PEN - Earnings call transcript Q2 2019

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Operator

Good afternoon. My name is Chantal, and I will be your conference operator today. At this time, I would like to welcome everyone to Penumbra Second Quarter 2019 Conference Call. [Operator Instructions] Thank you.

I would like to introduce Ms. Penumbra. Relations Investor Hamlyn-Harris, Jee Ms. Hamlin Harris, your may begin conference. you

Jee Hamlyn-Harris

of you joining Penumbra's company tables, us you, A release operator, can today's which our for viewed thank and copy XXXX. to quarter discuss Thank includes on the and non-GAAP on all call www.penumbrainc.com. under the the second website press tab GAAP at the release for reconciliation financial earnings be to Investors

safe forward-looking of XXXX, course the conference provisions statements Securities pursuant Private this the our including financial of make the During performance, trials, company Litigation to and compliance commercialization, call, quality, business harbor regarding Act the of clinical will Reform status, trends. regulatory statements

XX, risks differ Actual will our referenced with XXXX. implied those described be the those year our SEC the and as filed with the in December those materially which August X, our or XX-Q certain well ended stated which February uncertainties, XX-K from XXXX, XX, for results June SEC XX, as for on including XXXX, forward-looking could XXXX, by quarter was in to on ended statements the due filed

or periodic we against you a statements, risks may more a we these forward-looking market and reliance to of including of factors the and results XX-Q the price with affect As other on that previously result, review these undue placing mentioned, for SEC, you caution our our our stock. the filings XX-K, encourage and complete future discussion

of posted Kosaraju, presented is certain for to quarter Elsesser, the revise developments are measures on provided otherwise. prepared result new Sridhar events, of updated update CEO, Chairman and financial update; results revenue measures release. and guidance Penumbra or discuss of Penumbra's provide A non-GAAP Adam financial in approximately call disclaims basis. anticipate non-GAAP minutes. a range. any the and a call, this information, duty our our run CFO then reconciliation Strategy, comments a will our and forward-looking as press or our GAAP statements to business On future will We XX head will today's on financial an

I With call the like to to Adam over that, Elsesser. would turn

Adam Elsesser

Good Thank Quarter and for Conference Second joining XXXX Call. Penumbra's Jee. you, you afternoon, thank

for as revenues increase million million compared and constant million, currency. XX.X% second $XXX.X $XX.X had $X.X a period in of total year-over-year quarter the of Our the were for last year. reported the We same operating income XX.X% quarter to in

of growing help XXXX we momentum As continues and to our at half opportunities finished patients. more and first great the business more

stroke has by as significant growth well ischemic revenue market. ability develop to as driven the been market the opportunities our overall and Our within vascular new

today's I on like call, two focus important would to On updates.

United time as first spent could remember we ago, estimated with the last that we on XXX,XXX patients our our launched First, may States discussing treated earnings you When in could we our a number system. that be benefit System from thrombectomy. peripheral Indigo of call, years patients four

address advancements over techniques, United greater Now understanding the Indigo to per we the the has training in the later, System of believe in States. XXX,XXX with with cases and four years and potential variety patients year of

represents patient It a penetrate for interventionally. figure will or take important who to time This be either treated, in improvements the so. surgically with to are currently technology patients will us this body and being number us of future clot opportunity do

stroke. opportunity addressable our easier, addressable possible the in To context the peripheral estimates put the made easier and that patient procedure even in larger is Penumbra, and opportunity as current it opportunity for thrombectomy of this our higher. could grow addition, is patient improves into In is addressable ischemic than

impact our company alone. year each in patients States see ability well together, the over the United million for we to Taken positively X.X

catheter positively to of the United amount huge and in the JET Neuro a provides new dedication of these stroke. engine, as franchise. thrombus phase an force impact Last of States, of the innovation the aspiration blood JET This a gives marked Penumbra remove when X believe the we as our causing The X, available, September, team the and strongest the ENGINE, launched clot many which motivation Penumbra to with paired in Penumbra for possible. removal patients increases confidence ischemic which beginning Penumbra we the quickly stroke. ability

of in the received began of part showcased FLEX It we XTRA less FLEX. feedback are performance. few extremely highly full year. lumen years at stroke is engineering delivering ago, substantially discussing of and, with the advancing catheter this thrombus navigation improves developed has the platform through its and earlier of technology novel technologies a a and later, XTRA JET year market. important series that innovative removal and Society This maintaining tractability, Now the we design, than NeuroInterventional an first the strongest the technology positive therefore, the introduction technology, and of Surgery while was The new called meeting on a force

We can the and innovations, and clear. issues transform are our of now complete removal. aspiration, clot procedure early The this as technology stroke for patients is which ultimately excited subsequent the address treatment, excited and success of about fast a more frontline by importance new critical of even the

also for data, the we challenges multifaceted experience discipline validation in engineering effective engineering Penumbra on validated believe to we has aspiration more our solve to clinical have faster addition take patients. This vision, procedure as these been complicated the We by the to and In that and at motivated needed the order us strong competitors. has challenges. make

and we move field the committed more are We lead to newer as to ideas. advanced forward

the SNIS interest their use treatment. that on view the future through observed were a exploring of populations. teams treat also meeting, the is Physicians of care. we congenital the support we There meeting a of are consistent thrombectomy hospitals of patient stroke broader stroke broad focused our in few systems expanded at and to While optimizing

years these care play improving technology done the role The we system lines, publicly the past represented positive patient that for over important an the SNIS advancements at time demonstrated And the in neuro have first Along feedback work around further lastly, real consistently few can it with stroke country. validated is meeting rehab clear future. the the that specialists we in rehab. in the

We year. share expect later this to plan of commercial our details more

call we Sri, Before the an like months over I ago. would from turn few to story a to patient share extraordinary

home came We have patients. interrupted different. about A many stories is one invasion. and young stroke previously today's day shared home uplifting a But story boy

this the shot behind that unthinkable moment, happened, in head. the At intruder boy from young and by the neck was and

coils, Medical of Penumbra's to arteries feeding [indiscernible] use in the aneurysms. which Dwayne stopped nose. Dr. and his was is blood in arteries boy are The specialized, specifically stop rushed hospital, Anderson, in the PCXXX where Rouge, Louisiana, from Center, to designed carotid as Baton opposed artery and Lake more the neuro the and POD Fortunately, the boys embolization bleeding found flow XXX Our to of Lady traditional very the the

Typically, result. neuro us. of quick very young specialized Dr. coil Anderson all, successful would of this truly These he flow help stories these and the placement of have remarkable at quickly. the blood. are used complete coils, with to adjunct the with all boy stop Dr. out was come this motivate deficit use the of that and our of procedure But a no help procedure skill the Anderson's to tools able

staff the case Anderson We for their Dr. are and for and on of boy. this entire great his grateful work this recovery to young

now Sri the review over financials. the call I'll turn to to

Sri Kosaraju

Adam. you, Thank

currency. XX, For and the XXXX, were XX.X% second revenues quarter constant reported June of XX.X% million, in total $XXX.X ended our an increase

a XX% sales in of business, which mix XX% the to and million an Revenue XX% in and increase and exceptional the and the business quarter, neuro currency geographic Our X.X% ago. Neuro year compared XX% grew XX.X% to In an U.S. quarter in from $XX.X resulted of XXXX, sequential second great we growth across our sales, saw of same respectively. over the constant international. vascular in momentum represented reported first were our quarter. quarter period

Through in year, was neuro for ischemic Penumbra year-over-year of Our first of embolization. difficult comparisons faced our in half system growth neuro by driven the particularly neuro, primarily stroke. sales we the

from from may to year, quarter our the of products we you in of Japan, with fourth as neuro Additionally, peripheral saw vascular. embolization revenue of our recall last launch shifting

the stroke our within dynamics both and seen expectations. growth have We competitive market

half look we the constant second year, FLEX. from an XTRA we to encouraged innovation of ahead vascular Revenue reported currency. and pipeline million of the our of in the and JET the grew by X business are in As to of Penumbra quarter XX.X% back XXXX, our increase XX.X% introduction recent of $XX.X

growth businesses. the was and thrombectomy our from embolization vascular quarter, driven our both results In by

and from new see to continuing new enter introduce are to We accelerated to initiatives customers to technologies new geographies. reach growth

growth year-over-year we year, our the with half see As normalizing rates. but we the into momentum back head expect continue to of

revenues in Our quarter due XX% gross and XX.X% variances. revenue of for was to same lower compared increased mix quarter, margin margin last last Compared to year. production to quarter the favorable our revenues the gross of

we is our margin in encouraged XXXX, we level. do going new this it's in a highest performance to be the yet are which public not quarter, the While gross by been since that expect

Given same expansion Total remain to historical gross we margins or of year million $XX.X was our the our compared for $XX would further within revenue and through to XX.X% expect new operational ago. a or million operating levels. product launches for expense of XX.X% initiatives quarter the year, revenue next quarter

in result in in are actively growth R&D we spend. and discussed, which will our opportunities, our previously As SG&A investing growing

$X.X areas. for development within for research for XXXX. XXXX cost QX expense R&D expenses new million XXXX. and expenses $XX.X development increase SG&A related compared QX were to were $XX.X to in increased to in QX existing $XX.X XXXX compared and programs million million Our both QX an million to due

in increased compensation had primarily for to $XX.X period same operating expense. of spend $X.X million headcount in of the last We year. related due income quarter increases operating to the compared and million income Our

in the current expect our development of invest and areas. growth We new continue the of to in to potential also business

our update to $XXX to $XXX compares million. million. million With revenue guidance range XXXX results, quarter to increasing of range second range the range formally we This in revenue guidance -- of $XXX previous our the new million be $XXX to our are of

like third relates closing back to our typically second to sequentially quarter, now Adam call be we the our for I'd summer expect it seasonality results. to turn to flat quarter revenues see As remarks. the And and to

Adam Elsesser

Thank you, Sri.

for groundwork have Penumbra the story. second a half As we new into move we XXXX, the of of chapter laid the

have and and of in We vascular to current our our sell confidence diseases. produce in market-leading develop, devices areas neuro ability

such have We in applied skills as them honed areas, and rehab. neuro these new also

amazing actual members, well and new key of roles Just who'll management This addition as important, be the our well of the development of the starts committees in leadership and the team with as team. as products, of growth the leadership Board entire over underway our evolution and are at taking we Penumbra. expansive growth as

cases, and have many specific functions, We have strong deep that conviction allow developed that to the we business many come. the our departments in continue five leaders, to skills in layers three can that to growing have scale us in to for years maturity

They on the Our we thriving. challenges. leaders With this next take Penumbra chapter new are embark are story. and capacity, to the on excited additional of

you. the questions. now to call Thank we'll And open

Operator

first of [Operator Instructions] America. Bob Your Bank question with Hopkins from comes

open. line Your is

Bob Hopkins

Okay, great, thanks weighted than more we bit good and to A afternoon. modeled. overall. Great vascular result

neurovascular you So about bit the just understand It a questions a sequentially. of little the the neurovascular QX? couple you flat talk that in was bit quarter little to growth, The QX? in I to I decel relative some dynamics moving to a saw want second of just pieces. make cause neurovascular ask on of Can result year-over-year sure it

Sri Kosaraju

Bob, it's Sure. Sri.

year-over-year embolization context components mentioned, you Stroke, that neuro and neuro three there's franchise. the neuro rate in access. in within that growth So obviously,

most that comments, in resides comp-related issue As we prepared mentioned of neuro our year-over-year embolization. in

ship if If U.S., you to focused the U.S., related highlighted our peripheral on obviously, and QX, outside to stroke we we're pretty embolism the a substantial launch. in you Japan at look look revenues -- in

really just revenues, of overall revenue. it's shifting of So doesn't a where level affect the it but It resides.

And some down. settling of is that

is the embolization. So really focus on comp around neuro really the acute

with good performed franchise two other momentum. The

Bob Hopkins

of uptick XTRA feedback then launch? from the a of could year? about the the in on you're And bit stroke the kind half And -- you an on mention FLEX early just just SNIS that aspiration we curious, back neurovascular little to catheter. look lead to Maybe growth Okay. getting should if talk that as the feedback about perhaps the

Adam Elsesser

Yes, Adam. good question. and a Bob. It's Thanks,

on to alluded customers extraordinary. I As reaction pretty from remarks, been really the has prepared

this to constantly And still. enough that, It's not have of We fair done -- a that number cases field of amount is a that, give obviously, to with with particular you moment is changing forward at reaction standing know, we pretty us evolving. in as back product, this half continue and the confidence have in does universal. we of its of can push this this lot performance. that year, But confidence field time, a the

Bob Hopkins

at you. that. I'll it Great. Thank leave

Adam Elsesser

Thanks lot. a

Operator

comes question Wells next Fargo. Your with from Larry Biegelsen

Your line open. is

Larry Biegelsen

Hey question. thanks the taking guys, for

one on one on So peripheral, neuro.

maybe, more had color indication it just standpoint, what's pretty product So more a in physician Maybe a the a And an follow-up. specialty pretty the driving and it talk Adam, standpoint, what's little on bit was From standpoint, growth balanced can with on there? a color from symbolization a from peripheral? sounds driving I then growth thrombectomy. about, little like extraordinary you

Adam Elsesser

Sure.

peripheral the touch on let's grow embolization part that to side, of it, business, continues nicely. On the

types to able it's about treat but to of a series not traditional to think as embolization cases of I a broader might they coils physicians said, we've As have have other times, used broader is tools. types which think of product, coil we're -- gets and that few start exposure, technology that

that And for think part the so while as grow it's a we sustainable potentially that of business. we

taking thrombectomy the think the they clot we it more physicians On some traditionally idea that to underpenetrated grow and starting And as the about time. exposure sort for just we're just and embraced business down side, think that of simple math broader did more really differently body out, incredibly the than get and can we of in comes we it still. that are to

shape are growth said, there As new the pretty applications, good XXX,XXX, a is and we if think call, without or on that's adding while. for in for potentially I I the areas number

Larry Biegelsen

via your be bit IQ there data? stroke hear from Thanks, stroke, opportunity, OUS declining would it that little then color ischemic I could It's on of perspective quarter? Adam. data U.S. was the on ischemic give a to And I'll you showing obviously, businesses but your in a public months. versus U.S. at you some simple, And -- growth obviously aspiration an thought useful on recent give

Sri Kosaraju

just Sri, of We data them aware know information to of stroke. Larry, They Obviously, there. vary We where out sources lot it's touch type the in that they our from, is are of a they come the survey. that are there results. all. on obviously all

have results. patient of be the more share and our talked we that as pretty I the looking given a guidance X,XXX last and always we three market. about touch is market. and introduced bigger to factor think sensitivity early X,XXX in the close contended to the presence in February, we growth growth the of notion at We've our about thinking When market treated our this the of of years sort patients, year, could that that, a

high consistent through the in That's with that, been. first of our we growth. feel predictions and have what like the been teens year U.S. half that's So expectations the that has And

go year. forward, think be I we as for feel, that the we prediction to continues our

for so for us themselves. As it an relates speak a there populations stroke patients. The to instant vast outside opportunity is to to the U.S., treat

particularly, of expectation as be would wrap other some of forward of outside if great in QX about markets, we we new business the saying, outside It's in back stroke and talked going our A this business. we that got the we U.S. we that quarter, of calls, lot is variability But a entering sort momentum, to would that think feel distributors, the the quite in U.S. lot overall to there that up I the look as back our variability and QX, set all with think strong. I by certainly, I expect you stroke. good. look half some just year,

Larry Biegelsen

for Thanks guys. taking questions the

Sri Kosaraju

much. very Thanks

Operator

comes Mills Genuity. question next from Canaccord Jason with Your

open. line Your is

Jason Mills

you hear Can Sri. me Adam, okay? Hi,

Adam Elsesser

Jason. Hi, Yes.

Jason Mills

relative covered is and stroke, also about the the setup in setup the procedure second in talked half areas the half? half? talked three want second you there. year little growth stroke cover topics then and a the the first gross half the company than Sri, and launch I faced high and afternoon. Adam I to little half. bit the margin. stroke different to Sri, year that, talk that wanted without lot a on thrombectomy. market, those you in in and On FLEX talk what Good a you about of -- different And way, as you first the a juxtapose your comp, first momentum the to for given Could early XTRA a the FLEX sort Adam U.S. of the teens of in and about volume XTRA about bit

to in And Adam, gross thrombectomy part, that volume be give, or phenomenal from with you'd improve Should to new with coming QX? sort respect otherwise but uptake last we expect back here to accounts, growth then I'm drips curious color utilization it, go accounts we on peripheral time? over a at should Or you to of were that increases using doing thrombectomy. the existing level? margin. what versus then it see expect margins, gross XX% to And commented that's increases, the willing

Sri Kosaraju

nail the of I'll Jason, a the and at to ones think into of just can a -- Related I start the number, had as questions, that think to to a your responses you stroke, take couple lot questions it's I other hit the you Adam you Sri. it. there's look and the be head, few neuro think to division of with going I details of in asked. look

neuro we bit. quite I year alluded changed the dramatically as Neuro your half a you half. mentioned, there to back can at in of to, the the you comps modeling look and As are embolization, front changes The own of back of the the comps head the tougher the in year, as half it. quite

of, that that thing we there the today, it's really of specifically is sort that sort if sequentially, of in think which is in the how and have matters, we stroke. growing But business momentum sort business is the about So where issue. the comp-related

We the of again, heading things momentum we've and into said, are the bigger which a that seeing talked half. we momentum, some like we think the with of we continued our as great that results. market, got back to new with also I here, driver And obviously it's feel about

is margins as on margin, for gross company. FLEX sort comment questions. gross on just margin second, have me let JET and Let we highest XTRA the I'll had and this public more peripheral Gross X a Adam catch that of the

be about gross obviously we're not to expectations very that driving around now. margin enthused So that we've right is it the set

that X So signs new we're FLEX. rapidly, growing also, And projects that and in XTRA we but our JET But capacity, really launching current could be as in we're California, truly dynamic will quite the a operations new achieve well. We is that where very in midst in product new encouraging expanding are in that have to of to just we products. launching believe we the in midst Roseville, it. launching Alameda, other growing not the

would as I'll we of Adam that that extremely But So think maybe, questions. share quarter. this think we're period. is on say, sort XX% touch right remaining that this And going I'll the hit encouraged I I the through expectation are let mid-XXs, we we

Adam Elsesser

thanks, Jason. Yes,

the me XTRA the launch on to peripheral fits answer Let FLEX try then briefly sort in, touch and I'll and how it of question.

XTRA launch. the FLEX On

and to to matters as as job constantly team the has new and it's as you but your navigate then the you great want of clot things: want reminding to You team. the field clot in as am field. out possible. of fast get a the able year, number many years, what need the as half facing whole this in to of and first possible, be and sort are be there, extremely done proud a track And of this educating We, and fast to everyone able product So of also be to sort launched of able I ingest catheters you for have know, the Penumbra

going of ball with with And has force. product, the able to most so of even of the that's that the make an also the really sort going the forward to being said, being a of the X, with there's removal end into JET lot engine, to it we half really thrombus line. we original to this able update that product the of feel give more With continue we year. not And navigable to there. momentum That's largest the pushed move ball have catheter come, to part as the out then forward. And more that we'll team the back not last

in So relates our exciting it really to and positive a stroke as we're franchise. phase,

growth coming Now types peripheral thrombectomy treating. on seeing patients around specific peripheral very side, the disease on through come both happen. focused patients that answer is question number when adding And or the really the existing depends many either of are side, the on on type times both. specifically how beyond or or sort accounts, We're of of and and they a where really the they seeing one Council the expand expand accounts that. board, seeing on the It new we're on Boards, of

And accounts beneficiary the as so further by penetration into of deeper as penetration well new existing we're really accounts. both,

Jason Mills

you, Thank both.

Adam Elsesser

Jason. Thanks,

Operator

JPMorgan. next comes line Marcus Robbie question with the Your of from

Your line is open.

Robbie Marcus

thanks Two the Great, for for me. question.

for prepared Adam, forward your years you comment about? a the give into and next Penumbra. products. know moving could the What always of that to? business just excited several why excited the talk you I you're end heard made are And don't I most Maybe, of think of look to about next it's the us you about I've what now. chapter chapters next the guys you First, the guys chapter? recap at But And a you're remarks,

Adam Elsesser

That's to I'm to sort be of a delighted, it. and great question, Rob, able attack

three chapter. have, have make I think, next made areas that -- the really up we So

real franchise catalyst to franchise the those relates of but the both -- around with growth think we for provide And to it the we and that excited a want FLEX incredibly stroke. with never out coming products as currently care future anyone original I about treating for And started we believe because us. the stroke that now products, future ones have not I really well and that other are and confident about First, we patients. our this in as

addressable to is but to it goes into our upcoming will having with to areas. our understanding the new that that the as in continue continue more -- vascular in and technology both our relates very, that the the doing As two developed very newer part is areas incredibly how future well plus of be at and business. extract we're that then you the new that and That's coming growing field, that grow, with the can business, heartening. the confident us technology about be market existing allow professionals broadly our catalysts as trial products it's reaction, reacted finally, neuro And we've when by to for rehab the and will year, look what being viewed and in

catalyst really I provides that it's performs in or the and another and exciting mean yet future. motivating

extraordinary So leaders have people and just said, just when And because maturing take that add feel the going make to up I to good far. product the wanted we up, spot. particularly amazing a it capacity side but as this we're the they really in and like really, into, really Penumbra just the not there highlight, all team, I are that -- you

excited So great we it's about it. particularly time, a feel and

Robbie Marcus

question saw in Thanks. is follow-up in teens. it growth. far, high everyone And stroke better understands We I the so of a market even point growing on but sure last year, terms everybody for looks the from like high lot it teens. a of because just a I And to is want Larry's big before. sticking this make understands just Sri, people think

stand is to teens, growing want you're B, that aspiration, from teens U.S. offset there's we high in the to of maybe willing? more a understand are versus degree of you're net-net, you what international a us saying patients your if sure, share you're to the that, you some by stent and That's high sense the coming a of Part loss market Just retrievers share question. give markets, part growth? where out make shift can

Sri Kosaraju

answer you're parameters to we What this I around of are important to that a looking the that we've some statement the I that's is, best know lot the and -- think can I'll before for Robbie. Sure, this. that unchanged, it make. additional say I think outlined an color and

a predicting. lot what on, there's a sort things than or way changing different are in think discussing, been that's expecting of I questions of we've

market. talk the Let's about

As that that patients, is sort I expectation if on experiencing of while mentioned the X,XXX moment, moving we a foundation along is first U.S., X,XXX is we market the for or and we we of growth focus and that to had the the half, sort that in through that, today. getting the are that growth the continue see stronger, we that believe, around

data We triangulate market be of competition and them some it's our hard that movement trying aspiration saying? -- It's the that think feeling a a phenomenon are instructive. out What and from I very on of consistently a market things obviously as that measure. towards there And experience, know of our mechanism, we're And is point. think, is market all people other they're as are to then there. have have is information obviously, harder say I to that different, different confirmed we our couple to and and one, space sources are that. is information saying? validated I folks and try measure peers in methodologies. their themselves third a And various mentioned, this are the to which of I the to they companies aware in data evaluate of What collect best sources there. all But our

do market this where three grows, competitor of what experienced the are the last the as four anticipated. singular, face more Adam And different that the we've it's tactics beyond terms three one are how more but or forward, are our control. over expectation approach we outlined last as we market in hear of all our about isn't the biggest or thing future. we There years competitors, periods than And strategy mentioned, that in do we'll that competitive things comprehensive you a we have years. in the been from is we've none particular look as It's and launches what Those strategies and another.

very disease, heard be Internationally, more XTRA exciting getting topic like Stroke the of behind just where that's our is the those And global with to is we you've the the some well it. today, South a a achieve opportunity, are. many in it JET growth -- those of a right States, they're nature Europe and outside markets, those those of track are of had, U.S. of X FLEX. we're more just incidents countries think there I and started excited, components of launch in by quarter-by-quarter, We're United much America. much bit a And but there to Asia us. will like on started, significant regions one countries be and for varied or think and just regions, of and getting amount distribution, we're

guess is, you're momentum to consistent. on. quite business and hearing And as net-net this in that is forward, look I confident allow we place we we the enthusiasm in So things have capitalize have are what we us the to

Robbie Marcus

the Thanks for color.

Adam Elsesser

Robbie. Thanks,

Operator

Your Instructions] [ph] next Margaret from question comes Blair. with [Operator William

line Your open. is

Unidentified Analyst

for vascular. taking questions. probably it Good the afternoon, -- my Maybe for it's there guys. couple on leave Thanks first me, I'll

sticky some So metrics not of earlier about full geographic had us you coverage. if sure call terms in guys I'm give the of on talked I guys having had don't? think any not you you development and do can how targeting account market businesses? work, that accounts kind of guys versus developments, any of sense that coverage of or of the have accounts, And that then some new

Sri Kosaraju

us this we your growth some in there us, That's opportunity and in opportunity -- the is business the with touch we've on as the on of Vascular, touch a there's the United coils to sort And can States. going lot on and to in obviously second accounts. of is us for statistic for were sort our the develop new a the geographic you We -- outside right a piece, United predominantly in U.S. the opportunity, quarter I'll equally significant think U.S. first our is opportunity was now. outlined patients States. peripheral an introduced fourth vascular domestic opportunity, XXX,XXX addressable of launch I'll call. let pretty Japan. for on Margaret, we time question take that That of international tell Adam

just future is so many you'll about couple a starting which going. of to in future. those And ago really get for I the -- a of yet, that really think that quarters other us. But that mentioned we're countries remains in opportunity and hear not are we

Adam Elsesser

business it's question Margaret, -- the the maybe it U.S. and relates sticky And is. Yes. sort the to -- how of

throughout coverage penetrated fully but accounts. all we're not the the in have We U.S.,

with. sticky. just And room of there's So education and and a still in it, really answered to they what to that there's and related clot. opportunities the about where clot may sort the more to staff and both to Jason's thought takes time more think I I about. more and physicians times business say we for education typically experience of business, it's now same capacity also, it that's a than in back sticky as areas more been process. they as There penetrate. have many situation. resort have pretty gain I of think underway patients think that their types know take sort But lot on people the to it is time differently I The diseases at more the and every But won't sticky or go of and darn effort years questions, are in to and XXX% training business is we

Unidentified Analyst

Okay.

that had So of the TAM next question, to discussions the you commentary. brings which was some then the at me guys front-end

for which XXX,XXX a from domestic, you I a is XXX,XXX, And took increase that it to think, job. nice really so

assume are done to that to to of those talk about development be work some market that's kind is new changes? DVT maybe in But and a this more receiving the cases? these get and of patients that needs So sort us to addressable development type wasn't channel still Or already intervention? PE. here are those I peripheral are

Adam Elsesser

broader that's really number tried form And so based let today are their that product. I of the think interventional. of for be important answer we with question. either Yes, or on And to a even we that treated work have represents the that clearer. being That our clot our number understand that veins, physicians arteries surgically done some in really me patients

we're done that sort some didn't our product well that has as added surgically of really so the quite think mainline. areas we've treated well. And patients we as But were

of specific experience goal we've able with so to that our patients reason, going product, the we've with more. where that for to we It been add we And future doesn't our patients had that when in and number of which grow don't will it's think in a about areas indication those even sort could patients And just for after. include we the talk have those certainly appropriate.

Unidentified Analyst

Great, thank guys. you

Operator

Wuensch question from Joanne Capital with next comes BMO Markets. Your

Your line is open.

Joanne Wuensch

you're Two update an you Can progressing the cataracts on quick how coronary us everybody. give with and questions. effort? afternoon Good

Adam Elsesser

Sure.

those business. of I is about. in is talked just side the that That our peripheral cataracts things. two numbers So Not just

creating It's So at done data using that patients. to directly just ended and form performing they're adjunct the where than conclusion a device in that, no incredibly more could are that well. issue. in burden. The product be the a of think times, those and And of than clot aspiration the well. And it faster quite is using really, else. is clot for is clot's that's products really seeing who severe many the the physicians which, well the area coming itself in vascular And for helpful situation performing an different have procedure them. limited and that trying power side little it something We the really that type the with least the people the dynamic I patients to for this group much additional itself idea

Joanne Wuensch

you? us there for bring how sort effort idea of that of my Is second give can will rehab your And to a forum that might mean as the to get on you. alluded more an information you in the you Thank "later that? what perimeter question, year." stroke of just we And

Sri Kosaraju

or Yes. expect and mentioned plans Joanne, information the share the outlying previously more strategy. we our product commercial we on to market that

We haven't the be for yet but agenda meeting. announced, specifically to the will venue that that, do We or date. that plan

Joanne Wuensch

thanks. Thank you. Great,

Operator

turn There time. no this the over Hamlyn-Harris, further back questions Ms. I call you. are to at

Jee Hamlyn-Harris

for behalf you you, for us quarter forward and updating all operator. again third thank joining We team, of look you on our On today our to management Thank your Penumbra. call. interest in

Operator

today's This concludes call. conference

disconnect. now may You

Penumbra (PEN) 6 Aug 192019 Q2 Earnings call transcript