Penumbra, Inc. reports first quarter 2024 financial results

Penumbra, Inc. reported financial results for the first quarter ended March 31, 2024.

First quarter 2024 financial results
Total revenue increased to $278.7 million for the first quarter of 2024 compared to $241.4 million for the first quarter of 2023, an increase of 15.4%, or 15.2% in constant currency1. The United States represented 75.2% of total revenue and international represented 24.8% of total revenue for the first quarter of 2024. Revenue from the U.S. increased 22.0% while revenue from our international regions decreased 0.7%, or 1.7% in constant currency1. Revenue from sales of our global thrombectomy products grew to $187.7 million in the first quarter of 2024, an increase of 29.5%, or 29.3% in constant currency1 over the same period a year ago, driven primarily by the sales of our U.S. thrombectomy products which increased by 35.2% over the same period a year ago. Revenue from sales of our global embolization and access products declined to $91.0 million for the first quarter of 2024, a decrease of 5.7%, or 6.0% in constant currency1 from the same period a year ago, driven primarily by our international embolization and access products which decreased by 11.6% over the same period a year ago.

Gross profit for the first quarter of 2024 was $181.1 million, or 65.0% of total revenue compared to $151.1 million, or 62.6% of total revenue, for the first quarter of 2023. Gross margin is impacted by product mix, regional mix, and production initiatives to support demand and create future efficiencies. As such, with favorable product mix, improvement in productivity, and by leveraging our fixed costs on higher volume of new product sales during the year, our gross margin may be positively impacted in the future.

Total operating expenses, including a $2.4 million amortization expense of finite lived intangible assets acquired in connection with the Sixense acquisition for both periods and $4.8 million in non-recurring litigation related expenses for the first quarter of 2024, were $169.0 million, or 60.7% of total revenue for the first quarter of 2024, and $143.1 million, or 59.3% of total revenue, for the first quarter of 2023. Excluding the charges noted above, total non-GAAP operating expenses1 were $161.8 million, or 58.1% of total revenue, for the first quarter of 2024, and $140.7 million, or 58.3% of total revenue for the first quarter of 2023, respectively. R&D expenses were $24.6 million for the first quarter of 2024, compared to $20.0 million for the first quarter of 2023. SG&A expenses were $144.4 million for the first quarter of 2024, compared to $123.1 million for the first quarter of 2023.

Income from operations was $12.1 million for the first quarter of 2024, compared to income from operations of $8.0 million for the first quarter of 2023. Excluding the amortization expense of finite lived intangible assets acquired in connection with the Sixense acquisition of $2.4 million for both periods and $4.8 million in non-recurring litigation related expenses for the first quarter of 2024, non-GAAP income from operations1 was $19.3 million for the first quarter of 2024 compared to non-GAAP income from operations of $10.4 million for the first quarter of 2023.

Full year 2024 financial outlook
The Company reiterates guidance for total revenue for 2024 to be in the range of $1,230.0 million to $1,270.0 million, representing year over year growth of 16% to 20% compared to 2023 revenue of $1,058.5 million. The Company also continues to project the U.S. thrombectomy franchise will grow 27% to 30% year-over-year, primarily driven by its Computer-Assisted Vacuum Thrombectomy (“CAVT”) products. The Company also continues to expect gross margin expansion in the range of 100 to 150 basis points and total non-GAAP operating margin expansion in the range of 100 to 200 basis points in 2024 compared to full year 2023.
MB Bureau