Inogen surpasses $100M in revenue

Company also announces plans to acquire manufacturer of portable non-invasive vents
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Wednesday, August 7, 2019

GOLETA, Calif. – Inogen reported total revenue of $101.1 million for the second quarter of 2019, a 3.9% increase over the same period in 2018. It’s the first time the company has surpassed $100 million in revenue in a single quarter.

Inogen reported a net income of $10.2 million vs. $14.6 million.

Direct-to-consumer sales increased 14%, primarily due to sales rep productivity, partially offset by an about 17% reduction in sales rep headcount in the second quarter of 2019 compared to the same period last year.

“While we were able to improve their productivity in the second quarter of 2019, the level of sales representative attrition was higher than expected as many of the representatives hired in 2018 were unable to meet our sales targets,” said Scott Wilkinson, Inogen president and CEO. “I expect the reduced sales capacity will be a headwind to direct-to-consumer growth for the remainder of 2019.”

Domestic business-to-business sales decreased 10%, primarily due to a decline in sales to Inogen’s private label partner. The private label partner’s sales declined primarily due to one large national homecare provider reducing orders in the second quarter of 2019 compared to the same period in 2018. Additionally, Internet reseller sales were down.

Inogen reduced its guidance for full year 2019 total revenue to $370 million to $375 million, down from $405 million to $415 million, representing growth of 3.3% to 4.7% compared to full year 2018.

Inogen also announced plans to acquire New Aera, a manufacturer of portable non-invasive ventilators. New Aera’s patented and FDA-cleared Tidal Assist Ventilator (TAV) system delivers higher flow and pressure compared to traditional oxygen therapy from an about 4-ounce pocket-sized unit.

“We are excited to announce the acquisition of New Aera as we feel its TAV technology can be used to improve the lives of both oxygen therapy patients, existing non-invasive ventilation patients and mild to moderate COPD patients given its patient-preferred design, relatively low cost and clinical efficacy,” Wilkinson said. “In the short to intermediate term, we plan to sell TAV systems to consumers through our inside direct-to-consumer and our physician sales forces, and to our partners in our business-to-business sales channels worldwide. We also plan to incorporate the TAV technology directly into our oxygen concentrators to continue to advance patient preference and maintain our technology leadership position.”