Inogen Inc Q1 FY2025 earnings call

• Addressed recently announced tariffs, stating no material impact on operating plan or financial profile.
• First quarter revenue grew 5.5% Y/Y to over $82 million, with adjusted EBITDA profitability.
• Growth driven by B2B channels, offset by DTC channel pressure from optimized sales team.
• Finalized collaboration with UL Medical, with UL distributing Inogen products in China and US; UL invested $27M in Inogen.
• Progress on regulatory hurdles for product rollout in US and China; limited US launch in 2025, full China launch in 2026.
• Progress towards profitability with adjusted EBITDA positive in Q1; expect adjusted EBITDA breakeven for full year 2025.
• Innovation pipeline updates: progress on Simeox reimbursements and digital health portfolio advancements.

Total revenue for the first quarter of 2025 was $82.3 million, a 5.5% year-over-year increase. Domestic business-to-business revenue increased 29.9% to $21.5 million. International business-to-business revenue rose 22.9% to $32 million. Direct-to-consumer sales decreased to $15 million, a 26.8% decline. Rental revenue was $13.8 million, a 7.5% decrease. Total gross margin was 44.2%, with sales revenue gross margin at 44.4% and rental revenue gross margin at 43.3%.

• Full year 2025 reported revenue expected $352M-$355M (5%-6% growth Y/Y).
• Second quarter 2025 revenue expected $89M-$91M (flat to ~3% growth Y/Y).
• Expect adjusted EBITDA breakeven for full year 2025.
• No significant tariff-related headwinds to gross margin or adjusted EBITDA anticipated currently, but will monitor.

• Tariffs are a dynamic situation that will continue to be monitored closely.

Q: Colin Clark asked about rentals, specifically net patients declining and billing rates down.

A: Mike Bourque said it's due to higher private pay vs Medicare, higher private pay percentage and cap patient increase leveling off, with Q1 rental revenue seeing sequential improvement.

Q: Unidentified Analyst asked about cadence for balance of year and actions on DTC and rentals.

A: Mike Bourque explained about rebasing DTC channel, better year-over-year comps in the back half of 2025, with DTC unfavorable comparability impacting growth only in first half.

Q: Unidentified Analyst asked about tariffs and UL partnership.

A: Kevin Smith said tariffs with exemptions not impacting US product import, manufacturing in Europe provides coverage in Europe and potential China, with options to get product into China from US and Europe.

Q: Mike Matteson asked about B2B growth, share gains vs category growth.

A: Kevin Smith said it's a mix of category shift from tanks to POCs and unit growth, with 27% unit volume increase in Q1 2025 showing strong performance.

Q: Mike Matteson asked about DTC macro environment, close rates.

A: Kevin Smith talked about patient first initiative, higher unit/revenue per rep, fewer returns per rep from the patient first rollout, positioning for better year-on-year comparison in back end of year.

Q: Margaret Andrew asked about guidance, B2B growth, OpEx.

A: Kevin Smith said continued B2B growth offsetting DTC unfavorable comparison, Mike Bourque discussed guidance conservatism, OpEx management with lower OpEx as percentage of revenue expected in 2025 vs 2024.