Inogen, a Goleta-based medical device company specializing in portable oxygen concentrators, is starting to see its core business come back from the pandemic, and the company highlighted double-digit year-over-year growth in both earnings and revenue in its second quarter financial results, released Aug. 4.
The company more than doubled its net income for the quarter ended June 30. Inogen reported $5.1 million in net income, or 22 cents per diluted share, in the second quarter of 2021, a 103% rise from the same quarter a year ago when it made $2.5 million, or 12 cents per diluted share.
Revenue also saw a big rise, as Inogen reported sales of $101.6 million, up 42.1% from the same period in 2020.
“We are pleased with the recovery in our core business. Demand and average selling prices for portable oxygen concentrators increased primarily due to higher consumer confidence and higher COVID-19 vaccination rates leading to increased patient ambulation in the second quarter of 2021,” Inogen CEO Nabil Shabshab said in a news release.
The company’s stock declined after the earnings release, though. It was trading at around $76 in after-hours trading on Aug. 4 after closing at $82.26.
Shabshab added that current semiconductor shortages could impact the company’s ability to supply customers with batteries and additional oxygen concentrators going forward.
“As a result, we expect revenue growth constraints and a higher cost of goods sold per unit starting in the third quarter of 2021 versus the first half of 2021, until chip availability increases,” Shabshab said.
Rental revenue continues to be a driving force for Inogen as well, as rentals were up 85.2% to $11.3 million.
Domestic direct-to-consumer revenue was at $40.9 million, up 35.6% from the same period in 2020, while international business-to-business sales in the second quarter of 2021 increased by 57.3%, to $21.3 million.
Inogen finished the quarter with cash, cash equivalents, and marketable securities worth $250 million with no debt outstanding as of June 30.