Penumbra, Inc. (NYSE:PEN) Q4 2019 Earnings Conference Call - Final Transcript

Feb 25, 2020 • 05:00 pm ET


Penumbra, Inc. (NYSE:PEN) Q4 2019 Earnings Conference Call - Final Transcript


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Good afternoon. My name is George and I will be your conference operator today. At this time, I'd like to welcome everyone to the Penumbra's Fourth Quarter and Year End 2019 Conference Call. [Operator Instructions] After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Thank you.

I would like to introduce Ms. Jee Hamlyn-Harris, Investor Relations for Penumbra. Ms. Hamlyn-Harris, you may begin your conference.

Jee Hamlyn-Harris

Thank you, operator and thank you all for joining us on today's call to discuss Penumbra's earnings release for the fourth quarter and year end 2019. A copy of the press release and financial tables, which includes the GAAP to non-GAAP reconciliations can be viewed under the investors tab on our company website at

During the course of this conference call, the company will make forward-looking statements pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial performance, commercialization, clinical trials, regulatory status, quality, compliance, and business trends. Actual results could differ materially from those stated or implied by our forward-looking statements due to certain risks and uncertainties, including those described in our 10-K for the year ended December 31, 2019, which is scheduled to be filed with the SEC on February 25, 2020.

As a result, we caution you against placing undue reliance on these forward-looking statements. And we encourage you to review our periodic filings with the SEC, including the 10-K previously mentioned, for a more complete discussion of these factors and other risks that may affect our future results or the market price of our stock. Penumbra disclaims any duty to update or revise our forward-looking statements as a result of new information, future events, developments or otherwise.

On this call, certain financial measures are presented on a non-GAAP basis. A reconciliation of GAAP to non-GAAP financial measures is provided in our posted press release. We anticipate the prepared comments on today's call will run approximately 18 minutes. Adam Elsesser, Penumbra's Chairman and CEO, will provide an update from the fourth quarter and year end followed by a review of the business. Maggie Yuen, our Chief Financial Officer, will then discuss our fourth quarter and year end financial results; and Sri Kosaraju, our President will end with our 2020 revenue guidance and closing remarks.

With that, I would like to turn over the call over to Adam Elsesser.

Adam Elsesser

Thank you, Jee. Good afternoon, and thank you for joining our fourth quarter and year end 2019 conference call. Penumbra had a strong fourth quarter and finished 2019. Our total revenues for the fourth quarter of 2019 were $145.3 million, an increase of 20.3% as reported from the fourth quarter of 2018. We had operating income in the quarter of $10.6 million compared to $6.7 million for the same period last year. From a financial metric standpoint, 2019 was an exceptional year.

Our total annual revenues were $547.4 million, which represented growth of 23% over last year. Our gross profit growth