- Results Reflect Strong Fourth Quarter 2024 Revenue Growth of
5.5%; Full-Year Revenue Growth of 6.4%
- Company Provides 2025 Growth Outlook
- Recently Announced Strategic Collaboration with Yuwell to
Expand Product Portfolio, Global Reach
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 and the
full year ended December 31, 2024.
“2024 was a stellar year for Inogen. With our new leadership
team in place, we returned the Company to growth, achieved
significant milestones, and made meaningful steps towards
profitability,” said Kevin Smith, President and Chief Executive
Officer. “With our leading portfolio of innovative respiratory care
products, the pending introduction of Simeox in the U.S. and our
recently announced collaboration with Yuwell, we believe we are
well positioned to drive future growth, profitability and sustained
success.”
Fourth Quarter 2024 Financial Results
Total revenue in the fourth quarter of 2024 increased 5.5% to
$80.1 million from $75.9 million in the fourth quarter of 2023,
primarily driven by higher demand and new customers in
international and domestic business-to-business sales. This
performance was partially offset by lower direct-to-consumer sales
and lower rental revenue as a result of the Company’s initiatives
to enhance overall profitability.
Total gross margin of 45.3% in the fourth quarter of 2024
improved from 37.1% in the comparable period in 2023, driven
primarily by lower raw material costs and operational
efficiencies.
Total operating loss of $11.4 million improved from a loss of
$29.0 million in the fourth quarter of 2023. The year-over-year
improvement was primarily due to material cost reductions and
operational efficiencies, and a favorable comparison to the
prior-year period which included certain acquisition-related and
other one-time costs.
GAAP net loss for the fourth quarter of 2024 was $9.8 million
compared to $26.6 million in the fourth quarter of 2023. Adjusted
net loss for the fourth quarter of 2024 was $5.8 million, an
improvement from adjusted net loss of $19.4 million in the fourth
quarter of 2023.
Adjusted EBITDA was negative $3.6 million in the fourth quarter
of 2024 compared to negative $17.3 million in the fourth quarter of
2023.
Cash, cash equivalents, and restricted cash were $117.4 million
as of December 31, 2024, with no debt outstanding.
Full Year 2024 Financial Results
Total revenue in the full year 2024 increased 6.4% to $335.7
million from $315.7 million in 2023, primarily driven by higher
demand and new customers in international and domestic
business-to-business sales, partially offset by lower
direct-to-consumer sales and rental revenue.
Total gross margin of 46.1% in the full year 2024 improved from
40.1% in the comparable period in 2023, driven primarily by lower
raw material costs and operational efficiencies compared to the
prior year period.
Total operating loss of $42.5 million in the full year 2024
improved from a loss of $109.4 million in the full year of 2023.
The year-over-year improvement was primarily due to lower goodwill
impairment, material cost reductions, and an increase in sales
revenue.
GAAP net loss for the full year 2024 was $35.9 million compared
to GAAP net loss of $102.4 million for the full year 2023. Adjusted
net loss for the full year 2024 was $20.4 million, an improvement
from adjusted net loss of $48.3 million in the full year 2023.
Adjusted EBITDA was negative $9.5 million for the full year 2024
compared to negative $37.8 million for the full year 2023.
Reconciliations of adjusted EBITDA and adjusted net loss for the
three and twelve months ended December 31, 2024 and 2023 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 Non-GAAP Financial Measures.”
First Quarter and Full Year 2025 Financial Outlook
For the first quarter 2025, Inogen expects revenue in the range
of $79 million to $81 million, reflecting 1% to 4% reported growth
relative to the Company’s first quarter 2024 revenue.
For the full year 2025, Inogen expects revenue in the range of
$352 million to $355 million, reflecting 5% to 6% growth relative
to the Company’s 2024 revenue.
For the full year 2025, Inogen expects gross margin in the range
of 43% to 45% of total revenue, reflecting channel mix shift and
costs associated with the introduction of Simeox and Yuwell.
Yuwell Collaboration and Closing of Related Equity
Investment
As previously announced, in January 2025, the Company entered
into a strategic collaboration with Jiangsu Yuyue Medical Equipment
& Supply Co., Ltd. (“Yuwell”). In connection with the strategic
collaboration, the Company entered into a Securities Purchase
Agreement with Yuwell (Hong Kong) Holdings Limited, a wholly-owned
subsidiary of Yuwell, pursuant to which the subsidiary agreed to
purchase 2,626,425 shares of the Company’s common stock, par value
$0.001 per share, for an aggregate purchase price of approximately
$27.2 million. The equity investment closed on February 21, 2025.
Following the closing of the equity investment, Yuwell holds
approximately 9.9% of the Company’s outstanding common stock.
Quarterly Conference Call Information
On Tuesday, February 25, 2025, the Company will host a
conference call at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern
Time.
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. A live audio webcast
and archived recording of the conference call will be available to
all interested parties through the News / Events page on the Inogen
Investor Relations website. 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 4,
2025. To access the replay, dial (877) 660-6853 or (201) 612-7415
and reference Conference ID: 13750589.
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.
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 respiratory therapy devices used to deliver care to
patients suffering from chronic respiratory conditions. Inogen
partners with patients, prescribers, home medical equipment
providers, and distributors to make its respiratory therapy
products widely available, allowing patients the chance to manage
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. All statements contained in this communication that are not
historical facts, including, but not limited to, statements
regarding Inogen’s future business plans, market opportunities,
financial outlook, growth strategies, and anticipated operational
results, are forward-looking statements. Words such as “aims,”
“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 and uncertainties relating to
the potential benefits of Inogen’s collaboration with Yuwell;
market acceptance of its products; competition; its sales,
marketing and distribution capabilities; its planned sales,
marketing, and research and development activities; and risks
associated with international operations. For a detailed discussion
of these and other risks that could impact Inogen’s operations and
financial performance, please refer to the “Risk Factors” section
of its Annual Report on Form 10-K for the period ended December 31,
2023, its Quarterly Reports on Form 10-Q for the calendar quarters
ended March 31, 2024, June 30, 2024, and September 30, 2024 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, 2024, and December 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.
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,
2024
2023
2024
2023
Revenue
Sales revenue
$
66,307
$
59,404
$
278,756
$
251,607
Rental revenue
13,774
16,492
56,949
64,053
Total revenue
80,081
75,896
335,705
315,660
Cost of revenue
Cost of sales revenue
35,499
39,936
148,655
158,636
Cost of rental revenue, including
depreciation of $3,038 and $3,213 for the three months ended and
$12,592 and $12,893 for the twelve months ended, respectively
8,293
7,802
32,309
30,325
Total cost of revenue
43,792
47,738
180,964
188,961
Gross profit
36,289
28,158
154,741
126,699
Operating expense
Research and development
5,898
6,714
21,610
20,840
Sales and marketing
24,155
25,653
103,069
107,091
General and administrative
17,622
24,773
72,578
75,260
Impairment charges
—
—
—
32,894
Total operating expense
47,675
57,140
197,257
236,085
Loss from operations
(11,386
)
(28,982
)
(42,516
)
(109,386
)
Other income (expense)
Interest income, net
1,413
1,602
5,190
6,574
Other income (expense)
(114
)
292
850
468
Total other income, net
1,299
1,894
6,040
7,042
Loss before provision (benefit) for
income taxes
(10,087
)
(27,088
)
(36,476
)
(102,344
)
Provision (benefit) for income
taxes
(330
)
(533
)
(588
)
105
Net loss
(9,757
)
(26,555
)
(35,888
)
(102,449
)
Other comprehensive income (loss), net
of tax
Change in foreign currency translation
adjustment
(2,923
)
1,933
(2,590
)
1,358
Change in net unrealized losses on foreign
currency hedging
(324
)
(78
)
(324
)
—
Less: reclassification adjustment for net
gains included in net loss
324
25
324
—
Total net change in unrealized losses on
foreign currency hedging
—
(53
)
—
—
Change in net unrealized gains (losses) on
marketable securities
(297
)
(72
)
(136
)
110
Total other comprehensive income
(loss), net of tax
(3,220
)
1,808
(2,726
)
1,468
Comprehensive loss
$
(12,977
)
$
(24,747
)
$
(38,614
)
$
(100,981
)
Basic net loss per share attributable
to common stockholders (1)
$
(0.41
)
$
(1.14
)
$
(1.52
)
$
(4.42
)
Diluted net loss per share attributable
to common stockholders (1) (2)
$
(0.41
)
$
(1.14
)
$
(1.52
)
$
(4.42
)
Weighted-average number of shares used
in calculating net loss per share attributable to common
stockholders:
Basic shares of common stock
23,846,666
23,313,495
23,654,395
23,176,098
Diluted shares of common stock
23,846,666
23,313,495
23,654,395
23,176,098
(1)
Reconciliations of net loss attributable
to common stockholders basic and diluted can be found in Inogen’s
Annual Report on Form 10-K for the fiscal year ended December 31,
2024 to be filed with the Securities and Exchange Commission.
(2)
Due to a net loss for the three and twelve
months ended December 31, 2024 and December 31, 2023, diluted loss
per share is the same as basic.
Consolidated Balance
Sheets
(unaudited)
(amounts in thousands, except
share and per share amounts)
December 31,
December 31,
2024
2023
Assets
Current assets
Cash and cash equivalents
$
113,795
$
125,492
Marketable securities
—
2,979
Restricted cash
3,620
—
Accounts receivable, net
29,563
42,241
Inventories, net
24,812
21,840
Income tax receivable
538
669
Prepaid expenses and other current
assets
13,123
13,846
Total current assets
185,451
207,067
Property and equipment, net
44,400
50,316
Goodwill
9,465
10,057
Intangible assets, net
30,493
34,591
Operating lease right-of-use
asset
18,295
20,338
Other assets
8,081
3,825
Total assets
$
296,185
$
326,194
Liabilities and stockholders'
equity
Current liabilities
Accounts payable and accrued expenses
$
27,153
$
30,142
Accrued payroll
17,189
11,066
Warranty reserve - current
9,736
9,628
Operating lease liability - current
2,812
3,653
Earnout liability
13,000
10,000
Deferred revenue - current
6,654
7,980
Income tax payable
142
27
Total current liabilities
76,686
72,496
Long-term liabilities
Warranty reserve - noncurrent
16,350
13,850
Operating lease liability - noncurrent
16,594
18,270
Deferred revenue - noncurrent
5,747
8,227
Deferred tax liability
6,948
8,539
Total liabilities
122,325
121,382
Stockholders' equity
Common stock
24
23
Additional paid-in capital
328,174
320,513
Accumulated deficit
(152,837
)
(116,949
)
Accumulated other comprehensive income
(loss)
(1,501
)
1,225
Total stockholders' equity
173,860
204,812
Total liabilities and stockholders'
equity
$
296,185
$
326,194
Condensed Consolidated Cash
Flow
(unaudited)
(amounts in thousands)
Years Ended December
31,
2024
2023
Cash flows from operating
activities
Net loss
$
(35,888
)
$
(102,449
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation and amortization
21,004
18,152
Loss on rental units and other assets
4,535
4,508
Gain on sale of former rental assets
(165
)
(84
)
Provision for sales revenue returns and
doubtful accounts
10,890
10,730
Provision for inventory losses
233
2,691
Loss on purchase commitments
448
2,057
Stock-based compensation expense
7,397
7,427
Deferred income taxes
(1,150
)
(251
)
Change in fair value of earnout
liability
3,000
6,822
Impairment charges
—
32,894
Changes in operating assets and
liabilities
(4,390
)
14,269
Net cash provided by (used in) operating
activities
5,914
(3,234
)
Cash flows from investing
activities
Purchases of available-for-sale
securities
(32,657
)
(26,869
)
Maturities of available-for-sale
securities
35,500
24,000
Investment in intangible assets
(2,090
)
(494
)
Investment in property and equipment
(3,360
)
(5,218
)
Production and purchase of rental
equipment
(11,643
)
(21,299
)
Proceeds from sale of former assets
275
198
Acquisition of business, net of cash
acquired
—
(29,633
)
Net cash used in investing activities
(13,975
)
(59,315
)
Cash flows from financing
activities
Proceeds from stock options exercised
—
384
Proceeds from employee stock purchases
811
1,094
Payment of employment taxes related to
release of restricted stock
(546
)
(518
)
Net cash provided by financing
activities
265
960
Effect of exchange rates on cash
(281
)
67
Net decrease in cash, cash equivalents
and restricted cash
$
(8,077
)
$
(61,522
)
Supplemental Financial
Information
(unaudited)
(in thousands, except units
and patients)
Three months ended December
31,
Change 2024 vs. 2023
Constant
Currency Change
Revenue by region and category
2024
2023
$
%
%
Business-to-business domestic sales
$
22,397
$
18,051
$
4,346
24.1
%
24.1
%
Business-to-business international
sales
28,313
21,524
6,789
31.5
%
28.2
%
Direct-to-consumer domestic sales
15,597
19,829
(4,232
)
-21.3
%
-21.3
%
Direct-to-consumer domestic rentals
13,774
16,492
(2,718
)
-16.5
%
-16.5
%
Total revenue
$
80,081
75,896
4,185
5.5
%
4.6
%
Additional financial measures
Units Sold
38,400
34,100
Net rental patients as of period-end
51,000
51,900
Twelve months ended December
31,
Change 2024 vs. 2023
Constant Currency
Change
Revenue by region and category
2024
2023
$
%
%
Business-to-business domestic sales
$
83,555
$
66,196
$
17,359
26.2
%
26.2
%
Business-to-business international
sales
117,207
89,401
27,806
31.1
%
30.2
%
Direct-to-consumer domestic sales
77,994
96,010
(18,016
)
-18.8
%
-18.8
%
Direct-to-consumer domestic rentals
56,949
64,053
(7,104
)
-11.1
%
-11.1
%
Total revenue
$
335,705
315,660
20,045
6.4
%
6.1
%
Additional financial measures
Units Sold
157,500
130,500
Net rental patients as of period-end
51,000
51,900
Reconciliation of U.S. GAAP to
Non-GAAP Financial Measures
(unaudited)
(in thousands)
Three months ended
Twelve months ended
December 31,
December 31,
Non-GAAP EBITDA and Adjusted
EBITDA
2024
2023
2024
2023
Net loss (GAAP)
$
(9,757
)
$
(26,555
)
$
(35,888
)
$
(102,449
)
Non-GAAP adjustments:
Interest income, net
(1,413
)
(1,602
)
(5,190
)
(6,574
)
Provision (benefit) for income taxes
(330
)
(533
)
(588
)
105
Depreciation and amortization
5,080
5,144
21,004
18,152
EBITDA (non-GAAP)
(6,420
)
(23,546
)
(20,662
)
(90,766
)
Stock-based compensation
1,693
(1,057
)
7,397
7,427
Acquisition-related expenses
—
432
784
2,413
Restructuring-related and other
charges
—
—
—
3,426
Impairment charges
—
—
—
32,894
Change in fair value of earnout
liability
1,170
6,822
3,000
6,822
Adjusted EBITDA (non-GAAP)
$
(3,557
)
$
(17,349
)
$
(9,481
)
$
(37,784
)
Three months ended December
31,
Net Loss
Diluted EPS
Non-GAAP Adjusted Net Loss and Diluted
EPS
2024
2023
2024
2023
Financial Results (GAAP)
$
(9,757
)
$
(26,555
)
$
(0.41
)
$
(1.14
)
Non-GAAP adjustments:
Amortization of intangibles
1,103
918
Stock-based compensation
1,693
(1,057
)
Acquisition-related expenses
—
432
Change in fair value of earnout
liability
1,170
6,822
Adjusted
$
(5,791
)
$
(19,440
)
$
(0.24
)
$
(0.83
)
Twelve months ended December
31,
Net Loss
Diluted EPS
Non-GAAP Adjusted Net Loss and Diluted
EPS
2024
2023
2024
2023
Financial Results (GAAP)
$
(35,888
)
$
(102,449
)
$
(1.52
)
$
(4.42
)
Non-GAAP adjustments:
Amortization of intangibles
4,330
1,202
Stock-based compensation
7,397
7,427
Acquisition-related expenses
784
2,413
Restructuring-related and other charges
(1)
—
3,426
Impairment charges
—
32,894
Change in fair value of earnout
liability
3,000
6,822
Adjusted
$
(20,377
)
$
(48,265
)
$
(0.86
)
$
(2.08
)
(1)
Charges represent the costs associated
with workforce reductions and other restructuring-related
activities.
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version on businesswire.com: https://www.businesswire.com/news/home/20250225701496/en/
ir@inogen.net
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