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INGN Stock Gains Following Q3 Earnings Beat, Adjusted Gross Margin Up
INGNInogen(INGN) ZACKS·2024-11-11 16:31

Core Insights - Inogen, Inc. reported an adjusted loss per share of 11 cents for Q3 2024, an improvement from a loss of 36 cents in the same quarter last year and better than the Zacks Consensus Estimate of a loss of 51 cents per share [1] - The company achieved revenues of 88.8millionforQ32024,reflectingayear−over−yearincreaseof5.888.8 million for Q3 2024, reflecting a year-over-year increase of 5.8% and surpassing the Zacks Consensus Estimate by 6.2% [2] Revenue Performance - The revenue growth was primarily driven by increased demand and new customer acquisitions in domestic and international business-to-business channels, although this was partially offset by declines in direct-to-consumer sales and rental revenues [3] - Rental revenues decreased by 13.1% year-over-year to 13.9 million, while sales revenues increased by 10.2% to 74.9million[4]−Domesticbusiness−to−businesssalesroseby35.174.9 million [4] - Domestic business-to-business sales rose by 35.1% to 16.5 million, and international business-to-business sales increased by 26.2% to 32.3million[5]ProfitabilityandMargins−Inogen′sadjustedgrossprofitincreasedby20.132.3 million [5] Profitability and Margins - Inogen's adjusted gross profit increased by 20.1% year-over-year to 44.6 million, with an adjusted gross margin expansion of 598 basis points to 50.2% [7] - Adjusted operating expenses rose by 3.2% year-over-year to 49.1million,withanadjustedoperatinglossof49.1 million, with an adjusted operating loss of 4.5 million compared to a loss of 10.5millionintheprioryear[8]FinancialPosition−ThecompanyendedQ32024withcashandcashequivalentsof10.5 million in the prior year [8] Financial Position - The company ended Q3 2024 with cash and cash equivalents of 105.7 million, up from 97.9millionattheendofQ12024,andhadnodebtonitsbalancesheet[9]−Cumulativenetcashprovidedbyoperatingactivitieswas97.9 million at the end of Q1 2024, and had no debt on its balance sheet [9] - Cumulative net cash provided by operating activities was 8.9 million, a significant improvement from a net cash usage of 0.1millionayearago[9]GuidanceandOutlook−Inogenreviseditsrevenueoutlookforthefullyeartobetween0.1 million a year ago [9] Guidance and Outlook - Inogen revised its revenue outlook for the full year to between 329 million and 331million,indicatinggrowthof4−5331 million, indicating growth of 4-5% from 2023 revenues, up from the previous estimate of 325 million to $330 million [10] - The company recently launched the Inogen Rove 4 Portable Oxygen Concentrator in the U.S. market, which is expected to positively impact future performance [11]