Inogen’s B2B sales ‘stronger than anticipated’
GOLETA, Calif. – Say what you will about Inogen’s direct-to-consumer business model—it’s the business-to-business segment that continued to lead the company’s growth in the first quarter of 2015.
Inogen reported a 70.7% increase in business-to-business sales for the first quarter this year compared to the same period last year, “stronger than anticipated growth,” said Ray Huggenberger, CEO, during a conference call to discuss the company’s latest financial results.
“We believe the traction we are gaining in this channel is primarily the result of reseller demand for portable oxygen concentrators as we and others increase marketing spend to target existing oxygen patients,” he said.
The B2B segment also led growth in the fourth quarter of 2014, with a 16.7% increase compared to the same period in 2013.
What’s more: Inogen is seeing growth in its B2B segment not only domestically but also internationally. It reported an 89% increase in international B2B sales in the first quarter this year compared to the same period last year.
“As part of a strategy to more proactively approach international sales, we’ve recently hired our first international sales representative,” Huggenberger said. “He is located in the Netherlands and will focus on expanding distributor partnerships throughout Europe and working more closely with our existing partners to drive conversion from the traditional delivery-based systems.”
On the direct-to-consumer side, Inogen reported a 25.9% increase in the first quarter this year compared to last year, a number company officials expect to grow with an expanding sales force.
“We expect to see continued seasonally adjusted steady growth in our direct-to-consumer channel through 2015 as the additional headcount comes up to full speed and we continue to add to our sales headcount throughout the year,” Huggenberger said.
Overall, Inogen reported total revenues of $33.8 million for the first quarter of 2014, a 42.8% increase over the same period last year. It reported net income of $1.6 million vs. $888,000, a 77% increase.
The company reported sales revenues of $23 million for the first quarter, a 55.1% increase over the same period last year, and rental revenues of $10.7 million, a 22% increase.
Inogen also confirmed its guidance for 2015 at $133 million to $137 million in revenues, representing a year-over-year growth ranging from 18.2% to 21.7%.