Inogen, Inc

Welcome to Inogen's fourth 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 1 on your touchtone keypad. If anyone has difficulty hearing the conference, please press star 0 for operator assistance. As a reminder, this conference is being recorded today, February 25, 2025. I would now like to turn the call over to Ryan Peterson, 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 fourth quarter and full year 2024. The 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 2025 and beyond, expectations related to our financial results for the first quarter and full year 2025, progress of our strategic initiatives including innovation, our expectations regarding the market for our products and 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, February 25, 2025. 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 except as may be required by law. 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 US 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. With that, I will turn the call over to Inogen's President and CEO, Kevin Smith.

and thank you for joining our fourth quarter 2024 conference call. During today's call, I will review our fourth quarter and full year performance and provide an update in our progress towards our three strategic priorities, driving top-line growth, advancing our path to profitability, and expanding our innovation pipeline. I would then turn the line to Mike for a full review of our financials and outlook. 2024 was a year of progress for Inogen. We made significant steps forward on our strategic initiatives, We returned our company to growth, advanced toward profitability, launched our latest POC, the Rho4, and received FDA clearance for the Semiox device in the United States. Before I share more on our 2024 achievements, I'd like to highlight an exciting recent announcement, a collaboration and investment from UL Medical, a leader in the global respiratory care market. We entered into this collaboration in January 2025, As part of the agreement, UL would distribute Inogen portable oxygen concentrators under the Inogen brand in China, expediting our entry into the large and fast-growing Chinese respiratory market. In addition, we will distribute their stationary oxygen concentrators under the Inogen brand in the United States. We are happy to announce the transaction closed on February 21, 2025, alongside our commercial collaboration a wholly owned subsidiary of UL invested approximately $27 million in the Inogen, representing a 9.9% ownership stake. This is valuable additional capital for our use in support of our growth objectives. Over time, we believe this collaboration and investment will allow us to broaden our product portfolio and meaningfully expand our global reach in support of long-term growth and profitability. Turning back to our 2024 accomplishments, For the full year, we delivered over $335 million in revenue, representing 6.4% growth over the prior year. In the fourth quarter, we achieved over $80 million in revenue, reflecting 5.5% year-over-year growth. Our growth in both time periods was primarily driven by our business-to-business channels, where we continue to make progress with current and new customers. This was somewhat offset by pressure in our DTC channel related to our downsized sales Improving the performance of our DTC channel remains a key focus going forward, and I am confident that we are well positioned to return to continued growth in the next one to two years. Now, shifting to our second strategic objective, advancing efforts to reach sustained profitability, where we have made significant steps forward. In 2024, we were able to generate two quarters of adjusted EBITDA profitability, a product of commercial execution and operational diligence. In 2025, we expect to continue driving growth in our organization while carefully managing spend. Mike will detail our financial outlook later in the call, but we expect improved adjusted EBITDA in 2025 relative to 2024. These improvements will be driven by organic efforts in support of our UL collaboration. Finally, I would like to share updates on our innovation pipeline. In December, we received FDA 510K clearance for our Semiox airway clearance device. this milestone marks the culmination of a significant effort by our clinical and regulatory teams. Our focus has now turned to pursuing reimbursement for the device in the United States, and we are planning a limited launch in targeted U.S. sites in 2025. As a reminder, Symeox expands our product portfolio to include patients suffering from lung diseases associated with mucus hypersecretion and retention, such as bronchiectasis, COPD, and cystic fibrosis. Simiax provides a more mobile and less time-consuming alternative to traditional vest-based therapies, and we believe offers significant improvements over the current standard of care. Simiax also represents a sizable commercial opportunity for us by expanding the addressable patient population for our devices with limited commercial investment. Simiax has the same call point as our existing POCs and has the potential of being sold to each of our commercial channels without investment in the new sales force. Additionally, we intend to commercialize Semiox through an initial capital sale followed by ongoing sales of disposables, which should provide us with an attractive recurring revenue stream. We will begin efforts to submit Semiox for reimbursements in the first quarter of 2025. Turning back to our POC platform, we launched our latest POC, the Row 4, in October of 2024. We have already received positive feedback from patients and providers on this new device. Patients appreciate that its lightweight, four-flow setting and nearly six hours of battery life allow them to remain mobile. Meanwhile, we have made significant advancements in our digital health offerings to support patients, distributors, and providers with enhanced device connectivity and remote accessibility. We are in the process of launching several updates that will provide our patients and partners with the ability to remotely monitor device health and usage. The core principle of our digital solutions is to increase accessibility for patients while saving our B2B partners time and money. To fulfill this principle, we are including new features in our Inogen connected app, such as the ability for patients to receive important software updates, check battery life, and receive device health summaries all from their phones. For our B2B partners, they will now be able to remotely diagnose device issues, removing the need for costly repeat service visits. Before I pass the line to Mike, I would like to thank the entire Inogen team for their diligence, focus, and commitment to our partners and patients during a year of change. I am thrilled to move into 2025 with our new leadership team fully in place, and I am confident we have positioned Inogen for success going forward. With that, I will turn it to Mike to provide an update on our financials. Mike?