Inogen, Inc. (INGN) Bundle
A Brief History of Inogen, Inc.
Company Overview
Company Overview
Inogen, Inc. is a leading manufacturer of portable oxygen concentrators (POCs) and related respiratory products, focusing on providing innovative solutions for patients with respiratory conditions. As of September 30, 2024, Inogen operates primarily in the United States and Europe, catering to both direct-to-consumer and business-to-business markets.
Financial Performance
For the nine months ended September 30, 2024, Inogen reported total revenue of $255.6 million, a 6.6% increase from $239.8 million in the same period in 2023. The breakdown of revenue is as follows:
| Revenue Category | 2024 (in thousands) | 2023 (in thousands) | Change ($ thousands) | Change (%) |
|---|---|---|---|---|
| Sales Revenue | $212,449 | $192,203 | $20,246 | 10.5% |
| Rental Revenue | $43,175 | $47,561 | ($4,386) | -9.2% |
For the three months ended September 30, 2024, total revenue was $88.8 million, representing a 5.8% increase from $84.0 million in the prior year. Key figures for this quarter include:
| Revenue Category | 2024 (in thousands) | 2023 (in thousands) | Change ($ thousands) | Change (%) |
|---|---|---|---|---|
| Sales Revenue | $74,929 | $67,973 | $6,956 | 10.2% |
| Rental Revenue | $13,905 | $15,994 | ($2,089) | -13.1% |
Sales Volume and Market Demand
Inogen sold approximately 119,100 oxygen systems during the nine months ended September 30, 2024, compared to 96,400 systems in the same period in 2023, reflecting a 23.5% increase in sales volume. For the third quarter of 2024, approximately 43,900 systems were sold, up from 35,400 in the prior year, marking a 24.0% increase.
Net Income and Loss
Inogen reported a net loss of $26.1 million for the nine months ended September 30, 2024, significantly reduced from a loss of $75.9 million in the same period in 2023. This represents a decrease of 65.6% in net loss. For the third quarter, the net loss was $6.0 million, down from $45.7 million in 2023, a reduction of 87.0%.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $149.6 million, down from $178.9 million in 2023. The breakdown includes:
| Expense Category | 2024 (in thousands) | 2023 (in thousands) | Change ($ thousands) | Change (%) |
|---|---|---|---|---|
| Research and Development | $15,712 | $14,126 | $1,586 | 11.2% |
| Sales and Marketing | $78,914 | $81,438 | ($2,524) | -3.1% |
| General and Administrative | $54,956 | $50,487 | $4,469 | 8.9% |
Liquidity and Capital Resources
As of September 30, 2024, Inogen had cash and cash equivalents of $105.7 million and marketable securities of $15.0 million. The company generated $8.9 million from operating activities in the first nine months of 2024, a significant improvement from net cash used of $75.9 million in the same period of 2023.
Stockholder Equity
As of September 30, 2024, total stockholders' equity stood at $185.4 million, down from $204.8 million at the end of 2023. The accumulated deficit increased to ($143.1 million) from ($116.9 million).
A Who Owns Inogen, Inc. (INGN)
Major Shareholders
As of 2024, the ownership of Inogen, Inc. (INGN) is distributed among various institutional and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Shares Owned |
|---|---|---|
| BlackRock, Inc. | 12.5% | 2,975,000 |
| The Vanguard Group, Inc. | 10.2% | 2,420,000 |
| Wellington Management Group LLP | 8.7% | 2,050,000 |
| State Street Corporation | 7.1% | 1,670,000 |
| Other Institutional Investors | 30.5% | 7,200,000 |
| Retail Investors | 31.0% | 7,300,000 |
Stock Performance
As of the end of September 2024, Inogen's stock performance reflects a significant recovery compared to previous years. The stock price has shown fluctuations, with a notable increase of approximately 45% over the last year. The price per share as of September 30, 2024, is $18.50.
Market Capitalization
The market capitalization of Inogen, Inc. as of September 30, 2024, stands at approximately $440 million, based on the current stock price and total shares outstanding of 23,817,704.
Recent Financial Overview
Inogen reported a total revenue of $255.6 million for the nine months ended September 30, 2024, representing a 6.6% increase from $239.8 million for the same period in 2023. The breakdown of revenue sources is as follows:
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Sales Revenue | $212,449 | $192,203 |
| Rental Revenue | $43,175 | $47,561 |
| Total Revenue | $255,624 | $239,764 |
Net Loss and Earnings Per Share
Inogen reported a net loss of $26.1 million for the nine months ended September 30, 2024, compared to a net loss of $75.9 million for the same period in 2023. The loss per share for the current period is $0.25, significantly improved from $1.97 per share in the prior year.
Liquidity Position
As of September 30, 2024, Inogen has cash and cash equivalents amounting to $105.7 million, alongside marketable securities of $15 million. This strong liquidity position supports the company's operational and investment needs moving forward.
Inogen, Inc. (INGN) Mission Statement
The mission statement of Inogen, Inc. emphasizes its commitment to improving the quality of life for patients with respiratory conditions by providing innovative oxygen therapy solutions. The company strives to deliver low-cost, high-quality products that cater to the needs of both patients and healthcare providers. Inogen aims to be a leader in the portable oxygen concentrator market while expanding its global reach and enhancing customer satisfaction through continuous innovation and exceptional service.
Financial Overview
As of September 30, 2024, Inogen's financial performance reflects its operational strategies and market conditions. The following table showcases key financial metrics for the nine months ending September 30, 2024, compared to the same period in 2023:
| Financial Metric | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Sales Revenue | $212,449 | $192,203 | $20,246 | 10.5% |
| Rental Revenue | $43,175 | $47,561 | $(4,386) | -9.2% |
| Total Revenue | $255,624 | $239,764 | $15,860 | 6.6% |
| Net Loss | $(26,131) | $(75,894) | $49,763 | 65.6% |
| Gross Profit | $118,452 | $98,541 | $19,911 | 20.2% |
| Cash and Cash Equivalents | $105,700 | — | — | — |
Operational Highlights
Inogen's operational focus includes enhancing its product offerings and expanding its market presence. The company sold approximately 119,100 oxygen systems from January to September 2024, showing a significant increase of 23.5% compared to approximately 96,400 systems sold in the same period of 2023. This growth is attributed to increased demand in both domestic and international markets.
Revenue Breakdown
The following table illustrates the revenue breakdown by category for the nine months ended September 30, 2024, highlighting the shift in revenue sources:
| Revenue Category | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Percentage of Total Revenue (2024) |
|---|---|---|---|---|
| Business-to-Business Domestic Sales | $61,158 | $48,145 | $13,013 | 23.9% |
| Business-to-Business International Sales | $88,894 | $67,877 | $21,017 | 34.8% |
| Direct-to-Consumer Domestic Sales | $62,397 | $76,181 | $(13,784) | 24.4% |
| Direct-to-Consumer Domestic Rentals | $43,175 | $47,561 | $(4,386) | 16.9% |
Market Strategy and Future Outlook
Inogen continues to focus on expanding its domestic and international business-to-business partnerships, enhancing product offerings, and investing in research and development. The company is committed to adapting to market changes and patient needs, ensuring sustainable growth and improved profitability.
How Inogen, Inc. (INGN) Works
Business Model
Inogen, Inc. operates primarily in the medical device industry, focusing on the design, manufacture, and distribution of portable oxygen concentrators (POCs). The company generates revenue through sales of its products and rental services.
Financial Performance
As of September 30, 2024, Inogen reported total revenue of $255.6 million, a 6.6% increase from $239.8 million in the same period of 2023. This growth is primarily attributed to an increase in sales revenue, which reached $212.4 million, reflecting a 10.5% increase year-over-year.
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Sales Revenue | $212,449 | $192,203 | $20,246 | 10.5% |
| Rental Revenue | $43,175 | $47,561 | ($4,386) | -9.2% |
| Total Revenue | $255,624 | $239,764 | $15,860 | 6.6% |
Sales Breakdown
Inogen's sales are categorized into business-to-business and direct-to-consumer channels. The nine-month period ending September 30, 2024, witnessed significant growth in business-to-business sales.
| Sales Category | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Domestic Business-to-Business Sales | $61,158 | $48,145 | $13,013 | 27.0% |
| International Business-to-Business Sales | $88,894 | $67,877 | $21,017 | 31.0% |
| Direct-to-Consumer Domestic Sales | $62,397 | $76,181 | ($13,784) | -18.1% |
Product Sales and Rental Operations
Inogen sold approximately 119,100 oxygen systems during the nine months ended September 30, 2024, compared to 96,400 systems sold in the same period of 2023, marking a 23.5% increase.
Rental revenue saw a decline, primarily due to changes in reimbursement rates. As of September 30, 2024, Inogen had approximately 51,400 rental patients compared to 51,900 in the previous year.
Cost Structure
For the nine months ending September 30, 2024, the cost of revenue was $137.2 million, down 2.9% from $141.2 million in 2023. The gross profit increased to $118.5 million, up from $98.5 million, reflecting improved operational efficiency.
| Cost Category | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Cost of Sales Revenue | $113,156 | $118,700 | ($5,544) | -4.7% |
| Cost of Rental Revenue | $24,016 | $22,523 | $1,493 | 6.6% |
| Total Cost of Revenue | $137,172 | $141,223 | ($4,051) | -2.9% |
Net Loss and Earnings Per Share
Inogen reported a net loss of $26.1 million for the nine months ended September 30, 2024, significantly reduced from $75.9 million in the previous year. The basic and diluted net loss per share was ($0.25) compared to ($1.97) in 2023.
Liquidity and Capital Resources
As of September 30, 2024, Inogen had cash and cash equivalents of $105.7 million and marketable securities of $15.0 million. The company expects these resources to meet its operational needs for at least the next twelve months.
How Inogen, Inc. (INGN) Makes Money
Revenue Streams
Inogen, Inc. generates revenue primarily from two main categories: sales revenue and rental revenue.
| Category | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) | Change (in thousands) | Percentage of Total Revenue |
|---|---|---|---|---|
| Sales Revenue | $212,449 | $192,203 | $20,246 | 83.1% |
| Rental Revenue | $43,175 | $47,561 | ($4,386) | 16.9% |
| Total Revenue | $255,624 | $239,764 | $15,860 | 100.0% |
Sales Revenue Breakdown
Sales revenue is derived from the sale of oxygen systems and related accessories to various customers, including individual consumers, home medical equipment (HME) providers, and resellers.
| Sales Category | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) | Change (in thousands) | Percentage of Sales Revenue |
|---|---|---|---|---|
| Business-to-Business Domestic Sales | $61,158 | $48,145 | $13,013 | 27.0% |
| Business-to-Business International Sales | $88,894 | $67,877 | $21,017 | 31.0% |
| Direct-to-Consumer Domestic Sales | $62,397 | $76,181 | ($13,784) | 24.4% |
Rental Revenue Insights
Rental revenue is generated from the leasing of oxygen systems, primarily reimbursed by Medicare and private payors. The rental revenue has seen a decrease attributed to a shift in reimbursement rates.
| Rental Category | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) | Change (in thousands) | Percentage of Rental Revenue |
|---|---|---|---|---|
| Domestic Rentals | $43,175 | $47,561 | ($4,386) | 100.0% |
Cost of Revenue and Gross Profit
The cost of revenue reflects the expenses associated with producing and renting the oxygen systems. The gross profit margins are indicative of the company's operational efficiency.
| Cost Category | 2024 Cost (in thousands) | 2023 Cost (in thousands) | Change (in thousands) | Gross Margin Percentage |
|---|---|---|---|---|
| Cost of Sales Revenue | $113,156 | $118,700 | ($5,544) | 46.7% |
| Cost of Rental Revenue | $24,016 | $22,523 | $1,493 | 44.4% |
| Total Cost of Revenue | $137,172 | $141,223 | ($4,051) | 46.3% |
Operating Expenses
Inogen also incurs various operating expenses, which are crucial to maintaining its business operations and growth initiatives.
| Expense Category | 2024 Expense (in thousands) | 2023 Expense (in thousands) | Change (in thousands) |
|---|---|---|---|
| Research and Development | $15,712 | $14,126 | $1,586 |
| Sales and Marketing | $78,914 | $81,438 | ($2,524) |
| General and Administrative | $54,956 | $50,487 | $4,469 |
| Total Operating Expenses | $149,582 | $178,945 | ($29,363) |
Net Loss
Despite the revenue growth, Inogen reported a net loss, which has decreased significantly compared to the previous year.
| Period | Net Loss (in thousands) | 2023 Net Loss (in thousands) | Change (in thousands) |
|---|---|---|---|
| Three Months Ended September 30, 2024 | ($5,963) | ($45,719) | $39,756 |
| Nine Months Ended September 30, 2024 | ($26,131) | ($75,894) | $49,763 |
Market Opportunities and Strategies
Inogen is focusing on expanding its market presence through various strategies:
- Enhancing domestic direct-to-consumer sales.
- Expanding the domestic HME provider and reseller network.
- Increasing international business-to-business adoption.
- Investing in innovative product offerings and clinical evidence.
As of September 30, 2024, Inogen had approximately 51,400 oxygen rental patients, reflecting a slight decrease from 51,900 patients a year prior.
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Resources:
- Inogen, Inc. (INGN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Inogen, Inc. (INGN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Inogen, Inc. (INGN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.