Penumbra Inc Q3 2024 Earnings Call Summary

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

Question: Richard Newitter - Truist Securities - Analyst : Hi, thanks for taking the question. Maybe just to start off on the US. Thrombectomy was a healthy 22%. I think you said that your US Venus or VTE was 32%. Maybe could you just go over the US Neuro thrombectomy piece, if I might calculation and it might be wrong, but I would suggest a pretty big deceleration in the third quarter. Is that right? And how should we think about the trend there and going forward?

Question: Richard Newitter - Truist Securities - Analyst : Okay. Sorry, that's my math. So I apologize that I congratulate the very solid US Neuro growth through. I guess maybe just on the international piece and your view of recovery for those regions and as we look forward into '25, and it seems like the international business continues to be somewhat unpredictable. So what's your visibility there? And how do we think about new product contribution in some of the areas that are just launching in with the new products to offset that? Thank you.

Question: Robbie Marcus - J.P. Morgan Securities LLC - Analyst : Thanks for taking the questions and congrats on a nice quarter here. Two for me, first wanted to ask on the margin expansion. Once again came in nice. We saw some upside there, especially on EPS. How should we think about your ability to continue to drive this margin expansion? Is it one of these things that 100 basis points to 200 basis points is a good range to use along? Is that thrombectomy continues to grow the elevated levels? Or is there something one-time in '24?

Question: Robbie Marcus - J.P. Morgan Securities LLC - Analyst : I was thinking operating margin, so you got both of them. I appreciate that.

Question: Robbie Marcus - J.P. Morgan Securities LLC - Analyst : I really appreciate it. And then on just came back from TCT today and we saw yesterday that Peerless data from your competitor. And I guess the question is, do you think that's going to be viewed by the clinical community as specific to your competitor? Or do you think that's going to be applied to contact me and general and translate to your business as well?

Question: Joanne Wuensch - Citigroup Global Markets Inc. - Analyst : Thank you very much. I actually have two quick questions. up on front. Can you walk us through your steps to get to your 80% gross margin goals over the next 18 months. How much of that is coming from real or the renamed label for that or something else? And then my second question has to do with underbulk, congratulations on that completion of the clinical trial and the filing. But I'm curious about the steps to commercialization and how you think about uptake?

Question: Joanne Wuensch - Citigroup Global Markets Inc. - Analyst : Thank you. Sorry, if I set your goal is too high.

Question: Michael Sarcone - Jefferies LLC - Analyst : Just first one for me. A really nice growth in USDTE. Could you maybe talk to us about where you think your share is shaking out of profitable each day?

Question: Michael Sarcone - Jefferies LLC - Analyst : Got it. That's helpful, Adam. And just my follow-up, Bolt 6x and Bolt 12, just got FDA clearance. You have to go through that processes for each account to start selling those. Can you just talk about that process? And then maybe anything on pricing and what it does for economics on the P&L?

Question: Mike Kratky - Leerink Partners LLC - Analyst : Hi, everyone. Thanks for taking your questions. On the arterial side, can you provide some more specifics on your US arterial thrombectomy growth during 3Q? And if the really strong momentum you've seen to date in that segment continued? And then just as a follow-up, was there anything specific to call out in 3Q in that segment that may have led to any deviation in the recent growth you've seen, if any? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 30, 2024 / 8:30PM, PEN.N - Q3 2024 Penumbra Inc Earnings Call

Question: Mike Kratky - Leerink Partners LLC - Analyst : Understood. Thanks for the color. Then maybe just one quick one. In terms of the BTK side of the world, do you think about that as more of a market expansion story? Or is that something that you think is probably going to be more of an increased utilization.

Question: Pito Chickering - Deutsche Bank Securities Inc. - Analyst : Hey guys. A quick one here in guidance. You're raising your US thrombectomy guidance to at above the street, but maintaining your overall revenue guidance. Are there any other changes the other segments of your guidance?

Question: Pito Chickering - Deutsche Bank Securities Inc. - Analyst : All right. Great. One more on margins. So I understand gross margins expanding as the positive mix offers those tailwinds. But if I look specifically at SG&A leverage, how should we be thinking about how you balance revenue growth with investments to afford that growth? How much leverage that you can drive over the next couple of years? It seems as though there can be a lot of SG&A leverage over the next 3 to 5 years. Is this like a 50-plus basis point margin pension per year on SG&A next couple of years?

Question: Chris Pasquale - Nephron Research LLC - Analyst : Adam, I wanted to follow up on the question about both 12 and 6x. So buses what percentage of venous and arterial clots occur in vessels that are too small for flash or bolt 7 to reach? And are you guys involved in those cases today with non-CAT products? Or do those patients need to get treated with something else or with surgery?

Question: Chris Pasquale - Nephron Research LLC - Analyst : That's helpful. Thanks. And then you mentioned that reimbursement constraints in Europe could lead to a more measured uptake of flash and bold. Do you see any opportunities to push for incremental reimbursement maybe through some additional in-country clinical studies or things of that nature?

Question: Mike Matson - Needham & Company, LLC - Analyst : Just a couple on Thunderbolt. So on the Thunder trial, do you think we'll see the data at some point maybe in the first half of next year before you submit it to the FDA? And then just pricing on Thunderbolt, I know you're not going to tell us what it is, but is it going to be at a similar sort of premium to what we've seen with what the venous side?