Inogen, Inc

Welcome to Inogen's second quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. Following management's prepared remarks, we will hold a Q&A session. To ask a question at that time, please press star followed by one on your touchtone phone. If anyone has difficulty hearing the conference, please press star zero for operator assistance. As a reminder, this conference is being recorded today, August 6, 2024. I would now like to turn the call over to Ryan Peterson of Investor Relations.

Thank you all for participating in today's call. Joining me are President and CEO Kevin Smith and CFO Mike Bork. Earlier today, Inogen released financial results for the second quarter of 2024. 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 the full year 2024, progress on our strategic initiatives, including innovation, our expectations regarding the market for our products, on our business and supply and demand for our products in both the short-term and long-term. The forward-looking statements in this call are based on information currently available to us as of today's date, August 6, 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 reports filed with the Securities and Exchange Commission. Actual results may vary and we disclaim any obligations to update these forward-looking statements as may be required. We have posted historical financial statements in 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 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. With that, I will turn the call over to InnoGen's president and CEO, Kevin Smith.

Good afternoon, and thank you for joining our second quarter 2024 conference call. During today's call, I will provide updates on our progress towards our three strategic priorities, driving top-line growth, advancing our path to profitability, and expanding our innovation pipelines. I would then turn the line to Mike for a full review of our financials and outlook. Before I provide updates on our strategic priorities, I'd like to briefly highlight our strong second quarter 2024 results. We achieved $89 million in total second quarter revenue, reflecting 6% year-over-year growth and 14% growth from the first quarter of 2024. Our performance in the quarter was reflective of strong commercial execution from our team worldwide. We have also now completed our executive leadership transition and are excited to move forward with a concrete team in place. Now turning to updates on our strategic initiatives, I will start by highlighting our progress on driving top-line growth. A highlight of the quarter was growth in our business-to-business channels. Our team continues to do a stellar job building and strengthening relationships with new and existing customers worldwide. We believe our differentiated POC offerings resonate with our customers as Inogen offers the highest quality POCs, the lowest total cost to serve, and a host of digital health and value added services that make us an attractive partner. In addition, we saw a modest tailwind in our B2B channel related to a recent competitive exit from the market. This nicely complimented our base growth in the quarter, which overall was driven by our differentiated offerings and strong commercial execution. In our direct-to-consumer sales channel, we again saw year-over-year declines, but also generated 10% sequential growth. This sequential growth in the channel reflects our progress in improving lead generation and rep productivity. As a reminder, we are operating with a downsized and more efficient sales force on a year-over-year basis. We are excited about the progress we are now making as we continue to optimize our approach through this attractive and high-margin channel. Across the business, we are also continuing to work through our previously announced hospital and patient-first pilot programs. The hospital initiative in our rental channel targets hospitals in addition to individual practitioners. By targeting hospitals, we are able to access patients earlier in their care pathway, increasing the duration over which we can receive payments. Our patient-first initiatives in our DTC channel involves the cross-training of sales reps to execute both cash sales and insurance rentals. Our goal is to ensure that everyone who wants to receive an antigen POC can receive them quickly and easily. We are seeing encouraging results and look forward to providing more updates in those programs as they are formally put into place. Switching over to our progress on reaching sustained profitability, where we made significant advances in the quarter. I'm thrilled to report first quarter of adjusted EBITDA profitability in my tenure at Imogen. This is an exciting milestone and a meaningful step in the right direction. But please note our path to durable profitability will not necessarily be linear, as we will continue to invest thoughtfully in support of growth. Over time, we do see a pathway to sustainable adjusted EBITDA profitability with our current innovation pipeline and product portfolio. During the quarter, we continue to drive operating improvements in our DTC sales and rental channels to position for higher go-forward margins in these areas of our business. These are part of a host of initiatives we're executing, including a variety of programs to optimize our operating profiles. We are excited about the prospects of these initiatives, but they will take time to begin flowing through the financials. Turning to operating expense, where we experienced and expect further increases in advertising costs as we approach the November election. These costs primarily affect our direct-to-consumer sales channel, which relies heavily on TV advertising to reach consumers and generate leads. Finally, I would like to share updates on our innovation pipeline. We look forward to bringing the Simiax product to the U.S. market and continue to make meaningful progress toward FDA clearance. We will provide updates as they become available. Moving to our POC portfolio, we continue to expect the launch of the newest generation POC, the Rho4, in the back half of the year. The Rho4 offers patients a new fourth flow setting, a service life of up to eight years, and the highest oxygen production in the lightest weight POC in the market. These innovations are representative of our mission to provide patients on oxygen therapy with an opportunity to maintain mobility and quality of life as they undergo treatment. Additionally, we continue to invest in our digital offerings to ensure Inogen devices remain as easy to utilize and maintain as possible. With that, I would like to say I am proud of the significant progress our team has made towards our strategic initiatives in the quarter. We will continue to position Inogen for near and long-term success. I will now turn the call over to Mike for a more detailed review of our financial results. Mike?