Inogen, Inc

Welcome to Inogen's first quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. Following the 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, May 7th, 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 first quarter 2025. 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 second 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, May 7, 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 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. With that, I will turn the call over to Inogen's President and CEO, Kevin Smith.

Good afternoon, and thank you for joining our first quarter 2025 conference call. During today's call, I will review our first quarter performance and provide an update on our progress towards our three strategic priorities, driving top-line growth, advancing our path to profitability, and expanding our innovation pipeline. I will then turn the line to Mike for a full review of our financials and outlook. Before I share more on our first quarter results, I would like to briefly address the recently announced tariffs. Considering our business position and current exemptions, we do not anticipate a material impact to our operating plan or financial profile from the announced tariffs. We believe that we are well positioned to continue executing on our strategic priorities and financial goals despite these developments. However, the situation is dynamic and we will continue to monitor it closely. Shifting back to our strong first quarter results where we delivered over $82 million in revenue reflecting 5.5% year-over-year growth. Alongside the strong top-line performance, we drove another quarter of adjusted EBITDA profitability, reflecting our focus on operational excellence. Our growth was driven by the continued strength of our business-to-business channels. This was offset by expected pressure in our DTC channel, where we have optimized the size of our sales team. We expect more favorable year-over-year comparisons in the back half of 2025 as we lap one year with our newer, more efficiently sized team in place. As previously announced, we finalized our collaboration with UL Medical during the quarter. This collaboration furthers our efforts toward all of our strategic priorities by driving growth, broadening our geographic reach, and improving our product portfolio. As a reminder, Uwell would distribute Inogen portable oxygen concentrators under the Inogen brand in China, accelerating our entry into the attractive Chinese respiratory market. We will be distributing their stationary oxygen concentrators under the Inogen brand in the United States, expanding our offerings across all of our channels. Our team is making progress on completing the necessary regulatory hurdles for a full rollout of these products in both the United States and China. In the United States, we expect a limited launch in 2025 as we focus on market developments with a more fulsome launch in 2026. While in China, we continue to work through the registration process with UL. We will continue to provide updates on these processes as appropriate. Additionally, UL completed an investment through one of its subsidiaries of approximately $27 million in late February, acquiring a 9.9% ownership stake in Indigent. This investment is reflected in our first quarter financials and is meaningful capital for reinvestments into growth and innovation. Now turning to our second strategic objective, progressing towards sustained profitability, where we have continued to make considerable advancements. In the first quarter, we once again generated positive adjusted EBITDA as a result of our continued top-line strength and focus on managing expenses responsibly. As Mike will expand upon further in his remarks, We still expect to approach adjusted EBITDA break-even for the full year 2025 as we continue to invest in innovation, the introduction of SEMIACs, and our UL rollout. We have made significant progress where we will carefully manage our expense profile and drive manufacturing and operational efficiencies going forward. Finally, I would like to provide an update on our innovation pipeline. We are continuing to make progress with our pursuit of reimbursements and the limited commercial release of SEMIACs. There are no material updates to provide as of now, but we will continue to share pertinent information in the future. In our digital health portfolio, we are advancing several updates to streamline remote monitoring of device usage and status for patients and our partners. We remain committed to developing digital solutions that save time and money. I look forward to sharing updates on those as they are introduced throughout the year. I am proud of our team's strong performance in the first quarter and look forward to delivering progress on growth, profitability, and innovation throughout the rest of 2025. With that, I'll turn it to Mike to provide an update on our financials. Mike?