Goleta-based Inogen reported declines in both revenue and net income due to the COVID-19 pandemic on Feb. 24, when the maker of portable oxygen concentrators released its financial results for the fourth quarter and full year of 2020.
Total revenue for the fourth quarter was $74 million, a decline of 6.3% from the same quarter a year before, while net loss was $5.1 million, compared to a loss of $1.3 million in the fourth quarter of 2019.
Inogen also cut some of its sales reps jobs, ending the year with 305, down from 329 at the end of 2019. Nabil Shabshab, who was recently hired as Inogen’s CEO, said during the company’s earnings call that it will look to hire more people in 2021 as conditions improve.
Domestic business-to-business sales were up 24.9% from the previous year at $24.2 million, while rental revenue was $9.4 million in the fourth quarter of 2020, a 71.4% increase.
Total revenue for 2020 was $308.5 million, down 14.8% from 2019, with the company suffering a net loss of $5.8 million compared to a net income of just over $20 million in 2019.
Financial results were released after the markets closed on Feb. 24, with the stock price closing at $51.59. It opened the morning of Feb. 25 at $53.91, a 4.5% overnight gain.
The pandemic has hurt Inogen, in part because its products often appeal to mobile oxygen patients, and COVID-19 has hurt those customers’ mobility. Shabshab said more rentals and an increased focus on patient access to Inogen technology will help the company rebound in 2021.
For the year, rental revenue saw a 32.3% increase, primarily due to a 27.3% increase in patients on service and an improved rental gross margin of 52.1% in 2020, compared to 34.1% in 2019.
“We are excited about our initiatives to drive new oxygen patient rentals, as we continue to see meaningful patient interest in our products. We expect these planned investments for this strategic initiative will impact our operating expenses in the near term … as well as the future,” Shabshab said.
The company also concluded 2020 with $231 million in cash and cash equivalents and no outstanding debt.