Penumbra(US:PEN)2025-07-29 21:32Financial 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]