Inogen announces Q4 and full-year 2023 financial results

Inogen, Inc. announced financial results for the fourth quarter and the full-year ended December 31, 2023.

“I am excited for the future of Inogen. As we progress into 2024, we are focused on positioning the business for revenue growth and long-term profitability while advancing our innovation pipeline and working to bring Physio-Assist to the U.S. market,” said Kevin Smith, President and Chief Executive Officer. “We have a strong management team with the recent additions of Grégoire Ramade as Chief Commercial Officer and Michael Bourque as Chief Financial Officer, and we are confident in our ability to deliver value for shareholders.”

Fourth quarter 2023 financial results
Fourth quarter total revenue was $75.9 million, relative to $88.1 million in the fourth quarter of 2022, primarily due to a decrease in domestic business-to-business sales and direct-to-consumer sales, partially offset by higher rental revenue.

Total gross margin was 37.1% in the fourth quarter of 2023 versus 33.5% in the comparative period in 2022. The increase was driven primarily by lower premiums paid for components and labor and overhead costs.

Total operating expense for the quarter was $57.1 million compared to $88.0 million in the fourth quarter of 2022. The decrease was primarily due to the loss on disposal of an intangible asset of $52.2 million in the prior-year period, partially offset by the change in fair value of the earnout liabilities and certain one-time costs related to the CEO transition and bad debt expense.

GAAP net loss for the fourth quarter of 2023 was $26.6 million compared to GAAP net loss of $56.6 million in the fourth quarter of 2022. Adjusted net loss for the fourth quarter of 2023 was $19.4 million compared to adjusted net loss of $13.0 million in the fourth quarter of 2022.

Adjusted EBITDA was a negative $17.3 million in the fourth quarter of 2023 compared to a negative $10.6 million in the fourth quarter of 2022.

Cash, cash equivalents and marketable securities were $128.5 million as of December 31, 2023, with no debt outstanding.

Full-year 2023 financial results
Total revenue was $315.7 million, compared to $377.2 million in 2022, primarily due to declines in direct-to-consumer sales as well as domestic and international business-to-business sales, partially offset by higher rental revenue.

Total gross margin was 40.1% for the full-year 2023 versus 40.7% in 2022. The decline was primarily due to sales channel mix and higher servicing costs, partially offset by lower premiums paid for components and labor and overhead costs as well as higher reimbursement rates. Additional impacts included higher cost of other materials and warranty cost per unit sold.

Total operating expense for the full-year 2023 was $236.1 million compared to $238.8 million for the full-year 2022.

GAAP net loss for full-year 2023 was $102.4 million compared to GAAP net loss of $83.8 million for full-year 2022. Adjusted net loss for full-year 2023 was $48.3 million compared to adjusted net loss of $26.2 million for full-year 2022.

Adjusted EBITDA was a negative $37.8 million for the full-year 2023 compared to a negative $13.5 million for the full-year 2022.

Reconciliations of adjusted EBITDA and adjusted net loss for the three and twelve months ended December 31, 2023 and 2022 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 “Non-GAAP Financial Measures.”

First quarter 2024 financial outlook
For the first quarter 2024, Inogen expects revenue of $73 to $74 million, reflecting 1% to 3% reported growth relative to the first quarter 2023.
MB Bureau