Penumbra Inc
For the period ended Jun 30, 2024. Filed Jul 30, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 30, 2024
PEN$319.21-0.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-07.
0001321732-24-000060
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-07-30.
0001321732-24-000087
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 86 previous paragraphs and 123 current paragraphs.
57 unchanged; 26 reworded; 31 added; 3 removed; 0 previous and 9 current paragraphs rearranged.
Tables are not compared: 9 previous and 17 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (31)
Current report
During the three months ended June 30, 2024, we made the strategic decision to explore alternative avenues for our Immersive Healthcare business, and as a result we recorded an impairment charge of $110.3 million related to our immersive healthcare asset group. Refer to Note “4. Impairment of Immersive Healthcare Asset Group” to our condensed consolidated financial statements in Part I, Item 1 of this Form 10-Q for more details.
Current report
Non-GAAP Financial Measures
Current report
In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses non-GAAP financial measures such as non-GAAP cost of revenue, non-GAAP gross profit and non-GAAP gross margin. Our management believes the non-GAAP financial measures disclosed are useful to investors in assessing the operating performance of our business and provide meaningful comparisons to prior periods and thus a more complete understanding of our business than could be obtained absent this disclosure. We consider non-GAAP cost of revenue, non-GAAP gross profit and non-GAAP gross margin useful metrics to investors as they eliminate the impact of non-cash inventory charges related to the impairment of our immersive healthcare asset group and allow a more direct comparison of our business performance between periods.
Current report
The non-GAAP financial measures included may not be comparable to, similarly titled measures used by other companies. These non-GAAP measures should not be considered in isolation or as alternatives to GAAP measures. We urge investors to review the reconciliation of these non-GAAP financial measures to the most comparable GAAP financial measures set forth below and not to rely on any single financial measure to evaluate our business.
Current report
The following table presents a reconciliation of the Company’s GAAP cost of revenue, GAAP gross profit and GAAP gross margin to non-GAAP cost of revenue, non-GAAP gross profit and non-GAAP gross margin 1 for the three months ended June 30, 2024:
Current report
1 See “Non-GAAP Financial Measures” for important information about our use of non-GAAP measures.
Current report
2 Represents a charge of $33.4 million to cost of revenue in connection with an inventory write-down to net realizable value due to the immersive healthcare asset group impairment during the three months ended June 30, 2024. See Note “4. Impairment of Immersive Healthcare Asset Group” to our condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information.
Current report
Gross margin was 54.4% in the three months ended June 30, 2024, including a $33.4 million inventory impairment charge to cost of revenue in connection with the impairment of our immersive healthcare asset group, which compares to 63.8% in the three months ended June 30, 2023. Excluding the $33.4 million charge, non-GAAP gross margin increased by 1.7% percentage points to 65.5% in the three months ended June 30, 2024 compared to GAAP and non-GAAP gross margin of 63.8% in the three months ended June 30, 2023.
Current report
SG&A expenses increased by $14.5 million, or 11.4%, to $141.9 million in the three months ended June 30, 2024, from $127.4 million in the three months ended June 30, 2023. The increase was primarily due to a $7.3 million increase in personnel-related expenses driven by an increase in headcount and related expenses to support our growth, a $3.4 million increase in other professional services, and a $3.0 million increase in costs related to marketing events.
Current report
Impairment Charge
Current report
During the three months ended June 30, 2024, we recorded a $76.9 million impairment charge which was comprised of $58.9 million in finite lived intangible assets and $18.0 million in property and equipment, respectively in connection with the impairment of our immersive healthcare asset group. See Note “4. Impairment of Immersive Healthcare Asset Group” to our condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information.
Current report
(Benefit from) provision for income taxes
Current report
Our benefit from income taxes was $17.7 million for the three months ended June 30, 2024, which was primarily due to tax expenses attributable to our worldwide profits offset by a discrete tax benefit attributable to the impairment charge related to our immersive healthcare asset group. Our provision for income taxes was $0.6 million for the three months ended June 30, 2023, which was primarily due to tax expenses attributable to our worldwide profits offset by excess tax benefits from stock-based compensation attributable to our U.S. jurisdiction.
Current report
Our effective tax rate changed to 22.7% for the three months ended June 30, 2024, from 2.9% for the three months ended June 30, 2023, primarily due to decrease in excess tax benefits from stock-based compensation attributable to our U.S. jurisdiction in 2024.
Current report
Six Months Ended June 30, 2024 Compared to the Six Months Ended June 30, 2023
Current report
Revenue
Current report
Revenue increased $75.2 million, or 14.9%, to $578.1 million in the six months ended June 30, 2024, from $502.9 million in the six months ended June 30, 2023. Overall revenue growth was primarily due to an increase in sales of our new and existing thrombectomy products.
Current report
Revenue by Geographic Area
Current report
Revenue from sales in international markets increased $6.0 million, or 4.2%, to $150.2 million in the six months ended June 30, 2024, from $144.2 million in the six months ended June 30, 2023. Revenue from international sales represented 26.0% and 28.7% of our total revenue for the six months ended June 30, 2024 and 2023, respectively.
Current report
Gross Margin
Current report
The following table presents a reconciliation of the Company’s GAAP cost of revenue, GAAP gross profit and GAAP gross margin to non-GAAP cost of revenue, non-GAAP gross profit and non-GAAP gross margin 1 for the six months ended June 30, 2024 and 2023:
Current report
1 See “Non-GAAP Financial Measures” for important information about our use of non-GAAP measures.
Current report
2 Represents a charge of $33.4 million to cost of revenue in connection with an inventory write-down to net realizable value due to the immersive healthcare asset group impairment during the three months ended June 30, 2024. See Note “4. Impairment of Immersive Healthcare Asset Group” to our condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information.
Current report
Gross margin was 59.5% in the six months ended June 30, 2024, including a $33.4 million inventory impairment charge to cost of revenue in connection with the impairment of our immersive healthcare asset group, which compares to 63.2% in the six months ended June 30, 2023. Excluding the $33.4 million charge, non-GAAP gross margin increased by 2.1% percentage points to 65.3% in the six months ended June 30, 2024 compared to GAAP and non-GAAP gross margin of 63.2% in the six months ended June 30, 2023.
Current report
Research and Development (“R&D”)
Current report
R&D expenses increased by $8.0 million, or 19.4%, to $49.6 million in the six months ended June 30, 2024, from $41.5 million in the six months ended June 30, 2023. The increase was primarily due to a $3.1 million increase in personnel-related expenses driven by an increase in headcount and related expenses to support our growth, a $2.7 million increase in product development and testing costs, and a $1.0 million increase in infrastructure costs.
Current report
Impairment Charge
Current report
During the six months ended June 30, 2024, we recorded a $76.9 million impairment charge which was comprised of $58.9 million in finite lived intangible assets and $18.0 million in property and equipment, respectively in connection with the impairment of our immersive healthcare asset group. See Note “4. Impairment of Immersive Healthcare Asset Group” to our condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information.
Current report
(Benefit from) provision for income taxes
Current report
Our benefit from income taxes was $14.1 million for the six months ended June 30, 2024, which was primarily due to tax expenses attributable to our worldwide profits and a discrete tax benefit attributable to the impairment charge related to our immersive healthcare asset group. Our provision for income taxes was $0.7 million for the six months ended June 30, 2023, which was primarily due to tax expenses attributable to our worldwide profits offset by excess tax benefits from stock-based compensation attributable to our U.S. jurisdiction.
Current report
Our effective tax rate changed to 22.2% for the six months ended June 30, 2024 from 2.4% for the six months ended June 30, 2023, primarily due to decrease in excess tax benefits from stock-based compensation attributable to our U.S. jurisdiction in 2024.
Removed paragraphs (3)
Previous report
Provision for income taxes
Previous report
Our provision for income taxes was $3.6 million for the three months ended March 31, 2024, compared to $0.1 million for the three months ended March 31, 2023. Our effective tax rate was 24.8% for the three months ended March 31, 2024, compared to 1.0% for the three months ended March 31, 2023. The change in effective tax rate was primarily attributable to an increase in tax expense due to profit increase and a decrease in excess tax benefits from stock-based compensation attributable to our U.S. jurisdiction.
Previous report
Net Cash (Used In) Provided By Financing Activities
Reworded paragraphs (26)
Previous wording
We expect to continue to develop and build our portfolio of products, including our thrombectomy, embolization, access and immersive healthcare technologies, while iterating on our currently available products. Generally, when we introduce a next generation product or a new product designed to replace a current product, sales of the earlier generation product or the product replaced decline. Our research and development activities are centered around the development of new products and clinical activities designed to support our regulatory submissions and demonstrate the effectiveness of our products.
Current wording
We expect to continue to develop and build our portfolio of products, including our thrombectomy, embolization and access technologies, while iterating on our currently available products. Generally, when we introduce a next generation product or a new product designed to replace a current product, sales of the earlier generation product or the product replaced decline. Our research and development activities are centered around the development of new products and clinical activities designed to support our regulatory submissions and demonstrate the effectiveness of our products.
Previous wording
•Neuro thrombectomy - Penumbra System, Penumbra RED, JET, ACE, and BMX, MAX catheters and the 3D Revascularization Device, Penumbra ENGINE and other components and accessories
Current wording
•Neuro thrombectomy - Penumbra System, including Penumbra RED, JET, ACE, BMX, and MAX catheters and the 3D Revascularization Device, Penumbra ENGINE and other components and accessories
Previous wording
•Neuro embolization - Penumbra SMART COIL, Penumbra Coil 400, POD400 and PAC400
Current wording
•Neuro embolization - Penumbra SMART COIL, Penumbra Coil 400, POD400, PAC400 and SwiftPAC Coil
Previous wording
•Access - delivery catheters, consisting of Neuron, Neuron MAX Select, BENCHMARK, BMX, DDC, PX SLIM and SENDit
Current wording
•Access - delivery catheters, consisting of Neuron, Neuron MAX Select, BENCHMARK, BMX, DDC, PX SLIM, SENDit and MidWay
Previous wording
We support healthcare providers, hospitals and clinics in more than 100 countries. In the three months ended March 31, 2024 and 2023, 24.8% and 28.8% of our revenue, respectively, was generated from customers located outside of the United States. Our sales outside of the United States are denominated principally in the euro, with some sales being denominated in other currencies. As a result, we have foreign exchange exposure but do not currently engage in hedging.
Current wording
We support healthcare providers, hospitals and clinics in more than 100 countries. In the six months ended June 30, 2024 and 2023, 26.0% and 28.7% of our revenue, respectively, was generated from customers located outside of the United States. Our sales outside of the United States are denominated principally in the euro, with some sales being denominated in other currencies. As a result, we have foreign exchange exposure but do not currently engage in hedging.
Previous wording
We generated revenue of $278.7 million and $241.4 million for the three months ended March 31, 2024 and 2023, respectively, an increase of $37.3 million. We generated income from operations of $12.1 million and $8.0 million for the three months ended March 31, 2024 and 2023, respectively.
Current wording
We generated revenue of $578.1 million and $502.9 million for the six months ended June 30, 2024 and 2023, respectively, an increase of $75.2 million. We generated loss from operations of $68.9 million and income from operations of $25.9 million for the six months ended June 30, 2024 and 2023, respectively.
Previous wording
In addition, we have experienced and expect to continue to experience meaningful variability in our quarterly revenue, gross profit and gross margin percentage as a result of a number of factors, including, but not limited to: the number of available selling days, which can be impacted by holidays; the mix of products sold; the geographic mix of where products are sold; the demand for our products and the products of our competitors; the timing of or failure to obtain regulatory approvals or clearances for products; increased competition; the timing of customer orders; inventory write-offs due to obsolescence; costs, benefits and timing of new product introductions; costs, benefits and timing of the acquisition and integration of businesses and product lines we may acquire; the availability and cost of components and raw materials; and fluctuations in foreign currency exchange rates. We may experience quarters in which we have significant revenue growth sequentially followed by quarters of moderate or no revenue growth. Additionally, we may experience quarters in which operating expenses, in particular research and development expenses, fluctuate depending on the stage and timing of product development.
Current wording
In addition, we have experienced and expect to continue to experience meaningful variability in our quarterly revenue, gross profit and gross margin percentage as a result of a number of factors, including, but not limited to: the number of available selling days, which can be impacted by holidays; the mix of products sold; the geographic mix of where products are sold; the demand for our products and the products of our competitors; the timing of or failure to obtain regulatory approvals or clearances for products; increased competition; the timing of customer orders; inventory or other asset write-offs or write-downs; costs, benefits and timing of new product introductions; costs, benefits and timing of the acquisition and integration of businesses and product lines we may acquire; the availability and cost of components and raw materials; and fluctuations in foreign currency exchange rates. We may experience quarters in which we have significant revenue growth sequentially followed by quarters of moderate or no revenue growth. Additionally, we may experience quarters in which operating expenses, in particular research and development expenses, fluctuate depending on the stage and timing of product development.
Previous wording
Revenue increased $37.3 million, or 15.4%, to $278.7 million in the three months ended March 31, 2024, from $241.4 million in the three months ended March 31, 2023. Overall revenue growth was primarily due to an increase in sales of our existing thrombectomy products.
Current wording
Revenue increased $37.9 million, or 14.5%, to $299.4 million in the three months ended June 30, 2024, from $261.5 million in the three months ended June 30, 2023. Overall revenue growth was primarily due to an increase in sales of our new and existing thrombectomy products.
Previous wording
Revenue from our global thrombectomy products increased $42.7 million, or 29.5%, to $187.7 million in the three months ended March 31, 2024, from $145.0 million in the three months ended March 31, 2023. The increase in our global thrombectomy products was primarily attributable to higher sales volume in the United States as a result of sales and further market penetration of our existing products. This increase was driven by sales of our U.S. thrombectomy products, which increased by 35.2% in the three months ended March 31, 2024. Prices for our thrombectomy products remained substantially unchanged during the period.
Current wording
Revenue from our global thrombectomy products increased $41.0 million, or 25.2%, to $203.5 million in the three months ended June 30, 2024, from $162.5 million in the three months ended June 30, 2023. The increase in our global thrombectomy products was primarily attributable to higher sales volume in the United States as a result of sales of new products and further market penetration of our existing products. This increase was driven by sales of our U.S. thrombectomy products, which increased by 24.9% in the three months ended June 30, 2024. Prices for our thrombectomy products remained substantially unchanged during the period.
Previous wording
Revenue from our global embolization and access products decreased $5.5 million, or 5.7%, to $91.0 million in the three months ended March 31, 2024, from $96.4 million in the three months ended March 31, 2023. The decrease in our global embolization and access products was primarily driven by our international embolization and access products, which decreased by 11.6% in the three months ended March 31, 2024. Prices for our embolization and access products remained substantially unchanged during the period.
Current wording
Revenue from our global embolization and access products decreased $3.1 million, or 3.1%, to $95.9 million in the three months ended June 30, 2024, from $99.0 million in the three months ended June 30, 2023. The decrease in our global embolization and access products was primarily driven by our international embolization and access products, which decreased by 10.8% in the three months ended June 30, 2024. Prices for our embolization and access products remained substantially unchanged during the period.
Previous wording
The following table presents revenue by geographic area, based on our customers’ shipping destinations:
Current wording
The following table presents revenue by geographic area, based on our customers’ shipping destinations, for the three months ended June 30, 2024 and 2023:
Previous wording
Revenue from product sales in international markets decreased $0.5 million, or 0.7%, to $69.0 million in the three months ended March 31, 2024, from $69.5 million in the three months ended March 31, 2023. Revenue from international sales represented 24.8% and 28.8% of our total revenue for the three months ended March 31, 2024 and 2023, respectively.
Current wording
Revenue from product sales in international markets increased $6.5 million, or 8.7%, to $81.2 million in the three months ended June 30, 2024, from $74.7 million in the three months ended June 30, 2023. Revenue from international sales represented 27.1% and 28.6% of our total revenue for the three months ended June 30, 2024 and 2023, respectively.
Previous wording
Gross margin increased by 2.4 percentage points to 65.0% in the three months ended March 31, 2024, from 62.6% in the three months ended March 31, 2023. Gross margin is impacted by product mix, regional mix, and production initiatives to support demand and create future efficiencies. As such, with favorable product mix, improvement in productivity, and by leveraging our fixed costs on higher volume of new product sales during the year, our gross margin may be positively impacted in the future.
Current wording
Gross margin is impacted by product mix, regional mix, and production initiatives to support demand and create future efficiencies. As such, with favorable product mix, improvement in productivity, and by leveraging our fixed costs on higher volume of new product sales during the year, our gross margin may be positively impacted in the future.
Previous wording
R&D expenses increased by $4.6 million, or 23.2%, to $24.6 million in the three months ended March 31, 2024, from $20.0 million in the three months ended March 31, 2023. The increase was primarily due to a $2.0 million increase in personnel-related expenses driven by an increase in headcount and related expenses to support our growth and a $1.3 million increase in product development and testing costs.
Current wording
R&D expenses increased by $3.4 million, or 15.8%, to $24.9 million in the three months ended June 30, 2024, from $21.5 million in the three months ended June 30, 2023. The increase was primarily due to a $1.3 million increase in product development and testing costs and a $1.1 million increase in personnel-related expenses driven by an increase in headcount and related expenses to support our growth.
Previous wording
Prospectively, our effective tax rate will likely be driven by (1) permanent differences in taxable income for tax and financial reporting purposes, (2) tax expense or benefit attributable to our worldwide financial result, and (3) discrete tax adjustments such as excess tax benefits or deficiencies related to stock-based compensation. Our income tax provision is subject to volatility as the amount of excess tax benefits or deficiencies can fluctuate from period to period based on the price of our stock, the volume of share-based grants settled or vested, and the fair value assigned to equity awards under U.S. GAAP.
Current wording
Prospectively, our effective tax rate will likely be driven by (1) permanent differences in taxable income for tax and financial reporting purposes, (2) tax expense or benefit attributable to our worldwide financial result, and (3) discrete tax adjustments such as excess tax benefits or deficiencies related to stock-based compensation. Our income tax provision is subject to volatility as the amount of excess tax benefits or deficiencies can fluctuate from period to period based on the price of our stock, the volume of share-based grants settled or vested, and the fair value assigned to equity awards under U.S. GAAP. In addition, changes in tax law or our interpretation thereof, and changes to our valuation allowance could result in fluctuations in our effective tax rate.
Previous wording
SG&A expenses increased by $21.3 million, or 17.3%, to $144.4 million in the three months ended March 31, 2024, from $123.1 million in the three months ended March 31, 2023. The increase was primarily due to a $6.4 million increase in personnel-related expenses driven by an increase in headcount and related expenses to support our growth, $4.8 million in non-recurring litigation related expenses, including settlement costs and legal fees, associated with wage and hour complaints filed against the Company in 2023, a $3.0 million increase in costs related to marketing events, and a $2.1 million increase in other professional services.
Current wording
SG&A expenses increased by $35.8 million, or 14.3%, to $286.3 million in the six months ended June 30, 2024, from $250.5 million in the six months ended June 30, 2023. The increase was primarily due to a $13.7 million increase in personnel-related expense driven by an increase in headcount and related expenses to support our growth, a $6.0 million increase in costs related to marketing events, a $5.4 million increase in other professional services, and a $4.8 million increase in non-recurring litigation related expenses, including settlement costs and legal fees, associated with wage and hour complaints filed against the Company in 2023.
Previous wording
As of March 31, 2024, we had $782.2 million in working capital, which included $223.1 million in cash and cash equivalents and $90.4 million in marketable investments. As of March 31, 2024, we held approximately 7.7% of our cash and cash equivalents in foreign entities.
Current wording
As of June 30, 2024, we had $792.8 million in working capital, which included $288.3 million in cash and cash equivalents and $51.4 million in marketable investments. As of June 30, 2024, we held approximately 8.5% of our cash and cash equivalents in foreign entities.
Previous wording
Net cash provided by operating activities consists primarily of net income adjusted for certain non-cash items (including depreciation and amortization, stock-based compensation expense, inventory write-offs and write-downs, changes in deferred tax balances, and the effect of changes in working capital and other activities).
Current wording
Net cash provided by operating activities consists primarily of net income adjusted for certain non-cash items (including depreciation and amortization, stock-based compensation expense, impairment charge, inventory write-offs and write-downs, changes in deferred tax balances, and the effect of changes in working capital and other activities).
Previous wording
Net cash provided by operating activities was $38.3 million during the three months ended March 31, 2024 and consisted of consolidated net income of $11.0 million and non-cash items of $21.7 million, offset by net changes in operating assets and liabilities of $5.6 million. The change in operating assets and liabilities primarily relates to a decrease in accounts receivable of $8.5 million due to timing of invoicing and collections, an increase in accounts payable of $5.2 million due to timing of payments, and a decrease in prepaid expenses and other current and non-current assets of $4.6 million. This was partially offset by an increase in inventories of $11.6 million to support our growth and a decrease in accrued expenses and other non-current liabilities of $1.0 million due to timing of payments.
Current wording
Net cash provided by operating activities was $60.9 million during the six months ended June 30, 2024 and consisted of consolidated net loss of $49.2 million and non-cash items of $128.4 million, offset by net changes in operating assets and liabilities of $18.3 million. The change in operating assets and liabilities primarily relates to an increase in inventories of $23.0 million to support our growth and an increase in accounts payable of $5.5 million, due to timing of payments. This was partially offset by a decrease in accounts receivable of $2.0 million due to timing of invoicing and collections, a decrease in prepaid expenses and other current and non-current assets of $2.1 million, and a decrease in accrued expenses and other non-current liabilities of $0.9 million due to timing of payments.
Previous wording
Net cash provided by operating activities was $13.1 million during the three months ended March 31, 2023 and consisted of consolidated net income of $8.6 million and non-cash items of $19.5 million, offset by net changes in operating assets and liabilities of $15.0 million. The change in operating assets and liabilities includes an increase in inventories of $10.6 million to support our growth, an increase in accounts receivable of $3.5 million due to timing of receipt of payment, and an increase in prepaid expenses and other current and non-current assets of $4.0 million. This was partially offset by an increase in accounts payable of $2.1 million and an increase in accrued expenses and other non-current liabilities of $1.1 million.
Current wording
Net cash provided by operating activities was $30.2 million during the six months ended June 30, 2023 and consisted of consolidated net income of $27.5 million and non-cash items of $41.4 million, offset by net changes in operating assets and liabilities of $38.7 million. The change in operating assets and liabilities primarily relates to an increase in inventories of $25.8 million to support our growth, an increase in accounts receivable of $8.4 million due to timing of receipt of payment, and an increase in prepaid expenses and other current and non-current assets of $5.9 million. This was partially offset by an increase in accrued expenses and other non-current liabilities of $1.6 million.
Previous wording
Net cash provided by investing activities was $18.4 million during the three months ended March 31, 2024 and primarily consisted of $32.1 million in proceeds from maturities of marketable investments, net of purchases, partially offset by purchases of non-marketable investments of $10.0 million and capital expenditures of $5.8 million.
Current wording
Net cash provided by investing activities was $52.9 million during the six months ended June 30, 2024 and primarily consisted of $71.6 million in proceeds from maturities of marketable investments, net of purchases, partially offset by purchases of capital expenditures of $10.4 million and non-marketable investments of $10.0 million.
Previous wording
Net cash provided by investing activities was $10.7 million during the three months ended March 31, 2023 and primarily consisted of proceeds from maturities of marketable investments of $14.6 million, partially offset by capital expenditures of $3.9 million.
Current wording
Net cash provided by investing activities was $4.0 million during the six months ended June 30, 2023 and primarily consisted of $12.8 million in proceeds from maturities of marketable investments, net of purchases, which was partially offset by capital expenditures of $8.2 million.
Previous wording
Net cash (used in) provided by financing activities primarily relates to proceeds from exercises of stock options and issuances of common stock under our employee stock purchase plan, partially offset by payments of employee taxes related to vested restricted stock units and payments towards the reduction of our finance lease obligations.
Current wording
Net cash provided by financing activities primarily relates to proceeds from exercises of stock options and issuances of common stock under our employee stock purchase plan, partially offset by payments of employee taxes related to vested restricted stock units and payments towards the reduction of our finance lease obligations.
Previous wording
Net cash provided by financing activities was $1.4 million during the three months ended March 31, 2023 and primarily consisted of proceeds from exercises of stock options of $2.2 million, partially offset by $0.5 million in payments towards finance leases and $0.2 million of payments of employee taxes related to vested restricted stock units.
Current wording
Net cash provided by financing activities was $7.5 million during the six months ended June 30, 2024 and primarily consisted of proceeds from the issuance of common stock under our employee stock purchase plan of $8.9 million, partially offset by $1.1 million in payments towards finance leases and $0.5 million of payments of employee taxes related to vested restricted stock units.
Previous wording
Net cash used in financing activities was $0.8 million during the three months ended March 31, 2024 and primarily consisted of $0.6 million in payments towards finance leases and $0.4 million of payments of employee taxes related to vested restricted stock units, partially offset by proceeds from exercises of stock options of $0.2 million.
Current wording
Net cash provided by financing activities was $10.1 million during the six months ended June 30, 2023 and primarily consisted of proceeds from the issuance of common stock under our employee stock purchase plan of $8.4 million and proceeds from exercises of stock options of $3.8 million, partially offset by $1.0 million of payments of employee taxes related to vested restricted stock units and $1.0 million in payments towards finance leases.
Previous wording
For information with respect to recently issued accounting standards and the impact of these standards on our consolidated financial statements, refer to Note “2. Summary of Significant Accounting Policies” to our consolidated financial statements in Part I, Item 1 of this Form 10-Q.
Current wording
For information with respect to recently issued accounting standards and the impact of these standards on our consolidated financial statements, refer to Note “2. Summary of Significant Accounting Policies” to our condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q.
Rearranged current paragraphs (9)
Current report — wording carried from elsewhere
Revenue from our global thrombectomy products increased $83.7 million, or 27.2%, to $391.2 million in the six months ended June 30, 2024, from $307.5 million in the six months ended June 30, 2023. The increase in our global thrombectomy products was primarily attributable to higher sales volume in the United States as a result of sales of new products and further market penetration of our existing products. This increase was driven by sales of our U.S. thrombectomy products, which increased by 29.8% in the six months ended June 30, 2024. Prices for our thrombectomy products remained substantially unchanged during the period.
Current report — wording carried from elsewhere
Revenue from our global embolization and access products decreased $8.6 million, or 4.4%, to $186.9 million in the six months ended June 30, 2024, from $195.4 million in the six months ended June 30, 2023. The decrease in our global embolization and access products was primarily driven by our international embolization and access products, which decreased by 11.2% in the six months ended June 30, 2024. Prices for our embolization and access products remained substantially unchanged during the period.
Current report — wording carried from elsewhere
The following table presents revenue by geographic area, based on our customer’s shipping destination, for the six months ended June 30, 2024 and 2023:
Current report — wording carried from elsewhere
Gross margin is impacted by product mix, regional mix, start-up costs associated with new product launches, and production initiatives to support demand and create future efficiencies. As such, with favorable product mix, improvement in productivity, and by leveraging our fixed costs on higher volume of new product sales during the year, our gross margin may be positively impacted in the future.
Current report — wording carried from elsewhere
We have continued to make investments, and plan to continue to make investments, in the development of our products. As part of our ongoing investment in the development of our products, we may incur additional expenses related to research and development milestones. In addition, we have experienced in the past, and may continue to experience in the future, variability in expenses incurred due to the timing and costs of clinical trials and product development, which may include additional personnel-related expenses in conjunction with the launch of new products.
Current report — wording carried from elsewhere
Sales, General and Administrative (SG&A)
Current report — wording carried from elsewhere
As we continue to invest in our growth, we have expanded and may continue to expand our sales, marketing, and general and administrative teams through the hiring of additional employees in critical roles that support our strategic initiatives. In addition, we have experienced in the past, and may continue to experience in the future, variability in expenses incurred due to the timing and costs of investments to support the business.
Current report — wording carried from elsewhere
Prospectively, our effective tax rate will likely be driven by (1) permanent differences in taxable income for tax and financial reporting purposes, (2) tax expense or benefit attributable to our worldwide financial results, and (3) discrete tax adjustments such as excess tax benefits or deficiencies related to stock-based compensation. Our income tax provision can be volatile as the amount of excess tax benefits or deficiencies can fluctuate from period to period due to the price of our stock, the volume of share-based grants exercised or vested, and the fair value assigned to equity awards under U.S. GAAP. In addition, changes in tax law or our interpretation thereof, and changes to our valuation allowance could result in fluctuations in our effective tax rate.
Current report — wording carried from elsewhere
Net Cash Provided By Financing Activities