Inogen (INGN) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $88.8 million, up 6.1% year-over-year, driven by strong business-to-business sales, while direct-to-consumer and rental segments declined.

• Gross margin improved to 48.1% from 40.7% year-over-year, mainly due to lower component costs and favorable reserve adjustments.

• GAAP net loss narrowed to $5.6 million from $9.8 million in Q2 2023; adjusted net loss was $1.6 million versus $5.8 million.

• Adjusted EBITDA turned positive at $1.3 million, compared to negative $3.2 million a year ago.

• Ended Q2 with $121.2 million in cash, cash equivalents, marketable securities, and restricted cash, with no debt.

Financial highlights

• Q2 2024 sales revenue: $74.4 million (+8.9% YoY); rental revenue: $14.3 million (-6.2% YoY); total revenue: $88.8 million (+6.1% YoY).

• Direct-to-consumer sales fell 15.6% to $22.6 million; rental revenue down 6.2% to $14.3 million.

• Domestic B2B revenue rose 16.5% to $21.3 million; international B2B up 31.1% to $30.5 million.

• Total gross margin improved to 48.1%, up from 40.7% in Q2 2023, aided by lower component costs and reserve adjustments.

• Operating expenses increased 8.7% to $49.8 million, mainly from higher personnel and advertising costs.

Outlook and guidance

• Full-year 2024 revenue expected between $325 million and $330 million, reflecting 3%–5% year-over-year growth.

• Gross margins anticipated in the low- to mid-40% range for the second half of 2024.

• Guidance reflects anticipated advertising headwinds, fewer DTC leads due to the U.S. election, and ongoing cost pressures.

• Current liquidity is expected to be sufficient for at least the next twelve months.

• Minimal impact from semiconductor chip inflation expected for the remainder of 2024.