INGN Stock Gains Following Q1 Earnings Beat, Revenues Up Y/Y

Core Insights - Inogen, Inc. reported an adjusted loss per share of 11 cents for Q1 2025, an improvement from a loss of 45 cents in the same period last year and better than the Zacks Consensus Estimate of a loss of 52 cents [1] - The company achieved revenues of $82.3 million for Q1 2025, reflecting a year-over-year increase of 5.5% and surpassing the Zacks Consensus Estimate by 3.3% [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 7.5% year-over-year to $13.8 million, while sales revenues increased by 8.5% to $68.5 million [4] Regional and Segment Analysis - Domestic business-to-business sales rose by 29.9% year-over-year to $21.5 million, driven by new customer demand [5] - International business-to-business sales increased by 22.9% year-over-year to $31.9 million, with a 27.9% increase at constant exchange rates [5] - Domestic direct-to-consumer sales fell by 26.8% year-over-year to $15 million [6] Profitability and Expenses - Adjusted gross profit increased by 4.9% year-over-year to $39.4 million, but the adjusted gross margin contracted by 20 basis points to 47.9% [7] - Sales and marketing expenses decreased by 11.8% to $23.8 million, R&D expenses fell by 38.7% to $4 million, and general and administrative expenses decreased by 5.2% to $16.2 million [8] Financial Position - Inogen ended Q1 2025 with cash and cash equivalents of $118.9 million, up from $113.8 million at the end of 2024 [9] - The company had no debt on its balance sheet, but net cash used in operating activities increased to $16.8 million from $4.7 million a year ago [10] Future Guidance - For Q2 2025, Inogen expects revenues between $89 million and $91 million, reflecting flat to 3% growth from Q2 2024 [11] - For the full year 2025, the revenue outlook is set at $352 million to $355 million, indicating a growth of 5-6% from 2024 [12] Strategic Developments - Inogen finalized a strategic collaboration with Jiangsu Yuyue Medical Equipment & Supply Co., Ltd., aimed at expanding its product portfolio and enhancing its innovation pipeline [14]