margin was 37.1% in the fourth quarter of 2023 versus 33.5% in the comparative period in 2022. The increase was driven primarily by lower premiums paid for components and labor and overhead costs.
Total operating expense for the quarter was $57.1 million $88.0 million $52.2 million
GAAP net loss for the fourth quarter of 2023 was $26.6 million $56.6 million $19.4 million $13.0 million
Adjusted EBITDA was a negative $17.3 million $10.6 million
Cash, cash equivalents and marketable securities were $128.5 million
Full-Year 2023 Financial Results
Total revenue was $315.7 million $377.2 million
Total gross margin was 40.1% for the full-year 2023 versus 40.7% in 2022. The decline was primarily due to sales channel mix and higher servicing costs, partially offset by lower premiums paid for components and labor and overhead costs as well as higher reimbursement rates. Additional impacts included higher cost of other materials and warranty cost per unit sold.
Total operating expense for the full-year 2023 was $236.1 million $238.8 million
GAAP net loss for full-year 2023 was $102.4 million $83.8 million $48.3 million $26.2 million
Adjusted EBITDA was a negative $37.8 million $13.5 million
Reconciliations of adjusted EBITDA and adjusted net loss for the three and twelve months ended December 31, 2023 and 2022 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 “Non-GAAP Financial Measures.”
First Quarter 2024 Financial Outlook
For the first quarter 2024, Inogen expects revenue of $73 $74 million 1% to 3% reported growth relative to the first quarter 2023.
Quarterly Conference Call Information
Inogen will issue fourth quarter and full-year 2023 financial results after the market closes on Tuesday, February 27, 2024. On the same day, the company will host a conference call beginning at 2:00 pm PT / 5:00 pm ET.
Individuals interested in listening to the conference call may do so by dialing:
US domestic callers (877) 841-3961
Please reference Inogen to join the call. To listen to a live webcast, please visit the Investor Relations section of Inogen's website at: http://investor.inogen.com/ . 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 March 5, 2024. To access the replay, dial (877) 660-6853 or (201) 612-7415 and reference Conference ID: 13743411.
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. For more information, visit http://investor.inogen.com/ .
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, working to bring Physio-Assist to the U.S. market, and Inogen’s first quarter 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 September 30, 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 and twelve months ended December 31, 2023, and December 31, 2022. 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
Twelve months ended
December 31,
December 31,
2023
2022
2023
2022
Revenue
Sales revenue
$
59,404
$
73,184
$
251,607
$
320,549
Rental revenue
16,492
14,907
64,053
56,692
Total revenue
75,896
88,091
315,660
377,241
Cost of revenue
Cost of sales revenue
39,936
51,753
158,636
197,805
Cost of rental revenue, including depreciation of $3,213 $2,950 $12,893 $11,103
7,802
6,867
30,325
25,903
Total cost of revenue
47,738
58,620
188,961
223,708
Gross profit
28,158
29,471
126,699
153,533
Operating expense
Research and development
6,714
5,934
20,840
21,943
Sales and marketing
25,653
28,606
107,091
120,767
General and administrative
24,773
1,259
75,260
43,905
Loss on disposal of intangible asset
—
52,161
—
52,161
Impairment charges
—
—
32,894
—
Total operating expense
57,140
87,960
236,085
238,776
Loss from operations
(28,982
)
(58,489
)
(109,386
)
(85,243
)
Other income (expense)
Interest income
1,602
1,715
6,574
2,837
Other income (expense)
292
305
468
(862
)
Total other income, net
1,894
2,020
7,042
1,975
Loss before provision (benefit) for income taxes
(27,088
)
(56,469
)
(102,344
)
(83,268
)
Provision (benefit) for income taxes
(533
)
141
105
504
Net loss
(26,555
)
(56,610
)
(102,449
)
(83,772
)
Other comprehensive income (loss), net of tax
Change in foreign currency translation adjustment
1,933
856
1,358
(597
)
Change in net unrealized gains (losses) on foreign currency hedging
(78
)
(1,461
)
—
(3,130
)
Less: reclassification adjustment for net (gains) losses included in net income
25
784
—
1,990
Total net change in unrealized gains (losses) on foreign currency hedging
(53
)
(677
)
—
(1,140
)
Change in net unrealized gains (losses) on marketable securities
(72
)
9
110
25
Total other comprehensive income (loss), net of tax
1,808
188
1,468
(1,712
)
Comprehensive loss
$
(24,747
)
$
(56,422
)
$
(100,981
)
$
(85,484
)
Basic net loss per share attributable to common stockholders (1)
$
(1.14
)
$
(2.47
)
$
(4.42
)
$
(3.67
)
Diluted net loss per share attributable to common stockholders (1) (2)
$
(1.14
)
$
(2.47
)
$
(4.42
)
$
(3.67
)
Weighted-average number of shares used in calculating net loss per share attributable to common stockholders:
Basic common shares
23,313,495
22,926,276
23,176,098
22,852,571
Diluted common shares
23,313,495
22,926,276
23,176,098
22,852,571
(1)
Reconciliations of net loss attributable to common stockholders basic and diluted can be found in Inogen’s Annual Report on Form 10-K to be filed with the Securities and Exchange Commission.
(2)
Due to a net loss for the three and twelve months ended December 31, 2023 and December 31, 2022, diluted loss per share is the same as basic.
Consolidated Balance Sheets
(unaudited)
(amounts in thousands)
December 31,
December 31,
2023
2022
Assets
Current assets
Cash and cash equivalents
$
125,492
$
187,014
Marketable securities
2,979
—
Accounts receivable, net
42,241
62,725
Inventories, net
21,840
34,093
Income tax receivable
669
1,626
Prepaid expenses and other current assets
13,846
19,187
Total current assets
207,067
304,645
Property and equipment, net
50,316
43,269
Goodwill
10,057
32,852
Intangibles and other non-current assets
34,591
177
Operating lease right-of-use asset
20,338
21,653
Other assets
3,825
2,445
Total assets
$
326,194
$
405,041
Liabilities and stockholders' equity
Current liabilities
Accounts payable and accrued expenses
$
30,142
$
33,974
Accrued payroll
11,066
11,190
Warranty reserve - current
9,628
7,790
Operating lease liability - current
3,653
3,515
Earnout liability
10,000
—
Deferred revenue - current
7,980
8,880
Income tax payable
27
—
Total current liabilities
72,496
65,349
Warranty reserve - noncurrent
13,850
12,123
Operating lease liability - noncurrent
18,270
19,764
Deferred revenue - noncurrent
8,227
10,399
Deferred tax liability - noncurrent
8,539
—
Total liabilities
121,382
107,635
Stockholders' equity
Common stock
23
23
Additional paid-in capital
320,513
312,126
Accumulated deficit
(116,949
)
(14,500
)
Accumulated other comprehensive income (loss)
1,225
(243
)
Total stockholders' equity
204,812
297,406
Total liabilities and stockholders' equity
$
326,194
$
405,041
Condensed Consolidated Cash Flow
(unaudited)
(amounts in thousands)
Years Ended December 31,
2023
2022
Cash flows from operating activities
Net loss
$
(102,449
)
$
(83,772
)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
18,152
23,514
Loss on rental units and other assets
4,508
3,095
Gain on sale of former rental assets
(84
)
(154
)
Provision for sales revenue returns and doubtful accounts
10,730
13,024
Provision for inventory losses
2,691
2,423
Loss on purchase commitments
2,057
—
Stock-based compensation expense
7,427
12,283
Deferred income taxes
(251
)
—
Change in fair value of earnout liability
6,822
(15,386
)
Loss on disposal of intangible asset
—
52,161
Impairment charges
32,894
—
Changes in operating assets and liabilities
14,269
(44,720
)
Net cash used in operating activities
(3,234
)
(37,532
)
Cash flows from investing activities
Purchases of available-for-sale securities
(26,869
)
—
Maturities of available-for-sale securities
24,000
10,014
Investment in intangible assets
(494
)
—
Investment in property and equipment
(5,218
)
(3,337
)
Production and purchase of rental equipment
(21,299
)
(17,885
)
Proceeds from sale of former assets
198
331
Acquisition of business, net of cash acquired
(29,633
)
—
Net cash used in investing activities
(59,315
)
(10,877
)
Cash flows from financing activities
Proceeds from stock options exercised
384
44
Proceeds from employee stock purchases
1,094
1,691
Payment of employment taxes related to release of restricted stock
(518
)
(1,355
)
Net cash provided by financing activities
960
380
Effect of exchange rates on cash
67
(481
)
Net decrease in cash and cash equivalents
$
(61,522
)
$
(48,510
)
Supplemental Financial Information
(unaudited)
(in thousands, except units and patients)
Three months ended
December 31,
Change as reported
Constant
Currency
Change
2023
2022
$
%
%
Revenue by region and category
Business-to-business domestic sales
$
18,051
$
27,190
$
(9,139
)
-33.6
%
-33.6
%
Business-to-business international sales
21,524
20,703
821
4.0
%
2.6
%
Direct-to-consumer domestic sales
19,829
25,291
(5,462
)
-21.6
%
-21.6
%
Direct-to-consumer domestic rentals
16,492
14,907
1,585
10.6
%
10.6
%
Total revenue
$
75,896
$
88,091
$
(12,195
)
-13.8
%
-14.3
%
Additional financial measures
Units sold
34,100
43,500
Net rental patients as of period-end
51,900
45,600
Twelve months ended
December 31,
Change as reported
Constant
Currency
Change
2023
2022
$
%
%
Revenue by region and category
Business-to-business domestic sales
$
66,196
$
86,049
$
(19,853
)
-23.1
%
-23.1
%
Business-to-business international sales
89,401
101,163
(11,762
)
-11.6
%
-11.2
%
Direct-to-consumer domestic sales
96,010
133,337
(37,327
)
-28.0
%
-28.0
%
Direct-to-consumer domestic rentals
64,053
56,692
7,361
13.0
%
13.0
%
Total revenue
$
315,660
$
377,241
$
(61,581
)
-16.3
%
-16.2
%
Additional financial measures
Units sold
130,500
170,500
Net rental patients as of period-end
51,900
45,600
Reconciliation of U.S. GAAP to Other Non-GAAP Financial Measures
(unaudited)
(in thousands)
Three months ended
Twelve months ended
December 31,
December 31,
Non-GAAP EBITDA and Adjusted EBITDA
2023
2022
2023
2022
Net loss (GAAP)
$
(26,555
)
$
(56,610
)
$
(102,449
)
$
(83,772
)
Non-GAAP adjustments:
Interest income, net
(1,602
)
(1,715
)
(6,574
)
(2,837
)
Provision for income taxes
(533
)
141
105
504
Depreciation and amortization
5,144
5,978
18,152
23,514
EBITDA (non-GAAP)
(23,546
)
(52,206
)
(90,766
)
(62,591
)
Stock-based compensation
(1,057
)
3,098
7,427
12,283
Acquisition-related expenses
432
—
2,413
—
Restructuring-related and other charges (1)
—
—
3,426
—
Impairment charges
—
—
32,894
—
Change in fair value of earnout liability
6,822
(13,687
)
6,822
(15,386
)
Loss on disposal of intangible asset
—
52,161
—
52,161
Adjusted EBITDA (non-GAAP)
$
(17,349
)
$
(10,634
)
$
(37,784
)
$
(13,533
)
Three months ended December 31,
Net Loss
Diluted EPS
Non-GAAP Adjusted Net Loss and Diluted EPS
2023
2022
2023
2022
Financial Results (GAAP)
$
(26,555
)
$
(56,610
)
$
(1.14
)
$
(2.47
)
Non-GAAP adjustments:
Amortization of intangibles
918
2,022
Stock-based compensation
(1,057
)
3,098
Acquisition-related expenses
432
—
Change in fair value of earnout liability
6,822
(13,687
)
Loss on disposal of intangible asset
—
52,161
Income tax impact of adjustments (2)
—
—
Adjusted
$
(19,440
)
$
(13,016
)
$
(0.83
)
$
(0.57
)
Twelve months ended December 31,
Net Loss
Diluted EPS
Non-GAAP Adjusted Net Loss and Diluted EPS
2023
2022
2023
2022
Financial Results (GAAP)
$
(102,449
)
$
(83,772
)
$
(4.42
)
$
(3.67
)
Non-GAAP adjustments:
Amortization of intangibles
1,202
8,469
Stock-based compensation
7,427
12,283
Acquisition-related expenses
2,413
—
Restructuring-related and other charges (1)
3,426
—
Impairment charges
32,894
—
Change in fair value of earnout liability
6,822
(15,386
)
Loss on disposal of intangible asset
—
52,161
Income tax impact of adjustments (2)
—
—
Adjusted
$
(48,265
)
$
(26,245
)
$
(2.08
)
$
(1.15
)
(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 2023 and 2022.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240227727365/en/
ir@inogen.net
Source: Inogen, Inc.
What was Inogen's (INGN) revenue for the fourth quarter of 2023?
Inogen reported revenue of $75.9 million for the fourth quarter of 2023.
Who are the recent additions to Inogen's management team?
Grégoire Ramade as Chief Commercial Officer and Michael Bourque as Chief Financial Officer are recent additions to Inogen's management team.
What was Inogen's (INGN) GAAP net loss for the full-year 2023?
Inogen reported a GAAP net loss of $102.4 million for the full-year 2023.
What is Inogen's (INGN) financial outlook for the first quarter of 2024?
Inogen expects revenue of $73 to $74 million for the first quarter of 2024, reflecting 1% to 3% growth compared to Q1 2023.
Where can individuals listen to Inogen's conference call for the fourth quarter and full-year 2023 financial results?
Individuals can listen to Inogen's conference call by dialing the provided numbers or visiting the Investor Relations section of Inogen's website.
