EX-99.1 2 pen-63021xexhibit991.htm EX-99.1 Document

Exhibit 99.1
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Penumbra, Inc. Reports Second Quarter 2021 Financial Results

ALAMEDA, Calif., August 9, 2021 /PR Newswire/ - Penumbra, Inc. (NYSE: PEN), a global healthcare company focused on innovative therapies, today reported financial results for the second quarter ended June 30, 2021.

•Revenue of $184.3 million in the second quarter of 2021, an increase of 75.3%, or 72.7% in constant currency1, compared to the second quarter of 2020.
Second Quarter 2021 Financial Results
Total revenue increased to $184.3 million for the second quarter of 2021 compared to $105.1 million for the second quarter of 2020, an increase of 75.3%, or 72.7% on a constant currency basis. The United States represented 70% of total revenue and international represented 30% of total revenue for the second quarter of 2021. Revenue from sales of vascular products grew to $100.7 million for the second quarter of 2021, an increase of 117.6%, or 115.8% on a constant currency basis. Revenue from sales of neuro products grew to $83.6 million for the second quarter of 2021, an increase of 42.0%, or 38.8% on a constant currency basis.
Gross profit was $118.7 million, or 64.4% of total revenue, for the second quarter of 2021, compared to $64.9 million, or 61.8% of total revenue, for the second quarter of 2020.
Total operating expenses for the second quarter of 2021 were $108.4 million, or 58.8% of total revenue. This compares to total operating expenses of $82.6 million, or 78.6% of total revenue, for the second quarter of 2020. R&D expenses were $17.7 million for the second quarter of 2021, compared to $22.7 million for the second quarter of 2020. SG&A expenses were $90.6 million for the second quarter of 2021, compared to $59.9 million for the second quarter of 2020.
Operating income for the second quarter of 2021 was $10.3 million. This compares to an operating loss of $17.6 million for the second quarter of 2020.
Updated Full Year 2021 Financial Outlook
The Company is increasing its guidance for 2021 total revenue to be in the range of $720 million to $730 million, which represents 28% to 30% growth over 2020 revenue of $560.4 million. This new range compares to the previous range of $695 million to $705 million.
Webcast and Conference Call Information
Penumbra, Inc. will host a conference call to discuss the second quarter 2021 financial results after market close on Monday, August 9, 2021 at 4:30 PM Eastern Time. The conference call can be accessed live over the phone by dialing (833) 350-1434 for domestic and international callers (conference id: 1699031), or the webcast can be accessed on the “Events” section under the “Investors” tab of the Company’s website at: www.penumbrainc.com. The webcast will be available on the Company’s website for at least two weeks following the completion of the call.
About Penumbra
Penumbra, Inc., headquartered in Alameda, California, is a global healthcare company focused on innovative therapies. Penumbra designs, develops, manufactures and markets novel products and has a broad portfolio that addresses challenging medical conditions in markets with significant unmet need. Penumbra sells its products to hospitals and healthcare providers primarily through its direct sales organization in the United States, most of Europe, Canada and Australia, and through distributors in select international markets. The Penumbra logo is a trademark of Penumbra, Inc. For more information, visit www.penumbrainc.com.



1See “Non-GAAP Financial Measures” for important information about our use of non-GAAP measures.

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Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses the following non-GAAP financial measures in this press release: a) non-GAAP net income (loss) and non-GAAP diluted earnings per share (“EPS”) and b) constant currency.

Non-GAAP net income (loss) and non-GAAP diluted EPS. The Company defines non-GAAP net income (loss) as net income attributable to Penumbra, Inc. excluding the effects of the impairment loss on an indefinite-lived intangible asset and the excess tax benefits associated with share-based compensation arrangements. The Company defines non-GAAP diluted EPS as GAAP diluted EPS, excluding the effects of the same items above.

Constant Currency. The Company’s constant currency revenue disclosures estimate the impact of changes in foreign currency rates on the translation of the Company’s current period revenue as compared to the applicable comparable period in the prior year. This impact is derived by taking the current local currency revenue and translating it into U.S. dollars based upon the foreign currency exchange rates used to translate the local currency revenue for the applicable comparable period in the prior year, rather than the actual exchange rates in effect during the current period. It does not include any other effect of changes in foreign currency rates on the Company’s results or business.

Full reconciliation of these non-GAAP measures to the most comparable GAAP measures is set forth in the tables below.

Our management believes the non-GAAP financial measures disclosed in this press release are useful to investors in assessing the operating performance of our business and provide meaningful comparisons to prior periods and thus a more complete understanding of our business than could be obtained absent this disclosure. Specifically, we consider the change in constant currency revenue as a useful metric as it provides an alternative framework for assessing how our underlying business performed excluding the effect of foreign currency rate fluctuations. We consider non-GAAP net income (loss) and non-GAAP diluted EPS useful metrics as they provide an alternative framework for assessing how our underlying business performed excluding the impairment loss on indefinite-lived intangible asset and the excess tax benefits associated with share-based compensation arrangements.

The non-GAAP financial measures included in this press release may be different from, and therefore may not be comparable to, similarly titled measures used by other companies. These non-GAAP measures should not be considered in isolation or as alternatives to GAAP measures. We urge investors to review the reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures included in this press release, and not to rely on any single financial measure to evaluate our business.

Forward-Looking Statements
Except for historical information, certain statements in this press release are forward-looking in nature and are subject to risks, uncertainties and assumptions about us. Our business and operations are subject to a variety of risks and uncertainties and, consequently, actual results may differ materially from those projected by any forward-looking statements. Factors that could cause actual results to differ from those projected include, but are not limited to: the impact of the COVID-19 pandemic on our business, results of operations and financial condition; failure to sustain or grow profitability or generate positive cash flows; failure to effectively introduce and market new products; delays in product introductions; significant competition; inability to further penetrate our current customer base, expand our user base and increase the frequency of use of our products by our customers; inability to achieve or maintain satisfactory pricing and margins; manufacturing difficulties; permanent write-downs or write-offs of our inventory; product defects or failures; unfavorable outcomes in clinical trials; inability to maintain our culture as we grow; fluctuations in foreign currency exchange rates; and potential adverse regulatory actions. These risks and uncertainties, as well as others, are discussed in greater detail in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on February 23, 2021. There may be additional risks of which we are not presently aware or that we currently believe are immaterial which could have an adverse impact on our business. Any forward-looking statements are based on our current expectations, estimates and assumptions regarding future events and are applicable only as of the dates of such statements. We make no commitment to revise or update any forward-looking statements in order to reflect events or circumstances that may change.
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Penumbra, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
(in thousands)
June 30, 2021December 31, 2020
Assets
Current assets:
     Cash and cash equivalents$82,277 $69,670 
     Marketable investments156,722 195,162 
     Accounts receivable, net 136,610 114,608 
     Inventories254,977 219,527 
     Prepaid expenses and other current assets22,526 18,735 
          Total current assets653,112 617,702 
Property and equipment, net50,854 48,169 
Operating lease right-of-use assets92,791 41,192 
Finance lease right-of-use assets37,031 38,065 
Intangible assets, net9,895 10,639 
Goodwill8,109 8,372 
Deferred taxes47,670 50,139 
Other non-current assets10,756 8,705 
         Total assets$910,218 $822,983 
Liabilities and Stockholders’ Equity
Current liabilities:
     Accounts payable$13,712 $14,109 
     Accrued liabilities86,503 85,795 
  Current operating lease liabilities6,347 4,697 
  Current finance lease liabilities1,484 1,331 
          Total current liabilities108,046 105,932 
Non-current operating lease liabilities94,444 44,183 
Non-current finance lease liabilities26,691 27,066 
Other non-current liabilities7,661 8,014 
          Total liabilities236,842 185,195 
Stockholders’ equity:
Common stock36 36 
Additional paid-in capital616,874 598,299 
Accumulated other comprehensive income329 2,541 
Retained earnings61,689 40,622 
Total Penumbra, Inc. stockholders’ equity678,928 641,498 
Non-controlling interest(5,552)(3,710)
Total stockholders’ equity673,376 637,788 
Total liabilities and stockholders’ equity$910,218 $822,983 

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Penumbra, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except share and per share amounts)
Three Months Ended June 30,Six Months Ended June 30,
2021202020212020
Revenue$184,258 $105,109 $353,462 $242,438 
Cost of revenue65,572 40,179 123,439 89,499 
Gross profit118,686 64,930 230,023 152,939 
Operating expenses:
Research and development 17,738 22,725 35,814 35,671 
Sales, general and administrative 90,636 59,854 170,434 134,307 
Total operating expenses 108,374 82,579 206,248 169,978 
Income (loss) from operations10,312 (17,649)23,775 (17,039)
Interest income, net299 108 779 407 
Other (expense) income, net(408)511 (1,884)(1,144)
Income (loss) before income taxes10,203 (17,030)22,670 (17,776)
Provision for (benefit from) income taxes1,904 (4,129)3,445 (5,763)
Consolidated net income (loss)$8,299 $(12,901)$19,225 $(12,013)
Net loss attributable to non-controlling interest(932)(941)(1,842)(1,478)
Net income (loss) attributable to Penumbra, Inc.$9,231 $(11,960)$21,067 $(10,535)
Net income (loss) attributable to Penumbra, Inc. per share:
Basic$0.25 $(0.34)$0.58 $(0.30)
Diluted$0.25 $(0.34)$0.56 $(0.30)
Weighted average shares outstanding:
Basic36,523,011 35,400,542 36,489,548 35,221,727 
Diluted37,582,348 35,400,542 37,564,881 35,221,727 

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Penumbra, Inc.
Reconciliation of GAAP Net Income (Loss) and GAAP Diluted EPS to Non-GAAP Net Income (Loss) and Non-GAAP Diluted EPS1
(unaudited)
(in thousands, except per share amounts)
Three Months Ended
June 30, 2021		Three Months Ended
June 30, 2020		Six Months Ended June 30, 2021Six Months Ended June 30, 2020
Net incomeDiluted EPSNet lossDiluted EPSNet incomeDiluted EPSNet lossDiluted EPS
GAAP net income (loss)$9,231 $0.25 $(11,960)$(0.34)$21,067 $0.56 $(10,535)$(0.30)
GAAP net income (loss) includes the effect of the following items:
Impairment loss on indefinite-lived intangible asset— — 2,500 0.07 — — 2,500 0.07 
Excess tax benefits related to stock compensation awards(1,403)(0.04)(1,320)(0.03)(3,186)(0.08)(2,802)(0.08)
Non-GAAP net income (loss)
$7,828 $0.21 $(10,780)$(0.30)$17,881 $0.48 $(10,837)$(0.31)

Penumbra, Inc.
Reconciliation of Revenue Growth by Geographic Regions to Constant Currency Revenue Growth1
(unaudited)
(in thousands)
Three Months Ended June 30,Reported ChangeFX ImpactConstant Currency Change
20212020$%$$%
United States$128,402 $78,043 $50,359 64.5 %$— $50,359 64.5 %
International55,856 27,066 28,790 106.4 %(2,758)26,032 96.2 %
Total$184,258 $105,109 $79,149 75.3 %$(2,758)$76,391 72.7 %

Six Months Ended June 30,Reported ChangeFX ImpactConstant Currency Change
20212020$%$$%
United States$248,472 $173,817 $74,655 43.0 %$— $74,655 43.0 %
International104,990 68,621 36,369 53.0 %(5,057)31,312 45.6 %
Total$353,462 $242,438 $111,024 45.8 %$(5,057)$105,967 43.7 %
Penumbra, Inc.
Reconciliation of Revenue Growth by Product Categories to Constant Currency Revenue Growth1
(unaudited)
(in thousands)
Three Months Ended June 30,Reported Change FX ImpactConstant Currency Change
 20212020$% $$%
Vascular$100,684 $46,272 $54,412 117.6 %$(845)$53,567 115.8 %
Neuro83,574 58,837 24,737 42.0 %(1,913)22,824 38.8 %
Total$184,258 $105,109 $79,149 75.3 %$(2,758)$76,391 72.7 %

Six Months Ended June 30,Reported Change FX ImpactConstant Currency Change
 20212020$% $$%
Vascular$189,849 $105,525 $84,324 79.9 %$(1,656)$82,668 78.3 %
Neuro163,613 136,913 26,700 19.5 %(3,401)23,299 17.0 %
Total$353,462 $242,438 $111,024 45.8 %$(5,057)$105,967 43.7 %

1See “Non-GAAP Financial Measures” above for important information about our use of non-GAAP measures and further information about our non-GAAP net income (loss) and non-GAAP diluted EPS measures and our use of constant currency.

Investor Relations
Penumbra, Inc.
510-995-2461
investors@penumbrainc.com
Source: Penumbra, Inc.
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