PEN - Earnings call transcript Q1 2024

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Operator

Good afternoon. My name is Ellie, and I will be your conference operator for today. At this time, I would like to welcome everyone to Penumbra's First Quarter 2024 Conference Call. [Operator Instructions] I would like to introduce Ms. Cecilia Furlong, Business Development and Investor Relations for Penumbra. Ms. begin now may you your conference. Furlong,

Cecilia Furlong

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

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

and million result, our affect we on encourage you Penumbra a I As of of the of discussion call, factors including as costs wage to new in XXXX XXXX we or a presented litigation-related disclaims of risks operating undue corresponding in the excludes settlement expense. our developments revise in Penumbra's our a gross filings GAAP measures turn and information, exclude and operating XXXX Strategy, while of adjusted our million more our a of non-GAAP first periodic intangible and Executive adjusted expenses press statements for previously and on And result the these the financial for Adam of review our Non-GAAP reconciliation quarter market compensation quarter SEC, measures Elsesser, $X.X stock our financial provided to associated call results may acquired are then financial against such XXXX. Chairman will Yuen, a XXXX and that, The and discuss basis. caution will will results EBITDA expenses, with on income of are Jason $X.X expenses, to these quarter fees and business operating and litigation-related operating discuss mentioned, of this filed the like placing and company provide forward-looking revenue for with otherwise. and in assets Financial basis, complaints legal or a our GAAP President amortization GAAP future presented that Adam posted EBITDA CEO, release. stock. results would complete the Maggie Officer, first nonrecurring nonrecurring On statements, non-GAAP a to margin over our XX-K forward-looking you future Chief the update events, or are XXXX, of to update. income and against first With including hour Vice the guidance. other reliance and price Mills, of expenses duty Elsesser. any

Adam Elsesser

Penumbra's joining First XXXX Cecilia. Quarter afternoon. for Good Call. you, you Conference Thank Thank

Our total is increase million, were first and revenues reported year-over-year $XXX.X on basis. constant for quarter a the currency a of XX.X% XX.X%

had XX% expectations by International U.S. compared ago market-leading VTE the Flash a This our strong overall thrombectomy million, year quarter, and our same computer-assisted revenue $XXX.X Overall, and to first and gain to in the market XX% to Lightning of start trends XX.X% in growth deliver thrombectomy see and against year-over-year markets challenging strong in positive U.S. thrombectomy comparison Lightning arterial, stroke. we quarter XXXX. our also in XX% with products last a can core driven to portfolio and and we growing growth confidence thrombectomy vacuum XX% to X. XX.X% our the exceeded Our our business grew reinforces and in year year. in strong the share continued Bolt with

In and addition to we profitability. to our commitment expansion increasing on strong focused revenue are growth, also margin

We XXX we gross next points schedule margins to deliver XXX XX% expansion are within and more our in to increase XXXX of of can basis months. XX to than are ahead confident to XX gross the margin

increasing access We in basis inclusive year, the are help initiatives, are in operating our year to and first over growth strong into us at $XX.X also a Operating XXX we X.X% U.S. ago. least future. expansion quarter of sustain on the commercial XXX revenue, track XXX making the investments this to deliver should of which same income points period of basis representing points team margin of market was million, both

health margin to burden expansion few care foreseeable we forward, over for most issues the operating clot Notwithstanding growth the gross in in expect undertreated still of U.S. our seen future. is margin the thrombectomy past have years, significant acute today. expansion outpace Looking we clinically one the strong

and accrues hospital to CAVT, the patients benefit of We strongly safer, to systems. which the and committed are to physicians make these continually positioned well to of patients, access prove are and simpler expand we faster, treatment believe and

both work, of the April on beds and CAVT we products. the deliver CAVT majority launched X.X Lightning adoption markets we million in our platform, and the near-, and continued clot our outcomes clinical strategy X from States X.XX done innovation Flash the to late and robust Over of commercial quarters, United early the evidence developing health CAVT confident over in to cases to have U.S. outsized address we will and continue international the valuation collective through utilization patients vascular fully medium in thrombectomy the year in on we We the team outstanding heels long-term of are delineated a economic April. optimizing drive with With this several revenue applicable of today. in the past catalyze each across growth combination our our

optimizes product Flash the X.X advantages The of we is proving saw further VTE. bench. in CAVT on practice and what the

the developed markets to over we've for this position in team in progress CVT pent-up coupled are X larger us at which the additional X.X, meaningful We're seeing pipeline quarters, commercial strong We growth past on of in is business expect U.S. are within these our catalyze the three XX end thrombectomy demand for and our within to with Flash a beyond. least track year one and before the innovation XXXX. months, we also products to next seeing launch of and continue

to committed utility we continued CAVT innovation reach and the Overall, are toe. to head to of augment

arterial, and and we will in well, through share stroke our a are position. further VTE XX% gain CAVT. the market next and which nearly ahead we vascular more the going will address and U.S. to extend by expect share to encouraged hold now in be We addition very In engagement. physician XXXX, study very is Enrollment with bed stroke THUNDER of leadership launch, outcomes market our Thunderbolt

leader seeking within We care us care their industry are also seeing work as large from energy the systems to ways further more with more stroke extend health and networks. interventional to on engagement patients many to

Our first now over to reputation proprietary to us our do in field scale for financial in I'll portfolio the quarter care call the Maggie with going the gives our and the forward. this to over health systems turn our go XXXX. stroke, technology work of results unique ability

Maggie Yuen

the results I will Thank the Today, of discuss quarter first afternoon, for XXXX. everyone. you, financial Adam. Good

on and margin GAAP operating expenses, a of basis, non-GAAP are GAAP gross are posted while income release. measures are press on As operating adjusted a in financial non-GAAP basis. and provided GAAP a reminder, for call EBITDA The results and reconciliation to measures revenue a on this our corresponding financial

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

of mix for XX.X% sales first geographic XX.X% quarter and XXXX Our U.S., international. the was

franchise. in XX.X% XX%, driven Our thrombectomy growth U.S. our reported of by growth

and declined reflecting and modest Latin in revenue, in our overall Europe, a [indiscernible] Our offset a APAC, by regions X.X%, America. international in thrombectomy access product growth decline embolization Canada

from global currency to last Moving to by million to first the same of compared the $XXX.X increase business in in XX.X% XXXX, XX.X% and products. revenue constant year. quarter grew of reported an period thrombectomy Revenue

last of in X.X% in X% Our U.S. currency, constant driven and international in embolization XXXX, by an access in a year decline million growth CAVT overall $XX and growth of the was our business Revenue of momentum quarter markets. of strong products. reflects and primarily same the international XX.X% from to reported period compared decline XX.X% first

to to compared partially capacity the new gross We was launches improvement, in Turning Gross material driven quarter product margin. and by and offset investment XXXX. product of strong XXXX for XX.X% margin labor productivity, for XX% higher for first by thrombectomy quarter regions cost mix the basis and XXX of point direct across all demand. increases favorable first delivered

to deliver XXX expansion track XXX margin on XXXX. gross are basis We point in to

$XXX.X expense revenue operating the quarter income EBITDA. for quarter of operating or million(sic) non-GAAP our million margin, to adjusted compared or revenue on for ] expenses, operating year. $XXX.X [ was XX.X% of last XX.X% Total and to $XXX.X and non-GAAP the same Now million

and of XXXX With SG&A QX $XXX.X income we research ] of The seasonality of million income expenditures an first for the million(sic) revenue of for $XX XX.X% percentage development XXXX of million revenue year. quarter, QX We million XXXX. same million for Our compared expenditures revenue last expect $XX.X X.X% ] or or compared to expenses XXXX. revenue. the to continued [ our first for expenses $XXX.X $XX.X $XX.X for million $XXX.X were $XXX.X in of were the or higher million million(sic) to operating X.X% revenue XXXX. in a or QX QX as XX% leverage in of operating recorded of period [ quarter SG&A compared

XXXX. adjusted first revenue EBITDA XX.X% improvement margin in throughout million operating to continue last year. quarter XXX of basis to expect XX.X% posted to the of We compared points XXX We $XX.X of total or

cash, an and ended driven in balance flow of no by marketable operating of $XXX.X the to improvements quarter working and increase capital Turning with sheet. profitability million equivalents and turns. cash debt, and first balance security $XX.X We cash million

in positive over flow trends to guidance. call cash operating And expect to like to I'd now continue to XXXX. the our discuss Jason turn We

Jason Mills

revenue timing year team our cadence our U.S. year. X.X first to growth through guidance continued quarter, to primarily to our and of productivity our of Strong launch reinforced you, in expectation orders commentary trends second and Maggie, good expect on revenue the in thrombectomy the earnings forecasted United XX% February, based in be of in half the the product we mid-teens call XX% on then the end year global expect to half distributors of in the launches. range for the international Flash expanded the growth with the afternoon, from provided of high We our Thank from U.S. full the growth total recent XX% we of new XX% first and currently strong Consistent range, to for States, above XXXX. U.S. or accelerate thrombectomy and franchise in momentum XX%, and to respectively, our everybody. commercial Lightning XX%

continue from range now be compared growth thrombectomy year to international on range throughout than expect our and conveyed the growth for be our expect guidance conveyed we call, flat high-single-digit earnings XXXX, stronger to U.S. last in our last to thrombectomy on growth slightly franchise We to in to consistently full to our we mid- strong modest call. year,

the the flat year, and commercial the U.S. product our said, year business from For from to teens for quarter fourth year-over-year the businesses the expect mid-single-digit by and we range larger and full access embolization launches increasing low strengthen our embolization expect U.S. and team. rates productivity throughout and new we internationally. for access international both That to growth growth in

quarter strong we expect year-over-year XXXX. expansion points Lastly, XXX year. basis both operating to XXX to basis in for for point XXX as We and now well margin we the gross in margin XXX expansion continue on our the to operating questions. in basis in guidance to open reiterate margin expansion each Operator, a call and margins as can gross full

Operator

Blair. Margaret William from Your Instructions] comes question [Operator first Kaczor from

Margaret Kaczor

experienced. U.S., and like I wanted optimizing a of both than up maybe bit ask it's frankly, on little the to picking first comments thrombectomy markets, just in the nicely both what some maybe the seems sales team obviously around Yes, stronger, U.S./no we in growth

focused much market it of continuation some regards of Is growth it Where on are it last of market those And with -- on? it much focused you is what metrics how and current around specifically, year? to that what you So it access? you How is investments? geographies? are saw certain of Is the

Jason Mills

of questions, great series a It's Margaret.

me not down and we hire our Let growth, people everyone, have growth, behind philosophically, remind it known to of break that. I think our try typically ahead and

late enough we people, going, we in so them in with at And quarter. them the year have the up for looking CAVT demand a some and first were the brought last year, huge on and didn't we platform. just new added more And got

of the going of -- -- third quarter. people. second, and a wasn't the product really for the fourth So place lot new this the They're quarter forward in now we

the good both Bolt Lightning And we and so the the is laid what really all of them to growth the and do how really experiencing April many about first out X.X year is around quarter driving they are that Flash do just work it. talked quarter Flash them we in trying Obviously, are being people how to last and and started continuing Lightning that and cases. we

first number, obviously. come, to quarter the yet in not that's that's So

Margaret Kaczor

Okay. again. And quarter as to guidance, relates obviously, it a great

bit on more, a that So for push little I'll especially thrombectomy. U.S.

range, comp the You're obviously, on an end high the in quarter. first easier the of

you're token, have that on the But that get these ramp should I up. So investments perspective. from making that same commercial that you

we're see year. expect that bit go on even some -- data if things we market helps there, bit? grow to to shouldn't little we a You're throughout the little maybe also a not entire as going continue the Why accelerating

Jason Mills

Yes, Margaret, question. great it's a

As the our U.S. business. both reflects full account team. into that in momentum a faster reflects this our our and for guidance, our our obviously commercial We've in the year our products start strength and progresses. from the strong And guidance growth reinforces in taken confidence our year already that as quarter's particular thrombectomy guidance current

shape in the year So think I think we're as about unfolds. we pretty how good

Operator

Wuensch from question next comes The from Joanne Citi.

Joanne Wuensch

on you to the throughout you has margins? levers do pull statement, then the Could And And margins. sort a that please or margin, my It to OUS like throughout not sales get and to you focus increased please really. of have remind little do be? you question operating outline just income of expected improve us bit can gross more questions like but why an are have to year? they improving gross there? Two sounds may second look with what

Jason Mills

-- it's The does that's year if as I'll one, can then Jason. first goes Margaret on. the Yes. and take one Joanne, take second escalate typically Adam I'm Maggie and sorry, cadence the the okay. international

being have, just taking example, stroke products We newest are in launched for red our also Europe, there. that,

get of Europe, And that think then expect the of so CAVT they're going cadence you can imagine we will new And to half the -- the portfolio. in in the second improve. we year, to

we've into. the of In addition timing to that, around we about, the have world, visibility pretty as international good orders, talked

why the guidance that's comprehensive reflects guidance for total Maggie? -- year. sort of So cadence the that revenue throughout the

Maggie Yuen

in across terms couple we Yes. mean, scalability mix And frankly, of of areas. product addition margin the continue improvement a the in see focus, the our will G&A side, you last investment the see made of operating to lot and, margin that infrastructure that on gross all to operating SG&A I years, in in

Operator

from Our next Plovanic Canaccord comes question from Bill Fund. Genuity

William Plovanic

of was help that wondering just parse seems versus we ASP I you. my much is you big how market, a been of just a for to understanding if So, this pure this, volume could. you growth a the if versus U.S. I'm VTE much getting over little of year. out it thrombectomy we get granularity, arterial. the have is Because obviously, boost how lot on understand driver questions on more is could trying last then just just And an just ASP driven?

Jason Mills

Yes.

a great I question. think it's

expect continues last think significant continue. we're that see of Flash end would Also, the that of of I arterial adoption. continued it, give If there CAVT to we anniversarying Obviously, our we've price perform now that gains, with business growth about also of range -- really happened color sort and But some the most to we mix launched to as sort our catalyze stroke between the guidance continuing year, side. XXXX. some obviously. given beginning was That and our try share Let products growth, to had to stroke -- well me to last drove and within Bolt of it. on volume, take at Flash strong new that.

business, of the the of as price and gain. continues reflective It's adoption business share all growth we catalyze both to really course, almost market in isn't this number. some So is and, and new really grow

William Plovanic

just it $X.X backed million, if could, And you out. Great. on I litigation expense, the

Just I for is nature? going occur that in litigation. quarters? onetime curious kind of it's don't it Or know that of Is ongoing a what to more was. couple if

Just any help we for that. be us to should understand and thinking how about

Jason Mills

It's Sure. a great question.

laws. and strongly have California, we like every make California hour those As manufacture general you we know, California. wage has private that an which in aspect very We has products additional run can of and our attorney action, of believe a complicated. here technical sometimes state products all quickly those matter is we captures claims follow a most. the our this a things move to settled and and all, the on it we pretty making this that scale, were doing for settlement and some rules. can There violations onetime the

Operator

Robbie from comes question Next from Marcus JPMorgan.

Robert Marcus

good in trends talk quarter. Maybe How destocking to just Embo stocking, think growth forward? of could the And underlying about nuances seeing? the Maybe thrombectomy you some Access to different moving there trends? the products and weaker. you're was start, to the just how versus much is in between really

Adam Elsesser

we've what's to have neuroaxis. growth And That's particularly thrombectomy. -- in business where focus U.S., going both our of. Obviously, broke our very think it's our the appreciate everyone you business. and accurately we're proud you forward. to our sort know, is growth I know Yes. market-leading is something of that we is embo out in agrees the Robbie, said, differently, that be the so view Adam. valuing But driving what be question. the I products that we is peripheral could moving people much going numbers obviously, and Obviously, the what's as what's driving

be that markets called as over in time. access they we down on would certain product for the business changed our us embo and in with addition, where financially leaving call we QX, international markets In and out viable weren't specifically moved reimbursements

that of That's sort forward. said we going So what happened.

way did commercial in also well this Midway, expect larger we to the as move beginning one progresses things a We today, we We U.S. our of new prepared new thrombectomy thrombectomy we'll particularly year access just the quarter. is to proud the And business side, and the the neuro scale and the see in with have with Jason's capacity remember, we'll and remarks teams focus tool has business that as are say just our embo gone. access of multiple on some at the which as had launches. on growth

So It's the an strong. the going business outsized thing will. way just not business be drives thrombectomy to like the growth is our that in

Robert Marcus

Great. Maybe extra. just one

As how really trends about think do the like the to neuro some quarters, way had two? thrombectomy, about thrombectomy and U.S. we underlying is in size now peripheral? which, of any good versus think OUS said, I we there And

Adam Elsesser

the various that. the bigger within course, with really, of about of that Obviously, the and well. on vascular our arterial The take pleasantly do now adoption with beds X.X, the came stroke did also obviously, numbers, well. side really share were as catalyze continuing look thrombectomy. launch will in veinous if and, And Flash. with at grows We continue market talking we U.S. You're surprised. side to is growth Yes, VTE you from

business is that I I now now having was which has to question there, grow. we stroke out within quarters stroke answered earlier sort where our pretty significant the that range continued of think multiple our another just put growth

excited people and that is setup Thunderbolt. about share. will as as still that nice a a think And market, of of continue more lot I more get Some that

Operator

Next question Wells Biegelsenn Larry from Fargo. comes from

Larry Biegelsen

sales year. devices on reimbursement. counting next has growth issue of drive internationally, And you're the Adam, peripheral So international been, to

that next revenue? reimbursement that So points provide the what place can that drive in proof confidence year give will to be us you

Adam Elsesser

I appreciate question. Yes. the

Let -- counting me if not to our I I without international inappropriate, being drive we're -- -- on growth.

and I our is U.S. think growth. drive thrombectomy say business over to is I've over our to going tried what that

just question. last I the even said it in think I

reaction of of just very So that growth, not many physicians, catalyze but going larger we're is at with certain we're it it obviously, just many, I because year, conversations that. once but adoption will having, the growth less it International is The forward. slower drive in won't but we this is having place. And but not as said, -- our be to a the what the wrong to going in of continue not centerpiece certain have years, you adds our context just is to very, that, -- is markets, slightly term, say what will all the for reimbursement encouraging. countries will already be

start difference go but a public have on the won't where between and systems we public, private as to private fast. can side, Some come

future. that's many in look business. of we But out in account All being think we thrombectomy have the I many, of as driven taken growth our into years U.S.

Larry Biegelsen

helpful. That's Okay.

expect you my Adam, XXXX. encouraging on enrollment? completion? endpoint think, and think you I which the for latest What's when accurate, Is think, March Just follow-up, complete outcomes, looked says, the said. on I on I to Thunder, primary last made enrollment time I you comments clintrials.gov

Adam Elsesser

that I've to think Well, on I trial. know this you too be particularly predictive learned my Larry, lesson

leave the We've we'll it. right a Needless excitement we're say, lot and It's were a seen of progressing. of about clinicaltrials.gov to excited discussion -- lot engagement, So obviously, now. it. about is

it for is we'll leave exact the way I timing so now. the And think

Operator

Matthew Piper next from O'Brien comes from Sandler. Our question

Matthew O'Brien

looking but aftermarket a pretty and thrombectomy basis. like most rest in assuming the the people are seems for bit. in comps, a look of thinking the Even good. guide Just down the accelerating bit access X-year at little stock does how trading it stack like the I'm little tougher might it's at the that just that is on be is risk given embo business a the U.S. the year

right what bit from kick don't It you're those then in force, little away. existing a sales of accounts? perspective, expanded takes a And time. combination going new in this seeing customer typically So deeper of just the folks

the for what the as last quarters all the year acceleration back those the tougher just as you're of -- in can us to or in see combination half sorry, this a comps really X on of you get So the things, U.S. just business? sense counting give

Adam Elsesser

Yes. I appreciate really question. that

Just We guidance lot and lot sort both level so out specifics. where we the call, a can on we QX in the laid this set. addressed call comprehensively, a of very more

orders orders. main a visibility on And rates, our the you had grow. in know, the know international going our of we timing we and lot is around with and difference that's partners As U.S. said business the how together those their we work of that already see distributor thrombectomy to with

lot a rates, have and not they're dramatically that around those said more We've those changing We predictability now rates throughout year. the twice.

So talked it call was what last we in really out rate change overall the came on again, company said. And based and down the exactly quarter's turned focus about to on something we it be be the for in happening guide rest obtained of that have year. confident the the rest of because what best through is the our from we is what secure relatively partners U.S. distributor should the

Matthew O'Brien

going going this one general in a part of that. accustomed Okay. what that Is should at and different Penumbra? with the one any least of just that specifically. potentially then, that product Appreciate coming mentioned to be into we're we that's anatomy than thoughts And from on new Or products are end expect Adam, kind CAVT of the by these to year. a you

Adam Elsesser

for competitive to give I going at can't Well, you. specifics tell get stage this But wait not more field, as we're and we God, to the closer reasons. of I'm

fun. So be going awful please of be patient. lot It's to an

Operator

Jefferies. from Sarcone Mike from comes question next The

Michael Sarcone

you give quarter? as U.S. market, the for kind color viewing in can you us what on VTE -- of Just do you're the to any market start, think growth

Adam Elsesser

It's at that's piece see historically to market growth, their centers have business for than patients i.e., grown. always and really been that other out had that they've hard looking new And XXX% we true. of

for growth have continued We seen years now. several

particularly growth wonderful share, Flash VTE, X.X. and that quarter year even continues. that's is really before this also -- seen, that in Obviously, we've market some was growth which So this

shift to some and significant it's some of of quarter or market said as remarks going as we'll the be in prepared well effect share see real growth I that. finish significant adoption to So initiatives. we catalyzing think wait next a the as combination, of But

Michael Sarcone

follow-up. And just a

kind work And hospital about think market I the and CAVT them you hand-in-hand to previously with update give how benefit in some You've customers progressing? elucidate you been different are Do data vascular talking your of a on efforts. with can you working lot access those get mentioned think of us beds. any efforts of to

Adam Elsesser

specific that of and as get that to in of for understand see want and systems care. understand effect first talk treating doing not work they've doing most conversations it. not downside be we'll do the positive allows to I understand And we're that the going I'm of it. yet. then clinically They been it. into really these of go not and we benefit significant clot to, obvious the work can burden reasons, the And one about work I on it. issues little the the will over tell They community openly. more lot the a it the There's one that important which is think people anything, is really I in undertreated started I'm think to patients what optimistic. more a acute I understanding topics, doing. than of hospital health importantly is of more But you They the cost for understand not we're treating as

this quarter I've -- -- optimistic. I'm more another in So personally of I'm And very optimistic. been very, a involved those bunch conversations.

Operator

from comes question next from Truist. The Richard Newitter

Unknown Analyst

It's Sam for on Rich.

if but you XX% kind those I XQ, range thrombectomy? still we U.S. said XQ XX% through that holding of demand, U.S. Can for through in year. before apologies guess [ about within missed on in plug within had to XX% I the numbers this, that I the growth and think thrombectomy just for year this First ] expect one thrombec you think U.S.

Jason Mills

is This the Jason. Yes. for question. Thanks

So was guidance our this It in we that for still U.S. But were said the growth year range be range. each first reflects range. last on strong expect thrombectomy a call year. we the quarter. quarter, that and Obviously, quarter that the above slightly we that to of reiterated the quarter, within for we remainder

So now. for to stick going that's where we're

Unknown Analyst

expansion margin similar margin, sort on of XQ. over operating XXX Okay. little points in And a then question basis

trends to that Just like see kind range increasing get XXX confident year? the business for in of of curious to in to terms basis you'd point XXX what in the

Maggie Yuen

a year. Yes. start with you. No, thank of Obviously, good the

very At launch typically new our performance. QX, see material happy investment with price productivity. we are some margin We increase in some and normal product

of So see continue. improvement to year, and productivity we improvements in for remainder will product continue will the mix the

margin confident So we're to trend that we'll continue see this pretty expansion.

Jason Mills

we expected I'll would for this we and that cadence each call, guidance translate for expenses we to year-over-year into for that. of in on expansion again basis see, February XXX gave would just obviously we basis quarter And sort expansion when traditionally to point that the the range on We quarter, full add which reiterated be Yes. that of the on operating XXXX that year. a said margin initial the that XXX given

margins the important it's operating cadence sort the to So of of understand our through year.

Adam Elsesser

right. All Are there? we still

Operator

from David comes Our from question next Baird. Rescott

David Rescott

I on ask, advantages Adam, X.X. optimized wanted some mention of of heard I of to Flash kind that X.X you the Flash

heard us for understanding the So I wondering can you system already. of what's demand about system? the comments a And around the better some maybe different in if give pent-up

company? Flash and to comments guide maybe So what opportunities kind those implied year, just new could versus and demand of maybe that X.X the and curious open on what's QX where, up the for relative if baked into full

Adam Elsesser

Yes. quickly. Well, What job. bigger out to you in didn't clot in took change describe and catheter The Flash let great a the is spreads the obviously, which less catheter. simply is did X.X a me And and of, catheter in algorithm deal of a sort X.X hearing change pretty what clot, around Flash benefit It even first sized without an it very more update does, extraordinary that. seeing They're even of the rallying which is algorithm, of we're field having as think the I know, X.X seeing field. a go appropriate And word-of-mouth the faster, removes or or lot this to it. size. quick

X.X who what interest is And DVT. not wanted was in lot level a seeing of might might we're in They PE. to. have to alluding sort So it Flash try have I interest of from that of folks used

patients. the these treatment I think That's look key. to continues everyone optimize for the to

the Flash most, boxes, speed feeling now. simplicity. matter everyone that's said those that and really X.X and reaction things the three And it and the is but we've do to before, want that checks it's You safety, right

David Rescott

When with then price Thunderbolt a been bit I longer market? premium comments share. the to some to I a maybe you and maybe believe an think maybe THUNDER the past discussed in still, and that's helping And command out trial. you about opportunity term, Great. [indiscernible], guess, think to comes front that the gain still around on product little term that maybe able there's the leverage you and I in the and of heard when for ability some had think price longer term premium-priced longer Thunderbolt, I type Okay. trying that already, to do that

Adam Elsesser

Yes.

things. use and clot step you if from think of aspiration where lot technology in a a and other that. sophisticated. now, developed the They a this prices has people use the They of parts in different think become stentriever. I back risen series as stroke, of not might and stroke, body it's might and about do products the Right have more

be very, expensive of body, of time don't going saw need like the not very That's And all obviously, And using have those with guessing by done, we'll more products you see that's They're think of lot ancillary the me and stroke. particularly system. what something The of in be CAVT you to what a what lightning hoping you're different we are the one I going people of sort are Penumbra we've than the doing. with usage tools extraordinary XXX% spent we would just system that's be simple seen, increase in of that Thunderbolt. already. part So sized the bolt already when in to the we because not the the closest catheters. an portfolio similar similar, of product most year better the our rest technologies example arterial are

which ultimately starting position I our be different think of lot it plays competitors. we'll significant older to starting little benefit arterial think because bit than a technology I at side, spot a we're with in dominant a pretty did with we with the our

So helps just I going think Thunderbolt us forward.

Operator

comes The Company. from next Needham Matson from and question Mike

Michael Matson

into one CAVT with wanted products. I incorporated you've ask Lightning X.X, just So the to Flash software

something a expect the faster? we iterate an maybe is product -- to sort words, to you to could improve the So continue that opportunity X.X, software? could like or of you year X.X, over other this In as on see et cetera,

Jason Mills

said, possibility The going can Probably, there's to great -- launch, software a the with it's thorough, different it's we question. well. improve Yes, and Obviously, that accurate. really continue hardware and we're catheters premise very thing. the slightly is is iterations a than so of the into weeks That faster this. the all it's being testing but

year, fix. we going haven't of the for have I'm volume same to, make the are products ones. we a sheer another weaknesses to we I think have to of that will to sure to that improve. that's to high-class But CAVT course do continue next the products we're new I changes improve. problem over the work So Obviously, of and the alluded not us the version or over identified yet And X

just different are X.X. that Flash So products But that's Lightning yes, to there than possible. improving cover newer conceptually, things

Michael Matson

Got that think Adam, commercial about team was remarks. then, it And prepared it. a comment optimizing you the Okay. the made in I

I you that could means, if just elaborate What see guess? wanted that? to I So on

Adam Elsesser

Yes.

don't been lead we've always has want that products have So same for commercial enough last both launch products. these and at year had year. -- We about those best again, be the a our the which extraordinarily to our I of team the to so selling. commercial talked ever market-leading commercial then of what embolization we much team been is, support many, to always we and the Flash the proud many between to last philosophy assembled, work new Bolt the business, chunk technology. all and have do And the we on our do for time, customers to just we want We of that peripheral consider And years. have had people wanted team the and big

Those could. the to we They're are folks hire here. of more need we people able people work. the to now do some So on best were board. We

I an So have -- today, really size team. optimized think we

this go through Sure. plans year. certainly not we our this continue As soon could impossible, to It's but anytime we it's -- to add we not in continues, it? as would

about I physicians kind and the need think to need we serve year. growth to this patients that talking drive and serve the we the got team we of we're

Operator

Our next Instructions] Shagun comes question [Operator from Singh from Capital. RBC

Shagun Singh Chadha

Is here And a Adam, growth plus to return for Is X.X? drivers versus could you XX% XX% on you're it So there outlook think the question of that there case is how really, XX% Flash is to it longer directional should growth new could that product a initial XX% year? to this be we horizon? just QX. of the in wondering, that Is see XX%. potentially plus I as for And then Penumbra. to term a then targeting base you the plus what growth? we pathway was alluded just 'XX And your the follow-up, it? about on

be today's looking Just for wondering provide you color if at can great. color there's any XXX and would sales $X.XX EPS. for call? prior to Consensus was Any

Adam Elsesser

Yes.

sort time. guidance, the pretty been first of part. we start straightforward. our give at into looked We've the on has always take have around all guidance the time our and our some is Let approach account that look we me information and for We philosophy

the deviate field, Obviously, awful guess very we've We it. is. excitement could added products and to this of proud what feel happen and and going of we or to there. we're around lot here sort of that are not an I'm of momentum So happy from the extremely sort business that with where

is there's leave consider in body comment of being million guidance, the alone guidance future have I as in That of have a the what around think meant like U.S. said. I clot people that, guessing and our said how to also business also that on around what we're time who it's do their grow. But meant we've will have and the that more premature do for will around are to we'll the the that we've obviously, said, a to thoughts and something doing going about a comment impact not the in this future we work in it's ahead. we X.XX prepared remarks something should out potentially beyond work the than past. we're doing now. and lays ever that obviously And now about right do, able to we focus been

Jason Mills

in obviously in XX%. expect that products, first We're And that initial over there. top report at second expect February. the the in Shagun, said And talked would the we've growth of today commercial second Flash the we and on cadence And U.S. it us little team your international said see the year, of mid-teens cadence. the visibility have among the of above. range the the a we be of sort is to we question, you year. through reiterated we the growth of balance Yes. call part half of same them and the or revenue year, our lot a And to about And we X.X we we of business, the Today, end range. the of saw the thing part course, the of guidance thrombectomy

be if components follow-ups, my you any models. up business your you not try in give remarks to that's happy enough. to to comprehensive we the But think the prepared of I take So have -- to set

Operator

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

Cecilia Furlong

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

Penumbra (PEN) 7 May 242024 Q1 Earnings call transcript