Inogen, Inc. (NASDAQ:INGN) Q1 2019 Earnings Conference Call Transcript

May 07, 2019 • 04:30 pm ET


Inogen, Inc. (NASDAQ:INGN) Q1 2019 Earnings Conference Call Transcript


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Good day and welcome to the Inogen 2019 First Quarter Financial Results Conference Call. All participants will be in listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note, this event is being recorded.

I would now like to turn the conference over to Matt Bacso, Investor Relations Manager. Please go ahead.

Matt Bacso

Thank you for participating in today's call. Joining me from Inogen is CEO, Scott Wilkinson; and CFO and Co-Founder, Ali Bauerlein. Earlier today, Inogen released financial results for the first quarter of 2019. This earnings release in Inogen's and corporate presentation are currently available in the Investor Relations section of the Company's website.

As a reminder, the information presented today will include forward-looking statements, including statements about our growth prospects and strategy for 2019 and beyond, sales personnel strategy changes, rental strategy changes and the timing of an impact of such changes, hiring expectations, expectations for all sales channels, including international tender activity, marketing expectations, the rollout of Inogen One G5, expectations regarding the impact of Chinese tariffs, competitive bidding, HME strategy and expectations and financial guidance for 2019.

The forward-looking statements in this call are based on information currently available to us. 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 obligation to update these forward-looking statements except as maybe required by law. We have posted historical financial statements in our first quarter investor -- and our first quarter investor presentation 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 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 US GAAP and non-GAAP results are presented in tables within our earnings release. For future periods, we are unable to provide a reconciliation of our non-GAAP guidance to the most directly comparable GAAP measures without unreasonable effort as discussed in more detail in our earnings release.

With that, I'll turn the call over to Inogen's President and CEO, Scott Wilkinson. Scott?

Scott Wilkinson

Thanks, Matt. Good afternoon and thank you for joining our first quarter 2019 conference call.

Looking at the first quarter of 2019, we generated total revenue of $90.2 million, reflecting growth of 14.1% over the first quarter of 2018. Direct-to-consumer sales of $39 million in the first quarter of 2019 increased 35.9% over the first quarter of 2018, primarily due to increased sales representative headcount and associated consumer advertising. However, the sales reps we hired in the second