INGN - Earnings call transcript Q2 2021

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Operator

Greetings, and welcome to the Inogen's Second Quarter 2021 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now pleasure to introduce your host, Jason Somer, General Counsel. Jason. you, Thank

begin. You may

Jason Somer

Thank you today's you. participating for call. Thank in

quarter our Joining financial and second available earnings in CEO, of are CFO, Relations company's corporate are and results XXXX. Inogen's release Ali the the released Shabshab currently Inogen website. Nabil me presentation This today, Bauerlein. for section Investor of the Earlier

impact as with required periodic may filed uncertainties forward-looking disclaim law. set results except in our based information may domestic concentrators; and in forth to growth As without limitation, products, we the of including, short financial today's a expectations; related our to sales of for forward-looking prospects by our obligations strategy reports the in and Securities related expectations currently create statements expectations include to Commission. and statements, XXXX; and the forward-looking to are in reminder, the related our most driving forward-looking for business rental risks chips, batteries cost the supply by that channel; with will the information of our update and related beyond; shareholder are and products; for for only our our results any both hiring regarding COVID-XX pandemic respect awareness our using predictions The expectations and regulatory recent XXXX about long-term. us force; expectations physician as to sales term this value semiconductor and our changes; challenges presented and regarding our and expectations be and these channels; supply and inflation our involve call products; are today more to market our statements expectations on demand available statements on detail expectations date. and ability international reimbursement regarding and These our statements, to vary, our to Actual the Exchange

files detailed and of our the Please more for statements Investor financial historical posted these investor Relations in section website. information. company's to the have We presentations refer

present turn operating a to information information manage with items investors measures on and call, the our With business are both financial basis. core certain within useful internally not release. Shabshab. by Reconciliations provide Inogen's management taken understand, make that we over believes will are US tables will also excluding earnings in non-GAAP non-GAAP and and During and and other results Management certain financial operating uses call measures results. in Management for conjunction CEO, US President that financial and of GAAP non-GAAP indicative expenses GAAP our to the Inogen's measures between non-GAAP Nabil decisions. presented I that, evaluate non-cash Nabil?

Nabil Shabshab

afternoon saw of Good XXXX in in our the in strong of our prices revenue second growth selling demand of total XX.X% revenue and average from quarter first you second total thank call. sequential Jason. the you, the products quarter for of XXXX. for Thank We and second XXXX quarter were conference Overall joining of quarter XX.X% growth XXXX. from and

on of per the improved average the which sequentially vaccination the second quarter productivity of demand, constraints from with prior were the rental see pleased chain in higher second COVID-XX had well orders results. believe those revenue of rates I and saw concurrent now supply financial increased metrics reflected due seen our to you our channels, optimize higher effort direct-to-consumer we and periods confidence. supply mobility, XXXX. desire were improved the these of direct-to-consumer of XXXX quarter relaxation and of versus to we quarter metrics an quarter our our focused will and intentionally that growth when our for which due However, second sales within in With to or associated XXXX first versus XXXX to XXXX the capacity to by declines primarily improved versus pandemic. sales closure We PHE, Direct-to-consumer XXXX, by business-to-business as due of as strong increased quarter details related in will improved and leading sales the revenue results, Public sales consumer second provide order sequentially to population versus that, revenues higher channel. the patient with quarter international sales and the Health direct-to-consumer We lead revenue first representative the Emergency COVID-XX to

increased of portable oxygen $XX.X certain concentrators quarter XXXX a patients or this million, increased million COVID-XX and patients We to was million vaccination compared in quarter to increase the $XX.X $XX.X XX.X% in COVID-XX to orders as and the and of population leading XXXX. patient headcount, higher operational as increased assessment increased million sales total higher was sales XXXX second business-to-business increased outpaced long-term with rates in XX% of primarily relaxation for sales over no traditional discharge, offset the of to from our basis inside increased XX.X% compared European the vaccination comparative in increase Domestic of Europe, an XXXX representative demand due by For XXXX. business-to-business in well increased and $XX.X constant well for Direct-to-consumer the in period reseller due revenue XXXX. International the increased the to of cases million record second hospital demand which compared our professionals therapy currency million $XX.X in the generated secondarily sales $X second we million driven of $XXX.X increase XXXX. the of This hiring, business-to-business PHE to patients to the from average primarily the due in of to new along respiratory included million India in to XX.X% in of market. of the confidence. quarter second as in capacity the centers, as spike quarter the believe the competition the XXXX XXXX was to in second associated in of India hiring comparative within down COVID-XX sales attrition sales driven We rates believe in sales by primarily as increased of of in million, second $XX.X period second by XXXX, ambulation, XXXX, the was in in second International $XX.X consumer or to that XX.X% lower reduced to POCs approximately quarter of upon increased quarter partially pandemic. XXXX, for by quarter for quarter increase of XXXX. demand. greater to second primarily We improved versus distributor quarter related COVID-XX was believe COVID-XX the due sales to sales representatives quarter demand ambulation second in XX.X% on with due closure COVID-XX improving oxygen both sales POCs

add to and representatives, are while technology new continue being we standards look mindful sales We hiring our facing. maintaining to the and of constrains

in of up compared rate December XXXX, the XXXX. as quarter XX, as June hiring of second Our to XXXX, with slightly XX, headcount of increased

quality hires pool new and net expect of expected term size the attrition. to We and the in due candidate the minimal near

versus a rates. quarter patients and second We as increased million quarter, XXXX. on as in increased to first increased XX.X% direct-to-consumer the service, are of $XX.X our per in productivity patients $X.X service, Rental period order XXXX revenue performance we pleased billable patients inside same sales saw to average the revenue with second from XXXX, higher the sales of reimbursement the million on quarter and total of improved percent Medicare in the in primarily higher due of teams

primarily X.X% which compared and opportunities on driven to June initiatives by oxygen physician approximately up for March As facing increase XX, utilization COVID-XX our compared in XX,XXX well by XX, up patients leads as of greater criteria reimbursement as XXXX. PHE. Medicare service rental relaxed prescriber of we therapy to for awareness due June sequentially on increase sales the was patient XXXX, the XX, XX.X% force to had The to patients service, was XXXX, and

We that to disruptions overall. I are about improving talk like performance for we a our conditions indicator experiencing. the are rental market channels both sales is supply-chain our currently still would also in products and cautiously the optimistic positive direct-to-consumer for

proud the of and placing terms pressure fact in are that availability XXXX across XXXX, business semiconductor primarily supply semiconductor This our existing being batteries. able experienced our oxygen to additional we impact industries we concentrators have While portable of significant seen were the supplies. chip associated we chips to disruptions in in on in many avoid used shortage with chain supply

manufacture oxygen will negative products, shortage, likely across and work to mitigate the impact both all concentrators have our of these ability batteries on our boards. to been has portable at are we it chips the in a of have and used While hard as supply printed circuit impact

with to supply of and We purchase demand in constraints meets and pricing partners work challenges expect are to our facing market and continued open chips. and extremely until are these necessary terms But continuing prices chips purchase of supply the the trended third demand products inflation semiconductor avenues supply exploring if OEM to we available other to continue in than extent is is significantly of XXXX cost third quarter the higher stabilize. these during increase price, standard The acquisition and shortage. and from to expected has the parties

through XXXX. the will increase quarter feedback supply our expect believe of As on XXXX may first until sold quarter that meets these and these shortages a in of based supply continue prices and we of demand costs cost result, assessment continuing starting our inflated second We stabilize. and industry the goods

supply our price full by and X, we in as of are on our XXXX. we partially interim, increases constrained While implementing be demand these unable meet costs products rising offsetting September to the for expect across planning products to customer

the a oxygen for coverage to the regarding policies oxygen home of headache. determination XXXX, use of oxygen oxygen contractors headache. cluster to on national determination CMS; determinations new If of proposed the to coverage cluster administrative national use to approved, these CMS from equipment turning Now the make coverage announced home July would treat proposed removing for X, home use allow and the and latest change Medicare

alternative therapy in Additionally, proposed CMS oxygen of COVID-XX, by may removing or short-term and flexibility covered oxygen needed for expand limited cluster measures instead the is to to to access to tested when equipment the the for including to to in dispensing headaches conditions patient of proposed proposing allow of a the remove use and coverage diseases list determination. home also physicians be state oxygen chronic oxygen the patients and stable which make CMS chronic respiratory-related needs, for therapy. removing treatment to requirements be oxygen also limiting before acute requirement CMS for oxygen hypoxemia. or allowing

give to CMS on addition, flexibility in readings In and proposed disparities exercise performance to broadly include the more of define racial reduce care. to pulse functional oximetry patient to

Lastly, respond proposed the by public CMS is to to seeking reduce final medical decisions necessity. memorandum. the burden of to CMS comments and decision in proposed provider removing oxygen these certificate comments

supportive making greatest physician need of therapy, and are coverage oxygen patient these benefit for reduced can therapy. who in burdens from administrative We and on access would who of for believe that are improve changes expanded proposed patients, care oxygen decision authority proper patients

in the As increasing patient challenges, and on awareness market I'm demand and and and for we near-term expanding physician effect, I look that offerings access. on focused commitment strong the therapy remain the ahead, of focus POC oxygen and is our about improving [indiscernible] space. modalities while for confident patient offerings we To some Inogen's this have POC penetration underlying

the We to and oxygen leadership in while elevate challenges, position in committed in to therapy. our through evidence infrastructure supply our clinical invest our working investment R&D continue strengthen we market and are to ongoing

on efforts, and are While path we we I are believe in these to growth. long-term still the create early that sustainable right profitable

held Ali that, Bauerlein. expanded our medical I'm the and affairs Chief the our Glezer by now Stan's forward I to last months happy and roles, and with and Stan of team compliance Somer. turn Jason to in General functions. Officer research leadership two to Ali? and look clinical With CFO by Lastly, Jason's contributions legal to have call will I couple in new the Counsel held senior regulatory at contributions Medical affairs

Alison Bauerlein

Thanks, Nabil.

increase As first from Nabil XXXX, quarter of of the an the comparative increase period representing the second in XXXX of noted, $XXX.X was a for XX.X% sequential a of and total quarter XXXX. over revenue XX.X% record million,

Turning to gross margin.

total margin the compared XX.X% second second XXXX, gross quarter to of of the was For in quarter XX.X% XXXX.

to increased channels. to all sales, of margin of unit the business-to-business in prices which in period our to of margin to material versus XX.X% sales higher by revenue service quarter improved in gross versus partially higher increase rates, in on due have a second average Our patient cost was sold selling increase patients patients second depreciation in to labor was of total XX% XXXX sales, margin Medicare higher XXXX. The XXXX, in quarter primarily service. on quarter, XX% higher expense Rental offset and overhead of gross due the percent and costs goods service of gross same primarily reimbursement the billable direct-to-consumer increased as the and per a per and costs. primarily second XX.X% offset This increased revenue versus and increased higher of by the XXXX due quarter mix partially

offset the and EBITDA quarter of compared fair $X.X second million due of and the partially second XXXX, The the second the Research common in media expense expense, with As and with million million, comparative change million marketing second increased in quarter XXXX the legal Media in expense to adjusted $X.XX. the operating costs, quarter value million case increased to a costs of $XX.X expected of of diluted $X.X for our change the and TAV XXXX. XXXX, officer of reduced per costs. based change direct-to-consumer million $X.X $X.X XXXX, including compared other increased in expense, earnout on million court reported $X.X fair $X.X Aera to expense non-invasive New of personnel-related coding. expense. income in an to marketing decreased liability CMS in of $XX.X million, outlook quarter reimbursement in the reduction second bonus expense to increased development versus primarily associated $XX.X Aera against The primarily in of advertising and the in fair to of of the personnel-related recent was the Medicare total quarter of quarter to and of coding XXXX million value quarter non-cash was sales million the XXXX, of General the due period. expense personnel-related second second to in the million share of Personnel-related decrease quarter technology of earnout increased New addition. primarily with the second $X.X XXXX to second $X.X with expense management in due the fair XXXX, from $X.X the and and the to of of versus in million of liability the in In quarter million quarter transition of expense the primarily million income and benefit commission lower New expense XXXX, in regards decision in $XX.X $X.X by of recent and million to the second partially comparative million increased costs, dismiss in revenue Aera a liability the primarily administrative due operating in liability and in operating the quarter consulting a value income to the earnout quarter advertising offset the earnout second in $X Sales the along ventilation second compared million negative by of associated personnel-related in XXXX advertising, due increased of we increased the XXXX to period the of versus $XX.X increased decrease to XXXX. net value million, increased second XXXX $XX.X were costs. expense $X.X quarter versus increased

of with $XXX XXXX outstanding. million debt the second equivalents, and with ended securities quarter we no Finally, marketable cash, cash of

increased consumer worldwide a discussed. and previously new and to rates. uncertainties increased Now of include potential of supply COVID-XX the variant the components guidance, Delta the facing ambulation, the are chain of by confidence of critical to and continued higher addition impact These number in and the varying we impact the of durability caused emergence cost turning the variants, pandemic, of and vaccination disruption consumer

the XXXX, are result, mix, such our provide year to net adjusted for a revenue, As EBITDA including periods. for still and loss, guidance estimates full unable we revenue

context the second we be to constrains, provide to lower expect general can with XXXX. XXXX negative we Due to of channel. of half largest the in revenue Nabil discussed, the However, on some chain expectations half domestic half for supply first the business-to-business our than the total XXXX, of second our impact

half these To implement our be research, supply believe costs. unit the higher cost labor XXXX throughout X, to semiconductor building planned including are research which offset September as in per increased expects to partially chips also second development, due clinical the We we cost sold and investments of products, to rising it XXXX. in freight necessary the and of plan effective inflation goods is to materials chain prudent of of make costs, increases continue price across and still to We infrastructure. and

Given as will future we increased XXXX. expense and in we margin support predictability growth year revenue operating as well initiatives, expansion, the believe these investment which expect for

In second take net that, to a full-year cost increased of per loss sold half the expense reflecting XXXX half of addition, first in previously in expect while minimal expect net related related stock expenses to increase officer in expense and third XXXX, compared the XXXX anticipated operating goods with compensation such announced and happy and summary, transitions both to to higher supply-constrained the With unit, expenses performance-based XXXX losses we'll incurred be costs of certain In questions. the we quarters to of additions. as and decline, bonus for the along we XXXX, revenue fourth and in we XXXX.

Operator

question Blair. proceed Margaret Thank Please with your Instructions] with question. [Operator William you. from comes Kaczor Our first

Margaret Kaczor

the Thanks good taking afternoon. for and everyone. questions Hey,

gross metrics flexibility. few DTC realize and it but supply got you're I around bit seem little for does particularly chip guys margin. third You you've on pricing positive a shortfall us, fees had for more a like

So with few I've that setup. questions got a

the mid-single normally the So digits. to would DTC side, seasonality on a suggest down flat

However, towards we're you're supply seeing continue you DTC. travel to pushing more mentioned yourself rise,

those demand your business inventory versus be us might guess half So and and puts maybe walk different, the and through this how stats. how takes I from might affect that second within

Alison Bauerlein

quarter third take and Margaret. the out true certainly and think really, And what can I into second you're in I the sure. saw on Yeah, calling that demand is the side we with what consistent quarter. one,

We continue for for and our products. to see consumer strong products demand our business demand

and quarter is very in positive reflected you see that certainly So that our second results.

shortages are are they meet the chip However, seeing, that we demand. to that our impacting ability

So impacts I demand it's at it's more a what think when necessarily the look we the dynamics, typical and be of quarter reflective perspective. not third fourth have from that would and reflective supply chain our by of we driven seasonality, quarter

So XXXX. revenue do lower we as to said, than in the of we first the of half expect be half second XXXX

Now, that in versus the the the up the last given margin shortages. sales expect half in saw on comparative in course, expect comparison, certainly chip a year-over-year costs And see do quarter, to chip sales of in we limited back side. we we're improvement periods the XXXX, will given the XXXX seeing the but the to and low third the don't increased be fourth gross the we by sustainable be second quarters on it year, still basis of

Margaret Kaczor

Okay.

sure maybe the a ability to your sounds or demand slightly could going board, down customers seeing hear I like maybe to want across to still So access some that we demand you that supply it to little sequentially. right? but maybe try Did to you're all DTC see are products. make obviously some So that DTC shift bit, meet

Alison Bauerlein

we would versus that's I fair, and sales typical high. be DTC seasonality again the say, the to channel think second then quarter, the the down third expect Yeah, mean, that would quarter our in I in the quarter already in Margaret. down a typical fourth being

remarks, of lack business-to-business to that expect the be and expect channel would impact we our US we trend we in said terms to the So, in continue of as largest prepared type supply. of

to can Of all to business that we based trying the our and on allocate that product fill is constraints of lowest we our customers across what supply see we course, margin business. that but are

Margaret Kaczor

Okay.

out that appreciate the second a it how next maybe like sounds and So half to I material first half, leads than kind these, of ton of there. me you've the lower but got are which set the of is questions, is demand

that any Thanks. what us today, that, on the to you're it give of of seen way isn't guess? you at or much I why the have based how seeing might relative what in quarter? second you can inventory So, is we've looking right sense And

Alison Bauerlein

to Yeah, I necessarily that at say it, Margaret. way mean, look right that's wouldn't the I

on look is inventory versus the we our or more so million inventory material levels If our at business. books, that, within of this balance supply sheet, But see you revenue supply is the of than you'll don't have a chain XX this acute chain. so levels in

parts the circuit subcomponents and boards are experiencing suppliers where printed these suppliers of parts our bought of So, we various are by of and chips shortages. these their batteries

certainly So, are possible the open And this of as we that is business. acute offset as this chips. purchases market of kind with much is to issue trying an impacting

products, goods are We the digit goods of unit our unit a in cost cost to higher of cost of will quality increase associated that with we these but mid-single of for those range significant sold, high-single that of the seeing costs. purchased sold we are the with specific those products, parts a validity validating those per the impact in

Nabil Shabshab

chain supply we it's but the the paying to happening case we're we're with the believe multiple, issue, a all goods time the them original to stopping we'd as for we're price demands; that of way our market, get like or the said, working across a to there and doing What business our be do meet we downstream, for to supply just the clarity, don't can, we the of channel source not meet argue all fact Ali multiples inventory. and of go much put basically try the disruption. costs this actually demand a that's demand But hand-in-hand just the as despite an don't are by Margaret, impact we And work meeting - lot with in we're way. supply fair to getting not as But to letting open compensating trying increased cost a allowing we providers go are on will is can. as we're on we're but multiple, best because to have We allocation. their

Margaret Kaczor

I'll that more all to I'm just in pricing, channels. sneak referenced terms I you're apologize. release you various pricing up the one Okay. in. seeing press going in But think of guys across in the the board

And so if more price and that, wait why wouldn't rather you Thanks I for guess to guys. than Xst? you raise now, could speak specifically, September

Nabil Shabshab

I Margaret. will take that one

contractual there that doing some very There it going in in fashion. are orderly we're a a fashion. we to but timely have and believe take are we up, So are we prices - obligations

conditions go So of X, digit customers. terms about through range. different on and it into depending the the it XX% will it's will go low-double We effect; in September that of believe

bit get we're trying have also without to covering can it. trying that sort of timely to most and pandemic, of but right action. take we the the in has ahead level our price actually on pass that But the a believe want that's we cost business fashion increases to require up costs, of the increases we can. So, And clarify, we're increases now gotten the impacting us little to a all just we're not happening to that of beginning been the I since catch in level

Alison Bauerlein

see of add Yeah. shortages the higher that, Margaret, costs the on chip didn't associated the any we to to in And second quarter. with just

second don't have any in purchases, of we little didn't raises reflective getting see the raises as those that here. gross the prices, increased really reflected buying the pre-pandemic any overall people purchases. average to That's price formal the extended just show warranties, the selling accessory but levels we second the as well kind related of of prices quarter. to bit margins saw back about average more you So talk selling And that we a that in in quarter, changes to margin of batteries,

wanted So, I just to that. clarify

Margaret Kaczor

guys. Thanks,

Nabil Shabshab

Thanks, Margaret.

Operator

you. Thank

question next Matt with Our with question. from KeyBanc. Please comes Mishan proceed your

Brett Fishbin

Fishbin Matt. Thanks the Brett is questions. taking this guys, for Hey, today on for

gross price portion XQ September, then potential Just you wanted increases? maybe price us the headwind given looking the about on a can can the bit, going how sense a of little and be headwind effect can up thinking a magnitude into until offset ahead, to the think what follow aren't for with of margin you increases you of give we

Alison Bauerlein

Yeah, question. has multiple sure. margin Thanks certainly the parts gross in for it. And moving

I that related So profiles want in prices selling very different business it's cost to business-to-business happy a our everyone our because to mix just and business factor our direct gross goods in areas. There's are there remind margin sold. of not our consumer versus

cost at to unit in increase, mid-single of in sold, is the size per high-single look important a very But we're to goods projections. be increase when expecting think looking to certainly, sold digit that per about mix So, the when margin at of goods you're looking impact, gross cost we at cost unit. the of the

said, of And our of for in majority X. for you higher increase September low-double-digit the a what chip customers we have then, think Nabil course, about with effective can that's pricing the So these prices. units to expect as

expect, second gross the quarter to those we XXXX. do we of decline see margins So, given were factors, versus in where

past So, to we a would higher near perspective these not perspective be are get costing in pricing the we until and costs. levels expect given term, those from repeatable, we a where

Brett Fishbin

plan reps? on on add can that Thanks more still new hiring approach you reps additional do for change to comment how can the constraints color. net supply you also the to second of basis And in chain a the And some then half?

Nabil Shabshab

in expect shortages the that We're hiring don't supply but we're chain seeing, Yeah, we've a adjusted said, that of hiring. we you just our to as the of in terms plans reflect chain hiring terms net-net mentioned, the trying for supply plans, hire. the we in reflected reps don't quality the so are hire, attrition definitely conscious to while of remain over very we shortages the of we cover but and being increase

Alison Bauerlein

come Yeah, take those because just longer that beyond to still up into to physician is our add investing we to XXXX on looking field building in relationships. are a reps and important as those speed to that sales-force lot

are facing hires. sales-force said, on attrition continuing out sales constrained with build So, and more team to we being offset direct-to-consumer we're trying replacement a our but physician as Nabil inside that to hires,

Brett Fishbin

And from Alright. me. one last then

Just putting bit Latin some of months last particularly expectations, as versus progressed the you've in that you the Europe challenged, the few second, on areas for recovery you. how near-term a headwinds like over out aside more previously and can comment has Thank America? international called a

Nabil Shabshab

in the on as Yeah, been by products. seen terms international our so diagnosis well the encouraged progress demand that we've on side, we've of as

all direction, been trending to be. these are new of however, very about the going we in what variants far, remain So impact it's right the cautious

As next, market all being we're we're the and/or the guidelines you [indiscernible] and about. over that return we're is that strict the hearing far. the demand seeing demand seeing very going The is thing all cautious restrictions of impact to to the throughout channels a but restrictions impact same, return you're have the that European will that on countries, so US the terms happen in about of to one what's some adding in of and the more strong an dampening potentially know,

Operator

Thank you.

with from with question. your comes Our next Robbie proceed Please question JPMorgan. Marcus

Lilia

taking this the for Hi, for actually Robbie. on question. is Lilia Thanks

give little bit So could on I a color was bXb more business the specifically. hoping you

XXXX? Is outlook some increase over demand the size sequential we Just over we the bounds this for should that about way decreases sequential could the in as thinking how saw Thanks. quarter? year? variant the the of to COVID-related benefit you like the in spreads the in or that saw another any you're Do that of expect similar think quarter result Delta you balance there

Alison Bauerlein

you I versus the on in the our the supply partners, but and and the think in across that the to will certainly first products, demand the side, interest think our fourth strong that But third half of are BXB constraints continues be grow strong to XXXX. for continued the limit seeing Europe. ability in do US I product the both quarters we

our treatment, So play, term constraints. are COPD still it demand we in with largely of as recovery are but associated like factors well short does limited being both that seem those core use the by supply COVID-XX, the as

Lilia

more product one. be in on timelines should about New one sort for have stand quick Do where on thinking development And just this? Thank Aera any the Thanks. it. of you you Got And updates you. here? any you can then share we

Nabil Shabshab

you question. Thank the Yeah. for

on benefit path of that high forward. that actually investigation terms providing therapy. could the patient So we're path could in what diligence on on time, continuing between terms terms our oxygen defining oxygen therapy any work and a moving can continuing we're decision we're support At And what on point make from finish in this a in forward product guidance work, our population the and that. we attention progress profile, patient New Aera, of flow we of the and in combination bit until be so diligence turning the most more the to more little to not we're

Operator

you. Thank

Wang Our with next question comes from proceed Rebecca with question. SVB Please your Leerink.

Rebecca Wang

DXC, business, In your a the images the focusing then this I then just Hi, is should mean how and I Wang about we rental As think you're for might four should your rental Thank Rebecca on Antalffy. long of on higher the And domestic you. from question. four and - BXB Thanks this of for makeup how to perspective? in margin Danielle level increasingly we business, the think does internationally? about for those be an and operating makeup the parts? how guess term, it question. want ask

Alison Bauerlein

sure. Yeah,

to business best we It been And think field the the over become we've out we time. take that thanks growing physician build insurance question. patients. provide So do their would to continuing to way we as more on we bigger to continue team I'll Rebecca, term, we our portion our to that our sales prefer has that's of up force to set and what as think the rental and rentals channel a expect facing access gain our use patients the products benefits and that, expect said new access sales is to fastest products. our of inside for focus And to long that

we strong want will demand we continuing BXB course, do working to to for up that think with also our who more the versus POCs Of help us to [indiscernible]. with be and to partners, sales are patients product get direct-to-consumer set continue there also continue

our largest area of with being balanced So fastest four approach and we grower see focus likely rental the us the for a channels.

Nabil Shabshab

workforce, source we thought, the the facing those focus Rebecca, into one terms business additional of when could volume talk in rental about too. physician our

So that impact of cash. also as being diagnosed and onset rental could it well in us of terms or at has patients a positive way getting then prescribed and as go into either into

Rebecca Wang

part that? as how that operating helpful, all impact - be margin That's very provide on should and growing your longer rental can the you. a how think business, you bigger does to any we of about car that term, Thank

Alison Bauerlein

we marketing that we profile, hit nice we it to be in becomes do would cautious all have and of expect a Over long build our improve profile of EBITDA bit And has business. the that sales terms time business in to up little to the business. that business. costs portion EBITDA just there some bigger But occur margin revenue front - of as term. Rebecca, it takes the in a the we that up I the and time, very expect would think you the profile, that a

Rebecca Wang

Thank you much. so

Operator

you. Thank

Our next your from with proceed question. Company. Please Needham with comes question & Matson Mike

Mike Matson

if Thanks little thanks. issue. late, little to bit Yeah, taking I earlier. a joined about so semiconductor discussed talk wanted I of has questions. a my some been apologize the the this call But for

wondering of to do sort the saw So able much have have this do I half when you that about half you impact that I the visibility - understand the lower is year, guess will you're next that year, for the than that what of side the the I next And of get? to quantities how equation, into expect first remainder cost be that revenue into also actual into expect but I'm second to what of for you year? be I and you this lower, the comment but year get know example?

Nabil Shabshab

Mike. start, question. I'll Thanks for Yes, the

us, that mix, way these very people. we for only a tell, vertical XX maybe just And But to planning fighting we're or said, lot further that a of a so XX-week can the out. this suppliers, part by our are characterized customers cycle like for as allocations for our on a for OEMs, not the customers, but you in as So fluid is in of with situation, with. of background, industrial other we're bowl actually huge are the so so

indicating compensate of until doing best aggressive not that that in as how - market until we open visibility While that the out not to our that QX backup, going said, time, then in you not there matter to are no of indication QX no are the we're us much honestly With on they're you And extremely to through there it's XXXX. front is, to for can. orders. of we is visibility, see actually shipments doing stabilize XXXX. going to on, there is be many normally, is start being able answer, we provide further doors as go knock give assurances. But terms much with the that And

So, not year, QX, closer than we're further visibility the towards QX, is of our And but actually working towards that. end stabilization. hopefully a the

Mike Matson

the so think that understandable. press And side. then the the increase, I just DTC price that's release Okay, on commentary now, the was on in about

talk increase side? the do your there, what any just is Is that? do And you demand on you prices? sort to to can there prices when ability those about of what, either to raise categories in BXB elasticity expect of that So you

Alison Bauerlein

talked take the price increase Mike, we I'll is Yeah, that. the about business. actually Sure, across And sure. that

are consumer for obligations. direct we prices X, just to increase all not expecting contractual to subject of businesses, our effective customers So course, September

to are the process our we we majority going our increases, base. across through customers with price and So of now, these that do customer expect that occur discussing

high - price side, the course, associated expect are the the many across demand but given is a place, given across decrease, the we we BXC significant elasticity the putting prices, and what people in increase, board not seen products inflation impact on that Of so level and with there on the availability far. we BXC volume that side, of thus we've sorry, some have price seeing in are seen

Mike Matson

Okay.

- where first ended you offset volume so possible I could still it and increase impact, is the that of the the of mean, half sort could price above or? kind out And come you

Alison Bauerlein

expect into into taking half account the was sales of increase, in even So of that XXXX. second factored our comments price the half That already for the we apply comment. to first below year still

Nabil Shabshab

mix, management still can, And we additionally, all stand. mix, channel despite but of the the we're comments the the maybe, everything doing

Mike Matson

then since little integrated any about from the POC to supply was Okay. timing could product just maybe issue the and talk anything Aera while you if seen or high from new products. All right. a new. does been then a we've And new level, a perspective, any of it's New effect a this effect, launch I product, new wondering plans maybe

Nabil Shabshab

launches In sort before like that, as but that talk you point actually providing keep up. us, just this about Mike, any not then. talk insight general, reviewed don't you of At time, into coming this we're time, in updated. with we'll them are we about to we At

Mike Matson

Understand. Okay. you. Thank

Operator

would I are to further Thank any for closing this you. turn back at like questions There comments. time. over management no to floor the

Nabil Shabshab

care our evidence-based engaging as a vision our we with progress the respiratory reach to global strong our of look a our for Thank becoming make the chronic you encouraged conversations I are demand build chain experiencing. solutions, in of your by market I'm XXXX, quarter in to day. industry-leading saw coupled time strategy will the making solution. good challenges position with to you. spite believe a underlying I improved financial stronger innovative supply for second the results Thank and are Okay. leader we us the we with Have of energy. today investors on forward investments we

Operator

conference. today's concludes This

a you at wonderful for disconnect evening. this Thank Have may lines your your time. You participation.

Inogen (INGN) 5 Aug 212021 Q2 Earnings call transcript