Fourth quarter 2023 revenue of $75.9 million;
full-year 2023 revenue of $315.7 million
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, relative to
$88.1 million in the fourth quarter of 2022, primarily due to a
decrease in domestic business-to-business sales and
direct-to-consumer sales, partially offset by higher rental
revenue.
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
compared to $88.0 million in the fourth quarter of 2022. The
decrease was primarily due to the loss on disposal of an intangible
asset of $52.2 million in the prior-year period, partially offset
by the change in fair value of the earnout liabilities and certain
one-time costs related to the CEO transition and bad debt
expense.
GAAP net loss for the fourth quarter of 2023 was $26.6 million
compared to GAAP net loss of $56.6 million in the fourth quarter of
2022. Adjusted net loss for the fourth quarter of 2023 was $19.4
million compared to adjusted net loss of $13.0 million in the
fourth quarter of 2022.
Adjusted EBITDA was a negative $17.3 million in the fourth
quarter of 2023 compared to a negative $10.6 million in the fourth
quarter of 2022.
Cash, cash equivalents and marketable securities were $128.5
million as of December 31, 2023, with no debt outstanding.
Full-Year 2023 Financial Results
Total revenue was $315.7 million, compared to $377.2 million in
2022, primarily due to declines in direct-to-consumer sales as well
as domestic and international business-to-business sales, partially
offset by higher rental revenue.
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 compared to $238.8 million for the full-year 2022.
GAAP net loss for full-year 2023 was $102.4 million compared to
GAAP net loss of $83.8 million for full-year 2022. Adjusted net
loss for full-year 2023 was $48.3 million compared to adjusted net
loss of $26.2 million for full-year 2022.
Adjusted EBITDA was a negative $37.8 million for the full-year
2023 compared to a negative $13.5 million for the full-year
2022.
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 to $74
million, reflecting 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 Non-US
callers (201) 689-8589
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 and $2,950 for the three months ended and
$12,893 and $11,103 for the twelve months ended, respectively
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
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