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 growth, while embolization and access products declined slightly.

• U.S. thrombectomy revenue grew 24.9%–25% year-over-year to $153.7 million, with international thrombectomy up 8.7%–26% to $49.8 million.

• Recorded a $110.3 million non-cash impairment charge for Immersive Healthcare, including $33.4 million inventory write-down and $76.9 million in intangible and fixed asset impairments.

• 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.

• Cash and marketable investments rose to $373.8 million as of June 30, 2024, up from $347.6 million at March 31, 2024.

Financial highlights

• 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); adjusted EBITDA reached $46.3 million (15.5% of revenue).

• 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).

• Operating expenses were $243.8 million, mainly from the impairment charge and higher R&D and SG&A costs.

• R&D expenses were $24.9 million; SG&A expenses were $141.9 million for Q2 2024.

Outlook and guidance

• 2024 revenue guidance lowered to $1.18–$1.2 billion, a $60 million reduction at midpoint, reflecting headwinds in China, Europe, Immersive Healthcare, and U.S. thrombectomy.

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

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

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

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