INGN Stock Gains Following Q3 Earnings Beat, Adjusted Gross Margin Up

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 $88.8 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 $74.9 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 $32.3 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 $49.1 million, with an adjusted operating loss of $4.5 million compared to a loss of $10.5 million in the prior year [8] Financial Position - The company ended Q3 2024 with cash and cash equivalents of $105.7 million, up from $97.9 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 $0.1 million a year ago [9] Guidance and Outlook - Inogen revised its revenue outlook for the full year to between $329 million and $331 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]