November 7, 2024 ındgen Q3 2024 Supplemental Financial Information Use of 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 t ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was $89 million, reflecting a 6% year-over-year growth [9] - The company generated $3 million of positive cash flow, marking the second consecutive quarter of positive cash flow [17] - GAAP net loss was $6 million, compared to a loss of $45.7 million in Q3 2023, with an adjusted net loss of $2.6 million compared to a loss of $8.5 million in the prior year [30] - Total gross margin increased to 46.5%, up 630 basis points from the same period last year [27] Business Line Data and Key Metrics Changes - Direct-to-consumer (DTC) sales decreased 23.2% to $19.2 million from $25.1 million in the prior period [25] - Domestic business-to-business (B2B) revenue increased 35.1% to $23.4 million, driven by increased demand from new customers [26] - International B2B revenue increased 26.2% to $32.3 million, primarily driven by increased demand with new and existing customers [26] - Rental revenue decreased 13.1% to $13.9 million, primarily due to lower average billing rates [26] Market Data and Key Metrics Changes - The company experienced a negative 20 basis points impact on total revenue from foreign exchange [24] - The DTC channel is expected to improve as the company completes its first full year with a streamlined sales force [12] Company Strategy and Development Direction - The company is focused on driving topline growth, advancing its path to profitability, and expanding its innovation pipeline [8] - Recent changes in sales structure aim to reduce friction between business channels and scale overall growth [16] - The launch of the Rove 4, a new portable oxygen concentrator (POC), is part of the innovation strategy to enhance product offerings [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's progress and future performance, particularly in the DTC channel [34] - The company anticipates better year-over-year performance in DTC as it continues to implement strategic initiatives [12] - Management highlighted the importance of managing costs and improving cash flow generation moving forward [40] Other Important Information - The company raised its full-year 2024 revenue expectations to between $329 million and $331 million, reflecting approximately 4% to 5% year-over-year growth [32] - The company has no debt outstanding and had cash and equivalents of $124.3 million as of September 30, 2024 [31] Q&A Session Summary Question: Insights on DTC sales force size and productivity - Management noted a planned reduction in sales force size but expects increased productivity per representative [35] Question: Expectations for top and bottom line into 2025 - Management is optimistic about sustainable cash generation and profitability, focusing on strategic initiatives [38] Question: Stabilization of DTC rep headcount - Management indicated that rep count will stabilize in the middle of next year, with improved productivity expected [44] Question: Clarification on Simeox and FDA discussions - Management confirmed positive interactions with the FDA but did not confirm any filings for clearance yet [46] Question: Reception of the Rove 4 product - Management indicated that the Rove 4 is expected to be more influential in the DTC channel, with a focus on capturing patients earlier in their treatment [50]

For the quarter ended September 2024, Inogen (INGN) reported revenue of $88.83 million, up 5.8% over the same period last year. EPS came in at -$0.25, compared to -$1.97 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $83.68 million, representing a surprise of +6.16%. The company delivered an EPS surprise of +50.98%, with the consensus EPS estimate being -$0.51.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how ...

Company Performance - Inogen reported a quarterly loss of $0.25 per share, which was better than the Zacks Consensus Estimate of a loss of $0.51, and a significant improvement from a loss of $1.97 per share a year ago [1] - The company achieved an earnings surprise of 50.98%, having previously been expected to post a loss of $0.54 per share but actually reporting a loss of $0.24, resulting in a surprise of 55.56% [2] - Inogen's revenues for the quarter ended September 2024 were $88.83 million, exceeding the Zacks Consensus Estimate by 6.16% and up from $83.97 million year-over-year [3] Stock Performance - Inogen shares have increased approximately 74.3% since the beginning of the year, outperforming the S&P 500's gain of 24.3% [4] - The current consensus EPS estimate for the upcoming quarter is -$0.55 on revenues of $76.61 million, and for the current fiscal year, it is -$1.92 on revenues of $326.98 million [8] Industry Outlook - The Medical - Instruments industry, to which Inogen belongs, is currently ranked in the top 25% of over 250 Zacks industries, indicating a favorable outlook [9] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Inogen's stock performance [6]

Revenue Performance - Total revenue for Q3 2024 increased by 5.8% to $88.8 million from $84.0 million in Q3 2023, driven by higher demand and new customer gains [2]. - For the full year 2024, revenue is expected to range from approximately $329 million to $331 million, representing a growth of about 4% to 5% over the previous year [6]. - Total revenue for the three months ended September 30, 2024 was $88,834,000, representing a 5.8% increase compared to $83,967,000 in the same period of 2023 [16]. - Sales revenue for Q3 2024 was $74.9 million, up from $68.0 million in Q3 2023, while rental revenue decreased to $13.9 million from $16.0 million [13]. Profitability and Loss - GAAP net loss for Q3 2024 was $6.0 million, significantly reduced from $45.7 million in Q3 2023 [4]. - The company reported a basic net loss per share of $0.25 for Q3 2024, compared to $1.97 in Q3 2023 [13]. - Comprehensive loss for Q3 2024 was $4.1 million, a significant improvement from $46.4 million in Q3 2023 [13]. - Net loss for the nine months ended September 30, 2024 was $26,131,000, significantly improved from a net loss of $75,894,000 for the same period in 2023 [15]. - The company reported a GAAP net loss of $26,131 for the nine months ended September 30, 2024, compared to a loss of $75,894 in 2023 [19]. - Non-GAAP adjusted net loss was $14,586 for the nine months ended September 30, 2024, down from $28,825 in 2023 [19]. - Diluted EPS for 2024 was $(1.11), compared to $(3.28) in 2023 [19]. Cost Management - Total gross margin improved to 46.5% in Q3 2024, up from 40.2% in Q3 2023, primarily due to lower raw material costs [3]. - Total operating expenses decreased by 39.0% to $49.1 million in Q3 2024 compared to $80.5 million in Q3 2023, largely due to a one-time goodwill impairment charge in the prior year [3]. - Adjusted EBITDA was positive at $0.5 million in Q3 2024, compared to a negative $5.5 million in Q3 2023 [4]. - Adjusted EBITDA for the three months ended September 30, 2024 was $460,000, compared to an adjusted EBITDA loss of $5,456,000 in the same period of 2023 [17]. Sales Breakdown - Business-to-business domestic sales increased by 35.1% to $23,352,000 for the three months ended September 30, 2024, compared to $17,288,000 in 2023 [16]. - The company reported a significant increase in business-to-business international sales, which rose by 26.2% to $32,328,000 for the three months ended September 30, 2024, compared to $25,613,000 in 2023 [16]. - Direct-to-consumer domestic sales decreased by 23.2% to $19,249,000 for the three months ended September 30, 2024, down from $25,072,000 in 2023 [16]. - Units sold increased from 35,400 in the three months ended September 30, 2023 to 43,900 in the same period of 2024, a growth of approximately 23.5% [16]. Cash and Assets - Cash, cash equivalents, marketable securities, and restricted cash totaled $124.3 million as of September 30, 2024, an increase of $3.0 million from Q2 2024, with no debt outstanding [5]. - Cash and cash equivalents decreased from $125,492,000 as of December 31, 2023 to $105,690,000 as of September 30, 2024, a decline of approximately 15.8% [14]. - Total assets decreased from $326,194,000 in December 31, 2023 to $306,172,000 as of September 30, 2024, a decline of approximately 6.1% [14]. - Total current liabilities remained relatively stable, decreasing slightly from $72,496,000 in December 31, 2023 to $72,396,000 as of September 30, 2024 [14]. Other Financial Metrics - Amortization of intangibles increased to $3,227 in 2024 from $284 in 2023 [19]. - Stock-based compensation decreased to $5,704 in 2024 from $8,484 in 2023 [19]. - Acquisition-related expenses were $784 in 2024, down from $1,981 in 2023 [19]. - Restructuring-related charges were $3,426 in 2023, with no corresponding charge in 2024 [19]. - Impairment charges were $32,894 in 2023, with no impairment charges reported in 2024 [19]. - The change in fair value of earnout liability was $1,830 in 2024, with no corresponding figure in 2023 [19]. - The effective tax rate for the adjustments was 0% [19].

Inogen, Inc. (INGN) has witnessed strong momentum in the past six months period. Shares of the company have surged 46.8% compared with 1.8% growth of the industry. The S&P 500 composite has risen 10% during the same time frame. With healthy fundamentals and strong growth opportunities, this Zacks Rank #2 (Buy) company appears to be a solid wealth creator for its investors at the moment. Headquartered in Goleta, CA, Inogen develops, manufactures, and markets portable oxygen concentrators (POCs) used by patie ...

For the quarter ended June 2024, Inogen (INGN) reported revenue of $88.77 million, up 6.1% over the same period last year. EPS came in at -$0.24, compared to -$0.42 in the year-ago quarter. The reported revenue represents a surprise of +7.80% over the Zacks Consensus Estimate of $82.34 million. With the consensus EPS estimate being -$0.54, the EPS surprise was +55.56%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their ...

Inogen (INGN) came out with a quarterly loss of $0.24 per share versus the Zacks Consensus Estimate of a loss of $0.54. This compares to loss of $0.42 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 55.56%. A quarter ago, it was expected that this produces oxygen concentrators for patients suffering from chronic respiratory conditions would post a loss of $0.76 per share when it actually produced a loss of $0.62, delivering a ...

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The renowned provider of POCs has a market capitalization of $212.4 million. The company projects 50.2% growth for 2024 and expects to witness continued improvements in its business. Inogen's P/S ratio of 0.7X compares favorably with the industry's 3.1X. Downsides The Zacks Consensus Estimate for second-quarter 2024 revenues is pegged at $82.3 million, suggesting a 1.6% decline from the year-ago reported number. DexCom, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 22.9%. DX ...