Inogen cites soft demand, manufacturing challenges in preliminary financial results
By HME News Staff
Updated Tue January 14, 2020
GOLETA, Calif. - Inogen expects full-year revenue of $361.4 million to $362.4 million, up 0.9% to 1.2% compared to 2018, based on preliminary, unaudited financial data.
The company expects fourth quarter 2019 revenue of $78.4 million to $79.4 million, down 8.2% to 9.4% compared to the same period in 2018.
“We had softer than expected demand, primarily in our direct-to-consumer and international channels, in the fourth quarter of 2019, and we also had some manufacturing challenges that contributed to unshipped orders as of Dec. 31, 2019,” said Scott Wilkinson, president and CEO.
Inogen expects domestic business-to-business sales of about $20.6 million in the fourth quarter of 2019 compared to $25.4 million in the same period in 2018.
Inogen says that, while sales rep productivity increased in the fourth quarter compared to the comparative period, direct-to-consumer sales were affected by an about 31% reduction in its sales rep headcount (329 as of Dec. 1, 2019, compared to 446 as of Dec. 31, 2018) and lower average selling prices.
The company says the primary driver of delayed shipments was certain component part shortages, which are also expected to impact the first quarter of 2020.
Inogen has updated its full year 2020 guidance range for total revenue to $385 million to $400 million, representing 6.4% to 10.5% growth over the 2019 preliminary revenue mid-point of $361.9 million. The company is reviewing its net income and adjusted EBITDA guidance.
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