Penumbra, Inc. (NYSE:PEN) Q2 2023 Earnings Call Transcript

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Bill Plovanic: Good. Well, you preempted half the question. As you think of ’23 guidance in the raise, it reflects the quarter not much more. And I’m kind of wondering how do we think about – what are you including in the bottom end of the range and the top end of the range given the outperformance in the quarter and at least to our numbers, it doesn’t seem like you’re adding much in for the back half of the year? Thanks for taking my questions.

Jason Mills: Yes. Thank you, Bill, for the question. It’s a good question. So the first thing I’d say is that in our first two calls so far this year, we’ve raised our revenue guidance by about $60 million. I think that’s about three times the amount our results exceeded consensus expectations cumulatively over these first two quarters. But if you look forward, I think it’s worth noting a couple of things. Our updated guidance sort of – what our updated guidance accounts for and anticipates as well as maybe what it doesn’t fully factor in. First, we’d expect our U.S. business will grow faster in the second half of the year compared to the first. We did mention that in our prepared remarks. That’s largely driven obviously from Flash, Bolt and SENDit.

It also reflects our expectation that growth in peripheral thrombectomy, both in the U.S. and globally, will accelerate in the second half of the year. The last thing I’d say is we’re excited about what we’re seeing in the hospital submission process with an unprecedented number of largely new accounts pending. The timing, obviously, of these processes is variable. It can take anywhere from a few months to up to nine months plus. And I would say we have been appropriate about how we’re factoring this into our guidance at this stage. And overall, we think we have a lot to look forward to the balance of this year and into the next year.

Bill Plovanic: Thanks for taking my questions.

Jason Mills: Thanks Bill.

Operator: Your next question is from the line of Robbie Marcus with JPMorgan. Your line is open.

Robert Marcus: Oh great. Thanks for taking my questions. Maybe to start on peripheral vascular. Looks like U.S. was up 50%. The rest of the business was flat. Maybe you could just walk through what’s going on there trend-wise? Is there a headwind or slowdown in coils, anything outside the U.S. to point to the vascular business was a little bit below the Street. So just trying to understand great U.S. growth, but what happened to the rest of the vascular business?

Jason Mills: Yes. Thanks for the question, Robbie. Well, overall, we think the vascular business had a really strong quarter. Obviously, the U.S. – you mentioned the U.S. Peripheral thrombectomy business was up 50%. The U.S. total thrombectomy business, stroke was up over 40%. Internationally, there are obviously both coils and thrombectomy is really generally fairly early. We have Lightning 12 and Lightning 7 just getting started internationally, and there’s a lot of work to do. I wouldn’t say there is anything untoward going on. We just don’t have all of our premium products internationally. And in the United States, it’s really expected to drive that growth. So I think, the guidance reflects what we expect from our vascular business, really strong accelerating growth, especially driven from the U.S. market.

Adam Elsesser: Yes. And to be honest with you, we look at that as the opportunity as we bring these products, particularly Flash and Lightning Bolt 7 and RED 72 with SENDit and Thunderbolt, to those markets, because then we’ll have the opportunity to have a similar growth continue in the international markets. So, it’s really driven by the innovation and the technology that has always defined us.

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