Inogen, Inc. reported its financial results for the three and nine months ended September 30, 2024, showing notable improvements in revenue and a significant reduction in net losses compared to the same period in the previous year.

For the third quarter of 2024, Inogen achieved total revenue of $88.8 million, a 5.8% increase from $84.0 million in Q3 2023. Sales revenue rose by 10.2% to $74.9 million, driven by a 24% increase in the number of oxygen systems sold, totaling approximately 43,900 units. However, rental revenue decreased by 13.1% to $13.9 million, attributed to a shift in reimbursement rates from Medicare to private payors.

The nine-month period ending September 30, 2024, also reflected growth, with total revenue reaching $255.6 million, up 6.6% from $239.8 million in the same period of 2023. Sales revenue for the nine months increased by 10.5% to $212.4 million. The company sold approximately 119,100 systems during this period, a 23.5% increase year-over-year.

Gross profit for Q3 2024 was $41.3 million, a 22.4% increase from $33.8 million in Q3 2023, with gross margins on sales revenue improving to 46.5%. For the nine months, total gross profit was $118.5 million, up 20.2% from $98.5 million in the prior year.

Inogen's net loss for Q3 2024 was $6.0 million, a significant reduction from a net loss of $45.7 million in Q3 2023. For the nine months, the net loss decreased to $26.1 million from $75.9 million in the same period last year. This improvement was largely due to lower goodwill impairment and material cost premiums.

The company’s cash and cash equivalents as of September 30, 2024, totaled $105.7 million, down from $125.5 million at the end of 2023. Marketable securities increased to $15.0 million from $3.0 million. Inogen reported net cash provided by operating activities of $8.9 million for the nine months, a turnaround from a slight cash outflow in the same period of 2023.

Strategically, Inogen completed the acquisition of Physio-Assist SAS in September 2023, enhancing its product offerings in medical devices for bronchial decongestion. The company continues to focus on expanding its international business, particularly in Europe, and improving sales force productivity.

Overall, Inogen's financial performance reflects a positive trajectory, with increased sales and reduced losses, despite challenges in rental revenue and reimbursement rates.