pen-20240331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from_____ to _____

Commission File Number: 001-37557

Penumbra, Inc.

(Exact name of registrant as specified in its charter)


Delaware						05-0605598
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

One Penumbra Place

Alameda, CA 94502

(Address of principal executive offices, including zip code)

(510) 748-3200

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, Par value $0.001 per share	PEN	The New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes: ☒ No: ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes: ☒ No: ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes: ☐ No: ☒

As of April 23, 2024, the registrant had 38,764,917 shares of common stock, par value $0.001 per share, outstanding.

Table of Contents

FORM 10-Q

TABLE OF CONTENTS


		Page
PART I. FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements (Unaudited)	2
	Condensed Consolidated Balance Sheets	2
	Condensed Consolidated Statements of Operations	3
	Condensed Consolidated Statements of Comprehensive Income (Loss)	4
	Condensed Consolidated Statements of Stockholders’ Equity	5
	Condensed Consolidated Statements of Cash Flows	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosure about Market Risk	28
Item 4.	Controls and Procedures	29

PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	30
Item 1A.	Risk Factors	30
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	30
Item 3.	Defaults Upon Senior Securities	30
Item 4.	Mine Safety Disclosure	30
Item 5.	Other Information	30
Item 6.	Exhibits	31

Signatures

Table of Contents

PART I - FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

Penumbra, Inc.

Condensed Consolidated Balance Sheets

(unaudited)

(in thousands)


	March 31, 2024		December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	223,114	$	167,486
Marketable investments	90,360		121,701
Accounts receivable, net of allowance for credit losses of $3,020 and $3,169 at March 31, 2024 and December 31, 2023, respectively	191,989		201,768
Inventories	398,366		388,023
Prepaid expenses and other current assets	31,194		36,424

Total current assets	935,023		915,402
Property and equipment, net	75,744		72,691
Operating lease right-of-use assets	185,845		188,756
Finance lease right-of-use assets	30,234		31,092
Intangible assets, net	68,421		71,056
Goodwill	166,103		166,270

Deferred taxes	84,661		85,158
Other non-current assets	33,814		25,880
Total assets	$	1,579,845	$	1,556,305
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	32,454	$	27,155
Accrued liabilities	106,549		110,555
Current operating lease liabilities	11,520		11,203
Current finance lease liabilities	2,280		2,231
Total current liabilities	152,803		151,144

Non-current operating lease liabilities	194,537		197,229
Non-current finance lease liabilities	23,098		23,680
Other non-current liabilities	5,876		5,308
Total liabilities	376,314		377,361
Commitments and contingencies (Note 8)
Stockholders’ equity:
Common stock	39		39
Additional paid-in capital	1,062,470		1,047,198

Accumulated other comprehensive loss	(4,838)		(3,151)

Retained earnings	145,860		134,858


Total stockholders’ equity	1,203,531		1,178,944
Total liabilities and stockholders’ equity	$	1,579,845	$	1,556,305

See accompanying notes to the unaudited condensed consolidated financial statements

Table of Contents

Penumbra, Inc.

Condensed Consolidated Statements of Operations

(unaudited)

(in thousands, except share and per share amounts)


	Three Months Ended March 31,
	2024		2023
Revenue	$	278,655	$	241,398
Cost of revenue	97,516		90,326
Gross profit	181,139		151,072
Operating expenses:
Research and development	24,626		19,986
Sales, general and administrative	144,412		123,078

Total operating expenses	169,038		143,064
Income from operations	12,101		8,008
Interest and other income, net	2,525		644


Income before income taxes	14,626		8,652
Provision for income taxes	3,624		90


Net income	$	11,002	$	8,562










Net income per share:
Basic	$	0.28	$	0.22
Diluted	$	0.28	$	0.22
Weighted average shares outstanding:
Basic	38,717,334		38,186,342
Diluted	39,387,359		39,075,388

See accompanying notes to the unaudited condensed consolidated financial statements

Table of Contents

Penumbra, Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(unaudited)

(in thousands)


	Three Months Ended March 31,
	2024		2023
Net income	$	11,002	$	8,562
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments, net of tax	(1,853)		403
Net change in unrealized gains or losses on available-for-sale securities, net of tax	166		860
Total other comprehensive (loss) income, net of tax	(1,687)		1,263
Comprehensive income	$	9,315	$	9,825

See accompanying notes to the unaudited condensed consolidated financial statements

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Penumbra, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(unaudited)

(in thousands, except share amounts)


	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total Stockholders’ Equity
	Shares	Amount
Balance at December 31, 2023	38,681,549	$	39	$	1,047,198	$	(3,151)	$	134,858	$	1,178,944
Issuance of common stock	76,597	—		238		—		—		238


Shares held for tax withholdings	(1,732)	—		(421)		—		—		(421)
Stock-based compensation	—	—		15,455		—		—		15,455





Other comprehensive loss	—	—		—		(1,687)		—		(1,687)
Net income	—	—		—		—		11,002		11,002
Balance at March 31, 2024	38,756,414	$	39	$	1,062,470	$	(4,838)	$	145,860	$	1,203,531


	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total Stockholders’ Equity
	Shares	Amount
Balance at December 31, 2022	38,107,977	$	38	$	963,040	$	(8,124)	$	43,904	$	998,858
Issuance of common stock	134,936	—		2,209		—		—		2,209

Shares held for tax withholdings	(813)	—		(204)		—		—		(204)
Stock-based compensation	—	—		13,781		—		—		13,781

Other comprehensive income	—	—		—		1,263		—		1,263
Net income	—	—		—		—		8,562		8,562
Balance at March 31, 2023	38,242,100	$	38	$	978,826	$	(6,861)	$	52,466	$	1,024,469

See accompanying notes to the unaudited condensed consolidated financial statements

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Penumbra, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

(in thousands)


	Three Months Ended March 31,
	2024	2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$

SEC Form 10-Q filed by Penumbra Inc.