Inogen, Inc

Greetings and welcome to the Inogen 2023 Fourth Quarter Financial Results Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Marissa Beisch from Gil Martin Group. Thank you. You may begin.

Great. Thank you all for participating in today's call. Joining me are President and CEO Kevin Smith and Interim CFO Mike Sergisgetter. Earlier today, Inogen released financial results for the fourth quarter of 2023 and full year 2023. This earnings release is available in the investor relations section of the company's website, along with a supplemental financial package. As a reminder, the information presented today will include forward-looking statements, including, without limitation, statements about our growth prospects and strategy for 2024 and beyond, expectations related to our financial results for 2024, progress of our strategic initiatives, including innovation, our expectations regarding the market for our products, our business supply and demand for our products, in both the short and long term. The forward-looking statements in this call are based on information currently available to us as of today's date, February 27, 2024. These forward-looking statements are only predictions and involve risks and uncertainties that are set forth in more detail in our most recent periodic report filed with the Securities and Exchange Commission. Actual results may vary, and we disclaim any obligation to update these forward-looking statements, except as may be required by law. We have posted historical financial statements and our investor presentations in the investor relations section of the company's website. Please refer to these files for more detailed information. During the call, we will also present certain financial information on a non-GAAP basis. Management believes that non-GAAP financial measures taken in conjunction with U.S. GAAP financial measures provide useful information for both management and investors by excluding certain non-cash items and other expenses that are not indicative of Inogen's core operating results. Management uses non-GAAP measures internally to understand, manage, and evaluate our business and make operating decisions. Reconciliations between U.S. GAAP and non-GAAP results are presented in tables within our earnings release. And with that, I will turn the call over to Inigent's President and CEO, Kevin Smith.

Good afternoon, and thank you for joining our fourth quarter 2023 conference call. During today's call, I will provide insight into my experiences during my first months as CEO, outline our strategic priorities going forward, and share a few highlights from the recent quarter. I'm pleased to be leading my first earnings call here at Inigent, We have a great team and a great product portfolio. During my first months as CEO, I have observed and reflected on the strengths and challenges within our business, seeking substantial internal and external feedback regarding our portfolio, strategy, sales structure, field organization, and performance. I have spent much of my time visiting our global teams, investors, and management to understand the company from its roots. From my conversations with our leaders, I have immense confidence and the opportunity ahead of the company and our capability to make improvements across the business. As I strategize our path forward, I'm pleased to welcome two additional new leaders to our team. We are thrilled to have appointed Greg Remond as Chief Commercial Officer in January. Greg's experience will help improve Inogen's products, commercial strategy, and customer experience. We also look forward to bringing on Michael Bork as our new CFO, whose appointment we announced in late January. Michael will be joining the company effective next week, March 4th, strengthening our finance organization and stewarding our accounting and FP&A teams. I am confident that both of their additions are a step towards achieving Inogen's full potential. I would like to share insights into Inogen's strategic priorities going forward. Our top priority is positioning the business for revenue growth. An important piece of this process is the pursuit of regulatory clearance for PhysioAssist's introduction to the US market. PhysioAssist represents an exciting opportunity to expand our portfolio, increasing our ability to impact the lives of existing and new patients. We remain optimistic about our ability to achieve clearance, and we'll be providing updates as they're available. We will also be pursuing a return to sustainable profitability in the coming years. To this end, we are evaluating optimization of our production and cost structures with the intent to improve the cost of goods sold. Advancing our innovation pipeline with transformative technologies is also a key priority. We are advancing development to make our products more accessible, mobile, and effective. This includes innovation within our digital health portfolio. Inogen devices are known for their superior patient compliance, monitoring, and diagnostic capabilities. And we know that continued investment in our platforms to improve their ease of use and cost effectiveness can take us even further with our business-to-business partners, further establishing patient and provider preference and loyalty. And in tandem with all of these efforts, Inogen will continue to bring best-in-class POCs to the market, evaluate our sales strategies, and strengthen our relationships with distributors and stakeholders in new and existing markets. We remain dedicated to delivering the highest quality, most dependable, and most advanced respiratory therapies to patients around the globe. Now I would like to highlight our accomplishments during the fourth quarter and full year 2023. We achieved 76 million in total fourth quarter revenue and 316 million in fiscal year 2023 revenue. Our recent sales were in part driven by the full launch of Rogue Six in Europe, which is progressing along well with our expectations. We have followed our 2023 achievements with several areas of progress in early 2024. For example, we saw a compelling conclusion supporting the adoption of POCs through a recently completed real-world evidence study. The study analyzed the effectiveness, burden, and cost of illness of over 380,000 long-term oxygen therapy patients. Baseline mobility was strongly correlated to lower risk of mortality over a 72-month period, and mobile patients using POCs with higher duration of autonomy had nine months longer median overall survival, lower risks of hospitalizations and ER visits, and consequently, lower healthcare resource utilization costs than patients using POCs with shorter duration of autonomy. This further reinforces that patient mobility is key to their health and well-being, and using the devices that are compatible with it and do not restrict it have clear benefits. At Inogen, we take pride in the mobility our devices offer patients. We are always striving to find ways to improve mobility through battery life, device size, and wait to improve patient outcomes. In early February, we rolled out updates for our connected app and service portals to provide better patient monitoring and user experiences for our customers and business-to-business partners. Changes included the ability to connect to wearable diagnostic devices, ability to track patient breaths per minute, and error and maintenance notifications linked to specific devices. These changes are part of our broader effort to make sure Inogen devices are not only dependable, but also practical for all users. In addition, we have initiated a shift within our rental channel in which we run our POCs via prescriber referrals. As part of a continued effort to improve our rental process, expand the rental channel, and increase our forecasting and predictability, we are moving away from one of our external sales partnerships and bringing support for prescriber rentals in-house. I believe this is an important step ensuring we are able to assist as many patients as possible to streamline our cost structure. Before I turn the call over to Mike, I'd like to address the news of a recent competitor exiting the market. Due to this development, we are seeing some volatility in the domestic business-to-business channel, but we also see the potential opportunity to capitalize on our market leadership, differentiated product offering, and brand recognition. We expect that there may be a void in the market, and if so, we will be ready to step in and fill it. And now turn the call over to Mike for a more detailed review of our financial results. Mike?