Inogen Inc (INGN) 2023 Q3 法說會逐字稿

Greetings, and welcome to the Inogen 2023 third quarter financial results conference call. (Operator Instructions) And as a reminder, this conference is being recorded.

您好，歡迎參加 Inogen 2023 年第三季財務業績電話會議。 （操作員說明）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce to you, Marissa Bych from Gilmartin Group. Thank you, Marissa, you may begin.

現在我很高興向您介紹來自 Gilmartin 集團的 Marissa Bych。謝謝你，瑪麗莎，你可以開始了。

Great. Thank you, and thank you all for joining today's call. Joining me are President and CEO, Nabil Shabshab, and interim CFO, Mike Sergesketter.

偉大的。謝謝大家，也謝謝大家參加今天的電話會議。與我一起的還有總裁兼執行長 Nabil Shabshab 和臨時財務長 Mike Sergesketter。

Earlier today, Inogen released financial results for the third quarter of 2023. The earnings release is available on the Investor Relations section of the company's website along with the supplemental financial package.

今天早些時候，Inogen 發布了 2023 年第三季的財務業績。這份收益報告以及補充財務方案可在該公司網站的投資者關係部分查看。

As a reminder, the information presented today will include forward-looking statements, including without limitation, statements about our growth prospects and strategy for 2023 and beyond, expectations related to our financial results for 2023, expectations regarding increasing productivity of our internal and external sales team, progress of our strategic initiatives, including innovation, or expectations regarding the market for our products, our business and supply and demand for our products in both the short and long term.

提醒一下，今天提供的資訊將包括前瞻性陳述，包括但不限於關於我們2023 年及以後的成長前景和策略的陳述、與我們2023 年財務業績相關的預期、關於提高我們內部和外部銷售生產力的預期團隊、我們策略性舉措的進展，包括創新，或對我們產品市場、我們業務以及短期和長期產品供需的期望。

The forward-looking statements in this call are based on information currently available to us as of today's date, November 7, 2023. These forward-looking statements are only predictions and involve risks and uncertainties that are set forth in more detail in our most recent periodic reports filed with the Securities and Exchange Commission. Actual results may vary, and we disclaim any obligation to update these forward-looking statements except as may be required by law.

本次電話會議中的前瞻性陳述是基於截至今天（2023 年 11 月 7 日）我們目前掌握的資訊。這些前瞻性陳述僅是預測，涉及我們最近的報告中更詳細闡述的風險和不確定性。向美國證券交易委員會提交的定期報告。實際結果可能會有所不同，我們不承擔更新這些前瞻性聲明的義務，除非法律要求。

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

我們已在公司網站的投資者關係部分發布了歷史財務報表和投資者介紹。請參閱這些文件以獲取更多詳細資訊。

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

在電話會議期間，我們也將提供某些非公認會計原則的財務資訊。管理層認為，結合美國公認會計準則財務措施採取的非公認會計準則財務措施為管理層和投資者提供了有用的信息，排除了某些非現金項目和其他不代表 Inogen 核心經營業績的費用。管理階層在內部使用非公認會計準則衡量標準來了解、管理和評估我們的業務，並做出營運決策。我們的收益報告中的表格中列出了美國公認會計原則和非公認會計原則結果之間的調節表。

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

接下來，我將把電話轉給 Inogen 的總裁兼執行長 Nabil Shabshab。

Thank you, Marissa. Good afternoon, and thank you for joining our third quarter 2023 conference call. During today's call, I will discuss our performance in the quarter, our progress across our business initiatives, and our outlook for the rest of the year. Then Mike Sergesketter, our CFO, will walk through more details of our financial performance and our annual guidance before we take questions.

謝謝你，瑪麗莎。下午好，感謝您參加我們的 2023 年第三季電話會議。在今天的電話會議中，我將討論我們本季的業績、業務計劃的進展以及我們對今年剩餘時間的展望。然後，在我們回答問題之前，我們的財務長 Mike Sergesketter 將詳細介紹我們的財務表現和年度指導。

We recognized $84 million in total revenue in the third quarter, while continuing to address some lingering headwinds to our business. Despite the typical third quarter seasonality, we grew total revenue by 40 basis points in the third quarter versus the second quarter.

我們在第三季確認了 8,400 萬美元的總收入，同時繼續解決我們業務中一些揮之不去的阻力。儘管第三季存在典型的季節性因素，但我們第三季的總收入比第二季增加了 40 個基點。

Starting with our direct-to-consumer business in the third quarter, we recognized $25.1 million in DTC revenue as a result of strong revenue per sales rep offset by fewer total reps as we continue to optimize the size of our team and focus on sales rep productivity. We are continuing to drive efficiency in this channel. And our productivity per rep, both in units and revenue was up double digits on a year over year basis.

從第三季的直接面向消費者業務開始，我們確認了2510 萬美元的DTC 收入，這是因為隨著我們繼續優化團隊規模並專注於銷售代表，每位銷售代表的強勁收入被較少的代表總數所抵消生產力。我們將繼續提高該通路的效率。我們的每位代表的生產力（單位數和收入）年增了兩位數。

Turning to our domestic B2B business, we recognized revenue of $17.3 million, which was impacted by residual headwinds to our business from the share loss we experienced over the past year due to the 2022 supply chain related volume constraints and lower price competition. In the third quarter, we made progress in recapturing market share while diversifying our customer base.

談到我們的國內B2B 業務，我們確認了1,730 萬美元的收入，這是由於2022 年供應鏈相關的銷量限制和較低的價格競爭導致我們在過去一年中經歷了份額損失，從而對我們的業務產生了殘餘阻力的影響。第三季度，我們在重新奪回市場份額方面取得了進展，同時實現了客戶群的多元化。

In our international B2B business, we recognized $25.6 million in revenue, reflecting strong double digit growth on a year-over-year and sequential basis. While we witnessed a significant delay in the Rove 6 French reimbursement approval, we did secure reimbursement in August, and we are currently focused on introducing Rove 6 to key customers in that market.

在我們的國際 B2B 業務中，我們確認了 2560 萬美元的收入，反映出同比和環比強勁的兩位數增長。雖然我們目睹了 Rove 6 法國報銷審批的嚴重延遲，但我們確實在 8 月獲得了報銷，目前我們的重點是向該市場的主要客戶介紹 Rove 6。

Please note that although our third quarter was relatively strong, we expect a lighter fourth quarter and international B2B channel with sales expected to be roughly flat year-over-year as we work through the Rove 6 introductions in France.

請注意，儘管我們的第三季相對強勁，但我們預計第四季度會較為清淡，隨著我們在法國推出 Rove 6，國際 B2B 通路的銷售額預計將與去年同期大致持平。

Our rental revenue was $16 million, increasing both year-over-year and sequentially. Rental revenue continues to benefit from improved prescriber team productivity with increases in referrals per sales rep as compared to Q2. We expect continued steady progress as we further optimize sales territories and cost frequency to drive scale and number of prescriptions per prescriber and overall growth.

我們的租金收入為 1,600 萬美元，年比和季比均有所成長。與第二季度相比，處方醫生團隊生產力的提高以及每個銷售代表的建議量的增加，使租賃收入繼續受益。我們預計，隨著我們進一步優化銷售區域和成本頻率，以推動規模和每位處方者的處方數量以及整體成長，我們將繼續穩步取得進展。

Shifting gears to our efforts to improve our cost structure and our operating efficiency, Mike will provide additional details on our operating expenses. But in short, we saw an increase in operating expenses in the quarter, primarily due to a noncash impairment charges related to the write-down of goodwill.

為了改善我們的成本結構和營運效率，麥克將提供有關我們營運費用的更多詳細資訊。但簡而言之，我們看到本季營運費用增加，主要是因為與商譽減記相關的非現金減損費用。

Our adjusted operating expenses fell to $47.6 million in the quarter, a decrease of $5.5 million year over year. This was primarily due to our initiatives to optimize productivity of our sales organization, while managing marketing spend.

本季調整後的營運費用降至 4,760 萬美元，年減 550 萬美元。這主要是由於我們在管理行銷支出的同時優化銷售組織生產力的舉措。

Before I turn the call over to Mike, I'd like to highlight that we are very excited to have closed our acquisition of Physio-Assist during the quarter. Physio-Assist expands our innovative respiratory portfolio with the addition of Simeox technology enabled airway clearance and mucus management device, predominantly aimed at treating bronchiectasis.

在將電話轉給 Mike 之前，我想強調一下，我們非常高興能夠在本季完成對 Physio-Assist 的收購。 Physio-Assist 增加了 Simeox 技術支援的氣道清除和黏液管理裝置，擴展了我們的創新呼吸產品組合，主要旨在治療支氣管擴張。

Entering the adjacent airway clearance market provides us the opportunity to serve patients earlier in the disease journey, expanding their lifetime value for Inogen, and standing up a business model that delivers recurring revenue streams from consumables. We did not recognize any revenue from Simeox in the third quarter, and consistent with our expectations at the time of acquisition, we do not expect any material revenue from the acquisition this year.

進入鄰近氣道清除市場為我們提供了在疾病旅程早期為患者提供服務的機會，擴大了 Inogen 的終身價值，並建立了一種從消耗品中提供經常性收入流的商業模式。第三季我們沒有確認 Simeox 的任何收入，與我們收購時的預期一致，我們預計今年的收購不會產生任何實質收入。

I will now turn the call over to Mike for a review of our financial results. Mike?

我現在將把電話轉給麥克，以審查我們的財務表現。麥克風？

Thank you, Nabil, and good afternoon, everyone. Unless otherwise noted, all financial comparisons are to the prior year comparable period.

謝謝你，納比爾，大家午安。除非另有說明，所有財務比較均與上一年可比較期間進行比較。

Total revenue for the third quarter of 2023 was $84 million, a decrease of 20.3% versus the prior period. The decrease was driven by lower direct to consumer and domestic business-to-business sales, partially offset by increased rental and international B2B sales.

2023年第三季總營收為8,400萬美元，較上年同期下降20.3%。下降的原因是直接面向消費者和國內企業對企業的銷售額下降，但部分被租金和國際 B2B 銷售額的成長所抵銷。

For the third quarter, foreign exchange had a negative 120 basis point impact on total revenue and a negative 790 basis point impact on international revenue.

第三季度，外匯對總收入產生了 120 個基點的負面影響，對國際收入產生了 790 個基點的負面影響。

Looking at third quarter revenue on a more detailed basis, direct to consumer sales decreased 24.1% to $25.1 million in the third quarter of 2023 from $33 million in the prior period, driven primarily by lower sales volume due to fewer sales representatives and lower marketing spend as we continue to drive towards improved sales rep productivity and overall channel profitability.

更詳細地觀察第三季收入，2023 年第三季直接面向消費者的銷售額從上一季的3,300 萬美元下降24.1% 至2,510 萬美元，這主要是由於銷售代表減少和行銷支出減少導致銷量下降。我們將繼續努力提高銷售代表的工作效率和整體通路獲利能力。

Domestic business business revenue decreased 59.4% to $17.3 million in the third quarter of 2023, compared with $42.5 million in the comparable period. Please note that our year ago B2B revenue had benefited considerably from pent-up demand and the fulfillment of backlog orders in the channel. International business to business revenue increased 69.9% to $25.6 million in the third quarter of 2023, as compared to $15.1 million in the prior period.

2023 年第三季國內業務收入下降 59.4%，至 1,730 萬美元，去年同期為 4,250 萬美元。請注意，我們一年前的 B2B 收入大大受益於通路中被壓抑的需求和積壓訂單的履行。 2023 年第三季度，國際企業對企業營收成長 69.9%，達到 2,560 萬美元，上一季為 1,510 萬美元。

Rental revenue increased 8.7% to $16 million in the third quarter of 2023 from $14.7 million in the prior period. Growth was driven primarily by an increase in the total number of rental patients on service.

2023 年第三季的租金收入從上一季的 1,470 萬美元成長 8.7%，達到 1,600 萬美元。成長主要是由於接受服務的租賃患者總數的增加所推動的。

Now to discuss our gross margins. Total gross margin was 40.2% in the third quarter, declining 40 basis points from the prior period, primarily driven by higher warranty costs and partially offset by lower consumption of premium-priced components.

現在討論我們的毛利率。第三季總毛利率為 40.2%，較上一期下降 40 個基點，主要是因為保固成本上升，部分被高價零件消耗減少所抵銷。

Sales revenue gross margin was 37.2%, driven primarily by a shift in channel mix with a lower volume of units sold through the direct to consumer channel as well as an impact from pricing pressure in the business-to-business channels.

銷售收入毛利率為 37.2%，主要是由於通路組合的轉變（透過直接面向消費者的通路銷售的單位數量減少）以及企業對企業通路的定價壓力的影響。

Rental revenue gross margin was 53.1%, primarily due to increased rental revenue adjustments and higher servicing cost per patient on service, partially offset by higher Medicare reimbursement rates. Please note that we continue to carry inventory of premium price components for semiconductor chips on our balance sheet as on-hand inventory.

租賃收入毛利率為 53.1%，主要是由於租賃收入調整增加以及每位患者的服務成本增加，但部分被較高的醫療保險報銷率所抵銷。請注意，我們繼續在資產負債表上將半導體晶片的高價組件庫存作為現有庫存。

As of September 30, 2023, the value of premium components in our inventory balance was $4.8 million. Due to lower forecasted sales volumes, we now expect the cost for premium price components to continue to impact cost of goods sold at a declining rate through the first half of 2024.

截至 2023 年 9 月 30 日，我們的庫存餘額中優質組件的價值為 480 萬美元。由於預測銷售量較低，我們現在預計，到 2024 年上半年，高價零件的成本將繼續以下降的速度影響銷售商品的成本。

Moving on to operating expense. In Q3, total operating expense increased to $80.5 million compared to $53.1 million in the prior period, representing an increase of 51.6%. The increase in expense is almost exclusively the result of onetime $32.9 million impairment charges.

繼續討論營運費用。第三季度，總營運費用從上一季的 5,310 萬美元增至 8,050 萬美元，成長 51.6%。費用的增加幾乎完全是由於一次性 3,290 萬美元的減損費用造成的。

As previously mentioned, we incurred to $32.9 million of impairment charges. This is a non-cash expense that has no impact on the company's cash balance or business operations. Excluding the one-time charges, operating expenses decreased to $47.6 million, representing a reduction of 10.4% as compared to the prior period.

如前所述，我們產生了 3,290 萬美元的減損費用。這是一項非現金支出，對公司的現金餘額或業務運作沒有影響。扣除一次性費用後，營運費用減少至 4,760 萬美元，較上一期間減少 10.4%。

Going into more detail on our expenses in the third quarter. We have continued to work on our innovation pipeline through investment in research and development, with a total spend for the quarter of $4.5 million. This spend was in line with the third quarter of 2022. Sales and marketing expense in the period was $26.1 million, representing a 22.7% decrease from prior year. The $7.6 million reduction in spending was primarily driven by lower personnel related and media and advertising costs associated with our direct to consumer channel.

更詳細地了解我們第三季的支出。我們透過研發投資持續致力於我們的創新管道，本季的總支出為 450 萬美元。這項支出與 2022 年第三季一致。該期間的銷售和行銷費用為 2,610 萬美元，比去年同期減少 22.7%。支出減少 760 萬美元，主要是由於與我們直接面向消費者的管道相關的人員相關費用以及媒體和廣告成本降低。

And finally, we incurred costs of $17 million for our general and administrative expenses in Q3, representing a $2.2 million increase as compared to the prior period The increase was primarily attributable to $1.4 million in restructuring related costs as well as a $1 million of acquisition related cost.

最後，我們第三季的一般和管理費用為 1700 萬美元，比上一季增加了 220 萬美元。增加的主要原因是 140 萬美元的重組相關成本以及 100 萬美元的收購相關成本。成本。

In the third quarter of 2023, we reported a net loss of $45.7 million and a loss per diluted share of $1.97. On an adjusted basis, we reported a net loss of $8.5 million and an adjusted loss per diluted share of $0.36. Adjusted EBITDA was a loss of $5.5 million.

2023 年第三季度，我們報告淨虧損 4,570 萬美元，攤薄每股虧損 1.97 美元。在調整後的基礎上，我們報告淨虧損為 850 萬美元，調整後每股稀釋虧損為 0.36 美元。調整後 EBITDA 虧損 550 萬美元。

Moving on to our balance sheet. As of September 30, 2023, and after closing the Physio-Assist deal, we had cash, cash equivalents and marketable securities of $138 million with no debt outstanding.

繼續我們的資產負債表。截至 2023 年 9 月 30 日，在完成 Physio-Assist 交易後，我們擁有 1.38 億美元的現金、現金等價物和有價證券，沒有未償債務。

I will now turn to our financial outlook. We continue to expect total company revenues for the full year 2023 to be in the range of $315 million to $320 million. We now expect an adjusted EBITDA loss of approximately $27 million for the full year, inclusive of investments in our Simeox airway clearance portfolio, which we acquired through the Physio-Assist transaction.

我現在談談我們的財務前景。我們仍預期 2023 年全年公司總營收將在 3.15 億至 3.2 億美元之間。我們現在預計全年調整後的 EBITDA 損失約為 2700 萬美元，其中包括我們透過 Physio-Assist 交易收購的 Simeox 氣道清關投資組合的投資。

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

因此，我們很樂意回答您的問題。

Thank you. We'll now be conducting a question-and-answer session. (Operator Instructions)

謝謝。我們現在將進行問答環節。 （操作員說明）

Mathew Blackman, Stifel.

馬修布萊克曼，史蒂菲爾。

Good afternoon. This is Colin on for Matt. I want to start with the DTC franchise for a moment. I understand the sales force productivity and the hiring efforts are still ramping and we're still dealing with tough comps from a footprint standpoint. But I'm curious when we'll start seeing any inflection in the DTC revenue line from the recent changes you've implemented to increase the headcount inefficiency? Could this be a 2024 event or a 2025 event? Any color there would be helpful.

午安.這是科林為馬特代言的。我想先從 DTC 特許經營權開始。我了解銷售人員的生產力和招募工作仍在增加，從足跡的角度來看，我們仍在應對艱難的競爭。但我很好奇，我們何時會開始看到 DTC 收入線因您最近為提高員工效率而實施的變化而出現任何變化？這是 2024 年的活動還是 2025 年的活動？任何顏色都會有幫助。

Hey, Colin, it's Nabil. I'll take that question. Thank you for the inquiry.

嘿，科林，我是納比爾。我來回答這個問題。感謝您的詢問。

So with respect to DTC, we are happy to continue to drive productivity per sales rep, both in revenue as well as in units. And as we had communicated on earlier calls, we're using this opportunity in 2023 to set up for a more productive 2024 performance in terms of both continuing to drive the productivity per rep as well as getting to the right number of people in the seats, but are productive so we can get the overall growth.

因此，就 DTC 而言，我們很高興繼續提高每位銷售代表的生產力，無論是收入還是銷售量。正如我們在之前的電話會議中所傳達的那樣，我們將利用2023 年的這個機會，為2024 年實現更高效的績效做好準備，既要繼續提高每位代表的生產力，又要讓座位上的人數合適，但是富有成效，因此我們可以獲得整體成長。

Okay, understood. And if I could ask one on the rental side. The rental business and your prescriber channel strategy in general seemingly continues to be a highlight for you guys. So I was wondering if there's been any cannibalization of the DTC business as of yet? And if not, what revenue run rate would the rental business have any effect on your new patient acquisitions downstream in the DTC side of things?

好的，明白了。我是否可以向租賃方面詢問一下。總體而言，租賃業務和您的處方管道策略似乎仍然是您的一大亮點。所以我想知道 DTC 業務到目前為止是否已經被蠶食了？如果不是，租賃業務的收入運作率會對 DTC 下游的新病患獲取產生什麼影響？

Yeah, that's a good question, Colin. So let me maybe just -- depict the journey in terms of the buying process that these patients go through. When we go to the rental prescriber, we intended to go upstream, whereby we secure that prescription from the actual physician or the prescriber, and we sell it as an HME or DME ourselves. Typically our downstream, which is the direct-to-consumer cash sales are patients that have gone through that journey and are dissatisfied with the devices they're on and they're not covered anymore by insurance. Hence, they're willing to actually pay for the device for cash.

是的，這是個好問題，科林。因此，讓我來描述一下這些患者所經歷的購買過程。當我們去找租賃處方者時，我們打算向上游走，從而從實際的醫生或處方者那裡獲得處方，然後我們自己將其作為 HME 或 DME 出售。通常，我們的下游，即直接面向消費者的現金銷售，是經歷過這一過程並對他們所使用的設備不滿意並且不再受保險覆蓋的患者。因此，他們願意實際支付現金購買設備。

And in general, there is no overall cannibalization that is material. If you capture them upstream a little bit earlier and put them on the right device and rental, there could be slight impact on downstream. But typically, the DTC patients are ones that have run out of options and coverage. So they're not really the same patient. And that's why we can sell them on cash, because that's the only option left for them if they want to get on the latest technology and new device and they have no other option there.

總的來說，不存在實質的整體蠶食。如果您早一點在上游捕獲它們並將它們放置在正確的設備和租賃上，可能會對下游產生輕微影響。但通常情況下，DTC 患者已經沒有選擇和承保範圍。所以他們並不是真正的同一個病人。這就是為什麼我們可以以現金出售它們，因為如果他們想獲得最新的技術和新設備，這是他們唯一的選擇，而且他們別無選擇。

Okay, great. That was really helpful. Thanks for answering my questions.

好的，太好了。這真的很有幫助。謝謝回答我的問題。

Thank you, Colin.

謝謝你，科林。

Margaret Kaczor, William Blair.

瑪格麗特·卡佐爾，威廉·布萊爾。

Hi, good afternoon, and thanks for taking the questions. Maybe just to start, I'm not sure I heard in the intro comments whether or not you guys are seeing any kind of a macro impact -- whether it's on DTC or B2B domestic. Is it at all harder for folks to get financing? Is there any kind of change in friction or it's one of the commercial dynamics with the sales force and so on?

你好，下午好，感謝您提出問題。也許只是為了開始，我不確定我在介紹性評論中聽到的是否你們看到了任何宏觀影響——無論是 DTC 還是 B2B 國內。人們獲得融資是否更困難？摩擦是否有任何變化，或是與銷售人員等的商業動態之一？

Hi, Margaret, thanks for the question. So you're right, we didn't actually go into the details. We said we're dealing with some lingering headwinds that are in the B2B business. And they are, as you characterize them, there is still an overhang in terms of access to capital in some instances or the cost of borrowing with some customers. What we're doing is we're working there.

嗨，瑪格麗特，謝謝你的提問。所以你是對的，我們其實並沒有詳細討論。我們說過，我們正在應對 B2B 業務中一些揮之不去的阻力。正如您所描述的那樣，在某些情況下獲得資本或向某些客戶借款的成本方面仍然存在懸而未決的問題。我們正在做的就是我們在那裡工作。

And then, of course, people are looking for margin accretion in their own businesses. So we're working very diligently to actually continue to put forth a value proposition that we believe is resonating with these types of customers in terms of our total cost of ownership versus an acquisition price head to head whereby as you operate that asset and generate revenue from it. If you look at your total margins and return as a result, you actually see it favorably.

當然，人們也在自己的企業中尋求利潤成長。因此，我們正在非常努力地工作，實際上繼續提出一個價值主張，我們相信，在我們的總擁有成本與收購價格方面，當您運營該資產並產生收入時，該價值主張會與這些類型的客戶產生共鳴。從中。如果你看看你的總利潤和回報，你實際上會看到它是有利的。

Of course, naturally, this is a work in progress with customers. Not everybody uses the right metric to make a purchasing decision. But definitely there is remaining overhang in terms of some of the challenges from a financial market perspective. And we're making good progress with the types of customers that we are focusing on, to be able to not only regain some of the market share, but also diversify our customer base.

當然，這自然是與客戶一起進行的工作。並非每個人都使用正確的指標來做出購買決定。但從金融市場的角度來看，肯定還存在一些挑戰。我們在關注的客戶類型方面取得了良好的進展，不僅能夠重新獲得一些市場份額，而且能夠使我們的客戶群多樣化。

Okay. And that was in reference more to B2B domestic or is that both DTC and B2B domestic?

好的。這更指的是國內 B2B，還是 DTC 和 B2B 都屬於國內？

That's -- thanks for the clarification. It's B2B domestic. In DTC, in general, we have not seen an impact in terms of a price elasticity -- a demand elasticity in terms of the pricing that we are at now. DTC seems to be stable.

那是——謝謝你的澄清。國內是B2B。總的來說，在 DTC 中，我們沒有看到價格彈性的影響——就我們目前的定價而言的需求彈性。 DTC 似乎很穩定。

Okay, great. That's helpful. And then as we think about B2B international, it seems like maybe that business, especially as we get into 2024, should maybe return to growth is the right way of phrasing it. How do you look at tender contracts as best as you see them today as you go out into 2024 and the market growth rate and your growth rate at potentially further '24 and beyond? Thanks.

好的，太好了。這很有幫助。然後，當我們思考 B2B 國際業務時，似乎該業務（尤其是進入 2024 年）應該會恢復成長，這是正確的表達方式。當您進入 2024 年時，您如何看待當前的招標合約以及市場成長率以及您在 24 世紀及以後可能的成長率？謝謝。

Yeah. So Margaret, let me start with the comment on the question on the tenders. So there has been a little bit of delays in Europe in general in terms of actually moving forward with tender decisions. We're seeing some of it remain. We're seeing some of it actually move forward. Fortunately, there is also a change in share in terms of the biggest customers that actually participate in those tenders and they all happened to be our customers. So our focus is on continuing to work with all parties that they'd provide them with the best value proposition and value.

是的。瑪格麗特，讓我先對招標問題發表評論。因此，歐洲在實際推進招標決定方面總體上存在一些延誤。我們看到其中一些仍然存在。我們看到其中一些實際上正在向前發展。幸運的是，實際參與這些招標的最大客戶的份額也發生了變化，他們都是我們的客戶。因此，我們的重點是繼續與各方合作，為他們提供最佳的價值主張和價值。

And then in some cases, we are sort of like gaining in one place and losing in another place in general within the same franchise of customers that we deal with. So the outlook for 2024 is a more stable market and from what we can gather from the feedback of our distributors that we work with and a little bit more return to the normal demand that we used to see before.

在某些情況下，我們就像在一個地方獲得收益而在另一個地方失去一樣，通常是在我們所處理的同一客戶群中。因此，從我們合作的經銷商的回饋中可以看出，2024 年的市場前景將更加穩定，並且會更多地回歸到我們之前看到的正常需求。

Okay. Sounds good. Thank you.

好的。聽起來不錯。謝謝。

Thanks, Margaret.

謝謝，瑪格麗特。

Robbie Marcus, JPMorgan.

羅比馬庫斯，摩根大通。

Hi, everyone. This is actually Rohan on for Robbie. Just a couple of questions on our end. Just firstly, can you just walk through some of the puts and takes as you think about them for 2024 just between -- and we touched on this, but just between some of the salesforce attrition in DTC as well as the competitive pressures in the B2B business, just to get a sense for how these are moderating and trending relative to one another? And then also just your views on the supply chain environment as you close out this year?

大家好。這其實是羅漢為羅比做的。我們這邊只有幾個問題。首先，您能否回顧一下 2024 年的一些考慮因素——我們談到了這一點，但只是在 DTC 中的一些銷售人員流失以及 B2B 中的競爭壓力之間商業，只是為了了解這些因素相對於彼此的緩和和趨勢如何？那麼，您對今年結束時的供應鏈環境有何看法？

Okay. Thank you. So let me start with the -- in reverse order just quickly. From a supply chain environment, I think as we made the comments in our prepared remarks, we're seeing that return to normal levels like before. We're still working through some of the prepaid cards that we have on our balance sheet and burning them down. As Mike said, we expect that to actually -- at the trickling rate go out of -- into the P&L by the middle of 2024.

好的。謝謝。因此，讓我以相反的順序快速開始。從供應鏈環境來看，我認為當我們在準備好的演講中發表評論時，我們看到供應鏈恢復到以前的正常水平。我們仍在處理資產負債表上的一些預付卡並將其燒毀。正如麥克所說，我們預計到 2024 年中期，這一數字實際上會以滴流的速度計入損益表。

So in general, no major issues in supply chain. There are a few things here and there that remain as a lingering effect. But nothing that really is very concerning at this point in time.

所以整體來說，供應鏈沒有出現重大問題。到處都有一些事情留下了揮之不去的影響。但目前還沒有什麼真正令人擔憂的事情。

With respect to salesforce attrition, I assume you're referring to the DTC comments that we made about resizing the sales force. So I'm going to answer it that way. I think maybe the way I would provide the right context on that is, as you raise the bar in terms of performance and productivity, you're bound to get a normal attrition rate and the sales force as you continue to drive for higher performance level and organizations.

關於銷售人員流失，我假設您指的是我們就調整銷售人員規模所做的 DTC 評論。所以我就這樣回答。我想也許我提供正確背景的方式是，當你提高績效和生產力方面的標準時，當你繼續追求更高的績效水準時，你必然會獲得正常的流失率和銷售團隊和組織。

Sometimes that attrition rate is a little bit more or less than you expect, but we continue to work through it by making sure that we've -- not only elevate the performance bar, but we have hiring classes that are ongoing to make sure that we replace in kind with people that can come in, are being set up on the right training, the right tools, and the right oversight in terms of sales management and discipline and continue to work our way to what we believe will become an optimal size of the sales force in 2024 when we stabilize that organization and drive productivity at the same time.

有時，流失率比您預期的要多一點或少一點，但我們會繼續努力解決這個問題，確保我們不僅提高了績效標準，而且我們正在舉辦招聘課程，以確保我們用可以進來的人員進行實物替換，在銷售管理和紀律方面正在接受正確的培訓、正確的工具和正確的監督，並繼續努力達到我們認為將成為最佳規模的水平到 2024 年，我們將穩定組織並同時提高生產力。

Your third question was about B2B pressures. I think this is an ongoing -- it's becoming a little bit more moderated, but it definitely exists as a day-to-day monitoring of not only the competitive pricing activity in the field, but also in terms of back to the overhangs from a B2B. Some people are engaging in providing financing or longer terms in terms of credit, et cetera. We had indicated before, and we're still doing it now that we work on promotional levers as required.

你的第三個問題是關於B2B壓力。我認為這是一個持續的過程——它正在變得更加溫和，但它確實存在，不僅是對該領域競爭性定價活動的日常監控，而且也是對來自市場的懸而未決的監控。B2B。有些人從事提供融資或長期信貸等活動。我們之前已經表示過，現在我們仍在按照要求制定促銷手段。

We are not although racing to the bottom of the pricing and the category. That's not healthy for anybody. So we are very selective in terms of the types of customers we're engaging with, and we've characterized them before as more DOC oriented and they're focused on the modality that we believe is the best for patients and the conversion rate.

儘管我們並沒有競相將價格和類別推向最低點。這對任何人來說都不健康。因此，我們在接觸的客戶類型方面非常有選擇性，我們之前已經將他們描述為更以 DOC 為導向，他們專注於我們認為最適合患者和轉換率的模式。

But there is definitely a day-to-day management of that channel in terms of making sure that we don't attrition anymore share. But on the contrary, regain some of the share, as we mentioned in our prepared remarks.

但肯定會對該管道進行日常管理，以確保我們不再消耗份額。但相反，正如我們在準備好的發言中提到的那樣，重新獲得一些份額。

Great. Thank you.

偉大的。謝謝。

Mike Matson, Needham & Company.

麥克馬森，李約瑟公司。

Yeah, thanks. I just had one on the rental business. The growth, I think it was around 8% or 9% or something year over year. I know you've invested pretty heavily in that prescriber salesforce. So just wanted to get an update there in terms of the impact that's having. I guess I'm a little surprised that it's not seeing higher growth given that -- I think it was like 60 prescriber reps out there or something? Correct me if that's wrong, but --

是的，謝謝。我剛剛從事租賃業務。我認為同比增長約為 8% 或 9% 左右。我知道您在處方銷售人員方面投入了大量資金。所以只是想了解其所產生的影響的最新情況。我想我有點驚訝的是，它沒有看到更高的增長，因為——我認為那裡有 60 名處方醫生代表之類的？如果這是錯誤的，請糾正我，但是—

So Mike, thanks for the question. So we have about 60 sales reps in the rental channel, if that's the question specifically. We're continuing to see productivity in terms of both the referrals per sales rep as well as the referrals per prescriber. And we're continuing to work through optimizing not only the size of the territories, but the frequency of calls for us to continue to drive that productivity upward. We now have come to the conclusion that frequency also matters a lot for us. So we're in the process of refining that to get back into the higher growth rates.

麥克，謝謝你的提問。如果這是具體問題的話，我們在租賃管道有大約 60 名銷售代表。我們繼續看到每個銷售代表的推薦量以及每個處方者的推薦量方面的生產力。我們將繼續努力，不僅優化區域的規模，而且優化要求我們繼續提高生產力的頻率。我們現在得出的結論是，頻率對我們也很重要。因此，我們正在改進這一點，以恢復更高的成長率。

With that said, we're happy with the progress we made in terms of the new patients that we put on service, as well as the progress that we're making in terms of the prescriber prescriptions per office.

話雖如此，我們對我們在提供服務的新患者方面取得的進展以及我們在每個辦公室的處方醫生處方方面取得的進展感到滿意。

Okay, thanks. And then the EBITDA guidance reduction. What drove that? I guess what happened that was kind of different from what you were expecting when you gave the $20 million to $25 million loss versus the $27 million you're guiding to now?

好的謝謝。然後是 EBITDA 指引的減少。是什麼推動了這一點？我猜發生的情況與您當時預計的 2000 萬至 2500 萬美元的損失以及您現在指導的 2700 萬美元的損失有點不同？

This is Mike. The original guidance was, I believe, based on Inogen standalone and -- so now we've introduced Physio-Assist into Q4 and given the size of the revenue and the great products and so forth, but we're going to have to do some investing to get that product line up and off the ground. So that's what you're seeing reflected in there as the impact of that on our Q4 revenues.

這是麥克。我相信，最初的指導是基於 Inogen 獨立的，所以現在我們已經在第四季度引入了 Physio-Assist，並考慮到收入的規模和出色的產品等等，但我們必須這樣做一些投資是為了讓該產品線啟動並啟動。這就是您所看到的對我們第四季度收入的影響。

Okay. (multiple speakers)

好的。 （多個發言者）

And I'll just add, Mike, that the majority of the investment goes to the clinical regulatory work in terms of securing -- getting ready for filing in terms of the FDA approval dossier.

麥克，我只想補充一點，大部分投資都用於確保 FDA 批准檔案備案的臨床監管工作。

Okay, got it. But the -- excluding that, you would have reiterated the prior guidance, I assume, excluding that acquisition?

好，知道了。但是──排除這一點，我想你會重申先前的指導，排除那次收購？

Yeah, we would have been ending probably toward the lower end of that -- of the original guidance, yes.

是的，我們可能會以原始指導的較低端結束，是的。

Okay. Got it. Thank you.

好的。知道了。謝謝。

Thanks, Mike.

謝謝，麥克。

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

目前沒有其他問題。我想將發言權交還給納比爾，請其發表最後評論。

Okay. Thank you. Our continued focus on executing our commercial strategy includes our plan to drive adoption of our current portable oxygen concentrators while expanding our portfolio to serve the larger COPD patient population as well as extend into adjacent indications, including dyspnea and hypercalcemia. We also plan to efficiently integrate Physio-Assist and pursue regulatory clearance for Simeox in the US.

好的。謝謝。我們繼續專注於執行我們的商業策略，包括我們計劃推動當前便攜式製氧機的採用，同時擴大我們的產品組合，為更多的慢性阻塞性肺病患者群體提供服務，並擴展到鄰近的適應症，包括呼吸困難和高血鈣症。我們還計劃有效整合 Physio-Assist 並為 Simeox 在美國尋求監管許可。

Looking ahead, we remain focused on supporting a return to revenue growth while diligently managing expenses and cash.

展望未來，我們仍然專注於支持收入成長的恢復，同時努力管理費用和現金。

To conclude, I would like to thank our Inogen team who are working diligently through some headwinds while remaining focused on setting the right foundation for growth in the years to come. That passionate focus on our patients and on fulfilling our purpose of improving patients' lives through respiratory care is foundational to who we are and Inogen's path forward.

最後，我要感謝我們的 Inogen 團隊，他們在克服一些逆風的同時，仍然致力於為未來幾年的成長奠定正確的基礎。對患者的熱情關注以及透過呼吸護理來實現改善患者生活的目標是我們的身份和 Inogen 前進道路的基礎。

With that said, we thank you for your participation and conclude the call.

話雖如此，我們感謝您的參與並結束通話。

And this concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。