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Penumbra (PEN) Q3 Earnings call transcript Oct 30, 2024

Daily EarningsThursday, Oct 31, 2024 3:59 pm ET

1min read

PEN --

Penumbra Inc., a leading medical device company, recently held its third quarter 2024 earnings call, highlighting strong financial performance and strategic developments across its product portfolio. The company's management team, led by Adam Elsesser, Cecilia Furlong, Maggie Yuen, and Jason Mills, provided insights into Penumbra's growth trajectory and strategic focus on innovation, product development, and market expansion.

Financial Performance

Penumbra reported total revenue of $301 million for the third quarter, marking a significant 11.1% increase on a reported basis and 10.9% on a constant currency basis compared to the same period last year. The company's U.S. thrombectomy business, driven by the adoption of its CAVT portfolio, achieved a robust 21.2% year-over-year growth, while its international regions showed a 1.9% decrease in revenue.

Product Development and Innovation

The third quarter was marked by several product launches and regulatory approvals. Penumbra received FDA clearance for two new CAVT products, Lightning Bolt 6X and Lightning Bolt 12, expanding its portfolio and addressing a broader range of venous and arterial occlusions. The company also received CE Mark for Lightning Flash 2.0 and Lightning Bolt 7 in Europe, paving the way for global expansion.

Strategic Focus

Penumbra's strategic focus remains on enhancing its comprehensive value proposition through constant innovation and clinical evidence generation. The company aims to accelerate physician conversion from other mechanical thrombectomy products and lytics to its CAVT technology, leveraging its market-leading position in stroke thrombectomy and expanding into neurovascular applications.

Market Expansion and Operational Efficiencies

Penumbra's international business, particularly in Europe, is poised for growth, with a focus on reimbursement and clinical evidence generation to support market access and awareness. The company also plans to drive operating efficiencies and improve its profitability profile, aiming for a gross margin of over 70% within the next 18 to 24 months and non-GAAP operating margin expansion outpacing gross margin expansion.

Investor Engagement

During the call, key investors and analysts had the opportunity to engage with Penumbra's management team, asking questions about the company's growth prospects, product strategy, and regulatory landscape. These interactions provided valuable insights into the investors' concerns and expectations, offering a window into the market's perception of Penumbra's performance and future prospects.

Conclusion

Penumbra's third quarter 2024 earnings call underscored the company's strong financial performance and strategic focus on innovation and market expansion. With a robust product portfolio, regulatory approvals, and a clear path to enhancing profitability, Penumbra is well-positioned to capitalize on growth opportunities and maintain its leadership position in the medical device industry.

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