• Total Revenue (Q4 2024): $80.1 million, a 5.5% increase year-over-year.
• Domestic B2B Revenue (Q4 2024): $22.4 million, a 24.1% increase year-over-year.
• International B2B Revenue (Q4 2024): $28.3 million, a 31.5% increase year-over-year.
• Consumer Sales (Q4 2024): $15.6 million, a 21.3% decrease year-over-year.
• Rental Revenue (Q4 2024): $13.8 million, a 16.5% decrease year-over-year.
• Gross Margin (Q4 2024): 45.3%, an increase of 821 basis points year-over-year.
• Operating Expense (Q4 2024): $47.7 million, a 16.6% decrease year-over-year.
• GAAP Net Loss (Q4 2024): $9.8 million, compared to $26.6 million in Q4 2023.
• Adjusted Net Loss (Q4 2024): $5.8 million, compared to $19.4 million in Q4 2023.
• Adjusted EBITDA (Q4 2024): Negative $3.6 million, compared to negative $17.3 million in Q4 2023.
• Cash Equivalents and Restricted Cash (Dec 31, 2024): $117.4 million with no debt outstanding.
• Total Revenue (Full Year 2024): $335.7 million, a 6.4% increase year-over-year.
• Gross Margin (Full Year 2024): 46.1%, an increase of 596 basis points year-over-year.
• Operating Expense (Full Year 2024): $197.3 million, a 16.4% decrease year-over-year.
• GAAP Net Loss (Full Year 2024): $35.9 million, compared to $102.4 million in 2023.
• Adjusted Net Loss (Full Year 2024): $20.4 million, compared to $48.3 million in 2023.
• Adjusted EBITDA (Full Year 2024): Negative $9.5 million, compared to negative $37.8 million in 2023.

• Warning! GuruFocus has detected 3 Warning Signs with INGN.

Release Date: February 25, 2025

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

Positive Points

• Inogen Inc (NASDAQ:INGN) reported a 6.4% growth in full-year 2024 revenue, reaching over $335 million.
• The company achieved FDA clearance for the Simeox device, expanding its product portfolio.
• Inogen Inc (NASDAQ:INGN) launched the Rove 4 POC, receiving positive feedback for its lightweight design and long battery life.
• A strategic collaboration with Yuwell Medical was established, providing a $27 million investment and expanding market reach in China.
• Significant improvements in gross margins were reported, with a 821 basis points increase in the fourth quarter of 2024.

Negative Points

• Direct-to-consumer (DTC) sales decreased by 21.3% in the fourth quarter due to a downsized sales force.
• Rental revenue declined by 16.5%, primarily due to lower average billing rates and a shift to private payers.
• Inogen Inc (NASDAQ:INGN) reported a GAAP net loss of $9.8 million for the fourth quarter of 2024.
• The company anticipates a modest impact from the Yuwell collaboration on 2025 revenue, indicating a slow ramp-up.
• Challenges in the DTC channel are expected to continue into the first half of 2025 due to previous sales force reductions.

Q & A Highlights

Q: What's contemplated in the guide in terms of the Yuwell agreement throughout 2025, and how will it impact gross margins? A: Michael Bourque, CFO, explained that the Yuwell agreement is not expected to significantly impact 2025 results as the deal just closed. The gross margin impact relates to the introduction of Yuwell and Simeox products, along with some raw material costs, amounting to about 100 basis points. The revenue from Yuwell is minimal in the 2025 guidance.

Q: How should we think about the breakdown of revenue guidance between different segments like DTC and B2B? A: Michael Bourque stated that while they don't provide specific guidance by revenue channel, the B2B business is expected to continue being a major growth driver, albeit not at the 30% growth rate seen in 2024. The DTC channel will continue to see reduced revenue due to a smaller sales force, with improvements expected in the latter half of 2025.

Q: What is the expected revenue cadence throughout 2025? A: Michael Bourque noted that Q2 and Q3 are traditionally the strongest quarters for revenue, particularly in the DTC segment, while Q1 and Q4 face seasonal challenges. This pattern is expected to continue in 2025.

Q: How will Yuwell's product portfolio be introduced in the US, and will it require incremental investment? A: Kevin Smith, CEO, explained that Yuwell's products, starting with the stationary oxygen concentrator, will be branded as Inogen and sold across all channels without needing additional sales force investment. This will enhance the rental and B2B segments and offer cash sales opportunities in the DTC channel.

Q: Can you provide more details on the Simeox launch strategy and engagement with private insurers? A: Kevin Smith highlighted ongoing clinical trials in Europe and plans for US reimbursement. The strategy involves engaging key opinion leaders and private insurers to maximize reimbursement, with a focus on ensuring comprehensive data and support for CMS submissions.

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