Penumbra (PEN) 10-Q 3 Nov 22 2022 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2022	Oct. 20, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-37557
Entity Registrant Name	Penumbra, Inc
Entity Address, Address Description	One Penumbra Place
Entity Address, City or Town	Alameda
Entity Address, State or Province	CA
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	05-0605598
Entity Address, Postal Zip Code	94502
City Area Code	510
Local Phone Number	748-3200
Title of 12(b) Security	Common Stock, Par value $0.001 per share
Trading Symbol	PEN
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		37,978,504
Entity Central Index Key	0001321732
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 54,844	$ 59,379
Marketable investments	129,583	195,496
Accounts receivable, net of allowance for credit losses of $656 and $2,092 at September 30, 2022 and December 31, 2021, respectively	189,006	133,940
Inventories	320,304	263,504
Prepaid expenses and other current assets	29,888	29,155
Total current assets	723,625	681,474
Property and equipment, net	64,082	58,856
Operating lease right-of-use assets	174,684	131,955
Finance lease right-of-use assets	34,114	36,276
Intangible assets, net	83,360	90,618
Goodwill	165,426	166,388
Deferred taxes	62,827	65,698
Other non-current assets	13,483	12,985
Total assets	1,321,601	1,244,250
Current liabilities:
Accounts payable	25,365	13,421
Accrued liabilities	101,672	99,796
Current operating lease liabilities	9,417	8,267
Current finance lease liabilities	1,878	1,713
Total current liabilities	138,332	123,197
Non-current operating lease liabilities	180,897	137,045
Non-current finance lease liabilities	25,325	26,523
Other non-current liabilities	3,295	3,558
Total liabilities	347,849	290,323
Commitments and contingencies
Stockholders’ equity:
Common stock	38	37
Additional paid-in capital	947,040	910,614
Accumulated other comprehensive (loss) income	(13,353)	(2,630)
Retained earnings	40,027	45,906
Total stockholders’ equity	973,752	953,927
Total liabilities and stockholders’ equity	$ 1,321,601	$ 1,244,250

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Allowance for credit losses	$ 656	$ 2,092

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Revenue	$ 213,678	$ 190,117	$ 625,917	$ 543,579
Cost of revenue	78,351	70,205	229,137	193,644
Gross profit	135,327	119,912	396,780	349,935
Operating expenses:
Research and development	21,320	16,734	61,443	52,548
Sales, general and administrative	108,573	94,397	334,088	264,831
Total operating expenses	129,893	111,131	395,531	317,379
Income from operations	5,434	8,781	1,249	32,556
Interest (expense) income, net	(43)	138	(162)	917
Other expense, net	(2,356)	(1,137)	(4,323)	(3,021)
Income (loss) before income taxes	3,035	7,782	(3,236)	30,452
Provision for (benefit from) income taxes	5,306	(249)	2,643	3,196
Consolidated net (loss) income	(2,271)	8,031	(5,879)	27,256
Net loss attributable to non-controlling interest	0	(819)	0	(2,661)
Net (loss) income attributable to Penumbra, Inc.	$ (2,271)	$ 8,850	$ (5,879)	$ 29,917
Net (loss) income attributable to Penumbra, Inc. per share:
Basic (in dollars per share)	$ (0.06)	$ 0.24	$ (0.16)	$ 0.82
Diluted (in dollars per share)	$ (0.06)	$ 0.24	$ (0.16)	$ 0.80
Weighted average shares outstanding:
Basic (in shares)	37,918,452	36,617,961	37,778,362	36,532,822
Diluted (in shares)	37,918,452	37,611,355	37,778,362	37,592,095

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Consolidated net (loss) income	$ (2,271)	$ 8,031	$ (5,879)	$ 27,256
Other comprehensive loss, net of tax:
Foreign currency translation adjustments, net of tax	(2,812)	(1,356)	(7,013)	(3,188)
Net change in unrealized losses on available-for-sale securities, net of tax	(383)	(66)	(3,710)	(446)
Total other comprehensive loss, net of tax	(3,195)	(1,422)	(10,723)	(3,634)
Consolidated comprehensive (loss) income	(5,466)	6,609	(16,602)	23,622
Net loss attributable to non-controlling interest	0	(819)	0	(2,661)
Comprehensive (loss) income attributable to Penumbra, Inc.	$ (5,466)	$ 7,428	$ (16,602)	$ 26,283

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings (Accumulated Deficit)	Total Penumbra, Inc. Stockholders’ Equity	Non-controlling Interest
Beginning balance (in shares) at Dec. 31, 2020		36,414,732
Beginning balance at Dec. 31, 2020	$ 637,788	$ 36	$ 598,299	$ 2,541	$ 40,622	$ 641,498	$ (3,710)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)		79,080
Issuance of common stock	666		666			666
Shares held for tax withholdings (in shares)		(11,955)
Shares held for tax withholdings	(3,036)		(3,036)			(3,036)
Stock-based compensation	7,093		7,093			7,093
Other comprehensive income (loss)	(2,966)			(2,966)		(2,966)
Net income (loss)					11,836	11,836
Net loss attributable to non-controlling interest							(910)
Ending balance (in shares) at Mar. 31, 2021		36,481,857
Ending balance at Mar. 31, 2021	650,471	$ 36	603,022	(425)	52,458	655,091	(4,620)
Beginning balance (in shares) at Dec. 31, 2020		36,414,732
Beginning balance at Dec. 31, 2020	637,788	$ 36	598,299	2,541	40,622	641,498	(3,710)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income (loss)	(3,634)			(3,634)
Net income (loss)	29,917
Net loss attributable to non-controlling interest	(2,661)
Ending balance (in shares) at Sep. 30, 2021		36,669,903
Ending balance at Sep. 30, 2021	684,603	$ 36	621,457	(1,093)	70,539	690,939	(6,336)
Beginning balance (in shares) at Mar. 31, 2021		36,481,857
Beginning balance at Mar. 31, 2021	650,471	$ 36	603,022	(425)	52,458	655,091	(4,620)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)		67,547
Issuance of common stock	312		312			312
Issuance of common stock under employee stock purchase plan (in shares)		35,221
Issuance of common stock under employee stock purchase plan	7,354		7,354			7,354
Shares held for tax withholdings (in shares)		(15,023)
Shares held for tax withholdings	(3,952)		(3,952)			(3,952)
Stock-based compensation	10,138		10,138			10,138
Other comprehensive income (loss)	754			754		754
Net income (loss)					9,231	9,231
Net loss attributable to non-controlling interest							(932)
Ending balance (in shares) at Jun. 30, 2021		36,569,602
Ending balance at Jun. 30, 2021	673,376	$ 36	616,874	329	61,689	678,928	(5,552)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)		113,760
Issuance of common stock	1,213		1,178			1,178	35
Shares held for tax withholdings (in shares)		(13,459)
Shares held for tax withholdings	(3,533)		(3,533)			(3,533)
Stock-based compensation	6,938		6,938			6,938
Other comprehensive income (loss)	(1,422)			(1,422)		(1,422)
Net income (loss)	8,850				8,850	8,850
Net loss attributable to non-controlling interest	(819)						(819)
Ending balance (in shares) at Sep. 30, 2021		36,669,903
Ending balance at Sep. 30, 2021	684,603	$ 36	621,457	(1,093)	70,539	690,939	(6,336)
Beginning balance (in shares) at Dec. 31, 2021		37,578,483
Beginning balance at Dec. 31, 2021	953,927	$ 37	910,614	(2,630)	45,906	953,927	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)		103,984
Issuance of common stock	1,103	$ 1	1,102			1,103
Shares held for tax withholdings (in shares)		(14,243)
Shares held for tax withholdings	(3,181)		(3,181)			(3,181)
Stock-based compensation	10,716		10,716			10,716
Other comprehensive income (loss)	(3,342)			(3,342)		(3,342)
Net income (loss)					79	79
Ending balance (in shares) at Mar. 31, 2022		37,668,224
Ending balance at Mar. 31, 2022	959,302	$ 38	919,251	(5,972)	45,985	959,302	0
Beginning balance (in shares) at Dec. 31, 2021		37,578,483
Beginning balance at Dec. 31, 2021	953,927	$ 37	910,614	(2,630)	45,906	953,927	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income (loss)	(10,723)			(10,723)
Net income (loss)	(5,879)
Net loss attributable to non-controlling interest	0
Ending balance (in shares) at Sep. 30, 2022		37,968,291
Ending balance at Sep. 30, 2022	973,752	$ 38	947,040	(13,353)	40,027	973,752	0
Beginning balance (in shares) at Mar. 31, 2022		37,668,224
Beginning balance at Mar. 31, 2022	959,302	$ 38	919,251	(5,972)	45,985	959,302	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)		158,735
Issuance of common stock	3,466		3,466			3,466
Issuance of common stock under employee stock purchase plan (in shares)		66,098
Issuance of common stock under employee stock purchase plan	7,998		7,998			7,998
Shares held for tax withholdings (in shares)		(12,950)
Shares held for tax withholdings	(1,900)		(1,900)			(1,900)
Stock-based compensation	9,022		9,022			9,022
Other comprehensive income (loss)	(4,186)			(4,186)		(4,186)
Net income (loss)					(3,687)	(3,687)
Ending balance (in shares) at Jun. 30, 2022		37,880,107
Ending balance at Jun. 30, 2022	970,015	$ 38	937,837	(10,158)	42,298	970,015	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)		99,921
Issuance of common stock	1,725		1,725			1,725
Shares held for tax withholdings (in shares)		(11,737)
Shares held for tax withholdings	(1,887)		(1,887)			(1,887)
Stock-based compensation	9,365		9,365			9,365
Other comprehensive income (loss)	(3,195)			(3,195)		(3,195)
Net income (loss)	(2,271)				(2,271)	(2,271)
Net loss attributable to non-controlling interest	0
Ending balance (in shares) at Sep. 30, 2022		37,968,291
Ending balance at Sep. 30, 2022	$ 973,752	$ 38	$ 947,040	$ (13,353)	$ 40,027	$ 973,752	$ 0

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Statement of Cash Flows [Abstract]
Consolidated net (loss) income	$ (5,879)	$ 27,256
Adjustments to reconcile consolidated net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	17,880	10,655
Stock-based compensation	27,381	24,101
Inventory write-downs	2,051	2,309
Deferred taxes	2,804	809
Other	879	1,685
Changes in operating assets and liabilities:
Accounts receivable	(57,357)	(6,963)
Inventories	(62,317)	(45,812)
Prepaid expenses and other current and non-current assets	(1,958)	(7,096)
Accounts payable	13,090	(1,189)
Accrued expenses and other non-current liabilities	6,165	9,803
Proceeds from lease incentives	263	3,214
Net cash provided by (used in) operating activities	(56,998)	18,772
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of marketable investments	0	(107,125)
Proceeds from sales of marketable investments	1,180	2,000
Proceeds from maturities of marketable investments	60,713	97,967
Purchases of property and equipment	(15,736)	(13,088)
Other	0	(150)
Net cash provided by (used in) investing activities	46,157	(20,396)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercises of stock options	6,293	2,191
Proceeds from issuance of stock under employee stock purchase plan	7,998	7,354
Payment of employee taxes related to vested stock	(6,968)	(10,521)
Payments of finance lease obligations	(1,299)	(1,056)
Other	(137)	(93)
Net cash provided by (used in) financing activities	5,887	(2,125)
Effect of foreign exchange rate changes on cash and cash equivalents	419	369
NET DECREASE IN CASH AND CASH EQUIVALENTS	(4,535)	(3,380)
CASH AND CASH EQUIVALENTS—Beginning of period	59,379	69,670
CASH AND CASH EQUIVALENTS—End of period	54,844	66,290
NONCASH INVESTING AND FINANCING ACTIVITIES:
Right-of-use assets obtained in exchange for lease obligations	51,495	100,178
Right-of-use assets obtained in exchange for finance lease obligations	278	1,113
Purchase of property and equipment funded through accounts payable and accrued liabilities	1,847	4,839
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for amounts included in the measurement of operating lease liabilities	13,017	6,214
Cash paid for income taxes	$ 2,503	$ 933

Organization and Description of

Organization and Description of Business	9 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Description of Business	1. Organization and Description of Business Penumbra, Inc. (the “Company”) is a global healthcare company focused on innovative therapies. The Company designs, develops, manufactures and markets novel products and has a broad portfolio that addresses challenging medical conditions in markets with significant unmet need. The Company focuses on developing, manufacturing and marketing novel products for use by specialist physicians and other healthcare providers to drive improved clinical and health outcomes. The Company believes that the cost-effectiveness of our products is attractive to our customers.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation and Consolidation The accompanying condensed consolidated balance sheet as of September 30, 2022, the condensed consolidated statements of operations, the condensed consolidated statements of comprehensive (loss) income, and the condensed consolidated statements of stockholders’ equity for the three and nine months ended September 30, 2022 and 2021, and the condensed consolidated statements of cash flows for the nine months ended September 30, 2022 and 2021 are unaudited. The unaudited condensed consolidated financial statements included herein have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) for interim financial information. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. The condensed consolidated balance sheet data as of December 31, 2021 was derived from the audited financial statements as of that date. The unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to state fairly the Company’s financial position as of September 30, 2022, the results of its operations for the three and nine months ended September 30, 2022 and 2021, the changes in its comprehensive income (loss) and stockholders’ equity for the three and nine months ended September 30, 2022 and 2021, and its cash flows for the nine months ended September 30, 2022 and 2021. The results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022 or for any other future annual or interim period. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and notes thereto for the fiscal year ended December 31, 2021, included in the Company’s Annual Report on Form 10-K. There have been no changes to the Company’s significant accounting policies during the nine months ended September 30, 2022, as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and equity accounts; disclosure of contingent assets and liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to marketable investments, allowances for credit losses, the amount of variable consideration included in the transaction price, warranty reserve, valuation of inventories, useful lives of property and equipment, intangibles, operating and financing lease right-of-use (“ROU”) assets and liabilities, income taxes, contingent consideration and other contingencies, among others. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other data. Actual results could differ from those estimates. Segments The Company determined its operating segment on the same basis that it uses to evaluate its performance internally. The Company has one business activity: the design, development, manufacturing and marketing of innovative medical products, and

Investments and Fair Value of F

Investments and Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Investments and Fair Value of Financial Instruments	3. Investments and Fair Value of Financial Instruments Marketable Investments The Company’s marketable investments have been classified and accounted for as available-for-sale. The following table presents the Company’s marketable investments as of September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 Securities with net gains or losses in accumulated other comprehensive income (loss) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance Fair Value U.S. treasury $ 14,477 $ — $ (569) $ — $ 13,908 U.S. agency and government sponsored securities 7,001 — (223) — 6,778 U.S. states and municipalities 28,130 — (679) — 27,451 Corporate bonds 84,280 — (2,834) — 81,446 Total $ 133,888 $ — $ (4,305) $ — $ 129,583 December 31, 2021 Securities with net gains or losses in accumulated other comprehensive income (loss) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance Fair Value Commercial paper $ 20,286 $ — $ (10) $ — $ 20,276 U.S. treasury 14,464 — (77) — 14,387 U.S. agency and government sponsored securities 11,553 1 (19) — 11,535 U.S. states and municipalities 39,436 39 (89) — 39,386 Corporate bonds 110,354 49 (491) — 109,912 Total $ 196,093 $ 89 $ (686) $ — $ 195,496 As of September 30, 2022, the total amortized cost basis of the Company’s impaired available-for-sale securities exceeded its fair value by $4.3 million, which was primarily attributable to widening credit spreads and rising interest rates since purchase. The Company reviewed its impaired available-for-sale securities and concluded that the decline in fair value was not related to credit losses and that it is more likely than not that the entire amortized cost of each impaired security will be recoverable before the Company is required to sell them or when the security matures. Accordingly, during the three and nine months ended September 30, 2022, no allowance for credit losses was recorded and instead the unrealized losses are reported as a component of accumulated other comprehensive (loss) income. The following tables present the gross unrealized losses and the fair value for those marketable investments that were in an unrealized loss position for less than twelve months or for twelve months or more as of September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 Less than 12 months 12 months or more Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S. treasury $ 13,908 $ (569) $ — $ — $ 13,908 $ (569) U.S. agency and government sponsored securities 2,866 (129) 3,912 (94) 6,778 (223) U.S. states and municipalities 20,778 (467) 5,803 (212) 26,581 (679) Corporate bonds 65,326 (1,895) 16,120 (939) 81,446 (2,834) Total $ 102,878 $ (3,060) $ 25,835 $ (1,245) $ 128,713 $ (4,305) December 31, 2021 Less than 12 months 12 months or more Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Commercial paper $ 16,977 $ (10) $ — $ — $ 16,977 $ (10) U.S. treasury 14,387 (77) — — 14,387 (77) U.S. agency and government sponsored securities 6,985 (19) — — 6,985 (19) U.S. states and municipalities 21,924 (89) — — 21,924 (89) Corporate bonds 85,513 (491) — — 85,513 (491) Total $ 145,786 $ (686) $ — $ — $ 145,786 $ (686) The following table presents the contractual maturities of the Company’s marketable investments as of September 30, 2022 (in thousands): September 30, 2022 Amortized Cost Fair Value Due in less than one year $ 48,276 $ 47,495 Due in one to five years 85,612 82,088 Total $ 133,888 $ 129,583 Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The categorization of a financial instrument within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company classifies its cash equivalents and marketable investments within Level 1 and Level 2, as it uses quoted market prices or alternative pricing sources and models utilizing market observable inputs. The Company determined the fair value of its Level 1 financial instruments, which are traded in active markets, using quoted market prices for identical instruments. Marketable investments classified within Level 2 of the fair value hierarchy are valued based on other observable inputs, including broker or dealer quotations or alternative pricing sources. When quoted prices in active markets for identical assets or liabilities are not available, the Company relies on non-binding quotes from its investment managers, which are based on proprietary valuation models of independent pricing services. These models generally use inputs such as observable market data, quoted market prices for similar instruments, historical pricing trends of a security as relative to its peers. To validate the fair value determination provided by its investment managers, the Company reviews the pricing movement in the context of overall market trends and trading information from its investment managers. In addition, the Company assesses the inputs and methods used in determining the fair value in order to determine the classification of securities in the fair value hierarchy. The Company did not hold any Level 3 marketable investments as of September 30, 2022 or December 31, 2021. During the nine months ended September 30, 2022 and 2021, the Company did not have any transfers between Level 1, Level 2 or Level 3 of the fair value hierarchy. Additionally, the Company did not have any financial assets and liabilities measured at fair value on a non-recurring basis as of September 30, 2022 or December 31, 2021. The following tables set forth the Company’s financial assets measured at fair value by level within the fair value hierarchy as of September 30, 2022 and December 31, 2021 (in thousands): As of September 30, 2022 Level 1 Level 2 Level 3 Fair Value Financial Assets Cash equivalents: Money market funds $ 8,797 $ — $ — $ 8,797 Marketable investments: U.S. treasury 13,908 — — 13,908 U.S. agency and government sponsored securities — 6,778 — 6,778 U.S. states and municipalities — 27,451 — 27,451 Corporate bonds — 81,446 — 81,446 Total $ 22,705 $ 115,675 $ — $ 138,380 As of December 31, 2021 Level 1 Level 2 Level 3 Fair Value Financial Assets Cash equivalents: Money market funds $ 10,509 $ — $ — $ 10,509 Marketable investments: Commercial paper — 20,276 — 20,276 U.S. treasury 14,387 — — 14,387 U.S. agency and government sponsored securities — 11,535 — 11,535 U.S. states and municipalities — 39,386 — 39,386 Corporate bonds — 109,912 — 109,912 Total $ 24,896 $ 181,109 $ — $ 206,005

Balance Sheet Components

Balance Sheet Components	9 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Balance Sheet Components	4. Balance Sheet Components Inventories The following table shows the components of inventories as of September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 December 31, 2021 Raw materials $ 84,913 $ 68,374 Work in process 29,167 18,678 Finished goods 206,224 176,452 Inventories $ 320,304 $ 263,504 Accrued Liabilities The following table shows the components of accrued liabilities as of September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 December 31, 2021 Payroll and employee-related cost $ 57,310 $ 60,015 Accrued expenses 10,765 12,245 Deferred revenue 9,732 5,671 Other accrued liabilities 23,865 21,865 Total accrued liabilities $ 101,672 $ 99,796 The following table shows the changes in the Company’s estimated product warranty accrual, included in accrued liabilities, for the nine months ended September 30, 2022 and twelve months ended December 31, 2021, respectively (in thousands): September 30, 2022 December 31, 2021 Balance at the beginning of the period $ 4,310 $ 2,896 Accruals of warranties issued 1,986 2,973 Settlements of warranty claims (1,129) (1,559) Balance at the end of the period $ 5,167 $ 4,310

Business Combinations

Business Combinations	9 Months Ended
	Sep. 30, 2022
Business Combination and Asset Acquisition [Abstract]
Business Combinations	5. Business Combinations Acquisition of Sixense Enterprises Inc . Transaction Overview On October 1, 2021 (the “Closing Date”), the Company closed the acquisition of Sixense Enterprises Inc. (“Sixense”) pursuant to the Agreement and Plan of Merger, dated September 17, 2021, among the Company, Sixense, Seychelles Merger Corporation, a wholly owned subsidiary of the Company, and a stockholders’ agent (the “Merger”). Sixense, a privately held company, specializes in enterprise use of virtual reality hardware and software and has been an integral partner on the development of the Company’s REAL Immersive System portfolio. The Merger allows the Company to streamline its efforts and collaborate more closely on its immersive healthcare offerings. The Company and Sixense formed a joint venture, MVI Health Inc. (“MVI”), in 2017 for the purpose of exploring healthcare applications of virtual reality technology. At the time of MVI’s formation, the Company contributed cash and in-kind services to MVI and Sixense contributed an exclusive license to use its technology for healthcare applications, each for a 50% equity interest in MVI. In 2018, the Company acquired 40% of the outstanding shares of MVI from Sixense and consolidated the financial results of MVI into the accompanying consolidated financial statements, with the amounts attributable to the non-controlling interest classified separately. As of the Closing Date, the Company and Sixense owned a 90% and 10% equity interest in MVI, respectively. As a result of the Merger, Sixense became a wholly owned subsidiary of the Company and the Company acquired, among other things, the remaining 10% equity interest in MVI held by Sixense. The Company accounted for the acquired assets and liabilities assumed from Sixense in accordance with ASC 805 and for its change in ownership interest in MVI as an equity transaction in accordance with ASC 810. The carrying amount of the noncontrolling interest was adjusted to zero, and the difference between the acquisition date fair value of the equity interest acquired of $4.2 million and its carrying amount of $(6.2) million was recognized within additional paid in capital. Fair Value of Consideration Transferred The following table summarizes the Closing Date fair value of the consideration transferred (in thousands): Fair value of common stock issued (1) $ 174,133 Fair value of replacement stock options (2) 80,693 Consideration for settlement of pre-existing liabilities due to Sixense (3) (3,810) Total purchase price $ 251,016 (1) The fair value of the 661,877 shares of common stock issued as part of consideration transferred was determined based on the acquisition date closing market price of the Company’s common stock of $263.09. (2) Per ASC 805, the replacement of stock options or other share-based payment awards in conjunction with a business combination represents a modification of share-based payment awards that must be accounted for in accordance with ASC 718. As a result of the Company’s obligation to issue replacement awards, a portion of the fair-value-based measure of replacement awards is included in measuring the purchase consideration transferred in the business combination. To determine the portion of the replacement awards that is part of the purchase consideration, the Company measured the fair value of both the replacement awards and the historical awards as of the Closing Date, in accordance with ASC 718. The fair value of the replacement awards, whether vested or unvested, was included in the purchase consideration to the extent that pre-acquisition services had been rendered. The fair value of replacement stock options assumed for which pre-acquisition services were rendered of $80.7 million was allocated to the purchase consideration and $25.8 million was recognized immediately in the post-combination financial statements during the three months ended December 31, 2021, as pre-acquisition services were not rendered but the vesting of all stock options was accelerated in connection with the Merger. (3) In the connection with the Merger, the Company effectively settled pre-existing liabilities due to or on behalf of Sixense. The purchase price measurement period was closed as of September 30, 2022. The following table presents the allocation of the purchase price, reflecting immaterial measurement period adjustments recorded during the three months ended September 30, 2022 (in thousands): Acquisition-Date Fair Value Estimated Useful Life of Finite-Lived Intangible Assets Tangible assets acquired and (liabilities) assumed: Cash and cash equivalents $ 2,919 Prepaid expenses and other current and non-current assets 1,971 Deferred tax assets 20,678 Deferred tax liabilities (19,398) Accrued liabilities and other current liabilities (1,341) Intangible assets acquired: Developed technology 62,466 8.75 years In-process research and development 20,823 Net assets acquired 88,118 Fair value of subsidiary stock indirectly acquired through the Merger 4,161 Total net assets acquired 92,279 Goodwill 158,737 Total purchase price $ 251,016 The intangible assets acquired and the fair value of the privately-held subsidiary stock indirectly acquired are Level 3 fair value measurements for which fair value is derived from valuations using inputs that are unobservable and significant to the overall fair value measurement.

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2022
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Intangible Assets	6. Intangible Assets Acquired Intangible Assets The following tables present details of the Company’s acquired finite-lived intangible assets as of September 30, 2022 and December 31, 2021 (in thousands, except weighted-average amortization period): As of September 30, 2022 Weighted-Average Amortization Period Gross Carrying Amount Accumulated Amortization Net Finite-lived intangible assets: Developed technology 8.8 years $ 83,289 $ (7,734) $ 75,555 Customer relationships 15.0 years 5,841 (2,044) 3,797 Trade secrets and processes 20.0 years 5,256 (1,248) 4,008 Other 5.0 years 1,506 (1,506) — Total intangible assets 9.6 years $ 95,892 $ (12,532) $ 83,360 As of December 31, 2021 Weighted-Average Gross Carrying Amount Accumulated Amortization Net Finite-lived intangible assets: Developed technology 8.8 years $ 62,466 $ (1,784) $ 60,682 Customer relationships 15.0 years 6,762 (2,029) 4,733 Trade secrets and processes 20.0 years 5,256 (1,051) 4,205 Other 5.0 years 1,744 (1,569) 175 Total intangible assets subject to amortization 9.8 years $ 76,228 $ (6,433) $ 69,795 Indefinite-lived intangible assets: In-process research and development $ 20,823 $ — $ 20,823 Total intangible assets $ 97,051 $ (6,433) $ 90,618 The customer relationships and intangible assets classified as “Other” relate to the acquisition of Crossmed S.p.A., the Company’s wholly-owned subsidiary in Italy, during the third quarter of 2017. The gross carrying amount and accumulated amortization of these intangible assets are subject to foreign currency translation effects. The Company reviews indefinite-lived intangible assets for impairment annually during the fourth quarter or more frequently if events or circumstances indicate that an impairment loss may have occurred. During the three months ended September 30, 2022, the Company reclassified a $20.8 million in-process research and development (“IPR&D”) asset from the Sixense acquisition to a finite-lived developed technology intangible asset upon the completion of the IPR&D project and began amortizing the intangible asset over its useful life of 8.8 years. Prior to reclassifying the IPR&D asset to a finite-lived intangible asset during the three months ended September 30, 2022, the Company performed an impairment analysis and determined that the IPR&D asset was not impaired. The following table presents the amortization expense recorded related to the Company’s finite-lived intangible assets for the three and nine months ended September 30, 2022 and 2021 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of revenue $ 66 $ 66 $ 197 $ 197 Sales, general and administrative 2,481 207 6,436 633 Total $ 2,547 $ 273 $ 6,633 $ 830

Goodwill

Goodwill	9 Months Ended
	Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	7. Goodwill The following table presents the changes in goodwill during the nine months ended September 30, 2022 (in thousands): Total Company Balance as of December 31, 2021 $ 166,388 Foreign currency translation and other adjustments 1 (962) Balance as of September 30, 2022 $ 165,426 (1) Other adjustments represent measurement period adjustments to the preliminary purchase price allocation in connection with the Sixense acquisition. Please see Note “5. Business Combinations” for more information. Goodwill Impairment Review The Company reviews goodwill for impairment annually during the fourth quarter or more frequently if events or circumstances indicate that an impairment loss may have occurred. The Company determined there were no impairment indicators as of September 30, 2022.

Debt

Debt	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
Indebtedness	8. Indebtedness Credit Agreement On April 24, 2020, the Company entered into a Credit Agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent and lender, and Bank of America, N.A. and Citibank, N.A. as lenders. The Credit Agreement is secured and provides for up to $100 million in available revolving borrowing capacity with an option, subject to certain conditions, for the Company to increase the aggregate borrowing capacity to up to $150 million, and was set to mature on April 23, 2021. The Company entered into an amended one-year credit agreement with JPMorgan Chase Bank, N.A., as administrative agent and lender, and Bank of America, N.A. and Citibank, N.A. as lenders during the three months ended March 31, 2021, which extended the maturity date from April 23, 2021 to February 21, 2022 and had substantially the same terms and conditions as the prior credit agreement with certain changes including the exclusion of certain one-time charges and expenses incurred during the fiscal quarters ended September 30, 2020 and December 31, 2020 from the calculation of the financial covenants, reductions in interest rate floors applicable to revolving loans and other changes to borrowing mechanics under the Credit Agreement. In the first quarter of 2022, the Company entered into a further amended one-year credit agreement with JPMorgan Chase Bank, N.A., as administrative agent and lender, and Bank of America, N.A. and Citibank, N.A. as lenders. The amended Credit Agreement extended the maturity date from February 21, 2022 to February 17, 2023 and has substantially the same terms and conditions as the prior credit agreement with certain changes to the reference benchmark interest rates, applicable margins and borrowing mechanics under the Credit Agreement, having the overall effect of lowering the interest rates payable by the Company on amounts borrowed under the Credit Agreement, and a reduction of the commitment fee payable on the average daily unused amount under the Credit Agreement to 0.25% per annum. The Credit Agreement requires the Company to maintain a minimum fixed charge coverage ratio and to not exceed a maximum leverage ratio. As of September 30, 2022, the Company was in compliance with these requirements. As of September 30, 2022 and December 31, 2021, there were no borrowings outstanding under the amended Credit Agreement.

Leases

Leases	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Leases	9. Leases Lease Overview As of December 31, 2021 and September 30, 2022, the Company’s contracts that contained a lease consisted of real estate, equipment and vehicle leases. The Company leases real estate for office and warehouse space under non-cancelable operating and finance leases that expire at various dates through 2036, subject to the Company’s option to renew certain leases for an additional five The following table presents the components of the Company’s lease cost, lease term and discount rate during the three and nine months ended September 30, 2022 and 2021 (in thousands, except years and percentages): Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Lease Cost Operating lease cost $ 5,132 $ 3,586 $ 15,048 $ 7,465 Finance lease cost: Amortization of right-of-use assets 815 776 2,431 2,283 Interest on lease liabilities 360 376 1,083 1,120 Variable lease cost (1) 2,541 1,601 7,472 4,427 Total lease costs $ 8,848 $ 6,339 $ 26,034 $ 15,295 Weighted Average Remaining Lease Term Operating leases 13.6 years 13.4 years Finance leases 11.6 years 12.5 years Weighted Average Discount Rate Operating leases 4.61 % 4.94 % Finance leases 5.30 % 5.31 % (1) Variable lease costs represent payments that are dependent on usage, a rate or index. Variable lease cost primarily relates to common area maintenance charges for the Company’s real estate leases. During the third quarter of 2021, the Company signed a lease for approximately thirteen years for additional space located at 620 Roseville Parkway, Roseville, California (the “620 Roseville Parkway Lease”). Per the terms of the lease, improvements will be constructed and permanently affixed to the property in two phases. The first phase (“Phase 1”) of the 620 Roseville Parkway Lease commenced once the Phase 1 premises were made ready and available for their intended use, which occurred during the first quarter of 2022. The Company determined that the 620 Roseville Parkway Lease is a non-cancelable operating lease which will expire in 2035. Upon completion of the second phase (“Phase 2”) of improvements, the Phase 2 premises will be added to the 620 Roseville Parkway Lease. Phase 2 is not anticipated to be completed in 2022 and has not yet commenced as of September 30, 2022. Additionally, during the nine months ended September 30, 2022, the Company modified existing leases for certain properties that resulted in an increase of right-of-use (“ROU”) assets in exchange for operating leases liabilities. The following table is a schedule, by years, of maturities of the Company's operating and finance lease liabilities as of September 30, 2022 (in thousands): Operating Lease Payments Finance Lease Payments 2022 (excluding the nine months ended September 30, 2022) $ 4,517 $ 806 2023 17,876 3,270 2024 17,764 3,281 2025 17,570 3,209 2026 17,681 2,842 Thereafter 186,184 23,539 Total undiscounted lease payments 261,592 36,947 Less imputed interest (71,278) (9,744) Present value of lease liabilities $ 190,314 $ 27,203 Supplemental cash flow information related to leases during the nine months ended September 30, 2022 and 2021 are as follows (in thousands): Nine Months Ended September 30, 2022 September 30, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 13,017 $ 6,214 Financing cash flows from finance leases $ 1,299 $ 1,056 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 51,495 $ 100,178 Finance leases $ 278 $ 1,113
Leases	9. Leases Lease Overview As of December 31, 2021 and September 30, 2022, the Company’s contracts that contained a lease consisted of real estate, equipment and vehicle leases. The Company leases real estate for office and warehouse space under non-cancelable operating and finance leases that expire at various dates through 2036, subject to the Company’s option to renew certain leases for an additional five The following table presents the components of the Company’s lease cost, lease term and discount rate during the three and nine months ended September 30, 2022 and 2021 (in thousands, except years and percentages): Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Lease Cost Operating lease cost $ 5,132 $ 3,586 $ 15,048 $ 7,465 Finance lease cost: Amortization of right-of-use assets 815 776 2,431 2,283 Interest on lease liabilities 360 376 1,083 1,120 Variable lease cost (1) 2,541 1,601 7,472 4,427 Total lease costs $ 8,848 $ 6,339 $ 26,034 $ 15,295 Weighted Average Remaining Lease Term Operating leases 13.6 years 13.4 years Finance leases 11.6 years 12.5 years Weighted Average Discount Rate Operating leases 4.61 % 4.94 % Finance leases 5.30 % 5.31 % (1) Variable lease costs represent payments that are dependent on usage, a rate or index. Variable lease cost primarily relates to common area maintenance charges for the Company’s real estate leases. During the third quarter of 2021, the Company signed a lease for approximately thirteen years for additional space located at 620 Roseville Parkway, Roseville, California (the “620 Roseville Parkway Lease”). Per the terms of the lease, improvements will be constructed and permanently affixed to the property in two phases. The first phase (“Phase 1”) of the 620 Roseville Parkway Lease commenced once the Phase 1 premises were made ready and available for their intended use, which occurred during the first quarter of 2022. The Company determined that the 620 Roseville Parkway Lease is a non-cancelable operating lease which will expire in 2035. Upon completion of the second phase (“Phase 2”) of improvements, the Phase 2 premises will be added to the 620 Roseville Parkway Lease. Phase 2 is not anticipated to be completed in 2022 and has not yet commenced as of September 30, 2022. Additionally, during the nine months ended September 30, 2022, the Company modified existing leases for certain properties that resulted in an increase of right-of-use (“ROU”) assets in exchange for operating leases liabilities. The following table is a schedule, by years, of maturities of the Company's operating and finance lease liabilities as of September 30, 2022 (in thousands): Operating Lease Payments Finance Lease Payments 2022 (excluding the nine months ended September 30, 2022) $ 4,517 $ 806 2023 17,876 3,270 2024 17,764 3,281 2025 17,570 3,209 2026 17,681 2,842 Thereafter 186,184 23,539 Total undiscounted lease payments 261,592 36,947 Less imputed interest (71,278) (9,744) Present value of lease liabilities $ 190,314 $ 27,203 Supplemental cash flow information related to leases during the nine months ended September 30, 2022 and 2021 are as follows (in thousands): Nine Months Ended September 30, 2022 September 30, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 13,017 $ 6,214 Financing cash flows from finance leases $ 1,299 $ 1,056 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 51,495 $ 100,178 Finance leases $ 278 $ 1,113

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	10. Commitments and Contingencies Royalty Obligations In March 2005, the Company entered into a license agreement that requires the Company to make minimum royalty payments to the licensor on a quarterly basis. In July 2019, the Company amended the license agreement to extend its term for an additional ten years and to increase the required minimum annual royalty payments by $0.2 million. As of both September 30, 2022 and December 31, 2021, the amended license agreement required minimum quarterly royalty payments of $0.3 million. Unless terminated earlier, the term of the amended license agreement shall expire June 30, 2029. In April 2012, the Company entered into an agreement that requires the Company to pay, on a quarterly basis, a 5% royalty on sales of products covered under applicable patents. The first commercial sale of covered products occurred in April 2014. Unless terminated earlier, the royalty term for each applicable product shall continue for fifteen years following the first commercial sale of such patented product, or when the applicable patent covering such product has expired, whichever is sooner. Royalty expense included in cost of revenue for the three months ended September 30, 2022 and 2021 was $0.7 million and $0.6 million, respectively, and for the nine months ended September 30, 2022 and 2021, was $1.9 million and $1.7 million, respectively. Contingencies From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of business. The Company accrues a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. Indemnification The Company enters into standard indemnification arrangements in the ordinary course of business. In many such arrangements, the Company agrees to indemnify, hold harmless, and reimburse the indemnified parties for losses suffered or incurred by the indemnified parties in connection with any trade secret, copyright, patent or other intellectual property infringement claim by any third-party with respect to the Company’s technology. The Company also agrees to indemnify many indemnified parties for product defect and similar claims. The term of these indemnification agreements is generally perpetual. The maximum potential amount of future payments the Company could be required to make under these agreements is not determinable because it involves claims that may be made against the Company in the future, but have not yet been made. The Company has entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of the individual. The Company has not incurred costs to defend lawsuits or settle claims related to these indemnification agreements. No liability associated with any of these indemnification requirements has been recorded to date. Litigation From time to time, the Company is subject to other claims and assessments in the ordinary course of business. The Company is not currently a party to any such litigation matter that, individually or in the aggregate, is expected to have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows.

Stockholder's Equity

Stockholder's Equity	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Stockholder's Equity	11. Stockholders’ Equity Equity Incentive Plans Stock Options Activity of stock options under the Company’s 2005 Stock Plan, 2011 Equity Incentive Plan and Amended and Restated 2014 Equity Incentive Plan (collectively, the "Plans") during the nine months ended September 30, 2022 is set forth below: Number of Shares Weighted-Average Balance at December 31, 2021 1,141,814 $ 27.02 Granted 10,120 197.74 Exercised (253,787) 24.80 Canceled/Forfeited (1,157) 22.04 Balance at September 30, 2022 896,990 29.59 Restricted Stock Units Activity of unvested restricted stock units under the Plans during the nine months ended September 30, 2022 is set forth below: Number of Shares Weighted -Average Unvested at December 31, 2021 409,482 $ 210.41 Granted 198,030 178.81 Released/Vested (108,853) 180.60 Canceled/Forfeited (27,341) 219.69 Unvested at September 30, 2022 471,318 203.48 As of September 30, 2022, 445,152 restricted stock units are expected to vest. Stock-based Compensation The following table sets forth the stock-based compensation expense included in the Company’s condensed consolidated statements of operations for the three and nine months ended September 30, 2022 and 2021 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of revenue $ 1,020 $ 766 $ 2,756 $ 2,107 Research and development 1,385 1,118 4,285 3,368 Sales, general and administrative 7,297 6,019 20,340 18,626 Total $ 9,702 $ 7,903 $ 27,381 $ 24,101 As of September 30, 2022, total unrecognized compensation cost was $73.4 million related to unvested share-based compensation arrangements which is expected to be recognized over a weighted average period of 3.0 years. The total stock-based compensation cost capitalized in inventory was $2.2 million and $1.8 million as of September 30, 2022 and December 31, 2021, respectively.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Accumulated Other Comprehensive (Loss) Income	12. Accumulated Other Comprehensive (Loss) Income Other comprehensive loss consists of two components: unrealized gains or losses on the Company’s available-for-sale marketable investments and gains or losses from foreign currency translation adjustments. Until realized and reported as a component of consolidated net (loss) income, these comprehensive (loss) income items accumulate and are included within accumulated other comprehensive (loss) income. Unrealized gains and losses on the Company’s marketable investments are reclassified from accumulated other comprehensive (loss) income into earnings when realized upon sale, and are determined based on specific identification of securities sold. Gains and losses from the translation of assets and liabilities denominated in non-U.S. dollar functional currencies are included in accumulated other comprehensive (loss) income. The following table summarizes the changes in the accumulated balances during the period and includes information regarding the manner in which the reclassifications out of accumulated other comprehensive (loss) income into earnings affect the Company’s condensed consolidated statements of operations and condensed consolidated statements of comprehensive (loss) income (in thousands): Three Months Ended September 30, 2022 Three Months Ended September 30, 2021 Marketable Currency Translation Total Marketable Currency Translation Total Balance, beginning of the period $ (3,922) $ (6,236) $ (10,158) $ 267 $ 62 $ 329 Other comprehensive (loss) income before reclassifications: Unrealized (loss) — marketable investments (383) — (383) (86) — (86) Foreign currency translation (losses) gains — (2,812) (2,812) — (1,356) (1,356) Income tax effect — expense — — — 20 — 20 Net of tax (383) (2,812) (3,195) (66) (1,356) (1,422) Net current-year other comprehensive (loss) income (383) (2,812) (3,195) (66) (1,356) (1,422) Balance, end of the period $ (4,305) $ (9,048) $ (13,353) $ 201 $ (1,294) $ (1,093) Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 Marketable Currency Translation Total Marketable Currency Translation Total Balance, beginning of the period $ (595) $ (2,035) $ (2,630) $ 647 $ 1,894 $ 2,541 Other comprehensive (loss) income before reclassifications: Unrealized (loss) gain — marketable investments (3,710) — (3,710) (581) — (581) Foreign currency translation gains (losses) — (7,013) (7,013) — (3,188) (3,188) Income tax effect — expense — — — 135 — 135 Net of tax (3,710) (7,013) (10,723) (446) (3,188) (3,634) Net current-year other comprehensive (loss) income (3,710) (7,013) (10,723) (446) (3,188) (3,634) Balance, end of the period $ (4,305) $ (9,048) $ (13,353) $ 201 $ (1,294) $ (1,093)

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	13. Income Taxes The Company’s income tax expense (benefit), deferred tax assets and liabilities, and reserves for unrecognized tax benefits reflect management’s best assessment of estimated current and future taxes to be paid. The Company is subject to income taxes in both the United States and foreign jurisdictions. Significant judgment and estimates are required in determining the consolidated income tax expense. During interim periods, the Company generally utilizes the estimated annual effective tax rate (“AETR”) method which involves the use of forecasted information. Under the AETR method, the provision is calculated by applying the estimated AETR for the full fiscal year to “ordinary” income or loss (pretax income or loss excluding unusual or infrequently occurring discrete items) for the reporting period. Jurisdictions with tax assets for which the Company believes a tax benefit cannot be realized are excluded from the computation of its AETR. However, for the three and nine months ended September 30, 2022, the estimated AETR method yielded unconventional results and would not provide a reliable estimate of income taxes. Therefore, the Company determined that using the discrete effective tax rate method, which involves the use of year-to-date information, would provide a more reliable estimate of income taxes for the current period. The Company’s provision for income taxes for the three months ended September 30, 2022 was $5.3 million, which was primarily due to tax expenses attributable to its worldwide profits during the period, combined with tax deficiencies (shortfalls) expenses from stock-based compensation attributable to its U.S. jurisdiction as a result of stock price fluctuation. The Company’s benefit from income taxes for the three months ended September 30, 2021 was $0.2 million, which was primarily due to tax expenses attributable to its worldwide profits during the period, offset by excess tax benefits from stock-based compensation attributable to its U.S. jurisdiction. The Company’s provision for income taxes for the nine months ended September 30, 2022 was $2.6 million, which was primarily due to tax expenses attributable to its foreign profits during the period, combined with tax deficiencies (shortfalls) expenses from stock-based compensation attributable to its U.S. jurisdiction as a result of stock price fluctuation. The Company’s provision for income taxes for the nine months ended September 30, 2021 was $3.2 million, which was primarily due to tax expenses attributable to its worldwide profits during the period, offset by excess tax benefits from stock-based compensation attributable to its U.S. jurisdiction. The Company’s effective tax rate was 174.8% for the three months ended September 30, 2022, compared to (3.2)% for the three months ended September 30, 2021. The Company’s change in effective tax rate was primarily attributable to large tax expenses over relatively smaller worldwide profits for the three months ended September 30, 2022, when compared to small tax benefits over relatively larger worldwide profits for the three months ended September 30, 2021. The Company’s effective tax rate was (81.7)% for the nine months ended September 30, 2022, compared to 10.5% for the nine months ended September 30, 2021. The Company’s change in effective tax rate was primarily attributable to tax expenses over small worldwide losses for the nine months ended September 30, 2022, when compared to tax expenses over large worldwide profits for the nine months ended September 30, 2021. Significant domestic deferred tax assets (“DTAs”) were generated in recent years, primarily due to excess tax benefits from stock option exercises and vesting of restricted stock units. The Company evaluates all available positive and negative evidence, objective and subjective in nature, in each reporting period to determine if sufficient taxable income will be generated to realize the benefits of its DTAs and, if not, a valuation allowance to reduce the DTAs is recorded. As of September 30, 2022 and 2021, the Company maintains a valuation allowance against its Federal Research and Development Tax Credit and California DTAs as the Company could not conclude at the required more-likely-than-not level of certainty, that the benefit of these tax attributes would be realized prior to expiration.

Net (Loss) Income Attributable

Net (Loss) Income Attributable to Penumbra, Inc.	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
Net (Loss) Income Attributable to Penumbra, Inc.	14. Net (Loss) Income Attributable to Penumbra, Inc. The Company computed basic net (loss) income attributable to Penumbra, Inc. per share based on the weighted average number of shares of common stock outstanding during the period. The Company computed diluted net (loss) income attributable to Penumbra, Inc. per share based on the weighted average number of shares of common stock outstanding plus potentially dilutive common stock equivalents outstanding during the period using the treasury stock method. For the purposes of this calculation, stock options, restricted stock units and stock sold through the Company’s employee stock purchase plan are considered common stock equivalents. A reconciliation of the numerator and denominator used in the calculation of the basic and diluted net (loss) income attributable to Penumbra, Inc. per share is as follows (in thousands, except share and per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Numerator: Net (loss) income attributable to Penumbra, Inc. $ (2,271) $ 8,850 $ (5,879) $ 29,917 Denominator: Weighted average shares used to compute net (loss) income attributable to common stockholders: Basic 37,918,452 36,617,961 37,778,362 36,532,822 Potential dilutive stock-based options and awards — 993,394 — 1,059,273 Diluted 37,918,452 37,611,355 37,778,362 37,592,095 Net (loss) income attributable to Penumbra, Inc. per share: Basic $ (0.06) $ 0.24 $ (0.16) $ 0.82 Diluted $ (0.06) $ 0.24 $ (0.16) $ 0.80 For the three months ended September 30, 2022 and 2021, outstanding stock-based awards of 1.6 million and 6 thousand shares, respectively, and for the nine months ended September 30, 2022 and 2021, outstanding stock-based awards of 1.9 million and 27 thousand shares, respectively, were excluded from the computation of diluted net (loss) income attributable to Penumbra, Inc. per share because their effect would have been anti-dilutive.

Revenues

Revenues	9 Months Ended
	Sep. 30, 2022
Revenue from Contract with Customer [Abstract]
Revenues	15. Revenues Revenue Recognition Revenue is recognized in an amount that reflects the consideration the Company expects to be entitled to in exchange for goods or services. All revenue recognized in the condensed consolidated statements of operations is considered to be revenue from contracts with customers. The following table presents the Company’s revenues disaggregated by geography, based on the destination to which the Company ships its products, for the three and nine months ended September 30, 2022 and 2021 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 United States $ 148,819 $ 134,834 $ 434,583 $ 383,306 International 64,859 55,283 191,334 160,273 Total $ 213,678 $ 190,117 $ 625,917 $ 543,579 The following table presents the Company’s revenues disaggregated by product category for the three and nine months ended September 30, 2022 and 2021 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Vascular $ 123,361 $ 105,465 $ 369,712 $ 295,314 Neuro 90,317 84,652 256,205 248,265 Total $ 213,678 $ 190,117 $ 625,917 $ 543,579 China Distribution and Technology Licensing Agreement In December 2020, the Company entered into a distribution and technology licensing arrangement with its existing distribution partner in China. In addition to modifying the Company’s standard distribution agreement with its partner in China, the Company agreed to license the technology for certain products to its partner in China to permit the manufacturing and commercialization of such products in China as well as provide certain regulatory support. During the three months ended March 31, 2022, the Company further amended the distribution agreement and entered into an additional license agreement, pursuant to which the Company agreed to license the technology for additional products to its partner in China on substantially the same terms as the existing license agreement. Apart from the standard distribution agreement, the Company will receive fixed payments upon transferring its distinct licensed technology and providing related regulatory support and royalty payments on the down-stream sale of the licensed products. Performance Obligations Delivery of products - The Company’s contracts with customers typically contain a single performance obligation, delivery of the Company’s products. Satisfaction of that performance obligation occurs when control of the promised goods transfers to the customer, which is generally upon shipment for non-consignment sale agreements and upon utilization for consignment sale agreements. Payment terms - The Company’s payment terms vary by the type and location of our customer. The timing between fulfillment of performance obligations and when payment is due is not significant and does not give rise to financing transactions. The Company did not have any contracts with significant financing components as of September 30, 2022. Product returns - The Company may allow customers to return products purchased at the Company’s discretion. The Company estimates the amount of its product sales that may be returned by its customers and records this estimate as a reduction of revenue in the period in which the related product revenue is recognized. The Company currently estimates product return liabilities using its own historic sales information, trends, industry data, and other relevant data points. Warranties - The Company offers its standard warranty to all customers and it is not available for sale on a standalone basis. The Company’s standard warranty represents its guarantee that its products function as intended, are free from defects, and comply with agreed-upon specifications and quality standards. This assurance does not constitute a service and is not a separate performance obligation. Transaction Price Revenue is recorded at the net sales price, which includes estimates of variable consideration such as product returns utilizing historical return rates, rebates, discounts, and other adjustments to net revenue. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price. When determining if variable consideration should be constrained, management considers whether there are factors that could result in a significant reversal of revenue and the likelihood of a potential reversal. Variable consideration is included in revenue only to the extent that it is probable that a significant reversal of the revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. These estimates are reassessed each reporting period. During the three and nine months ended September 30, 2022, the Company made no material changes in estimates for variable consideration. When the Company performs shipping and handling activities after control of goods is transferred to the customer, they are considered as fulfillment activities, and costs are accrued for when the related revenue is recognized. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenues. Contract liabilities, net The following information summarizes the Company’s contract assets and liabilities, net as of September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 December 31, 2021 Contract liabilities, net $ 9,393 $ 5,671 Contract liabilities represents amounts that the Company has already invoiced and are ultimately expected to be recognized as revenue, but for which not all revenue recognition criteria have been met and is recognized as the associated performance obligations are satisfied. Contract assets for the periods presented primarily represent the difference between the revenue that was recognized based on the relative standalone selling price of the related performance obligations satisfied and the contractual billing terms in the arrangements. Revenue recognized during the three and nine months ended September 30, 2022 relating to contract liabilities as of June 30, 2022 and December 31, 2021 was $9.6 million and $5.7 million, respectively.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation and Consolidation The accompanying condensed consolidated balance sheet as of September 30, 2022, the condensed consolidated statements of operations, the condensed consolidated statements of comprehensive (loss) income, and the condensed consolidated statements of stockholders’ equity for the three and nine months ended September 30, 2022 and 2021, and the condensed consolidated statements of cash flows for the nine months ended September 30, 2022 and 2021 are unaudited. The unaudited condensed consolidated financial statements included herein have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) for interim financial information. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. The condensed consolidated balance sheet data as of December 31, 2021 was derived from the audited financial statements as of that date. The unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to state fairly the Company’s financial position as of September 30, 2022, the results of its operations for the three and nine months ended September 30, 2022 and 2021, the changes in its comprehensive income (loss) and stockholders’ equity for the three and nine months ended September 30, 2022 and 2021, and its cash flows for the nine months ended September 30, 2022 and 2021. The results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022 or for any other future annual or interim period. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and notes thereto for the fiscal year ended December 31, 2021, included in the Company’s Annual Report on Form 10-K. There have been no changes to the Company’s significant accounting policies during the nine months ended September 30, 2022, as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021.
Consolidation	The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates	Use of EstimatesThe preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and equity accounts; disclosure of contingent assets and liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to marketable investments, allowances for credit losses, the amount of variable consideration included in the transaction price, warranty reserve, valuation of inventories, useful lives of property and equipment, intangibles, operating and financing lease right-of-use (“ROU”) assets and liabilities, income taxes, contingent consideration and other contingencies, among others. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other data. Actual results could differ from those estimates.
Segments	Segments The Company determined its operating segment on the same basis that it uses to evaluate its performance internally. The Company has one business activity: the design, development, manufacturing and marketing of innovative medical products, and
Marketable Investments	Marketable InvestmentsThe Company’s marketable investments have been classified and accounted for as available-for-sale.

Investments and Fair Value of_2

Investments and Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Schedule of Marketable Investments	The following table presents the Company’s marketable investments as of September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 Securities with net gains or losses in accumulated other comprehensive income (loss) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance Fair Value U.S. treasury $ 14,477 $ — $ (569) $ — $ 13,908 U.S. agency and government sponsored securities 7,001 — (223) — 6,778 U.S. states and municipalities 28,130 — (679) — 27,451 Corporate bonds 84,280 — (2,834) — 81,446 Total $ 133,888 $ — $ (4,305) $ — $ 129,583 December 31, 2021 Securities with net gains or losses in accumulated other comprehensive income (loss) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance Fair Value Commercial paper $ 20,286 $ — $ (10) $ — $ 20,276 U.S. treasury 14,464 — (77) — 14,387 U.S. agency and government sponsored securities 11,553 1 (19) — 11,535 U.S. states and municipalities 39,436 39 (89) — 39,386 Corporate bonds 110,354 49 (491) — 109,912 Total $ 196,093 $ 89 $ (686) $ — $ 195,496
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value	The following tables present the gross unrealized losses and the fair value for those marketable investments that were in an unrealized loss position for less than twelve months or for twelve months or more as of September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 Less than 12 months 12 months or more Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S. treasury $ 13,908 $ (569) $ — $ — $ 13,908 $ (569) U.S. agency and government sponsored securities 2,866 (129) 3,912 (94) 6,778 (223) U.S. states and municipalities 20,778 (467) 5,803 (212) 26,581 (679) Corporate bonds 65,326 (1,895) 16,120 (939) 81,446 (2,834) Total $ 102,878 $ (3,060) $ 25,835 $ (1,245) $ 128,713 $ (4,305) December 31, 2021 Less than 12 months 12 months or more Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Commercial paper $ 16,977 $ (10) $ — $ — $ 16,977 $ (10) U.S. treasury 14,387 (77) — — 14,387 (77) U.S. agency and government sponsored securities 6,985 (19) — — 6,985 (19) U.S. states and municipalities 21,924 (89) — — 21,924 (89) Corporate bonds 85,513 (491) — — 85,513 (491) Total $ 145,786 $ (686) $ — $ — $ 145,786 $ (686)
Schedule of Contractual Maturities of Marketable Investments	The following table presents the contractual maturities of the Company’s marketable investments as of September 30, 2022 (in thousands): September 30, 2022 Amortized Cost Fair Value Due in less than one year $ 48,276 $ 47,495 Due in one to five years 85,612 82,088 Total $ 133,888 $ 129,583
Schedule of Fair Value of Assets and Liabilities	The following tables set forth the Company’s financial assets measured at fair value by level within the fair value hierarchy as of September 30, 2022 and December 31, 2021 (in thousands): As of September 30, 2022 Level 1 Level 2 Level 3 Fair Value Financial Assets Cash equivalents: Money market funds $ 8,797 $ — $ — $ 8,797 Marketable investments: U.S. treasury 13,908 — — 13,908 U.S. agency and government sponsored securities — 6,778 — 6,778 U.S. states and municipalities — 27,451 — 27,451 Corporate bonds — 81,446 — 81,446 Total $ 22,705 $ 115,675 $ — $ 138,380 As of December 31, 2021 Level 1 Level 2 Level 3 Fair Value Financial Assets Cash equivalents: Money market funds $ 10,509 $ — $ — $ 10,509 Marketable investments: Commercial paper — 20,276 — 20,276 U.S. treasury 14,387 — — 14,387 U.S. agency and government sponsored securities — 11,535 — 11,535 U.S. states and municipalities — 39,386 — 39,386 Corporate bonds — 109,912 — 109,912 Total $ 24,896 $ 181,109 $ — $ 206,005

Balance Sheet Components Balanc

Balance Sheet Components Balance Sheet Components (Tables)	9 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Inventories	The following table shows the components of inventories as of September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 December 31, 2021 Raw materials $ 84,913 $ 68,374 Work in process 29,167 18,678 Finished goods 206,224 176,452 Inventories $ 320,304 $ 263,504
Schedule of Accrued Liabilities	The following table shows the components of accrued liabilities as of September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 December 31, 2021 Payroll and employee-related cost $ 57,310 $ 60,015 Accrued expenses 10,765 12,245 Deferred revenue 9,732 5,671 Other accrued liabilities 23,865 21,865 Total accrued liabilities $ 101,672 $ 99,796
Schedule of Estimated Product Warranty Accrual	The following table shows the changes in the Company’s estimated product warranty accrual, included in accrued liabilities, for the nine months ended September 30, 2022 and twelve months ended December 31, 2021, respectively (in thousands): September 30, 2022 December 31, 2021 Balance at the beginning of the period $ 4,310 $ 2,896 Accruals of warranties issued 1,986 2,973 Settlements of warranty claims (1,129) (1,559) Balance at the end of the period $ 5,167 $ 4,310

Business Combinations (Tables)

Business Combinations (Tables)	9 Months Ended
	Sep. 30, 2022
Business Combination and Asset Acquisition [Abstract]
Schedule of Business Acquisition Consideration Transferred	The following table summarizes the Closing Date fair value of the consideration transferred (in thousands): Fair value of common stock issued (1) $ 174,133 Fair value of replacement stock options (2) 80,693 Consideration for settlement of pre-existing liabilities due to Sixense (3) (3,810) Total purchase price $ 251,016 (1) The fair value of the 661,877 shares of common stock issued as part of consideration transferred was determined based on the acquisition date closing market price of the Company’s common stock of $263.09. (2) Per ASC 805, the replacement of stock options or other share-based payment awards in conjunction with a business combination represents a modification of share-based payment awards that must be accounted for in accordance with ASC 718. As a result of the Company’s obligation to issue replacement awards, a portion of the fair-value-based measure of replacement awards is included in measuring the purchase consideration transferred in the business combination. To determine the portion of the replacement awards that is part of the purchase consideration, the Company measured the fair value of both the replacement awards and the historical awards as of the Closing Date, in accordance with ASC 718. The fair value of the replacement awards, whether vested or unvested, was included in the purchase consideration to the extent that pre-acquisition services had been rendered. The fair value of replacement stock options assumed for which pre-acquisition services were rendered of $80.7 million was allocated to the purchase consideration and $25.8 million was recognized immediately in the post-combination financial statements during the three months ended December 31, 2021, as pre-acquisition services were not rendered but the vesting of all stock options was accelerated in connection with the Merger. (3) In the connection with the Merger, the Company effectively settled pre-existing liabilities due to or on behalf of Sixense.
Schedule of Purchase Price Allocation	The following table presents the allocation of the purchase price, reflecting immaterial measurement period adjustments recorded during the three months ended September 30, 2022 (in thousands): Acquisition-Date Fair Value Estimated Useful Life of Finite-Lived Intangible Assets Tangible assets acquired and (liabilities) assumed: Cash and cash equivalents $ 2,919 Prepaid expenses and other current and non-current assets 1,971 Deferred tax assets 20,678 Deferred tax liabilities (19,398) Accrued liabilities and other current liabilities (1,341) Intangible assets acquired: Developed technology 62,466 8.75 years In-process research and development 20,823 Net assets acquired 88,118 Fair value of subsidiary stock indirectly acquired through the Merger 4,161 Total net assets acquired 92,279 Goodwill 158,737 Total purchase price $ 251,016

Intangible Assets Intangible As

Intangible Assets Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2022
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Schedule of indefinite-lived intangible assets	The following tables present details of the Company’s acquired finite-lived intangible assets as of September 30, 2022 and December 31, 2021 (in thousands, except weighted-average amortization period): As of September 30, 2022 Weighted-Average Amortization Period Gross Carrying Amount Accumulated Amortization Net Finite-lived intangible assets: Developed technology 8.8 years $ 83,289 $ (7,734) $ 75,555 Customer relationships 15.0 years 5,841 (2,044) 3,797 Trade secrets and processes 20.0 years 5,256 (1,248) 4,008 Other 5.0 years 1,506 (1,506) — Total intangible assets 9.6 years $ 95,892 $ (12,532) $ 83,360 As of December 31, 2021 Weighted-Average Gross Carrying Amount Accumulated Amortization Net Finite-lived intangible assets: Developed technology 8.8 years $ 62,466 $ (1,784) $ 60,682 Customer relationships 15.0 years 6,762 (2,029) 4,733 Trade secrets and processes 20.0 years 5,256 (1,051) 4,205 Other 5.0 years 1,744 (1,569) 175 Total intangible assets subject to amortization 9.8 years $ 76,228 $ (6,433) $ 69,795 Indefinite-lived intangible assets: In-process research and development $ 20,823 $ — $ 20,823 Total intangible assets $ 97,051 $ (6,433) $ 90,618
Schedule of finite-lived intangible assets	The following tables present details of the Company’s acquired finite-lived intangible assets as of September 30, 2022 and December 31, 2021 (in thousands, except weighted-average amortization period): As of September 30, 2022 Weighted-Average Amortization Period Gross Carrying Amount Accumulated Amortization Net Finite-lived intangible assets: Developed technology 8.8 years $ 83,289 $ (7,734) $ 75,555 Customer relationships 15.0 years 5,841 (2,044) 3,797 Trade secrets and processes 20.0 years 5,256 (1,248) 4,008 Other 5.0 years 1,506 (1,506) — Total intangible assets 9.6 years $ 95,892 $ (12,532) $ 83,360 As of December 31, 2021 Weighted-Average Gross Carrying Amount Accumulated Amortization Net Finite-lived intangible assets: Developed technology 8.8 years $ 62,466 $ (1,784) $ 60,682 Customer relationships 15.0 years 6,762 (2,029) 4,733 Trade secrets and processes 20.0 years 5,256 (1,051) 4,205 Other 5.0 years 1,744 (1,569) 175 Total intangible assets subject to amortization 9.8 years $ 76,228 $ (6,433) $ 69,795 Indefinite-lived intangible assets: In-process research and development $ 20,823 $ — $ 20,823 Total intangible assets $ 97,051 $ (6,433) $ 90,618
Finite-lived Intangible Assets Amortization Expense	The following table presents the amortization expense recorded related to the Company’s finite-lived intangible assets for the three and nine months ended September 30, 2022 and 2021 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of revenue $ 66 $ 66 $ 197 $ 197 Sales, general and administrative 2,481 207 6,436 633 Total $ 2,547 $ 273 $ 6,633 $ 830

Goodwill Goodwill (Tables)

Goodwill Goodwill (Tables)	9 Months Ended
	Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of goodwill	The following table presents the changes in goodwill during the nine months ended September 30, 2022 (in thousands): Total Company Balance as of December 31, 2021 $ 166,388 Foreign currency translation and other adjustments 1 (962) Balance as of September 30, 2022 $ 165,426 (1) Other adjustments represent measurement period adjustments to the preliminary purchase price allocation in connection with the Sixense acquisition. Please see Note “5. Business Combinations” for more information.

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Lease, Cost	The following table presents the components of the Company’s lease cost, lease term and discount rate during the three and nine months ended September 30, 2022 and 2021 (in thousands, except years and percentages): Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Lease Cost Operating lease cost $ 5,132 $ 3,586 $ 15,048 $ 7,465 Finance lease cost: Amortization of right-of-use assets 815 776 2,431 2,283 Interest on lease liabilities 360 376 1,083 1,120 Variable lease cost (1) 2,541 1,601 7,472 4,427 Total lease costs $ 8,848 $ 6,339 $ 26,034 $ 15,295 Weighted Average Remaining Lease Term Operating leases 13.6 years 13.4 years Finance leases 11.6 years 12.5 years Weighted Average Discount Rate Operating leases 4.61 % 4.94 % Finance leases 5.30 % 5.31 % (1) Variable lease costs represent payments that are dependent on usage, a rate or index. Variable lease cost primarily relates to common area maintenance charges for the Company’s real estate leases.
Lessee, Operating Lease, Liability, Maturity	The following table is a schedule, by years, of maturities of the Company's operating and finance lease liabilities as of September 30, 2022 (in thousands): Operating Lease Payments Finance Lease Payments 2022 (excluding the nine months ended September 30, 2022) $ 4,517 $ 806 2023 17,876 3,270 2024 17,764 3,281 2025 17,570 3,209 2026 17,681 2,842 Thereafter 186,184 23,539 Total undiscounted lease payments 261,592 36,947 Less imputed interest (71,278) (9,744) Present value of lease liabilities $ 190,314 $ 27,203
Finance Lease, Liability, Maturity	The following table is a schedule, by years, of maturities of the Company's operating and finance lease liabilities as of September 30, 2022 (in thousands): Operating Lease Payments Finance Lease Payments 2022 (excluding the nine months ended September 30, 2022) $ 4,517 $ 806 2023 17,876 3,270 2024 17,764 3,281 2025 17,570 3,209 2026 17,681 2,842 Thereafter 186,184 23,539 Total undiscounted lease payments 261,592 36,947 Less imputed interest (71,278) (9,744) Present value of lease liabilities $ 190,314 $ 27,203
Schedule of Supplemental Cash Flow Disclosures	Supplemental cash flow information related to leases during the nine months ended September 30, 2022 and 2021 are as follows (in thousands): Nine Months Ended September 30, 2022 September 30, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 13,017 $ 6,214 Financing cash flows from finance leases $ 1,299 $ 1,056 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 51,495 $ 100,178 Finance leases $ 278 $ 1,113

Stockholder's Equity (Tables)

Stockholder's Equity (Tables)	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Summary of Stock Option Activity	Activity of stock options under the Company’s 2005 Stock Plan, 2011 Equity Incentive Plan and Amended and Restated 2014 Equity Incentive Plan (collectively, the "Plans") during the nine months ended September 30, 2022 is set forth below: Number of Shares Weighted-Average Balance at December 31, 2021 1,141,814 $ 27.02 Granted 10,120 197.74 Exercised (253,787) 24.80 Canceled/Forfeited (1,157) 22.04 Balance at September 30, 2022 896,990 29.59
Summary of Unvested Restricted Stock and Restricted Stock Unit Activity	Activity of unvested restricted stock units under the Plans during the nine months ended September 30, 2022 is set forth below: Number of Shares Weighted -Average Unvested at December 31, 2021 409,482 $ 210.41 Granted 198,030 178.81 Released/Vested (108,853) 180.60 Canceled/Forfeited (27,341) 219.69 Unvested at September 30, 2022 471,318 203.48
Schedule of Stock-based Compensation Expense	The following table sets forth the stock-based compensation expense included in the Company’s condensed consolidated statements of operations for the three and nine months ended September 30, 2022 and 2021 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of revenue $ 1,020 $ 766 $ 2,756 $ 2,107 Research and development 1,385 1,118 4,285 3,368 Sales, general and administrative 7,297 6,019 20,340 18,626 Total $ 9,702 $ 7,903 $ 27,381 $ 24,101

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive (Loss) Income (Tables)	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The following table summarizes the changes in the accumulated balances during the period and includes information regarding the manner in which the reclassifications out of accumulated other comprehensive (loss) income into earnings affect the Company’s condensed consolidated statements of operations and condensed consolidated statements of comprehensive (loss) income (in thousands): Three Months Ended September 30, 2022 Three Months Ended September 30, 2021 Marketable Currency Translation Total Marketable Currency Translation Total Balance, beginning of the period $ (3,922) $ (6,236) $ (10,158) $ 267 $ 62 $ 329 Other comprehensive (loss) income before reclassifications: Unrealized (loss) — marketable investments (383) — (383) (86) — (86) Foreign currency translation (losses) gains — (2,812) (2,812) — (1,356) (1,356) Income tax effect — expense — — — 20 — 20 Net of tax (383) (2,812) (3,195) (66) (1,356) (1,422) Net current-year other comprehensive (loss) income (383) (2,812) (3,195) (66) (1,356) (1,422) Balance, end of the period $ (4,305) $ (9,048) $ (13,353) $ 201 $ (1,294) $ (1,093) Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 Marketable Currency Translation Total Marketable Currency Translation Total Balance, beginning of the period $ (595) $ (2,035) $ (2,630) $ 647 $ 1,894 $ 2,541 Other comprehensive (loss) income before reclassifications: Unrealized (loss) gain — marketable investments (3,710) — (3,710) (581) — (581) Foreign currency translation gains (losses) — (7,013) (7,013) — (3,188) (3,188) Income tax effect — expense — — — 135 — 135 Net of tax (3,710) (7,013) (10,723) (446) (3,188) (3,634) Net current-year other comprehensive (loss) income (3,710) (7,013) (10,723) (446) (3,188) (3,634) Balance, end of the period $ (4,305) $ (9,048) $ (13,353) $ 201 $ (1,294) $ (1,093)

Net (Loss) Income Attributabl_2

Net (Loss) Income Attributable to Penumbra, Inc. (Tables)	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
Reconciliation of the Numerator and Denominator used in the Calculation of the Basic and Diluted Earnings per Share	A reconciliation of the numerator and denominator used in the calculation of the basic and diluted net (loss) income attributable to Penumbra, Inc. per share is as follows (in thousands, except share and per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Numerator: Net (loss) income attributable to Penumbra, Inc. $ (2,271) $ 8,850 $ (5,879) $ 29,917 Denominator: Weighted average shares used to compute net (loss) income attributable to common stockholders: Basic 37,918,452 36,617,961 37,778,362 36,532,822 Potential dilutive stock-based options and awards — 993,394 — 1,059,273 Diluted 37,918,452 37,611,355 37,778,362 37,592,095 Net (loss) income attributable to Penumbra, Inc. per share: Basic $ (0.06) $ 0.24 $ (0.16) $ 0.82 Diluted $ (0.06) $ 0.24 $ (0.16) $ 0.80

Revenues Revenues (Tables)

Revenues Revenues (Tables)	9 Months Ended
	Sep. 30, 2022
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table presents the Company’s revenues disaggregated by geography, based on the destination to which the Company ships its products, for the three and nine months ended September 30, 2022 and 2021 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 United States $ 148,819 $ 134,834 $ 434,583 $ 383,306 International 64,859 55,283 191,334 160,273 Total $ 213,678 $ 190,117 $ 625,917 $ 543,579 The following table presents the Company’s revenues disaggregated by product category for the three and nine months ended September 30, 2022 and 2021 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Vascular $ 123,361 $ 105,465 $ 369,712 $ 295,314 Neuro 90,317 84,652 256,205 248,265 Total $ 213,678 $ 190,117 $ 625,917 $ 543,579
Summary of Contract Assets and Liabilities	The following information summarizes the Company’s contract assets and liabilities, net as of September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 December 31, 2021 Contract liabilities, net $ 9,393 $ 5,671

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Disclosures (Details)	9 Months Ended
	Sep. 30, 2022 activity segment
Accounting Policies [Abstract]
Number of business activities | activity	1
Number of operating segments | segment	1

Investments and Fair Value of_3

Investments and Fair Value of Financial Instruments - Gains and Losses of Marketable Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 133,888	$ 196,093
Gross Unrealized Gains	0	89
Gross Unrealized Losses	(4,305)	(686)
Allowance for Credit Loss	0	0
Fair Value	129,583	195,496
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Amortized Cost		20,286
Gross Unrealized Gains		0
Gross Unrealized Losses		(10)
Allowance for Credit Loss		0
Fair Value		20,276
U.S. treasury
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	14,477	14,464
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(569)	(77)
Allowance for Credit Loss	0	0
Fair Value	13,908	14,387
U.S. agency and government sponsored securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	7,001	11,553
Gross Unrealized Gains	0	1
Gross Unrealized Losses	(223)	(19)
Allowance for Credit Loss	0	0
Fair Value	6,778	11,535
U.S. states and municipalities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	28,130	39,436
Gross Unrealized Gains	0	39
Gross Unrealized Losses	(679)	(89)
Allowance for Credit Loss	0	0
Fair Value	27,451	39,386
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	84,280	110,354
Gross Unrealized Gains	0	49
Gross Unrealized Losses	(2,834)	(491)
Allowance for Credit Loss	0	0
Fair Value	$ 81,446	$ 109,912

Investments and Fair Value of_4

Investments and Fair Value of Financial Instruments - Narrative (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Gross Unrealized Losses	$ (4,305,000)	$ (4,305,000)	$ (686,000)
Allowance for credit loss	$ 0	$ 0

Investments and Fair Value of_5

Investments and Fair Value of Financial Instruments - Marketable Securities in an Unrealized Loss Position (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Less than 12 months: Fair Value	$ 102,878	$ 145,786
Less than 12 months: Gross Unrealized Losses	(3,060)	(686)
12 Months of more: Fair Value	25,835	0
12 months or more: Gross Unrealized Losses	(1,245)	0
Total: Fair Value	128,713	145,786
Total: Gross Unrealized Losses	(4,305)	(686)
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Less than 12 months: Fair Value		16,977
Less than 12 months: Gross Unrealized Losses		(10)
12 Months of more: Fair Value		0
12 months or more: Gross Unrealized Losses		0
Total: Fair Value		16,977
Total: Gross Unrealized Losses		(10)
U.S. treasury
Debt Securities, Available-for-sale [Line Items]
Less than 12 months: Fair Value	13,908	14,387
Less than 12 months: Gross Unrealized Losses	(569)	(77)
12 Months of more: Fair Value	0	0
12 months or more: Gross Unrealized Losses	0	0
Total: Fair Value	13,908	14,387
Total: Gross Unrealized Losses	(569)	(77)
U.S. agency and government sponsored securities
Debt Securities, Available-for-sale [Line Items]
Less than 12 months: Fair Value	2,866	6,985
Less than 12 months: Gross Unrealized Losses	(129)	(19)
12 Months of more: Fair Value	3,912	0
12 months or more: Gross Unrealized Losses	(94)	0
Total: Fair Value	6,778	6,985
Total: Gross Unrealized Losses	(223)	(19)
U.S. states and municipalities
Debt Securities, Available-for-sale [Line Items]
Less than 12 months: Fair Value	20,778	21,924
Less than 12 months: Gross Unrealized Losses	(467)	(89)
12 Months of more: Fair Value	5,803	0
12 months or more: Gross Unrealized Losses	(212)	0
Total: Fair Value	26,581	21,924
Total: Gross Unrealized Losses	(679)	(89)
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Less than 12 months: Fair Value	65,326	85,513
Less than 12 months: Gross Unrealized Losses	(1,895)	(491)
12 Months of more: Fair Value	16,120	0
12 months or more: Gross Unrealized Losses	(939)	0
Total: Fair Value	81,446	85,513
Total: Gross Unrealized Losses	$ (2,834)	$ (491)

Investments and Fair Value of_6

Investments and Fair Value of Financial Instruments - Contractual Maturities of Marketable Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Amortized Cost
Due in less than one year	$ 48,276
Due in one to five years	85,612
Total	133,888	$ 196,093
Fair Value
Due in less than one year	47,495
Due in one to five years	82,088
Total	$ 129,583	$ 195,496

Investments and Fair Value of_7

Investments and Fair Value of Financial Instruments - Financial Assets and Liabilities Measured at Fair Value (Details) - Recurring - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financial Assets
Assets, Fair Value Disclosure	$ 138,380	$ 206,005
Commercial paper
Financial Assets
Marketable investments		20,276
U.S. treasury
Financial Assets
Marketable investments	13,908	14,387
U.S. agency and government sponsored securities
Financial Assets
Marketable investments	6,778	11,535
U.S. states and municipalities
Financial Assets
Marketable investments	27,451	39,386
Corporate bonds
Financial Assets
Marketable investments	81,446	109,912
Money market funds
Financial Assets
Cash equivalents	8,797	10,509
Level 1
Financial Assets
Assets, Fair Value Disclosure	22,705	24,896
Level 1 | Commercial paper
Financial Assets
Marketable investments		0
Level 1 | U.S. treasury
Financial Assets
Marketable investments	13,908	14,387
Level 1 | U.S. agency and government sponsored securities
Financial Assets
Marketable investments	0	0
Level 1 | U.S. states and municipalities
Financial Assets
Marketable investments	0	0
Level 1 | Corporate bonds
Financial Assets
Marketable investments	0	0
Level 1 | Money market funds
Financial Assets
Cash equivalents	8,797	10,509
Level 2
Financial Assets
Assets, Fair Value Disclosure	115,675	181,109
Level 2 | Commercial paper
Financial Assets
Marketable investments		20,276
Level 2 | U.S. treasury
Financial Assets
Marketable investments	0	0
Level 2 | U.S. agency and government sponsored securities
Financial Assets
Marketable investments	6,778	11,535
Level 2 | U.S. states and municipalities
Financial Assets
Marketable investments	27,451	39,386
Level 2 | Corporate bonds
Financial Assets
Marketable investments	81,446	109,912
Level 2 | Money market funds
Financial Assets
Cash equivalents	0	0
Level 3
Financial Assets
Assets, Fair Value Disclosure	0	0
Level 3 | Commercial paper
Financial Assets
Marketable investments		0
Level 3 | U.S. treasury
Financial Assets
Marketable investments	0	0
Level 3 | U.S. agency and government sponsored securities
Financial Assets
Marketable investments	0	0
Level 3 | U.S. states and municipalities
Financial Assets
Marketable investments	0	0
Level 3 | Corporate bonds
Financial Assets
Marketable investments	0	0
Level 3 | Money market funds
Financial Assets
Cash equivalents	$ 0	$ 0

Balance Sheet Components - Inve

Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials	$ 84,913	$ 68,374
Work in process	29,167	18,678
Finished goods	206,224	176,452
Inventories	$ 320,304	$ 263,504

Balance Sheet Components - Accr

Balance Sheet Components - Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Payroll and employee-related cost	$ 57,310	$ 60,015
Accrued expenses	10,765	12,245
Deferred revenue	9,732	5,671
Other accrued liabilities	23,865	21,865
Total accrued liabilities	$ 101,672	$ 99,796

Balance Sheet Components - Prod

Balance Sheet Components - Product Warranty (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Product Warranty, Increase (Decrease) [Roll Forward]
Balance at the beginning of the period	$ 4,310	$ 2,896
Accruals of warranties issued	1,986	2,973
Settlements of warranty claims	(1,129)	(1,559)
Balance at the end of the period	$ 5,167	$ 4,310

Business Combinations - Narrati

Business Combinations - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Oct. 01, 2021	Sep. 30, 2021	Dec. 31, 2019
Business Acquisition [Line Items]
Non-controlling interest		$ 0	$ (6,200)
MVI Health Inc.
Business Acquisition [Line Items]
Ownership interest	50%
Ownership by parent		90%
MVI Health Inc. | Sixense Enterprises Inc.
Business Acquisition [Line Items]
Ownership by noncontrolling owners		10%
MVI Health Inc.
Business Acquisition [Line Items]
Percentage of voting interests acquired				40%
Sixense Enterprises Inc.
Business Acquisition [Line Items]
Fair value of subsidiary stock indirectly acquired through the Merger		$ 4,161
Sixense Enterprises Inc. | MVI Health Inc.
Business Acquisition [Line Items]
Percentage of voting interests acquired		10%

Business Combinations - Schedul

Business Combinations - Schedule of Consideration Transferred (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended
	Oct. 01, 2021	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Business Acquisition, Contingent Consideration [Line Items]
Stock-based compensation expense		$ 9,702	$ 7,903	$ 27,381	$ 24,101
Sixense Enterprises Inc.
Business Acquisition, Contingent Consideration [Line Items]
Consideration for settlement of pre-existing liabilities due to Sixense	$ (3,810)
Purchase price	$ 251,016
Shares issued for acquisition (in shares)	661,877
Business acquisition, share price	$ 263.09
Stock-based compensation expense	$ 25,800
Sixense Enterprises Inc. | Common Stock
Business Acquisition, Contingent Consideration [Line Items]
Fair value of common stock issued	174,133
Sixense Enterprises Inc. | Share-based Payment Arrangement, Option
Business Acquisition, Contingent Consideration [Line Items]
Fair value of replacement stock options	$ 80,693

Business Combinations - Purchas

Business Combinations - Purchase Price Allocation (Details) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended	12 Months Ended
	Oct. 01, 2021	Sep. 30, 2022	Sep. 30, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Goodwill		$ 165,426	$ 165,426	$ 166,388
Estimated Useful Life of Finite-Lived Intangible Assets			9 years 7 months 6 days	9 years 9 months 18 days
Developed Technology Rights
Business Acquisition [Line Items]
Estimated Useful Life of Finite-Lived Intangible Assets		8 years 9 months 18 days	8 years 9 months 18 days	8 years 9 months 18 days
Sixense Enterprises Inc.
Business Acquisition [Line Items]
Cash and cash equivalents	$ 2,919
Prepaid expenses and other current and non-current assets	1,971
Deferred tax assets	20,678
Deferred tax liabilities	(19,398)
Accrued liabilities and other current liabilities	(1,341)
Net assets acquired	88,118
Fair value of subsidiary stock indirectly acquired through the Merger	4,161
Total net assets acquired	92,279
Goodwill	158,737
Total purchase price	251,016
Sixense Enterprises Inc. | In Process Research and Development
Business Acquisition [Line Items]
In-process research and development	20,823
Sixense Enterprises Inc. | Developed Technology Rights
Business Acquisition [Line Items]
Developed technology	$ 62,466
Estimated Useful Life of Finite-Lived Intangible Assets	8 years 9 months

Intangible Assets - Intangible

Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Amortization Period			9 years 7 months 6 days		9 years 9 months 18 days
Finite lived intangible assets: gross carrying amount	$ 95,892		$ 95,892		$ 76,228
Accumulated amortization	(12,532)		(12,532)		(6,433)
Finite lived intangible assets: net	83,360		83,360		69,795
Indefinite-lived intangible assets					20,823
Total intangible assets, gross					97,051
Intangible assets, net	83,360		83,360		$ 90,618
Total amortization of finite lived intangible assets	2,547	$ 273	$ 6,633	$ 830
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Amortization Period			15 years		15 years
Finite lived intangible assets: gross carrying amount	5,841		$ 5,841		$ 6,762
Accumulated amortization	(2,044)		(2,044)		(2,029)
Finite lived intangible assets: net	3,797		$ 3,797		$ 4,733
Trade secrets and processes
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Amortization Period			20 years		20 years
Finite lived intangible assets: gross carrying amount	5,256		$ 5,256		$ 5,256
Accumulated amortization	(1,248)		(1,248)		(1,051)
Finite lived intangible assets: net	4,008		$ 4,008		$ 4,205
Other Intangible Assets
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Amortization Period			5 years		5 years
Finite lived intangible assets: gross carrying amount	1,506		$ 1,506		$ 1,744
Accumulated amortization	(1,506)		(1,506)		(1,569)
Finite lived intangible assets: net	$ 0		$ 0		$ 175
Developed Technology Rights
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Amortization Period	8 years 9 months 18 days		8 years 9 months 18 days		8 years 9 months 18 days
Finite lived intangible assets: gross carrying amount	$ 83,289		$ 83,289		$ 62,466
Accumulated amortization	(7,734)		(7,734)		(1,784)
Finite lived intangible assets: net	75,555		75,555		60,682
Technology Licensing Agreement [Member]
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	20,800		20,800		$ 20,823
Cost of revenue
Finite-Lived Intangible Assets [Line Items]
Total amortization of finite lived intangible assets	66	66	197	197
Sales, general and administrative
Finite-Lived Intangible Assets [Line Items]
Total amortization of finite lived intangible assets	$ 2,481	$ 207	$ 6,436	$ 633

Goodwill (Details)

Goodwill (Details)	9 Months Ended
	Sep. 30, 2022 USD ($)
Goodwill [Roll Forward]
Goodwill	$ 166,388,000
Foreign currency translation and other adjustments	(962,000)
Goodwill	165,426,000
Goodwill impairment	$ 0

Debt (Details)

Debt (Details) - Revolving Credit Facility - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Dec. 31, 2021	Apr. 24, 2020
Line of Credit Facility [Line Items]
Borrowing capacity				$ 100,000,000
Line of credit, increase limit				$ 150,000,000
Borrowings outstanding	$ 0	$ 0	$ 0
Bank Of America And Citibank | Line of Credit
Line of Credit Facility [Line Items]
Debt instrument, term (in years)	1 year	1 year

Leases - Narrative (Details)

Leases - Narrative (Details)	Sep. 30, 2022
Lessee, Lease, Description [Line Items]
Operating lease term, lease not yet commenced	13 years
5 year renewal term
Lessee, Lease, Description [Line Items]
Operating lease, renewal term (in years)	5 years
15 year renewal term
Lessee, Lease, Description [Line Items]
Operating lease, renewal term (in years)	15 years

Leases - Summary of Lease Cost

Leases - Summary of Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Lease Cost
Operating lease cost	$ 5,132	$ 3,586	$ 15,048	$ 7,465
Finance lease cost:
Amortization of right-of-use assets	815	776	2,431	2,283
Interest on lease liabilities	360	376	1,083	1,120
Variable lease cost	2,541	1,601	7,472	4,427
Total lease costs	$ 8,848	$ 6,339	$ 26,034	$ 15,295
Weighted Average Remaining Lease Term
Operating leases	13 years 7 months 6 days	13 years 4 months 24 days	13 years 7 months 6 days	13 years 4 months 24 days
Finance leases	11 years 7 months 6 days	12 years 6 months	11 years 7 months 6 days	12 years 6 months
Weighted Average Discount Rate
Operating leases	4.61%	4.94%	4.61%	4.94%
Finance leases	5.30%	5.31%	5.30%	5.31%

Leases - Schedule of Maturity o

Leases - Schedule of Maturity of Lease Liabilities (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Operating Lease Payments
2022 (excluding the nine months ended September 30, 2022)	$ 4,517
2023	17,876
2024	17,764
2025	17,570
2026	17,681
Thereafter	186,184
Total undiscounted lease payments	261,592
Less imputed interest	(71,278)
Present value of lease liabilities	190,314
Finance Lease Payments
2022 (excluding the nine months ended September 30, 2022)	806
2023	3,270
2024	3,281
2025	3,209
2026	2,842
Thereafter	23,539
Total undiscounted lease payments	36,947
Less imputed interest	(9,744)
Present value of lease liabilities	$ 27,203

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Cash paid for amounts included in the measurement of operating lease liabilities	$ 13,017	$ 6,214
Financing cash flows from finance leases	1,299	1,056
Right-of-use assets obtained in exchange for lease obligations:
Right-of-use assets obtained in exchange for lease obligations	51,495	100,178
Right-of-use assets obtained in exchange for finance lease obligations	$ 278	$ 1,113

Commitments and Contingencies -

Commitments and Contingencies - Royalty Obligations (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended		9 Months Ended
	Jul. 31, 2019	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Cost of revenue
Other Commitments [Line Items]
Royalty expense		$ 0.7	$ 0.6	$ 1.9	$ 1.7
Royalty Agreement, March 2005
Other Commitments [Line Items]
Extended term of agreement	10 years
Increase in minimum annual royalty payments	$ 0.2
Minimum quarterly royalty payments		$ 0.3		$ 0.3
Royalty Agreement, April 2012
Other Commitments [Line Items]
Royalty as a percent of sales				5%
Term of agreement				15 years

Stockholder's Equity - Stock Op

Stockholder's Equity - Stock Option Activity (Details)	9 Months Ended
	Sep. 30, 2022 $ / shares shares
Number of Shares
Beginning balance (in shares) | shares	1,141,814
Options granted (in shares) | shares	10,120
Options exercised (in shares) | shares	(253,787)
Options cancelled (in shares) | shares	(1,157)
Ending balance (in shares) | shares	896,990
Weighted-Average Exercise Price
Beginning balance (in dollars per share) | $ / shares	$ 27.02
Options granted (in dollars per share) | $ / shares	197.74
Options exercised (in dollars per share) | $ / shares	24.80
Options cancelled (in dollars per share) | $ / shares	22.04
Ending balance (in dollars per share) | $ / shares	$ 29.59

Stockholder's Equity - Restrict

Stockholder's Equity - Restricted Stock and Restricted Stock Units Activity (Details) - Restricted stock and restricted stock units	9 Months Ended
	Sep. 30, 2022 $ / shares shares
Number of Shares
Unvested beginning balance (in shares)	409,482
Granted (in shares)	198,030
Vested (in shares)	(108,853)
Canceled/Forfeited (in shares)	(27,341)
Unvested and expected to vest ending balance (in shares)	471,318
Weighted -Average Grant Date Fair Value
Unvested beginning balance (in dollars per share) | $ / shares	$ 210.41
Granted (in dollars per share) | $ / shares	178.81
Vested (in dollars per share) | $ / shares	180.60
Canceled/Forfeited (in dollars per share) | $ / shares	219.69
Unvested and expected to vest ending balance (in dollars per share) | $ / shares	$ 203.48
Restricted stock and RSUs expected to vest (shares)	445,152

Stockholder's Equity - Stock-ba

Stockholder's Equity - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Jun. 30, 2022	Sep. 30, 2022	Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 9,702	$ 7,903		$ 27,381	$ 24,101
Unrecognized compensation cost related to unvested share-based compensation arrangements	73,400			$ 73,400
Unrecognized compensation cost, expected recognition period (in years)				3 years
Share-based compensation expense, capitalized in inventory			$ 1,800	$ 2,200
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	1,020	766		2,756	2,107
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	1,385	1,118		4,285	3,368
Sales, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 7,297	$ 6,019		$ 20,340	$ 18,626

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
Other comprehensive (loss) income before reclassifications:
Total other comprehensive (loss) income, net of tax	$ (3,195)	$ (4,186)	$ (3,342)	$ (1,422)	$ 754	$ (2,966)	$ (10,723)	$ (3,634)
Marketable Investments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(3,922)		(595)	267		647	(595)	647
Other comprehensive (loss) income before reclassifications:
Other comprehensive income before reclassifications	(383)			(86)			(3,710)	(581)
Foreign currency translation (losses) gains	0			0			0	0
Income tax effect — expense	0			20			0	135
Net of tax	(383)			(66)			(3,710)	(446)
Total other comprehensive (loss) income, net of tax	(383)			(66)			(3,710)	(446)
Ending balance	(4,305)	(3,922)		201	267		(4,305)	201
Currency Translation Adjustments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(6,236)		(2,035)	62		1,894	(2,035)	1,894
Other comprehensive (loss) income before reclassifications:
Other comprehensive income before reclassifications	0			0			0	0
Foreign currency translation (losses) gains	2,812			1,356			7,013	3,188
Income tax effect — expense	0			0			0	0
Net of tax	(2,812)			(1,356)			(7,013)	(3,188)
Total other comprehensive (loss) income, net of tax	(2,812)			(1,356)			(7,013)	(3,188)
Ending balance	(9,048)	(6,236)		(1,294)	62		(9,048)	(1,294)
Total
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(10,158)		(2,630)	329		2,541	(2,630)	2,541
Other comprehensive (loss) income before reclassifications:
Other comprehensive income before reclassifications	(383)			(86)			(3,710)	(581)
Foreign currency translation (losses) gains	2,812			1,356			7,013	3,188
Income tax effect — expense	0			20			0	135
Net of tax	(3,195)			(1,422)			(10,723)	(3,634)
Total other comprehensive (loss) income, net of tax	(3,195)	(4,186)	$ (3,342)	(1,422)	754	$ (2,966)	(10,723)	(3,634)
Ending balance	$ (13,353)	$ (10,158)		$ (1,093)	$ 329		$ (13,353)	$ (1,093)

Income Taxes Income Taxes (Deta

Income Taxes Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Provision for (benefit from) income taxes	$ 5,306	$ (249)	$ 2,643	$ 3,196
Effective tax rate	(174.80%)	3.20%	81.70%	10.50%

Net (Loss) Income Attributabl_3

Net (Loss) Income Attributable to Penumbra, Inc. - Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Numerator:
Net (loss) income attributable to Penumbra, Inc.	$ (2,271)	$ 8,850	$ (5,879)	$ 29,917
Weighted average shares used to compute net (loss) income attributable to common stockholders:
Basic (in shares)	37,918,452	36,617,961	37,778,362	36,532,822
Potential dilutive stock-based options and awards (in shares)	0	993,394	0	1,059,273
Diluted (in shares)	37,918,452	37,611,355	37,778,362	37,592,095
Net (loss) income attributable to Penumbra, Inc. per share:
Basic (in dollars per share)	$ (0.06)	$ 0.24	$ (0.16)	$ 0.82
Diluted (in dollars per share)	$ (0.06)	$ 0.24	$ (0.16)	$ 0.80

Net (Loss) Income Attributabl_4

Net (Loss) Income Attributable to Penumbra, Inc. - Antidilutive Securities (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Share [Abstract]
Antidilutive securities excluded from the computation of earnings per share (in shares)	1,600	6	1,900	27

Revenues - Disaggregation of Re

Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	$ 213,678	$ 190,117	$ 625,917	$ 543,579
United States
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	148,819	134,834	434,583	383,306
International
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	64,859	55,283	191,334	160,273
Neuro
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	90,317	84,652	256,205	248,265
Vascular
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	$ 123,361	$ 105,465	$ 369,712	$ 295,314

Revenues - Summary of Contract

Revenues - Summary of Contract Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Contract liabilities, net	$ 9,393	$ 9,600	$ 5,671