Penumbra (PEN) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $299.4 million, up 14.5% year-over-year, driven by strong thrombectomy product sales, while embolization and access products declined slightly.

• U.S. thrombectomy revenue grew 24.9%–25% year-over-year to $153.7 million, and international thrombectomy revenue rose 26% to $49.8 million.

• A $110.3 million non-cash impairment charge, including $33.4 million inventory write-down and $76.9 million in intangible and fixed asset impairments, was recorded for the Immersive Healthcare business.

• Net loss for Q2 2024 was $60.2 million, compared to net income of $19.0 million in Q2 2023, primarily due to the impairment charge.

• U.S. sales grew 16.8% to $218.2 million, while international sales increased 8.7% to $81.2 million, now representing 27.1% of total revenue.

Financial highlights

• Global thrombectomy revenue was $203.5 million, up 25.2% year-over-year; embolization and access revenue was $95.9 million, down 3.1% year-over-year, mainly due to a 10.8% drop in international sales.

• Non-GAAP gross margin was 65.5%, up 170 basis points year-over-year, while GAAP gross margin was 54.4% due to the impairment charge.

• Non-GAAP operating income was $31.7 million (10.6% of revenue), and adjusted EBITDA was $46.3 million (15.5% of revenue), both up year-over-year.

• GAAP net loss was $60.2 million (diluted EPS of $(1.55)), while non-GAAP net income was $25.2 million (diluted EPS of $0.64).

• Cash and marketable investments were $373.8 million as of June 30, 2024, up $26.2 million sequentially, with no debt.

Outlook and guidance

• 2024 revenue guidance lowered to $1.18–$1.2 billion, a $60 million reduction at midpoint, due to China headwinds, delayed European launches, Immersive Healthcare exit, and moderated U.S. thrombectomy growth.

• U.S. thrombectomy growth for 2024 now expected at 23–25% year-over-year.

• Non-GAAP gross margin expansion of 100–150 basis points and operating margin expansion of 100–200 basis points expected for 2024.

• 2025 expected to benefit from new product launches, improved comps in China and Europe, and abatement of 2024 headwinds.

• Management expects continued investment in product development and commercial expansion, with ongoing variability in quarterly results.