ALAMEDA,
Calif., May 7, 2024 /PRNewswire/ -- Penumbra, Inc.
(NYSE: PEN), a global healthcare company focused on innovative
therapies, today reported financial results for the first quarter
ended March 31, 2024.
- Revenue of $278.7 million in
the first quarter of 2024, an increase of 15.4% or 15.2% in
constant currency1, compared to the first quarter of
2023.
- U.S. thrombectomy revenue of $150.3
million in the first quarter of 2024 increased 35.2%
compared to the first quarter of 2023.
- Non-GAAP income from operations1 of $19.3 million in the first quarter of
2024.
- Adjusted EBITDA1 of $37.6
million and adjusted EBITDA margin of 13.5% in the first
quarter of 2024.
- Cash and marketable investments increased $24.3 million in the first quarter of 2024
compared to the fourth quarter of 2023 driven by an increase in
profitability and improvements in working capital.
- Strong growth trends in the first quarter reinforce our
total revenue and U.S. thrombectomy revenue guidance ranges of
16-20% and 27-30%, respectively, for full year 2024.
First Quarter 2024 Financial Results
Total
revenue increased to $278.7 million for the first quarter of 2024
compared to $241.4 million for
the first quarter of 2023, an increase of 15.4%, or 15.2% in
constant currency1. The United
States represented 75.2% of total revenue and international
represented 24.8% of total revenue for the first quarter of 2024.
Revenue from the U.S. increased 22.0% while revenue from our
international regions decreased 0.7%, or 1.7% in constant
currency1. Revenue from sales of our global thrombectomy
products grew to $187.7 million
in the first quarter of 2024, an increase of 29.5%, or 29.3% in
constant currency1 over the same period a year ago,
driven primarily by the sales of our U.S. thrombectomy products
which increased by 35.2% over the same period a year ago. Revenue
from sales of our global embolization and access products declined
to $91.0 million for the first
quarter of 2024, a decrease of 5.7%, or 6.0% in constant
currency1 from the same period a year ago, driven
primarily by our international embolization and access products
which decreased by 11.6% over the same period a year ago.
Gross profit for the first quarter of 2024 was $181.1 million, or 65.0% of total revenue
compared to $151.1 million, or
62.6% of total revenue, for the first quarter of 2023. Gross margin
is impacted by product mix, regional mix, and production
initiatives to support demand and create future efficiencies. As
such, with favorable product mix, improvement in productivity, and
by leveraging our fixed costs on higher volume of new product sales
during the year, our gross margin may be positively impacted in the
future.
Total operating expenses, including a $2.4 million amortization expense of finite lived
intangible assets acquired in connection with the Sixense
acquisition for both periods and $4.8
million in non-recurring litigation related expenses for the
first quarter of 2024, were $169.0
million, or 60.7% of total revenue for the first quarter of
2024, and $143.1 million, or 59.3% of
total revenue, for the first quarter of 2023. Excluding the charges
noted above, total non-GAAP operating expenses1 were
$161.8 million, or 58.1% of total
revenue, for the first quarter of 2024, and $140.7 million, or 58.3% of total revenue for the
first quarter of 2023, respectively. R&D expenses were
$24.6 million for the first quarter
of 2024, compared to $20.0 million
for the first quarter of 2023. SG&A expenses were $144.4 million for the first quarter of
2024, compared to $123.1 million
for the first quarter of 2023.
Income from operations was $12.1 million for the first quarter of 2024,
compared to income from operations of $8.0 million for the first quarter of 2023.
Excluding the amortization expense of finite lived intangible
assets acquired in connection with the Sixense acquisition of
$2.4 million for both periods and
$4.8 million in non-recurring
litigation related expenses for the first quarter of 2024, non-GAAP
income from operations1 was $19.3 million for the first quarter of 2024
compared to non-GAAP income from operations of $10.4 million for the first quarter of
2023.
Full Year 2024 Financial Outlook
The Company
reiterates guidance for total revenue for 2024 to be in the range
of $1,230.0 million to $1,270.0 million, representing year over year
growth of 16% to 20% compared to 2023 revenue of $1,058.5 million. The Company also continues to
project the U.S. thrombectomy franchise will grow 27% to 30%
year-over-year, primarily driven by its Computer-Assisted Vacuum
Thrombectomy ("CAVT") products. The Company also continues to
expect gross margin expansion in the range of 100 to 150 basis
points and total non-GAAP operating margin expansion in the range
of 100 to 200 basis points in 2024 compared to full year 2023.
|
1See
"Non-GAAP Financial Measures" for important information about our
use of non-GAAP measures.
|
Webcast and Conference Call Information
Penumbra, Inc.
will host a conference call to discuss the first quarter 2024
financial results after market close on Tuesday, May 7, 2024
at 4:30 PM Eastern Time. The
conference call can be accessed live over the phone by dialing
(888) 596-4144 for domestic and international callers (conference
id: 7567226), or the webcast can be accessed on the "Events and
Presentations" section under the "Investors" tab of the Company's
website at: www.penumbrainc.com. The webcast will be available on
the Company's website for at least two weeks following the
completion of the call.
About Penumbra
Penumbra, Inc., headquartered in
Alameda, California, is a global
healthcare company focused on innovative therapies. Penumbra
designs, develops, manufactures and markets novel products and has
a broad portfolio that addresses challenging medical conditions in
markets with significant unmet need. Penumbra supports healthcare
providers, hospitals and clinics in more than 100 countries. For
more information, visit www.penumbrainc.com and connect
on Twitter and LinkedIn.
Non-GAAP Financial Measures
In addition to financial
measures prepared in accordance with U.S. generally accepted
accounting principles ("GAAP"), the Company uses the following
non-GAAP financial measures in this press release: a) constant
currency, b) non-GAAP operating expenses, non-GAAP income from
operations, non-GAAP net income, and non-GAAP diluted earnings per
share ("EPS") and c) adjusted EBITDA.
Constant Currency. The Company's constant currency
revenue disclosures estimate the impact of changes in foreign
currency rates on the translation of the Company's current period
revenue as compared to the applicable comparable period in the
prior year. This impact is derived by taking the current local
currency revenue and translating it into U.S. dollars based upon
the foreign currency exchange rates used to translate the local
currency revenue for the applicable comparable period in the prior
year, rather than the actual exchange rates in effect during the
current period. It does not include any other effect of changes in
foreign currency rates on the Company's results or business.
Non-GAAP operating expenses, non-GAAP income from operations,
non-GAAP net income, and non-GAAP diluted EPS. The
adjustments to the GAAP financial measures reflect the exclusion
of:
- the effect of the amortization of finite lived intangible
assets acquired in connection with the Sixense acquisition over
their estimated useful lives;
- the excess tax benefits associated with share-based
compensation arrangements; and
- non-recurring litigation related expenses.
Adjusted EBITDA. The Company's adjusted EBITDA reflects
the exclusion from GAAP net income of:
- non-cash operating charges such as stock-based compensation and
depreciation and amortization;
- non-operating items such as interest income, interest expense,
and provision for (benefit from) income taxes; and
- non-recurring litigation related expenses.
Full reconciliation of these non-GAAP measures to the most
comparable GAAP measures is set forth in the tables below.
Our management believes the non-GAAP financial measures
disclosed in this press release are useful to investors in
assessing the operating performance of our business and provide
meaningful comparisons to prior periods and thus a more complete
understanding of our business than could be obtained absent this
disclosure. Specifically, we consider the change in constant
currency revenue as a useful metric as it provides an alternative
framework for assessing how our underlying business performed
excluding the effect of foreign currency rate fluctuations. We
consider non-GAAP operating expenses, non-GAAP income from
operations, non-GAAP net income, and non-GAAP diluted EPS useful
metrics as they provide an alternative framework for assessing how
our underlying business performed excluding the amortization
expense of finite lived intangible assets acquired in connection
with the Sixense acquisition, the excess tax benefits associated
with share-based compensation arrangements, and expenses related to
certain litigation matters that we have determined are not a normal
or recurring part of our business, including settlement costs and
legal fees. Further, we consider adjusted EBITDA a useful metric as
it provides an alternative framework for assessing how our
underlying business performed excluding non-cash operating charges
such as stock-based compensation and depreciation and amortization,
non-operating items such as interest income, interest expense, and
provision for (benefit from) income taxes and non-recurring
litigation related expenses.
The non-GAAP financial measures included in this press release
may be different from, and therefore may not be comparable to,
similarly titled measures used by other companies. These non-GAAP
measures should not be considered in isolation or as alternatives
to GAAP measures. We urge investors to review the reconciliation of
these non-GAAP financial measures to the comparable GAAP financial
measures included in this press release, and not to rely on any
single financial measure to evaluate our business.
Forward-Looking Statements
Except for historical
information, certain statements in this press release are
forward-looking in nature and are subject to risks, uncertainties
and assumptions about us. Our business and operations are subject
to a variety of risks and uncertainties and, consequently, actual
results may differ materially from those projected by any
forward-looking statements. Factors that could cause actual results
to differ from those projected include, but are not limited to:
failure to sustain or grow profitability or generate positive cash
flows; failure to effectively introduce and market new products;
delays in product introductions; significant competition; inability
to further penetrate our current customer base, expand our user
base and increase the frequency of use of our products by our
customers; inability to achieve or maintain satisfactory pricing
and margins; manufacturing difficulties; permanent write-downs or
write-offs of our inventory; product defects or failures;
unfavorable outcomes in clinical trials; inability to maintain our
culture as we grow; fluctuations in foreign currency exchange
rates; potential adverse regulatory actions; and the potential
impact of any acquisitions, mergers, dispositions, joint ventures
or investments we may make. These risks and uncertainties, as well
as others, are discussed in greater detail in our filings with the
Securities and Exchange Commission ("SEC"), including our Annual
Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on
February 22, 2024. There may be
additional risks of which we are not presently aware or that we
currently believe are immaterial which could have an adverse impact
on our business. Any forward-looking statements are based on our
current expectations, estimates and assumptions regarding future
events and are applicable only as of the dates of such statements.
We make no commitment to revise or update any forward-looking
statements in order to reflect events or circumstances that may
change.
|
Penumbra,
Inc.
|
|
Condensed
Consolidated Balance Sheets
|
|
(unaudited)
|
|
(in
thousands)
|
|
|
|
March 31,
2024
|
|
December 31,
2023
|
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
223,114
|
|
$
167,486
|
|
Marketable
investments
|
|
90,360
|
|
121,701
|
|
Accounts receivable,
net
|
|
191,989
|
|
201,768
|
|
Inventories
|
|
398,366
|
|
388,023
|
|
Prepaid expenses and other
current assets
|
|
31,194
|
|
36,424
|
|
Total current assets
|
|
935,023
|
|
915,402
|
|
Property and equipment,
net
|
|
75,744
|
|
72,691
|
|
Operating lease
right-of-use assets
|
|
185,845
|
|
188,756
|
|
Finance lease
right-of-use assets
|
|
30,234
|
|
31,092
|
|
Intangible assets,
net
|
|
68,421
|
|
71,056
|
|
Goodwill
|
|
166,103
|
|
166,270
|
|
Deferred
taxes
|
|
84,661
|
|
85,158
|
|
Other non-current
assets
|
|
33,814
|
|
25,880
|
|
Total assets
|
|
$
1,579,845
|
|
$
1,556,305
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
32,454
|
|
$
27,155
|
|
Accrued
liabilities
|
|
106,549
|
|
110,555
|
|
Current
operating lease liabilities
|
|
11,520
|
|
11,203
|
|
Current finance
lease liabilities
|
|
2,280
|
|
2,231
|
|
Total current liabilities
|
|
152,803
|
|
151,144
|
|
Non-current operating
lease liabilities
|
|
194,537
|
|
197,229
|
|
Non-current finance
lease liabilities
|
|
23,098
|
|
23,680
|
|
Other non-current
liabilities
|
|
5,876
|
|
5,308
|
|
Total liabilities
|
|
376,314
|
|
377,361
|
|
Stockholders'
equity:
|
|
|
|
|
|
Common
stock
|
|
39
|
|
39
|
|
Additional paid-in
capital
|
|
1,062,470
|
|
1,047,198
|
|
Accumulated other
comprehensive loss
|
|
(4,838)
|
|
(3,151)
|
|
Retained
earnings
|
|
145,860
|
|
134,858
|
|
Total stockholders'
equity
|
|
1,203,531
|
|
1,178,944
|
|
Total liabilities and
stockholders' equity
|
|
$
1,579,845
|
|
$
1,556,305
|
|
Penumbra,
Inc.
|
|
Condensed
Consolidated Statements of Operations
|
|
(unaudited)
|
|
(in thousands,
except share and per share amounts)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2024
|
|
2023
|
|
Revenue
|
|
$
278,655
|
|
$
241,398
|
|
Cost of
revenue
|
|
97,516
|
|
90,326
|
|
Gross
profit
|
|
181,139
|
|
151,072
|
|
Operating
expenses:
|
|
|
|
|
|
Research and
development
|
|
24,626
|
|
19,986
|
|
Sales, general and
administrative
|
|
144,412
|
|
123,078
|
|
Total operating
expenses
|
|
169,038
|
|
143,064
|
|
Income from
operations
|
|
12,101
|
|
8,008
|
|
Interest and other
income, net
|
|
2,525
|
|
644
|
|
Income before income
taxes
|
|
14,626
|
|
8,652
|
|
Provision for income
taxes
|
|
3,624
|
|
90
|
|
Net income
|
|
$
11,002
|
|
$
8,562
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
Basic
|
|
$
0.28
|
|
$
0.22
|
|
Diluted
|
|
$
0.28
|
|
$
0.22
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
Basic
|
|
38,717,334
|
|
38,186,342
|
|
Diluted
|
|
39,387,359
|
|
39,075,388
|
|
Penumbra,
Inc.
|
|
Reconciliation of
GAAP Operating Expenses and GAAP Income from Operations to Non-GAAP
Operating Expenses and Non-GAAP
Income from Operations1
|
|
(unaudited)
|
|
(in
thousands)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2024
|
|
2023
|
|
GAAP operating
expenses
|
|
$
169,038
|
|
$
143,064
|
|
GAAP operating expenses
includes the effect of the following items:
|
|
|
|
|
|
Non-recurring
litigation related expenses
|
|
4,823
|
|
—
|
|
Amortization of finite
lived intangible assets acquired
|
|
2,380
|
|
2,380
|
|
Non-GAAP operating
expenses
|
|
$
161,835
|
|
$
140,684
|
|
|
|
|
|
|
GAAP income from
operations
|
|
$
12,101
|
|
$
8,008
|
|
GAAP income from
operations includes the effect of the following items:
|
|
|
|
|
|
Non-recurring
litigation related expenses
|
|
4,823
|
|
—
|
|
Amortization of finite
lived intangible assets acquired
|
|
2,380
|
|
2,380
|
|
Non-GAAP income from
operations
|
|
$
19,304
|
|
$
10,388
|
|
|
|
|
|
|
1See
"Non-GAAP Financial Measures" for important information about our
use of non-GAAP measures.
|
|
Penumbra,
Inc.
|
|
Reconciliation of
GAAP Net Income and GAAP Diluted EPS to Non-GAAP Net Income and
Non-GAAP Diluted EPS1
|
|
(unaudited)
|
|
(in thousands,
except share and per share amounts)
|
|
|
|
Three Months
Ended
March 31,
2024
|
|
Three Months
Ended
March 31,
2023
|
|
|
Net
income
|
|
Diluted
EPS
|
|
Net
income
|
|
Diluted
EPS
|
|
GAAP net
income
|
|
$
11,002
|
|
$
0.28
|
|
$
8,562
|
|
$
0.22
|
|
GAAP net income
includes the effect of the following items:
|
|
|
|
|
|
|
|
|
|
Non-recurring
litigation related expenses
|
|
4,823
|
|
0.12
|
|
—
|
|
—
|
|
Amortization of finite
lived intangible assets acquired
|
|
2,380
|
|
0.06
|
|
2,380
|
|
0.06
|
|
Tax effect on the
non-GAAP adjustments above2
|
|
(1,736)
|
|
(0.04)
|
|
(558)
|
|
(0.01)
|
|
Excess tax benefits
related to stock compensation awards
|
|
(287)
|
|
(0.01)
|
|
(1,440)
|
|
(0.04)
|
|
Non-GAAP net
income
|
|
$
16,182
|
|
$
0.41
|
|
$
8,944
|
|
$
0.23
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted
EPS
|
|
|
|
$
0.28
|
|
|
|
$
0.22
|
|
Non-GAAP diluted
EPS
|
|
|
|
$
0.41
|
|
|
|
$
0.23
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding used to compute:
|
|
|
|
|
|
|
|
|
|
GAAP diluted
EPS
|
|
39,387,359
|
|
39,075,388
|
|
Non-GAAP diluted
EPS
|
|
39,387,359
|
|
39,075,388
|
|
|
|
|
|
|
1See
"Non-GAAP Financial Measures" for important information about our
use of non-GAAP measures.
|
|
2For the
three months ended March 31, 2024 and 2023, management used a
combined federal and state tax rate of 24.10% and 23.44%,
respectively, to compute the tax effect of non-GAAP
adjustments.
|
|
Penumbra,
Inc.
|
|
Reconciliation of
GAAP Net Income to Adjusted EBITDA and Adjusted EBITDA
Margin1
|
|
(unaudited)
|
|
(in thousands,
except for percentages)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2024
|
|
2023
|
|
GAAP net
income
|
|
$
11,002
|
|
$
8,562
|
|
Adjustments to GAAP net
income:
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
7,519
|
|
6,575
|
|
Interest income,
net
|
|
(2,891)
|
|
(554)
|
|
Provision for income
taxes
|
|
3,624
|
|
90
|
|
Stock-based
compensation expense
|
|
13,569
|
|
12,766
|
|
Non-recurring
litigation related expenses
|
|
4,823
|
|
—
|
|
Adjusted
EBITDA
|
|
$
37,646
|
|
$
27,439
|
|
|
|
|
|
|
Revenue
|
|
$
278,655
|
|
$
241,398
|
|
Adjusted
EBITDA
|
|
$
37,646
|
|
$
27,439
|
|
Adjusted EBITDA
margin
|
|
13.5 %
|
|
11.4 %
|
|
|
|
|
|
|
1See
"Non-GAAP Financial Measures" for important information about our
use of non-GAAP measures.
|
|
Penumbra,
Inc.
|
|
Reconciliation of
Revenue Growth by Geographic Regions to Constant Currency Revenue
Growth1
|
|
(unaudited)
|
|
(in thousands,
except for percentages)
|
|
|
|
Three Months Ended
March 31,
|
|
Reported
Change
|
|
FX
Impact
|
|
Constant Currency
Change
|
|
|
2024
|
|
2023
|
|
$
|
|
%
|
|
$
|
|
$
|
|
%
|
|
United
States
|
|
$ 209,644
|
|
$ 171,879
|
|
$
37,765
|
|
22.0 %
|
|
$
—
|
|
$
37,765
|
|
22.0 %
|
|
International
|
|
69,011
|
|
69,519
|
|
(508)
|
|
(0.7) %
|
|
(640)
|
|
(1,148)
|
|
(1.7) %
|
|
Total
|
|
$ 278,655
|
|
$ 241,398
|
|
$
37,257
|
|
15.4 %
|
|
$
(640)
|
|
$
36,617
|
|
15.2 %
|
|
Penumbra,
Inc.
|
|
Reconciliation of
Revenue Change by Product Categories and Geographic Regions to
Constant Currency Revenue Growth1
|
|
(unaudited)
|
|
(in thousands,
except for percentages)
|
|
|
|
Three Months Ended
March 31,
|
|
Reported
Change
|
|
FX
Impact
|
|
Constant Currency
Change
|
|
|
2024
|
|
2023
|
|
$
|
|
%
|
|
$
|
|
$
|
|
%
|
|
Thrombectomy
|
|
$
187,703
|
|
$ 144,980
|
|
$
42,723
|
|
29.5 %
|
|
$
(309)
|
|
$
42,414
|
|
29.3 %
|
|
Embolization and
Access
|
|
90,952
|
|
96,418
|
|
(5,466)
|
|
(5.7) %
|
|
(331)
|
|
(5,797)
|
|
(6.0) %
|
|
Total
|
|
$
278,655
|
|
$ 241,398
|
|
$
37,257
|
|
15.4 %
|
|
$
(640)
|
|
$
36,617
|
|
15.2 %
|
|
|
|
Three Months Ended
March 31,
|
|
Reported
Change
|
|
FX
Impact
|
|
Constant Currency
Change
|
|
|
2024
|
|
2023
|
|
$
|
|
%
|
|
$
|
|
$
|
|
%
|
|
Thrombectomy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
|
$
150,284
|
|
$
111,189
|
|
$
39,095
|
|
35.2 %
|
|
$
—
|
|
$
39,095
|
|
35.2 %
|
|
International
|
|
37,419
|
|
33,791
|
|
3,628
|
|
10.7 %
|
|
(309)
|
|
3,319
|
|
9.8 %
|
|
Total
Thrombectomy
|
|
187,703
|
|
144,980
|
|
42,723
|
|
29.5 %
|
|
(309)
|
|
42,414
|
|
29.3 %
|
|
Embolization and
Access
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
|
59,360
|
|
60,690
|
|
(1,330)
|
|
(2.2) %
|
|
|
|
(1,330)
|
|
(2.2) %
|
|
International
|
|
31,592
|
|
35,728
|
|
(4,136)
|
|
(11.6) %
|
|
(331)
|
|
(4,467)
|
|
(12.5) %
|
|
Total
Embolization and Access
|
|
90,952
|
|
96,418
|
|
(5,466)
|
|
(5.7) %
|
|
(331)
|
|
(5,797)
|
|
(6.0) %
|
|
Total
|
|
$
278,655
|
|
$
241,398
|
|
$
37,257
|
|
15.4 %
|
|
$
(640)
|
|
$
36,617
|
|
15.2 %
|
|
|
|
|
|
|
1See
"Non-GAAP Financial Measures" for important information about our
use of non-GAAP measures.
|
Investor Relations
Penumbra, Inc.
510-995-2461
investors@penumbrainc.com
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SOURCE Penumbra, Inc.