PEN - Earnings call transcript Q4 2019

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Operator

[Starts Abruptly] Fourth Quarter and Year-End 2019. A copy of the press release and financial tables, which includes the GAAP to non-GAAP reconciliations can be viewed under the Investors tab on our company website at www.penumbrainc.com.

During the course of this conference call, the company will make forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial performance, commercialization, clinical trials, regulatory status, quality, compliance and business trends. Actual results could differ materially from those stated or implied by our forward-looking statements due to certain risks and uncertainties, including those described in our 10-K for the year-ended December 31, 2019 which is scheduled to be filed with the SEC on February 25, 2020.

As a result, we caution you against placing undue reliance on these forward-looking statements, and we encourage you to review our periodic filings with the SEC, including the 10-K previously mentioned for a more complete discussion of these factors and other risks that may affect our future results or the market price of our stock. to of revise developments new duty as forward-looking or any result a information, disclaims update our or statements otherwise. Penumbra future events,

from a provide prepared of minutes. review Chairman call, fourth basis. year-end our measures business. approximately the posted this certain XX We measures Adam an today's in presented On and followed anticipate call release. the run financial is provided Penumbra's A on and CEO to GAAP a on reconciliation update press non-GAAP comments will financial Elsesser, quarter are by non-GAAP the will of

Yuen, With Maggie and fourth Sri Officer I turn to that, guidance with call then results quarter President our discuss revenue will end would to like our our Financial the Adam Chief Elsesser. Kosaraju, our over financial remarks. and over closing year-end XXXX will and

Adam Elsesser

thank afternoon had call. joining Thank XXXX. fourth and fourth Jee. strong conference a you you, XXXX and Penumbra quarter for finished year-end and Good our quarter

the XXXX revenues reported quarter XXXX. total of were of from the quarter as increase an for XX.X% Our million, fourth $XXX.X fourth of

in year. quarter operating financial income year. standpoint, a to an same period the for had of last From compared $XX.X metric was XXXX $X.X We million exceptional million the

generating Our million XX% was our year represented gross we in revenues even and $XXX.X profit operating greater growth total $XX.X annual over million, the which ended growth were income. of last year, at XX.X%

with strong balance $XXX Our be position in over cash, to a in no sheet million and debt. continues

held those ever our Day, take in several which the success important On helping been on and outlined key around will more our three great first key specific to touch world. made like of a to themes. themes of Investor progress would remain I that and we we X, more we future. towards believe moment XXXX have we mission our Importantly, where December to to patients our

XX launched is products. XXXX, new we innovation. Since have first over The

This has powerful step more for launch getting a innovation technology latest with continued driving every Our technology. ENGINE this Penumbra the with the X significant year. been field. JET FLEX of year is for Last and forward XTRA

confident beyond. addition, cadence launches and In technology and in in upcoming are pipeline XXXX of a strong we new

is We can second in of XXXX. patients help, The markets. the can expanded patient that number help theme we

Within the clearance our gained of vascular business, FDA our for System we or embolism Indigo PE. for pulmonary treatment

can PE, we around of inclusion By Indigo XXX,XXX in that year System. our addressable patient with over the are that the this in a comparison, With we that see ischemic addressable twice there be believe the opportunity United stroke. patients treated States represents

year last system we for expanded latest Additionally, edge within see full-year vast of ischemic launch China stroke, Penumbra our the rest to the world. XXXX technologies neuro bringing of our first our for cutting we in business, opportunities in reach. global our represented the

theme that on The new we third medical or is conditions touched new areas.

to of development the We’re new areas. continually looking pursue

the ongoing an XXXX, example, announced the we to new commercial project a great team work growing REAL future system. physicians to clearance and the matter things is to This of that development This we endeavor development As look growth of to and with and company, care. This do us of for company. potentially it after providers better and a deeply began a system allow bring to been in support Penumbra at for more our multi-year REAL bring an our rehab. FDA and neuro of patients the exciting to last in represented solutions dedicated we has launch example will how millions year

opportunities growth we business As a we than exit broader before. XXXX, have greater with ever

addressable over grow are opportunities upon further that. well in to billion $XX market are we total opportunities pursue and motivated global combined Our to

us the growth. to foundations scales, As are business important focused on for drive we we durable are intently Penumbra’s that believe

my cultivating strategies highly company. of I'd and a business leaders strong to environment, growth. retaining individuals from end developing attracting for and with future a like review within and and the our a cooperative We’re commentary diverse work talented few updates

recent in have revenue half see accelerate XXXX. of in Japan this our trajectory which Sri innovation will reimbursement business confidence have he This headwind as the pipeline our year of for impact, provides describe growth trajectory, and in growth we Despite believe our and we of potential a of with accelerate when our will from for a discussions this the result the back We changes partner. distributor our we XXXX. as into can and guidance our to year,

business, more centers to grow the saw growth be penetration. new we in ability and our This and over several is physicians, In Looking ability for our us be see grow it We vascular patients. our centers, years at new significantly by opportunities procedure to rapidly. exceptional from sequential to both growth embolization franchises. next reach driven quarter, more procedures to continues our thrombectomy vast to treating the specialist and fourth our more

growth this to of Another not our contribute We one business. XXXX important XXXX, products over of vascular plan launch momentum to of thrombectomy we new the launched strong area. middle fourth the and will technology. did good Within growth. new our quarter part and at In the of the believe In in new year, year. business, one the current growth peripheral saw vascular sequential be any two end innovate to neuro our our ability technologies, the these we will technologies in

market estimate to challenging, competitive become recent and Our ability stroke the has unevenness market more thrombectomy given entries.

mechanical were XX,XXX States. approximately estimate Our to latest United patients XXXX with is the XX,XXX thrombectomy in treated that

similar continue number that XXXX. grow absolute will patients in a is market the by of to sense Our

with been to JET most stroke recent relates XTRA technology experience X technology As physician launch our it positive. has with FLEX very

with have a this We in history level trackability. had of our not product

retriever. to last As we allowing from the stent begin earnings of away our product attributes use are to some performance call, move this mentioned in physicians to needing

will our portfolio continuum. growth broadening and care stroke look the into innovate XXXX, along we focus neuro in ahead continuing As thrombectomy strategy to in our on

As to are of continue drive year we new complete United interventional done, stated, and stroke revascularization. transformation critical and to procedures in launch we States the need the address which stroke the have fast will expect a product achieve to this how

recently launched system the also We REAL for

neuro rehabilitation. updates. share a few take to moment to a early want I

At commercial our Investor introduced system in December, addressable we scientific Day the the and technology REAL initial underlying foundation discussed our and market, strategy.

discussions the it Although impressed been early, initial I is providers. very extremely have with with

we virtual Over wireless everyone acute immersive, of our understands mobile weeks, importance over device. completely the that have initial unique XXX foundations hospitals. and scientific combination a within customer we of Almost the care and last had meetings several estimate reality full presence the

great novel neuro that is a enthusiasm see can to There help aftercare. solution patients and

about customers how can interventionalist together settings bring physician helping fit to strategy. administration Our are and and their colleagues care rehab REAL to their into think

Additionally, Denver. meeting weeks we the Physical just two ago, in Association or attended American APTA Therapy

the It reaffirmed therapists patients. straight can United for the we States. the physical the feedback XX novel that over over were had is conference for technology professionals days busy in XX,XXX This for do brought and together, it which about three largest demo stations what

their the we’re clear and As but see this possibilities important patients. still sales for this it that process learning unfold, will providers a is is is great how new cycle,

valuable finance with recently Financial at XX Genetic experience, of Chief the Vice updates. look to we to leadership remarks Maggie further new As to would launch like Officer, I new Division we Yuen. with Maggie team, President introducing Penumbra move is year, executive member my today will over the forward years provide conclude a seasoned the the this Sciences Thermo Fisher of our Scientific. most Finance by of

phase In growth role, Shiu, will work our Chief of is Accounting that her new Maggie a and priorities support focus She and scale. our Officer. internal on closely Sri to great team complement next finance will operations with our will help Lambert and

excited her Maggie, Penumbra. here at are have We to aboard. welcome us with

Maggie Yuen

the thank the first short environment. you, year better at and want Thank few to Sri personal I've about of have enthusiasm national my great Penumbra In On I've company, close positive to been collaborative to sales appointment time, of company the and only a first at and the meet part first to Day, gotten and join our people and future. a moment Penumbra’s meeting a U.S. terrific its family. our note, understanding and many added My Investor take opportunity Adam. months Penumbra my you to for I gone

to the years ahead. I'm next looking several forward

increase While an reported the currency compared $XXX.X of fourth quarter XXXX. XX.X% ended constant in were of December XX, million, XX.X% our total XXXX fourth the revenues quarter and to

U.S. and XX% Our geographic increase to million XX.X% XX% of fourth to respectively. same in constant mix Neuro reported Revenue vascular vascular business XX.X% the of of compared quarter in year. in XX% grew international. represented period of sales an XXXX, or from were the and our last $XX.X quarter sales currency XX% the and

in neuro our year. XX.X% our include and a embolization launch an growth constant period $XX.X the of fourth the ago. peripheral year-over-year last fourth quarter or to compared currency business in grew same sequential product reported the to saw We previously increase our from XX.X% discussed of XXXX, strong quarter in of Japan million the in of comparison Revenue year

by of Penumbra procedural which volumes. our ischemic Our neuro sales growth was primarily for stroke, benefited driven strong system from

$XX.X or gross revenue Our compared last same the was XX.X% XX.X% of $XX.X the of million million quarter quarter for to revenue in profit year. or

year-ago. revenue of expense quarter million for from operating to total XX.X% of compared million, or XX.X% quarter same revenue, $XX.X was $XX Our at the or the

to development $XX.X $XX.X and $XX.X were for for $XX.X million research were XXXX. QX for compared million QX million for XXXX. XXXX expenses million QX XXXX QX Our compared to SG&A expenses

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

$XXX.X reported XX% million full-year of business currency for the $XXX.X Revenue our XX% the reported an from increase XX.X% to revenues currency. of full-year $XXX.X XXXX. currency. full-year XX.X% the an for million constant total the and Revenue XXXX, in in of for neuro in increase our our which vascular million, an was was reported constant and business constant increase were represents and the full-year year XXXX XX.X% compared of XX.X% from For XXXX

to Our revenue gross for of profit full-year revenue, for the XX% the year compared of was XXXX. XX.X%

the income of remarks. cover $XX.X of had the guidance operating to to and to income non-GAAP Sri for closing turn operating million million a $XX full-year to call compared And We I for XXXX. like now comparable

Sri Kosaraju

$XXX our to bring. how introducing in team. you great seeing is for guidance join Thank over positive of for you, last revenue organization It already to million a Maggie. the excited range XXXX and growth year. ways, compliment the we’re am add which impact the full-year our you that XX% we’re in million would XX% to many to I I $XXX to Today, like represents

our product conditions. practice, timing other markets, our initial our in views new past As it's relevant been of our and latest guidance revenue represents introductions,

guidance. revenue initial XXXX, For our significant three consider there factors to are with

is of the first of launch to four XXXX. across including the currently and half to expected vascular The back related the system. new factor impact neuro, are expected REAL have technologies These four in launches positive

second country. and factor and discussions distributor current in is partner to Japan in our relates opportunities future the the our with market market The our guidance dynamics stroke in regarding recent

the came for Penumbra will in the impact changes which Reimbursement System market. current effect into November

reimbursement a for Japan decade background, our ago first with Penumbra almost in the As System system. was established stroke first

has the better ancillary our evolved such need for system devices then, Since fewer as and performance separators. with

physicians devices The longer roughly in separator. XX% level latest a using into data which cases no represents of today's a reimbursement stroke in account and decline recently updated the takes are

need The our declining the for with retrievers, third stent technologies. factor stroke latest is aspiration

our is device revascularisation our it we of a long-term we highlighting, to believe position. XD worth believe trend overall can our this a not benefit and significant portion is have While revenues, market

the half result back in growth growth three The is half which into XXXX. of factors accelerating will in of first XXXX, slower we net by expect continue the followed the of year these

Japan typically grow we to do revenue expect of XX% above we excluding our will business in down the XXXX. break While our components that not continue guidance,

this Penumbra closing, our is the Day At the last Investor foundation has incredible the patient In This time. has over an years next and made markets. progress And in companies opportunities exciting talented December, for impact. patient the shared and long-term phase why several set few detailed next growth of one most leaders Penumbra they of senior phase across healthcare. can make growth our our in distinct compelling

to different not future on we many could within marketing, I tackle It development, company sales, has that stepping up watch our teams many engineering, functions arise overcome challenges that all to within been to as the and hard extremely motivating for have plan. support execute hurdles me cross. seen production, new working functions others

highly result environment people problems. is This the together an of to work incredible where motivated are solve and

impact we Penumbra. millions in Thank to we us unique company And the for will us interest and can today. that allow joining This questions. and patients world is what across for of Penumbra appreciate your in is open can makes the be what you and time future. positively a Operator, families

Operator

comes Jason from line [Operator Genuity. Certainly. first Instructions] ahead. Canaccord of the go question Your Mills Please with

Jason Mills

you folks, me can hear Hi, okay?

Adam Elsesser

Jason. hi, Yes,

Jason Mills

afternoon, good Hi, Adam.

wanted year say let's your could REAL gate how also Sri left through contribution XX% one second at a a of of half? the on I a sort contribution, So model the could you look sort the from Sri, the incremental to And level half And Could progresses? guidance growth within what give as follow-up. like within with concept guidance to the midpoint with off relative we of we maybe then had that, first system we us should couple the the of around, if start this year. questions sense accelerating broad the front, it. of as question understand

Sri Kosaraju

of for revenue contribute, half And I'll bring the with the break what to call, relates launches new couple a it the contributions revenue contribution of new The distinct as it at for sort as streams, of guidance of mentioned impactful year, of and those. Jason, home. typically specific our given products contributions to there's we very that those thanks are the to There the this. they couple don't particularly product going come new full-year out obviously We're many we are back of Yes, REAL. not that them little components in view be just question. will four reiterate things the a on to are

the look the when year. you we've what think of to is our at So if the real impact at it, Delta, will about compared for sort Japan how beginning you the people of guidance typically of maybe introduced

can pretty And as the our and what XXXX can to was And the In lies is I we math you you it that mentioned the I really delta filings stroke. sort and about given, read do of of million. Japanese mostly easy not I to into make business within to understand point new set a And see is. in in that XXXX something to in XXXX, the XX% to entirely reimbursement quantify change means as want accelerating lot go up $XX in the roughly that just one highlighted, we're to back come product XXXX. introductions there's about growth neuro

Jason Mills

you on there's helpful. stroke guess you, thank peripheral on Okay, yet. not panel is That's I Sri. the And then and one follow up, out can thrombectomy, one

that you much new that occurs So thrombectomy, within year? you do Thank in it uptick position launch suppose Adam for you how impact we'll more prior specifically get specific you after the an in peripheral and with indication, that of then to talk at you your this, I embolism questions. like the how this or I market stroke then general. address maybe of instances, pulmonary in to about in will plan when bit market to and your fourth in both on the quarter comes taking beyond launch? out, a sort And guess have but seemed And the product could market both saw later

Sri Kosaraju

and start the Adam I'll maybe will here. on response add Jason, to

I think to the already competitors assess quarter. lot versus of a where we for who folks are the results have December try the announced

currency basis. business for the constant XX.X% a on If the numbers you fourth neurovascular quarter, grew look our at

group the in that think I not of the terms puts results. if high highest, us at neurovascular the of

consistent peers stroke what relates described. it have the I our As it's think to market, also with

the particularly the go a a continue carry to strong that fourth that of we the the year As We we're end December, you pause. to we little the but market in the as of beginning going in we into to recall market bit saw quarter, watch mentioned had third forward. quarter, saw

our I market think in. ask market same relates led a I'll pretty technology, chime and patients. our stroke as year expectations the similar are this we a on the of number how much further maybe to next year absolute on into Adam as as to And it

Adam Elsesser

a to sort give Jason of you Yes, sense.

X results talking remains reaction as tracking FLEX know I the best of are of in current really past, the to the to mean, it's we've said, XTRA been think remarkably JET that said we I'm kind have kind that can a be we've ever not you catheter As we our extraordinary. in the we're had. things And alluded done. and make to to And That really is, as the better. being field there lot customers done strong. even

And then pretty will One come excited confident will to what year. of this those continue we're develop. we're about products

REAL other business including or pride anything have we take vascular positioned the of all the amazing stroke have should and market. not So we’re our from excitement how business of and parts now the the within conversations and we about about the imply away our that the feelings

those both of and have I proven do teams that. can think We our

of our I embolism, relates As your it to the part pulmonary it think simple. pretty other our it's PE question indication, really, around

We’re can have about of pretty opportunity our what our the being That data and the what we do quite described now new that do. until very products series indication or that are haven't after. actively product know and and is we impact will of in procedure, for a and doctors of crisis, who from a patients to that time that said, compelling. on haven't and came people and something emergent product short going PE the will I And can is do. big think alluded thought think will you have to shown openly are about really lot out this with that trial, to as impact. data product The an In the about real cases physicians I talk excited the cases, of we urgent have these

without that any will new competitive or assured lot that can you argument make ones launch make rest that well. going the it And advantage even a fun better. one into But here, be will it point assume of to can that as

Jason Mills

all for Thank you that.

Operator

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

Robbie Marcus

Great, and you you've the Analyst Since out been and what's VR far? the I started with feedback thanks conversations the have taking talking and people, and have with REAL see wanted gotten since gotten for question. Day, to so in started to

Sri Kosaraju

is question. you. setting. acute our this remarks having on current And Yes, had little, we've rehab those prepared a their great over in We It's touched settings. Thank in who do little. them in This the conversations in with XXX a Robbie. I colleagues quantified customers neuro it bring a starting and acute the hospital

I've a in personally will of And for have doing has conversations. understand this gone now been immediately. little over those number our tell conversations you, team a month and been People plus, extraordinarily well. a the this I

a understand see me ahead a patient and that work physicians totally and and that's there's seamless way ahead Our real challenging every is always for out doesn't not that in it patients. these of stroke they turn excuse because some fine after really sometimes

the that But really where in is And mentioned recognize pretty only work get and that in hospital a brain been immersive being which understand I've they the real it colloquial it's setting choice therapists to meeting the tool real quickly. pretty from it that in, coming full somebody in I the excitement do already say the benefit occupational a setting doesn't in use that that but to to really you but the really doing, or word the APTA you Denver, they environment do in the of things Not meetings can't world. in presence can of where physical also rare trip They in they're get themselves. quickly. kind

hasn't give early and So the it. information has there been as more tempered this, we enthusiasm. will the stages around our of something that in you more But unfolds, really year

Robbie Marcus

that. but just can I qualitatively, on it any just question you neuro and you a typically Sri maybe don't growth? but out guidance how the didn't Great path, give I us peripheral to know it maybe on break think color follow-up about hear versus

thinking. models. to which that most talked came in about range people But I still, guidance fully than street even and Japan about think were think baked how into maybe you lower the wasn't

numbers you comfortable confidence you any on that stroke share any can So public to it's side, or to people competitors Thanks. add with just the give just in more give peripheral that, get the becoming us in more color it's, losing would be not color underlying great. could new want on U.S. the

Sri Kosaraju

a volumes have today, that Japan reiterate Yes, something a our optimism we stroke a that's in market to continue growing. for added comments that's are of great, to opportunity business in future, the we great over the lot kind of the

the outside year we impact back of to introduced price business here, of to the Japan. felt and the progression growth launches think about at But are step about you add one what of changes of our what And the take and highlighted if Investor in four growth. in really So XXXX. Day reimbursement and new the talking we the we're talking a about the product ability

our over the in XX% what grows said, the business is guidance We of means rest XXXX.

lot Now, because I also tells set they're Jason’s which those the question a really year. growth that towards accelerating XXXX. we're you of answered weighted in so of XXXX see that timing again We that of in for up launches the in don't the back

from So is XXXX, of weighing isolated on growth. yes, the an Japan perspective

about laid the think of Day XXXX. sort for and you business what if we Investor out the long-term our at of trajectory But

only not even confident we're across that I our track, today's much more to in on think but we ability come say would it in I get there. very should feel call,

Robbie Marcus

thanks. Great,

Operator

from go Your of Hopkins question line America. the next ahead. Bob Please of comes with Bank

Bob Hopkins

first months to a nine preview Day said the I in just you guys I XXXX. want think to didn't grow left this Japan, you thanks. with felt back come and only like think it I to you And certain said would good in because Hi, afternoon. growing it Analyst you X% in guidance degree was I understanding saying, the the

were to Or big in saying from something And learnings Analyst reimbursement Analyst and Day? at terms so the your how cut was? Day of the today change what I misinterpret you the did did just

Adam Elsesser

Bob, it’s Adam.

can. address that to me Let best as I try

our categories to we're at sort in two Japan, now. of relates right So, looking business it as

And I with coils. very category sort Japan. We with our time that long Japan. primarily products for of maybe relationship our our distribute have we in a years, first existing are stroke worked many and a start, coils, The should great products in peripheral they is distributor

particularly but strong, reimbursement those stroke this And remain businesses, issue. for

we've The our remarks, about address and is, recent I in second and category prepared talked we've we something not that this think had conversations.

category Indigo, second continue not system, Japan. yet agreed of aren't sort new And commercialize The we products, is which we've our like with directly. that partner like distribute they'll But new is products interventional non-interventional REAL distributor that will products to those in our approved in Japan. the

there. bit short-term with the opportunities So just have a still really including in that little all, and outlined issues there's around of Japan. notwithstanding nuance products, significant long-term all we expect And the that REAL we in our we reimbursement

Bob Hopkins

I'm stuff sort color. curious but it's and afterwards? picture, after again, Analyst stuff deal I big was kind of happened really of on Day Day the the that's was known happened the felt at that already know that helpful I'm at Day some Japan bigger just not or message Analyst Analyst But kind of I if this because just had I obviously the like and of curious a then well the

Adam Elsesser

the at the commentary mentioned thing it very obviously even well was about change. Day the the of magnitude Analyst used think I same and reimbursement the known we Yes, reimbursement and

sort we from we're call the clarifying And new. So math great think it our that phase today. what I and discussion different that the today how and is in for that's products were And perspective both us I math if in of look our partner it's December, on at is is future next you what ongoing together. obviously on the about different, of the that think that is and

Bob Hopkins

other you about stroke you market ask little your perspective. that a quickly from commentary Okay. patient And the on gave, want just I guidance then XXXX U.S. the to real the in thing appreciate

of for a And do basically do the of terms and you share what's gains? share basically market this, or numbers assume your stable there that on in patients line number you you Just the I grow U.S. to or in assume in want that you share sorry missed provided get with if new but stroke? loss sense is

Sri Kosaraju

see I be like we share is the provided to be market, kind sort getting we of honest that best prior little think precise confident moving, haven’t of we think years I try give to in Yes, about. our feel a view. on to market view But how we our which detail bit of the I harder think

I part, other think we the experience, the out say thing bit think XTRA can and pretty the have there a JET little share known. on X we obviously is for well FLEX I

The share. account, in color. to of more have the our sort But other into on way takes have on beyond, coming those all Bob, the done and XXXX think I and is additional if we technologies measure necessarily provide to that those just in like wait of market to will, years, position, you and we've we'll prior guidance factors we don't try guide to

Bob Hopkins

you this one sorry just for do your assume in last any one. and Okay, sales guidance year, real

Sri Kosaraju

Yes.

unsatisfying So about again, the on sorry to give response components. not you this, breaking an down

people the what we on us. go what had I I'd to we're not cycle we Adam are when characterize expected what, say out to better said, think the to back sales we feedback be It's for better in end, I with to than a lot. we few if our months. this learning first went exercise about Just new it. talking Obviously, a characterize out

sales characterize little right now a is To premature.

get to today. updates provide provided So we’re we visibility, revenue side, And similar planning and to we're qualitative provide that. what is certainly as going on the closer to way to a having discussions the little we more bit that

Bob Hopkins

Okay, thanks so much.

Sri Kosaraju

Thanks Bob.

Operator

go Wells ahead. Larry Fargo. Please Your next question of comes Biegelsen the from with line

Larry Biegelsen

thanks for guys, taking the Hey, question.

past, the share in forward to you've in but XX% understand talk QX Penumbra stroke in the going used the on XX% past, I Now, you being products will stroke about procedures. least at of based talked results

how through XXXX. you as are clinicians that, seeing some XX? X, are conversion to the case a stick So And with is still that or JET to to follow-up ACE customers preferring

Sri Kosaraju

to your very in Yes, think it make And XX%. believe first still part I misinterpret we're XX% just much to question, Larry that today. guidance the on The to we not clear, the of really range.

we business been our we think than where innovation if same on and coming our is it's in pipeline. our I can have be what And better talk how that before. evident confidence the stroke not about

any can better, business. rest the what if on I is and Japan nothing of same guidance the think about ability with of the technology our about and clear, view So not how This the in reimbursement. the just is to prospect we has be do it new purely impact

Adam Elsesser

Larry? And

Larry Biegelsen

Adam. sorry ahead, Go

Adam Elsesser

definitely To we've conversion past, is Larry. a that address personal choice, people continuing. indicated that some balloon different you sticky. pretty physicians it's based know X as sorry And frankly, Yes, catheter tools. are sheets use very on access impact the fits access their in this product, like Neuronmax JET is use question, that conversion what the those There the long will guides, into our choices sort sometimes of various and other tools, like some

be is their and that there current tools again So to them more next, techniques that alluded and which to into fine. may for provide we continue to more techniques. We our this as convert sort as will of physicians continue year reasons, don't for to evolve compelling those modern certain who think I've reconsider reasons

about many our for to talking that aspiration years, conversion And know from well We're were is that technology has you good that. processes years pretty people retrievers we five ago, at and underway. as done converting stent

get products continue remove the as is the and and easier moves which there's case. that evolve to those make to clot, to So track to goal of so faster we frankly room think our

Larry Biegelsen

are the that. with tweaks earlier had or barriers what model? so you've One REAL, business on And the accounts kind the make questions. to for any of about to I the color, taking resonating to for to Thanks adoption REAL is appreciate you there most Thanks spoken what early far?

Adam Elsesser

answer delighted of a these to sort Yes, conversations number I’m been That's I've question. pretty immediate, aha that sort a I've Larry, a The of seen, to really consistently. that of feel it. there's question. get Again, in moment sort layer great of a of a for

was many acute that times the are situation you scientific very can't that from real who is that's understand the makes in way just hospital foundation, conversations this cemented a is After them in different sort what can an patients because This all do moment several had it to take first what to is god, my which the aha setting engage will ago, system oh sort the Their quickly depressed. engage my we patients it is first we simple, if of them, reaction. the The in it in And than resistant they the before they're that days very that event. is very it then therapy, they've start will when just therapists tool is all doing will a world. gauge we sense. that magic and can of see

of really And there sort that So the are any we've pathway our to business is barriers it's us then answer or about answer model? that's typical and seen, reaction or powerful. final that no, the made the The tweak not things or question financial have yet. model

Larry Biegelsen

taking perfect. the Thanks Okay, questions. for

Adam Elsesser

thanks Larry. Yes,

Operator

Kaczor from with Margaret comes Blair. Your William next question

open. is line Your

Unidentified Analyst

that This two wanted question. to and analysts the the first think XXXX. taking I focus correctly have the side through for is peripheral new recall thanks you if peripheral vascular, slated Margaret. Brandon on to launch I products on from Hi, for

new maybe utilization? So products about how with So market most and from you'll used kind as you benefit the do or just accounts, can think think as products, see open new where they think you you help maybe new especially those open are different perhaps drive you them? do opportunities, about think about you Do XXXX? those thinking be new procedures, of sizes can

Sri Kosaraju

a got question, will. you reasons. above way if yet, I which we of all what for products great careful are you competitive it those of revealing look the at to The know, is sort It's without as be really

cover as we're for As side and of both in those, as arterial venous And we side of suite different vascular the well will the are tools and know, of the launch beds. the products slightly end be think beneficial that PE different that will year will you we and the those that mid-year sort

or those we phase. as it of with as close entirety this to the applications can

us make that And the that they we begin compel better. continue that and it it's it macerating products than acute to physicians the the body. they journey continue dissolving cases to think rest easier, beds. various in clot think better, setting just And an blood is vascular all throughout sending we of do help realize faster, can, will or removing we the will We to things think to do will the it throughout will the better that these new

Unidentified Analyst

Got feel meaningful it, the well. focus. pretty we the as less business and And sense embolization it a of a okay. sort peripheral side. is little That makes follow-up of like of I give side kind vascular in thing businesses The

some varying about just I So there? what calls, wide on is medical kind market embolization or high been you conferences level, opportunity your those for maybe use at talk can there even from in the coils. think of a earnings have of

up forward? do in how Where that size are Thanks. today market? left do you you So much penetrating you kind have going market that go and how of to

Adam Elsesser

question. Brandon, Yes, it's good

way. of But yet or patients of in me let it We haven't sort that market quantified cases. this terms address

just defined the detachable So coil a if at market. you look market, that's

the you at If look larger

you tool, coils, of market where reason glues, be can plugs. make a if pushable embolization there all look can we unique any we've any those, where a it's have whether at coils, in and in We gels lot difference that of opportunity tool which is view succeeded, the offerings. products that very foams we detachable used, liquids,

and flow a in our designed we're grow. tend there, amazing in that coils, high not do uniquely products. that stop further think of they're These to down. and products paying have because run not coils very Our I like their companies the look engineers space spent And other time are that continue seeing doing effort, middle the needed products to that or coils softer off is bigger can vessel

quantify as a don't market the think it in we quite do left I So growth in of not the think size we still can there's market. it. same scale a and insignificant it's But as thrombectomy peripheral

Operator

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

Jee Hamlyn-Harris

and first our We our look today on And joining management, for call. you us Penumbra. quarter of with again thank to behalf that, on for updating your you interest forward in

Operator

call. concludes Thank This for conference you joining. today’s

You may now disconnect.

Penumbra (PEN) 25 Feb 202019 Q4 Earnings call transcript