Business
Inogen Announces Fourth Quarter and Full Year 2024 Financial Results
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
About this update from Inogen, Inc
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 GOLETA, Calif. --(BUSINESS WIRE)-- 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. View source version on businesswire.com : https://www.businesswire.com/news/home/20250225701496/en/ [email protected] Source: Inogen, Inc.