Penumbra(PEN)2025-04-24 00:15Financial 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]