Penumbra's (PEN) CEO Adam Elsesser on Q1 2022 Results - Earnings Call Transcript

Our neuro business grew to $81.1 million in the first quarter or 1.3% growth over the first quarter of 2021. Compared to the first quarter of 2021, we saw double digit growth in U.S. neuro thrombectomy, partially offset by product mix shift from neuro to vascular in China during the quarter. Gross margin in the first quarter was 62.5% compared to 65.8% in the same quarter last year, but increased sequentially from 61.5% last quarter. Total operating expense for the quarter was $129.7 million or 64% of revenue compared to $97.9 million or 58% of revenue for the same quarter last year. In sum, we expect a modest sequential increase to our second quarter revenue translating into a year-over-your growth rate in the low teens in Q2. We expect our growth to accelerate in both the third and fourth quarters with Q4 growth expected to be at or slightly above the top end of our annual growth guidance range of 15% to 17%. Looking further out, while we are not giving formal guidance here for 2023, we are optimistic, we could accelerate our revenue growth rate in 2023 compared to 2022 from our interventional business alone based on our expectations for new products and geographic growth opportunities. The first quarter was above our expectations and obviously significantly above consensus expectations in part, because we had a stronger quarter overall and in part that $5 million that we had expected to land in the second quarter. Then on the neuro side, any color on U.S. market share today with RED versus where you were in recall? And how does the growth rates look at the end of the quarter versus the beginning of the quarter when you had the January COVID comps?