Earnings call transcript Q4 2022

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Operator

Greetings. Welcome to the Inogen 2022 Fourth Quarter Financial Results. At this time, all participants are in a listen-only mode [Operator Instructions]. Please note, this conference is being recorded.

I will now turn the conference over to your host, Agnes Lee.

begin. may You

Agnes Lee

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

of CEO, Joining results CFO, quarter section release of Nabil with Investor Kristin website supplemental in are currently for This available is Caltrider. fourth the financial and Relations released financial Shabshab me package. the earnings Inogen Earlier the along company's XXXX. the today,

and to growth As internal without team. limitation, including, financial include forward-looking prospects strategy XXXX, to a and statements, expectations reminder, related of and sales the profitability a information presented regarding beyond. for for results return our XXXX about increasing external productivity our in today our Expectations expectations will related and statements XXXX to

our including our for market of strategic demand based regarding today's date, in the our our to products initiatives, XX, on currently in are call as Progress statements term on The innovation, forward-looking and information term. business available XXXX. and both this long supplying products expectations on short the for February our us

forward-looking our any vary, these involve may set Actual detail statements, and may are Commission. more and may reports we required in be forth uncertainties update law. that in are Exchange These predictions recent with by risks the only results filed obligation Securities as periodic to and disclaim most and forward-looking statements except

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

expenses operating both Inogen's not taken investors Management measures conjunction also are excluding GAAP will management of that with we call, financial for results. measures indicative core and no-cash on items by useful non-GAAP the certain in information and provide other certain believes During that information a non-GAAP financial present basis. U.S.

release. U.S. and and earnings measures non-GAAP understand, tables to between results make and uses Management operating within non-GAAP are decisions. our Reconciliations in evaluate our presented GAAP manage business internally

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

Nabil Shabshab

quarter ability during by fourth delivering despite ability and XXXX themselves XXXX. been joining that media and evidenced you while the has the the afternoon, progress thank Good XXXX Agnes. back a challenges our conference testimony to for headwinds presented half growth our inflationary multiple as of the including macroeconomic Thanks, teams leadership revenue transformation of call. and

building In long we and like durable systems capabilities, to would a medium start healthy addition to term. the and in evolve I to pipeline, by can continue growth innovation the that in to processes quarter. our profitable performance addressing first deliver

the needed challenges, and grown in DTC Although multiple within that overcame we originally with anticipated. changes we fell time have scaling short to we line the revenue regards

this gross mix Naturally, has well on as an impact revenue on as margin.

XXXX we where in continued are progress to an excellence improvement expenses XXXX, to will and contribute drive we moderated goal growth. we managing adjusted our that EBITDA ahead confident seeing are closely operating look our commercial around to environment revenue As in

efforts Before I some Inogen’s our have channels. medium term commercial in commercial XX space driving the element I progress commercial update walk context excellence. respect, the go-to-market on an supply that relating key would over across like partners to provide performance and several to short on of our our to within through our is and strategy, our A changes in strengthening the innovation past situation. transformation In months important about

need best-in-class and in the productivity channels, team and patients drive XXXX, and standing strengthening in solid POCs. up delivering scaling have capabilities their prescriber the mid-QX after We XXXX. believe We more and we of can prescriber go-to-market the progress of us growth made to serve prescriber in allowing all excellent our channel continue prescribers in in growth that our to XX%

within potential evolution expected. has the been slower the also to have drive direct-to-consumer than whilst demonstrated our productivity We channel,

deliver deposits of stronger as to We the the in continued scale year from to learning second set half for have apply we DTC. up

of sales, improvement DTC in year continued fourth we had process impact an half second impact beginning expect to on in quarter piloting the XXXX. our the improvements half The and with of of envisioned the in institutionalize and the first

announced to allow XX investor an and for to investors strategy event strategy. evolving the growth on metrics, with on Monday, our more productivity have overarching progress We the channel February and engagement share

This securing COPD in Europe year, new Inogen the further in differentiation and necessary and anticipated launches XXXX we regulatory plan after U.S. for to drive the with clearances. product

we plan therapy beyond overview and population extends to the strategy forward patient during focus innovation COPD. including and more extend how on February addressable Our indication and and impact Inogen expand we sharing to look XXXX and our growth launches, on detail oxygen XX, beyond

in were effectively we chain manage in XXXX, challenges. efforts to supply successful Finally, our

for supply and the effort good semiconductors. situation year, in QX forward supply XXXX, visibility due of first gradually combined regular channel expect bias get the for better improvement in have a we of the and additional in to half the We securing XXXX to

strategy efforts higher Open at to product if part ensure supply we supply selectively such sell and our This us we by strategic crisis. during has decision continuity helped through when improved to will remain until we of into premium the the costs continue all and is a half ensure as would QX requires. to acquired parts visibility that XXXX, channel sales use a and first semiconductors through impact the of of where XXXX forward purchases continue continuity semiconductors of

As Kristen commercial guidance a the improving be detail result, progress annual later will have and on issuing of go resolution, into and the made our XXXX we that more supply in for will with we visibility call.

our to move now an would on I like strategy. update growth to

tenants core scalable evolves, return the long-term. deliver allow and strategy to profitability in investment portfolio, our medium-to growth our balancing diversify for remain choices to to the relates it constant as As

and characterize to growth to each. long-term continue short We of terms growth strategy vectors our with horizon for multiple in medium medium-to term

growth The vectors. on strategy medium short two to focuses

our commercial is strong operations. of to efficiency oxygen portfolio therapy by in using productivity The POC based improving while primarily and first place drive the

expand current COPD advanced which expand to for address. we choices start more the serve patients to through and and patients, second vector differentiation growth The relates COPD product indications portfolio driving new the introductions, will

existing term, been the our serving sales medium a progress. made several on patients downstream and have channels good was While team through predominantly. for the The past over in has we accelerants commercial pricing to focus focus major cash years focus key DTC where portfolio remaining short on and a focused

at disease of that of This most throughout At prescription and the the COPD journey. our patients diagnosis of patients buying up the directed and analogous prescription. a appropriate management the point to XXXX, and is with our to maximizes model the serve enables therapy beginning modality opportunity prescriber their we strategy stand and evolved subsequently upstream diagnosis placing on patient journey channel investment oxygen us

adoption is agnostic centric which where we saw this of model. XXXX XX% patient's accelerate This during is predictability time. Inogen’s model, new channel POC-based scale, profitability patient driving therapy, growth The progress prescriber over and year-over-year boundary prescriber core and should in channel to the to

Our also in lent Inogen’s distributors HME the patients and centric model itself partnership U.S. to internationally. advancing with

of to while predominantly prescribers having oxygen and favoring service access patients most POC-based therapy therapy growth appropriate according for our patients prescribers due an to serving and Our to providers drive to and modality partners opportunity better patients the research. vision offers oxygen primary across channels

of delivery non-delivery profitability overall operating over improve model Additionally, an also or balanced an of to improve their as and serve that will HME opportunity time. more we and economics strongly distributors believe the

channel on critical QX. remains strategy, of refining we and part based in that our DTC As of productivity the and improve our we pilots as and overall ran driver efficiency success channel the QX

the BXB prescriber of believe We so we channels, all that and or for steps next our model, business that our DTC, profitability. moving optimize positioned these continue to commercial have are are whether and well to growth place in to a both strategy we

and in and role medium both the have in long driving also introductions short horizon. to medium growth product differentiation New a term to

reimbursement Staying the reimbursement European medium horizon, started in in selling with markets grant fulfilling require the newly other certificate, for Rove EUNDR in for the receipt to while introduced short with that for renewal December we the GX XXXX, of time markets, orders upon POC. X

do we two of grant European companies time, X for sequential that initiated At and for also the reimbursement securing process a reimbursement. not Rove

our that completion to new date anticipated reviewed We team are have that to ahead distributor reimbursement the successful The our our share Rove time of and file X QX progressing, is of device review effort and has updated in of expected Germany pleased its late commercialize we through secured France in in respect we partners. market will of reimbursement with our XXXX. keep line, you

the Additionally, FDA XXXX, December U.S. launch Rove and for received of back in anticipate XXXX. we be half to the the in X, clearance Inogen

an step imminent about and in continue are we important launches innovation. We to excited as these lead as POC next

call, this two discussion investor the to like while now both more to February at a a the would for on medium-to Shifting level growth at strategy. XX. high on cover long-term vectors in allowing the event thorough I quickly

therapy, through clinical around collaboration The levers. and first continued to evidence predominantly relates opening board oxygen market scientific and with key advisory vector for our efforts development POC-based

clinical the during of anticipate good second results We half on are making publications and sharing scientific some and of through strategy conferences progress the XXXX. our

that vector and indication we the second The innovation relates expand populations serve. to patient

our making are portfolio our this a us overall in We dyspnea We'll that during more in potentially heart congested long and COPD the term. to detail serve hypercapnia sharing allows be the events progress encouraging innovation to additionally week. failure, next medium focused with and road and patients map investor will strengthened be discussing bit

to strategy, innovation patients more COPD potential open Inogen acquisitive serve aspiration that a company. care becoming will our to for would advance beyond we as respiratory our growth support Lastly, remain opportunities comprehensive

see demonstrating steady bound diagnosis modestly our projecting to data In that recently and that we a we underlying XXXX. remains in offering continue for are have we summary, received demand and COPD

improve guidance we visibility for revenue supply full to expect the providing year. such We and are as continue to

promised patients profitability are will of centric the patients that vision to In our back our and more us charter addition, evolution XXXX. support serve of strategy to to we drive growth to allow end the at channel

next to our growth us strategy I our and commercial look event to about Monday. forward talking at

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

Kristin Caltrider

you, of sales quarter lower million, primarily XX.X% was and by from for Total driven direct-to-consumer and sales. good by XXXX offset rental revenues, of partially XXXX. increase The quarter everyone. the year-over-year U.S. revenue growth Thank was Nabil, fourth the business higher $XX.X afternoon, fourth

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

the fourth and Domestic fourth in XXXX quarter the $XX.X orders million quarter in fill at compared fulfillment basis. $XX.X open to ones. of as revenue XXXX BXB new with a of of more prioritize XXX.X% on revenue Looking increased period million we comparable the detailed

of note that the to shipment considerably quarter fourth to channel. billable the business 'XX Rental to quarter due as is in $XX.X fourth fruits, limited continue It increased business to XXXX constraints bear $XX from domestic revenue increased QX in million the to XXXX that initiative important in resulting revenue in million prescriber was XX.X% down the of to investment the supply in our patients.

Medicare in was the quarter also BXB billable in $XX.X a total revenue rates percent positively XXXX impacted $XX.X sales by period to increased million higher reimbursement patients the patients X.X% of and as Rental on International from comparable million XXXX. service. of fourth of higher

to to million mentioned EU received lower higher to product, compared our in sales earlier, fourth primarily MDR Europe. in the the driven new by commercialize mix our X inside in Nabil of fourth in $XX.X of Rove quarter of $XX we a reps period. As million decreased XXXX XX.X% fewer us XXXX, the quarter countries in un-tenures and due as Direct-to-consumer sales sales representatives to prior volumes from certificate December, select enabling

business-to-business revenue X.X% basis. rental increase was year-over-year revenue, business revenue XXXX. Total to in business direct-to-consumer and partially compared to by to and of primarily increased international million sales declines full due higher sales. The year on Moving U.S. to a offset $XXX.X

point For over impact negative a a points of exchange revenue. basis, On year, basis year a the basis foreign international impact on and had XXXX. total constant increased currency revenue full XXX negative XXX X.X% full

in as International Europe EU XXXX QX. $XX.X shipments XXXX expiration million MDD BXB from for to sales increased XX.X% we $XXX.X the of million year prioritized in ahead full to certificate

full was satisfying received were in from X increased year the for demand million when XX.X% XXXX EU in Europe. million $XX.X MDR the December, to Rove revenue $XX.X Additionally, begin units Rental the able to in for certificate we XXXX. new

continued on in to Due team rental the patients higher the prescriber of service. generating success

patients realized total have patients benefited a on higher higher rate. we Additionally, and from reimbursement of service billable Medicare percent as

Domestic the BXB number offset for reps, XXXX, during sales million decreased from decreased prices. higher non-tenured to first partially selling $XXX.X limited direct-to-consumer XXXX, lower $XX.X chain XXXX, with constraints driven Domestic X.X% full year, ability sales customer demand million by X.X% $XXX.X revenue to increased average half year to and $XX volume meet of to prices. million represented supply increased full due for a year sales of percentage in selling due all XXXX the average our to in that the partially by compared primarily of million offset lower the

Sales from on our the driven gross fourth the volumes. increased quarter declining for basis offset margin. material gross points higher This increased costs. warranty revenue by discuss in Now higher costs, XXX mix, channel margin partially XXXX, to XX.X% and production period comparable semiconductors of made was by from [ph] manufacturing productivity, including XXXX, in premiums was primarily

increased quarter service basis gross rate. the fourth device by margin the points. was revenue Rental decline primarily margin versus and Medicare was in offset XXXX, quarter higher in XXXX The compression XX.X% recoveries, fourth partially costs XXX XX.X% of reimbursement by of of driven a

revenue margin components. in in $XX.X driven higher premiums costs motherboards sales was XX.X% portable higher our million by to points of year, semiconductor declining market used of compared expensed full XXXX, the with required XXXX, XXXX, manufacture concentrators. paid for open oxygen the and purchases gross batteries to material basis primarily For company XXX In associated

prices. rates. warranty increased to we XX.X% addition, by mix, of XXXX. service was XXXX, compression partially points benefit an by selling offset margin XXX offset partially reimbursement margin and declining In higher The Medicare channel the basis compared costs recovery, by revenue was and in gross unfavorable device driven higher higher experienced Rental

to Total in $XX.X quarter, in operating $XX quarter million increased the Moving to fourth the compared on XXXX. to million of expense. operating expense

disposal sales costs, to partially one-time the and expenses research costs. $XX.X a an decreased expense by intangible due of and asset. and million primarily offset associated on Excluding to lower loss million, Operating development and with higher $XX.X marketing administrative general

on detail expenses fourth more our the in into Going quarter.

XXXX. $X.X and research the increased majority an was clinical of of continued research We a and pro-development versus in of total fourth of $X.X The to invest with increase of the the this spend million, have development quarter million quarter activities. spend

of by For expense had prescriber quarter total a expense, increased commissions $X.X primarily sales and of $XX.X marketing, related the spending median reduced partially million. the to in consulting. the professional spend advertising initiatives, decrease The and offset bonus we for lower was fees and spend million on

And prior the capabilities million $X.X the company. increase new This out for expenses in was finally, aimed as fair representing and expenses a to $X.X general we in offset compared to administrative the era million from rebuilding incurred change million in of of liability, earn period. core QX by $XX the personnel-related value benefit partially increases in at

year full million $XXX.X million XXXX. to increased total the compared For in operating expenses XXXX, to $XXX.X

to Excluding of expenses aforementioned loss million $XXX.X operating $XX.X million. intangible disposal an the on increased asset,

spend. Going into more detail on annual our

related for continued million, $X.X invest the a $XX.X and technology. to amortization We in have of with year research total inclusive expense development of intangibles the million TAV to

evidence current in and future versus spend clinical of build and million dossier XXXX development of was support income $X.X products. bolster to The capability our a product used our

million, lower expenses of $X remaining fees total million and primarily and well we sales and spend advertising consulting and a For costs. professional an as commissions rate $XXX.X of had increase, the media offset partially as by and marketing,

increase And general in value of $X.X the incurred to primarily million earnout and liability and The expenses. $XX.X from finally, a increases we in change a the for These transition offset employee-related fees. million officer increase partially costs. in million by expenses, were newer legal and higher was administrative fair decrease benefit consulting $X.X the due

adjusted per negative million per EBITDA On Adjusted million the a $X.XX. we loss adjusted quarter loss XXXX, share of and share a diluted an and reported loss of of net million. loss basis, $X.XX. diluted of an was reported $XX.X a $XX net a In $XX.X fourth we of

an EBITDA XXXX, the share million. $XX.X $X.XX. reported net of lost we and adjusted For basis, full million per loss year loss $XX.X of million negative diluted reported and On $XX.X diluted share a loss of we a a $X.XX. Adjusted of net was an adjusted

balance Moving our sheet. on to

no driven of XXXX, as and million quarter. had of XX, Accounts December large $XXX balances this in to XXXX, equivalents $XX.X BXB December of receivable cash increase increased As debt million shipments cash a we by outstanding. with

for fourth open but We incurring semiconductor on current the not the investments the additional to on inventory. make in balance or These sold quarter market, premiums continue reside prepaid in the other inventory, our purchased items semiconductor as sheet and finished in yet assets and goods. expense

prepaid respectively. and As balances of were $X December inventory of XX, and our million value XXXX, premium million, component in $XX.X the

Additionally, were as intangible the inventories disposal on of $XX.X of $X.X million, and assets. a reduced million intangible loss by assets result and respectively,

outlook. our I will turn financial to now

annual providing As Nabil earlier, we are guidance XXXX. revenue mentioned for

total company mid-single to low digits. expecting are grow We the in to revenue

we to As of anticipate by for positive quarter we continue the reaching profitability, fourth EBITDA drive adjusted XXXX.

help the further below productivity the ramp that first to evolution are DXC year sales quarter patterns To time in channel. the well and of the lowest BXB last revenue year we renewability order to BXC be due the the to as we returning given the models, as context provide normalized and channel, of for to expecting saw model in the levels quarter continued

expect as dosed productivity revenue but efforts We the BXC are efficiency year, cash to the first the realized. of recovering second and half half the in be

in BXB gain the brands We of year we channel to normalize. back the in are reimbursement revenue expecting as growth the half continues and in ramp to sales

expenses. cost come the we efforts, of long-term in remain which addition, see the the to our for expansion In while and premium to operating to medium- Improvements expansion half our volumes increased. production are drive allows gets as bottom growth also the would year investment management needed line and of from expect margin price limiting supply in XXXX increases price as better components, back in

expect EBITDA XXXX, quarter. As positive we the by to reach we to fourth adjusted look

invest initiatives, up our key our while continuing improve set to profitability. line to and expenses managing revenue growth which judiciously bottom in long-term for are We us

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

Operator

line Instructions] Marcus first Our of JPMorgan. the with from [Operator question Robbie comes

Unidentified Analyst

Lilia Maybe from what for talk through just what's or takes any or you Robbie. assumed terms of in headwinds? with potential macro challenges, the end actually is on the And starting supply disruptions This range? of Can you guidance. high low COVID to

Nabil Shabshab

question. add you Kristin start, some and So commentary. thank can for Lilia, the I'll

half and scaling into range, baked ramp That's interruptions year. a -- includes chain saw, half of working as we the are BTC the is the back on as supply continue little the the year the remaining So as potential range will to that remain. there in so and first productivity that of you then well improve through that

year. We hard are point the work and in the visibility we year, in little then we as wider time, range with hope the continuing QX QX. into the terms tightening through little leaving the early in But at to a progress the a in of we are it with remaining into this quarter of get bit cautious and

Kristin Caltrider

I of where be all could is I think things dollar think there the could one number, we few add impact. would go. Lilia, euro all, exchange that the U.S. the that currency are foreign rates depending That on impact currency to a first

supply chain, also way the could timing France that reimbursement the an of mentioned, drive the impact. then Nabil As other. could an have finally, And impact X or in

Unidentified Analyst

a just There's supply, here these lot as Got That's to EMD a some offset And headwinds. moving have of helpful. I price you taken obviously of guys pieces with know it. [ph] maybe follow-up.

volumes sense to get for doing. how are demand a and I'm trying underlying just So

Thanks So any much. so there share be helpful? color would you could

Kristin Caltrider

forecast, our projecting to increased volumes. look are we we as Well,

color half, are we a than we quarters, half. it a and back little growing first as be we we the gave the believe little So will in timing but the we again, in the underlying are believe of the demand, softer on --

Nabil Shabshab

Kristin all steady. rebalance there we're we channel the add And one on to would channels, in But our we go confident terms a to looking said, Lilia, demand as said, thing but putting pieces, through the role you the we up volume are serve overall, from we're have is remain strategy, expect moving that we said, to play. won't the and like of focus how patients where it as as I

Operator

Capital next of comes the Matthew from KeyBanc Markets Our Inc. line Mishan question with

Unidentified Analyst

for taking This is Thanks for [ph] Matt. questions. at Dishman today the

on like growth Not much Just headwinds few of wanted they up months the maybe guys potential follow to a really near-term how call couple today. ago. on a the came discussed up you

the little you Are headwind? has around customer issue faster? first, better capital. Or to around a a that that So like still BXB access seeing bit gotten as

Kristin Caltrider

you, Yes. take I'll Thank Brett. this.

ordering see that So prepared some of to patterns in returning actually we we still why normal. continue That's the materializing. remarks to said

like and access the in where as size should said challenges working are continue headwinds started of we depending but So we and work terms to through of There QX. pattern in the some year and these we terms remaining be on earlier the landing customer of of capital, normal progresses. in challenges the complexity to the prospering,

Unidentified Analyst

a also Makes purchase on topic Or continue that opting commentary? connect sense. to some of of seeing competitive the of does And those Does BXB some lower-quality then customers to discount. also just out? at the that product play to previous

Nabil Shabshab

Yes, a question. great that's

let work. how me cycle So about talk

shortages supply some during on the to our competitive offering. side people migrated So

conversation supply how with competitors that the ordering pricing opportunity back also I have think bigger the a quality can market. assurance to avail about their at returning we customers to The competitive BXB they that themselves set on we side. actually have the of probably the and/or opting have dissatisfaction from get and today, feedback grab the they of a share either to so as that are interactions offering the the because Inogen time

that, very especially customers, the and price acquisition complex device more you in our the a advantaged of our situation, with be cost demand said, focus the pricing, red devices and total and our of there's the our cycle brand that they much remain the larger about I prices through to a to versus total and and compare So -- acquisition but on ownership, understand one, it. more course perspective ongoing, the course, we flag, more acquisition and work is well But from judicious to not most competitive the monitoring are of the the work activity. it's an quality through ongoing of and unfavorable price, the if as about it. versus major BXB but as of of we continue we people cost discussions and It's cautious within because there of competitive work ownership will the as competitors. a durability we that positioned understand

Unidentified Analyst

All Great. more some headwinds? promising. one sounds that. of right. That the just And last quick follow-up one And then a -- quick around after

one some So really that headwinds the on few factoring direct-to-customer months? potential just the last And guidance around headwinds. given and side. recession, wondering seeing initial is the seen given how some around you've into of inflation what a the uncertainty the last over the you're

Nabil Shabshab

the we guidance, time to in have materialize. are to the differently reapplying again factored ramp of a stress and for prepared it want we said like to the I efforts time with takes bit that we just pilots, In us definitely, that DTC internally remarks, it organizing little took the slightly Yes. we and learning the

to us looking to and the headwinds guidance up of are factored question the from for are the earlier. We for stand for DTC into first scale the half your XXXX pilot

Unidentified Analyst

then wondering All around could right. me, the any And cadence. Great. more lastly color level provide you just of if for

quarter, probably how just noted if be sequentially just would expecting that quarter, sense XQ about the should or or any we that? first compare in are first probably half -- lowest you're of growth a you thinking I you of level be that think how but -- the might

Kristin Caltrider

Bret. Hi,

one. I'll think that take I

quarter to and lowest potentially not to being quarter. color a as are give We the growth trying

likely are what so we'll will achieved will lower QX that of in. month be do ramp we to XXXX, for the start of So the better some us, we QX kick in see and QX from believe summer than there months but

Nabil Shabshab

things couple of for Just consideration. your a

one at towards our prepared question. evolution returns is There DTC as remarks, end at to actually implied on profitability, by the is also, remaining is the So looking adjusted the ordering by asked patterns the there on also the while BTC continue BXB, line and to but on reorganization the It you or channel the of drive I strategy think, least Kristin next EBITDA like previous at we year. focused are on mentioned, as well.

force So there at well is sales of as the and mix a judicious quarter. same the also as look the effort the makeup to

Operator

Please Our of of comes the Matthew question line Stifel. with proceed question. next Blackman from your

Mathew Blackman

Good question. sure one. I DTC you're I'll head myself than talking follow about around to maybe I wrap the program seeing taking my like want afternoon. headwinds. a limit Thanks outsized It on. for my to make scale just pilot sounds just trying for rather Maybe a attrition.

is of metrics that over little it six versus maybe everything to nicely. to productivity months more Maybe that. at relative it I months for you over time compare enough have what contrast sort in the XX you've last what of Just Why you manifested the a happened. quarter. just it last I'm And half? be the the up? what asking fourth here to ramping is, leave the of some second does shared months bit why XX improve color where seen guess stand seemed in the And I other point and

Nabil Shabshab

Yes. I'll question. take the Perfect. Thank Matt. you,

with So me start numbers. let productivity the

the share shared we positive to I'm be we traction. with that number productivity certain letting you to around the Monday, JPMorgan, of Monday, productivity the to going share us the going in And about we this actually that numbers a on productivity attrition get forums, multiple honestly, actually there is reps. putting are continues sales coming the in Next DTC factor numbers before are

it more voluntary. in is asked than attrition. plan You It's being about

the optimizing profitability and the where get to I'm in strategy balancing right will land at the we to year. Again, the end sales we to to the force. back back us channel of and the of getting And terms the going would roughly of discuss investment then it size and to growth for level connect

it of up The your that question of the okay, actually ramp in do half will have year. back why second the part the is, we confidence

right to think I that been up the are the and the isolate variables meaning focused need and size half are back we've and We on sales know of testing discipline, actually the moving that to sales able right variables what right throughout pilots, the the and and force the can we forward be we back ramp key exactly the sales piloting with discipline in right learning. and confident execution, through the year.

Operator

Our of next Needham question comes from the Company. Mike with line & Matson

Michael Matson

a on want Rove I the thanks. X products, Yes, and new few X. to the ask Rove

both how in is what are then they of sold that? guess, two, It Europe they're confused little for or you do press may to release, factor the sell I'm these one markets that? I gross like being benefit and the one, U.S. them? from planning is And into. to And about a looks compare And model. prior like cost was So there lower to was originally one for any anything why the kind margin of

Nabil Shabshab

Okay. take Thank Mike. that. you, I'll

let to to the back strategy So regulatory go with. start me

So two the to different initial the ability our of get stages, because markets how went are products we maximize aimed approvals actually at in on through time. regulatory to the strategy

So EU changes Rove address product was some X question in MDR the about your went and differentiation. through to actually of the that

versus product us EU MDR previously what accepted in clear the to in improvements the was required The for MDD. were

want are to an that and GX, not but noticeable are you upgraded significant, call So they if it that. is the changes user, to the

that actually span Rove selling apply started of it will year, X Europe, also, even though Over approval for an the we in we're the to in the we there. U.S. get ruble and

it secured that, we almost size improved And new is a so running that trade-off, up X want number the opening has clearance of that base. and waste the patients still side, is they Rove POC setting, of allow more and most portable so is application a GX, believe but for spot this was On one on. that the that same in smaller that FDA there want XXX(k) flip the and are and will we we people of sweet serve, the of that out afraid an stepping

And perspective, a portfolio and from there consideration now. discussion is

new matter there no We what we'll the the for the in hygiene, on haven't year finalized that launch general, or the and continue it's X. in existing pricing manage always of premium if back the portfolio is launches evaluate and half pricing during a on year. to product consideration But Rove

in starts to eventually Europe, the to comes back in goes starts X X Rove the Rove So U.S. U.S., Europe.

available So both of near in both future products these markets. in will the be

Michael Matson

I into the in prepared like joined but happening Okay. it Got the the market I I you touched quarter. even the open of that was purchases apologize fourth then components, it. remarks, sounds little this on call if still a And mean, late. the

you do contracts have to can any you your into when visibility with back get So suppliers? your normal

Nabil Shabshab

Yes. Great question, Matt.

So let about. me talk

supplier continue largest throughout and drive to visibility We the meet year. get with to the more

the happening shipping month. We improved of until in have commitment. next are end We're meetings of seen the to schedules trying get We've and the full year. visibility that terms

incur in that it's the down to decision situation year to about improve you start to to of the QX. that we When raised In expect looking balance want supply throughout were meantime, sort of the in off towards actually address that at question We coming I our not we the cost and to QX, and continue extra bought clarity, our worry that talking fact visibility will secure margin forward just has we're in strategic eventually our the seats sitting or we that recently going made because in the last in about burn and a on invoiced, the market, be intentionally QX, QX started sheet this we weeks. happening more quantities because point of than assurance, time. the terms and having will four open certain five the we in on

more forward, and end of continue optionality to terms year of Moving that seems we come this, next down will the by the how hoping we to to there early. manage be year and it norm hopefully we return in are

Operator

the call Shabshab over for question-and-answer have closing to the reached And of Nabil remarks. we turn I'll session. end And

Nabil Shabshab

in while the pipeline disruption Thank mitigate macroeconomic pleased made supply to quickly with our and have we development that to address the and evidence. and XXXX you. drive react headwinds, continuing and manage commercial progress I'm innovation productivity excellent clinical transform to business,

of of We believe year important commercial judicious strategy continued our expenses. the of our and launch is XXXX operating management pipeline, the with innovation on products our coupled an new that evolution with work

customer a sustainable return and are for see underlying growth We building we long-term a market horizon foundation demand, to solid profitability. of promising and opportunities,

efforts I your collective their Inogen dedication conclude, to continued your like also would and to contend proud New recognize details through progress Inogen. look in our our the work. thank business extremely at we forward and investors Thank respiratory good and patient team improving our our support I you I hard so care. in like for As Monday our on to thank of York. to that can more a our lives I'm would discussing of event growth I about interest for purpose strategy Have much. so day.

Operator

lines at your today's may this disconnect you time. you conference, and this for And your participation. Thank concludes

Inogen (INGN) 23 Feb 232022 Q4 Earnings call transcript