Inogen Inc (INGN) Q3 2024 Earnings Call Highlights: Strong B2B Growth Amidst DTC Challenges

In This Article:

  • Total Revenue: $88.8 million, a 5.8% increase year-over-year.

  • Direct to Consumer Sales: Decreased 23.2% to $19.2 million.

  • Domestic Business to Business Revenue: Increased 35.1% to $23.4 million.

  • International Business to Business Revenue: Increased 26.2% to $32.3 million.

  • Rental Revenue: Decreased 13.1% to $13.9 million.

  • Total Gross Margin: 46.5%, an increase of 630 basis points.

  • Sales Revenue Gross Margin: 47.2%, an increase of 1,000 basis points.

  • Rental Revenue Gross Margin: 43.2%, a decline of 990 basis points.

  • Total Operating Expense: Decreased to $49.1 million, a 39% decrease.

  • GAAP Net Loss: $6 million, compared to a loss of $45.7 million in the prior year.

  • Adjusted Net Loss: $2.6 million, compared to a loss of $8.5 million in the prior year.

  • Adjusted EBITDA: Positive $0.5 million, compared to a loss of $5.5 million in the prior year.

  • Cash and Equivalents: $124.3 million with no debt outstanding.

  • Full Year 2024 Revenue Expectations: Raised to $329 million to $331 million, reflecting approximately 45% year-over-year growth.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Inogen Inc (NASDAQ:INGN) achieved a 6% year-over-year revenue growth, reaching $89 million in total revenue for the third quarter of 2024.

  • The company reported strong performance in its business-to-business channels, with over 20% year-over-year revenue growth for the second consecutive quarter.

  • Inogen Inc (NASDAQ:INGN) generated $3 million of positive cash flow, marking the second consecutive quarter of positive cash flow.

  • The company achieved a second consecutive quarter of adjusted EBITDA profitability, indicating progress towards long-term profitability.

  • Inogen Inc (NASDAQ:INGN) launched the Rove 4, a new portable oxygen concentrator (POC) with advanced features, enhancing its innovation pipeline.

Negative Points

  • Direct-to-consumer sales declined by 23.2% year-over-year, reflecting challenges in this sales channel.

  • Rental revenue decreased by 13.1%, primarily due to lower average billing rates and a mix shift to private payers.

  • The company continues to face rising advertising costs, particularly due to increased demand for TV spots ahead of the election.

  • Inogen Inc (NASDAQ:INGN) expects to end the second half of 2024 with an adjusted EBITDA loss, despite recent profitability improvements.

  • Foreign exchange had a negative impact on revenue, with a 20 basis points impact on total revenue and a 70 basis points impact on international revenue.