Inogen Announces Fourth Quarter and Full-Year 2023 Financial Results
Fourth quarter 2023 revenue of
“I am excited for the future of Inogen. As we progress into 2024, we are focused on positioning the business for revenue growth and long-term profitability while advancing our innovation pipeline and working to bring Physio-Assist to the
Fourth Quarter 2023 Financial Results
Fourth quarter total revenue was
Total gross margin was 37.1% in the fourth quarter of 2023 versus 33.5% in the comparative period in 2022. The increase was driven primarily by lower premiums paid for components and labor and overhead costs.
Total operating expense for the quarter was
GAAP net loss for the fourth quarter of 2023 was
Adjusted EBITDA was a negative
Cash, cash equivalents and marketable securities were
Full-Year 2023 Financial Results
Total revenue was
Total gross margin was 40.1% for the full-year 2023 versus 40.7% in 2022. The decline was primarily due to sales channel mix and higher servicing costs, partially offset by lower premiums paid for components and labor and overhead costs as well as higher reimbursement rates. Additional impacts included higher cost of other materials and warranty cost per unit sold.
Total operating expense for the full-year 2023 was
GAAP net loss for full-year 2023 was
Adjusted EBITDA was a negative
Reconciliations of adjusted EBITDA and adjusted net loss for the three and twelve months ended
First Quarter 2024 Financial Outlook
For the first quarter 2024, Inogen expects revenue of
Quarterly Conference Call Information
Inogen will issue fourth quarter and full-year 2023 financial results after the market closes on
Individuals interested in listening to the conference call may do so by dialing:
US domestic callers (877) 841-3961
Non-US callers (201) 689-8589
Please reference Inogen to join the call. To listen to a live webcast, please visit the Investor Relations section of Inogen's website at: http://investor.inogen.com/. This webcast will also be archived on the website for 6 months.
A replay of the call will be available approximately three hours after the live webcast ends and will be accessible through
Inogen has used, and intends to continue to use, its Investor Relations website, http://investor.inogen.com/, as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. For more information, visit http://investor.inogen.com/.
About Inogen
For more information, please visit www.inogen.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, statements with respect to the business positioned for revenue growth and long-term profitability, advancing the innovation pipeline, working to bring Physio-Assist to the U.S. market, and Inogen’s first quarter revenue expectations. Any statements contained in this communication that are not statements of historical fact may be deemed to be forward-looking statements. Words such as “believes,” “anticipates,” “plans,” “expects,” “will,” “intends,” “potential,” “possible,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from currently anticipated results, including but not limited to, risks related to its announced management and organizational changes, and risks arising from the possibility that Inogen will not realize anticipated future financial performance or strategic goals. In addition, Inogen's business is subject to numerous additional risks and uncertainties, including, among others, risks relating to market acceptance of its products; competition; its sales, marketing and distribution capabilities; its planned sales, marketing, and research and development activities; interruptions or delays in the supply of components or materials for, or manufacturing of, its products; seasonal variations; unanticipated increases in costs or expenses; risks associated with international operations; and the possibility that Inogen will not realize anticipated revenue from recent or future technology acquisitions or that expenses and costs related thereto will exceed Inogen’s expectations. Information on these and additional risks, uncertainties, and other information affecting Inogen’s business operating results are contained in its Annual Report on Form 10-K for the period ended
Non-GAAP Financial Measures
Inogen has presented certain financial information in accordance with
Consolidated Statements of Comprehensive Loss |
||||||||||||||||
(unaudited) |
||||||||||||||||
(amounts in thousands, except share and per share amounts) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
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Three months ended |
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Twelve months ended |
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|
|
|
|
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Revenue |
|
|
|
|
|
|
|
|
||||||||
Sales revenue |
|
$ |
59,404 |
|
|
$ |
73,184 |
|
|
$ |
251,607 |
|
|
$ |
320,549 |
|
Rental revenue |
|
|
16,492 |
|
|
|
14,907 |
|
|
|
64,053 |
|
|
|
56,692 |
|
Total revenue |
|
|
75,896 |
|
|
|
88,091 |
|
|
|
315,660 |
|
|
|
377,241 |
|
Cost of revenue |
|
|
|
|
|
|
|
|
||||||||
Cost of sales revenue |
|
|
39,936 |
|
|
|
51,753 |
|
|
|
158,636 |
|
|
|
197,805 |
|
Cost of rental revenue, including depreciation of |
|
|
7,802 |
|
|
|
6,867 |
|
|
|
30,325 |
|
|
|
25,903 |
|
Total cost of revenue |
|
|
47,738 |
|
|
|
58,620 |
|
|
|
188,961 |
|
|
|
223,708 |
|
Gross profit |
|
|
28,158 |
|
|
|
29,471 |
|
|
|
126,699 |
|
|
|
153,533 |
|
Operating expense |
|
|
|
|
|
|
|
|
||||||||
Research and development |
|
|
6,714 |
|
|
|
5,934 |
|
|
|
20,840 |
|
|
|
21,943 |
|
Sales and marketing |
|
|
25,653 |
|
|
|
28,606 |
|
|
|
107,091 |
|
|
|
120,767 |
|
General and administrative |
|
|
24,773 |
|
|
|
1,259 |
|
|
|
75,260 |
|
|
|
43,905 |
|
Loss on disposal of intangible asset |
|
|
— |
|
|
|
52,161 |
|
|
|
— |
|
|
|
52,161 |
|
Impairment charges |
|
|
— |
|
|
|
— |
|
|
|
32,894 |
|
|
|
— |
|
Total operating expense |
|
|
57,140 |
|
|
|
87,960 |
|
|
|
236,085 |
|
|
|
238,776 |
|
Loss from operations |
|
|
(28,982 |
) |
|
|
(58,489 |
) |
|
|
(109,386 |
) |
|
|
(85,243 |
) |
Other income (expense) |
|
|
|
|
|
|
|
|
||||||||
Interest income |
|
|
1,602 |
|
|
|
1,715 |
|
|
|
6,574 |
|
|
|
2,837 |
|
Other income (expense) |
|
|
292 |
|
|
|
305 |
|
|
|
468 |
|
|
|
(862 |
) |
Total other income, net |
|
|
1,894 |
|
|
|
2,020 |
|
|
|
7,042 |
|
|
|
1,975 |
|
Loss before provision (benefit) for income taxes |
|
|
(27,088 |
) |
|
|
(56,469 |
) |
|
|
(102,344 |
) |
|
|
(83,268 |
) |
Provision (benefit) for income taxes |
|
|
(533 |
) |
|
|
141 |
|
|
|
105 |
|
|
|
504 |
|
Net loss |
|
|
(26,555 |
) |
|
|
(56,610 |
) |
|
|
(102,449 |
) |
|
|
(83,772 |
) |
Other comprehensive income (loss), net of tax |
|
|
|
|
|
|
|
|
||||||||
Change in foreign currency translation adjustment |
|
|
1,933 |
|
|
|
856 |
|
|
|
1,358 |
|
|
|
(597 |
) |
Change in net unrealized gains (losses) on foreign currency hedging |
|
|
(78 |
) |
|
|
(1,461 |
) |
|
|
— |
|
|
|
(3,130 |
) |
Less: reclassification adjustment for net (gains) losses included in net income |
|
|
25 |
|
|
|
784 |
|
|
|
— |
|
|
|
1,990 |
|
Total net change in unrealized gains (losses) on foreign currency hedging |
|
|
(53 |
) |
|
|
(677 |
) |
|
|
— |
|
|
|
(1,140 |
) |
Change in net unrealized gains (losses) on marketable securities |
|
|
(72 |
) |
|
|
9 |
|
|
|
110 |
|
|
|
25 |
|
Total other comprehensive income (loss), net of tax |
|
|
1,808 |
|
|
|
188 |
|
|
|
1,468 |
|
|
|
(1,712 |
) |
Comprehensive loss |
|
$ |
(24,747 |
) |
|
$ |
(56,422 |
) |
|
$ |
(100,981 |
) |
|
$ |
(85,484 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Basic net loss per share attributable to common stockholders (1) |
|
$ |
(1.14 |
) |
|
$ |
(2.47 |
) |
|
$ |
(4.42 |
) |
|
$ |
(3.67 |
) |
Diluted net loss per share attributable to common stockholders (1) (2) |
|
$ |
(1.14 |
) |
|
$ |
(2.47 |
) |
|
$ |
(4.42 |
) |
|
$ |
(3.67 |
) |
Weighted-average number of shares used in calculating net loss per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
||||||||
Basic common shares |
|
|
23,313,495 |
|
|
|
22,926,276 |
|
|
|
23,176,098 |
|
|
|
22,852,571 |
|
Diluted common shares |
|
|
23,313,495 |
|
|
|
22,926,276 |
|
|
|
23,176,098 |
|
|
|
22,852,571 |
|
(1) |
Reconciliations of net loss attributable to common stockholders basic and diluted can be found in Inogen’s Annual Report on Form 10-K to be filed with the |
|
(2) |
Due to a net loss for the three and twelve months ended |
Consolidated Balance Sheets |
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(unaudited) |
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(amounts in thousands) |
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|
2023 |
|
2022 |
||||
Assets |
|
|
|
|
||||
Current assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
125,492 |
|
|
$ |
187,014 |
|
Marketable securities |
|
|
2,979 |
|
|
|
— |
|
Accounts receivable, net |
|
|
42,241 |
|
|
|
62,725 |
|
Inventories, net |
|
|
21,840 |
|
|
|
34,093 |
|
Income tax receivable |
|
|
669 |
|
|
|
1,626 |
|
Prepaid expenses and other current assets |
|
|
13,846 |
|
|
|
19,187 |
|
Total current assets |
|
|
207,067 |
|
|
|
304,645 |
|
Property and equipment, net |
|
|
50,316 |
|
|
|
43,269 |
|
|
|
|
10,057 |
|
|
|
32,852 |
|
Intangibles and other non-current assets |
|
|
34,591 |
|
|
|
177 |
|
Operating lease right-of-use asset |
|
|
20,338 |
|
|
|
21,653 |
|
Other assets |
|
|
3,825 |
|
|
|
2,445 |
|
Total assets |
|
$ |
326,194 |
|
|
$ |
405,041 |
|
Liabilities and stockholders' equity |
|
|
|
|
||||
Current liabilities |
|
|
|
|
||||
Accounts payable and accrued expenses |
|
$ |
30,142 |
|
|
$ |
33,974 |
|
Accrued payroll |
|
|
11,066 |
|
|
|
11,190 |
|
Warranty reserve - current |
|
|
9,628 |
|
|
|
7,790 |
|
Operating lease liability - current |
|
|
3,653 |
|
|
|
3,515 |
|
Earnout liability |
|
|
10,000 |
|
|
|
— |
|
Deferred revenue - current |
|
|
7,980 |
|
|
|
8,880 |
|
Income tax payable |
|
|
27 |
|
|
|
— |
|
Total current liabilities |
|
|
72,496 |
|
|
|
65,349 |
|
Warranty reserve - noncurrent |
|
|
13,850 |
|
|
|
12,123 |
|
Operating lease liability - noncurrent |
|
|
18,270 |
|
|
|
19,764 |
|
Deferred revenue - noncurrent |
|
|
8,227 |
|
|
|
10,399 |
|
Deferred tax liability - noncurrent |
|
|
8,539 |
|
|
|
— |
|
Total liabilities |
|
|
121,382 |
|
|
|
107,635 |
|
Stockholders' equity |
|
|
|
|
||||
Common stock |
|
|
23 |
|
|
|
23 |
|
Additional paid-in capital |
|
|
320,513 |
|
|
|
312,126 |
|
Accumulated deficit |
|
|
(116,949 |
) |
|
|
(14,500 |
) |
Accumulated other comprehensive income (loss) |
|
|
1,225 |
|
|
|
(243 |
) |
Total stockholders' equity |
|
|
204,812 |
|
|
|
297,406 |
|
Total liabilities and stockholders' equity |
|
$ |
326,194 |
|
|
$ |
405,041 |
|
Condensed Consolidated Cash Flow |
||||||||
(unaudited) |
||||||||
(amounts in thousands) |
||||||||
|
|
|
|
|
||||
|
|
Years Ended |
||||||
|
|
2023 |
|
2022 |
||||
Cash flows from operating activities |
|
|
|
|
||||
Net loss |
|
$ |
(102,449 |
) |
|
$ |
(83,772 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
18,152 |
|
|
|
23,514 |
|
Loss on rental units and other assets |
|
|
4,508 |
|
|
|
3,095 |
|
Gain on sale of former rental assets |
|
|
(84 |
) |
|
|
(154 |
) |
Provision for sales revenue returns and doubtful accounts |
|
|
10,730 |
|
|
|
13,024 |
|
Provision for inventory losses |
|
|
2,691 |
|
|
|
2,423 |
|
Loss on purchase commitments |
|
|
2,057 |
|
|
|
— |
|
Stock-based compensation expense |
|
|
7,427 |
|
|
|
12,283 |
|
Deferred income taxes |
|
|
(251 |
) |
|
|
— |
|
Change in fair value of earnout liability |
|
|
6,822 |
|
|
|
(15,386 |
) |
Loss on disposal of intangible asset |
|
|
— |
|
|
|
52,161 |
|
Impairment charges |
|
|
32,894 |
|
|
|
— |
|
Changes in operating assets and liabilities |
|
|
14,269 |
|
|
|
(44,720 |
) |
Net cash used in operating activities |
|
|
(3,234 |
) |
|
|
(37,532 |
) |
Cash flows from investing activities |
|
|
|
|
||||
Purchases of available-for-sale securities |
|
|
(26,869 |
) |
|
|
— |
|
Maturities of available-for-sale securities |
|
|
24,000 |
|
|
|
10,014 |
|
Investment in intangible assets |
|
|
(494 |
) |
|
|
— |
|
Investment in property and equipment |
|
|
(5,218 |
) |
|
|
(3,337 |
) |
Production and purchase of rental equipment |
|
|
(21,299 |
) |
|
|
(17,885 |
) |
Proceeds from sale of former assets |
|
|
198 |
|
|
|
331 |
|
Acquisition of business, net of cash acquired |
|
|
(29,633 |
) |
|
|
— |
|
Net cash used in investing activities |
|
|
(59,315 |
) |
|
|
(10,877 |
) |
Cash flows from financing activities |
|
|
|
|
||||
Proceeds from stock options exercised |
|
|
384 |
|
|
|
44 |
|
Proceeds from employee stock purchases |
|
|
1,094 |
|
|
|
1,691 |
|
Payment of employment taxes related to release of restricted stock |
|
|
(518 |
) |
|
|
(1,355 |
) |
Net cash provided by financing activities |
|
|
960 |
|
|
|
380 |
|
Effect of exchange rates on cash |
|
|
67 |
|
|
|
(481 |
) |
Net decrease in cash and cash equivalents |
|
$ |
(61,522 |
) |
|
$ |
(48,510 |
) |
Supplemental Financial Information |
||||||||||||||||||
(unaudited) |
||||||||||||||||||
(in thousands, except units and patients) |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three months ended
|
|
Change as reported |
|
Constant Currency Change |
||||||||||||
|
|
2023 |
|
2022 |
|
$ |
|
% |
|
% |
||||||||
Revenue by region and category |
|
|
|
|
|
|
|
|
|
|
||||||||
Business-to-business domestic sales |
|
$ |
18,051 |
|
$ |
27,190 |
|
$ |
(9,139 |
) |
|
-33.6 |
% |
|
-33.6 |
% |
||
Business-to-business international sales |
|
|
21,524 |
|
|
|
20,703 |
|
|
|
821 |
|
|
4.0 |
% |
|
2.6 |
% |
Direct-to-consumer domestic sales |
|
|
19,829 |
|
|
|
25,291 |
|
|
|
(5,462 |
) |
|
-21.6 |
% |
|
-21.6 |
% |
Direct-to-consumer domestic rentals |
|
|
16,492 |
|
|
|
14,907 |
|
|
|
1,585 |
|
|
10.6 |
% |
|
10.6 |
% |
Total revenue |
|
$ |
75,896 |
|
|
$ |
88,091 |
|
|
$ |
(12,195 |
) |
|
-13.8 |
% |
|
-14.3 |
% |
Additional financial measures |
|
|
|
|
|
|
|
|
|
|
||||||||
Units sold |
|
|
34,100 |
|
|
|
43,500 |
|
|
|
|
|
|
|
||||
Net rental patients as of period-end |
|
|
51,900 |
|
|
|
45,600 |
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Twelve months ended
|
|
Change as reported |
|
Constant Currency Change |
||||||||||||
|
|
2023 |
|
2022 |
|
$ |
|
% |
|
% |
||||||||
Revenue by region and category |
|
|
|
|
|
|
|
|
|
|
||||||||
Business-to-business domestic sales |
|
$ |
66,196 |
|
|
$ |
86,049 |
|
|
$ |
(19,853 |
) |
|
-23.1 |
% |
|
-23.1 |
% |
Business-to-business international sales |
|
|
89,401 |
|
|
|
101,163 |
|
|
|
(11,762 |
) |
|
-11.6 |
% |
|
-11.2 |
% |
Direct-to-consumer domestic sales |
|
|
96,010 |
|
|
|
133,337 |
|
|
|
(37,327 |
) |
|
-28.0 |
% |
|
-28.0 |
% |
Direct-to-consumer domestic rentals |
|
|
64,053 |
|
|
|
56,692 |
|
|
|
7,361 |
|
|
13.0 |
% |
|
13.0 |
% |
Total revenue |
|
$ |
315,660 |
|
|
$ |
377,241 |
|
|
$ |
(61,581 |
) |
|
-16.3 |
% |
|
-16.2 |
% |
Additional financial measures |
|
|
|
|
|
|
|
|
|
|
||||||||
Units sold |
|
|
130,500 |
|
|
|
170,500 |
|
|
|
|
|
|
|
||||
Net rental patients as of period-end |
|
|
51,900 |
|
|
|
45,600 |
|
|
|
|
|
|
|
Reconciliation of |
||||||||||||||||
(unaudited) |
||||||||||||||||
(in thousands) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three months ended |
|
Twelve months ended |
||||||||||||
|
|
|
|
|
||||||||||||
Non-GAAP EBITDA and Adjusted EBITDA |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net loss (GAAP) |
|
$ |
(26,555 |
) |
|
$ |
(56,610 |
) |
|
$ |
(102,449 |
) |
|
$ |
(83,772 |
) |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
||||||||
Interest income, net |
|
|
(1,602 |
) |
|
|
(1,715 |
) |
|
|
(6,574 |
) |
|
|
(2,837 |
) |
Provision for income taxes |
|
|
(533 |
) |
|
|
141 |
|
|
|
105 |
|
|
|
504 |
|
Depreciation and amortization |
|
|
5,144 |
|
|
|
5,978 |
|
|
|
18,152 |
|
|
|
23,514 |
|
EBITDA (non-GAAP) |
|
|
(23,546 |
) |
|
|
(52,206 |
) |
|
|
(90,766 |
) |
|
|
(62,591 |
) |
Stock-based compensation |
|
|
(1,057 |
) |
|
|
3,098 |
|
|
|
7,427 |
|
|
|
12,283 |
|
Acquisition-related expenses |
|
|
432 |
|
|
|
— |
|
|
|
2,413 |
|
|
|
— |
|
Restructuring-related and other charges (1) |
|
|
— |
|
|
|
— |
|
|
|
3,426 |
|
|
|
— |
|
Impairment charges |
|
|
— |
|
|
|
— |
|
|
|
32,894 |
|
|
|
— |
|
Change in fair value of earnout liability |
|
|
6,822 |
|
|
|
(13,687 |
) |
|
|
6,822 |
|
|
|
(15,386 |
) |
Loss on disposal of intangible asset |
|
|
— |
|
|
|
52,161 |
|
|
|
— |
|
|
|
52,161 |
|
Adjusted EBITDA (non-GAAP) |
|
$ |
(17,349 |
) |
|
$ |
(10,634 |
) |
|
$ |
(37,784 |
) |
|
$ |
(13,533 |
) |
|
|
Three months ended |
||||||||||||||
|
|
Net Loss |
|
Diluted EPS |
||||||||||||
Non-GAAP Adjusted Net Loss and Diluted EPS |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Financial Results (GAAP) |
|
$ |
(26,555 |
) |
|
$ |
(56,610 |
) |
|
$ |
(1.14 |
) |
|
$ |
(2.47 |
) |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
||||||||
Amortization of intangibles |
|
|
918 |
|
|
|
2,022 |
|
|
|
|
|
||||
Stock-based compensation |
|
|
(1,057 |
) |
|
|
3,098 |
|
|
|
|
|
||||
Acquisition-related expenses |
|
|
432 |
|
|
|
— |
|
|
|
|
|
||||
Change in fair value of earnout liability |
|
|
6,822 |
|
|
|
(13,687 |
) |
|
|
|
|
||||
Loss on disposal of intangible asset |
|
|
— |
|
|
|
52,161 |
|
|
|
|
|
||||
Income tax impact of adjustments (2) |
|
|
— |
|
|
|
— |
|
|
|
|
|
||||
Adjusted |
|
$ |
(19,440 |
) |
|
$ |
(13,016 |
) |
|
$ |
(0.83 |
) |
|
$ |
(0.57 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
|
Twelve months ended |
||||||||||||||
|
|
Net Loss |
|
Diluted EPS |
||||||||||||
Non-GAAP Adjusted Net Loss and Diluted EPS |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Financial Results (GAAP) |
|
$ |
(102,449 |
) |
|
$ |
(83,772 |
) |
|
$ |
(4.42 |
) |
|
$ |
(3.67 |
) |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
||||||||
Amortization of intangibles |
|
|
1,202 |
|
|
|
8,469 |
|
|
|
|
|
||||
Stock-based compensation |
|
|
7,427 |
|
|
|
12,283 |
|
|
|
|
|
||||
Acquisition-related expenses |
|
|
2,413 |
|
|
|
— |
|
|
|
|
|
||||
Restructuring-related and other charges (1) |
|
|
3,426 |
|
|
|
— |
|
|
|
|
|
||||
Impairment charges |
|
|
32,894 |
|
|
|
— |
|
|
|
|
|
||||
Change in fair value of earnout liability |
|
|
6,822 |
|
|
|
(15,386 |
) |
|
|
|
|
||||
Loss on disposal of intangible asset |
|
|
— |
|
|
|
52,161 |
|
|
|
|
|
||||
Income tax impact of adjustments (2) |
|
|
— |
|
|
|
— |
|
|
|
|
|
||||
Adjusted |
|
$ |
(48,265 |
) |
|
$ |
(26,245 |
) |
|
$ |
(2.08 |
) |
|
$ |
(1.15 |
) |
(1) |
Charges represent the costs associated with workforce reductions and associated costs and other restructuring-related activities. |
|
(2) |
Income tax impact of adjustments represents the tax impact related to the non-GAAP adjustments listed above and reflects an effective tax rate of 0% for 2023 and 2022. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240227727365/en/
Source: