ALAMEDA, Calif., Jan. 11, 2021 /PRNewswire/ -- Penumbra, Inc. (the
"Company") (NYSE: PEN), a global healthcare company focused
on innovative therapies, today announced certain unaudited
preliminary revenue results for the fourth quarter and full year
2020 ahead of its participation at the 39th Annual J.P.
Morgan Healthcare Conference on January
11-14, 2021.
Q4 Revenue Highlights
- Preliminary fourth quarter 2020 revenue is expected to
be in the range of $162.5
million to $167.9 million,
which represents growth of approximately 12% to 16% compared to the
fourth quarter of 2019.
- Excluding the impact of the voluntary recall, Penumbra expects
fourth quarter 2020 revenue on a non-GAAP basis1 in the
range of $172.5 million to
$172.9 million, which represents
growth of approximately 19% compared to the fourth quarter of
2019.
Preliminary Results
The Company expects fourth quarter
2020 total revenue in the range of $162.5
million to $167.9 million,
which represents growth of approximately 12% to 16% compared to the
fourth quarter of 2019. This includes an expected impact in the
range of $5 million to $10 million from the December 15, 2020 voluntary recall of the
Penumbra JET 7 Reperfusion Catheter with Xtra Flex technology ("JET
7 Xtra Flex"). The Company expects full year 2020 revenue in the
range of $556.0 million to
$561.4 million, which represents
growth of approximately 2% to 3% compared to full year 2019.
On a non-GAAP basis,1 excluding the impact of the
recall, Penumbra expects fourth quarter 2020 revenue in the range
of $172.5 million to $172.9 million, which represents growth of
approximately 19% compared to the fourth quarter of 2019. The
Company expects full year 2020 non-GAAP revenue in the range of
$566.0 million to $566.4 million, which represents growth of
approximately 3% compared to full year 2019.
The Company also announced other key revenue results. The
Company expects the United States
to represent 69% of total revenue and international to represent
31% of total revenue for the fourth quarter of 2020. Revenue from
sales of vascular products is expected to grow to be in the range
of $86.9 million to $87.1 million for the fourth quarter of 2020, an
increase of 45% to 46% compared to the fourth quarter of 2019.
Revenue from sales of neuro products is expected to be in the range
of $75.6 million to $80.8 million for the fourth quarter of 2020, a
decrease of 5% to 12% compared to the fourth quarter of 2019.
On a non-GAAP basis,1 the Company expects
the United States to represent
approximately 70% of total non-GAAP revenue and international to
represent 30% of total non-GAAP revenue for the fourth quarter of
2020. Non-GAAP revenue from sales of vascular products is expected
to be in the range of $86.9 million
to $87.1 million for the fourth
quarter of 2020, an increase of 45% to 46% compared to the fourth
quarter of 2019. Non-GAAP revenue from sales of neuro products is
expected to be in the range of $85.6
million to $85.8 million for
the fourth quarter of 2020, which is relatively flat compared to
the fourth quarter of 2019.
Revenue from sales of vascular products is expected to grow to
be in the range of $267.6 million to
$267.8 million for the year ended
December 31, 2020, an increase of 24%
compared to the year ended December 31,
2019. Revenue from sales of neuro products is expected to be
in the range of $288.4 million to
$293.6 million for the year ended
December 31, 2020, a decrease of 11%
to 13% compared to the year ended December
31, 2019.
Non-GAAP revenue from sales of vascular products is expected to
be in the range of $267.6 million to
$267.8 million for the year ended
December 31, 2020, an increase of 24%
compared to the year ended December 31,
2019. Non-GAAP revenue from sales of neuro products is
expected to be in the range of $298.4
million to $298.6 million for
the year ended December 31, 2020, a
decrease of 10% compared to the year ended December 31, 2019.
The preliminary unaudited revenue results described in this
press release are estimates only and subject to revision until the
Company reports its full financial results for 2020 during its
earnings announcement planned for late February.
"I'm proud that our Penumbra team around the world was able to
help our customers address the needs of many more patients during
the challenges of the global pandemic," said Adam Elsesser, chief executive officer and
president, Penumbra, Inc. "We remain committed to our mission of
meeting the needs of patients and all who serve them across our
neuro, vascular and virtual reality franchises."
The Company is scheduled to present at the 39th
Annual J.P. Morgan Healthcare Conference on Tuesday, January 12, 2021, at 10:50 a.m. Eastern Time. An audio webcast
of this presentation will be available by visiting the investors'
section of the Company's website at www.penumbrainc.com. The audio
webcast will be available on the Company's website for at least two
weeks following the event.
1 See "Non-GAAP Revenue" for important information
about our use of this non-GAAP measure.
Non-GAAP Revenue
In addition to revenue prepared in
accordance with U.S. generally accepted accounting principles
("GAAP"), the Company uses non-GAAP revenue in this press
release. The Company defines non-GAAP revenue as revenue
excluding the impact of the December 15,
2020 voluntary recall of the Jet 7 Xtra Flex.
Full reconciliation of non-GAAP revenue to GAAP revenue is set
forth in the tables below.
Our management believes non-GAAP revenue provides useful
information to investors in assessing the performance of our
business and provides meaningful comparisons to prior periods and
thus a more complete understanding of our business than could be
obtained absent this disclosure. In addition, non-GAAP
revenue enables comparison of the Company's revenue results with
other public companies, many of which present similar non-GAAP
revenue measures.
The non-GAAP revenue measure included in this press release may
be different from, and therefore may not be comparable to,
similarly titled measures used by other companies. The non-GAAP
revenue measure should not be considered in isolation or as an
alternative to GAAP revenue. The Company urges investors to review
the reconciliation of non-GAAP revenue to GAAP revenue included in
this press release, and not to rely on any single financial measure
to evaluate its business.
Penumbra,
Inc. Reconciliation of GAAP Revenue to Non-GAAP
Revenue1 (unaudited) (in
thousands)
|
|
|
GAAP
|
|
|
|
Non-GAAP
|
|
Three Months Ended
December 31,
|
|
Impact
of
|
|
Three Months Ended
December 31,
|
|
2020 -
HIGH
|
|
2019
|
|
%
Change
|
|
Recall
|
|
2020 -
HIGH
|
|
2019
|
|
%
Change
|
Neuro
|
$
|
80,762
|
|
|
$
|
85,420
|
|
|
(5)
|
%
|
|
$
|
(5,000)
|
|
|
$
|
85,762
|
|
|
$
|
85,420
|
|
|
—
|
%
|
Vascular
|
87,122
|
|
|
59,843
|
|
|
46
|
%
|
|
—
|
|
|
87,122
|
|
|
59,843
|
|
|
46
|
%
|
Total
|
$
|
167,884
|
|
|
$
|
145,263
|
|
|
16
|
%
|
|
$
|
(5,000)
|
|
|
$
|
172,884
|
|
|
$
|
145,263
|
|
|
19
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
$
|
116,382
|
|
|
$
|
96,065
|
|
|
21
|
%
|
|
$
|
(4,800)
|
|
|
$
|
121,182
|
|
|
$
|
96,065
|
|
|
26
|
%
|
International
|
51,502
|
|
|
49,198
|
|
|
5
|
%
|
|
(200)
|
|
|
51,702
|
|
|
49,198
|
|
|
5
|
%
|
Total
|
$
|
167,884
|
|
|
$
|
145,263
|
|
|
16
|
%
|
|
$
|
(5,000)
|
|
|
$
|
172,884
|
|
|
$
|
145,263
|
|
|
19
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jet 7 Xtra
Flex
|
$
|
3,771
|
|
|
$
|
16,660
|
|
|
(77)
|
%
|
|
$
|
(5,000)
|
|
|
$
|
8,771
|
|
|
$
|
16,660
|
|
|
(47)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
Non-GAAP
|
|
Three Months Ended
December 31,
|
|
Impact
of
|
|
Three Months Ended
December 31,
|
|
2020 -
LOW
|
|
2019
|
|
%
Change
|
|
Recall
|
|
2020 -
LOW
|
|
2019
|
|
%
Change
|
Neuro
|
$
|
75,562
|
|
|
$
|
85,420
|
|
|
(12)
|
%
|
|
$
|
(10,000)
|
|
|
$
|
85,562
|
|
|
$
|
85,420
|
|
|
—
|
%
|
Vascular
|
86,922
|
|
|
59,843
|
|
|
45
|
%
|
|
—
|
|
|
86,922
|
|
|
59,843
|
|
|
45
|
%
|
Total
|
$
|
162,484
|
|
|
$
|
145,263
|
|
|
12
|
%
|
|
$
|
(10,000)
|
|
|
$
|
172,484
|
|
|
$
|
145,263
|
|
|
19
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
$
|
112,082
|
|
|
$
|
96,065
|
|
|
17
|
%
|
|
$
|
(9,000)
|
|
|
$
|
121,082
|
|
|
$
|
96,065
|
|
|
26
|
%
|
International
|
50,402
|
|
|
49,198
|
|
|
2
|
%
|
|
(1,000)
|
|
|
51,402
|
|
|
49,198
|
|
|
4
|
%
|
Total
|
$
|
162,484
|
|
|
$
|
145,263
|
|
|
12
|
%
|
|
$
|
(10,000)
|
|
|
$
|
172,484
|
|
|
$
|
145,263
|
|
|
19
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jet 7 Xtra
Flex
|
$
|
(1,229)
|
|
|
$
|
16,660
|
|
|
(107)
|
%
|
|
$
|
(10,000)
|
|
|
$
|
8,771
|
|
|
$
|
16,660
|
|
|
(47)
|
%
|
|
|
|
Penumbra,
Inc. Reconciliation of GAAP Revenue to Non-GAAP
Revenue1 (unaudited) (in
thousands)
|
|
|
GAAP
|
|
|
|
Non-GAAP
|
|
Year Ended
December 31,
|
|
Impact
of
|
|
Year Ended
December 31,
|
|
2020 -
HIGH
|
|
2019
|
|
%
Change
|
|
Recall
|
|
2020 -
HIGH
|
|
2019
|
|
%
Change
|
Neuro
|
$
|
293,592
|
|
|
$
|
331,685
|
|
|
(11)
|
%
|
|
$
|
(5,000)
|
|
|
$
|
298,592
|
|
|
$
|
331,685
|
|
|
(10)
|
%
|
Vascular
|
267,806
|
|
|
215,720
|
|
|
24
|
%
|
|
—
|
|
|
267,806
|
|
|
215,720
|
|
|
24
|
%
|
Total
|
$
|
561,398
|
|
|
$
|
547,405
|
|
|
3
|
%
|
|
$
|
(5,000)
|
|
|
$
|
566,398
|
|
|
$
|
547,405
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
Non-GAAP
|
|
Year Ended
December 31,
|
|
Impact
of
|
|
Year Ended
December 31,
|
|
2020 -
LOW
|
|
2019
|
|
%
Change
|
|
Recall
|
|
2020 -
LOW
|
|
2019
|
|
%
Change
|
Neuro
|
$
|
288,392
|
|
|
$
|
331,685
|
|
|
(13)
|
%
|
|
$
|
(10,000)
|
|
|
$
|
298,392
|
|
|
$
|
331,685
|
|
|
(10)
|
%
|
Vascular
|
267,606
|
|
|
215,720
|
|
|
24
|
%
|
|
—
|
|
|
267,606
|
|
|
215,720
|
|
|
24
|
%
|
Total
|
$
|
555,998
|
|
|
$
|
547,405
|
|
|
2
|
%
|
|
$
|
(10,000)
|
|
|
$
|
565,998
|
|
|
$
|
547,405
|
|
|
3
|
%
|
1See "Non-GAAP Revenue" for important information
about our use of this non-GAAP measure.
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 U.S., most of Europe, Canada and Australia, and through distributors in select
international markets. Penumbra, the Penumbra P logo, and Penumbra
JET are trademarks of Penumbra, Inc. For more information, visit
www.penumbrainc.com.
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
operation 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 (SEC), including our Annual
Report on Form 10-K for the year ended December 31, 2019 filed with the SEC on
February 26, 2020, our Quarterly
Report on Form 10-Q for the quarter ended March 31, 2020 filed with the SEC on May 7, 2020, our Quarterly Report on Form 10-Q
for the quarter ended June 30, 2020
filed with the SEC on August 3, 2020
and our Quarterly Report on Form 10-Q for the quarter ended
September 30, 2020 filed with the SEC
on November 2, 2020. 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.
Contact
Penumbra, Inc. Investor Relations
investors@penumbrainc.com
510-995-2461
Penumbra, Inc. Media Relations
Betsy Merryman
Merryman Communications
betsy@merrymancommunications.com
media@penumbrainc.com
310-560-8176
View original content to download
multimedia:http://www.prnewswire.com/news-releases/penumbra-announces-preliminary-unaudited-revenue-for-the-fourth-quarter-and-full-year-2020-301204804.html
SOURCE Penumbra, Inc.