Inogen, Inc. INGN incurred an adjusted loss per share of 24 cents for fourth-quarter 2024, which was narrower than the adjusted loss per share of 83 cents in the year-ago period and the Zacks Consensus Estimate of a loss of 57 cents per share.
GAAP loss per share for the quarter was 41 cents, narrower than the year-earlier loss of $1.14per share.
INGN’s Revenues in Detail
Inogen registered revenues of $80.1 million for the fourth quarter, up 5.5% year over year. The figure surpassed the Zacks Consensus Estimate by 0.7%.
At constant exchange rate (CER), total revenues for the reported quarter increased 4.6% year over year.
Per management, the year-over-year uptick in the top line was primarily driven by higher demand and new customer gains across the domestic and international business-to-business channels. However, this was partially offset by lower direct-to-consumer sales and rental revenues.
INGN’s Full Year 2024 Results
Inogen registered total revenues of $335.7 for the full year 2024, up 6.4% from 2023. INGN incurred an adjusted loss per share of 86 cents for the full year 2024, narrower than the adjusted loss per share of $2.08 for 2023.
Shares of this company gained nearly 6.1% in yesterday’s after-hours trading.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Inogen’s Segmental Details
Inogen derives revenues from two sources — rental and sales.
Rental revenues for the reported quarter grossed $13.8 million, down 16.5% from the year-ago period both on a reported basis and at CER. Per management, the decrease resulted from continued lower average billing rates due to the mixed shift to private payers.
Sales revenues were $66.3 million, up 11.6% from the prior-year quarter.
INGN’s Revenues by Region & Category
Domestic business-to-business sales for fourth-quarter 2024 amounted to $22.4 million, up 24.1% on a year-over-year basis. Per management, this was driven by increased demand from new customers and resellers.
International business-to-business sales for the reported quarter amounted to $28.3 million, up 31.5% year over year on a reported basis and up 28.2%at CER. Per management, this was driven by an increase in demand from INGN’s partners in Europe and new customers.
Domestic direct-to-consumer sales decreased 21.3% year over year to $15.6 million for the quarter.
Inogen’s Margins
In the quarter under review, Inogen’s adjusted gross profit rose 25.4% from the year-ago period to $39.3 million. The adjusted gross margin expanded 777 basis points to 49.1%.
Sales and marketing expenses decreased 5.8% from the year-ago quarter to $24.2 million. Research and development expenses decreased 12.2% year over year to $5.9 million, while general and administrative expenses decreased 28.9% year over year to $17.6 million. Total operating expenses of $47.7 million declined 16.6% year over year.
Adjusted operating loss totaled $8.3 million compared with the prior-year quarter’s $25.8 million.
INGN’s Financial Position
Inogen exited fourth-quarter 2024 with cash and cash equivalents of $113.8 million compared with $105.7 million at the third-quarter end.
The company ended the quarter with no debt on its balance sheet.
Cumulative net cash provided by operating activities at the end of fourth-quarter 2024 was $5.9 million against cumulative net cash used in operating activities of $3.2 million a year ago.
Inogen’s Guidance
Inogen has provided its revenue outlook for the first quarter and 2025.
For the first quarter of 2025, Inogen expects revenues in the range of $79 million-$81 million (reflecting growth of 1-4% from the comparable first quarter 2024 revenues). The Zacks Consensus Estimate is currently pegged at $76.4 million.
For 2025, Inogen expects revenues in the range of $352 million-$355 million (reflecting growth of 5-6% from the comparable 2024 revenues). The Zacks Consensus Estimate is currently pegged at $343.6 million.
Inogen, Inc Price, Consensus and EPS Surprise
Inogen, Inc price-consensus-eps-surprise-chart | Inogen, Inc Quote
Our Take
Inogen exited the fourth quarter of 2024 with a narrower-than-expected loss per share and better-than-expected revenues. Solid year-over-year top-line and bottom-line performances were encouraging. The robust year-over-year uptick in domestic and international business-to-business sales was impressive. The expansion of the adjusted gross margin also bodes well.
Last month, INGN entered into a strategic collaboration with Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. (“Yuwell”). The strategic collaboration is expected to broaden Inogen’s product portfolio through the distribution of certain respiratory products in the United States and select other territories, expand and enhance Inogen’s innovation pipeline through R&D collaboration, and accelerate the entry of Inogen’s brand into the Chinese market. This looks promising for the stock.
Yet, a decline in domestic direct-to-consumer salesand rentalrevenues was concerning. Inogen continued to incur operating losses for the fourth quarter, which did not bode well.
INGN’s Zacks Rank and Key Picks
Inogen currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the industry have been discussed below.
Avenna Healthcare AVAH, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated earnings growth rate of 666.7% for 2025. You can see the complete list of today’s Zacks #1 Rank stocks here.
AVAH delivered a trailing four-quarter average earnings surprise of 135.00%. The company is expected to release fourth-quarter results in March. Its shares have lost 4% in the past six months against the industry’s 2.1% growth.
Alphatec ATEC, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 40% for 2025. Its earnings missed estimates in each of the trailing four quarters, delivering a negative average surprise of 12.60%. The company is scheduled to release fourth-quarter results on Feb. 26.
ATEC’s shares have gained 87.7% against the industry’s 0.1% decline in the past six months.
Masimo MASI, carrying a Zacks Rank #2 at present, has an estimated growth rate of 9.5% for 2025.
MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.10%. Its shares have risen 47% against the industry’s 0.1% decline in the past six months. The company is scheduled to release fourth-quarter results today.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
