Q1 2025 Penumbra Inc Earnings Call Transcript
Key Points
- Penumbra Inc (PEN) reported a strong revenue growth of 16.3% year-over-year, reaching $324.1 million in the first quarter of 2025.
- The US thrombectomy business saw a significant increase of 25% year-over-year, with the VTE franchise leading with a 42% growth.
- Gross margin improved by 160 basis points to 66.6%, with expectations to exceed 70% by the end of 2026.
- The company received FDA clearance for Ruby XL earlier than expected, indicating strong regulatory progress.
- Penumbra Inc (PEN) ended the quarter with a robust cash position of $378.8 million and no debt, highlighting strong financial health.
- International revenue decreased by 2.5% due to a significant decline in China revenue, which is expected to continue impacting the second quarter.
- The company faces macroeconomic headwinds in China, leading to the exclusion of $5 million from the revenue forecast.
- Operating expenses remain high, with SG&A expenses accounting for 47.3% of revenue, driven by investments in commercial and market access teams.
- The company anticipates flat or slightly lower gross margins in Q2 2025 due to expedited manufacturing investments for new product launches.
- Penumbra Inc (PEN) is cautious about raising guidance despite strong Q1 performance, reflecting a conservative approach amidst market uncertainties.
Good afternoon. My name is Tamika, and I will be your conference operator today. At this time, I would like to welcome everyone to Penumbra's first-quarter 2025 conference call. (Operator Instructions)
I would now like to introduce Ms. Cecilia Furlong, Business Development and Investor Relations for Penumbra. Ms. Furlong, you may begin your conference.
Thank you, operator, and thank you all for joining us on today's call to discuss Penumbra's earnings release for the first quarter of 2025. A copy of the press release and financial tables, which includes a GAAP to non-GAAP reconciliation, can be viewed under the Investors tab on our company website at www.penumbrainc.com.
During the course of this conference call, the company will make forward-looking statements pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial
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