Inogen : Supplemental Financials Q1 2024

May 7, 2024

Q1 2024

Supplemental Financial Information

Use of Non-GAAP Financial Measures

Inogen has presented certain financial information in accordance with U.S. GAAP and also on a non-GAAP basis for the three months ended March 31, 2024, and March 31, 2023. 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 and other expenses that are not indicative of Inogen's core operating results. Management uses non-GAAP measures to compare Inogen's performance relative to forecasts and strategic plans, to benchmark Inogen's performance externally against competitors, and for certain compensation decisions. Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used to supplement an understanding of Inogen's operating results as reported under U.S. GAAP. Inogen encourages investors to carefully consider its results under U.S. GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. Reconciliations between U.S. GAAP and non-GAAP results are presented in the accompanying tables of this release. For future periods, Inogen is unable to provide a reconciliation of non-GAAP measures without unreasonable effort as a result of the uncertainty regarding, and the potential variability of, the amounts of interest income, interest expense, depreciation and amortization, stock-based compensation, provision for income taxes, and certain other infrequently occurring items, such as acquisition-related costs, that may be incurred in the future.

© 2024 Inogen, Inc. All Rights Reserved

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Q1 2024 Results

Revenue by region and category

Total by Category	Q1 Revenue	Year-Over-Year Change	% of Total Revenue
Business-to-business	$16.5 million	31.3%	21.2%
domestic sales
Business-to-business	$26.0 million	37.2%	33.4%
international sales
Direct-to-consumer	$20.5 million	(15.6)%	26.3%
domestic sales
Rental revenue	$14.9 million	(8.3)%	19.1%
Total revenue	$78.0 million	8.1%	100%
Total constant currency revenue	$77.7 million	7.6%	100%

Due to rounding, numbers presented may not add up precisely to the totals provided.

© 2024 Inogen, Inc. All Rights Reserved

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Operating Expense and Net Loss

(in thousands)

				Three months ended March 31,
Operating expense		2024			2023
Research and development	$	6,578	$	5,344
Sales and marketing		26,936			28,441
General and administrative		17,131			18,863
Total operating expense			50,645			52,648
Loss from operations			(16,274)			(21,915)
Other income (expense)
Interest income, net		1,403			1,525
Other income, net		143			237
Total other income, net			1,546			1,762
Loss before provision (benefit) for income taxes			(14,728)			(20,153)
Provision (benefit) for income taxes		(150)			196
Net loss			$	(14,578)		$	(20,349)

© 2024 Inogen, Inc. All Rights Reserved

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Reconciliation of GAAP to Non-GAAP

Adjusted EBITDA (in thousands)

Non-GAAP EBITDA and Adjusted EBITDA		Three months ended March 31,
	2024			2023
	Net loss (GAAP)		$	(14,578)		$	(20,349)
	Non-GAAP adjustments:
	Interest income, net		(1,403)		(1,525)
	Provision (benefit) for income taxes		(150)		196
	Depreciation and amortization		5,265			4,086
	EBITDA (non-GAAP)		(10,866)			(17,592)
	Stock-based compensation		2,416			3,442
	Acquisition-related expenses		238			554
	Restructuring-related and other charges (1)		-		1,809
	Change in fair value of earnout liability		570			-
	Adjusted EBITDA (non-GAAP)	$	(7,642)		$	(11,787)

(1) Charges represent the costs associated with workforce reductions and associated costs and other restructuring-related activities.

© 2024 Inogen, Inc. All Rights Reserved

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Reconciliation of GAAP to Non-GAAP

Adjusted Net Loss (in thousands)

						Three months ended March 31,
Non-GAAP Adjusted Net Loss and Diluted EPS		Net Loss				Diluted EPS
	2024			2023			2024			2023
Financial Results (GAAP)		$	(14,578)		$	(20,349)		$	(0.62)		$	(0.88)
Non-GAAP adjustments:
Amortization of intangibles		932			26
Stock-based compensation		2,416			3,442
Acquisition-related expenses		238			554
Restructuring-related and other charges (1)		-		1,809
Change in fair value of earnout liability		570			-
Income tax impact of adjustments (2)		-		-
Adjusted	$	(10,422)		$	(14,518)		$	(0.45)		$	(0.63)

1. Charges represent the costs associated with workforce reductions and associated costs and other restructuring-related activities.
2. Income tax impact of adjustments represents the tax impact related to the non-GAAP adjustments listed above and reflects an effective tax rate of 0% for 2024 and 2023.

© 2024 Inogen, Inc. All Rights Reserved

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Stock-Based Compensation

(in thousands)

	Three months ended March 31,
Stock-based compensation expense by type of award:	2024				2023
Restricted stock units and restricted stock awards	$	2,309	$	3,305
Employee stock purchase plan		107			137
Total stock-based compensation expense	$	2,416		$	3,442

	Three months ended March 31,
Cost of revenue	2024				2023
$	180		$	84
Research and development		460			458
Sales and marketing		430			774
General and administrative		1,346			2,126
Total stock-based compensation expense	$	2,416		$	3,442

© 2024 Inogen, Inc. All Rights Reserved

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