Summary of Penumbra (PEN) FY Conference Call - August 12, 2025 Company Overview - **Company**: Penumbra, a leader in thrombectomy technology, focusing on advanced medical devices for treating blood clots [4][40]. Key Industry Insights - **Market Dynamics**: The company has seen a significant shift towards its CABT (Computer Assisted Vacuum Thrombectomy) technology, with over 40% growth in the VGE segment over the last three quarters [4][10]. - **Sales Force Changes**: Penumbra has established a separate sales force dedicated to peripheral embolization to better focus on the growing CABT opportunity [2][5]. - **Patient Access**: Approximately 800,000 patients in the U.S. experience blood clots annually, with only 10-15% receiving advanced therapy, indicating a substantial market opportunity [10][33]. Product Developments - **New Product Launch**: The Excel product received FDA clearance, and the sales team is being trained to introduce it to customers [5][6]. - **Thrombectomy Innovations**: The company is focusing on modulated aspiration technology, which aims to improve clot removal efficiency and predictability [25][26]. - **VTE Market Growth**: The VTE segment has shown a 42% growth in the last quarter, with expectations for continued expansion as more patients gain access to advanced therapies [31][33]. Competitive Landscape - **Market Position**: Penumbra is positioned as a market leader in thrombectomy, with a differentiated product offering compared to competitors who primarily use basic aspiration methods [43][44]. - **Acquisition Impact**: The acquisition of Stryker and Nenari has influenced market dynamics, but Penumbra's growth trajectory in CABT was already established prior to this event [39][40]. Future Outlook - **Growth Expectations**: The company anticipates ramping up sales contributions in the latter half of the year as the new sales team becomes fully operational [16][34]. - **International Expansion**: Penumbra is focusing on strategic international markets, with positive developments expected from its partnerships, particularly in China [51][52]. Additional Considerations - **Clinical Data Importance**: The company emphasizes the need for clinical data to support the adoption of advanced therapies, particularly in the DVT segment [37][38]. - **Innovation Commitment**: Continuous innovation remains a core strategy for Penumbra, with plans to introduce new technologies and improve existing products [34][44]. This summary encapsulates the key points discussed during the conference call, highlighting Penumbra's strategic initiatives, market dynamics, and future growth potential.

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $339.5 million, reflecting a year-over-year growth of 13.4% on a reported basis and 12.7% on a constant currency basis [7][19] - Gross margin was reported at 66%, an increase from 54.4% in Q2 2024, excluding a one-time inventory write-off of $33.4 million [22][24] - Operating income was $40.8 million, representing 12% of revenue, compared to an operating loss of $1.6 million in the same quarter last year [24][25] - Adjusted EBITDA was $61.4 million, or 18.1% of total revenue, compared to $13 million, or 4.3%, in Q2 2024 [25] Business Line Data and Key Metrics Changes - U.S. Thrombectomy revenue increased by 22.6% year-over-year to $188.5 million, driven by strong adoption of the CAVT portfolio [9][19] - Global thrombectomy business revenue grew to $230.3 million, a 13.1% increase reported and 12.6% in constant currency [21] - Revenue from the Embolization and Access business was $109.2 million, an increase of 13.9% reported and 12.8% in constant currency [22] Market Data and Key Metrics Changes - The U.S. region reported growth of 19.5%, primarily driven by the thrombectomy franchise [20] - International regions saw a decrease of 3.2% reported and 5.8% in constant currency, mainly due to a decline in China revenue [20] - Excluding China, international thrombectomy revenue grew by 14.4% compared to the same period last year [21] Company Strategy and Development Direction - The company is focused on continuous innovation and expanding the total number of patients treated globally with its technologies [7][8] - A separate peripheral embolization sales force has been established to enhance focus on thrombectomy and embolization, with over 50 new sales representatives added [12] - The company aims to achieve a gross margin profile of over 70% by 2026, with operating margin expansion expected to outpace gross margin expansion [10][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about easing headwinds in China, anticipating a return to growth in international regions [20] - The company is committed to running high-quality clinical studies to support its product offerings and market access initiatives [14] - Management highlighted the importance of the STORM PE trial, which could fundamentally shift patient treatment for pulmonary embolism [13][31] Other Important Information - The company ended Q2 2025 with cash, cash equivalents, and marketable securities of $424.6 million and no debt, an increase of $45.7 million sequentially [25] - The company is increasing its revenue guidance for 2025 to a range of $1.355 billion to $1.37 billion, representing 13% to 15% year-over-year growth [26] Q&A Session Summary Question: Importance of STORM PE study - Management emphasized that STORM PE is the first randomized study comparing anticoagulation and mechanical thrombectomy, which is significant for the field [31][33] Question: Update on Thunderbolt FDA review - Management stated that the FDA review process is thorough and as expected, and reiterated excitement about the Thunderbolt product [37][38] Question: Impact of Salesforce split on margins - Management clarified that the investment in the commercial team does not impact gross margin but may cause month-to-month variability in product mix [52] Question: Anticipated slowdown in specific divisions - Management noted that while the stroke market has shown softer growth, the company continues to gain market share [70] Question: Update on international markets, particularly China - Management indicated that while there were headwinds in China, recent orders have been filled, and the company is optimistic about future growth [79] Question: Market share in pulmonary embolism and DVT - Management believes they have gained significant market share in DVT, estimating over 50%, and have made substantial progress in the PE market [110]

Financial Data and Key Metrics Changes - Total revenue for the second quarter of 2025 was $339,500,000, representing a year-over-year growth of 13.4% on a reported basis and 12.7% on a constant currency basis [6][19] - Gross margin for the second quarter was 66%, up from 54.4% in the same quarter of 2024, which included a one-time $33,400,000 inventory write-off [22][23] - Operating income was $40,800,000, or 12% of revenue, compared to an operating loss of $1,600,000 for the same period last year [25][26] - Adjusted EBITDA was $61,400,000, or 18.1% of total revenue, compared to $13,000,000, or 4.3%, in the second quarter of the previous year [26] Business Line Data and Key Metrics Changes - U.S. Thrombectomy revenue increased by 22.6% year-over-year to $188,500,000, driven by a 42% growth in the USVTE franchise [8][19] - Global thrombectomy business revenue grew to $230,300,000, an increase of 13.1% reported and 12.6% in constant currency [21] - Revenue from the Embolization and Access business was $109,200,000, an increase of 13.9% reported and 12.8% in constant currency, primarily driven by U.S. Embolization sales [22] Market Data and Key Metrics Changes - The U.S. region reported growth of 19.5%, driven by the strong performance of the thrombectomy franchise [20] - International regions saw a decrease of 3.2% reported and 5.8% in constant currency, primarily due to a decline in China revenue [20] - Excluding the impact of the China region, international thrombectomy revenue grew by 14.4% compared to the same period last year [21] Company Strategy and Development Direction - The company is focused on continuous innovation and expanding the total number of patients treated globally with its technologies [6][7] - A separate peripheral embolization sales force has been established to enhance focus on thrombectomy and embolization, with over 50 new sales representatives added [11] - The company aims to achieve a gross margin profile of over 70% by 2026, with operating margin expansion expected to outpace gross margin expansion [9][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about easing headwinds in China, anticipating a return to growth across all international regions [20] - The company is committed to running high-quality clinical studies to support its product offerings and market access initiatives [12][17] - Management highlighted the importance of the STORM PE trial, which is expected to provide significant evidence for the treatment of pulmonary embolism [12][34] Other Important Information - The company ended the second quarter with cash, cash equivalents, and marketable securities of $424,600,000 and no debt, reflecting strong operating profitability [26] - Due to outperformance in the second quarter, the company increased its revenue guidance for 2025 to a range of $1,355,000,000 to $1,370,000,000, representing 13% to 15% year-over-year growth [27] Q&A Session Summary Question: Importance of STORM PE study - Management emphasized that STORM PE is the first randomized study comparing anticoagulation and mechanical thrombectomy, which is significant for the field [32][34] Question: Update on Thunderbolt FDA review - Management stated that the FDA review process is thorough and ongoing, and they remain excited about the product's potential impact [38][39] Question: Impact of Salesforce split on margins - Management clarified that the investment in the commercial team does not impact gross margins but is expected to support long-term margin goals [52][54] Question: Anticipated slowdown in U.S. thrombectomy business - Management acknowledged a potential deceleration in the stroke market but remains optimistic about continued growth in the thrombectomy business [48][72] Question: International market performance and China - Management noted that international markets are beginning to show signs of recovery, particularly with the launch of new products [80][82]

Summary of Penumbra's Conference Call Company Overview - **Company**: Penumbra - **Industry**: Medical Supplies and Devices - **Key Executives Present**: Adam El Seltzer (CEO), Jason Mills (Director of Strategy), Cecilia Furlong (Director of Business Development) [1][2] Core Mission and Innovation - **Mission**: Founded 21 years ago to create a product for safely removing blood clots from the brain, which was initially seen as controversial [4][5] - **Innovation Cycle**: Continuous improvement in catheter technology and the introduction of computer-assisted aspiration systems [6][10] - **Future Goals**: Aim to make clot removal procedures easy, safe, and efficient, reducing the perception of clots as life-threatening [10] Product Development and Market Expansion - **Thunderbolt Product**: New product in neurovascular treatment, building on existing technology with significant prior experience in other body areas [12][13] - **Market Penetration**: Current penetration in the neurothrombectomy market is around 30%, with potential for growth as procedures become more efficient [20][22] - **Share in Thrombectomy Market**: Penumbra holds over 50% market share, potentially approaching 60% [27][43] Market Dynamics and Growth - **Neurothrombectomy Market Growth**: Mid-single-digit growth expected, influenced by recovery from COVID-19 impacts [26] - **VTE Market Growth**: Achieved over 40% year-over-year growth, driven by product innovation and competitive disruption [38][40] - **Future Market Estimates**: VTE market growth estimated at high teens to 20% range, with potential for significant share gains [44] Competitive Landscape - **Competitive Position**: Penumbra is optimistic about maintaining and growing its market share despite competition, particularly in the VTE space [40][43] - **Thrombolytic Drugs**: Continuous innovation in thrombolytics is noted, but not seen as direct competition [32] Financial Performance and Profitability - **Gross Margins**: Expected to expand to over 67% in the near term, with a long-term goal of reaching 70% [58][59] - **Operating Margins**: Anticipated to grow faster than gross margins, reflecting the company's underpenetrated market status [59] Key Takeaways - **Patient-Centric Approach**: Emphasis on improving patient outcomes and addressing unmet medical needs, particularly in stroke and pulmonary embolism [54][56] - **Future Trials**: Ongoing trials like STORM PE are expected to provide data that could significantly impact market penetration and treatment protocols [49][50] This summary encapsulates the key points discussed during the conference call, highlighting Penumbra's strategic direction, market dynamics, and financial outlook.

Summary of Penumbra (PEN) FY Conference Call - June 03, 2025 Company Overview - **Company**: Penumbra, a medical technology company based in Alameda, California, specializing in thrombectomy and embolization products [5][6] - **Employees**: Over 4,500 [6] - **Market Position**: Penumbra is recognized as a leading player in the VTE (Venous Thromboembolism) market, with significant growth potential [2][3] Industry Insights - **VTE Market Growth**: The VTE market is experiencing a shift towards mechanical thrombectomy products, with a projected market growth of 20% in 2025 and beyond [3][48] - **Competitor Challenges**: One of Penumbra's largest competitors is facing integration issues, presenting an opportunity for Penumbra to capture market share [3] - **Clinical Data Impact**: Upcoming clinical data is expected to influence societal guidelines and increase the adoption of mechanical thrombectomy [3] Product Innovations - **CAPT Platform**: A new CAPT platform for neuro is anticipated to drive growth, similar to previous innovations in VTE [3] - **Thrombectomy Technology**: Penumbra's current technology, CABT (Computer Assisted Vacuum Thrombectomy), enhances the effectiveness of clot removal [14][15] - **Device Efficiency**: Recent advancements have reduced device time for clot removal to as low as two minutes, significantly improving patient outcomes [21][22][26] Financial Performance - **Revenue Growth**: Penumbra has reported over 40% growth in VTE for several quarters, with expectations to maintain this momentum [46][48] - **China Market Impact**: Revenue from China has declined due to tariffs and economic conditions, which could affect overall growth projections [44] Strategic Focus - **Four-Pronged Strategy**: The company aims to focus on innovation, commercial team investment, market access, and margin expansion to drive future growth [33][35] - **Market Access Initiatives**: Penumbra is working with hospitals to demonstrate the clinical and financial benefits of their products, aiming to increase treatment rates for DVT and PE [38][39] Key Takeaways - **Patient Impact**: Penumbra's products are designed to significantly improve patient outcomes, with a focus on treating a larger percentage of potential cases [52][53] - **Long-Term Growth Potential**: The combination of innovative products, market access strategies, and a growing VTE market positions Penumbra for sustained growth in the coming years [3][48][53]

Summary of Penumbra (PEN) 2025 Conference Call Company Overview - **Company**: Penumbra, Inc. (PEN) - **Market Cap**: Increased from $1 billion to approximately $11.12 billion over the past decade [3][4] Core Industry Insights - **Industry**: Medical Devices, specifically focusing on thrombectomy and stroke treatment - **Market Dynamics**: The competitive landscape has evolved, with Penumbra transitioning from competing against other companies to focusing on internal innovation [5][6][15] Key Points and Arguments 1. **Innovation as a Growth Driver**: Penumbra attributes its success to continuous innovation and improvement of its products, particularly in thrombectomy technology [4][5] 2. **Digital Transformation**: The company is entering a digital age, enhancing its product capabilities through software improvements rather than solely hardware changes [6][10] 3. **Market Leadership**: Penumbra remains a dominant player in the aspiration thrombectomy market, despite increased competition from private companies [15][16] 4. **Challenges in Stroke Treatment**: Structural issues in the healthcare system hinder patient access to treatment, impacting growth in the stroke market [17][18] 5. **Regulatory Process**: The company is currently in the FDA review process for its Thunderbolt product, with no significant updates on the timeline for approval [22][23] 6. **Market Access Strategy**: Penumbra is working on demonstrating the clinical and economic benefits of its products to hospitals, aiming to change treatment protocols [50][51][52] 7. **Growth in VTE Market**: The company has seen a 42% growth rate in the US venous thromboembolism (USVT) market, driven by peer recommendations among physicians [43][48] 8. **China Market Impact**: Revenue from China has significantly decreased, impacting overall guidance, but the company remains optimistic about future opportunities [65][67] Additional Important Insights - **Quality of Life Measures**: The company emphasizes the importance of quality of life in its clinical trials, particularly for patients undergoing treatment for intermediate pulmonary embolism [59][61] - **Product Launches**: Excitement around new product launches, such as Ruby XL, indicates ongoing innovation and market engagement [68][69] - **Economic Considerations**: The economic benefits of using Penumbra's products over traditional treatments are highlighted, suggesting a potential shift in hospital protocols [52][53] This summary encapsulates the key insights and strategic directions discussed during the conference call, reflecting Penumbra's focus on innovation, market dynamics, and growth opportunities in the medical device industry.

Financial Data and Key Metrics Changes - The company reported total revenue of $324.1 million for Q1 2025, reflecting a year-over-year growth of 16.3% on a reported basis and 16.9% on a constant currency basis [10][26] - Gross margin improved to 66.6%, an increase of 160 basis points compared to the prior year [11][30] - Operating income reached $40.4 million, or 12.4% of revenue, up 550 basis points year-over-year [11][33] - Adjusted EBITDA was $59.6 million, representing 18.4% of total revenue, compared to $36.3 million or 13.5% in the same quarter last year [33] Business Line Data and Key Metrics Changes - U.S. thrombectomy revenue increased by 25% year-over-year to $187.9 million, with the USVTE franchise leading with a growth of 42% [10][26] - Revenue from the global thrombectomy business grew to $226.5 million, a 20.7% increase reported and 21.2% in constant currency [28] - The embolization and access business reported revenue of $97.6 million, a 7.3% increase reported and 8.1% in constant currency [30] Market Data and Key Metrics Changes - Sales from the U.S. accounted for 79.2% of total revenue, while international sales made up 20.8% [26] - International revenue decreased by 2.5% reported and 0.1% in constant currency, primarily due to a decline in China revenue of $6.7 million [27] - The company expects continued year-over-year headwinds from the China business for Q2 2025 [29] Company Strategy and Development Direction - The company aims to achieve a gross margin profile of over 70% by the end of 2026 [11] - Continuous innovation is a key strategy, with a focus on enhancing the proprietary CABT portfolio and investing in embolization and access portfolios [15][16] - The company is expanding market access initiatives to increase awareness of CABT's clinical and economic benefits [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong market position and growth potential, particularly in the U.S. thrombectomy business [10][23] - The company reiterated its total revenue guidance for the year at 12% to 14% year-over-year growth, while raising the U.S. thrombectomy growth guidance to 20% to 21% [35] - Management acknowledged the impact of macroeconomic conditions, particularly in China, but remains optimistic about overall growth [27][29] Other Important Information - The company ended Q1 2025 with cash, cash equivalents, and marketable securities of $378.8 million and no debt [34] - The FDA clearance for Ruby XL, a new diagnostic catheter-compatible peripheral coil, was received earlier than expected, with plans for market launch in late Q2 or early Q3 [16][17] Q&A Session Summary Question: Can you provide more color on stroke versus peripheral market trends? - Management noted significant growth in the stroke business, driven by the launch of the new Red 72 catheter, and emphasized that the stroke business is performing well above market growth [40][41] Question: How are you thinking about R&D spending going forward? - Management indicated that R&D spending is not linear and will continue to invest in innovation, with savings from the immersive business wind down contributing to lower R&D expenses this quarter [45][50] Question: What are the key metrics for the Thunderbolt product? - Management stated that the Thunderbolt product is submitted as a 510(k) and emphasized the importance of procedure time and device engagement time as key metrics for physicians [56][58] Question: What is the impact of the new thrombolytic agent on thrombectomy demand? - Management believes that the new drug targets different patient populations and does not see it impacting thrombectomy demand significantly [117] Question: Can you discuss the growth in international markets outside of China? - Management confirmed strong growth in international markets where CABT is available, but noted that the U.S. will continue to drive most of the growth due to its larger market size and reimbursement dynamics [71][73]

Financial Data and Key Metrics Changes - In Q4 2024, the company generated revenue of $321.3 million, representing a year-over-year growth of 12.9% on an adjusted basis and 13% on a constant currency basis [9][29] - Full year 2024 revenue increased 13.4% year-over-year to over $1.2 billion, with U.S. thrombectomy business revenue of $646.7 million, a 26.8% increase versus 2023 [10][34] - Gross margin for Q4 2024 was 67.4%, an improvement of 170 basis points compared to the prior year, while operating income was $48.6 million, or 15.1% of revenue, up 200 basis points year-over-year [12][33] Business Line Data and Key Metrics Changes - U.S. thrombectomy sales in Q4 increased 27.3% year-over-year to $180.6 million, with the U.S. VTE franchise delivering robust growth of 41% [9][10] - Revenue from the global thrombectomy business grew to $222.7 million in Q4 2024, an increase of 16.8% adjusted and 16.9% in constant currency [31] - The embolization and access business reported revenue of $98.6 million in Q4 2024, a 5% increase adjusted and 5.1% in constant currency [32] Market Data and Key Metrics Changes - The geographic mix of sales for Q4 2024 was 77.2% U.S. and 22.8% international, with U.S. growth of 21.7% driven by thrombectomy franchise growth [29] - International regions saw a decrease of 9.4% adjusted and 9.1% in constant currency, primarily due to a decline in China revenue of $15.4 million [30] Company Strategy and Development Direction - The company is focused on expanding its interventional business and has exited the Immersive Healthcare segment to concentrate on thrombectomy innovations [11] - Plans to achieve a gross margin profile over 70% by the end of 2026, leveraging product mix shifts and operational efficiencies [13][41] - The company aims to continue driving gross margin expansion and operating efficiencies while investing in innovation and clinical data [25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds in 2024 but expressed confidence in overcoming these challenges in 2025, particularly with the expected growth in the U.S. thrombectomy business [46][47] - The company is optimistic about the potential of its CAVT technology and its ability to capture a larger market share in the thrombectomy space [25][122] Other Important Information - The company ended Q4 2024 with cash, cash equivalents, and marketable securities of $340.1 million and no debt, reflecting strong operating profitability [38] - The company plans to build a manufacturing facility in Costa Rica to enhance manufacturing capacity [13] Q&A Session Summary Question: Guidance for 2025 and Thunderbolt - Management provided guidance for 2025 revenue growth of 12% to 14%, citing caution due to factors like the Thunderbolt product and previous headwinds [45][46] Question: Embolization and Access Business Outlook - Management indicated that the embolization and access business remains strong, with opportunities for growth, particularly in the U.S. [54][56] Question: U.S. Venous Thrombectomy Growth Durability - Management noted that the 41% growth in the U.S. venous thrombectomy business is driven by the effectiveness of CAVT technology and the expansion of the commercial team [60][62]