EX-99.1 2 pen-33122xexhibit991.htm EX-99.1 Document

Exhibit 99.1
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Penumbra, Inc. Reports First Quarter 2022 Financial Results

ALAMEDA, Calif., May 3, 2022 /PR Newswire/ - Penumbra, Inc. (NYSE: PEN), a global healthcare company focused on innovative therapies, today reported financial results for the first quarter ended March 31, 2022.

•Revenue of $203.9 million in the first quarter of 2022, an increase of 20.5%, or 21.8% in constant currency1, compared to the first quarter of 2021.
First Quarter 2022 Financial Results
Total revenue increased to $203.9 million for the first quarter of 2022 compared to $169.2 million for the first quarter of 2021, an increase of 20.5%, or 21.8% on a constant currency basis. The United States represented 71% of total revenue and international represented 29% of total revenue for the first quarter of 2022. Revenue from sales of vascular products grew to $122.8 million for the first quarter of 2022, an increase of 37.7%, or 38.8% on constant currency basis. Revenue from sales of neuro products grew to $81.1 million for the first quarter of 2022, an increase of 1.3%, or 2.9% on a constant currency basis.
Gross profit was $127.4 million, or 62.5% of total revenue for the first quarter of 2022 and was impacted by higher labor and logistics costs as a result of manufacturing transfer activities and higher labor absenteeism due to the Omicron variant at the beginning of the quarter. This compared to $111.3 million, or 65.8% of total revenue, for the first quarter of 2021.
Total operating expenses were $131.5 million, or 64.5% of total revenue, for the first quarter of 2022, including a $1.8 million amortization expense of finite lived intangible assets acquired in connection with the Sixense acquisition. Excluding this charge, total non-GAAP operating expenses1 were $129.7 million or 63.6% of total revenue, for the first quarter of 2022. This compares to GAAP and non-GAAP operating expenses of $97.9 million, or 57.8% of total revenue, for the first quarter of 2021. R&D expenses were $20.6 million for the first quarter of 2022, compared to $18.1 million for the first quarter of 2021. SG&A expenses were $110.9 million for the first quarter of 2022, compared to $79.8 million for the first quarter of 2021.
Operating loss for the first quarter of 2022 was $4.0 million. Excluding the charge associated with the amortization expense of finite lived intangible assets acquired in connection with the Sixense acquisition, non-GAAP operating loss1 was $2.3 million. This compares to GAAP and non-GAAP operating income of $13.5 million for the first quarter of 2021.
Webcast and Conference Call Information
Penumbra, Inc. will host a conference call to discuss the first quarter 2022 financial results after market close on Tuesday, May 3, 2022 at 4:30 PM Eastern Time. The conference call can be accessed live over the phone by dialing (888) 330-2443 for domestic and international callers (conference id: 4604622), 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 supports healthcare providers, hospitals and clinics in more than 100 countries. The Penumbra logo is a trademark of Penumbra, Inc. For more information, visit www.penumbrainc.com and connect on Twitter and LinkedIn.



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) constant currency and b) non-GAAP operating expenses, non-GAAP operating (loss) income, non-GAAP net (loss) income and non-GAAP diluted earnings per share (“EPS”).

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.

Non-GAAP operating expenses, non-GAAP operating (loss) income, non-GAAP net (loss) income and non-GAAP diluted EPS. The adjustments to the GAAP financial measures reflect the exclusion of:

•the effect of the amortization of finite lived intangible assets acquired in connection with the Sixense acquisition over their estimated useful lives; and
•the excess tax benefits associated with share-based compensation arrangements.

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 operating expenses, non-GAAP operating (loss) income, non-GAAP net (loss) income and non-GAAP diluted EPS useful metrics as they provide an alternative framework for assessing how our underlying business performed excluding the amortization expense of finite lived intangible assets acquired in connection with the Sixense acquisition 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; potential adverse regulatory actions; and the potential impact of any acquisitions, mergers, dispositions, joint ventures or investments we may make. These risks and uncertainties, as well as others, are discussed in greater detail in our filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 22, 2022. 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)
March 31, 2022December 31, 2021
Assets
Current assets:
     Cash and cash equivalents$68,163 $59,379 
     Marketable investments172,178 195,496 
     Accounts receivable, net 143,417 133,940 
     Inventories274,349 263,504 
     Prepaid expenses and other current assets32,219 29,155 
          Total current assets690,326 681,474 
Property and equipment, net60,327 58,856 
Operating lease right-of-use assets176,892 131,955 
Finance lease right-of-use assets35,550 36,276 
Intangible assets, net88,472 90,618 
Goodwill166,232 166,388 
Deferred taxes70,080 65,698 
Other non-current assets13,694 12,985 
         Total assets$1,301,573 $1,244,250 
Liabilities and Stockholders’ Equity
Current liabilities:
     Accounts payable$14,137 $13,421 
     Accrued liabilities105,533 99,796 
  Current operating lease liabilities8,660 8,267 
  Current finance lease liabilities1,769 1,713 
          Total current liabilities130,099 123,197 
Non-current operating lease liabilities182,438 137,045 
Non-current finance lease liabilities26,122 26,523 
Other non-current liabilities3,612 3,558 
          Total liabilities342,271 290,323 
Stockholders’ equity:
Common stock38 37 
Additional paid-in capital919,251 910,614 
Accumulated other comprehensive loss(5,972)(2,630)
Retained earnings45,985 45,906 
Total stockholders’ equity959,302 953,927 
Total liabilities and stockholders’ equity$1,301,573 $1,244,250 

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Penumbra, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except share and per share amounts)
Three Months Ended March 31,
20222021
Revenue$203,895 $169,204 
Cost of revenue76,477 57,867 
Gross profit127,418 111,337 
Operating expenses:
Research and development 20,564 18,076 
Sales, general and administrative 110,900 79,798 
Total operating expenses 131,464 97,874 
(Loss) income from operations(4,046)13,463 
Interest (expense) income, net(47)480 
Other expense, net(1,011)(1,476)
(Loss) income before income taxes(5,104)12,467 
(Benefit from) provision for income taxes(5,183)1,541 
Consolidated net income$79 $10,926 
Net loss attributable to non-controlling interest— (910)
Net income attributable to Penumbra, Inc.$79 $11,836 
Net income attributable to Penumbra, Inc. per share:
Basic$0.00 $0.32 
Diluted$0.00 $0.32 
Weighted average shares outstanding:
Basic37,646,122 36,455,712 
Diluted38,708,657 37,533,520 

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Penumbra, Inc.
Reconciliation of GAAP Operating Expenses and GAAP Operating (Loss) Income to Non-GAAP Operating Expenses and Non-GAAP Operating (Loss) Income1
(unaudited)
(in thousands)
Three Months Ended March 31,
20222021
GAAP operating expenses$131,464 $97,874 
GAAP total operating expenses includes the effect of the following items:
Amortization of finite lived intangible assets acquired1,785 — 
Non-GAAP operating expenses
$129,679 $97,874 
GAAP operating (loss) income from operations$(4,046)$13,463 
GAAP operating (loss) income from operations includes the effect of the following items:
Amortization of finite lived intangible assets acquired1,785 — 
Non-GAAP operating (loss) income from operations$(2,261)$13,463 
1See “Non-GAAP Financial Measures” for important information about our use of non-GAAP measures.
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Penumbra, Inc.
Reconciliation of GAAP Net Income and GAAP Diluted EPS to Non-GAAP Net (Loss) Income and Non-GAAP Diluted EPS1
(unaudited)
(in thousands, except share and per share amounts)

Three Months Ended
March 31, 2022		Three Months Ended
March 31, 2021
Net income (loss)
Diluted EPS3
Net incomeDiluted EPS
GAAP net income $79 $0.00 $11,836 $0.32 
GAAP net income includes the effect of the following items:
Amortization of finite lived intangible assets acquired1,785 0.05 — — 
Tax effect on the non-GAAP adjustments above2
(416)(0.01)— — 
Excess tax benefits related to stock compensation awards(1,781)(0.05)(1,784)(0.05)
Non-GAAP net (loss) income
$(333)$(0.01)$10,052 $0.27 
Weighted average shares outstanding used to compute:
GAAP diluted EPS38,708,65737,533,520
Non-GAAP diluted EPS
37,646,12237,533,520

Penumbra, Inc.
Reconciliation of Revenue Growth by Geographic Regions to Constant Currency Revenue Growth1
(unaudited)
(in thousands, except for percentages)
Three Months Ended March 31,Reported ChangeFX ImpactConstant Currency Change
20222021$%$$%
United States$144,308 $120,070 $24,238 20.2 %$— $24,238 20.2 %
International59,587 49,134 10,453 21.3 %2,220 12,673 25.8 %
Total$203,895 $169,204 $34,691 20.5 %$2,220 $36,911 21.8 %

Penumbra, Inc.
Reconciliation of Revenue Growth by Product Categories to Constant Currency Revenue Growth1
(unaudited)
(in thousands, except for percentages)
Three Months Ended March 31,Reported Change FX ImpactConstant Currency Change
 20222021$% $$%
Vascular$122,809 $89,165 $33,644 37.7 %$984 $34,628 38.8 %
Neuro81,086 80,039 1,047 1.3 %1,236 2,283 2.9 %
Total$203,895 $169,204 $34,691 20.5 %$2,220 $36,911 21.8 %


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

2For the three months ended March 31, 2022, management used a combined federal and state tax rate of 23.29% to compute the tax effect of non-GAAP measures.

3For the purposes of calculating Non-GAAP diluted EPS for the three months ended March 31, 2022, non-GAAP diluted weighted average shares outstanding of 37,646,122 was used, as the Company had non-GAAP net loss in the period.

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