The COVID-19 pandemic continued to cut into Inogen’s revenue, as new physician referrals and patient mobility declined during a quarter usually marked by increased patient travel and demand.
Revenue fell nearly 30 percent in the second quarter to $71.7 million, missing average analyst estimates, and net income of $2.7 million was down from $9.9 million in the previous second quarter. Earnings per share of 12 cents, however, beat analyst expectations for a small net loss from the Goleta portable oxygen concentrator maker, which released its latest earnings report on Aug. 4.
Shelter-in-place and social distancing orders “have come at a time when our business typically benefits from a seasonal increase in patients ordering portable oxygen concentrators, or POCS, to travel and be active outside the home,” Inogen President and CEO Scott Wilkinson said on a conference call Aug. 4. “In addition, physician offices in the U.S. and assessment centers in Europe have limited patient interactions that have traditionally led to new patient referrals.”
Some bright spots for the quarter came from the rental market, Wilkinson said, which rose 17 percent over the second quarter of 2019.
Additionally, sales began to pick up in the latter half of the quarter. Domestic sales in its direct-to-consumer and business-to-business channels fared better than the international market, which was hit hard as new patient referrals waned. Health care providers also prioritized high-flow stationary systems in response to the pandemic, Wilkinson said.
Despite the market pressures, Inogen shares rose nearly 3 percent ahead of the earnings announcement, ending at $30.64. Inogen said it ended the quarter with a hefty cash cushion of $218.6 million.
The company has launched a search for a new CEO and outlined several executive appointments it plans to initiate in August for its sales and marketing leadership.