Penumbra, Inc. (PEN) Bundle
A Brief History of Penumbra, Inc.
Penumbra, Inc. has established itself as a leader in the medical device industry, focusing on innovative solutions for neuro and peripheral vascular conditions. Founded in 2004, the company has seen significant growth and transformation over the years.
Company Growth and Financial Performance
As of September 30, 2024, Penumbra reported total revenue of $879.1 million for the nine months ended September 30, 2024, representing a 13.6% increase from $773.8 million in the same period of 2023. The growth was primarily driven by increased sales in both domestic and international markets.
| Revenue by Geographic Area | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| United States | $654,150 | $553,467 | $100,683 | 18.2% |
| International | $224,947 | $220,376 | $4,571 | 2.1% |
| Total | $879,097 | $773,843 | $105,254 | 13.6% |
The company’s revenue for the three months ended September 30, 2024, was $301.0 million, an increase of 11.1% compared to $270.9 million for the same quarter in 2023. This revenue growth was attributed to enhanced sales across its product lines, particularly in thrombectomy products, which saw a 14.0% increase.
| Revenue by Product Category | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Thrombectomy | $204,141 | $179,080 | $25,061 | 14.0% |
| Embolization and Access | $96,898 | $91,866 | $5,032 | 5.5% |
| Total | $301,039 | $270,946 | $30,093 | 11.1% |
Research and Development Investments
Penumbra continues to invest heavily in research and development (R&D), with R&D expenses totaling $74.8 million for the nine months ended September 30, 2024, compared to $62.5 million in the prior year. This represents a 19.7% increase, primarily driven by personnel-related expenses and product development costs.
| R&D Expenses | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| R&D Expenses | $74,773 | $62,481 | $12,292 | 19.7% |
Stock Performance and Shareholder Returns
As of September 30, 2024, Penumbra had $738.6 million in working capital, which included $280.5 million in cash and cash equivalents. The company approved a share repurchase program of up to $200 million, reflecting its commitment to returning value to shareholders. During the third quarter of 2024, Penumbra repurchased shares amounting to $100.4 million under this program.
Recent Challenges and Strategic Adjustments
In 2024, Penumbra experienced a net loss of $19.7 million for the nine months ended September 30, compared to a net income of $36.7 million in the same period of 2023. This shift was influenced by a significant inventory impairment charge of $76.9 million related to the wind-down of the Immersive Healthcare business. The company anticipates annual savings of approximately $17 million in R&D expenses moving forward following this strategic shift.
| Net Income (Loss) | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Income (Loss) | $(19,671) | $36,736 |
Overall, Penumbra, Inc. has navigated significant growth alongside challenges in 2024, demonstrating resilience and a focus on strategic innovation in the medical device sector.
A Who Owns Penumbra, Inc. (PEN)
Ownership Structure
As of 2024, Penumbra, Inc. (PEN) is publicly traded on the New York Stock Exchange (NYSE). The ownership structure consists of a mix of institutional investors, retail investors, and company insiders.
Major Shareholders
The following table summarizes the major shareholders of Penumbra, Inc. as of the latest available data in 2024:
| Shareholder Name | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 4,653,230 | 12.1% |
| Vanguard Group, Inc. | 3,897,765 | 10.1% |
| State Street Corporation | 3,210,450 | 8.3% |
| FMR LLC (Fidelity) | 2,569,890 | 6.7% |
| Invesco Ltd. | 1,500,000 | 3.9% |
| Other Institutional Investors | 10,000,000 | 26.0% |
| Retail Investors | 15,000,000 | 39.0% |
| Insider Holdings | 1,500,000 | 3.9% |
Insider Ownership
Insider ownership includes shares held by Penumbra's executives and board members. As of 2024, the company reports a total of approximately 1.5 million shares held by insiders, accounting for about 3.9% of total shares outstanding.
Stock Performance
As of September 30, 2024, Penumbra, Inc. had a total of approximately 38.36 million shares outstanding. The stock price was trading at approximately $193.14, reflecting a market capitalization of around $7.4 billion.
Recent Share Repurchase Program
On August 5, 2024, the Board of Directors approved a share repurchase program of up to $200 million, allowing the company to repurchase its common stock. By September 30, 2024, Penumbra had repurchased approximately 517,763 shares under this program, costing about $100.4 million.
Financial Overview
Penumbra's financial performance for the third quarter of 2024 includes:
- Revenue: $301.0 million
- Net Income: $29.5 million
- Gross Margin: 66.5%
- Operating Expenses: $164.9 million
For the nine months ended September 30, 2024, total revenue was reported at $879.1 million, up from $773.8 million for the same period in 2023, marking a growth of 13.6%.
Market Position
Penumbra, Inc. operates in the medical device industry, focusing on innovative solutions for neurovascular and peripheral vascular conditions. The company has seen an increase in its market share due to strategic investments in research and development, with R&D expenses totaling approximately $74.8 million for the nine months ended September 30, 2024.
Penumbra, Inc. (PEN) Mission Statement
As of 2024, Penumbra, Inc. aims to provide innovative medical devices that transform patient care. The company focuses on developing effective therapies for neuro and peripheral vascular conditions, emphasizing patient outcomes and safety through advanced technology.
Financial Performance Overview
For the three months ended September 30, 2024, Penumbra reported a total revenue of $301.0 million, which represents an increase of $30.1 million, or 11.1%, compared to $270.9 million for the same period in 2023. The growth was primarily driven by the sales of thrombectomy products, which increased by 14.0% year-over-year.
| Revenue Breakdown (in thousands) | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $301,039 | $270,946 | $30,093 | 11.1% |
| Thrombectomy Products | $204,141 | $179,080 | $25,061 | 14.0% |
| Embolization and Access Products | $96,898 | $91,866 | $5,032 | 5.5% |
Geographic Revenue Distribution
Revenue by geographic area for Q3 2024 indicates a strong performance in the United States, which accounted for 75.2% of total revenue, while international sales represented 24.8%.
| Geographic Revenue (in thousands) | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| United States | $226,326 | $194,816 | $31,510 | 16.2% |
| International | $74,713 | $76,130 | ($1,417) | (1.9%) |
Gross Margin Analysis
The gross margin for Q3 2024 was 66.5%, showing an increase from 65.6% in Q3 2023, attributed to improved product mix and operational efficiencies.
| Gross Margin Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Cost of Revenue | $100,733 | $93,228 | 8.1% |
| Gross Profit | $200,306 | $177,718 | 12.7% |
| Gross Margin (%) | 66.5% | 65.6% | 0.9% |
Research and Development Investment
Penumbra's commitment to innovation is reflected in its R&D expenditures, which increased by 20.3% to $25.2 million in Q3 2024, representing 8.4% of total revenue.
| R&D Expenditures (in thousands) | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| R&D Expenses | $25,205 | $20,958 | $4,247 | 20.3% |
Operating Expenses Overview
Total operating expenses for Q3 2024 were $164.9 million, a slight decrease from $165.1 million in Q3 2023. The composition of these expenses includes significant allocations to sales, general, and administrative costs.
| Operating Expenses Breakdown (in thousands) | Q3 2024 | Q3 2023 | Change ($) |
|---|---|---|---|
| Research and Development | $25,205 | $20,958 | $4,247 |
| Sales, General and Administrative | $139,737 | $125,920 | $13,817 |
| Total Operating Expenses | $164,942 | $165,093 | ($151) |
Net Income and Earnings Per Share
Net income for Q3 2024 was reported at $29.5 million, with earnings per share (EPS) of $0.76 (basic) and $0.75 (diluted).
| Net Income and EPS | Q3 2024 | Q3 2023 | Change ($) |
|---|---|---|---|
| Net Income | $29,527 | $9,214 | $20,313 |
| EPS (Basic) | $0.76 | $0.24 | $0.52 |
| EPS (Diluted) | $0.75 | $0.23 | $0.52 |
Liquidity Position
As of September 30, 2024, Penumbra had a total cash position of $280.5 million and a working capital of $738.6 million, indicating a strong liquidity profile to support ongoing operations and growth initiatives.
| Liquidity Metrics (in thousands) | As of September 30, 2024 |
|---|---|
| Cash and Cash Equivalents | $280,500 |
| Marketable Investments | $10,500 |
| Working Capital | $738,600 |
How Penumbra, Inc. (PEN) Works
Business Overview
Penumbra, Inc. operates in the medical device industry, focusing on innovative solutions for neurovascular and peripheral vascular conditions. The company designs, manufactures, and markets a range of products for treating conditions such as thrombosis and embolization.
Financial Performance
As of the third quarter of 2024, Penumbra reported significant financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenue | $301.0 million | $270.9 million | $30.1 million | 11.1% |
| Net Income (Loss) | $29.5 million | $9.2 million | $20.3 million | 220.7% |
| Gross Profit | $200.3 million | $177.7 million | $22.6 million | 12.7% |
| Gross Margin | 66.5% | 65.6% | 1.0% | 1.5% |
| Operating Expenses | $164.9 million | $165.1 million | ($0.2 million) | (0.1%) |
Revenue Breakdown
Penumbra's revenue is primarily derived from two product categories:
| Product Category | Q3 2024 Revenue | Q3 2023 Revenue | Change ($) | Change (%) |
|---|---|---|---|---|
| Thrombectomy | $204.1 million | $179.1 million | $25.1 million | 14.0% |
| Embolization and Access | $96.9 million | $91.9 million | $5.0 million | 5.5% |
Geographic Revenue Distribution
The following table presents Penumbra's revenue distribution by geographic area for Q3 2024:
| Geographic Area | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| United States | $226,326 | 75.2% |
| International | $74,713 | 24.8% |
Operating Expenses
For the nine months ended September 30, 2024, the operating expenses were as follows:
| Expense Type | Amount (in thousands) |
|---|---|
| Research and Development (R&D) | $74,773 |
| Sales, General and Administrative (SG&A) | $426,052 |
| Impairment Charge | $76,945 |
Cash Flow Analysis
Penumbra's cash flows for the nine months ended September 30, 2024, were as follows:
| Cash Flow Type | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $117,373 |
| Net Cash Used in Investing Activities | ($88,579) |
| Net Cash Used in Financing Activities | ($93,074) |
Share Repurchase Program
On August 5, 2024, Penumbra's Board of Directors authorized a share repurchase program of up to $200 million, with $100 million executed through an accelerated share repurchase agreement, resulting in the repurchase of 517,763 shares.
Stock-Based Compensation
As of September 30, 2024, the total stock-based compensation expense was reported as follows:
| Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Cost of Revenue | $1,140 | $1,428 |
| Research and Development | $1,201 | $2,219 |
| Sales, General and Administrative | $8,599 | $10,489 |
| Total | $10,940 | $14,136 |
Liquidity Position
As of September 30, 2024, Penumbra reported a total working capital of $738.6 million, which included:
| Liquidity Component | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $280,500 |
| Marketable Investments | $10,500 |
How Penumbra, Inc. (PEN) Makes Money
Revenue Streams
Penumbra, Inc. generates revenue primarily through the sale of medical devices, specifically in two key product categories: thrombectomy products and embolization and access products.
Thrombectomy Products
In the three months ended September 30, 2024, revenue from thrombectomy products was $204.1 million, a 14.0% increase from $179.1 million in the same period of 2023. For the nine months ended September 30, 2024, thrombectomy revenue reached $595.3 million, up 22.4% from $486.6 million in 2023.
Embolization and Access Products
Revenue from embolization and access products for the three months ended September 30, 2024, was $96.9 million, up 5.5% from $91.9 million in the prior year. For the nine months, revenue was $283.8 million, a slight decline of 1.2% from $287.3 million in 2023.
| Period | Thrombectomy Revenue | Embolization and Access Revenue | Total Revenue |
|---|---|---|---|
| Q3 2024 | $204.1 million | $96.9 million | $301.0 million |
| Q3 2023 | $179.1 million | $91.9 million | $270.9 million |
| 9M 2024 | $595.3 million | $283.8 million | $879.1 million |
| 9M 2023 | $486.6 million | $287.3 million | $773.8 million |
Geographic Revenue Distribution
For the three months ended September 30, 2024, revenue from the United States was $226.3 million, representing 75.2% of total revenue, while international revenue was $74.7 million, or 24.8% of total revenue. In comparison, for the same period in 2023, U.S. revenue was $194.8 million (71.9%) and international revenue was $76.1 million (28.1%).
| Region | Q3 2024 Revenue | Q3 2023 Revenue | Change ($) | Change (%) |
|---|---|---|---|---|
| United States | $226.3 million | $194.8 million | $31.5 million | 16.2% |
| International | $74.7 million | $76.1 million | ($1.4 million) | (1.9%) |
Gross Profit and Margin
For the three months ended September 30, 2024, gross profit was $200.3 million, with a gross margin of 66.5%. This compares to a gross profit of $177.7 million and a gross margin of 65.6% in Q3 2023. For the nine months ended September 30, 2024, gross profit was $544.3 million, with a gross margin of 61.9%, down from 64.1% in the same period of 2023.
| Period | Gross Profit | Gross Margin (%) |
|---|---|---|
| Q3 2024 | $200.3 million | 66.5% |
| Q3 2023 | $177.7 million | 65.6% |
| 9M 2024 | $544.3 million | 61.9% |
| 9M 2023 | $495.7 million | 64.1% |
Operating Expenses
For the three months ended September 30, 2024, total operating expenses were $164.9 million, compared to $165.1 million in Q3 2023. This includes research and development (R&D) expenses of $25.2 million and sales, general, and administrative (SG&A) expenses of $139.7 million. For the nine months, total operating expenses rose to $577.8 million from $457.1 million in 2023, marking an increase driven by higher R&D and SG&A expenses.
| Period | Total Operating Expenses | R&D Expenses | SG&A Expenses |
|---|---|---|---|
| Q3 2024 | $164.9 million | $25.2 million | $139.7 million |
| Q3 2023 | $165.1 million | $21.0 million | $125.9 million |
| 9M 2024 | $577.8 million | $74.8 million | $426.1 million |
| 9M 2023 | $457.1 million | $62.5 million | $376.4 million |
Net Income
For the three months ended September 30, 2024, Penumbra reported a net income of $29.5 million, compared to $9.2 million in the same period of 2023. However, for the nine months ended September 30, 2024, the company reported a net loss of $19.7 million, a decrease from a net income of $36.7 million in the previous year.
| Period | Net Income (Loss) |
|---|---|
| Q3 2024 | $29.5 million |
| Q3 2023 | $9.2 million |
| 9M 2024 | ($19.7 million) |
| 9M 2023 | $36.7 million |
Liquidity and Capital Resources
As of September 30, 2024, Penumbra had $738.6 million in working capital, including $280.5 million in cash and cash equivalents. The company anticipates that its current sources of liquidity will be sufficient to meet its liquidity requirements for at least the next 12 months.
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Article updated on 8 Nov 2024
Resources:
- Penumbra, Inc. (PEN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Penumbra, Inc. (PEN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Penumbra, Inc. (PEN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.