Penumbra Inc at Canaccord Genuity Growth Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: William Plovanic - Canaccord Genuity LLC - Analyst : Adam, Jason, thank you so much for joining us today, and thanks for the audience for being here. We'll start it out with the news this morning.

Question: William Plovanic - Canaccord Genuity LLC - Analyst : $200 million share buyback, $200 million buyback with $100 million already done. Just -- so any color behind that or anything you'd like to share regarding that?

Question: William Plovanic - Canaccord Genuity LLC - Analyst : Excellent. Good news to wake up to this morning for investors that's for sure. So let's dive into Q2 guidance, work through some of the moving pieces here. And this is a broad question. Do you think you've adequately lowered guidance so that we're a full reset to work out from here? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 13, 2024 / 1:00PM, PEN.N - Penumbra Inc at Canaccord Genuity Growth Conference I mean and just historically a lot of times companies -- by nature, you're optimistic. You have to be. And sometimes, as you run into some challenges, it takes one or two times before you finally get the final reset of numbers and then we can work off of from there. And that's why I asked the question.

Question: William Plovanic - Canaccord Genuity LLC - Analyst : So I'm going to keep asking about guidance even though I know we want to get to product. So do you think that the second half of '24 -- will be the longer-term low point in terms of year-over-year growth because we're looking at, I think, Street high single-digit for both quarters or maybe touching 10% -- and -- where do we go longer term? Is this a 15% grower? How do we think about just -- how do you think about it? I mean, I think -- and we'll come back to just the CAV technology in general. But --

Question: William Plovanic - Canaccord Genuity LLC - Analyst : And as we look at the US thrombectomy business, and that's where I think some of the change was -- and you framed it as a guidance philosophy and being more conservative. How much was this -- is really a philosophy change versus perhaps not seeing the growth or continued year-over-year pricing you had anticipated? And as I think of the VTE market just going forward, what are the barriers to penetration? So the question really spans as I look at you and your competitors, it seems like maybe there's a slight deceleration in the market itself.

Question: William Plovanic - Canaccord Genuity LLC - Analyst : And are we hitting a point that we need something else to get another inflection point. It's going to like the low-hanging fruit early adopters who have been picked. And where are we in that market?

Question: William Plovanic - Canaccord Genuity LLC - Analyst : Let's touch on that on just the CAVT technology. I think -- you're the only one that offers that in the market today, I believe.

Question: William Plovanic - Canaccord Genuity LLC - Analyst : Who do you see coming down potentially competitive? And then just I think one of the things is with that technology it's software iteration. So you can always add a bigger tube, you're not limited by here just the mechanical aspects of it. Do you see -- if there's any feedback that we've gotten from the physicians is I wish they had a bigger tube per PE. Is that something -- I think if I go back three, four years ago, when you're at 12 French, you're like, yes, we don't know if we can get to 16, now you get a 16 French, is that just hard work and software durations and you'll get to an 18 or 20 or 22. How should we think about that?

Question: William Plovanic - Canaccord Genuity LLC - Analyst : And do you see it -- we've seen a lot of smaller companies that are coming to market, and they're coming with mechanical, more similar to some of your competitors than the CAVT technology. As you see those come into accounts, which I'm -- whether it's a lot or a little. Do you think that you're more at risk? Or would you say the competitors are more at risk? Who's given just the design of the technology and how do you do that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 13, 2024 / 1:00PM, PEN.N - Penumbra Inc at Canaccord Genuity Growth Conference

Question: William Plovanic - Canaccord Genuity LLC - Analyst : And then as we look at the thrombectomy business in general, especially on the peripheral side, do you think you get the VTE, the arterial, the coronary, how do we think about the growth of those different areas? Because I mean you're a broader player than most. And so when -- I think a lot of investors bucket all of that into one bucket and don't really understand how diverse it is.

Question: William Plovanic - Canaccord Genuity LLC - Analyst : I think you talked about arterial and you're above the knee and going below the knee. Is that a smaller catheter? Or is that a software change and it sounds like that might be one of the three remaining if I can poke a little there.

Question: William Plovanic - Canaccord Genuity LLC - Analyst : Yeah. And we have about a minute left. And I just wanted to get to China and then just the whole immersive health. In China, a lot of dynamics going on, different revenue streams, just simply like -- what needs to happen to get through this? I mean the guidance, where are we and when do we get to -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 13, 2024 / 1:00PM, PEN.N - Penumbra Inc at Canaccord Genuity Growth Conference

Question: William Plovanic - Canaccord Genuity LLC - Analyst : I think to finish up because we're out of time it's just -- with the recent changes in guidance with everything going on, obviously, the stocks fall back, you announced the buyback. What do you think investors are missing?