Q1 2025 Penumbra Inc Earnings Call
Okay.
Okay.
Okay.
Tamika: Good afternoon. My name is tamika and that will be your conference operator today at this time I would like to welcome everyone to Penumbra, Inc. First quarter 2025 conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you like.
Tamika: To ask a question during this time simply press star followed by the number one on your telephone keypad if.
Tamika: If you want to withdraw your question Press Star followed by the number one.
Speaker Change: I would now like to introduce Mr. Phil you for a long business development and Investor Relations for Penumbra Ms. <unk> you may begin your conference.
Speaker Change: Thank you operator, and thank you all for joining us on today's call to discuss the numbers earnings release for the first quarter of 2025, a copy of the press release and financial tables, which includes a GAAP to non-GAAP reconciliation can be viewed under the investors tab on our company website at Www Dot Penumbra, Inc.
Speaker Change: Dot com.
Speaker Change: 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.
Speaker Change: Actual results could differ materially from those stated or implied by our forward looking statements due to certain risks and uncertainties, including those referenced in our 10-K for the year ended December 31st 2024 filed with the SEC.
Speaker Change: 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.
Speaker Change: The number disclaims any duty to update or revise our forward looking statements as a result of new information future events developments or otherwise.
Speaker Change: On this call financial results for revenue and gross margin are presented on a GAAP basis, our operating expenses operating income and adjusted EBITDA are presented on a non-GAAP basis, the corresponding GAAP measures and a reconciliation of GAAP to non-GAAP financial measures are provided in our posted press release.
Speaker Change: non-GAAP operating expenses and the operating income exclude amortization of acquired intangible assets of $2 4 million in nonrecurring litigation related expenses of $4 8 million in the first quarter of 2024, and adjusted EBITDA excludes such nonrecurring litigation related expenses stock compensation expense depreciation and amortization.
Speaker Change: Position provision for income taxes, and interest income expenses, Adam Elsesser, <unk>, Chairman and CEO will provide a business update Maggie Yuen, our Chief Financial Officer will then discuss our financial results for the first quarter of 2025, and Jason knows our executive Vice President of strategy will discuss our 2025 got it.
Speaker Change: With that I would like to turn over the call to Adam.
Speaker Change: Thank you Cecilia good afternoon.
Adam Elsesser: Thank you for joining <unk> first quarter 2025 conference call in the first quarter, we generated total revenue of $324 $1 million, representing underlying year over year growth of 16, 3% on a reported basis and 16, 9% on a constant currency.
Speaker Change: Our first quarter performance reflected continued momentum across our core U S thrombectomy business with the clinical benefits of our differentiated and proprietary CABG technology, helping us further enhance our strong market position.
Speaker Change: <unk> first quarter U S thrombectomy revenue increased 25% year over year to $187 9 million.
Speaker Change: With our U S. DTE franchise, once again, leading the business with total year over year growth.
Speaker Change: 42%.
Speaker Change: Our arterial and stroke businesses also delivered strong growth as those products continue to take share from open surgery and competitive stroke catheters, respectively.
Speaker Change: Our strong top line results, coupled with our focus on delivering profitable growth and then expanding profitability profile resulted in another solid quarter of operating cash flow.
Speaker Change: In the first quarter gross margin of 66, 6% expanded 160 basis points over the prior year period, while operating income of $40 4 million or.
Speaker Change: Or 12, 4%.
Speaker Change: Revenue increased 550 basis points over the year ago period, we remain on track and are well positioned to achieve a gross margin profile of over 70% by the end of 2026.
Speaker Change: I'd like to address the question of proposed or enacted tariffs and the current macro backdrop.
Speaker Change: We currently manufacture a 100% of our products in the United States and our manufacturing facilities in Alameda and Roseville, California.
Speaker Change: In addition, approximately three quarters of our raw materials and components are currently sourced in the United States.
Speaker Change: We're also engaged in a regular ongoing process of optimizing our supply chain, which includes among other things the strategic onshoring of certain materials that are not currently sourced in the United States.
Speaker Change: In the quarter sales from the U S accounted for 79, 2% of total revenue.
Speaker Change: Regarding China, specifically, there was only $5 million included in our original forecast for the balance of the year.
Speaker Change: Which we are now excluding given the current macro environment.
Speaker Change: Turning to our U S peripheral business in the quarter, we delivered strong sequential expansion from the fourth quarter and the total number of ETE patients treated with our technology.
Speaker Change: Our strong first quarter results.
Speaker Change: Underscore underscore flashed to point, those durable growth and momentum in <unk> with two point OS demonstrated value proposition continuing to drive conversions from anti coagulation lytic and other mechanical thrombectomy platforms to Capt for <unk>.
Speaker Change: Both PE and DVT.
Speaker Change: The recent addition of lightning bolt 12 to the portfolio further augments our competitive positioning with bolt 12 contributions exceeding expectations in its first full quarter on the market.
Speaker Change: Our U S. Arterial business also delivered a solid first quarter with a combination of continued strong growth in both seven and ramping ahead of expectations contributions from bolt six X together driving physician conversion from open surgery or the use of <unk> to <unk>.
Speaker Change: Continuous and rapid innovation is a key tenant of our strategy and our strong competitive differentiator. Our first priority is continuing to enhance and expand the reach of our proprietary CBT portfolio.
Speaker Change: We view, our forthcoming new products as significant and we believe they will continue to drive a paradigm shift in how clot is addressed and treated.
Speaker Change: That said, we will also invest in further innovation across our embolization and access portfolios.
Speaker Change: In mid March we received FDA clearance for Ruby XL, a new larger sized diagnostic catheter compatible peripheral coil.
Speaker Change: We will be XL will further augment our existing peripheral embolization portfolio.
Speaker Change: Expanding our market leadership into larger vessel Anatomies, Ruby XL will be utilized to address conditions, such as pelvic congestion endo leaks and tips pharisees to name a few.
Speaker Change: FDA clearance of <unk> XL came earlier than we expected. So we have commenced an expedited inventory build to support a market launch in either late Q2 early Q3 in order to quickly meet the high interest in the product we have seen from physicians to date.
Speaker Change: As we further expand our product portfolio, we will strategically invest in our commercial team in a measured way to support and enhance focus.
Speaker Change: On the large market opportunities, we're addressing <unk>.
Speaker Change: Positioning our commercial team for success.
Speaker Change: We continue to expand and leverage our market access initiatives to increase awareness around CBT as clinical as well as health economic benefits at.
Speaker Change: <unk> annual scientific meeting in Nashville at the end of March two additional retrospective analysis.
Speaker Change: <unk> focused on DVT and ally management with CVT were presented.
Speaker Change: Relative to anti coagulation in open surgery for the treatment of DVT and <unk>, respectively.
Speaker Change: These analyses demonstrated <unk> ability to reduce hospital length of stay as well as improve the rate of patient discharge to the home setting.
Speaker Change: Positive for both the patients treated with CVT as well as for the health care systems.
Speaker Change: Our health economic data that are part of these studies is being shared with hospital executives.
Speaker Change: We are in the early stages of leveraging our market access initiatives to highlight cvt's myriad benefits versus alternative intervention options as well as anti coagulation, we will continue to invest in and grow our body of clinical evidence and build upon our efforts to drive further.
Speaker Change: Adoption of our <unk> technology and reach the substantial number of patients globally, who suffer from clot burden anywhere in the body.
Speaker Change: Shifting to our neurovascular business, our U S stroke thrombectomy franchise delivered another solid.
Speaker Change: Solid quarterly performance with the clinical and procedural benefits of our market, leading aspiration portfolio supporting volume growth ahead of our expectations and the market.
Speaker Change: The commercial introduction late in the first quarter of our next generation Red 72 catheter nicknames silver label was met with significant physician enthusiasm.
Speaker Change: Silver label has seen strong interest adoption and utilization to date with our R&D teams continued focus on technology innovation, delivering a meaningful enhancement intractability.
Speaker Change: With silverlake, but we are continuing to move the mechanical aspiration field forward and raise the bar for catheter track ability, while with Thunderbolt, we see an additional meaningful opportunity to address and improve the speed with which cloud is extracted in a safe and simple procedure.
Speaker Change: Further expanding our already dominant market leadership position.
Speaker Change: Regarding our Thunder trial in the first quarter of 2025, we submitted the clinical data to the FDA for review.
Speaker Change: We'll provide additional future updates as appropriate and remain excited to introduce <unk> to the neurovascular field.
Speaker Change: We entered 2025 with significant momentum across our business that sustained into the first quarter of the year led by our <unk> portfolio and its strong value proposition.
Speaker Change: Our focus on continuous innovation generation of high quality clinical and health economic data and strategic investments in our commercial team positions us to deliver durable growth alongside increasing profitability and expand upon our position as the leading global <unk>.
Speaker Change: Back to my company.
Speaker Change: I'll now turn the call over to Maggie to go over our financial results for the first quarter of 2025.
Adam Elsesser: Adam Good afternoon, everyone.
Adam Elsesser: I will discuss the financial results for the first quarter of 2025.
Financial results for revenue and gross margin on a GAAP basis, while operating expenses and operating income on a non-GAAP basis, the corresponding GAAP measures and a reconciliation of GAAP to non-GAAP financial measures are provided in our posted press release.
Adam Elsesser: For the first quarter ended March 31, 2025, our total revenues were $324 1 million an increase of 16, 3% reported and 16, 9% in constant currency compared to the first quarter of 2024.
Adam Elsesser: Our geographic mix of sales for the first quarter of 2025 was 79, 2% U S and 28% international.
Adam Elsesser: Our U S region reported growth of 22, 5% driven by 25% growth in from back to me franchise compared to the same period last year.
Adam Elsesser: Our international regions decreased two 5% reported and seven 1% in constant currency, primarily due to a decline in China revenue of $6 $7 million compared to the same period last year, partially offset by an increase of $5 million in all other international regions.
Adam Elsesser: The sequential growth in our total revenue of two 7% was primarily driven by an increase in U S. Thrombectomy revenue and an increase in EMEA revenue offset by a decline in China revenue of $5 4 million compared to the fourth quarter of 2024.
Adam Elsesser: Moving to revenue by products.
Adam Elsesser: Revenue from our global Thrombectomy business grew to $226 5 million in the first quarter of 2025, an increase of 27% reported and 21, 2% in constant currency compared to the same period last year, which was primarily driven by growth in our U S and back.
Adam Elsesser: <unk> business of 25%.
Our international Thrombectomy business increased by three 3%, including at decline, China revenue of $4 $7 million.
Adam Elsesser: Excluding the impact of the China region, our international Thrombectomy revenue grew by 18, 2% when compared to the same period last year.
Adam Elsesser: Given the macroeconomic conditions with China, we expect to continue to have year over year headwinds from the China business for the second quarter of 2025.
Revenue from our embolization and access business was $97 $6 million in the first quarter of 2025, an increase of seven 3% reported and eight 1% in constant currency, primarily driven by an increase in the U S.
Adam Elsesser: Yeah.
Adam Elsesser: Gross margin for the first quarter of 2025 is 66, 6% compared to 65% for the first quarter of 2024, which represents a 160 basis point improvement driven by favorable thrombectomy product mix across our regions and strong productivity improvements.
Adam Elsesser: Looking forward into Q2 2025, we will continue to expect higher thrombectomy product mix offset by higher manufacturing investment to support new product launches, including as Matt Adam previously mentioned, a one quarter expediting costs for will be excel, resulting in a gross.
Adam Elsesser: Margin in Q2, 2025, similar to or slightly lower than Q1 2025.
Adam Elsesser: As we move into the second half of 2025, we expect to see sequential gross margin expansion.
Adam Elsesser: Now onto our non-GAAP operating expenses, non-GAAP operating income and margin and adjusted EBITDA.
Adam Elsesser: Total operating expense for the quarter was $175 5 million or 54, 2% of revenue compared to $161 8 million or <unk> 58, 1% of revenue for the same quarter last year.
Adam Elsesser: Research and development expenses for Q1, 2025, or $22 1 million or six 8% of revenue compared to $24 6 million or eight 8% of revenue for Q1, 2024, which reflects savings of $4 $5 million due to our immersive business.
Adam Elsesser: Down offset by continued investment in product development.
Adam Elsesser: SG&A expenses for Q1, 2025 were $153 5 million or 47, 3% of our revenue for Q1 2025 compared to $137 2 million or 49, 2% of revenue for Q1 2024.
Adam Elsesser: Which is primarily driven from our continued investment in commercial and market access team, partially offset by our savings due to the wind down of immersive business.
Adam Elsesser: As expected SG&A in Q1, 2025 includes higher seasonality expenditures for payroll taxes, and our annual sales meeting as we continue to invest in the right sales levers. We are pleased to see leverage of our G&A expenditures this quarter.
Adam Elsesser: We recorded operating income of $40 4 million or 12, 4% of revenue compared to an operating income of $19 3 million or six 9% of revenue for the same period last year.
Adam Elsesser: We posted adjusted EBITDA of $59 6 million or 18, 4% of total revenue compared to $36 $3 million, all 13, 5% in the first quarter last year.
Adam Elsesser: Turning to cash flow and balance sheet. We ended the first quarter of 2025 with cash cash equivalents and marketable securities balance of $378 8 million and no debt.
Adam Elsesser: Which is an increase of $38 $7 million sequentially driven by strong operating profitability and includes our initial capital expenditure investment in Costa Rica of $10 7 million.
Adam Elsesser: Which is not currently scheduled to come online until 2027.
Adam Elsesser: We expect positive operating cash flow trends to continue in 2025 and beyond.
Adam Elsesser: And now I'd like to turn the call over to Jason to discuss our 2025 guidance.
Jason Knowles: Thank you Maggie and good afternoon, everyone consistent with our guidance philosophy communicated on our last call and notwithstanding our removing revenue from China from our forecast we are reiterating our total revenue guidance range for the year of 12% to 14% year over year growth.
Jason Knowles: For our U S. Thrombectomy business, we are raising our guidance to growth in the range of 20% to 21% year over year. Additionally, we reiterate our expectations for gross margin and operating margin expansion for 2025. This concludes our prepared remarks opt.
Jason Knowles: Greater we can now open the call to questions.
Jason Knowles: Thank you.
Speaker Change: At this time I would like to remind everyone in order to ask a question press star followed by the number one on your telephone.
Speaker Change: Phone keypad will pause for a moment to compile the Q&A roster.
Speaker Change: Yes.
Operator: Your first question comes from the line of Robbie Marcus with Jpmorgan.
Speaker Change: Oh great.
Speaker Change: Congrats on a nice quarter, thanks for taking the question.
Speaker Change: Yes.
Speaker Change: Maybe to start really nice U S thrombectomy growth you've called out the 42% DTE.
Speaker Change: I was hoping you could give us a little more color maybe on on stroke versus peripheral and some of the market trends youre seeing in the two different markets.
Yeah, well first of all thank you for.
The comment on the <unk> business as you know thats been.
The second quarter in a row, where we've seen that type of growth sort of wave.
Speaker Change: <unk> is moving through here.
Speaker Change: As it relates to the other businesses.
Speaker Change: We're sort of highlight we're not going to breakout.
Speaker Change: Every segment.
Speaker Change: Obviously, it sort of gets complicated quarter by quarter, but we do believe our stroke business grew significantly above the market based on volume this quarter.
Speaker Change: No.
Speaker Change: We did launch towards the end of the quarter the red.
Speaker Change: The new Red 72, which saw a significant interest in early uptick at the end of the quarter.
Speaker Change: And it's really been a great position for us to be ready for Thunderbolt lots and lots of talk out there.
Speaker Change: Excited about it and obviously the two most important parts about the stroke procedures is one you have to be able to get the catheter there safely and quickly.
Speaker Change: With this new catheter I think in that size category, we are without a doubt.
Speaker Change: Sort of the market leader on that side, and then be able to get it out really quickly I think thunderbolt well.
Speaker Change: We will show that benefit so I think our stroke business is in pretty great shape all of them.
Speaker Change: <unk> side as I said in the prepared remarks.
Speaker Change: As we were sort of right, where we had hoped to be if not a touch ahead on some of the newer products.
Speaker Change: Fast they've been up sort of taken on by physicians.
Speaker Change: Great maybe just a quick follow up again down the P&L EPS performance was.
Speaker Change: Very nice in the quarter.
Speaker Change: If I look at it's not just I mean, you had gross margin upside you had SG&A improvement I would say the biggest delta versus the street and the way we were thinking about it was on R&D.
Speaker Change: So maybe maybe I'll lump them together here. How are you thinking are you thinking youre more maybe at the top end of the operating margin commentary given the first quarter performance I know, it's tough to raise after just one quarter and how are you thinking about R&D going forward. Thanks.
Speaker Change: Thanks, a lot Yeah, let me let me address the R&D question and then Maggie.
Maggie Yuen: Can sort of talk to where we fit.
Maggie Yuen: In the yearly sort of cadence if you will.
Maggie Yuen: R&D.
Maggie Yuen: The specific spend on R&D as you know is never sort of a linear spend.
Maggie Yuen: There are certain things that happen at certain times and in the process.
So it has not been a linear spend some of that also.
Maggie Yuen: Reflects or the anniversarying of immersive healthcare.
Maggie Yuen: So that's why I think partly see it lower because we're now sort of into the <unk>.
Maggie Yuen: Comparisons without.
Adam Elsesser: <unk> immersive healthcare in there, but maybe you can talk to sort of the cadence throughout the rest of the year. Yeah. I think I think Adam you pointed out right and also pointed out in the prepared remarks.
Adam Elsesser: Of the estimated roughly $10 million of per quarter savings on the MSS.
Adam Elsesser: Business wind down about half of them.
Adam Elsesser: <unk> realized in the R&D line, so proportionately on a year over year basis, especially as a percent of revenue that's when you see.
Adam Elsesser: The improvement, but you can look at it as a.
Adam Elsesser: Relatively.
Adam Elsesser: Baseline going forward with continued investment and also if you compare it to last quarter you will see this trend going forward.
Adam Elsesser: Let me just make the.
Adam Elsesser: Obvious point.
Adam Elsesser: We called out R&D and how amazing our innovation has been over the many years, we've been around we're not shying away from investing in R&D I think.
Adam Elsesser: Some time in the prepared remarks talking about that.
Adam Elsesser: We're going to continue to invest where appropriate on products.
Adam Elsesser: That that need to be made to continue to make.
Adam Elsesser: Removing clot better and better on the amortization access that so there's a robust pipeline.
Adam Elsesser: It happened to be a quarter based on a couple of those things that were slightly lower.
Adam Elsesser: Great good quarter. Thanks.
Adam Elsesser: Thank you.
Larry Nicholson: Your next question is from the line of Larry Nicholson with Wells Fargo.
Adam Elsesser: Okay.
Adam Elsesser: Hi, it's Glenn calling in for Larry Thanks for taking the questions and nice start to the year.
Adam Elsesser: First question relates to lost Thunderbolt would you expect a normal FDA review for that product and can you talk about what are the key metrics. We believe physicians will look look at to compare versus other catheters.
Adam Elsesser: Affect procedure time et cetera, and I have a follow up.
Speaker Change: Yes, so the first part of the question is.
Adam Elsesser: It's submitted as a 500 10-K.
Adam Elsesser: The clinical data is really what they're looking at it obviously, we looked at a lot of the all the other aspects of it beforehand.
Adam Elsesser: Never does no.
Adam Elsesser: Sorry.
Adam Elsesser: Want to having predicted particularly on that product before.
Adam Elsesser: I think I'm going to stay disciplined and not predict.
Adam Elsesser: Again timing of it.
Adam Elsesser: But so far there there is certainly nothing that has come up that is surprising.
Adam Elsesser: <unk>.
Adam Elsesser: The the metrics that we're sort of measured about on.
Adam Elsesser: The submission is obviously the primary.
Adam Elsesser: The primary and secondary endpoints sort of how do we do this sort of very typical things than the other things that you've mentioned like first pass effect and all are obviously captured and will be a relevant part of the discussion. So so obviously we.
Adam Elsesser: Believe we should be doing well against those expectations.
Adam Elsesser: That sort of goes out saying, what I think is different on top of those so it's not instead of.
Adam Elsesser: It's something that really hasnt been discussed before which is not just procedure time, but.
Adam Elsesser: Metric of of how long does the device when its engaged in whatever form.
Adam Elsesser: Take to get the cloud out because that's the difference the catheter into have already been on the market versions of them. Obviously for many many years. So we're really now looking at the mechanism of the CV technology and Thats again that will be something that will be more of a gut check on physicians.
Adam Elsesser: As they start to understand that and see it.
Adam Elsesser: But I think obviously the first phase will be just the traditional.
Adam Elsesser: Metrics that you've already outlined.
Speaker Change: That's helpful. Thanks, and for my follow up we've hyper parts of Salesforce disruption from Tom can stall striker and IDL.
Speaker Change: Just wanted to hear kind of what youre seeing on the ground and how that may be affecting the dynamics in the market. Okay.
Speaker Change: No.
Speaker Change: Organizations people move around certainly it's been that way when there was a merger sometimes that happens sometimes it doesn't.
Speaker Change: I can tell you that.
Speaker Change: The that we were pretty confident that we are taking significant share.
Speaker Change: Not because of the merger, but rather because.
Speaker Change: To be honest and that sort of snotty about it we just have the better product.
Speaker Change: And as more and more people talk about it that word of mouth spreads from Doctor to Doctor, We're seeing people come onboard and I don't think it's because of the merger.
Speaker Change: It's because we have the better product.
Speaker Change: Okay.
Speaker Change: Your next question is from the line of <unk> Chickering with Deutsche Bank.
Speaker Change: Hey, good afternoon, guys and thanks for taking my questions just circling back to guidance here. So the only change here you guys had is.
Speaker Change: Removed $5 million of revenue from China that you had before.
Speaker Change: Now not assuming thats being offset with the additional growth from U S. Thrombectomy is that what we should be taking away.
Speaker Change: Okay.
Speaker Change: Yes, so the.
Speaker Change: We are definitely taking that out of our expectations because again, it's a relatively small amount.
Speaker Change: Impaired to past years, but that was sort of what we've been talking about for last few quarters around China, Jason do you want to add a comment here.
Speaker Change: The way I would frame it for you, though thank you for the question is I think the relative difference between the Q1 results and the Q1 consensus expectations.
Speaker Change: Was around eight or $9 million.
Speaker Change: We're talking about in China.
Speaker Change: Which is the vast majority of which is in the second quarter.
Speaker Change: $5 million.
Speaker Change: So the.
The net increase.
Speaker Change: There is $4 million. If you just look at the first quarter performance and what we said about China at this point.
Speaker Change: And that is that.
Speaker Change: Obviously is happening that outperformance mostly.
Speaker Change: In the United States in the U S.
Speaker Change: Thrombectomy.
Speaker Change: Yes.
Speaker Change: Okay, Great and then can you talk about what Youre seeing in the international markets Intermec, Jimmy outside of China.
Speaker Change: Pretty strong this quarter, where is that strength coming from and are you seeing any changes to reimbursement for your products and any new markets.
Speaker Change: Should we see that growth continuing as east China headwinds feet. Thank you.
Speaker Change: Yes.
Speaker Change: Thank you for for so we're noticing that and seeing that where we have CBT.
Speaker Change: We're definitely seeing growth.
Speaker Change: For the same reasons, we're seeing it in the U S. Obviously the ratio of our total revenue, it's a smaller percentage.
Speaker Change: U S is now approaching 80% of our revenue. So that's going to provide an outsized amount of growth obviously at a time when our products are.
Speaker Change: <unk> made in the U S and sold in the U S. That's probably not the worst timing for that.
Speaker Change: But we're CABG is working in in countries around the world, where they can afford it and pay for it.
Speaker Change: We're getting some real traction there I think that will continue I think will add additional countries over the course of time.
Speaker Change: And we're pretty excited about that that being said I think I've said bunch U S will outgrow that.
Speaker Change: Just because of the.
Speaker Change: The ability to do.
Speaker Change: The size of that opportunity in the U S. The reimbursement the data that we're now talking about our market access all of those things I think will mean for the next couple of years the U S.
Speaker Change: We will drive a lot of this growth I think the other parts of.
Speaker Change: The world will be great opportunities as they come now, but really probably play a bigger role in future years.
Speaker Change: Thanks, so much.
Speaker Change: Thank you.
Speaker Change: Your next question is from the line of Margaret Katzer with William Blair.
Speaker Change: Hey, everyone. This is mccauley on for Margaret Tonight, Thanks for taking our questions.
Speaker Change: Understand the priority here is getting Thunderbolt approved before you start to discuss that launch timing, but if we look back to <unk> flash and bolt were first approved and similarly, having to go through the box here for <unk> 12, just wondering if the market access initiatives have reduced the time or.
Speaker Change: Around that process at all.
Speaker Change: And if not hesitant at least taken some of the load off of your commercial team. So they can.
Speaker Change: Our focus more on the.
Speaker Change: Starting positions rather than again, some of that kind of more burdens on administrative processes.
Speaker Change: Yes.
Speaker Change: Great question on the vascular side, obviously, I think we sort of have that down some of that was hiring an appropriate number of reps, which we have done that.
Speaker Change: That allowed us to have the manpower and the capacity to do that we were sort of caught.
Speaker Change: A little Flatfooted, just because of this your new number of new accounts on the neuro side as it relates to Thunderbolt, we don't really have that issue.
Speaker Change: Been covering.
Speaker Change: All of the neuro counts pretty comfortably we can get there we've been launching products over and over again for many years, we've never sort of raise the question of vacs.
Speaker Change: And I think the argument around under both will be fairly compelling in a hospital setting so.
Speaker Change: I don't think backs will be the issue obviously, we have to go through it and Thats always a gating item, but it won't be the thing that.
Speaker Change: I think.
Speaker Change: Isn't built into our expectations and I think we just have a better handle on it because.
Speaker Change: We have a lot more history with that whole wide range of accounts.
Speaker Change: Great that makes sense, there and then maybe as a follow up just wanted to ask on the arterial strength.
Speaker Change: The demand and increasing contribution obviously from from bolt.
Jason Knowles: <unk> and <unk>, So I guess, maybe for Jason I'm wondering if you can at least directionally frame where growth was in the quarter compared to either use thrombus that DTE growth and ultimately what should we expect for the remainder of the year here.
Speaker Change: Okay.
Speaker Change: Yes, I can start and then Adam can jump in arterial.
Speaker Change: Has been a strength of our U S business. It remains a strength of our U S business in the first quarter an item in his prepared remarks talked to you about why.
Speaker Change: It is really the products and CVT, both seven and bolt six X.
Speaker Change: Which is the first.
Speaker Change: First full quarter on the market, both doing very very well.
Speaker Change: And Underpenetrated patient population still so we expect to continue to see.
Speaker Change: Strong arterial growth within our U S thrombectomy franchise.
Speaker Change: Yeah.
Speaker Change: That's great. Thanks again.
Speaker Change: Okay.
Speaker Change: Your next question is from the line of Bill <unk>.
Speaker Change: Vic.
Speaker Change: Canaccord.
Speaker Change: Okay.
Speaker Change: Great. Thanks, Good evening, thanks for taking my questions.
Speaker Change: Yeah.
Speaker Change: If I could is as we talk about lightning bolt <unk>.
Speaker Change: And seven kind of going in just curious.
Speaker Change: As you look at growth in those products and you look at the volume versus Asp's I mean, our understanding is as you get <unk> you also apply pairing that would send it.
As we get into <unk>, and just wondering what type of pricing versus volume benefit are you seeing and we're in the early stages of this I mean is this something where six.
Speaker Change: Six X whips and it is going to be magnitude double triple of what youre getting per case.
Speaker Change: Then the standard catheter today, and then I have a follow up.
Yeah. So.
Speaker Change: The.
Speaker Change: First of all most of our growth this past quarter was volume not.
Price at all when you look at six.
Speaker Change: Ex primarily those are cases, we werent doing beforehand. Those are cases that were being done with open surgery because of the size of the artery.
Speaker Change: Thats.
Speaker Change: Obviously.
Speaker Change: The prices, it's just volume its new cases.
Speaker Change: There is really little difference between six and seven.
Speaker Change: And so there's that.
Speaker Change: Youre not going from O I used to use seven now use exact that cost a little more.
Speaker Change: The vast majority of this is obviously volume and we called that out in the prepared script.
Speaker Change: Okay, and then just any update on coronary.
Speaker Change: Yes.
Speaker Change: Getting the CVT technology in the coronary.
Speaker Change: Yeah, It's a good question.
Speaker Change: Coronary has continued to be a great business those who use it.
Speaker Change: Regularly obviously.
Speaker Change: I think it's changed their practice dramatically.
Speaker Change: The question really is is it necessary.
Speaker Change: In the coronary arteries clutch very different typically there are always exceptions.
Speaker Change: But if you remember way back to the Chita study that happened a number of years ago. The.
Speaker Change: Time for that product to remove the clot with us.
Speaker Change: Really short like a couple of minutes a little over one minute a minute and a half I think the exact number. So so what can we add to that case right now.
Speaker Change: And even a setup time that adds a minute or two to it.
Speaker Change: Mike.
Speaker Change: B the not as good so we're going to continue to look at that there are some.
Speaker Change: Exceptions that an accordant area, where having something that that is effective at getting more chronic or harder clot out, but it really as a general rule. The product. We have is doing a really really good job in the corner. So obviously, that's continuing to be a great business it isn't growing anywhere near.
Speaker Change: All these years later at the same rate the other ones are.
Speaker Change: Yeah, and then if I could just kind of tariffs it just sounds like at the end of the day not really an impact for you given where you manufacture and where do you source from.
Speaker Change: Yes, it just seems.
He's kind of redundant, but given the significant outperformance of the first quarter.
Speaker Change: The guide is at least especially at the operating margin basis or operating profitability basis seems super Conservative and I'm, just wondering what is kind of driving that.
Speaker Change: Got it.
Speaker Change: I think you just said it.
Speaker Change: We have.
Speaker Change: Recent experience of getting over our skis.
Early in the year, just the first quarter and we're going to stick to our conservative approach I think you've got it.
Speaker Change: Thanks.
Speaker Change: Thank you.
Speaker Change: Your next question is from the line of Travis Steed with Bank of America.
Travis Steed: Hey, Thanks for taking my question.
Speaker Change: Sure I'll follow up a little bit on <unk> new product.
Speaker Change: Maybe in markets that we're not as familiar what can you kind of help us understand the product and maybe.
Maybe the market opportunity is this something measured in tens of millions or 100 million plus opportunity.
Speaker Change: Yes.
Speaker Change: Let me first describe the product.
Speaker Change: It's built on our same fundamental platform of our all of our peripheral coils, which are.
Speaker Change: Generally larger die.
Speaker Change: Diameter softer longer.
Speaker Change: So that you can you can just have more control and fill the space that you're feeling much faster.
Speaker Change: And much more completely the softness allows us to have better packing density. So we're taking that platform, having a bigger coil now.
Speaker Change: From a diameter standpoint lengths.
Speaker Change: And so on so that we can do that in areas, where you don't typically use coils or if you do you're using sort of coils that don't have those same properties are being super soft.
Speaker Change: An extra long.
Speaker Change: It's a little early for US you know lets do our first cases first once we get product.
Speaker Change: And then we will start to be able to give you a better sense of how broad this will go.
Speaker Change: If you can indulge us just a little time to get our first cases done.
Speaker Change: I will be happy to try to.
Speaker Change: In future calls size that market a little more for you.
Speaker Change: Great that's helpful.
Speaker Change: That's all I had.
Speaker Change: Sure. Thank you.
Speaker Change: Okay.
Speaker Change: Your next question is from the line of Ryan Zimmerman with <unk>.
Speaker Change: Yes.
Ryan Zimmerman: Hey, Thanks for thanks for taking our questions.
Speaker Change: I guess two for me.
Speaker Change: You are making these efforts in Costa Rica, arguably youre right youre in the right spot, you're you're not seeing an impact from tariff dynamics, you've made some investments in your.
Speaker Change: Plans change at all in terms of your.
Speaker Change: Expansion in the Costa Rica, using that as a stepping stone to a broader international effort.
Speaker Change: I know this is.
Speaker Change: <unk> is in flux, but I'm just curious if kind of the market dynamics have caused you to take a pause and thinking about that a little more differently.
Speaker Change: Yes no.
Speaker Change: It's a great question I'm glad you asked it. So the answer is that that project is underway, we signed a contract for the land and the facilities going to be built and all of that stuff. It's a several year process.
Speaker Change: Before it would be online it would be coming online sometime in 2027 so.
Speaker Change: Too early to decide.
Speaker Change: What one.
Speaker Change: Which way one goes if we're in a situation where tariffs are back to normal and it's no longer the topic than it is right now.
Speaker Change: Then it would be.
Speaker Change: The obvious next place that we expand.
Speaker Change: Bring some of our.
Speaker Change: Products, there that that might have slightly higher margins being made in the U S and we will get some significant margin benefit there as well.
Speaker Change: The pace.
Speaker Change: Being able to expand there is pretty quick couple of years till we can be up and running if you will.
Speaker Change: If we're not in a different situation and we're still in a situation where tariffs are governing a lot of our decision, making then we have a facility outside the U S that can.
Speaker Change: In effect supply the rest of the international market.
Speaker Change: The risk of tariffs for product that we are sending from here. So we have a lot of flexibility by doing that.
Speaker Change: And to be honest having.
Speaker Change: Manufacturing in more than one general location, albeit our two plants are.
Speaker Change: Couple of hours away.
Speaker Change: They are still in the same state is obviously I think prudent for us to do so either way, we can pivot and it just gives us a lot of flexibility in a couple of years to decide what to do.
Okay and then the follow up there was a new drug approved a new thrombolytic agent in March I believe offers about a single five second IV bolus as opposed to maybe some of the slower drugs like activation and specifically talking about neurovascular right now Adam as you're probably aware I'm just wondering whether you see this impacting throne.
Speaker Change: Back to the demand in the near term as it is rolled out and physicians maybe are a little more apt to try it in the face of what could be some of your technology.
Speaker Change: Yeah, I think we're really talking about different <unk>.
Speaker Change: Patients.
Speaker Change: There are patients that.
Speaker Change: Don't have.
Speaker Change: Clot.
Speaker Change: That was sort of the qunar strokes way deeper in the brain.
Speaker Change: Where catheter is don't get even the smaller distal catheters, where a drug like that would be a huge benefit.
Speaker Change: I've heard nobody even non interventional neurologists.
Speaker Change: Talking about going backwards and using.
Speaker Change: Drug screening it's early stages.
Speaker Change: To see if its better than thrombectomy at this point I just haven't heard that.
Speaker Change: It's more logical and more likely that it's four.
Speaker Change: Wade just still sort of strokes, where catheters don't fit at all.
Speaker Change: Okay. Thank you Ed.
Ed: Yes. Thank you.
Speaker Change: Your next question is from the line of column, Pete Marsh with Morgan Stanley.
Pete Marsh: Great. Thanks for taking the question guys. A couple of quick ones for me and all from both upfront just on arterial specifically just looking for a bit more clinical color on the early rollout of <unk>.
Pete Marsh: EBIT feedback you've received on those be Teekay cases on how willing is the docs business, which helped treatment methods and then just secondly on Thunderbolt. Obviously your current data for distal clots thrombectomy isn't great, albeit most skewed is there any kind of technological factor that would enable modulate it aspiration to better target distal clots.
Pete Marsh: Existing tech today, Thanks, a lot.
Pete Marsh: Yes so.
Pete Marsh: A couple of good questions.
Pete Marsh: Let's start on arterial.
Pete Marsh: And sort of how that's going.
Pete Marsh: Look arterials, we're competing against open surgery.
Pete Marsh: So if you can get the clot out.
Pete Marsh: In a matter of a minute or two of device time or three minutes compared to open surgery youre going to win over those physicians.
Pete Marsh: And it's the predictability of it with modulator aspiration <unk>. It's it's it's just that much more predictable. It happens it's fast youre going to start to have that word of mouth and we saw that happen theres a lot of discussion about a lot of excitement about it.
Pete Marsh: And I think over.
Pete Marsh: These things happen in waves, you don't just get everyone at once.
Pete Marsh: It's not like that where you have a <unk>.
<unk> seminal clinical trial or you have a reimbursement or guideline change. This is word of mouth, what do I do know what someone else doing should I try it I did oh Wow, that's good and word of mouth builds and it comes in waves and we've seen that obviously on the <unk> front, where we've had two quarters of this sort of.
Pete Marsh: Wave and we're onboarding folks for the next round.
Pete Marsh: Conversions.
Pete Marsh: And that's an exciting moment and the same thing on the arterial side.
Pete Marsh: Where it's happening.
Pete Marsh: The product works and it works.
In smaller vessels it works in the larger ones with seven.
Pete Marsh: And I think we'll see that.
Pete Marsh: It relates to sort of Thunderbolt going more distal Thunderbolt right now is paired with.
Pete Marsh: The trial with our 70 268, and our 60 to 62 certainly can go.
Pete Marsh: A little more distal when you really go into the places where you are not.
Pete Marsh: On label, which is the M. Three.
Pete Marsh: You're on label in them too.
Pete Marsh: You can use our current technology, when you're going into places, where youre not on label, which some of those digital trials that you'd stent retrievers showed.
Pete Marsh: It's a different story and there. The 43 has done a really good job plot turns as it gets smaller and smaller.
Pete Marsh: Sometimes many times be.
Pete Marsh: A little less.
Pete Marsh: Challenging to get out if you can just get the catheter there.
Pete Marsh: So we'll wait and see we haven't made any final decisions on on how small.
Pete Marsh: You can use what how small of a catheter or you can use thunderbolt with and is there a benefit as you go for smaller and smaller but we'll let you know.
Speaker Change: Great. Thanks, Adam.
Speaker Change: Thank you.
Speaker Change: Our next question is from the line of Richard <unk> with <unk>.
Speaker Change: Thanks for taking the questions and congrats on the quarter.
Speaker Change: Just the first one on U S stroke, I know you guys have been at or close to 20%.
Speaker Change: For U S.
Speaker Change: Neuro Thrombectomy last few quarters I know you have a tougher comp year over year. This quarter, but is it fair to assume that you were in that ballpark.
Park.
Speaker Change: Or maybe you could benchmark as to what the market rate is that you referenced yes. So.
Speaker Change: A couple of times Richard.
Speaker Change: Everyone wants to know the specific numbers and we're just going to go down this.
Speaker Change: Really tough path of course of number by number of quarter by quarter.
Speaker Change: Is that going to be helpful.
Speaker Change: We obviously called out.
Speaker Change: <unk> because of just the sort of the prominence of that growth.
Speaker Change: And the effect that it had.
Speaker Change: And the sizes.
Speaker Change: That market.
Speaker Change: Stroke as Ive said, we did really well.
Speaker Change: We clearly grew above the market. The market has you know has been growing at.
Speaker Change: As a small clip, but it's been not the same kind of growth that we've seen on the arterial side or venous side.
Speaker Change: And it was clear just from our own data looking at places that are doing cases at Houston not doing cases, we didn't really lose anybody and we saw a significant group of new physicians.
Speaker Change: Convert over so I think we're doing pretty well on the stroke side.
Speaker Change: Okay. I guess, if you can share what maybe a rough estimate of the U S market is and then I'll just provide my follow up now.
Speaker Change: I'm, not asking whether or not it's in guidance, but I'm guessing the answer is no, but you've got a number of new launches that are coming.
Speaker Change: <unk> has all been volume growth shouldn't should there be an opportunity for price as a tailwind or incremental driver in the second half from these new products and if you care to share whether or not you're factoring any of that into the guidance. Thanks.
Speaker Change: Yes, well so.
Speaker Change: The Big thing that we've talked about obviously is thunderbolt isn't in the guidance until we get approved then we'll obviously add it.
Speaker Change: We've said that.
Speaker Change: Before Thunderbolt the product that probably has.
Speaker Change: The most obvious price for us.
Speaker Change: It's actually Ironically, if you look at the vast majority of what people are doing whether they're using century version.
Speaker Change: Expensive guide catheters, and all that kind of stuff.
Speaker Change: Actually not going to be more expensive on a per case basis, but for us we will get a price better pits for the use of Thunderbolt.
Speaker Change: So that's that's true the larger question about raising price, maybe you weren't asking this but.
Speaker Change: In case you were.
Speaker Change: In response to this moment in time lots of companies, we compete with are raising their prices and.
Speaker Change: And Thats, how theyre seeing their growth, they're just saying my product now.
Speaker Change: <unk> X and.
Speaker Change: And that is their growth, it's not volume growth, it's not market growth in fact in some of the cases.
Speaker Change: The decline, but covered over by raising prices.
Speaker Change: Yes.
Speaker Change: Not something that's something that hospitals are all talking about right now.
Speaker Change: I've been brought into some of those conversations and it's.
Everyone's hearing about it we have not done that.
Speaker Change: And it.
Speaker Change: <unk> provides us because we have lots of growth coming from volume new cases.
Speaker Change: And that really does.
Speaker Change: In times when things are tough you know not doing that as a big deal and people remember that in a positive way for a long time. So I just wanted to make sure that was clear that it that we're not increasing our price.
Speaker Change: Your next question is from the line of Matthew O'brien with Piper Sandler.
Speaker Change: Your next question is from Matthew O'brien with Piper Sandler.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: Mr. O'brien, please make sure your line's on mute it.
Speaker Change: Hello.
Speaker Change: Blue We got you now.
Speaker Change: Do you have any now okay.
Adam Elsesser: So the peripheral number again, Adam Super strong.
Adam Elsesser: Can you just talk a little bit about what you're seeing in the marketplace in terms of the growth of that product.
Adam Elsesser: On the <unk> side of things, sorry, Flashpoint I suppose specifically.
Adam Elsesser: Specifically <unk> side DVT side of things are you seeing an inflection anywhere specifically I don't know if its on one side or the other and are you starting to see that penetration.
Speaker Change: Conversion away from Bolitics may be accelerating and then I do have a follow up.
Adam Elsesser: Yes, I mean.
Adam Elsesser: Just to give some sort of context.
Adam Elsesser: We obviously had a larger percentage of the market and DVT.
Adam Elsesser: When <unk> when we did.
Adam Elsesser: A couple of two quarters ago, so by definition.
Adam Elsesser: Bigger percentage of this growth is coming in P/e.
Adam Elsesser: But we're still seeing it in DVT as well.
Adam Elsesser: And again it really is it's not coming from lytic as much.
Adam Elsesser: Be it you know, there's always going to be somebody here and there, but the vast majority is really coming from other.
Adam Elsesser: People, you know other mechanical products and.
Adam Elsesser: And again not to sort of be flippant are smart.
Adam Elsesser: But JBT is just better.
Adam Elsesser: You're using a computer to accurate the valve it works a lot faster, we sort of shared what that looks like and as more and more people understand that they hear it they hear their friends. They go to meetings or talking about it. It brings people in S. A R had.
Adam Elsesser: Dozens and dozens of folks who haven't ever used our product come up to us and want to engage in a conversation where in the past that wasn't something they wanted to do and we're seeing that across the board again, it's a better product and.
Adam Elsesser: And we're not going to rest on our laurels I talked about that in the.
Adam Elsesser: Prepared remarks innovation is going to continue.
Adam Elsesser: With a priority focus on these <unk> products. So that we stay ahead.
Adam Elsesser: And we continue to make getting caught out more and more routine with these patients. So.
Speaker Change: That's what happens in these things happen in waves, they're not linear I got to repeat that over and over again, that's not code for anything other than that just a process. There's a process that happens when people talk to each other and then convert.
Adam Elsesser: It's a great moment.
Adam Elsesser: Lot of fun to have people, who for many many years have been skeptical now be approaching us and be the ones, primarily calling us versus us calling them.
Adam Elsesser: As a testament to the extraordinary.
Adam Elsesser: R&D work and frankly the patients in.
Adam Elsesser: And frankly dedication that our commercial team has to their customers.
Speaker Change: Got it Okay. I appreciate that and then question for Maggie and I'm sure Jason is going to shut this down, but but just that gross margin improvement in the quarter was again kind of eye popping.
Speaker Change: Peripheral is doing really well and assuming those have some really good gross margins to them can we potentially get to 70% gross margins a little bit earlier than the kind of end of next year I know, it's still a long way to go but I mean can we start touching that that kind of number even late this year or maybe Q2 of next year. Thank you.
Speaker Change: Yes. Thanks for the question, it's a little premature.
Speaker Change: Pretty mature to talk about is that.
Speaker Change: Everything is on the right track.
Speaker Change: I mean, you can get.
Speaker Change: Projection on this year's sequential improvement similar to last year. So it's a similar pace.
Speaker Change: Phasing of how our improvement in product mix had an impact of that gross margin, but at the same time I also pointed out that in the second quarter.
Speaker Change: Due to some accelerating investment and will be X out try to optimize element in fracturing process.
Speaker Change: The margin may be a little bit flat.
Speaker Change: Compared to the first quarter, but it's just the timing on the investment and that we are still on the right track. Thank you.
Speaker Change: Your final question comes from the line of David <unk> with Baird.
Speaker Change: And I've heard.
Speaker Change: Hello Your line is open.
Speaker Change: Can you hear me.
Speaker Change: Yes, we can hi, David.
Speaker Change: Great. Thanks for taking the questions and congrats on the quarter here, Adam I think last quarter, you talked more about a.
Speaker Change: Invest and focus on some of the embolization businesses in the U S. I'm wondering if you could maybe expand on kind of what your thoughts are there and where you think the benefit could be and if thats something that can help you get back to maybe more stable embolization growth and if so what are you kind of.
Speaker Change: That normalized market growth at.
Speaker Change: Yes.
Speaker Change: Thanks, David and it's a really good question.
Speaker Change: We've talked about a couple of times.
Speaker Change: The investment is in two areas one obviously in our on the innovation side.
Speaker Change: We've been working on.
Speaker Change: <unk> embolization technologies.
Speaker Change: <unk> is one of them.
Speaker Change: That that is there to solve a unique.
Speaker Change: And pretty significant issue.
Speaker Change: And if the product works once we get into the clinic with it the way, we anticipate and expect.
Speaker Change: I think it will be a pretty.
Speaker Change: Hopeful insignificant.
Speaker Change: Product and certainly add to the growth the other area that we're investing in is.
Speaker Change: I've talked about making sure the commercial team has the capacity to focus.
Speaker Change: We have a lot of products.
Speaker Change: And avascular Rep, who's selling a suite now of embolization tools with yet another one.
Speaker Change: To launch and then a suite of CVT tools, sometimes they are different customer bases.
Speaker Change: That's a lot to do and we need those teams to focus. So we will give you more information about that probably in upcoming quarters or what that really means at a specific level, but those are the two areas. So that both the embargo.
Speaker Change: The <unk> group can focus if you will that the thrombectomy can be on focus.
Speaker Change: And that to me is critical because otherwise you're just running around and you're not able to do it all.
Speaker Change: Okay great.
Speaker Change: Maybe on the.
Speaker Change: The medium kind of vessel segment.
Speaker Change: Segment, and the stroke side, I think were maybe three or four months past that data wonder.
Speaker Change: I'm wondering if you have any updated thoughts on what that market could be or could be post. The data. We saw in some of the checks that we've had.
Speaker Change: While not a positive for the total thrombectomy market seems to suggest that maybe the aspiration market could could see a benefit from what those trials read out to be so curious on any updated thoughts on that and whether or not maybe thunderbolt could play a role in that market. Thank you.
Speaker Change: Yes, so that's a great question so.
Speaker Change: It's.
Speaker Change: It's pretty clear that if youre going pretty distal into them three and so on with the century for you Shouldnt do that that was.
Speaker Change: To be honest.
Speaker Change: I think for folks who have focused on aspiration as a company. The whole time that was fairly obvious there's data recently published that.
Speaker Change: With our red forty-three showing a very different.
Speaker Change: Result in more distal vessels. So I think I think you're right. If your if youre going to do it you should be doing it with an appropriate sized aspiration catheter.
Speaker Change: I think there is.
Speaker Change: So I think that's there is a benefit for aspiration.
Speaker Change: In that area as.
Speaker Change: As it relates to Thunderbolt.
Speaker Change: The question is still open.
Speaker Change: How small.
Speaker Change: Of a catheter can benefit with the idea of modulate the aspiration right now we do have Thunderbolt on Red 62 that was part of our trial.
Speaker Change: So that's not as obviously as small as 43, but it certainly can go to sort of the mid sized vessels.
Speaker Change: Those are not terms of everyone that has slightly different definitions, but but if it's 62 fits.
Speaker Change: It's proven to be a very effective tool.
Speaker Change: In the trial, so with Thunderbolt, So I think we're positioned really well too.
Speaker Change: Be able to help all of those patients ultimately.
Speaker Change: Where the catheter can fit.
Speaker Change: And that's something we've always been doing and we're going to continue to do it.
Speaker Change: Yeah.
Speaker Change: This.
Brennan: <unk> the Q&A portion of today's conference call I will now turn todays call just to say you Brennan for closing remarks.
Speaker Change: 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 second quarter call.
Speaker Change: This concludes today's conference call you may now disconnect.
Speaker Change: Please wait the conference will begin shortly.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Sure.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: Thanks.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: No.
Speaker Change: Yeah.
Speaker Change: Thanks.