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

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There is not a trend that I would yet point out. That one is better or different than the other at this point. And I don’t expect that to be the case given the sheer volume of cases and the success we’re seeing.

Unidentified Analyst: Great. Thank you.

Adam Elsesser: Thank you.

Operator: Your next question is from the line of Matthew O’Brien with Piper Sandler. Your line is open.

Matthew O’Brien: Great. Thanks for taking the questions. Maybe just to tease out this back half acceleration because as I look at the stock down about 5% in the aftermarket, I’m sure some of its Thunderbolt, but probably more on the vascular business, even though the U.S. was awesome. So because we have a bigger second half ramp. And Jason, you know all about the big second half ramps and concerns you around those what’s assumed as far as hitting the Q3 acceleration, Q4 acceleration with the vascular business in terms of these active submissions and converting them to users or existing hospitals bulking up their utilization?

Jason Mills: Yes. I’ll maybe take the front end of that, Matt. Thanks for the question and then Adam can clean up after me. The third quarter growth – pretty strong range. The guidance, obviously, in the third quarter, at the top end 25% off those – a pretty strong third quarter of last year. So, we think that, that will be driven by the United States, it’s hard to accelerate off of the growth in the United States that we put up in the second quarter. We think, we can at least do that growth and maybe show some acceleration in the third. And we also commented and you asked about it, and I’ll turn it to Adam to answer more thoroughly about the submission process. But when I say we’ve been appropriate with respect to what we factored in, I think that you can read that to mean that we’re being appropriate.

We’re not factoring in things that we don’t have control over timing or other things, notwithstanding that, when the submission process starts, we have a history of having a high degree of success getting through positively.

Adam Elsesser: Yes. I don’t – I think you answered that really well. I don’t have anything specific to answer other than – we’ve always looked at our guidance and done it as very realistic, and making sure that we’re giving the complete information around this. That’s why we’re sharing you the number of submissions in hospitals for both Flash and Bolt and some of the commentary around SENDit, because that also is going to be a pretty significant part of our neuro growth for quite a while.

Jason Mills: And just lastly, I’ll just add on to those comments. Usually, as you probably know, Matt, the fourth quarter or the third quarter internationally tends to be a bit seasonal and in the fourth quarter, the strongest quarter, that’s reflected in this guidance. We – as a matter of fact, put our expectations for growth internationally for both the third and the fourth quarters, that’s reflective of that sort of normal seasonal trends. And what we know about our business internationally can comment it with what we expect in the United States from those three products we’ve talked so much about on this call.

Matthew O’Brien: Got it. Appreciate that feedback. One more, quick one. Just – and everybody is talking about looking ahead in terms of all these new active centers that are reviewing – the new products, but what about ones that have adopted that have got through the VACs, what are you seeing in terms of utilization trends? And then specifically reorder rates. Are you seeing 90-plus reorder rates from these accounts?

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