Total Revenue of $72.2 Million In Line with
Company Expectations
Rental Revenue Year-over-Year Growth of 25%
Inogen, Inc. (Nasdaq: INGN), a medical technology company
offering innovative respiratory products for use in the homecare
setting, today announced financial results for the quarter ended
March 31, 2023.
First Quarter 2023 Highlights
All comparisons are to the prior year period unless otherwise
noted.
- Reported total revenue of $72.2 million, in line with company
expectations, reflecting a decrease of 10.2%; currency fluctuations
accounted for 1.7% of the decrease.
- Continued progress on rental strategy led to a 25.4% increase
in rental revenue, primarily due to higher rental patients on
service and higher reimbursement rates.
- GAAP net loss of $20.3 million, adjusted net loss of $14.5
million and adjusted EBITDA was a loss of $11.8 million, all
slightly better than company expectations.
- Increased total covered lives to approximately 160 million with
the recent additions of two large private healthcare payers in
support of Inogen’s prescriber channel and overall rental
strategy.
- Notified that we will be granted reimbursement in France for
Rove 6.
“First quarter revenue was in line with our internal
expectations. We remain confident that our focus on revenue growth
and disciplined execution will support our return to profitability
and result in an anticipated positive adjusted EBITDA by Q4 2023,”
said Nabil Shabshab, President and Chief Executive Officer. “We
believe that 2023 is an inflection point for Inogen with continued
successful execution on our channel strategy, further advancement
of our innovation agenda, and focus on returning to
profitability.”
First Quarter 2023 Financial Results
First quarter total revenue decreased 10.2% to $72.2 million
from $80.4 million in the first quarter of 2022, primarily due to a
decrease in direct-to-consumer sales and international
business-to-business sales, partially offset by higher domestic
business-to-business sales and higher rental revenue.
Total gross margin was 42.6% in the first quarter of 2023 versus
43.5% in the comparative period in 2022. The decline was driven
primarily by channel mix, partially offset by improved
manufacturing productivity and higher average selling prices.
Total operating expense for the quarter, excluding restructuring
costs, increased 4.6%. Total operating expense with restructuring
costs was $52.6 million compared to $48.6 million in the first
quarter of 2022, representing an increase of 8.3%.
GAAP net loss for the first quarter of 2023 was $20.3 million
compared to GAAP net loss of $14.2 million in the first quarter of
2022. Adjusted net loss was $14.5 million compared to adjusted net
loss of $8.7 million in the first quarter of 2022.
Adjusted EBITDA was a negative $11.8 million in the first
quarter of 2023 compared to a negative $5.0 million in the first
quarter of 2022.
Cash, cash equivalents and marketable securities were $174.6
million as of March 31, 2023, and no debt outstanding.
A reconciliation of adjusted EBITDA and adjusted net loss for
the three months ended March 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 “Reconciliation of U.S. GAAP to Other
Non-GAAP Financial Measures.”
Quarterly Conference Call Information
Inogen will issue first quarter 2023 financial results after the
market closes on Thursday, May 4, 2023. On the same day, the
Company will host a conference call at 2:00 pm Pacific Time / 5:00
pm Eastern Time. Individuals interested in listening to the
conference call may do so by dialing:
US domestic callers (888) 645-4404 Non-US
callers (862) 298-0702
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 May 11,
2023. To access the replay, dial (877) 660-6853 or (201) 612-7415
and reference Conference ID: 13737870.
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, Inogen’s expectations for future
revenue growth and profitability; and expectations for positive
adjusted EBITDA by Q4 2023. 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 arising from the possibility that Inogen
will not realize anticipated revenue or expenses will not decrease;
risks related cost inflation for components; the risks our
innovation pipeline will not produce meaningful results; the impact
of changes in reimbursement rates and reimbursement and regulatory
policies; and the possible loss of key employees, customers, or
suppliers; the risk that expenses and costs 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 year ended December 31, 2022, and in its other filings with
the Securities and Exchange Commission. Additional information will
also be set forth in Inogen’s Quarterly Report on Form 10-Q for the
period ended March 31, 2023, to be filed 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 months
ended March 31, 2022, and March 31, 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 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
March 31,
2023
2022
Revenue
Sales revenue
$
55,887
$
67,402
Rental revenue
16,275
12,983
Total revenue
72,162
80,385
Cost of revenue
Cost of sales revenue
33,964
39,500
Cost of rental revenue, including
depreciation of $3,078 and $2,638, respectively
7,465
5,879
Total cost of revenue
41,429
45,379
Gross profit
30,733
35,006
Operating expense
Research and development
5,344
5,364
Sales and marketing
28,441
28,039
General and administrative
18,863
15,189
Total operating expense
52,648
48,592
Loss from operations
(21,915
)
(13,586
)
Other income (expense)
Interest income
1,525
29
Other income (expense)
237
(433
)
Total other income (expense),
net
1,762
(404
)
Loss before provision for income
taxes
(20,153
)
(13,990
)
Provision for income taxes
196
224
Net loss
$
(20,349
)
$
(14,214
)
Other comprehensive income (loss), net
of tax
Change in foreign currency translation
adjustment
170
(203
)
Change in net unrealized gains (losses) on
foreign currency hedging
—
(528
)
Less: reclassification adjustment for net
(gains) losses included in net income
—
454
Total net change in unrealized gains
(losses) on foreign currency hedging
—
(74
)
Change in net unrealized gains (losses) on
marketable securities
69
(8
)
Total other comprehensive income
(loss), net of tax
239
(285
)
Comprehensive loss
$
(20,110
)
$
(14,499
)
Basic net loss per share attributable
to common stockholders (1)
$
(0.88
)
$
(0.62
)
Diluted net loss per share attributable
to common stockholders (1) (2)
$
(0.88
)
$
(0.62
)
Weighted-average number of shares used
in calculating net loss per share attributable to common
stockholders:
Basic common shares
23,009,617
22,754,421
Diluted common shares
23,009,617
22,754,421
(1)
Reconciliations of net loss
attributable to common stockholders basic and diluted can be found
in Inogen’s Quarterly Report on Form 10-Q to be filed with the
Securities and Exchange Commission.
(2)
Due to a net loss for the three
months ended March 31, 2023 and March 31, 2022 diluted loss per
share is the same as basic.
Consolidated Balance
Sheets
(unaudited)
(amounts in thousands)
March 31,
December 31,
2023
2022
Assets
Current assets
Cash and cash equivalents
$
164,137
$
187,014
Marketable securities
10,428
—
Accounts receivable, net
53,885
62,725
Inventories, net
38,822
34,093
Income tax receivable
1,859
1,626
Prepaid expenses and other current
assets
14,016
19,187
Total current assets
283,147
304,645
Property and equipment, net
45,942
43,269
Goodwill
32,887
32,852
Operating lease right-of-use asset
21,108
21,653
Other assets
2,590
2,622
Total assets
$
385,674
$
405,041
Liabilities and stockholders'
equity
Current liabilities
Accounts payable and accrued expenses
$
32,183
$
33,974
Accrued payroll
10,757
11,190
Warranty reserve - current
8,075
7,790
Operating lease liability - current
3,570
3,515
Deferred revenue - current
8,794
8,880
Total current liabilities
63,379
65,349
Warranty reserve - noncurrent
12,018
12,123
Operating lease liability - noncurrent
19,179
19,764
Deferred revenue - noncurrent
9,801
10,399
Total liabilities
104,377
107,635
Stockholders' equity
Common stock
23
23
Additional paid-in capital
316,127
312,126
Accumulated deficit
(34,849
)
(14,500
)
Accumulated other comprehensive loss
(4
)
(243
)
Total stockholders' equity
281,297
297,406
Total liabilities and stockholders'
equity
$
385,674
$
405,041
Condensed Consolidated Cash
Flow
(unaudited)
(amounts in thousands)
Three months ended March
31,
2023
2022
Cash flows from operating
activities
Net loss
$
(20,349
)
$
(14,214
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
4,086
5,760
Loss on rental units and other assets
1,099
706
Gain on sale of former rental assets
(21
)
(52
)
Provision for sales revenue returns and
doubtful accounts
2,258
2,953
Provision for inventory losses
603
934
Stock-based compensation expense
3,442
2,665
Change in fair value of earnout
liability
—
630
Changes in operating assets and
liabilities
2,581
(17,480
)
Net cash used in operating activities
(6,301
)
(18,098
)
Cash flows from investing
activities
Purchases of available-for-sale
securities
(10,359
)
—
Investment in property and equipment
(1,076
)
(1,366
)
Production and purchase of rental
equipment
(5,733
)
(2,777
)
Proceeds from sale of former assets
58
91
Net cash used in investing activities
(17,110
)
(4,052
)
Cash flows from financing
activities
Proceeds from stock options exercised
384
29
Proceeds from employee stock purchases
630
915
Payment of employment taxes related to
release of restricted stock
(455
)
(1,052
)
Net cash provided by (used in) financing
activities
559
(108
)
Effect of exchange rates on cash
(25
)
133
Net decrease in cash and cash
equivalents
$
(22,877
)
$
(22,125
)
Supplemental Financial
Information
(unaudited)
(in thousands, except units
and patients)
Three months ended
March 31,
2023
2022
Revenue by region and category
Business-to-business domestic sales
$
12,585
$
5,101
Business-to-business international
sales
18,972
27,941
Direct-to-consumer domestic sales
24,330
34,360
Direct-to-consumer domestic rentals
16,275
12,983
Total revenue
$
72,162
$
80,385
Additional financial measures
Units sold
26,900
30,400
Net rental patients as of period-end
45,800
43,200
Reconciliation of U.S. GAAP to
Other Non-GAAP Financial Measures
(unaudited)
(in thousands)
Three months ended
March 31,
Non-GAAP EBITDA and Adjusted
EBITDA
2023
2022
Net loss (GAAP)
$
(20,349
)
$
(14,214
)
Non-GAAP adjustments:
Interest income
(1,525
)
(29
)
Provision for income taxes
196
224
Depreciation and amortization
4,086
5,760
EBITDA (non-GAAP)
(17,592
)
(8,259
)
Stock-based compensation
3,442
2,665
Acquisition-related expenses
554
—
Restructuring-related and other charges
(1)
1,809
—
Change in fair value of earnout
liability
—
630
Adjusted EBITDA (non-GAAP)
$
(11,787
)
$
(4,964
)
Three months ended March
31,
Net Loss
Diluted EPS
Non-GAAP Adjusted Net Loss and Diluted
EPS
2023
2022
2023
2022
Financial Results (GAAP)
$
(20,349
)
$
(14,214
)
$
(0.88
)
$
(0.62
)
Non-GAAP adjustments:
Amortization of intangibles
26
2,147
Stock-based compensation
3,442
2,665
Acquisition-related expenses
554
Restructuring-related and other charges
(1)
1,809
—
Change in fair value of earnout
liability
—
630
Income tax impact of adjustments (2)
—
87
Adjusted
$
(14,518
)
$
(8,685
)
$
(0.63
)
$
(0.38
)
(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
-1.6% for 2022, which is due to the recording of a valuation
allowance.
Three months ended March
31,
Non-GAAP constant currency
revenue
2023
2022
Business-to-business domestic sales
$
12,585
$
5,101
Business-to-business international
sales
18,972
27,941
Direct-to-consumer domestic sales
24,330
34,360
Direct-to-consumer domestic rentals
16,275
12,983
Total revenue (GAAP)
72,162
80,385
Hedging gains
—
600
Total revenue, excluding hedging effect
(non-GAAP)
72,162
79,785
Exchange rate impact
860
1,424
Constant currency revenues (non-GAAP)
$
73,022
$
81,209
Revenue growth (GAAP)
-10.2
%
Constant currency revenue growth
(non-GAAP)
-8.5
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230504005281/en/
Agnes Lee ir@inogen.net
Inogen (NASDAQ:INGN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Inogen (NASDAQ:INGN)
Historical Stock Chart
From Apr 2023 to Apr 2024