Inogen closes out rough year with decreasing revenue
Goleta-based Inogen saw shares dip nearly 20% in after-hours trading Feb. 27 after the company missed analyst expectations in the fourth quarter and had an overall rough year in fiscal year 2023.
Inogen, a maker of portable oxygen containers, announced on Feb. 23 after the markets closed that fourth quarter total revenue was $75.9 million, down from $88.1 million in the fourth quarter of 2022. The decrease was primarily due to a decrease in domestic business-to-business sales and direct-to-consumer sales, partially offset by higher rental revenue, according to an Inogen press release.
Moreover, the company suffered a net loss of $26.6 million which was better than last year’s fourth quarter loss of $56.6 million. Adjusted for one-time losses, however, the company had a net loss of $19.4 million, or a loss of 81 cents per share, up from 2022’s fourth quarter adjusted loss of $13 million.
Analysts expectations from Zacks Consensus Estimate projected the company to suffer an adjusted net loss of 41 cents per share, with revenue at around $78 million, both of which the company missed.
For the full year, Inogen also struggled with revenue falling to $315.7 million in 2023 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, according to the press release.
The company’s net loss was $102.4 million compared to a net loss of $83.8 million in 2022. Adjusted for one-time losses, Inogen’s loss was $48.3 million compared to adjusted net loss of $26.2 million for 2022.
Inogen shares closed at $9.34 on Feb. 27, but once the company released its earnings, shares fell 17.7% to $7.74 in after-hours trading. Shares are down 40% year-over-year.
Inogen ended the quarter with cash and cash equivalents worth $187 million.
“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 newly-appointed CEO Kevin Smith in a press release.
Smith took over as CEO on Nov. 13 for Nabil Shabshab after a little over two years at the job.
