Earnings call transcript Q3 2022

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Operator

Welcome to Inogen's Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode.

Following management's prepared remarks, we will hold a Q&A session. [Operator Instructions] As a reminder, this conference is being recorded today, November 2, 2022.

I would now like to turn the call over to Agnes Lee, Senior Vice President of Investor Relations and Strategic Planning.

Agnes Lee

Brock. you, Thank everyone. Good morning,

press today with Kristin are released and me the XXXX. Shabshab, results Investor in Relations section supplemental Nabil our CFO. financial and of This of Caltrider, quarter we website the CEO; is Earlier available for the along Joining company's third President release the this financial morning, package.

in strategic other regulatory our expectations presented our external hiring related in reimbursement respect cost including used inflation demand term. statements, and business, of our future approvals; including, XXXX statements about and increasing for related our growth As European for short and supply quarter forward-looking and and and expectations; our expectations our and our the expectations the a a expectations products challenges without internal of expectations to and of initiatives, term include our to beyond; reminder, product financial on rates; progress semiconductor results expectations both XXXX with to today will profitability; our and market supply on clearances regarding the related our for prospects for information sales return strategy regarding products innovation; fourth the to our long limitation, teams; to and productivity POCs; parts chips

obligation these statements, be law. filed vary, we Actual may predictions may in today's detail The and risks update required with forward-looking involve forth of XXXX. periodic our forward-looking available any November date, statements are are the disclaim more most and as SEC. in that this us as X, only by call forward-looking are report in recent currently except based on and to may information results set These uncertainties statements to

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

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

will over Inogen's I that, President CEO, turn With and the call Nabil Shabshab. to Nabil?

Nabil Shabshab

of and from quarter granted revenue did morning well Good the Agnes. we thank who call. our pleased and conference I'm or delegations a Thanks, tremendous joining fulfilling XXXX job incredibly team BXB Europe for as our countries were backlog where third with in our driving orders as exceptions. you QX,

durable return the addressing demonstrated QX excellent excellent at and companies, our risks inflationary to profitability possible MedTech strong team our health in of with that long on the to are to term. and and generally to extent at macroeconomic delivering conditions, associated with to our sustainable of part the to control outside on course resulted unprecedented aimed our in progress in risks mitigate Similar hence the this performance transformation focused levers our are and we contributing against end XXXX, also and stay quarter pressures have we and started subscriber currency revenue other We of emerging of XX.X%. market year-over-year acutely The constant growth consumer the growth strategy ongoing more we the quarter. control, focused those critically growth the efforts understanding delivering are third extraordinary and medium

share update frame to are like challenges, address around on and managing the supply this the how take call, our a thoughts and initiatives to remaining during and transformation. importantly we intended market productivity then chain moment to expenses. strategic time and and headwind, to the drive some Hence, with would optimizing more commercial macroeconomic continues elements ongoing on operating progress I help excellence These horizons deal are initial

our and first. related cover horizons pillars strategic me time Let

include new core product accelerating oxygen pillars expand driving the in diversifying and market therapy, channel penetration portfolio. time, while to global strategic enable we across sustainability markets, growth presence right profitability. Our horizons portfolio initiatives the and see our our of plan our to At durability our organized long line time build and through term inorganic and top strategic efforts. We and three aspiration that returning introductions

short enabling focused best-in-class focus. are Efforts in portfolio and penetration. commercial primary discipline optimizing talent and standing our execution our instilling and term, rigo base the on to the with and systems, service in drive In market R&D up, expand tools on remains investments sales and sales place, productivity excellence higher and management

anticipate the offering align growth. address clinicians. services to next help plus new new strategy term, In accelerate expected the of look generation our anticipate execution, population introductions include and commercial value health or and we indications differentiation value that we term, of product POC the continue core a with POCs, further strengthening long patient digital and patients added the therapies services that on pipeline building a device and Inorganically, to longer to and position opportunities new that making of a growth as digital benefit organically, and medium In improved and health our while therapy ongoing the we of including added market portfolio further and result profitability. will combination in for a with will introducing oxygen pillar

in new drive innovation drive R&D teams hence efforts growth. product product development Our term and their and are to accelerating introductions long the medium to and

we and term advocacy of clinical drive horizons, a therapy potential medium evidence economic across for to Additionally, to dossier and and POC oxygen plan beyond. expeditiously long based the for build COPD

the inventory. Turning semiconductor and focus relentless to supply continued to investments chain, have we secure

sourcing when around redesigning certain suppliers, products shortages. on to Our pressures team's and most mitigate parts actively to and chain open our actively help work all through market efforts but acute persistent managing diligence our supply us not continue the by regular possible

made into We but challenges continuing managing year, have progress notable uncertainty at supply XXXX. in some this chain see least

productivity, this excellence teams, we our account made direct have working our year and commercial and With respect optimizing consumer BXB management. towards strengthening our and progress organization steady performance to building strategic prescriber team overall to

increased than business, For have the XX% period we revenue first for in of to our same more compared the rental nine year XXXX. months this

and hurdles We have coverage the our continued new to while refine increasing new target existing add strategies prescribers, targeting prescribers. from and to

be our million convert which added to expanding actively Humana expected been that rental US, with in is the patients. overall We private as have from prescriber we referrals to expanding lives drive to we most in productivity the to of by access secure coverage expected payers market can business rental recently are patients. XX covered sales number approximately the patients Additionally, prescriber

see incredibly market our productivity results delivered we pleased strategy the and prescriber XXXX. go are efforts and path performance with by to team further the refine the improve to We accelerated and solid with to a ongoing in

For to continued and systems enhance data our that performance. be DTC and tools have our productivity efforts sales more optimize to build business, we management, driven ability and to our drive refine improve and

talent newly are We with our and onboarding training. continuing developed selection, discipline around development, also

and for ramp as we organization. notable the result, improvement conversion of a sales rates productivity are the as associates across new seeing As acceleration well

and to and [Technical we direct improvements focus a our prescriber and of as demand to agility enhance productivity, differentiated, and management expenses and goals. leadership optimized data role we significant efficiency we promising and XXXX, in systems, to sustainable on support across will productivity further commercial his also Difficulty] patients. workflows, for plan re-architecting supplier consumer we seeing our and well play and commercial duel optimizing As continue delivering that on scalable teams notable Difficulty] operations, our our already Vijay experience in towards discipline, operating and as sourcing customers are will including [Technical and a team

update ahead, sharing to on MDR progressing the review regulatory would I as The European Before clearances. an of the thoughts our is European on submission like horizon expected. provide

are progress the the yet. on We cannot encouraged cautiously speculate that timing we by

have when We will an update approvals. provide we

to resulted the Austria, approximately. in until selling previous France, countries, exceptions Portugal derogation were of end the a continue Our Switzerland to of October, and and POCs countries our end in file where European until receiving commercialization five continue to strategy or of XXXX request in allowed UK, approval the number we including

demand may organization Difficulty] should and [Technical our evidence chain As present. steadily in in quarter, offerings strategic growth dossier. by revenue our potential the continue that new strengthen challenges XXXX supply out us progressing and product to are similar clinical we this build underlying initiatives our remains for commercial navigate steady, the dynamics evidenced help monitor pipeline but drive At to our to our unexpected the same if productivity time, we

to continue and profitability. to and pricing position Difficulty] Our medium strong challenges [Technical balance excellence our sheet, term return manage cost and us allow strategy long to cash execute

strategic cash our We setting are on scale free and XXXX beyond. flow initiatives, late for and us return making up to progress positive

have medium We into supply for term as of guidance such, quarter. are revenue short we providing fourth and to the semiconductors visibility

quarter creation. our drive to growth, information on to the providing in fourth We and and look forward value opportunity you updating execution and further on our progress profitability

I Kristin? will Kristin. now turn the to call over

Kristin Caltrider

domestic Thank orders. good everyone. business-to-business [Technical you, customer Difficulty] morning, Nabil and

XXXX. exchange On revenue foreign over basis, revenue basis quarter and points total third a impact total on a currency international the negative on constant basis XX.X% For a revenue. had XXX negative impact QX XXX quarter, third points increased

$XX.X primarily lower-volume sales and a million as $XX.X of a Looking reimbursement MDD the the decreased rates. revenue of Domestic X.X% more the at Medicare period, [Technical EU in third million the [Technical to comparative from comparative XXXX limited from expiration period, by internationally in Difficulty] to $XX.X driven Difficulty] ability by XXXX ship quarter on due million to driven the detailed higher in certificates. direct-to-consumer

revenue third revenue from unfavorable Rental partially points. prices. discuss XXXX service mix XXXX, driven quarter in driven to costs buys gross XXXX, and quarter of due partially device pressures, by our increased decline to by open-market was third of rates. gross costs inflationary selling gross channel basis declining and of Sales basis the the was XX.X% the XX.X% was third on versus third XXX reimbursement X,XXX of XX.X% quarter by material write-offs, a primarily points higher Now by decrease offset higher offset and the higher margin the XXXX margin quarter margin. Medicare in The of in

to of $XX.X the compared third in to on to expense an million the million operating categories. all quarter Moving Total XXXX, increase in expense. across increased operating quarter $XX.X

with for the First, quarter increased The development million, an third in majority research support was have spend invest $XXX,XXX of the versus continued in of this total $X.X increase of activities. spend and we to of development quarter a of product XXXX.

expenses. consulting a bolstering our to was related increases [Technical was advertising Our total $X.X and media primarily fair-value administrative million $X.X New rebuilding aimed increase Aera spend the and as costs prescriber Difficulty] primarily at marketing in the subscription liability. earnout sales and the quarter benefit personnel-related expenses, to $XX.X of was core for and increase higher change The in decrease as million increased from business, fees capabilities, well spending million, in due a in the

loss XXXX $X.XX. and net On of In a the loss of we reported per adjusted loss of adjusted per million third million diluted of $X.X basis an reported share quarter and share net of [Technical a Difficulty]. we $X.X loss an diluted $X.XX.

debt balance in increased our as September with by receivable XX, $XXX.X maintain shipments sheet. balances September of strong the large of no balance million to $XX.X onto to driven in With sheet outstanding. cash-and-cash Inogen quarter. XXXX. equivalents XX, Moving a BXB of the increase XXXX as continues million Accounts

make additional sheet on current assets the on other to items not inventory. the inventory, balance quarter chips finished as prepaid sold investments yet purchased semiconductor and We in reside but the in continue and expenses These for open-market significant this incurring cost goods. our

As $X.X XX, component balances of million in the million, prepaid respectively. September $X.X of and these XXXX value were

I outlook. our turn will to financial now

quarter. As providing for we are guidance Nabil revenue fourth mentioned the earlier,

for now for $XX on to are continue QX context expected of $XX will in XX% a of to disruptions range modeling This supply-chain growth semiconductor buying QX not chips. to forward constraints, year-over-year to in to revenue We including To further might in the increased the help million, We company our provide have XXXX margin expecting XXXX. we million XX% cost do XXXX total resulting compression actively and into cause when subside. is manage line-of-sight of basis. supply-chain

allowing in prices As expansion and is QX of increases the our impact to this potentially ‘XX selling remain, over-time. will ‘XX taken reduced impact margin QX for offsetting

are We inventory sold also goods. prepaid these in form of decline anticipate components the will and balances that as finished through

perspective, capabilities. expense we fourth in long-range operating an levels quarter, see of strengthening at to expect From with in-line plans aimed our the similar original spend

us looking judiciously revenue and while set initiatives, our profitability. ways return key positive and for the for a XXXX we free-cash long-term ahead continuing to growth uncertainties invest look we which As economic with to to are to up drive flow, in toward

And take to with that, happy we will questions. your be

Operator

conducting Instructions] your a Please of session. At today this Blackman be time, Mathew question [Operator question-and-answer from we will question. Our proceed is Stifel. first with

Mathew Blackman

everybody. Thank for morning, questions. Good you taking my

but think for any I underlying your given two our way increases. seat the to got in the And think to the supply follow-up. I've in businesses? can sense me. there Nabil, noise, also one price the of one each of get BXB like US biggest Maybe of Just demand demand US, especially you in is then Is the true a talk looks what DTC picture you and trying in challenges channels,

Nabil Shabshab

major orders conversation we've that we me in on excess just assessment, in softening little in that we Matt. you by for a can the general, to we end Yes. demand remediated. evidenced the terms let bit. versus to capacity normalized like continue meet softening And to How the strong a the situations get sales and a supply wish do I see really as supply in the we actually case start are and cash as I have very either So today? we're said, full BXB in the a have in of situation Hey, a seen DTC and/or to have how not In by me especially it's side, year were saying, healthy the US. channel going BXB we back demand

So difficult. are and that pressures that. the we an know macroeconomic potentially conditions impact, working isolate hard might inflationary to We it's try have

I from we're As the terms in But pull I in far, eye how be very terms an but is, you there the we're is think said, able if that the to and it's macroeconomic steady not watching diligent easy say, conditions. for to impact of demand being performance, out we're of so from would keeping that. any

Mathew Blackman

follow-up. the then And Great.

to As we And such on able have don't it I into. think you early year it year? percent about sounds of be the you isn't expire you Thanks. to by line to do want the fourth but delegations realistic do will OUS sell business have quarter, expect of is a of sight your come also end. there approval next timing approval, know that what gap to MDR speculate could like

Nabil Shabshab

you there the is So maybe for thank -- so question, Matt.

far of the first we we Let not the have me -- cautiously from we start so progress seen, that have all moved are with that optimistic about.

from moved we the certificates for and Also, date We delegations remember, have approval only not the EU the exception. not you BR the and actually if QX. got

in able the modeling year. can for revenue the meet to believe countries in more would those also or might be allowed in three against shipped be In we we of the we countries, us to this terms thinking supply make five bit demand. cover to continue orders had between We fact, at open that gap but to variables that specific Europe you a the little around sure play, -- that for that

Mathew Blackman

you. Appreciate Mike question proceed from Matson The Needham and Please with it. is your Company. Thank of question. next

Nabil Shabshab

Hey, Mike.

Unidentified Participant

Mike on Joseph is this morning. for Hi, this

guess the just I we're seems shortage with inflation, first So seeing, more labor economics favorable become HMEs. of it like POCs for one, may the have that

your customers? kind and from Just hearing on get to that guys what been you've your of BXB thoughts want

Nabil Shabshab

go premise. to back me let So Joe, maybe, the basic

the the you are I lobbying macroeconomic favorable think think by industry or other than the the inflation look not I wages at in in HME condition coverage the industry, if model. the beat to and HME costs

maybe HME the I the that's think a of based overcoming first continues, in foremost the be and why lobbying model, delivery of But are cost very to that terms is terms happening how sited thing delivery therapy of is proposition reimbursement strong POC we remains challenges. demand in some to increasing at terms you in the the model and in slightly. favorable of of the they think rate, that if I those the think, model rental look advantage

second of how question of hearing orders, BXB itself terms was of very the to the backlog -- the to we from of think all channel most, conversations first with think think received in but -- respect I Ongoing, mitigated which healthy your I what business. in and not BXB. so all, positively was the I we're part

healthy how there, of in general. here discussions but But in continuing coming as remainder the in see look we we are to Now normalized with they're the the does general get ongoing what not terms for mitigate that we few notable levels, the back and in, year like? of as are exceptions to when orders orders a well sales

Unidentified Participant

possible, that been think have on size on just If the Maybe backlog, with remaining still quick And continuation that. through? that just then follow-up and customers can more. then a I you US you guess, a one do worked the

terms improvements, force you give guys way give this can last you and this guess little the detail there color bit In is kind gains? of what of some sales of any productivity a quarter? metrics kind Thank Just the physician done more I you. productivity the more quarter, of on of the have about there

Nabil Shabshab

Okay, Joe.

So simple in of to let me We're going take the on the backlog comments orders not sizing the make BXB. first. one

you at on. performance backlog. the really look at the look later And portion if was on in think in a the that comment significantly channel remediated significant Kristin can if quarter you I realize in rates historical of strong that we BXB quarter, shipments, and this you the that

let the to prescriber force sales the me or force. go sales So physician

key therapy. but earlier was of penetration is oxygen in new, of expanding actually our POC focus terms the this As we this in indicated March, based relatively year strategic in

and an the oxygen therapy. in relates prescribers the get (ph) prescribers One are seeing the that the biggest actually right they we're highest to ability that is things I of to are three think the coverage [profile] productivity basically.

to get right Secondly, the frequency.

to And shorten Thirdly, to onboard -- never get in cycle the now new them. of right done before. which one the is referrals I'm from we going terms the ability sales to have that add to business getting with prescribers

the are from we get new at them. also Now that and we prescriber, across looking the repeat business existing

So I don't repeat referrals get one I them. referral, get from

the not would position we'll to organization hope We steady in but we working. I and from specific reapplying months very we one in the that able is insights about at that, base, get performance some to is, frequency the coverage on strategy but look terms to if progress. we first that the metrics, demonstrate thing in talking realize until tightening experience add I are the top as well as state The that revenue database we the tremendous of that XXXX was plan, put learning the the you our that will are be of start we will it say have. and in to a metrics in because finite that approach six gained you

this call the actually XXXX. institutionalized that So we're in field back differently productively. blending after frequency remainder and we have. We're organization of early do data as from well expecting that year slightly reorienting that we're response see acceleration the we for as and the that the And to that more now the

Unidentified Participant

Okay, great. Thank you very much.

Operator

William question proceed from Kaczor Margaret next is your with Blair. The question. Please of

Margaret Kaczor

with like gets especially put trying high you the quarter, what how how good on to low wanted wanted in recession think as to everyone. I are about morning, should into because inputs is Thanks a And -- really, the little we sense good I the 'XX? 'XX? little and look a Hey, end, I'm for kind would to context to Thanks. kind get guys -- items guidance a various potential or what of gets and I question. a about the what guidance, other the of what at think you we any fourth start like initially the look at bit to taking of How wide just QX guess a end. supply, maybe you

Nabil Shabshab

question Kristin I'm going then going to the have I'm answered to on and Margaret. comment guidance Hey, XXXX.

Kristin Caltrider

question. the you Thank for Margaret. Hi,

backlogs had look into our our that backlog in if QX quarter look the you majority see at As we BXB our as or to domestic we period. an of were that you'll fulfill extraordinary those QX, results,

look back for were we patterns the what As normal channel. to ordering this

You that the supply have prior kick-in timing and -- into to QX to began look in QX. late and constraint QX to back

first if ordering a quarters you for normal three last at channel. pattern see what kind the So you'll that of we as year, of look see

along make together from the two seasonality you over if we with prior walk be And that that Those many down tends you quarter. to the quarter, estimates. see softening our years, to a X% will adjustment QX roughly the

Nabil Shabshab

I'll XXXX. make comments on So, some Margaret,

prepared around the I inflationary continuing macroeconomic earlier, pressures. conditions that opening the think we're and So potential watch. That's remarks like, to something

moving feel that steady the We demand forward. also remains

forward, visibility further decelerate So we as end little of growth have growth potential don't towards we we'll a year comments will runway. moving about rates that we or to more expect when think bit the in the accelerate make rates the But the more general.

So we'll give update year. end at you of the the an

Margaret Kaczor

Okay. throughout a little rates are bit Obviously, growth different ‘XX. the

maybe So you wanted saw touch slightly out. find we'll also I seeing I referencing the or domestic year but hope maybe on the guys on demand the to that you're you're side. above, growth full maybe that

a saw Or much bit ‘XX, with relatively it's guys. online at have this So little you channel it And follow-up, the sticky versus again, similar is more of the to in Thanks just the that you channel, some kind assuming maybe the backlog there? resellers? business a to tailwinds was in of maybe that HME is DTC channel looking resellers? how HME

Nabil Shabshab

understand make me let question. Margaret, So, sure I the

asking, demand right? in channel the You're if is BXB sticky, the

Margaret Kaczor

drivers of was or that resellers HME? The Yes. quarter, this the online backlog

Nabil Shabshab

Yes.

small sizes. as the -- demand well is as the medium as resellers large So in across BXB both customers, let me as so in size to well the

maybe stickiness that. me the bit So talk of little about let a

think remediated it, is the channel. the not state fact to bulk an in sticky that we of itself almost most POC is quantify for that remains notably not old Also HME of canceled did strong the the present look competitively, very fact it the or the I intact business get we're you and it. the is of how Inogen and think and demand had But brand brand indication backlogs I the not strong is? that how the deferred the going if and

Also aimed a when acquisition right making the an for at also sure so the to dialogue profitability. terms but cost this about of they which business think right totality there -- probably longer making ownership And in address by in decision expand terms has cost. versus the models earlier And think making in that of comments, we challenges model, they and their compression. the questions, decision other fleet back on, total make the of terms when of of I and and have of is lot margin some the is lot people of a so ongoing capitalize delivery the for in cost harder versus people that increasing the non-delivery

be, we made, going had. business we've healthy to so demand encouraged far to look is Like are sticky. conversations and believe So we by that what is normalized the we're the but at comments the we working

Margaret Kaczor

Thanks guys.

Operator

from Mishan with of is question your Please proceed next KeyBanc The Matt question. Capital Markets.

Unidentified Participant

the This see next to actually provide on in your Thanks Matt. would question. for earnings? -- you XXXX just If the follow-up XXXX taking could for like is need to guidance Hi. I for Liz order comments, what during on

Nabil Shabshab

perspective visibility a Yes. and for from simple question. looking supply is all It's relatively we're honesty. a What

we nothing to Like week to the of a sight is So have a at line by the biggest visibility, will the evolved that We're allow peak in is now crisis, let how managed the terms we've supply year for visibility, visibility. and week full it. opinion, that beyond quarter and good. that. guide we monthly variable the step characterize used that chain. we've And have take a us But the to I visibility. don't of in me a Then move around constantly year which fact have full we back how our of

sure think we honestly, extend that the at are is outlook, things XXXX. and the -- we'll I going And market. So demand the semiconductor industry the meet make if in you that to we look into meet can

need of being judicious we're and Now trying what part to in forward very and we buy XXXX. secure

stop for We supply securing as us. available that will simple but we it's not as not the much at all can, is

towards the risk, abates the talking that XXXX. end of a we So longer potentially will be start early as potentially we If about term year, guidance. in may

Unidentified Participant

for term assuming the And do like? have then long to rentals looks that growth enough think a what demand the priority, you rate right for you business as DTC supply Okay. meet top

Nabil Shabshab

the that's Yes, growth thing on business rates common by business.

back the the think I to channel. of prioritization

right we prioritized for demand in the in put that as much the to earlier was You're we've really that DTC. us It critical year, of meet channel.

comment potential variables. -- Just both quarter. to balancing around maybe a we're make slipped how a things whereby why strategic point and got around to this We financial business

alleviating BXB. to a So we standing order decided balance or back the long flip in

going at as since not on to well the business and speculate either you can tell We and we're will the growth rates, what's flow in much at or get back the we're variables ebb perspective, the business as level hopefully the to balancing these any total but competitor channels not market going on from from as as possible, those but as guiding level.

Unidentified Participant

last the for me. just question And Okay.

As over rep your increase feed the lift do improves, you you BXB channels or that count advertising, the do been have the sales your you supply last more do year? constrained

Nabil Shabshab

So if the I heard question correctly.

we to performance optimize the we're of as -- the always teams. all So trying

I'm start the So with team. DTC to going

advertising spend supply the on generating that situation the tailor and was we based course, balancing the of right level demand. Of also

patients. of and those terms acquisition be in cost continue We how expenses to these at we're looking of the judicious

do time that flight. So based that on situation. all We in and is the is just something it the supply demand

If the second part give and was not, your So me mainly answer I I it. think question. that can

Unidentified Participant

Thank good. was you. That

Nabil Shabshab

you. Thank Okay.

Operator

proceed from is question The next Robbie of Marcus with Please your JPMorgan. question.

Unidentified Participant

Alan Robbie. but a I for this touch on wanted different on actually angle. the maybe Hi, of to from kind backlog, is

were business a US you because mentioned the BXB. US DTC prioritizing little You the addressing that backlog in the quarter suffered in bit

been I the able So that DTC don't you underlying being while you of think the have prioritizing on want the you actual to push to hadn't should demand What BXB? of in backlog quarter projecting forward. would we business US as in if been satisfy that

Nabil Shabshab

So said in as determine we we wish softening -- question I stable. think staying so in steady the were or is to to and I DTC be supply I if really conditions earlier able full first maybe answered. demand

very us [indiscernible] business and So about are happening, for it's short of regular than the the speculate that DTC to funnel se have the weakness, per because shorter that the and business. funnels difficult

and for don't easily. have way, measure by backlog a go then to -- So the they me

some set them. of So of it's difficult a sort to very to and of variables isolate tease out

are [indiscernible] lot the said earlier this we of took as general, also noise opportunity not demand. that we in around inflation will But call, on weakening sales Now also remind, I we by channeling or and last DTP A Europe, on of well the balancing to and as as this optimize for organization specifically other the BXB sales US, the volume factor European some to the the side. quarter quarter organization.

force ahead combat be softening us of to as continue terms the work we that downtime the will have able demand. in continue in some upgrades, we disciplines the of feel that well that performance sales sure of a of productivity bit driving in little to call sales a and complete and We use the And it, to efficiency that to training, drive new make channel, in that we the some as of management. help time, us

a terms of let inflation. with Maybe how couple in thinking about points data we me are leave you also of

therapy patients, well as on oxygen did with as potentially getting actually on therapy. with research COPD oxygen of both a we primary set So our

population. and/or at If full fully look as well XX% XX% retired, people the employed as they time, that of the are between and make up business owners patient you

relatively you Security. income either can on have people insurance and/or have they're So an Social they say or those

payments it's the Social And going are of going are that that to pressure. the a target is thinking the how and pressure the we but of trying to that a what big to We about if feel for think some in are bump X.X% understand of there I that get be in population time, at things. we terms in have January payout. be I'm there XXXX, not the look our is Security we manageable. inflationary competing all of that partially dollars as relief could understandable we know feel of As more risk, is removing we terms that other patient that at chunk any the

just way terms that people under are maybe coverage of in by the Also of CMS. quickly either

CMS, are patients under but and Medicare XX% they XX% add when private insurance, we the you it’s and between have. at Medicaid, you XX%, the look If and total population both between XX% that patient of

data softening think cannot of the steady let's we what we the say, understand we're we but I until supply, the to that carefully points, impact is, isolate of state the looking very demand. that what really get feel So

Unidentified Participant

basically it. think you. optimize Thank about rep And to XXXX? view Got out that that And balance a that a the process we much. we sales as should forward, about are as on. you yourself? in what for DTC Thank just through as follow recognizing pressure, quick will, of number your really force, average state then force think if you continuing we very of When going should sales the good efforts your figuring steady you to your kind the you of sales said

Nabil Shabshab

a think I question. it's good

of efficiency the cost on is of and disciplines potential terms productivity earlier effort I and sales cited acquisition. improving overall realize piloted new a there earlier, some when that that the in of Q&A. of of our lot So we We

So roll we continue out. to these

that the terms patient relatively to is and force there but the we we people is where land, of optimization base. and in try sales drive the highest factors XXX of think the of we spent for do zip and of continued how should the I understand that have number other the effort acquisition code

So and and that through demonstrated pilots and take, yes, as experience scaling across are not rest the right, organization. of we increased you're institutionalizing XXX or but productivity what give the evidenced we training for the by roughly

Operator

There are Nabil Shabshab for turn at like no this additional questions remarks. time. I'd over to the closing call back to

Nabil Shabshab

develop made Thank you. our of progress incredible transformation. manage commercial and with an pipeline and we headwinds. start to pleased supply with pleased innovation our productivity, clinical improvement mitigate part as that incremental steady equally and dossier to the evidence I'm I'm have drive build to the

of revenue. we on in of in ahead terms terms to we manage while a simultaneously capabilities, great performance processes, will we our there ongoing and and systems term. path and in support sustainable to growing well made Although in institutionalizing help the macroeconomic of our and current is and do scaling fundamental work have Inogen way all strengthening of accelerated that be the embedding culture and profitability and In us, capabilities, XXXX, long progress rebuilding headwinds

their recognize patients to I dedication interest to As thank around I for us their support conclude, oxygen you would and all have a that hard for has and good and the also Thank thank work allowed therapies in team continue I would with and like needs Inogen. like Inogen the world. investors to to serve continued our day.

Operator

today's conference. concludes This

participation. You lines may for time. you this disconnect at your Thank your

Inogen (INGN) 2 Nov 222022 Q3 Earnings call transcript