In Tuesday trading, shares of Inogen Inc. (INGN, Financial) jumped more than 23% after reporting first-quarter earnings per share of 48 cents on revenue of $79.05 million, up 50.6% year over year. The company managed to beat earnings estimates by 19 cents and revenue expectations by $15.19 million.
Further, adjusted earnings before interest, taxes, depreciation and amortization grew 42.7% from the prior-year quarter to $15.5 million.
“In what is historically a seasonally slower quarter, we were able to generate record revenues driven by strong sales in both our domestic direct-to-consumer and domestic business-to-business channels,” CEO Scott Wilkinson said. “We are executing on our strategic initiatives and remain focused on increasing adoption of our best-in-class oxygen product offerings across all of our sales channels. We are currently ahead of schedule to meet our plan of hiring 240 Cleveland-based employees by 2020. We believe we should see strong sales growth in 2018 as portable oxygen concentrator penetration increases worldwide.”
By segment, direct-to-consumer sales grew 67.8% from the year-ago quarter, driven by an increase in sales representative headcount and associated consumer marketing. Domestic business-to-business sales also beat expectations, growing 60.4% from the comparable quarter of 2017 as a result of strong demand from the company’s private label partner and traditional home medical equipment providers. International business-to-business sales increased 48%.
Moreover, the total gross margin was 47.7%, down from 49% in the first quarter of 2017. The decrease was due to lower sales revenue per unit and lower rental gross margins, despite reaching lower cost of sales revenue per unit.
The company raised its full-year 2018 revenue guidance to between $310 million and $320 million from $298 million to $308 million. Further, it is increasing its full-year GAAP net income and non-GAAP net income guidance range to between $38 million and $41 million.
It also increased its full-year adjusted EBITDA outlook to $62 million to $67 million.
Disclosure: The author holds no positions in any stocks mentioned.
