Penumbra, Inc. Q1 FY2025 earnings call

• Core US thrombectomy business showed momentum with CAVT technology enhancing market position. US VTE franchise grew 42%, and arterial/stroke businesses delivered strong growth. - FDA cleared Ruby XL, with expedited inventory build for late Q2/early Q3 launch. - Neurovascular business: US stroke thrombectomy franchise strong, next-gen Red 72 catheter well-received. Thunder trial data submitted to FDA. - Focus on continuous innovation, generating clinical/health economic data, and strategic commercial team investment.

For the first quarter of 2025, Penumbra, Inc. generated total revenue of $324.1 million, a 16.3% year-over-year increase on a reported basis and 16.9% on a constant currency basis. The US thrombectomy business saw revenue increase 25% year-over-year to $187.9 million, with the USVTE franchise leading at 42% growth. The embolization and access business had revenue of $97.6 million, a 7.3% year-over-year increase. Geographically, 79.2% of total revenue came from the US, and international regions decreased 2.5% year-over-year, with $5 million in China revenue excluded from the forecast due to the macro environment.

• Reiterated total revenue guidance range of 12%-14% year-over-year growth. - Raised US thrombectomy growth guidance to 20%-21% year-over-year. - Reiterated gross margin and operating margin expansion expectations for 2025. - Removed $5 million China revenue from forecast.

• Macro environment impact, particularly in China. - Uncertainty around FDA review timeline for Thunderbolt. - Tariff and supply chain risks, though manufacturing 100% in US with 75% US-sourced materials.

Q: Robbie Marcus with JPMorgan asked about US thrombectomy growth and R&D.

A: Adam Elsesser and Maggie Yuen responded on US thrombectomy growth, R&D, and gross margin.

Q: Lynn with Wells Fargo asked about Thunderbolt FDA review and metrics.

A: Adam Elsesser discussed Thunderbolt's 510(k) submission, clinical metrics, and VAX process.

Q: Pito Chickering with Deutsche Bank asked about China revenue removal and international thrombectomy growth.

A: Adam Elsesser and Jason Mills talked about removing China revenue and international thrombectomy growth drivers.

Q: McCauley with William Blair asked about market access for Thunderbolt and arterial growth.

A: Adam Elsesser and Jason Mills addressed market access and arterial growth trends.

Q: Bill Plovanic with Canaccord asked about arterial product pricing and coronary CABT.

A: Adam Elsesser discussed arterial product volume growth and coronary CABT status.

Q: Travis Steed with Bank of America asked about Ruby XL market opportunity.

A: Adam Elsesser described Ruby XL and its market potential.

Q: Ryan Zimmerman with BTIG asked about Costa Rica manufacturing and new thrombolytic agent impact.

A: Adam Elsesser talked about Costa Rica manufacturing flexibility and new thrombolytic agent impact on thrombectomy.

Q: Collin Teichmarsh with Morgan Stanley asked about arterial product feedback and Thunderbolt distal clots.

A: Adam Elsesser discussed arterial product feedback and Thunderbolt's distal clot capabilities.

Q: Richard Newitter with Truist asked about US stroke growth and price impact.

A: Adam Elsesser addressed US stroke growth and price strategy.

Q: Matthew O'Brien with Piper Sandler asked about peripheral growth and gross margin.

A: Maggie Yuen discussed peripheral growth and gross margin outlook.

Q: David Rescott with Baird asked about embolization business focus and stroke market.

A: Adam Elsesser talked about embolization business focus and stroke market insights.