Inogen, Inc. (NASDAQ:INGN) Q3 2019 Earnings Conference Call - Final Transcript

Nov 05, 2019 • 04:30 pm ET


Inogen, Inc. (NASDAQ:INGN) Q3 2019 Earnings Conference Call - Final Transcript


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Good day and welcome to the Inogen Third Quarter 2019 Financial Results Conference Call. [Operator Instructions]

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

Matthew 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 third quarter of 2019. This earnings release and Inogen's 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, expectations related to our sales headcount, hiring expectations and strategy, our expectations regarding international sales and tender activity, HME strategy and expectations, rental strategy changes and the timing and impact of such changes, expectations for all revenue channels, marketing expectations, the roll out manufacturing and cost of Inogen One G5, expectations regarding competitive bidding, our expectation on TAV sales, financial guidance for 2019 and 2020 and expectations for 2020.

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 may be required by law. We have posted historical financial statements in our investor presentation in the Investor Relations section of the company's website. Please refer to these files for a more detailed information.

During the call, we'll 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 third quarter 2019 conference call. Looking at the third quarter of 2019, we generated total revenue of $91.8 million, which was in line with our expectations and reflected a decline of 3.7% from the third quarter of 2018. Direct-to-consumer sales of $37.8 million in the third quarter of 2019 decreased by only 1.4% from the third quarter of 2018, despite an approximate 40% reduction in sales representative headcount in the third quarter of 2019, versus the comparative period in the prior year.

We are pleased to say