Penumbra Inc Q3 FY2024 earnings call

• Adam Elsesser highlighted strong performance in U.S. thrombectomy, FDA clearances for new CAVT products, CE Mark for Flash 2.0 and Bolt 7 in Europe, and progress in neurovascular business. - Maggie Yuen reviewed financial results, including revenue growth, geographic mix, and gross margin improvement. - Jason Mills reiterated revenue guidance and discussed margin expansion expectations, including raising the lower end of U.S. thrombectomy growth guidance.

Total revenue for the third quarter was $301 million, a year-over-year increase of 11.1% on a reported basis. U.S. thrombectomy grew 21.2% year-over-year to $162.1 million, with the U.S. VTE franchise delivering 32% year-over-year revenue growth and 13% sequentially. International business was 24.8% of revenue, decreasing 1.9% reported. Global thrombectomy revenue was $204.1 million, up 14% reported. Embolization and Access business was $96.9 million, up 5.5% reported. Gross margin for Q3 2024 was 66.5%, up 90 basis points from the prior year period.

• Reiterated total revenue guidance range for 2024 of $1,180.0 million to $1,200.0 million. - Raised the lower end of U.S. thrombectomy growth guidance to 24% to 25% from 23% to 25% previously. - Expect gross margin in Q4 to be consistent with Q3 levels and non-GAAP operating margin to expand sequentially, with full-year guidance of 100 to 150 basis points improvement in gross margin and 100 to 200 basis points improvement in operating margin.

• Uncertainties related to regulatory approvals. - Reimbursement landscape in international markets. - Competitive dynamics in the thrombectomy and related medical device spaces.

Q: Richard Newitter asked about U.S. neurothrombectomy trend and international business recovery.

A: Adam Elsesser responded on U.S. neurothrombectomy growth and discussed international business headwinds and recovery prospects.

Q: Robert Marcus inquired about margin expansion and competitor data.

A: Adam Elsesser talked about margin expansion drivers and competitor data impact on Penumbra's business.

Q: Unidentified Analyst asked about Thunder trial changes and 2025 headwinds.

A: Adam Elsesser commented on Thunder trial changes and 2025 headwinds and tailwinds.

Q: Joanne Wuensch asked about gross margin goals and Thunderbolt commercialization.

A: Adam Elsesser discussed gross margin goals and Thunderbolt commercialization steps.

Q: Michael Sarcone asked about U.S. VTE share and Bolt products.

A: Adam Elsesser talked about U.S. VTE share and Bolt products details.

Q: Samantha Kurtz asked about arterial thrombectomy and Thunder trial data timing.

A: Adam Elsesser responded on arterial thrombectomy and Thunder trial data timing.

Q: Unidentified Analyst asked about stroke growth and Medtronic partnership.

A: Adam Elsesser commented on stroke growth and Medtronic partnership impact.

Q: Michael Kratky asked about arterial thrombectomy growth and BTK market.

A: Adam Elsesser discussed arterial thrombectomy growth and BTK market expansion.

Q: Pito Chickering asked about guidance and SG&A leverage.

A: Jason Mills and Adam Elsesser addressed guidance and SG&A leverage.

Q: Unidentified Analyst asked about guideline changes and market access.

A: Adam Elsesser commented on guideline changes and market access efforts.

Q: Unidentified Analyst asked about small vessel clots and reimbursement.

A: Adam Elsesser responded on small vessel clots and reimbursement opportunities.

Q: Michael Matson asked about Thunderbolt data timing and pricing.

A: Adam Elsesser discussed Thunderbolt data timing and pricing expectations.