Penumbra, Inc. (NYSE:PEN) Q2 2023 Earnings Call Transcript

David Rescott: Okay. No, that’s helpful. Thank you for the longer answer there. I guess my second question, just on the margin – gross margin operating margin. Longer-term goals? And I think you said maybe the above 70% gross margins within a few years. Wondering if you’d be able to qualify that as maybe closer to the two to three-year time frame or something that’s within a five-year view? And then just wondering more or less on the operating margin side, just based on your – with the launches with kind of the sales force today, should there be any thought about accelerating or any incremental spend maybe on the sales force side in back half of this year and into 2024? Are you kind of set with where the business is today? Thank you.

Maggie Yuen: Yes. No, thanks for your question. I think in terms of the gross margin, yes, I think we previously mentioned two to three years out is the right target to look at. And we’ll continue to see all the favorable factors that we’ve been seeing both margin, and both mix and volume and scalability.

Adam Elsesser: And on the sales force side, it’s a really – it’s a good question. We really – we have an incredible team, and we cover the whole U.S. pretty effectively. We may have to add one person, two person here and there care to grow. But for the most part, we’re not going to – we’re going to be able to get some real leverage there. We don’t think we’ll need – this is sort of the busiest they’ll be because they’re launching new products. They’re going through the process in all these hospitals and they’re doing case coverage and as somebody raised the coil business. I think it will get over time, more normalized. And our team is amazing. I called them out in the prepared remarks for just the sheer volume of work that people have done in the first half of the year. I think we’ll get a lot of leverage out of that, because I do not think we need to fundamentally change the size of the team.

David Rescott: Thank you.

Operator: At this time, I will turn the call back to Ms. Hamlyn-Harris.

Jee Hamlyn-Harris: Thank you, operator. On behalf of our management team, thank you all again for joining us today and for your interest in Penumbra. We look forward to updating you on our third quarter call.

Operator: Ladies and gentlemen, this concludes today’s conference call. You may now disconnect.