Inogen seeks return to revenue growth

GOLETA, Calif. – Inogen reported total revenue of $84 million for the third quarter, a 20.3% decrease from the same period last year. 

The company says that strong growth in rental and international business-to-business sales was more than offset by lower domestic business-to-business sales and lower direct-to-consumer revenue, as it focuses on optimizing commercial investments and driving sales representative productivity.  

“We have continued to improve on executing our commercial strategy while addressing headwinds that we have faced this year,” said Nabil Shabshab, president and CEO. “We are excited to start integrating Simeox into our product portfolio in international markets, expanding our respiratory portfolio and the patient population we serve. Moving forward, we remain focused on returning to revenue growth, driving efficiencies in the business, and advancing the development of our innovation pipeline.” 

Other financial results: 

• Total gross margin was 40.2% in the third quarter of 2023 versus 40.6% in the third quarter of 2022. 

• Total operating expense, including acquisition and restructuring-related costs, as well as one-time non-cash impairment charges of $32.9 million, was $80.5 million compared to $53.1 million in the third quarter of 2022, representing an increase of 51.6%. Total operating expense, excluding one-time costs, declined 10.4% due to the disciplined focus on aligning the company’s infrastructure with its commercial strategy and ongoing cost management 

• Due to the one-time non-cash impairment charges of $32.9 million, the GAAP net loss for the third quarter of 2023 was $45.7 million compared to GAAP net loss of $9.5 million in the third quarter of 2022. Adjusted net loss was $8.5 million compared to adjusted net loss of $4.1 million in the third quarter of 2022 

• Adjusted EBITDA was a loss of $5.5 million in the third quarter of 2023 compared to a loss of $1.2 million in the third quarter of 2022. 

Inogen continues to expect 2023 revenue of $315 million to $320 million. The company now expects an adjusted EBITDA loss of approximately $27 million for the full year, inclusive of investments in the Simeox airway clearance portfolio (Physio-Assist).