Penumbra, Inc. Reports Fourth Quarter and Full Year 2023 Financial Results

Rhea-AI Summary

Penumbra, Inc. (PEN) reported strong financial results for Q4 and full year 2023, showing revenue growth of 28.7% and 25.0% respectively. The company's income from operations and net income also saw significant increases. Penumbra projects total revenue growth of 16% to 20% for 2024, with positive expectations for U.S. thrombectomy growth and gross margin expansion.

Positive

• Strong revenue growth of 28.7% in Q4 and 25.0% for full year 2023 compared to the previous year.
• Income from operations and net income showed substantial increases in both Q4 and full year 2023.
• Penumbra projects total revenue growth of 16% to 20% for 2024, with a focus on U.S. thrombectomy growth and gross margin expansion.

Negative

• None.

Insights

Financial Analyst

The reported financial results by Penumbra, Inc. show a robust performance with a significant revenue increase of 28.7% for Q4 2023 and 25.0% for the full year, outpacing the previous year's growth. The thrombectomy product line is a standout, with a 42.4% increase in Q4 and 32.5% for the full year, signaling strong market demand and effective sales execution, particularly in the U.S. market. The company's net income and adjusted EBITDA margins also reflect a healthy profitability trajectory. Looking ahead, the projected revenue growth of 16% to 20% for 2024, coupled with expected margin expansions, indicates management's confidence in sustained growth and operational efficiency improvements.

From an investor's perspective, the financial health of Penumbra is reinforced by the increase in cash and marketable investments, which suggests a solid liquidity position. The strategic changes in product revenue categories could enhance transparency and provide more granular insights into the company's performance. However, it is essential to monitor how these changes align with industry reporting standards and investor expectations.

Market Research Analyst

Penumbra's impressive growth in the thrombectomy segment underscores the company's competitive positioning within the medical device industry. The U.S. thrombectomy growth projection of 27% to 30% for 2024 reflects not only the success of their Computer-Assisted Vacuum Thrombectomy (CAVT) products but also points to the potential market size and adoption rates for innovative therapies in vascular health. The strategic focus on thrombectomy and embolization and access products, aligns with industry trends towards minimally invasive procedures that offer better outcomes and quicker recovery times for patients.

Penumbra's operational focus on gross margin and non-GAAP operating margin expansion through productivity improvements and fixed cost leveraging indicates a maturing operational model. The company's ability to expand margins while growing revenue at a double-digit rate is a positive sign for its competitive strength and operational leverage.

Medical Device Industry Analyst

The financial results from Penumbra reflect a broader industry trend towards innovation in the vascular and neuro intervention markets. The company's gross profit margin increase suggests a successful strategy in optimizing its product mix and production efficiencies, which is critical in an industry where technology advancements and cost management are key drivers of competitiveness. The significant investment in R&D, as shown by the year-over-year increase in expenses, also speaks to the company's commitment to staying at the forefront of medical device innovation.

The acquisition-related expenses and their exclusion from non-GAAP measures are common in the industry, as they provide a clearer picture of the company's operational performance by removing one-time costs. However, investors should consider both GAAP and non-GAAP measures when evaluating the company's financial health and future prospects.

ALAMEDA, Calif., Feb. 22, 2024 /PRNewswire/ -- Penumbra, Inc. (NYSE: PEN), a global healthcare company focused on innovative therapies, today reported financial results for the fourth quarter and full year ended December 31, 2023.

Financial Highlights:

• Revenue of $284.7 million for the fourth quarter of 2023, an increase of 28.7% or 27.9% in constant currency¹ compared to the fourth quarter of 2022. Revenue of $1,058.5 million for the full year 2023, an increase of 25.0% or 24.7% in constant currency¹ compared to the full year 2022.
   
• Revenue of $190.8 million from sales of our thrombectomy products in the fourth quarter of 2023, an increase of 42.4%, compared to the fourth quarter of 2022. Full year revenue of $677.3 million from sales of our thrombectomy products, an increase of 32.5% compared to the full year 2022.
    
• Income from operations of $35.0 million and Non-GAAP income from operations¹ of $37.4 million in the fourth quarter of 2023.
    
• Income from operations of $73.6 million and Non-GAAP income from operations¹ of $101.3 million for the full year 2023.
    
• Net income of $54.2 million and adjusted EBITDA¹ of $53.4 million or adjusted EBITDA margin of 18.8% in the fourth quarter of 2023. Net income of $91.0 million and adjusted EBITDA¹ of $170.6 million or adjusted EBITDA margin of 16.1% for the full year 2023.
    
• Cash and marketable investments increased $40.3 million in the fourth quarter of 2023 compared to the third quarter of 2023 driven by an increase in profitability and improvements in working capital.
    
• In 2024, Penumbra projects total revenue growth of 16% to 20%. The Company projects U.S. thrombectomy growth of 27% to 30%. Gross margin expansion is expected to be 100 to 150 basis points, and non-GAAP operating margin expansion is expected to be 100 to 200 basis points, compared to full year 2023.

In the fourth quarter of 2023, the Company made changes to its product revenue categories to provide investors with more meaningful information to understand the performance of its business and strategic direction. The Company will now report its product revenues in the following categories: thrombectomy and embolization and access. The Company is also providing its neuro and vascular product revenues for the fourth quarter and full year 2023 for the last time.

As a one-time appendix to this press release, the Company has included its previously reported revenue for each quarter and year-to-date period of 2023 and 2022 reclassified into these new product categories, including supplemental geographic information.

Fourth Quarter 2023 Financial Results
Total revenue increased to $284.7 million for the fourth quarter of 2023 compared to $221.2 million for the fourth quarter of 2022, an increase of 28.7%, or 27.9% in constant currency¹. The United States represented 71.5% of total revenue and international represented 28.5% of total revenue for the fourth quarter of 2023. Revenue from the U.S. increased 29.6% while revenue from our international regions increased 26.4%, or 23.5% in constant currency¹. We achieved record revenue from the sales of our global thrombectomy products which grew to $190.8 million for the fourth quarter of 2023, an increase of 42.4%, or 41.6% in constant currency¹ over the same period a year ago, driven primarily by the sales of our U.S. thrombectomy products which increased by 46.4% over the same period a year ago. Revenue from the sales of our global embolization and access products grew to $93.9 million for the fourth quarter of 2023, an increase of 7.6%, or 6.7% in constant currency¹ from the same period a year ago.

Gross profit for the fourth quarter of 2023 was $187.0 million, or 65.7% of total revenue compared to $138.4 million, or 62.6% of total revenue, for the fourth quarter of 2022. 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, were $152.0 million, or 53.4% of total revenue for the fourth quarter of 2023, and $133.6 million, or 60.4% of total revenue for the fourth quarter of 2022. Excluding the charge noted above for both periods, total non-GAAP operating expenses¹ were $149.6 million, or 52.5% of total revenue for the fourth quarter of 2023, and $131.2 million, or 59.3% of total revenue for the fourth quarter of 2022.

Income from operations was $35.0 million for the fourth quarter of 2023 compared to income from operations of $4.8 million for the fourth quarter of 2022. Excluding the amortization expense of finite lived intangible assets acquired in connection with the Sixense acquisition of $2.4 million for both periods, non-GAAP income from operations¹ was $37.4 million for the fourth quarter of 2023 compared to $7.2 million for the fourth quarter of 2022.

Full Year 2023 Financial Results
Total revenue increased to $1,058.5 million for the year ended December 31, 2023 compared to $847.1 million for the year ended December 31, 2022, an increase of 25.0%, or 24.7% in constant currency¹. The United States represented 71.5% of total revenue and international represented 28.5% of total revenue for the year ended December 31, 2023. Revenue from the U.S. increased 28.0% while revenue from our international regions increased 18.0%, or 17.3% in constant currency¹. Revenue from the sales of our global thrombectomy products grew to $677.3 million for the year ended December 31, 2023, an increase of 32.5%, or 32.3% in constant currency¹ over the same period a year ago, driven primarily by sales of our U.S. vascular thrombectomy products which increased 45.2% over the same period a year ago. Revenue from the sales of our global embolization and access products grew to $381.2 million for the year ended December 31, 2023, an increase of 13.4%, or 13.2% in constant currency¹ compared to the year ended December 31, 2022.

Gross profit for the year ended December 31, 2023 was $682.6 million, or 64.5% of total revenue, compared to $535.2 million, or 63.2% of total revenue, for the year ended December 31, 2022. 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 for the year ended December 31, 2023 were $609.1 million, or 57.5% of total revenue, which included a one-time $18.2 million expense associated with the acquisition of in-process research and development ("IPR&D") and a $9.5 million amortization expense of finite lived intangible assets acquired in connection with the Sixense acquisition. This compares to total operating expenses of $529.1 million, or 62.5% of total revenue, for the year ended December 31, 2022, which included a $8.3 million amortization expense of finite lived intangible assets acquired in connection with the Sixense acquisition. Excluding the charges noted above, total non-GAAP operating expenses¹ were $581.4 million, or 54.9% of total revenue during the year ended December 31, 2023, and $520.8 million, or 61.5% of total revenue during the year ended December 31, 2022. R&D expenses were $84.4 million for the year ended December 31, 2023, compared to $79.4 million for the year ended December 31, 2022. SG&A expenses were $506.5 million for the year ended December 31, 2023, compared to $449.7 million for the year ended December 31, 2022.

Income from operations was $73.6 million for the year ended December 31, 2023 compared to income from operations of $6.1 million for the year ended December 31, 2022. Excluding the one-time expense associated with the acquired IPR&D of $18.2 million and the amortization expense of finite lived intangible assets acquired in connection with the Sixense acquisition of $9.5 million, non-GAAP income from operations¹ was $101.3 million for the year ended December 31, 2023. This compares to non-GAAP income from operations¹ of $14.4 million for the year ended December 31, 2022, excluding the amortization expense of finite lived intangible assets acquired in connection with the Sixense acquisition of $8.3 million.

Full Year 2024 Financial Outlook
The Company projects 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 projects 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 expects 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 financial results for the fourth quarter and year ended December 31, 2023 after market close on Thursday, February 22, 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: 4604622), 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. The Penumbra logo is a trademark of Penumbra, Inc. 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 one-time expense associated with the acquisition of IPR&D in the third quarter of 2023;
• 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 or tax deficiencies associated with share-based compensation arrangements; and
• the release of the valuation allowance associated with Federal R&D tax credits and partial release of the valuation allowance associated with California deferred tax assets.

Adjusted EBITDA. The Company's adjusted EBITDA reflects the exclusion from GAAP net income (loss) of:

• non-cash operating charges such as stock-based compensation and depreciation and amortization; and
• non-operating items such as the one-time expense associated with the acquisition of IPR&D, interest income, interest expense, and provision for (benefit from) income taxes.

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 one-time expense associated with the acquisition of IPR&D in the third quarter of 2023, the amortization expense of finite lived intangible assets acquired in connection with the Sixense acquisition, the excess tax benefits or tax deficiencies associated with share-based compensation arrangements, and the release of the valuation allowance release associated with Federal R&D tax credits and partial release of the valuation allowance associated with California deferred tax assets. 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 and non-operating items such as the one-time expense associated with the acquisition of IPR&D, interest income, interest expense, and provision for (benefit from) income taxes.

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, which we expect to file with the SEC on or before February 29, 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)
		December 31,
		2023		2022
Assets
Current assets:
Cash and cash equivalents		$           167,486		$             69,858
Marketable investments		121,701		118,172
Accounts receivable, net		201,768		203,384
Inventories		388,023		334,006
Prepaid expenses and other current assets		36,424		30,279
Total current assets		915,402		755,699
Property and equipment, net		72,691		65,015
Operating lease right-of-use assets		188,756		192,636
Finance lease right-of-use assets		31,092		33,323
Intangible assets, net		71,056		81,161
Goodwill		166,270		166,046
Deferred taxes		85,158		64,213
Other non-current assets		25,880		12,793
Total assets		$        1,556,305		$        1,370,886
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$             27,155		$             26,679
Accrued liabilities		110,555		106,300
Current operating lease liabilities		11,203		10,033
Current finance lease liabilities		2,231		1,920
Total current liabilities		151,144		144,932
Non-current operating lease liabilities		197,229		198,955
Non-current finance lease liabilities		23,680		24,865
Other non-current liabilities		5,308		3,276
Total liabilities		377,361		372,028
Stockholders' equity:
Preferred stock		—		—
Common stock		39		38
Additional paid-in capital		1,047,198		963,040
Accumulated other comprehensive loss		(3,151)		(8,124)
Retained earnings		134,858		43,904
Total stockholders' equity		1,178,944		998,858
Total liabilities and stockholders' equity		$        1,556,305		$        1,370,886

 

 

Penumbra, Inc. Condensed Consolidated Statements of Operations (unaudited) (in thousands, except share and per share amounts)
		Three Months Ended December 31,				Year Ended December 31,
		2023		2022		2023		2022
Revenue		$           284,679		$           221,216		$        1,058,522		$           847,133
Cost of revenue		97,687		82,789		375,879		311,926
Gross profit		186,992		138,427		682,643		535,207
Operating expenses:
Research and development		21,942		17,964		84,423		79,407
Sales, general and administrative		130,021		115,630		506,454		449,718
Acquired in-process research and development		—		—		18,215		—
Total operating expenses		151,963		133,594		609,092		529,125
Income from operations		35,029		4,833		73,551		6,082
Interest and other income (expense), net		3,129		2,295		6,099		(2,190)
Income before income taxes		38,158		7,128		79,650		3,892
(Benefit from) provision for income taxes		(16,060)		3,251		(11,304)		5,894
Consolidated net income (loss)		$             54,218		$                3,877		$             90,954		$              (2,002)
Net income (loss) attributable to Penumbra, Inc.		$             54,218		$                3,877		$             90,954		$              (2,002)
Net income (loss) attributable to Penumbra, Inc. per share:
Basic		$                  1.40		$                  0.10		$                  2.37		$                (0.05)
Diluted		$                  1.38		$                  0.10		$                  2.32		$                (0.05)
Weighted average shares outstanding:
Basic		38,628,565		38,030,344		38,401,171		37,841,874
Diluted		39,291,044		38,896,940		39,216,564		37,841,874

 

 

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 December 31,				Year Ended December 31,
		2023		2022		2023		2022
GAAP operating expenses		$             151,963		$             133,594		$             609,092		$             529,125
GAAP operating expenses includes the effect of the following items:
Amortization of finite lived intangible assets acquired2		2,380		2,380		9,519		8,329
Acquired IPR&D3		—		—		18,215		—
Non-GAAP operating expenses		$             149,583		$             131,214		$             581,358		$             520,796
GAAP income from operations		$               35,029		$                 4,833		$               73,551		$                 6,082
GAAP income from operations includes the effect of the following items:
Amortization of finite lived intangible assets acquired2		2,380		2,380		9,519		8,329
Acquired IPR&D3		—		—		18,215		—
Non-GAAP income from operations		$               37,409		$                 7,213		$             101,285		$               14,411

 

_______________________________ 1See "Non-GAAP Financial Measures" for important information about our use of non-GAAP measures.

2Amortization expense for the year ended December 31, 2023 includes an additional $1.2 million relative to the prior year-to-date period, as the company reclassified the $20.8 million in-process research and development ("IPR&D") asset acquired in connection with the Sixense acquisition to a finite-lived developed technology intangible asset upon the completion of the IPR&D project during the three months ended September 30, 2022.

3Represents a one-time $18.2 million expense associated with the acquisition of IPR&D during the three months ended September 30, 2023.

 

 

Penumbra, Inc. Reconciliation of GAAP Net Income (Loss) 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 December 31, 2023				Three Months Ended December 31, 2022				Year Ended December 31, 2023				Year Ended December 31, 2022
		Net income		Diluted EPS		Net income		Diluted EPS		Net income		Diluted EPS		Net (loss) income		Diluted EPS
GAAP net income (loss)		$    54,218		$       1.38		$      3,877		$       0.10		$    90,954		$       2.32		$    (2,002)		$      (0.05)
GAAP net income (loss) includes the effect of the following items:
Amortization of finite lived intangible assets acquired2		2,380		0.06		2,380		0.06		9,519		0.25		8,329		0.21
Acquired IPR&D3		—		—		—		—		18,215		0.46		—		—
Tax effect on the non-GAAP adjustments above4		(573)		(0.01)		(558)		(0.01)		(2,293)		(0.06)		(1,952)		(0.05)
(Excess tax benefits) tax deficiencies related to  stock compensation awards		(648)		(0.02)		341		0.01		(9,020)		(0.23)		2,007		0.05
Valuation allowance release5		(25,493)		(0.65)		—		—		(25,493)		(0.65)		—		—
Non-GAAP net income		$    29,884		$       0.76		$      6,040		$       0.16		$    81,882		$       2.09		$      6,382		$       0.16
GAAP diluted EPS				$       1.38				$       0.10				$       2.32				$      (0.05)
Non-GAAP diluted EPS6				$       0.76				$       0.16				$       2.09				$       0.16
Weighted average shares outstanding used to compute:
GAAP diluted EPS		39,291,044				38,896,940				39,216,564				37,841,874
Non-GAAP diluted EPS6		39,291,044				38,896,940				39,216,564				38,789,291

 

_______________________________ 1See "Non-GAAP Financial Measures" for important information about our use of non-GAAP measures.

2Amortization expense for the year ended December 31, 2023 includes an additional $1.2 million relative to the prior year-to-date period, as the company reclassified the $20.8 million IPR&D asset acquired in connection with the Sixense acquisition to a finite-lived developed technology intangible asset upon the completion of the IPR&D project during the three months ended September 30, 2022.

3Represents a one-time $18.2 million expense associated with the acquisition of IPR&D during the three months ended September 30, 2023.

4For the three and twelve months ended December 31, 2023, management used a combined federal and state tax rate of 24.09% to compute the tax effect of non-GAAP measures. For the three and twelve months ended December 31, 2022, management used a combined federal and state tax rate of 23.44% to compute the tax effect of non-GAAP measures.

5The Company released a valuation allowance against its Federal R&D tax credits and partially released a valuation allowance against its California deferred tax assets, resulting in a tax benefit of $25.5 million during the three and twelve months ended December 31, 2023.

6For the purposes of calculating Non-GAAP diluted EPS for the year ended December 31, 2022, non-GAAP diluted weighted average shares outstanding of 38,789,291 was used, as the Company had non-GAAP net income during the period.

 

 

Penumbra, Inc. Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA and Adjusted EBITDA Margin1 (unaudited) (in thousands, except for percentages)
		Three Months Ended December 31,				Year Ended December 31,
		2023		2022		2023		2022
GAAP net income (loss)		$          54,218		$            3,877		$          90,954		$          (2,002)
Adjustments to GAAP net income (loss):
Depreciation and amortization expense		7,039		6,441		27,257		24,321
Interest income, net		(2,570)		(299)		(5,086)		(137)
(Benefit from) provision for income taxes		(16,060)		3,251		(11,304)		5,894
Stock-based compensation expense		10,791		9,997		50,516		37,378
Acquired IPR&D2		—		—		18,215		—
Adjusted EBITDA		$          53,418		$          23,267		$        170,552		$          65,454
Revenue		$        284,679		$        221,216		$    1,058,522		$        847,133
Adjusted EBITDA		$          53,418		$          23,267		$        170,552		$          65,454
Adjusted EBITDA margin		18.8 %		10.5 %		16.1 %		7.7 %

 

_______________________________ 1See "Non-GAAP Financial Measures" for important information about our use of non-GAAP measures.

2Represents a one-time $18.2 million expense associated with the acquisition of IPR&D during the three months ended September 30, 2023.

 

Penumbra, Inc. Reconciliation of Revenue Change by Geographic Regions to Constant Currency Revenue Growth1 (unaudited) (in thousands, except for percentages)
		Three Months Ended December 31,				Reported Change				FX Impact		Constant Currency Change
		2023		2022		$		%		$		$		%
United States		$       203,684		$       157,132		$         46,552		29.6 %		$                —		$         46,552		29.6 %
International		80,995		64,084		16,911		26.4 %		(1,830)		15,081		23.5 %
Total		$       284,679		$       221,216		$         63,463		28.7 %		$         (1,830)		$         61,633		27.9 %
		Year Ended December 31,				Reported Change				FX Impact		Constant Currency Change
		2023		2022		$		%		$		$		%
United States		$       757,151		$       591,715		$       165,436		28.0 %		$                —		$       165,436		28.0 %
International		301,371		255,418		45,953		18.0 %		(1,790)		44,163		17.3 %
Total		$    1,058,522		$       847,133		$       211,389		25.0 %		$         (1,790)		$       209,599		24.7 %

 

 

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 December 31,				Reported Change				FX Impact		Constant Currency Change
		2023		2022		$		%		$		$		%
Thrombectomy		$       190,780		$       133,963		$         56,817		42.4 %		$         (1,025)		$         55,792		41.6 %
Embolization and Access		93,899		87,253		6,646		7.6 %		(805)		5,841		6.7 %
Total		$       284,679		$       221,216		$         63,463		28.7 %		$         (1,830)		$         61,633		27.9 %
		Year Ended December 31,				Reported Change				FX Impact		Constant Currency Change
		2023		2022		$		%		$		$		%
Thrombectomy		$       677,343		$       511,137		$       166,206		32.5 %		$         (1,044)		$       165,162		32.3 %
Embolization and Access		381,179		335,996		45,183		13.4 %		(746)		44,437		13.2 %
Total		$    1,058,522		$       847,133		$       211,389		25.0 %		$         (1,790)		$       209,599		24.7 %
		Three Months Ended December  31,				Change				FX Impact		Constant Currency Change
		2023		2022		$		%		$		$		%
Thrombectomy
United States		$      141,891		$         96,890		$         45,001		46.4 %		$                —		$         45,001		46.4 %
International		48,889		37,073		11,816		31.9 %		(1,025)		10,791		29.1 %
Total Thrombectomy		190,780		133,963		56,817		42.4 %		(1,025)		55,792		41.6 %
Embolization and Access
United States		61,793		60,242		1,551		2.6 %		—		1,551		2.6 %
International		32,106		27,011		5,095		18.9 %		(805)		4,290		15.9 %
Total Embolization and Access		93,899		87,253		6,646		7.6 %		(805)		5,841		6.7 %
Total		$      284,679		$       221,216		$         63,463		28.7 %		$         (1,830)		$         61,633		27.9 %
		Year Ended December  31,				Change				FX Impact		Constant Currency Change
		2023		2022		$		%		$		$		%
Thrombectomy
United States		$      509,886		$       370,617		$       139,269		37.6 %		$                —		$       139,269		37.6 %
International		167,457		140,520		26,937		19.2 %		(1,044)		25,893		18.4 %
Total Thrombectomy		677,343		511,137		166,206		32.5 %		(1,044)		165,162		32.3 %
Embolization and Access
United States		247,265		221,098		26,167		11.8 %		—		26,167		11.8 %
International		133,914		114,898		19,016		16.6 %		(746)		18,270		15.9 %
Total Embolization and Access		381,179		335,996		45,183		13.4 %		(746)		44,437		13.2 %
Total		$   1,058,522		$       847,133		$       211,389		25.0 %		$         (1,790)		$       209,599		24.7 %
		Three Months Ended December 31,				Reported Change				FX Impact		Constant Currency Change
		2023		2022		$		%		$		$		%
Vascular		$       185,506		$       129,676		$         55,830		43.1 %		$            (513)		$         55,317		42.7 %
Neuro		99,173		91,540		7,633		8.3 %		(1,317)		6,316		6.9 %
Total		$       284,679		$       221,216		$         63,463		28.7 %		$         (1,830)		$         61,633		27.9 %
		Year Ended December 31,				Reported Change				FX Impact		Constant Currency Change
		2023		2022		$		%		$		$		%
Vascular		$       652,446		$       499,389		$       153,057		30.6 %		$              (45)		$       153,012		30.6 %
Neuro		406,076		347,744		58,332		16.8 %		(1,745)		56,587		16.3 %
Total		$    1,058,522		$       847,133		$       211,389		25.0 %		$         (1,790)		$       209,599		24.7 %

 

_______________________________ 1See "Non-GAAP Financial Measures" for important information about our use of non-GAAP measures.

 

Penumbra, Inc. Appendix Reconciliation of Revenue by Product Categories for Thrombectomy and Embolization and Access Products (in thousands)
		Three Months Ended March 31, 2023		Three Months Ended June 30, 2023		Three Months Ended September 30, 2023		Three Months Ended December 31, 2023
Thrombectomy
United States		$                     111,189		$                     123,050		$                     133,755		$                     141,891
International		33,791		39,452		45,325		48,889
Total Thrombectomy		144,980		162,502		179,080		190,780
Embolization and Access
United States		60,690		63,722		61,061		61,793
International		35,728		35,275		30,805		32,106
Total Embolization and Access		96,418		98,997		91,866		93,899
Total		$                     241,398		$                     261,499		$                     270,946		$                     284,679
		Three Months Ended March 31, 2023		Six Months Ended June 30, 2023		Nine Months Ended September 30, 2023		Year Ended  December 31, 2023
Thrombectomy
United States		$                     111,189		$                     234,239		$                     367,994		$                     509,886
International		33,791		73,243		118,569		167,457
Total Thrombectomy		144,980		307,482		486,563		677,343
Embolization and Access
United States		60,690		124,412		185,473		247,265
International		35,728		71,003		101,807		133,914
Total Embolization and Access		96,418		195,415		287,280		381,179
Total		$                     241,398		$                     502,897		$                     773,843		$                  1,058,522
		Three Months Ended March 31, 2022		Three Months Ended June 30, 2022		Three Months Ended September 30, 2022		Three Months Ended December 31, 2022
Thrombectomy
United States		$                       92,263		$                       87,329		$                       94,136		$                       96,890
International		31,026		36,802		35,619		37,073
Total Thrombectomy		123,289		124,131		129,755		133,963
Embolization and Access
United States		52,045		54,127		54,683		60,242
International		28,561		30,086		29,240		27,011
Total Embolization and Access		80,606		84,213		83,923		87,253
Total		$                     203,895		$                     208,344		$                     213,678		$                     221,216
		Three Months Ended March 31, 2022		Six Months Ended June 30, 2022		Nine Months Ended September 30, 2022		Year Ended  December 31, 2022
Thrombectomy
United States		$                     92,263		$                   179,592		$                   273,728		$                   370,617
International		31,026		67,828		103,446		140,520
Total Thrombectomy		123,289		247,420		377,174		511,137
Embolization and Access
United States		52,045		106,172		160,855		221,098
International		28,561		58,647		87,888		114,898
Total Embolization and Access		80,606		164,819		248,743		335,996
Total		$                   203,895		$                   412,239		$                   625,917		$                   847,133

 

 

Investor Relations
Penumbra, Inc.
510-995-2461
investors@penumbrainc.com

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FAQ

What was Penumbra's revenue for the fourth quarter of 2023?

Penumbra reported revenue of $284.7 million for the fourth quarter of 2023, showing an increase of 28.7% compared to the same period in 2022.

How much did Penumbra's revenue grow for the full year 2023?

Penumbra's revenue for the full year 2023 was $1,058.5 million, reflecting a growth of 25.0% compared to 2022.

What was the income from operations for Penumbra in the fourth quarter of 2023?

Penumbra's income from operations was $35.0 million in the fourth quarter of 2023, a significant increase compared to the same period in 2022.

What is Penumbra's projected total revenue growth for 2024?

Penumbra projects total revenue growth of 16% to 20% for 2024 compared to 2023.

What is the focus of Penumbra's growth strategy for 2024?

Penumbra's growth strategy for 2024 includes a focus on U.S. thrombectomy growth and gross margin expansion.

How did Penumbra's gross profit margin change in 2023 compared to 2022?

Penumbra's gross profit margin for 2023 was 64.5% of total revenue, showing improvement compared to 63.2% in 2022.