Penumbra (PEN) 2 May 232023 Q1 Earnings call transcript

Good afternoon. My name is Julianne, and I will be your conference operator today. At this time, I would like to welcome everyone to Penumbra's First Quarter 2023 Conference Call. [Operator Instructions]

I would now like to introduce Ms. for Relations Investor Hamlyn-Harris, Penumbra. Jee Ms. now Hamlyn-Harris, conference. your you may begin

quarter for thank on our www.penumbrainc.com. earnings Thank which copy includes first reconciliation, financial and on to be release all the release XXXX. joining press of the a Penumbra's you, operator, tab tables, discuss at viewed you under us company and Investors A website to today's for non-GAAP GAAP of can call the

pursuant to the differ Act will our XXXX, statements filed business quality year During regarding and certain stated from of make XX, the risks those by XX-K commercialization, ended of status, call, including this of December SEC. performance, due the and trials, clinical statements Reform safe company could the the Private or referenced those for to course conference Actual uncertainties, including our trends. the in materially Litigation provisions our financial compliance regulatory harbor forward-looking results with implied Securities forward-looking statements XXXX,

a periodic of As we review price more stock. information, future our events, affect results mentioned, discussion other that a new you of revise as risks to a reliance undue result factors update SEC, you encourage statements, and may placing our these for our against developments forward-looking with the on XX-K Penumbra duty or otherwise. and or the of the to complete future including previously any we these filings market result, our disclaims forward-looking caution statements or

XXXX financial Financial business reconciliation CEO, financial for And Penumbra's release. Mills, our our GAAP The will of certain Adam Maggie in Officer, for and Strategy, Sandra Elsesser, first of Interventional, the our Executive the to presented basis. then non-GAAP team Lesenfants, questions. provide quarter. posted corresponding join results will are provided this will President a our and Vice measures Jason on a discuss are of measures press guidance. call, update. our will Yuen, discuss President a financial Chief non-GAAP Chairman our GAAP measures On

With Elsesser. that, turn like the over to Adam would to I call

for Thank you, Jee. XXXX Good First Quarter Thank Call. afternoon. Conference joining Penumbra's you

Our and XX.X% a basis. first on the $XXX.X constant increase reported as for total million, quarter of XX.X% year-over-year currency a revenues were

first sequentially $XX dollar growth our the Our to fastest quarter the million, of quarter history, increased XXXX. COVID-related revenue by excluding sequential third in company's second

The launch expectations, business, company's XX% our in our U.S. Lightning quarter. the the vascular acceleration year-over-year, XX% grew becoming first first the thrombectomy driving quarter our the limited through which in Lightning with quarter. which in product vascular year-over-year launch even Flash and exceeded is high supply the in biggest history, grew Flash franchise, U.S.

call. We launches with technology, XX for the SENDit significant market-leading business. discuss are Therefore, more X, this raising our RED momentum next gone following Jason the a stroke robust see XX trajectory cases RED extremely up have revenue of years. our X-plus Bolt launch date proprietary over of ischemic to forecast well. our later which recent detail significantly, to we XXXX The BMXXX will our with in and forecast growth and this we Lightning in added are have

met we expansion and quarter, margin through margins for Gross XXXX. gross the expectations expect our first

notwithstanding and operating of year. sales XXXX few years. taxes We income $XX.X revenue expanding XX% strong and at of traditionally within With X.X% plus continue payroll gross to margins to the and significantly increase and revenue beyond. we million, higher in cash target gross a the representing our operating increased Non-GAAP quarter, each profits operating spending, expenses expect in first flow beginning to margins disciplined meeting growth,

of venous thrombectomy least X-plus thousands consequential our product launch, ultimate not transform initial just we moment a next hundreds PE market. arrived and benefit has Flash believe at will years. for And of this in but to XXXX on Lightning in at the of patients the based the thrombectomy

actual we PE procedures Lightning through quarter, mechanical and the saw customers. conversion products grew the was gain the in first We Flash Flash the of customers both existing and quarter During from Acceleration than new U.S. DVT as as acceleration other cases our of demand as XX% lytics evident thrombectomy from by sequentially. to momentum. more well

Flash, customers have same and majority customers. the new fact, customers for reorders In rate the of is and these already the reordered existing of

for of than of a this Again, size given this technology, could the momentum of current opportunity we think state field. launch propriety the us typical longer the continue product this this and

put systems in largest for the allows which start process Value just Committee to Lightning Flash. Analysis team on Some contract the have hospital Flash the country hospital Lightning of our in April, individual

Lightning after as Bolt for as the Flash moment quarter this an time X arriving States. just in well Lightning makes patients unprecedented thrombectomy X United for Penumbra in

are feedback who physicians X. is Bolt we Lightning surgery to see received Lightning open We physicians lytics. might used extraordinary And already who have X to it starting historically from performed have early, used from or though have conversion even Bolt

will Lightning is to an for the leg. complete to surgery. it of the severe scheduled physician, the the above-the-knee X scheduled her leg try SFA prior in to and thrombectomy and to thrombus Lightning cleared necrotic He pain A likely new day Bolt weeks X. heard was hospital about the decided popliteal. ago. toes. who Lightning Bolt of keep The time, completely amputation. the minutes about prior, the X devices, to about about months X the blockage But the example foot prior. X and Bolt patient Penumbra's had device CT SFA patient X scan A had placed The with benefit of occurred great stent patient A of showed an patient presented

from including earlier Flash. great technology, hospital With and we we of lot process arterial physicians mentioned a take thrombus. work will modes value large of ahead have contracting off start, we a this a the of to work convert understand are to we breakthrough for analysis rare and traditional a But to have X of opportunity This Lightning Bolt number us. treating that time, we

gives United we to customers about these States. also is stroke, the and of treating share Hearing excitement. team community. success so every that is arterial and and the technologies excitement extraordinary fully Add understand that physician in PE Lightning XXX,XXX-plus successful to to X a investment launches get patients the our far an product that our Bolt both there to the amount differentiated the this We obviously in physician lot for of among Flash motivation venous, spread Lightning

this that that technologies these take focus years. these main patients. a will be significant will amazing we step However, back the percentage this a over me focus, reach near believe work proprietary and next our X-plus state With term let from of the

to continuing manufacturing blocks demand, to to generating necessary additional building that increasing hospital are training increasing physician customers, meet are The demonstrating clinical achieve important. They our value plans and awareness evidence. to scale include and

manufacturing ultimate the term now functional and R&D to regulatory, paradigm past commercial the believe marketing, will and and national focused ways X will thrombectomy teams long have prosper our years evolved computer-orchestrated of to one fully in We work from thrombectomy. prepared tail and the and a near are Every have become on to accounts profound clinical over in ahead.

products catheter The up XX. as X.XXX in U.S., in franchise. launches XX distal as acceleration represent technology X% to RED These by meaningful the of the both driven our proprietary SENDit clot was neuro sequentially in and well removal. with of trackability stroke which aspiration sized RED Turning advances inner business, our was our catheters

the and our these As will growth with market entered we trade-off X think continue build we physicians more increase catheters realize BMXXX, the of recently launched coupled aspiration past to neuro, several products, as in that in they, market the inventory important particularly with years. to oversized the continue have share

of our critical foundation computer-orchestrated platform in as a anticipation Our products Thunderbolt, for lay newest are strong we stroke.

international Turning business. our to

revenue proud the work run are international X% annually. We exceeds business taking teams billion growing $X.XX to our global rate have that sequentially, our of done, revenue a

more We are what's to excited come even in years. ensuing about

We capabilities our XX And internationally. significant RED X, first-generation our for have in to recently and and and we launched capacity thrombectomy Europe. sales, our regulatory Lightning expertise catheter added and reimbursement products, computer-orchestrated stroke

within Lightning increase think, global Lightning X products we business. period, expect RED of time and revenue we sum, Over all teams. our In our our and profitability to Thunderbolt, years, bring and both catheters can together Flash, materially to we with this our Bolt X-plus products, advanced international CAT RX like franchise most in

significant is Healthcare making business as progress well. Our Immersive

reality We are Veteran a of both recently established in solutions have Office including Affairs and virtual and Learning excited home. proud Innovation the with co-develop to the veterans multiple care settings, for scale multiyear and Department Healthcare to test, of health collaboration

with impressed vision so the expanding to veterans. both to to care are commitment access and its VHA's high-quality We

and much so health private we the This teaching collaboration, in can are in the business us coupled rehab is develop benefit across business our health while large also years the to the other doing improve model with technology care health United ultimate work important systems many cognitive patients. myriad ahead helping ways States, aging care mental with this about to of and scale the

XXXX. now Maggie our financial results to over to for call go quarter first I'll the turn over the of

Good in income of and and while non-GAAP release. our press financial basis. on Today, quarter GAAP of a the margin reconciliation corresponding discuss on Thank and everyone. results for financial are a operating The you, to expenses gross are measures afternoon, provided a are this GAAP basis, revenue quarter on GAAP operating non-GAAP results Financial measures Adam. will XXXX. for I first the posted

For in reported quarter of XXXX, XX.X% total increase ended the and revenues XXXX. currency XX.X% the first compared March $XXX.X constant our an were first XX, quarter of million, to

was U.S. strong and driven our growth XX.X%, of Our growth international constant international. in Sequential geographic XX.X% XX.X% momentum and reported by currency. mix increased U.S. in the primarily sales and was XX% in quarter in vascular X.X% business. U.S. of of XX.X% our thrombectomy the reported regions

in the year. region $XXX.X same driven same Revenue revenue quarter the XX.X% XXXX, of U.S., partially of the Worldwide business by offset to vascular franchise. increase increased distributor was to international to and grew in from a currency compared revenue first reported compared period to an constant in primarily variability year-over-year, by in million vascular the our year XX% which growth quarter revenue Moving XX.X% by strong last ago.

compared in ago. Europe continued Revenue a to compared by an from neuro the the international year XX.X% was ago, XXXX, quarter period launches and increase our same driven currency year in and reported in quarter variability business constant same momentum million revenue the distributor product region to of first U.S., in the a positive new XX.X% in of $XX.X

compared gross margin higher quarter XX.X% of start-up first a Turning the and XXXX costs product margin Gross XX.X% by improvement regional point the vascular first XXXX mix. Gross were and approximately quarter. launches performance mix margin. to associated driven by is new product higher with thrombectomy to XX.X% X last for from offset for of sales, quarter multiple

XXXX throughout fixed product expect to margins We of see the cost are as the favorable and leverage our on accelerate track in for improvement mix, to continues year. and continued productivity to improve product rest new volumes

non-GAAP quarter intangible Now quarter, of operating Total the operating exclude year. the our expenses, XX.X% last revenue of expense last $X.X of on which this XX.X% to million assets million same $XXX.X million or quarter respectively. $XXX.X of amortization for last acquired for and million for the for or quarter and $X.X quarter year, to same was compared the revenue

have while to headcount our leveraging compared We effectively been year. scaling last business investment minimal

$XXX.X for and QX revenue revenue revenue million $XXX.X for XXXX. XX% compared compared expenses or QX million or million expenses $XX XXXX $XX.X of were to development Our for XXXX quarter. for SG&A $XXX.X last to research XX.X% and XX.X% QX were of million or of million XXXX QX

seasonality first X.X% an operating the XXXX million year. of revenue loss but spending. quarter of $XX.X period have We in operating quarter for continue to in compared of million We discretionary be $X.X last expenditures the disciplined of income to the or in higher recorded same first

$XXX.X Turning securities sheet. and cash, the marketable which increase of an cash to with first equivalents of $XX.X million is from ended We million, cash quarter and quarter. flow last balance balance

the capital. operating positive expect to cash improvement in working trends flow and of the by continue rest We profitability year driven

call over to to guidance. like the our now, turn And discuss I'd Jason to

you, good everybody. afternoon, Thank Maggie, and

a a to versus XX% $X.XX specified range XXXX of compares year-over-year we XX% XXXX, to $X.XX billion. to previous billion, our $XXX.X million. billion This are to solely revenue growth of $X increasing of of our guidance limit lower For total guidance, revenue representing which

our Relative year-over-year the XX% quarter half be our to business to and XXXX mid- growth growth of and our total to range. XXXX, on through in above We XXXX. in expect growth in second XX% neuro to our for range a expect range revenue this below we be vascular growth XX% guidance in year-over-year range XX% the this accelerate high rates global to to revenue low the second of to slightly business range basis

P&L. the down Moving

target within few through to years. XX% XXXX, margins as gross margins continue to move we gross over and we expect expand We a

to we the the margin Finally, further our expected are years. operating exceed and year, non-GAAP XX% by for margins operating with in expect expectations now increasing expansion subsequent of end

I turn closing the remarks. back will now Adam for call to

Jee. and Maggie Jason, you, Thank

could excitement of over years world-class advantage the We medical comes Flash in These are available it extremely the it Lightning in benefit. about clear the device extremely take technology understanding and franchise. of also obviously next the excited our stroke LIGHTNING the excited don't transformational product types experience and product honed a about to make decades company that launches of several in critical to ahead of over happen of We're work whom launches full our often launches field. everyone With this BOLT.

energized will understands make ahead. their work customers and technology. know team, to to the knows world. and our the they that aspiration the this are our and spoken ready the shown, we work effort physician on morning, they and try. team around we wave have bring entire patients sure and the From teamwork got I everyone every computer-orchestrated and to of do I've and that they that customers With believe try to Our get have try to up

ready. they're think I

Thank you, open to can call the and questions. we

question comes JPMorgan. first Our Robbie Instructions] [Operator Marcus from from

time to nice line, Maybe a on thrombectomy start, Congrats the spend quarter. Flash. I peripheral to wanted some particularly on

of thinking of Flash think relative X-part. from to was couple guidance How a launch terms the the impact the adoption expansion arterial numbers share is you gave are versus much Flash's in And in really, how updated and we You Flash about versus can about there, upcoming neuro? market gains? of of product but question how it One, range? the

X-part X-part for think I The say me all, -- Robbie, Yes, question, question. to it's was way. -- but a try of to I the going or first this let thanks X- articulate

the remarks you a and in We that seeing product now. from I Flash, spot the feel momentum. prepared launch Lightning launches pretty of product our tell product a the X can we're right lot think neuro, of we're like Bolt with good launches of in

the that way conservative say just out sense went to that numbers pure thrombectomy seems peripheral both the BOLT support our a we Flash So tools, a that out that role of to is that. makes LIGHTNING are standpoint, going from and have number there, the target put that side. think in XXX,XXX-patient And growth. everyone Obviously, to just given we which on larger

So that's our goal.

versus of more to focus. market the to that the in past expansion the of gain But -- As sort was talking on, of at it versus question same which keep relates stroke, want first treating definition share the we question gain over bit the Obviously, and expansion growth, the little on primary more has and the time, market when share slowed so time of people. market we're gain. about depends and share product

a of of bit it. interest energy around a a lot renewed There's seeing we're Now, in stroke.

in see think I both we're going stroke. So to

LIGHTNING could how are have define argue, don't that on you against you to part. for we really versus BOLT, you gain most share market relates the it competing expansion, mechanical other depending As products

-- work after talking both our other surgery is have those those relates going and Or the be those share That's venous this or those attention and it -- Is treating following That's DVT, we that the side, physicians whether year patients main DVT rest procedures, after You're patients. that it to PE open year both where fast sure the the of the our gain and those the shifts year patients, the how and not PE. we it's about it's and go ahead following us really focus to of And using market matters. I'm to is focus, those from are growth lytic. market of on fast diseases? patients. how XXX,XXX then the share going as areas really we as getting modes

just And Bolt the I expecting. forward, was of and business think said growth of part U.S. remarks Flash sequential your Yes. of latter and that majority our in thrombectomy vast question that And acceleration Robbie, $XX on -- million to our share primarily the as that guidance contribution, increase. course, vascular to prepared move going sort the expect Adam Flash. X of of And we're mentioned, as Lightning hold to we we're an was similar we we

venous volume fourth from Just we of and PE a in other a out. couple you reminders XX% just on our sequentially that from help the the procedural U.S. We we standpoint, believe increased quarter venous over mentioned franchise. side, to

was sneak I a one neuro or This long in the had probably If helpful. really could you've time. stroke in. more quarter Really best

Just how call to this sustainable out Any there? is and? any -- items onetime

for great comes a SENDit, pretty of of our inventory The and order support what no Yes. which It's inner is more of the that that, get sort real catheter of se per that's Europe from distributor been remarkable. of in RED launch to out technology and launch -- of launch RED starting question. we We're a sort call pretty XX. but Really, of continued issue there's to reaction real the cycle. really continued RED XX the onetime highlighted remarkable we has the launch

by and to what treating excitement that. don't renewed a necessary and back we're add to the have it, starting starting you that's saying work around visibility want -- on we see that we're the fairly to grow see think stroke jinx again, I So, massive in to I but it getting field to to

most the from incredible unbelievably well people products Flash pretty the We fun see a Frankly, customers lot optimistic Bolt. long obviously, aren't a just thrombectomy about to So to new but confidence. our cases, been from that see those us good gives lot we're again, of are an amount in also of stroke we've spot that -- are and had that it's myriad our business. is main customers for again, And a the that But on getting the been and think performing reaction of a it. just we've to fun. we're time It's topic around tools. of

really just separately to the in said to a Yes. large, bit say momentum vascular U.S. to the we a repeating through were business to And writ the comparisons around first both we sort to a stroke about business, of said it's sides expected, vascular in globally of of out sort stroke, year also expect continue what energy strong accelerate just quarter thrombectomy that, of the about business also that that our the And the we've to year-over-year the quarter, it. comment fair we bit a that little add easier. on little Adam notwithstanding shown

next Larry Fargo. comes from from Our Biegelsen question Wells

was don't Adam, We comments very on I the mechanical your about significant if arterial you I a thrombectomy. know there's position side curious for strong Bolt. there. competition in any have --

mix as saw of So penetration. kind open But presented about getting and this I procedures this procedures patients procedures. XXX,XXX you slide, of on lytics you The from XX,XXX talked numbers last the more maybe about is last of XX% benefit. about a or out

that one what's to I had thinking do are do to follow-up. how addition And what here about I a to and -- offering Kind procedures? of you conversion? converting lytics you think guess, driving need you you product And drive better open in So, are that? how

we a advance. sort you. to will get share it's great as executing of next thank in we on, early it quarters of question. really the our couple Larry, sort That's Yes. of strategy and opposed into as really, over And

pretty clot what we've past cases as you we If real simple But described. to an out to the is of technique -- that fast. I that pretty done, it's If putting cases, of who most in has quickly and the of easy. the That's either fact vascular the important catheter these know. -- come and enough clot safe. the this product there That's done a we seeing. interventionalist understand don't -- worrying think continues that's tends the it's pretty do surgeon in way the And that know pretty in button it's we be because compelling sort causing pushing most as used is another reaction clot, what can front that. it's or to fairly a we're or to

it is this that. we I the we we a But do people would have together reception have using same that Of most take that of our do, either Now current with said And very using how all with see. bring doing long on thing positive freely but to a happens. to confidence and that the our out gives to over obviously, -- with hoped That's over positive course. weren't people it's people would that tool product open share to have to people is that what important had who experience? energy, with that experience? we're does knew to us runway the long to reception having but try exactly particularly and to the the it otherwise what our really and what lytics, is customers, and we get me it have But have word it, -- to question. surgery focused or We'll product. a a show do call, that's that, work additional Will have

helpful. That's

ones, constrained? the longer on is second are Flash, and on THUNDER Just supply mean ones. quick I trial. two One, you quick the very And no

enrollment Just when expect the any update on you and to complete.

The are going the We'll Yes. trial. Enrollment me dates an THUNDER lot seeing on can on so. the going. is more is update quarter cases really or What Well, we a next get let as we're increased it, completion good. around still is which in energy well. start

usually it. are lot the patients that the an see We screen measures. an window ultimately stroke awful part the those more so have -- because of people markets on. X-hour see not I because treated think are focused we do from but on in and -- again failures comes trials sense aren't that our our with We product,

focusing ongoing. actually positive that. around that more so we sense we'll the optimistic, better a give very have as definitive trial you of a again, there's far, that's But think as energy and a update on soon I So of

for Flash, Flash And don't in or been point. top we Bolt supply I that this As think constrained relates a we're on We've to supply working really hard to of we're better feel at much either that. it spot. get for constrained

from next from comes Wuensch Our question Joanne Citi.

A couple XX%. questions. sure was of numbers to was I want these vascular make XX.X% up currency, Total up right. I constant U.S. What got OUS?

didn't was number, we OUS, the by vascular some revenue. drove quarterly than broader driven our franchise. million question, U.S. that, business $XX increase less of And majority U.S. less that that the answer number was work. thrombectomy globally obviously, the averages clearly, but our global than it XX%. you We in sequential grew just vascular vascular give total It of that number, give as mentioned just sort to to the

think U.S. I basis. that year-over-year vascular also specifically mentioned our we thrombectomy grew on a piece XX%

sense for the first and we couple which the of new that that first goes important franchise different the year way the what business strength markets and vascular there in growth different, at distributor saw the products trajectory seeing where variance in a in true where to it the U.S. vascular was excluding just give variance vascular you growth are. that momentum you a why is bit alluded when distributor the out strong year last vascular building distributor is of in we was was internationally year-over-year made there So call the Maggie quarter a quarter the in and And thought a that to the to. this the that you're look

it. Got

the expectations that so particular if As a of at follow-up, approved Thunderbolt still the what on of if are uptake not, your product? And to is or end track year? for be

Yes.

As or can't update now. well when just the thoughtful next sense, the I timing spent a as you And more level a having And we're we're over sort get again said. over also, a a think interest the to really XX out of RED a field said about a of we've meantime, the and and give more BOLT excited we it. better we of we time want so in it. renewed that's that And is between in go in the now. said we bit to I in as we'll work that SENDit. But good Larry, accurate. field, quarter with of have We to that Notwithstanding With give now product, on again, doing over that, sort over exactly stroke play foundation stroke of and of of to wait lay for the I that, and the Thunderbolt. for shape we're Flash benefit all LIGHTNING here right wonderful what lot

that we with around said, Yes. And for new I not reiterate our very, energy And is point, well. to the just revenue of think Joanne, well that did performing is stroke. XXXX That to important guidance. have just And continue here any to then that, is remind and to just expectation very not SENDit quite you renewed add XX. most to the point and XX this Thunderbolt is fact other been in the SENDit, having product, doing really

that. about excited we're So

question from Zafar Bank. Deutsche comes next from Our Imron

to ask loss. I first about Jason, wanted blood

much competitors Lightning on seeing Flash, commercial just with aka with what endpoint XX talked Flash. your performance blood benefit and One presumably big this of experience in their the bigger French your set. of on a of your catheter, commented rates in I set, about wondered, having data data of loss specifically loss the of the blood you're

for use has understand a product basis, that. that seen on the thanks people mean I who think people question. one's or most commented Obviously, no regular the And Yes. for on I that.

gross improvement this to points terms we of X you to about a in inflationary just last X just better then to frame? talked about to level to year. And have you And I abating be volume I that year-over-year But seem bit. margin, think Okay. pressures now little leverage, time improvement XXX basis of XXX of think margin that gross better therefore that points XX% in last do year-over-year be can the you that talked terms than get going is wonder, time you materially quarter? then when

question. Thanks for the Yes.

trend to we far, we see progress. to excited And first our to in all accretive We're of on all are new have positive that So margin. product quarter. productivity the see pretty the gross track launch a the

are We increasing focus seeing new demand on launches. will opportunities. we primarily quality the more margin near product In improvement term, of and meeting

mentioned remarks, the we with still the XXX we point XXX of in do product track all year. higher the see and for costs target prepared new start-up basis on but I improvement to our some launches, As are

when think XX% think you Okay. And when do for aspirational -- time margin? you frame target you do can you then do have achieve of a that gross

continue We'll Yes. the productivity see mix improvement years. favorable and in few next to

within a to XX%-plus are margin few years, still target. gross the So on we track

Our from Blair. Margaret comes next question from William Kaczor

going not just and everyone it. and existing accounts. the in the appreciate new on Maybe just to try follow-up as sake time, first but one do for I'm Larry reorder of rates a mention the to

So you're saying you go those mentioned up.

of of much Maybe for Specifically give that's some these XX% potential going a that accounts? how sense maybe you etc. markets existing, existing within and can that us the to compare addressable you're up might XXX how in

Yes.

how our So apologize understanding, much fully not for existing up? Margaret, I gone you're that with accounts, has saying

Yes.

Yes.

getting Bolt talking it, we're X. was work the what getting the versus use into hands, bit first to Flash, talk in With first Flash to about product again, it. order Lightning of with Flash, quarter, -- So let's the people's them

using that sort they Flash have would probably else. category now to so XX they a how and That's cases were otherwise small were quantify using did people. of many there Lightning -- And used something that of pretty who it's more people hard

So, wouldn't that. don't quantified know that. I probably I have

sort products, people used who I use most didn't of important who didn't our think the that's then products products. our who looking we're at number. people our use and People

people the market. lytics. used mechanical other tools, Some other Others on of used means devices those like

sticky is huge The the rate because before of and it's reuse Lightning share us fact new customers and those reorder use who didn't same -- this confidence this that's high, we important very between and before. that who us gives a the And with used that to is even launch. I XX customers wanted that customers

person one come of and sure new I'm can that, vast is who that were So purposes but was of We're with reorder And existing of growth significant, that that more but for have. point do customers. engagement of the sort from didn't the majority seeing we level not making. you both importantly -- up

Okay. well. utilization I my think was part And from perspective, as of it,

about talk later. can we So that

PE, DVT in you And sequentially. seems that question, like pretty sense can beyond? any big keep January Can going a between scale you grew March? mentioned April guess, I second and that and number. the Obviously, XX% the The us trajectory, give around

Yes.

anyone else you line, we just guidance significant the lot of from of these But to linear most So adopted that we not numbers. obviously, this thing. so a have pretty that they're because belief will on things is feel linear. be aren't that enthusiasm -- sure, how course the excitement straight next year can do and updated I'm our in and without tell through away any over that these can thing of this products important better of again, we'll, the feels, work or taking And spend time the XXX% launches here and we part walking

the next, getting at we're important And do and to this everybody what that we're and be with now and the we've had relatively out we should now do that physicians, viable that and rare. a can products these be having to now message treated. trying of we've that's typically pretty not there work. you closer they're done fundamentally -- about go So, this can quarter transformational conversation dozens most and to we They're only convey, is don't but treat dozens worry that what see. scale products It's that

That's sort company, we, can That's so reception lungs, that make the we're far. that's why that's on we've And the that manner remove in the ahead. of these as whether on feel a your routine. arteries products we products focus here, really sort clot, can exciting. that now got of leg, because put work that your of to bordering or your in is in veins your in it's a And

close really and to do, that's what I that, we're So to the right excitement we're what trying that's and now. getting is about think

to we're So getting work.

next Sarcone Jefferies. from from Our question comes Michael

follow-up quick Margaret's on So just a question.

like about give and DVT year-over-year color that basis? Can for looked growth what us You over quarter-over-quarter XX% on that talked on PE any a procedures. you

and quarter significant. It we fourth one strongest of have numbers quarter, but of Obviously, It I fourth pretty me. is don't front those good quarters. a in was had significant, generally was our

I in quoted for on quoted. have me, that a don't it and we -- growth of basis we've number, a business it think and for that U.S. front as don't but significant I was business So vascular year-over-year the thrombectomy vascular business

U.S. it. business way a So than is thrombectomy to you number we put the fair gave it that that higher was total for

Okay. then economic you being docs, and in the just easy. safe also versus That's looks talk what And or was for about Can open case for use Lightning the Bolt for for about talked using you like lytics? I fast, curious, Bolt, arterial helpful. case it

hospital, There a than Lightning days if you're have which we if cost" it the in look you with material interventional it, have good of is, obviously, surgeries to cost, hospital on them you than compelling ICU significantly we two. really at post "materials open versus look pretty total you are Lightning cost for the on look many surgeries, -- hour, X a cost-effective and same at cost would by do that surgery. total are lytic, -- those it's what different the argument of at cost that X. question more most of more just billed way is looking you basis a from Bolt either a are the the if Yes, administrators when sort good of long of at kind in those stay open But look OR, how at the you average, Bolt

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from Our next question comes Capital Markets. from RBC Singh Shagun

for Congratulations was clarification call the was expecting. least some on a that peripheral. expectations I beat better to out thought it what was we interesting good you were thrombectomy driven like did uptake, that it relative quarter. was it sounds than here. by I U.S. looking just at neurovascular and And not

consider side BOLT? call on but guidance? for increase guidance internationally there did clarification, there's much how what then a I LIGHTNING in to And elsewhere? it, much is wondering, Thunderbolt So offset were also then mostly vascular that follow-up. either was any of for You much of us guidance, or the the just as out in on I not in Flash? have is it? And Is How that about a Bolt

Yes. any in Thank to of try I'll chime question. guidance but both and you, question if Please the I Shagun. the missed this, address vascular

you was specific And out it get why consensus business relative vascular, the guidance out, which premise. I for were, was to on we were we looks first versus a vascular, upside I business look U.S. and neuro there our give pointed the a upside at thrombectomy expectations variances and you favorable like as U.S. with sense was know neuro modeling. what but -- favorable that distributor so can is So vascular. the the to there vascular I to called our your And Maggie I think that business, to that. what to is vascular business, international agree drove neuro don't as vascular to U.S. didn't the opposite it,

million So $XX we sequential drove also -- that Flash majority and said of that the increase.

think U.S. is I the draw the So if vascular you you quarter strength put driven by that conclusion thrombectomy. those facts was the in together,

to guidance guidance, that global guidance the going be end as That vascular that which mentioned, and Adam will $XXX in relates range. on we're also in think, enough drive our that draw above I a business growth vascular will slightly you, forward, said of commented top and million. terms year-over-year We've dollar around it that year-over-year now the Flash significant seeing accelerate. give Bolt As to of that certainly, a globally basis, portion is will we've the revenue should growth the conclusion

Got commentary of of talking it. in about been they're products And have guys your just 'XX that your you here, transformational. and then portfolio in terms

Should think plus/minus for to willing floor you're that there as XX% you a to put looking similar we does XXXX? 'XX. your guiding of in on out also grower? growth talked trajectory as about a as plus at You're increase you for XX%. I'm of of sales beyond saw are any Just in just 'XX? in -- mean there. And we exiting growth we what margins, think magnitude should XX% Is then we 'XX wondering, 'XX in --

business us appreciate been respect questions. quite what love course, guidance want I that we looks done, get that having the yet. really of think to I already. We've give a on you're XXXX. I work our guidance don't I trying XXXX give lot of XXXX to That like, to immensely. just said, in not

X-plus X have or Adam mentioned might years. I times X think

flippantly years. this with So degree a entire our and but of any quite team said said X-plus what just we And growth put with going clearly, but year yet. good expect not this not over sort that do strong sort that that on conversation figure growth, like double-digit is strong about to of of just forward, looks quantitative

we're year. it's this too that basis, least on From sense that margin we our out in but income margins with operating and expand we frankly a think next beyond about excited that at -- expect little an expansion some give and leverage disciplined expectations revenue of frame to our quantitative early, perspective, growth, operating do strong spending XXXX And that again, you just I but we year our went way to exists not qualitatively the to a our gross that.

from Canaccord from comes Genuity. Bill question next Plovanic Our

think of we that I are think Just a Flash launch, Bolt. accounts? or both talked of committees to to to the on Because do with LMR point the and And that Lightning kind the you're you of seeing the last the think about call, products Bolt kind things. benefit? couple One, time. launch going you still all the So follow-up is, in then you've on in gotten an at VAC the same of acceleration at I this Bolt a

launch are to Just where this in point. at the trying figure out you

Yes.

with something ago LIGHTNING time. X within weeks the launched the or BOLT, the that. lost product. it? I've X, exact of launched May like So we track What product is we

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real year product? could, for real, if should from still maybe should recently Does And it back hold this thinking agreement kind discussion into we really we it and with revenue given on I it? the your of VA announced the next think until off bring the term about or to contribution how -- both the Great. term product, near about longer start

lot to be can't Yes. is of wait what in that. There's a some happening I work of done. share to

about veterans, share. lot partner, country. tell actually the or for of finding -- rolled really it, then this, out to a have reality Some that throughout can got this confident us I it, to really and will But the possibility helping also share. we their to of finding passion can't which able model a of be I'm allows the I yet now be excited some you, of

for very excited thing revenue very like standpoint, Flash to be better the from business, not the optimistic. it, couldn't the But Bolt X, So I'm talking contributing neuro groundwork laying future, on where Lightning we our we're be in year revenue a this standpoint. a right it's it from a now. particularly have a about Lightning But from going about

Our from question Securities. Newitter comes next Truist Richard from

growth, was to your know the just -- not in an curious know entire just I the of believe, launch XX% wasn't And I just venous thrombectomy question, quarter. question had from scale how thrombectomy. sequential following March. you much that wondering, earlier or -- to full up came I entire that the I'm maybe the quarter

that characterize us? for you can just So

we're Yes. Look, cases what piece in clear. increase XX% crystal said pretty we want about done. getting product said that clear of We orders. important cases, and we is -- were were Obviously, be out and I to there. We We're having information. that's an talking

We also said we were seeing acceleration quarter. throughout the

that this was momentum January. pretty So there and on here better February clear think is And than February, tell that is you than better product. March that I that would is

helpful. you to with take is Bolt up sounds But to upper and and provided, give curious as the love it does asked get would upper that, the for that the bounds. I about of know $X.XX to billion. those guidance, That's came benchmarks any if to in how billion there. thanks kind just us end? with about And in hear lower contribution It someone came you I'm you there's Bolt think What like there. Okay. just that. up $X.XX then you just for can the for you I that range how

that in the slightly accelerating do and first neuro came We've things. know years. is to work what giving but the below business, than we this faster a higher guidance expect Yes. vascular we well. business year our than lots our that. very for lot We a mean And take to little it's business to conclusion. of bit account a Well, come note. of our for as, on now into to quarter. And lot Obviously, been we we important I that, X did that grow across growth don't and

feel about with we where we now good guidance. that So are

from from comes & question Matson next Mike Needham Company. Our

have and think one they been data? ask much you about Bolt? ask does to I kind receptive of And Kind data of have for human they want long do process. products, it how just Flash on I typically Committee How I don't mean but... the Value take? to these Analysis

Yes. great a That's question.

should so these launch -- diverse class should how little a sell and pretty things I -- process. and a we It's have Someday, product on. these on

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remember. gate everyone is We fine. just are that I a doing here -- to there This has working. just is

that talking You here. that process to to -- everyone a sell simply it remind just who And everyone there's can't wants about process it just immediately. is we're

through The That now. working They the want been being selling company for decade, they this. and said, has advocates. know physicians over -- want well. this. are know are product a we yes, us well things go We've product. We how do to The how really to

dozens about any of unusual nothing we there's this ever dozens so and than the course other year. And process dozens products over of and product and that we've launched, the launched

process. than we to other nothing through It means have it go the time. So over

last one on Okay. one I then And understand. China. just

And Just comments any if over curious seeing there. the the curious. hear stuff then from market just quarter. I in didn't that about VBP you're any impact really

And with we generally Genesis are as Mike. side. say have still to that's is just fairly question, with with again play the partnership vascular Yes, both to expected. It's important. products we our on in early the the that them It's companies, the and we well. for process very certainly, I have to Thanks other out. going partnership respect neuro what playing like Yes. VBP to seen got starting out

all Genesis us. as of future for taken together, for partner the is think I and therefore that China So bright in their

Matt from Our Piper O'Brien Sandler. comes question from next

on This is you context could I reorders. and color Sam wanted we bit into [ph] with it just Matt. you up more launches? the on one a put mentioned of rate to little follow maybe -- questions, for Maybe my of guess provide historical

-- so many So we've historical, had years. depends products it over the

with So to that it's do hard validity. any

has numbers new of don't me, would the about in before for all that's really And the so product guidance about the If on Lightning wrong higher. who we that from look would you the were put that talk front important really it, we pleased get I I think years, in because we not an around reception seems the that don't. and what's there example, patients. this have the our number, If how I back have are that my reordered and customers you that out to head. how these were as with out you rate go they know, best quote can can't something's products so we the I using we behind with is XX, had what did after it walk it. of us just I liked specificity. over metric maybe customers and But course next confident of reorder product

we've dozens the It So quantify it of past, is of something in that's can't notably I talked don't obviously -- products I than why don't about I we have it. the that is but know launched, higher because that.

Our will from last from Ryan come question Zimmerman BTIG.

be one promise I will one one question. will this squeezed XX-part question question This a a into into question. not be squeezed

impact commercialize what I kind pricing, qualitatively one you're -- of to I growth about that to to know briefly. pricing. thing about you're unit was does about but I'd what And didn't growth and versus or that guidance. the how in market talk to pricing we talk you have love implying just expansion pricing not to Flash relative could for want just Lightning The as So the Lightning your important unit is give talk going and Flash Adam,

What It's you we're to Lightning then question. or a but gain close just the price. the need there to enough the been mix It's between you're what and versus sort done two. of separator, that the really market-leading very because the of Yes. XX not not below not price. a really price great exactly, see close fundamentally different appreciate our significant price, -- going question. for I out They're sort talking some of is at priced Flash When look pricing. on misinformation There's was we've Flash

really is we So is in This otherwise being that used gain. here. And wouldn't products real important are necessarily that's have cases that done. this

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haven't at it's it. part very, minimal Again, all. if mix, of fact, In very the we quantified

over There Hamlyn-Harris, further questions at to are no you. I Ms. back turn time. this the call

interest thank today our behalf On We you joining operator. all us our on for forward Penumbra. again updating call. management you, second your team, in quarter look and you Thank of for to

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