Penumbra(PEN)2023-05-03 03:59Financial Data and Key Metrics Changes - Total revenues for Q1 2023 were $241.4 million, an increase of 18.4% year-over-year and 19.7% on a constant currency basis [8][46] - Non-GAAP operating income increased to $10.4 million, representing 4.3% of revenue, compared to an operating loss of $2.3 million for the same period last year [9][22] - Gross margin for Q1 2023 was 62.6%, consistent with the previous quarter and slightly improved from 62.5% in Q1 2022 [48] Business Line Data and Key Metrics Changes - Revenue from the vascular business grew to $142.8 million, an increase of 16.3% reported and 17.2% in constant currency [47] - Revenue from the neuro business was $98.5 million, an increase of 21.5% reported and 23.4% in constant currency [20] - The U.S. vascular thrombectomy franchise grew 26% year-over-year in Q1 2023 [36][91] Market Data and Key Metrics Changes - U.S. revenue accounted for 71.2% of total sales, with reported growth of 19.1%, while international regions increased 16.7% reported and 21% in constant currency [19] - The international business grew revenue 8% sequentially, reaching a run rate exceeding $0.25 billion annually [43] Company Strategy and Development Direction - The company is focused on expanding its thrombectomy product line, particularly with the recent launches of Lightning Flash and Lightning Bolt 7, which are expected to drive significant growth over the next 5-plus years [5][13] - There is a strong emphasis on converting physicians from traditional treatment methods to the new technologies, with a goal to reach a significant percentage of the 800,000-plus patients in the U.S. [39][55] - The company aims to achieve over 70% gross margins within a few years, supported by product mix improvements and operational efficiencies [9][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the sustainability of growth in the stroke business, driven by the successful launch of new products [30][36] - The company anticipates continued strong revenue growth rates, with guidance for 2023 set at $1.04 billion to $1.06 billion, representing year-over-year growth of 23% to 25% [23][51] - Management highlighted the importance of building inventory and increasing physician awareness and training to support future growth [41][45] Other Important Information - The company ended Q1 2023 with cash, cash equivalents, and marketable securities of $199.1 million, an increase of $11.1 million from the previous quarter [50] - The company is collaborating with the Department of Veteran Affairs to develop virtual reality solutions for healthcare, indicating a strategic expansion into immersive healthcare [17] Q&A Session All Questions and Answers Question: How sustainable is the recent growth in the stroke or neuro business? - Management is optimistic about the sustainability of growth, attributing it to the strong performance of Flash and Bolt products, which have received positive feedback from both new and existing customers [30][36] Question: Were there any one-time items affecting the quarter's performance? - Management indicated that there were no significant one-time distributor orders affecting the results, with growth driven by the launch of new products [56] Question: How much of the updated guidance is attributed to Flash and Bolt? - The majority of the sequential revenue increase was attributed to the U.S. vascular thrombectomy business, primarily driven by Flash [64][81] Question: What is the expected growth trajectory beyond 2023? - Management expects strong double-digit growth going forward, but specific guidance for 2024 has not been provided yet [113] Question: Are there any updates on the THUNDER trial? - Enrollment for the THUNDER trial is ongoing, with positive energy around the trial, and updates on completion dates will be provided in the next quarter [96]