‘Momentum’ drives double-digit growth at Inogen
GOLETA, Calif. – Inogen execs say the company has found a winning combo with its direct-to-consumer strategy and its product portfolio.
For the third straight quarter, the company has seen double-digit growth in revenues. For the third quarter ended Sept. 30, 2014, revenues were $29.4 million, a 48.6% increase compared to $19.8 million during the same quarter in 2013.
“I am encouraged by the strong momentum of our business model,” said President and CEO Raymond Huggenberger, during an earnings call Nov. 11. “Inogen is the only manufacturer currently offering a portable oxygen concentrator directly to consumers in the United States, and our patient-centric programs have been successful in driving strong demand and brand awareness.”
Sales revenues were $19.4 million for the quarter, a 60.1% increase over $12.1 million in 2013. Of that, direct-to-consumer sales comprised $7.1 million; domestic business-to-business sales $5.5 million; and international sales $6.8 million.
“On the domestic side, I think there is an increasing awareness of the industry that they have to do something to reduce their cost bases and POCs are a solution to that problem,” said Huggenberger. “We believe that eventually, POCs are going to be the standard of care for the majority of patients on long-term oxygen therapy.”
Rental revenues were also up, to $10 million for the quarter, an increase of 30.4% over $7.6 million during the same quarter in 2013.
Huggenberger said the company plans to make strategic investments in its products and infrastructure. Earlier this month, it obtained $15 million in working capital from JPMorgan.
“In 2015, we plan to expand our sales and marketing channels to include more internal and physician-based sales people, increase direct-to-consumer advertising, and strive for some great international distribution, primarily in Europe,” he said.
Huggenberger also expressed high expectations for the Inogen At Home stationery concentrator, which officially launched on Oct. 21.
“We are currently evaluating pricing in various regions to determine the appropriate margin and sales strategy,” he said. “We are also currently ramping up our manufacturing capacity for this product in our California facility.”