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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2024
OR 
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from_____ to _____         
Commission File Number: 001-37557
Penumbra, Inc.
(Exact name of registrant as specified in its charter)
Delaware05-0605598
(State or other jurisdiction of
incorporation or organization)		(I.R.S. Employer
Identification No.)

One Penumbra Place
Alameda, CA 94502
(Address of principal executive offices, including zip code)

(510) 748-3200
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, Par value $0.001 per sharePENThe New York Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes: ☒    No:  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes:  ☒    No:  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer☒Accelerated filer☐
Non-accelerated filer☐Smaller reporting company☐
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes:  ☐  No:  ☒
As of April 23, 2024, the registrant had 38,764,917 shares of common stock, par value $0.001 per share, outstanding.



FORM 10-Q
TABLE OF CONTENTS
 
Page


PART I - FINANCIAL INFORMATION
ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
Penumbra, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
(in thousands)
March 31, 2024December 31, 2023
Assets
Current assets:
Cash and cash equivalents$223,114 $167,486 
Marketable investments90,360 121,701 
Accounts receivable, net of allowance for credit losses of $3,020 and $3,169 at March 31, 2024 and December 31, 2023, respectively
191,989 201,768 
Inventories398,366 388,023 
Prepaid expenses and other current assets31,194 36,424 
Total current assets935,023 915,402 
Property and equipment, net75,744 72,691 
Operating lease right-of-use assets185,845 188,756 
Finance lease right-of-use assets30,234 31,092 
Intangible assets, net68,421 71,056 
Goodwill166,103 166,270 
Deferred taxes84,661 85,158 
Other non-current assets33,814 25,880 
Total assets$1,579,845 $1,556,305 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$32,454 $27,155 
Accrued liabilities106,549 110,555 
Current operating lease liabilities11,520 11,203 
Current finance lease liabilities2,280 2,231 
Total current liabilities152,803 151,144 
Non-current operating lease liabilities194,537 197,229 
Non-current finance lease liabilities23,098 23,680 
Other non-current liabilities5,876 5,308 
Total liabilities376,314 377,361 
Commitments and contingencies (Note 8)
Stockholders’ equity:
Common stock39 39 
Additional paid-in capital1,062,470 1,047,198 
Accumulated other comprehensive loss (4,838)(3,151)
Retained earnings145,860 134,858 
Total stockholders’ equity1,203,531 1,178,944 
Total liabilities and stockholders’ equity$1,579,845 $1,556,305 

See accompanying notes to the unaudited condensed consolidated financial statements
2
Penumbra, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except share and per share amounts)
Three Months Ended March 31,
20242023
Revenue$278,655 $241,398 
Cost of revenue97,516 90,326 
Gross profit181,139 151,072 
Operating expenses:
Research and development 24,626 19,986 
Sales, general and administrative 144,412 123,078 
Total operating expenses 169,038 143,064 
Income from operations12,101 8,008 
Interest and other income, net2,525 644 
Income before income taxes14,626 8,652 
Provision for income taxes3,624 90 
Net income$11,002 $8,562 
Net income per share:
Basic$0.28 $0.22 
Diluted$0.28 $0.22 
Weighted average shares outstanding:
Basic38,717,334 38,186,342 
Diluted39,387,359 39,075,388 

See accompanying notes to the unaudited condensed consolidated financial statements
3
Penumbra, Inc.
Condensed Consolidated Statements of Comprehensive Income (Loss)
(unaudited)
(in thousands)
Three Months Ended March 31,
20242023
Net income$11,002 $8,562 
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments, net of tax(1,853)403 
Net change in unrealized gains or losses on available-for-sale securities, net of tax166 860 
Total other comprehensive (loss) income, net of tax(1,687)1,263 
Comprehensive income$9,315 $9,825 

See accompanying notes to the unaudited condensed consolidated financial statements

4
Penumbra, Inc.
Condensed Consolidated Statements of Stockholders’ Equity
(unaudited)
(in thousands, except share amounts)
Common StockAdditional Paid-in CapitalAccumulated Other Comprehensive LossRetained Earnings Total Stockholders’ Equity
SharesAmount
Balance at December 31, 202338,681,549 $39 $1,047,198 $(3,151)$134,858 $1,178,944 
Issuance of common stock76,597 — 238 — — 238 
Shares held for tax withholdings(1,732)— (421)— — (421)
Stock-based compensation— — 15,455 — — 15,455 
Other comprehensive loss— — — (1,687)— (1,687)
Net income — — — — 11,002 11,002 
Balance at March 31, 202438,756,414 $39 $1,062,470 $(4,838)$145,860 $1,203,531 


Common StockAdditional Paid-in CapitalAccumulated Other Comprehensive LossRetained Earnings Total Stockholders’ Equity
SharesAmount
Balance at December 31, 202238,107,977 $38 $963,040 $(8,124)$43,904 $998,858 
Issuance of common stock134,936 — 2,209 — — 2,209 
Shares held for tax withholdings(813)— (204)— — (204)
Stock-based compensation— — 13,781 — — 13,781 
Other comprehensive income— — — 1,263 — 1,263 
Net income— — — — 8,562 8,562 
Balance at March 31, 202338,242,100 $38 $978,826 $(6,861)$52,466 $1,024,469 
See accompanying notes to the unaudited condensed consolidated financial statements
5
Penumbra, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
(in thousands)
 Three Months Ended March 31,
 20242023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income$11,002 $8,562 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization7,519 6,575 
Stock-based compensation13,569 12,766 
Inventory write-downs358 1,009 
Deferred taxes475 (953)
Other(221)140 
Changes in operating assets and liabilities:
Accounts receivable8,460 (3,540)
Inventories(11,619)(10,641)
Prepaid expenses and other current and non-current assets4,565 (3,994)
Accounts payable5,209 2,074 
Accrued expenses and other non-current liabilities(1,022)1,131 
Net cash provided by operating activities38,295 13,129 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of non-marketable investments(10,000)— 
Purchases of marketable investments(11,267)— 
Proceeds from maturities of marketable investments43,375 14,605 
Purchases of property and equipment(5,824)(3,894)
Other2,100 — 
Net cash provided by investing activities18,384 10,711 
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercises of stock options238 2,209 
Payment of employee taxes related to vested stock(421)(204)
Payments of finance lease obligations(550)(474)
Other(61)(155)
 Net cash (used in) provided by financing activities(794)1,376 
Effect of foreign exchange rate changes on cash and cash equivalents(257)(386)
NET INCREASE IN CASH AND CASH EQUIVALENTS55,628 24,830 
CASH AND CASH EQUIVALENTS—Beginning of period167,486 69,858 
CASH AND CASH EQUIVALENTS—End of period$223,114 $94,688 
NONCASH INVESTING AND FINANCING ACTIVITIES:
Right-of-use assets obtained in exchange for operating lease obligations$292 $341 
Right-of-use assets obtained in exchange for finance lease obligations$17 $68 
Purchase of property and equipment funded through accounts payable and accrued liabilities$1,816 $1,781 
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for amounts included in the measurement of operating lease liabilities$5,337 $4,706 
Cash paid for income taxes$1,125 $1,413 
See accompanying notes to the unaudited condensed consolidated financial statements
6
Penumbra, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)

1. Organization and Description of Business
Penumbra, Inc. (the “Company”) is a global healthcare company focused on innovative therapies. The Company designs, develops, manufactures and markets novel products and has a broad portfolio that addresses challenging medical conditions in markets with significant unmet need. The Company focuses on developing, manufacturing and marketing novel products for use by specialist physicians and other healthcare providers to drive improved clinical and health outcomes. The Company believes that the cost-effectiveness of our products is attractive to our customers.
2. Summary of Significant Accounting Policies
Basis of Presentation and Consolidation
The accompanying condensed consolidated balance sheet as of March 31, 2024, the condensed consolidated statements of operations, the condensed consolidated statements of comprehensive income (loss), and the condensed consolidated statements of stockholders’ equity for the three months ended March 31, 2024 and 2023, and the condensed consolidated statements of cash flows for the three months ended March 31, 2024 and 2023 are unaudited. The unaudited condensed consolidated financial statements included herein have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) for interim financial information. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. The condensed consolidated balance sheet data as of December 31, 2023 was derived from the audited financial statements as of that date.
The unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to state fairly the Company’s financial position as of March 31, 2024, the results of its operations for the three months ended March 31, 2024 and 2023, the changes in its comprehensive income (loss) and stockholders’ equity for the three months ended March 31, 2024 and 2023, and its cash flows for the three months ended March 31, 2024 and 2023. The results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024 or for any other future annual or interim period. Certain changes in presentation were made to interest income (expense), net and other income (expense), net in the condensed consolidated statements of operations for the three months ended March 31, 2023 to conform to the presentation for the three months ended March 31, 2024.
The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and notes thereto for the fiscal year ended December 31, 2023, included in the Company’s Annual Report on Form 10-K as filed with the SEC on February 22, 2024. There have been no changes to the Company’s significant accounting policies during the three months ended March 31, 2024, as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and equity accounts; disclosure of contingent assets and liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to marketable investments, allowances for credit losses, the amount of variable consideration included in the transaction price, warranty reserve, valuation of inventories, useful lives of property and equipment, intangibles, operating and financing lease right-of-use (“ROU”) assets and liabilities, income taxes, and other contingencies, including the probability of achieving performance targets associated with equity awards with performance conditions, among others. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other data. Actual results could differ from those estimates.
Segments
7
Penumbra, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
The Company determined its operating segment on the same basis that it uses to evaluate its performance internally. The Company has one business activity: the design, development, manufacturing and marketing of innovative medical products, and operates as one operating segment. The Company’s chief operating decision-maker, its Chief Executive Officer, reviews its consolidated operating results for the purpose of allocating resources and evaluating financial performance.
Recently Issued Accounting Standards
In December 2023, the FASB issued Accounting Standards Update (“ASU”) No. 2023-09, Income Taxes— Improvements to Income Tax Disclosures. The standard enhances annual income tax disclosures, by requiring additional disaggregated information about an entity’s effective tax rate reconciliation and income taxes paid. The ASU adds guidance that requires public business entities to disclose additional information in specified categories with respect to the reconciliation of the effective tax rate to the statutory rate (the rate reconciliation) for federal, state, and foreign income taxes. It also requires greater detail about individual reconciling items in the rate reconciliation to the extent the impact of those items exceeds a specified threshold (5%). In addition to new disclosures associated with the rate reconciliation, the ASU requires information pertaining to taxes paid (net of refunds received) to be disaggregated for federal, state, and foreign taxes and further disaggregated for specific jurisdictions to the extent the related amounts exceed the quantitative threshold. For public business entities, the amendments in ASU 2023-09 are effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements not yet issued or made available for issuance. The Company is assessing the impact the new guidance will have on the disclosures within its consolidated financial statements and does not elect to early adopt as of March 31, 2024.
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly reviewed by the CODM and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. The ASU also allows, in addition to the measure that is most consistent with U.S. GAAP, the disclosure of additional measures of segment profit or loss that are used by the CODM in assessing segment performance and deciding how to allocate resources. All disclosure requirements under ASU 2023-07 are also required for public entities with a single reportable segment. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, on a retrospective basis, with early adoption permitted. The Company is assessing the impact the new guidance will have on the disclosures within its consolidated financial statements and does not elect to early adopt as of March 31, 2024.
In March 2024, the SEC issued Release Nos. 33-11275; 34-99678 "The Enhancement and Standardization of Climate-Related Disclosures for Investors", which will require registrants to provide certain climate-related information in their registration statements and annual reports, including information about a registrant’s climate-related risks that have materially impacted, or are reasonably likely to have a material impact on, its business strategy, results of operations, or financial condition, as well as certain disclosures related to severe weather events and other natural conditions in a registrant’s audited financial statements. The disclosure requirements follow a phase-in timeline, with initial requirements beginning with the Company's annual report for the year ending December 31, 2025. On April 4, 2024, the SEC voluntarily stayed implementation of this new rule pending judicial review. The Company is currently analyzing the impact that the new climate-related rules will have on the disclosures within its consolidated financial statements and will continue to monitor the status of the rules while legal challenges are pending.
3. Investments and Fair Value of Financial Instruments
Marketable and Non-Marketable Investments
The Company’s marketable and non-marketable investments have been classified and accounted for as available-for-sale. The Company’s marketable and non-marketable investments as of March 31, 2024 and December 31, 2023 were as follows (in thousands):
8
Penumbra, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
March 31, 2024
Securities with net gains or losses in accumulated other comprehensive income (loss)
Amortized CostGross Unrealized GainsGross Unrealized LossesAllowance
 for
 Credit Loss		Fair Value
Marketable investments:
Commercial paper $31,449 $7 $(11)$— $31,445 
Certificate of Deposit4,632 4 — — 4,636 
U.S. treasury13,210 — (142)$— 13,068 
U.S. states and municipalities900 — (9)— 891 
Corporate bonds40,542 19 (241)— 40,320 
Total90,733 30 (403)— 90,360 
Non-marketable investments:
Non-marketable debt securities10,000 — — — 10,000 
Total10,000 — — — 10,000 
Total $100,733 $30 $(403)$— $100,360 
December 31, 2023
Securities with net gains or losses in accumulated other comprehensive income (loss)
Amortized CostGross Unrealized GainsGross Unrealized LossesAllowance
 for
 Credit Loss		Fair Value
Marketable investments:
Commercial paper $39,727 $32 $(3)$— $39,756 
Certificate of Deposit6,392 9 — — 6,401 
U.S. treasury10,226 — (160)— 10,066 
U.S. states and municipalities2,950 — (35)— 2,915 
Corporate bonds62,964 29 (430)— 62,563 
Total$122,259 $70 $(628)$— $121,701 
As of March 31, 2024, the total amortized cost basis of the Company’s available-for-sale debt securities, excluding non-marketable debt securities, is an unrealized loss position of $0.4 million, which was primarily attributable to rising interest rates since purchase. The Company reviewed its available-for-sale securities in an unrealized loss position and concluded that the decline in fair value was not related to credit losses and is recoverable. During the three months ended March 31, 2024, no allowance for credit losses was recorded and instead the unrealized losses are reported as a component of accumulated other comprehensive loss.
9
Penumbra, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
The following tables present the gross unrealized losses and the fair value for those marketable investments that were in an unrealized loss position for less than and more twelve months as of March 31, 2024 and December 31, 2023 (in thousands):
March 31, 2024
Less than 12 monthsMore than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Marketable investments:
Commercial paper$20,041 $(11)$— $— $20,041 $(11)
U.S. treasury5,666 (80)4,436 (62)10,102 (142)
U.S. states and municipalities— — 891 (9)891 (9)
Corporate bonds2,998 (3)13,421 (238)16,419 (241)
Total$28,705 $(94)$18,748 $(309)$47,453 $(403)
December 31, 2023
Less than 12 monthsMore than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Marketable investments:
Commercial paper$16,241 $(3)$— $— $16,241 $(3)
U.S. treasury5,677 (54)4,389 (106)10,066 (160)
U.S. states and municipalities— — 2,915 (35)2,915 (35)
Corporate bonds15,945 (2)30,912 (428)46,857 (430)
Total$37,863 $(59)$38,216 $(569)$76,079 $(628)
The contractual maturities of the Company’s marketable investments as of March 31, 2024 (in thousands):
March 31, 2024
Marketable investments:Amortized CostFair Value
Due in one year$87,922 $87,601 
Due in one to five years2,811 2,759 
Total$90,733 $90,360 
Non-Marketable Investments
During the three months ended March 31, 2024, the Company completed a strategic investment in a privately held company. Under the terms of the investment, the Company paid $10.0 million in exchange for shares of Series B preferred stock which represented an immaterial investment in the investment in outstanding equity securities of the privately held company. The Company determined that the investment did not meet the criteria to be accounted for as an equity method investment under ASC 323. The investment was accounted for as an available-for-sale debt security in accordance with ASC 320 as the preferred stock contains a contingent redemption feature at the Company’s option. The investment is included in other non-current assets on the condensed consolidated balance sheet and changes in fair value are recorded in total other comprehensive (loss) income, net of tax. There were no unrealized gains or losses recorded in connection with the Company’s non-marketable debt securities during the three months ended March 31, 2024.
Fair Value of Financial Instruments
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:
Level 1 - Quoted prices in active markets for identical assets or liabilities.
10
Penumbra, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
The categorization of a financial instrument within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement.
The Company classifies its cash equivalents and marketable investments within Level 1 and Level 2, as it uses quoted market prices or alternative pricing sources and models utilizing market observable inputs. The Company classifies its non-marketable investments in preferred stock in privately held companies within Level 3, as they do not have a readily determinable fair value.
The Company determined the fair value of its Level 1 financial instruments, which are traded in active markets, using quoted market prices for identical instruments.
Marketable investments classified within Level 2 of the fair value hierarchy are valued based on other observable inputs, including broker or dealer quotations or alternative pricing sources. When quoted prices in active markets for identical assets or liabilities are not available, the Company relies on non-binding quotes from its investment managers, which are based on proprietary valuation models of independent pricing services. These models generally use inputs such as observable market data, quoted market prices for similar instruments, historical pricing trends of a security as relative to its peers. To validate the fair value determination provided by its investment managers, the Company reviews the pricing movement in the context of overall market trends and trading information from its investment managers. In addition, the Company assesses the inputs and methods used in determining the fair value in order to determine the classification of securities in the fair value hierarchy.
Non-marketable investments classified within Level 3 of the fair value hierarchy are valued based on unobservable inputs that are supported by little or no market activity. Current financial information of private companies may not be available and consequently the Company estimates the fair value using inputs that are based on the best available information at the measurement date, which may include the most recent financial information, financial projections, and financing transactions available for the investee and other quantitative and qualitative factors. Additionally, based on the timing, volume, and other characteristics of the available information, the Company may supplement this information by using one or more valuation techniques, including market and income approaches. The Company did not hold any non-marketable investments classified as Level 3 as of December 31, 2023.
The Company did not hold any Level 3 marketable investments as of March 31, 2024 or December 31, 2023. During the three months ended March 31, 2024 and 2023, the Company did not have any transfers between Level 1, Level 2 or Level 3 of the fair value hierarchy. Additionally, the Company did not have any financial assets and liabilities measured at fair value on a non-recurring basis as of March 31, 2024 or December 31, 2023.
11
Penumbra, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
The following tables set forth the Company’s financial assets and liabilities measured at fair value by level within the fair value hierarchy as of March 31, 2024 and December 31, 2023 (in thousands):
 As of March 31, 2024
 Level 1Level 2Level 3Fair Value
Financial Assets
Cash equivalents:
Commercial paper$— $30,555 $— $30,555 
Certificate of deposit— 4,901 — 4,901 
Money market funds57,278 — — 57,278 
U.S. treasury53,672 — — 53,672 
Marketable investments:
Commercial paper— 31,445 — 31,445 
Certificate of deposit— 4,636 — 4,636 
U.S. treasury13,068 — — 13,068 
U.S. states and municipalities— 891 — 891 
Corporate bonds— 40,320 — 40,320 
Non-marketable investments:
Non-marketable investments— — 10,000 10,000 
Total$124,018 $112,748 $10,000 $246,766 
 As of December 31, 2023
 Level 1Level 2Level 3Fair Value
Financial Assets
Cash equivalents:
Money market funds$86,991 $— $— $86,991 
Marketable investments:
Commercial paper— 39,756 — 39,756 
Certificate of Deposit— 6,401 — 6,401 
U.S. treasury10,066 — — 10,066 
U.S. states and municipalities— 2,915 — 2,915 
Corporate bonds— 62,563 — 62,563 
Total$97,057 $111,635 $— $208,692 

4. Balance Sheet Components
Inventories
The components of inventories consisted of the following (in thousands):
 March 31, 2024December 31, 2023
Raw materials$121,134 $119,511 
Work in process36,815 34,489 
Finished goods240,417 234,023 
Inventories$398,366 $388,023 
12
Penumbra, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
Accrued Liabilities
The components of accrued liabilities consisted of the following (in thousands):
 March 31, 2024December 31, 2023
Payroll and employee-related expenses$59,481 $65,395 
Accrued expenses14,327 11,711 
Deferred revenue8,672 6,985 
Other accrued liabilities24,069 26,464 
Total accrued liabilities$106,549 $110,555 
The following table shows the changes in the Company’s estimated product warranty accrual, included in accrued liabilities, for the three months ended March 31, 2024 and twelve months ended December 31, 2023, respectively (in thousands):
 March 31, 2024December 31, 2023
Balance at the beginning of the period$5,755 $5,370 
Accruals of warranties issued, net(3,141)1,865 
Settlements of warranty claims(536)(1,480)
Balance at the end of the period$2,078 $5,755 
5. Intangible Assets
The following table presents details of the Company’s acquired intangible assets as of March 31, 2024 and December 31, 2023 (in thousands, except weighted-average amortization period):
As of March 31, 2024Weighted-Average Amortization PeriodGross Carrying AmountAccumulated AmortizationNet
Finite-lived intangible assets:
Developed technology8.8 years$83,289 $(22,020)$61,269 
Customer relationships15.0 years6,434 (2,895)3,539 
Trade secrets and processes20.0 years5,256 (1,643)3,613 
Total intangible assets 9.6 years$94,979 $(26,558)$68,421 
As of December 31, 2023Weighted-Average
Amortization Period		Gross Carrying AmountAccumulated AmortizationNet
Finite-lived intangible assets:
Developed technology8.8 years$83,289 $(19,640)$63,649 
Customer relationships15.0 years6,579 (2,851)3,728 
Trade secrets and processes20.0 years5,256 (1,577)3,679 
Total intangible assets9.6 years$95,124 $(24,068)$71,056 
The gross carrying amount and accumulated amortization of the customer relationships are the only intangible assets subject to foreign currency translation effects. The Company’s $5.3 million trade secrets and processes intangible asset was recognized in connection with a royalty buyout agreement in 2018.
The following table presents the amortization recorded related to the Company’s finite-lived intangible assets for the three months ended March 31, 2024 and 2023 (in thousands):
13
Penumbra, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
 Three Months Ended March 31,
 20242023
Cost of revenue$66 $66 
Sales, general and administrative2,487 2,486 
Total$2,553 $2,552 
6. Goodwill
The following table presents the changes in goodwill during the three months ended March 31, 2024 (in thousands):
Total Company
Balance as of December 31, 2023$166,270 
Foreign currency translation (167)
Balance as of March 31, 2024$166,103 
Goodwill Impairment Review
The Company reviews goodwill for impairment annually on October 31, or more frequently if events or circumstances indicate that an impairment loss may have occurred. The Company determined there were no impairment indicators as of March 31, 2024.
7. Indebtedness
Credit Agreement
On April 24, 2020, the Company entered into a Credit Agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent and lender, and Bank of America, N.A. and Citibank, N.A. as lenders. The Credit Agreement was secured and provided for up to $100 million in available revolving borrowing capacity with an option, subject to certain conditions, for the Company to increase the aggregate borrowing capacity to up to $150 million, and originally matured on April 23, 2021. During the three months ended March 31, 2021, 2022 and 2023, the Credit Agreement was amended to extend the maturity date and make other changes to the terms of the Credit Agreement. The Credit Agreement matured on February 16, 2024 and was not renewed.
8. Commitments and Contingencies
Royalty Obligations
In March 2005, the Company entered into a license agreement that requires the Company to make minimum royalty payments to the licensor on a quarterly basis. As of December 31, 2018, the license agreement required minimum annual royalty payments of $0.1 million in equal quarterly installments. In July 2019, the Company amended the license agreement to extend its term for an additional ten years and to increase the required minimum annual royalty payments by $0.2 million for a required minimum annual royalty payment of $0.3 million. Unless terminated earlier, the term of the amended license agreement shall expire June 30, 2029.
Royalty expense included in cost of sales for the three months ended March 31, 2024 and 2023 was $0.6 million and $0.7 million, respectively.
Contingencies
From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of business. The Company accrues a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated.
Indemnification
The Company enters into standard indemnification arrangements in the ordinary course of business. In many such arrangements, the Company agrees to indemnify, hold harmless, and reimburse the indemnified parties for losses suffered or
14
Penumbra, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
incurred by the indemnified parties in connection with any trade secret, copyright, patent or other intellectual property infringement claim by any third-party with respect to the Company’s technology. The Company also agrees to indemnify many indemnified parties for product defect and similar claims. The term of these indemnification agreements is generally perpetual. The maximum potential amount of future payments the Company could be required to make under these agreements is not determinable because it involves claims that may be made against the Company in the future, but have not yet been made.
The Company has entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of the individual.
The Company has not incurred costs to defend lawsuits or settle claims related to these indemnification agreements. No liability associated with any of these indemnification requirements has been recorded to date.
Litigation
From time to time, the Company is subject to certain legal proceedings, as well as demands, claims and threatened litigation that arise in the normal course of our business. The Company reviews the status of each significant matter quarterly and assesses its potential financial exposure. If the potential loss from a claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company records a liability and an expense for the estimated loss and discloses it in the Company’s financial statements if it is significant. If the Company determines that a loss is possible and the range of the loss can be reasonably determined, the Company does not record a liability or an expense but the Company discloses the range of the possible loss. The Company bases its judgments on the best information available at the time. As additional information becomes available, the Company reassesses the potential liability related to its pending claims and litigation and may revise its estimates.
On April 7, 2023, a former contractor who had been retained by the Company through a third party staffing agency filed a putative class action lawsuit as well as a Private Attorney General Act (“PAGA”) representative action complaint against the Company in the Superior Court of the State of California for the County of Alameda, on behalf of the contractor and similarly situated Company contractors and employees in California, alleging various claims pursuant to the California Labor Code related to wages, overtime, meal and rest breaks, reimbursement of business expenses, wage statements and records, and other similar allegations. Additionally, on April 10, 2023, a current employee of the Company filed a PAGA representative action complaint against the Company in the Superior Court of the State of California for the County of Alameda, on behalf of the employee and similarly situated Company employees in California, alleging similar claims. The complaints seek payment of various alleged unpaid wages, penalties, interest and attorneys’ fees in unspecified amounts. On April 22, 2024, the Company engaged in mediation, following which the parties agreed to settle the claims for an aggregate amount of $4.6 million, subject to negotiation of a mutually agreeable settlement agreement and approval by the court. As a result, the Company recorded an accrual of $4.6 million in its financial statements for the three months ended March 31, 2024 related to these matters.
9. Stockholders’ Equity
Stock-based Compensation
Stock-based compensation expense is associated with restricted stock units (“RSUs”), RSUs with performance conditions (“PSUs”), stock options, and the Company’s Employee Stock Purchase Plan (“ESPP”).
Certain PSUs granted to senior management during the three months ended March 31, 2024, will vest subject to the achievement of pre-established financial performance targets for the year ending December 31, 2024, and continued service. The fair value of these PSUs is based on the closing price of the Company's common stock on the date of grant. Stock-based compensation costs associated with these PSUs are recognized over the requisite service period of 4.25 years using graded vesting which results in more accelerated expense recognition compared to traditional time-based vesting over the same vesting period. Each reporting period, the Company monitors the probability of achieving the performance targets and may adjust periodic stock-based compensation expense based on its determination of the likelihood of achieving these performance targets and the estimated number of shares of common stock that will vest. The actual number of PSUs awarded is based on the actual performance during the performance period compared to the performance targets.
The following table sets forth the stock-based compensation expense included in the Company’s condensed consolidated statements of operations for the three months ended March 31, 2024 and 2023 (in thousands):
15
Penumbra, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
 Three Months Ended March 31,
 20242023
Cost of revenue$1,194 $1,191 
Research and development2,168 2,278 
Sales, general and administrative10,207 9,297 
Total$13,569 $12,766 
As of March 31, 2024, total unrecognized compensation cost related to unvested share-based compensation arrangements, excluding PSUs, was $56.4 million, which is expected to be recognized over a weighted average period of 2.6 years.
As of March 31, 2024, total unrecognized compensation cost related to unvested PSU share-based compensation arrangements was $27.3 million, which is expected to be recognized over a weighted average period of 3.5 years.
The total stock-based compensation cost capitalized in inventory was $1.2 million and $1.3 million as of March 31, 2024 and December 31, 2023, respectively.
10. Accumulated Other Comprehensive Income
Other comprehensive (loss) income consists of two components: unrealized gains or losses on the Company’s available-for-sale marketable investments and gains or losses from foreign currency translation adjustments. Until realized and reported as a component of consolidated net income, these comprehensive income items accumulate and are included within accumulated other comprehensive income. Unrealized gains and losses on our marketable investments are reclassified from accumulated other comprehensive income into earnings when realized upon sale, and are determined based on specific identification of securities sold. Gains and losses from the translation of assets and liabilities denominated in non-U.S. dollar functional currencies are included in accumulated other comprehensive income.
The following table summarizes the changes in the accumulated balances during the period, and includes information regarding the manner in which the reclassifications out of accumulated other comprehensive income into earnings affect our condensed consolidated statements of comprehensive income (loss) (in thousands):    
Three Months Ended March 31, 2024Three Months Ended March 31, 2023
 Marketable
Investments		 Currency Translation
Adjustments		 Total Marketable
Investments		 Currency Translation
Adjustments		 Total
Balance, beginning of the period$(558)$(2,593)$(3,151)$(3,500)$(4,624)$(8,124)
Other comprehensive loss before reclassifications:
Unrealized gains — marketable investments(1)
166 — 166 860 — 860 
Foreign currency translation (losses) gains— (1,857)(1,857)— 403 403 
Income tax effect — expense— 4 4 — — — 
Net of tax166 (1,853)(1,687)860 403 1,263 
Net current-year other comprehensive income (loss)166 (1,853)(1,687)860 403 1,263 
Balance, end of the period$(392)$(4,446)$(4,838)$(2,640)$(4,221)$(6,861)
(1) There were no unrealized gains or losses recorded in connection with the Company’s non-marketable debt securities as of March 31, 2024.
11. Income Taxes
The Company’s income tax expense (benefit), deferred tax assets and liabilities, and reserves for unrecognized tax benefits reflect management’s best assessment of estimated current and future taxes to be paid. The Company is subject to income taxes in both the United States and foreign jurisdictions. Significant judgment and estimates are required in determining the consolidated income tax expense (benefit).
During interim periods, the Company generally utilizes the estimated annual effective tax rate (“AETR”) method which involves the use of forecasted information. Under the AETR method, the provision is calculated by applying the estimated
16
Penumbra, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
AETR for the full fiscal year to “ordinary” income or loss (pretax income or loss excluding unusual or infrequently occurring discrete items) for the reporting period. Jurisdictions with tax assets for which the Company believes a tax benefit cannot be realized are excluded from the computation of its AETR.
The Company’s 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. The 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 its U.S. jurisdiction.
Significant domestic deferred tax assets (“DTAs”) were generated in recent years, primarily due to excess tax benefits from stock option exercises and vesting of restricted stock units. The Company evaluates all available positive and negative evidence, objective and subjective in nature, in each reporting period to determine if sufficient taxable income will be generated to realize the benefits of its DTAs and, if not, a valuation allowance to reduce the DTAs is recorded.
As of March 31, 2024, the Company maintains a valuation allowance primarily against its California R&D tax credit DTAs for which the Company does not believe a tax benefit is more likely than not to be realized due to the computation of California taxes under the single sales factor and non-conformity of the Section 174 capitalization rule.
The Company maintains that all foreign earnings, with the exception of a portion of the earnings of its German subsidiary, are permanently reinvested outside the United States and therefore deferred taxes attributable to such earnings are not provided for in the Company’s condensed consolidated financial statements as of March 31, 2024.
12. Net Income per Share
The Company computed basic net income per share based on the weighted average number of shares of common stock outstanding during the period. The Company computed diluted net income per share based on the weighted average number of shares of common stock outstanding plus potentially dilutive common stock equivalents outstanding during the period. For the purposes of this calculation, stock options, restricted stock units, performance stock units, and stock sold through the ESPP are considered common stock equivalents.
A reconciliation of the numerator and denominator used in the calculation of the basic and diluted net income per share is as follows (in thousands, except share and per share amounts):
 Three Months Ended March 31,
 20242023
Numerator:
Net income$11,002 $8,562 
Denominator:
Weighted average shares used to compute net income attributable to common stockholders:
Basic38,717,334 38,186,342 
Potential dilutive stock-based options and awards670,025 889,046 
Diluted39,387,359 39,075,388 
Net income per share:
Basic$0.28 $0.22 
Diluted$0.28 $0.22 
For the three months ended March 31, 2024 and 2023, outstanding stock-based awards of 26 thousand and 26 thousand shares, respectively, were excluded from the computation of diluted net income per share because their effect would have been anti-dilutive in the periods presented.
13. Interest and other income (expense), net
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Penumbra, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
The following table shows the components of interest and other income (expense), net for the three months ended March 31, 2024 and 2023 and (in thousands):
 Three Months Ended March 31,
 20242023
Interest income$3,293 $970 
Interest expense(402)(416)
Other income (expense), net(1)
(366)90 
Interest and other income, net$2,525 $644 
(1) Consists primarily of the effects of foreign currency gains or losses.
14. Revenues
Revenue Recognition
Revenue is recognized in an amount that reflects the consideration the Company expects to be entitled to in exchange for goods or services. All revenue recognized in the condensed consolidated statements of operations is considered to be revenue from contracts with customers.
Certain changes in presentation were made to the Company’s revenues disaggregated by product categories for the period ended March 31, 2023 to conform to the presentation for the period ended March 31, 2024. During the year ended December 31, 2023, the Company made changes to its product categories to provide investors with more meaningful information to understand the performance of its business and strategic direction.
The Company’s revenues disaggregated by geography, based on the destination to which the Company ships its products, for the three months ended March 31, 2024 and 2023 was as follows (in thousands):
 Three Months Ended March 31,
 20242023
United States$209,644 $171,879 
International69,011 69,519 
Total$278,655 $241,398 
The Company’s revenues disaggregated by product category for the three months ended March 31, 2024 and 2023 was as follows (in thousands):
 Three Months Ended March 31,
 20242023
Thrombectomy$187,703 $144,980 
Embolization and Access90,952 96,418 
Total$278,655 $241,398 
Performance Obligations
Delivery of products - The Company’s contracts with customers, other than the China licensing arrangements described below, typically contain a single performance obligation, delivery of the Company’s products. Satisfaction of that performance obligation occurs when control of the promised goods transfers to the customer, which is generally upon shipment or receipt by customer for non-consignment sale agreements and upon utilization for consignment sale agreements.
Payment terms - The Company’s payment terms vary by the type and location of our customer. The timing between fulfillment of performance obligations and when payment is due is not significant and does not give rise to financing transactions. The Company did not have any contracts with significant financing components as of March 31, 2024 and 2023.
Product returns - The Company may allow customers to return products purchased at the Company’s discretion. The Company estimates the amount of its product sales that may be returned by its customers and records this estimate as a
18
Penumbra, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
reduction of revenue in the period in which the related product revenue is recognized. The Company currently estimates product return liabilities using its own historic sales information, trends, industry data, and other relevant data points.
Warranties - The Company offers its standard warranty to all customers and it is not available for sale on a standalone basis. The Company’s standard warranty represents its guarantee that its products function as intended, are free from defects, and comply with agreed-upon specifications and quality standards. This assurance does not constitute a service and is not a separate performance obligation.
Transaction Price
Revenue is recorded at the net sales price, which includes estimates of variable consideration such as product returns utilizing historical return rates, rebates, discounts, and other adjustments to net revenue. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price. When determining if variable consideration should be constrained, management considers whether there are factors that could result in a significant reversal of revenue and the likelihood of a potential reversal. Variable consideration is included in revenue only to the extent that it is probable that a significant reversal of the revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. These estimates are reassessed each reporting period as required. During the three months ended March 31, 2024 and 2023, the Company made no material changes in estimates for variable consideration. When the Company performs shipping and handling activities after control of goods is transferred to the customer, they are considered as fulfillment activities, and costs are accrued for when the related revenue is recognized. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenues.
Contract assets and liabilities
The following information summarizes the Company’s contract assets and liabilities (in thousands):
March 31, 2024December 31, 2023
Contract assets$18,000 $18,000 
Contract liabilities$7,261 $6,496 
Contract assets for the periods presented primarily represent the difference between the revenue that was recognized based on the relative standalone selling price of the related performance obligations satisfied and the contractual billing terms in the licensing arrangements.
Contract liabilities represents amounts that the Company has already invoiced and are ultimately expected to be recognized as revenue, but for which not all revenue recognition criteria have been met and is recognized as the associated performance obligations are satisfied.
China Distribution and Technology Licensing Agreement
In December 2020, the Company entered into a distribution and technology licensing arrangement with its existing distribution partner in China. In addition to modifying the Company’s standard distribution agreement with its partner in China, the Company agreed to license the technology for certain products to its partner in China to permit the manufacturing and commercialization of such products in China as well as provide certain regulatory support. During the three months ended March 31, 2022, the Company further amended the distribution agreement and entered into an additional license arrangement, pursuant to which the Company agreed to license the technology for additional products to its partner in China on substantially the same terms as the existing license arrangement. Apart from the standard distribution agreement, the Company will receive fixed payments upon transferring its distinct licensed technology and providing related regulatory support. During the three months ended September 30, 2023, the Company entered into an additional licensing arrangement, pursuant to which the Company agreed to license the technology for additional products to its partner in China and will receive fixed payments upon transferring its distinct licensed technology and providing related regulatory support and royalty payments on the down-stream sale of the licensed products. During the three months ended March 31, 2024, the Company entered into another licensing agreement, pursuant to which the Company agreed to license the technology for additional products to its partner in China and will receive fixed payments upon transferring its distinct licensed technology and providing related regulatory support.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the unaudited condensed consolidated financial statements and the related notes thereto included elsewhere in this Quarterly Report on Form 10-Q and the audited consolidated financial statements and notes thereto and management’s discussion and analysis of financial condition and results of operations for the year ended December 31, 2023, included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 22, 2024.
This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). In some cases, you can identify these statements by forward-looking words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “should,” “estimate,” or “continue,” and similar expressions or variations, but these words are not the exclusive means for identifying such statements. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results and the timing of certain events to differ materially from future results and timing expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified below, and those discussed in the section titled “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023. The forward-looking statements in this Quarterly Report on Form 10-Q represent our views as of the date of this Quarterly Report on Form 10-Q. Except as may be required by law, we assume no obligation to update these forward-looking statements or the reasons that results could differ from these forward-looking statements. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this Quarterly Report on Form 10-Q.
Overview
References herein to “we,” “us,” “our,” the “Company,” and “Penumbra,” refer to Penumbra, Inc. and its consolidated subsidiaries unless expressly indicated or the context requires otherwise.
Penumbra is a global healthcare company focused on innovative therapies. We design, develop, manufacture and market novel products and have a broad portfolio that addresses challenging medical conditions in markets with significant unmet need. Our team focuses on developing, manufacturing and marketing novel products for use by specialist physicians and healthcare providers to drive improved clinical and health outcomes. We believe that the cost-effectiveness of our products is attractive to our customers.
Since our founding in 2004, we have invested heavily in our product development and commercial expansion that has established the foundation of our global organization. We have successfully developed, obtained regulatory clearance or approval for, and introduced products into the thrombectomy market since 2007, access market since 2008, embolization market since 2011, neurosurgical market since 2014, and immersive healthcare market since 2020.
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.
To address the challenging and significant clinical needs of our key markets, we have developed products that fall into the following broad product families:
Our thrombectomy products fall into two broad product families:
•Peripheral thrombectomy - INDIGO System, including Lightning, Bolt and CAT RX, designed for continuous or modulated aspiration, computer-assisted vacuum thrombectomy, including aspiration catheters, microprocessor-controlled software algorithms that orchestrate the interaction of our pump and catheters, separators, aspiration pump and accessories, including delivery catheters used in peripheral thrombectomy procedures
•Neuro thrombectomy - Penumbra System, Penumbra RED, JET, ACE, and BMX, MAX catheters and the 3D Revascularization Device, Penumbra ENGINE and other components and accessories
Our embolization and access products fall into four broad product families:
•Peripheral embolization - RUBY Coil System, Ruby LP, LANTERN Delivery Microcatheter and the POD System (POD and POD Packing Coil)
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•Neuro embolization - Penumbra SMART COIL, Penumbra Coil 400, POD400 and PAC400
•Access - delivery catheters, consisting of Neuron, Neuron MAX Select, BENCHMARK, BMX, DDC, PX SLIM and SENDit
•Neurosurgical - Artemis Neuro Evacuation Device
Our immersive healthcare products fall into one broad product family:
•REAL Immersive System - portfolio of products that leverages immersive computer-based technologies to deliver engaging, immersive therapeutics to promote better health, motor function and cognition
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.
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.
Factors Affecting Our Performance
There are a number of factors that have impacted, and we believe will continue to impact, our results of operations and growth. These factors include: 
•The rate at which we grow our salesforce and the speed at which newly hired salespeople become fully effective can impact our revenue growth or our costs incurred in anticipation of such growth.
•Our industry is intensely competitive and, in particular, we compete with a number of large, well-capitalized companies. We must continue to successfully compete in light of our competitors’ existing and future products and their resources to successfully market to the specialist physicians who use our products.
•We must continue to successfully introduce new products that gain acceptance with specialist physicians and other healthcare providers and successfully transition from existing products to new products, ensuring adequate supply. In addition, as we introduce new products and expand our production capacity, we anticipate additional personnel will be hired and trained to build our inventory of components and finished goods in advance of sales, which may cause quarterly fluctuations in our operating results and financial condition.
•Publications of clinical results by us, our competitors and other third parties can have a significant influence on whether, and the degree to which, our products are used by specialist physicians and the procedures and treatments those physicians choose to administer for a given condition.
•The specialist physicians who use our interventional products may not perform procedures during certain times of the year, such as those periods when they are at major medical conferences or are away from their practices for other reasons, the timing of which occurs irregularly during the year and from year to year.
•Most of our sales outside of the United States are denominated in the local currency of the country in which we sell our products. As a result, our revenue from international sales can be significantly impacted by fluctuations in foreign currency exchange rates.
•The availability and levels of reimbursement within the relevant healthcare payment system for healthcare providers for procedures in which our products are used.
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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.
Components of Results of Operations
Revenue. We sell our interventional products directly to hospitals and other healthcare providers and through distributors for use in procedures performed by specialist physicians to treat patients in two key markets: thrombectomy and embolization and access. We sell our products through purchase orders, and we do not have long term purchase commitments from our customers. Revenue from product sales is recognized either on the date of shipment or the date of receipt by the customer, but is deferred for certain transactions when control has not yet transferred. With respect to products that we consign to hospitals, which primarily consist of coils, we recognize revenue at the time hospitals utilize products in a procedure. Revenue also includes shipping and handling costs that we charge to customers.
Cost of Revenue. Cost of revenue consists primarily of the cost of raw materials and components, personnel costs, including stock-based compensation, inbound freight charges, receiving costs, inspection and testing costs, warehousing costs, royalty expense, shipping and handling costs, and other labor and overhead costs incurred in the manufacturing of products. We manufacture substantially all of our products in our manufacturing facilities in Alameda and Roseville, California.
Operating Expenses
Research and Development (“R&D”). R&D expenses primarily consist of product development, clinical and regulatory expenses, materials, depreciation and other costs associated with the development of our products. R&D expenses also include salaries, benefits and other related costs, including stock-based compensation, for personnel and consultants. We expense R&D costs as they are incurred.
Sales, General and Administrative (“SG&A”). SG&A expenses primarily consist of salaries, benefits and other related costs, including stock-based compensation, for personnel and consultants engaged in sales, marketing, finance, legal, compliance, administrative, facilities and information technology and human resource activities. Our SG&A expenses also include marketing trials, medical education, training, commissions, generally based on sales, to direct sales representatives, amortization of acquired intangible assets and acquisition-related costs.
Income Taxes
We are taxed at the rates applicable within each jurisdiction in which we operate. The composite income tax rate, tax provisions, deferred tax assets (“DTAs”) and deferred tax liabilities will vary according to the jurisdiction in which profits arise. Tax laws are complex and subject to different interpretations by management and the respective governmental taxing authorities, and require us to exercise judgment in determining our income tax provision, our deferred tax assets and deferred tax liabilities and the potential valuation allowance recorded against our net DTAs. Deferred tax assets and liabilities are determined using the enacted tax rates in effect for the years in which those tax assets are expected to be realized. A valuation allowance is established when it is more likely than not that the future realization of all or some of the DTAs will not be achieved.
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Results of Operations
The following table sets forth the components of our condensed consolidated statements of operations in dollars and as a percentage of revenue for the periods presented:
 Three Months Ended March 31,
 20242023
 (in thousands, except for percentages)
Revenue$278,655 100.0 %$241,398 100.0 %
Cost of revenue97,516 35.0 90,326 37.4 
Gross profit181,139 65.0 151,072 62.6 
Operating expenses:
Research and development24,626 8.8 19,986 8.3 
Sales, general and administrative144,412 51.8 123,078 51.0 
Total operating expenses169,038 60.7 143,064 59.3 
Income from operations12,101 4.3 8,008 3.3 
Interest and other income, net2,525 0.9 644 0.3 
Income before income taxes14,626 5.2 8,652 3.6 
Provision for income taxes3,624 1.3 90 — 
Net income$11,002 3.9 %$8,562 3.5 %

Three Months Ended March 31, 2024 Compared to the Three Months Ended March 31, 2023
Certain changes in presentation were made to the Company’s revenues disaggregated by product categories for the period ended March 31, 2023 to conform to the presentation for the period ended March 31, 2024. During the year ended December 31, 2023, the Company made changes to its product categories to provide investors with more meaningful information to understand the performance of its business and strategic direction.
Revenue
 Three Months Ended March 31,Change
 20242023$%
 (in thousands, except for percentages)
Thrombectomy$187,703 $144,980 $42,723 29.5 %
Embolization and Access90,952 96,418 (5,466)(5.7)%
Total$278,655 $241,398 $37,257 15.4 %
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.
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.
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 $96.4 million in the three months ended March 31, 2023. The decrease in our global embolization and access products was primarily driven by our international embolization and access products, which decreased by 11.6% in the three months ended March 31, 2024. Prices for our embolization and access products remained substantially unchanged during the period.
Revenue by Geographic Area
The following table presents revenue by geographic area, based on our customers’ shipping destinations:
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Three Months Ended March 31,Change
20242023$%
 (in thousands, except for percentages)
United States$209,644 75.2 %$171,879 71.2 %$37,765 22.0 %
International69,011 24.8 %69,519 28.8 %(508)(0.7)%
Total$278,655 100.0 %$241,398 100.0 %$37,257 15.4 %
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 $69.5 million in the three months ended March 31, 2023. Revenue from international sales represented 24.8% and 28.8% of our total revenue for the three months ended March 31, 2024 and 2023, respectively.
Gross Margin
 Three Months Ended March 31,Change
 20242023$%
 (in thousands, except for percentages)
Cost of revenue$97,516 $90,326 $7,190 8.0 %
Gross profit$181,139 $151,072 $30,067 19.9 %
Gross margin %65.0 %62.6 %
Gross margin increased by 2.4 percentage points to 65.0% in the three months ended March 31, 2024, from 62.6% in the three months ended March 31, 2023. Gross margin is impacted by product mix, regional mix, and production initiatives to support demand and create future efficiencies. As such, with favorable product mix, improvement in productivity, and by leveraging our fixed costs on higher volume of new product sales during the year, our gross margin may be positively impacted in the future.
Research and Development (“R&D”)
 Three Months Ended March 31,Change
 20242023$%
 (in thousands, except for percentages)
R&D$24,626 $19,986 $4,640 23.2 %
R&D as a percentage of revenue8.8 %8.3 %
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 $1.3 million increase in product development and testing costs.
We have continued to make investments, and plan to continue to make investments, in the development of our products. As part of our ongoing investment in the development of our products, we may incur additional expenses related to research and development milestones. In addition, we have experienced in the past, and may continue to experience in the future, variability in expenses incurred due to the timing and costs of clinical trials and product development, which may include additional personnel-related expenses in conjunction with the launch of new products.
Sales, General and Administrative (“SG&A”)
 Three Months Ended March 31,Change
 20242023$%
 (in thousands, except for percentages)
SG&A$144,412 $123,078 $21,334 17.3 %
SG&A as a percentage of revenue51.8 %51.0 %
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 $2.1 million increase in other professional services.
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As we continue to invest in our growth, we have expanded and may continue to expand our sales, marketing, and general and administrative teams through the hiring of additional employees in critical roles that support our strategic initiatives. In addition, we have experienced in the past, and may continue to experience in the future, variability in expenses incurred due to the timing and costs of investments to support the business.
Provision for income taxes
 Three Months Ended March 31,Change
 20242023$%
 (in thousands, except for percentages)
Provision for income taxes$3,624 $90 $3,534 3,926.7 %
Effective tax rate24.8 %1.0 %
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.
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.

Liquidity and Capital Resources
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.
We believe our current sources of liquidity will be sufficient to meet our liquidity requirements for at least the next 12 months. Our principal liquidity requirements are to fund our operations, expand manufacturing operations which includes, but is not limited to, maintaining sufficient levels of inventory to meet the anticipated demand of our customers, fund research and development activities and fund our capital expenditures. We may also lease or purchase additional facilities to facilitate our growth. We expect to continue to make investments as we launch new products, expand our manufacturing operations and information technology infrastructures and further expand into international markets. We may, however, require or elect to secure additional financing as we continue to execute our business strategy. If we require or elect to raise additional funds, we may do so through equity or debt financing, which may not be available on favorable terms, could result in dilution to our stockholders, and could require us to agree to covenants that limit our operating flexibility.
The following table summarizes our cash and cash equivalents, marketable investments and selected working capital data as of March 31, 2024 and December 31, 2023:
 March 31, 2024December 31, 2023
 (in thousands)
Cash and cash equivalents$223,114 $167,486 
Marketable investments90,360 121,701 
Accounts receivable, net191,989 201,768 
Accounts payable32,454 27,155 
Accrued liabilities106,549 110,555 
Working capital(1)
782,220 764,258 
(1) Working capital consists of total current assets less total current liabilities.
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The following table sets forth, for the periods indicated, our beginning balance of cash and cash equivalents, net cash flows provided by (used in) operating, investing and financing activities and our ending balance of cash and cash equivalents:
 Three Months Ended March 31,
 20242023
 (in thousands)
Cash and cash equivalents at beginning of period$167,486 $69,858 
Net cash provided by operating activities38,295 13,129 
Net cash provided by investing activities18,384 10,711 
Net cash (used in) provided by financing activities(794)1,376 
Cash and cash equivalents and at end of period223,114 94,688 
Net Cash Provided By Operating Activities
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).
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.
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.
Net Cash Provided By Investing Activities
Net cash provided by investing activities relates primarily to purchases of marketable and non-marketable investments and capital expenditures, partially offset by proceeds from maturities of marketable investments.
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.
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.
Net Cash (Used In) Provided By Financing Activities
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.
26
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.
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.
Contractual Obligations and Commitments
There have been no other material changes to our contractual obligations and commitments as of March 31, 2024 from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2023.
Critical Accounting Policies and Estimates
We have prepared our financial statements in accordance with U.S. GAAP. Our preparation of these financial statements requires us to make estimates, assumptions, and judgments that affect the reported amounts of assets, liabilities, expenses, and related disclosures at the date of the financial statements, as well as revenue and expenses recorded during the reporting periods. We evaluate our estimates and judgments on an ongoing basis. We base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results could therefore differ materially from these estimates under different assumptions or conditions.
There have been no material changes to our critical accounting policies from those described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K for the year ended December 31, 2023.
Recently Issued Accounting Standards
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.
27
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
We are exposed to various market risks, which may result in potential losses arising from adverse changes in market rates, such as interest rates and foreign exchange rates. We do not enter into derivatives or other financial instruments for trading or speculative purposes and do not believe we are exposed to material market risk with respect to our cash and cash equivalents and/or our marketable investments.
Interest Rate Risk. We had cash and cash equivalents of $223.1 million as of March 31, 2024, which consisted of funds held in money market funds, general checking and savings accounts. In addition, we had marketable investments of $90.4 million, which consisted primarily of corporate bonds, commercial paper, U.S. treasury securities, certificates of deposit, and U.S. states and municipalities. Our investment policy is focused on the preservation of capital and supporting our liquidity needs. Under the policy, we invest in highly rated securities, while limiting the amount of credit exposure to any one issuer other than the U.S. government. We do not invest in financial instruments for trading or speculative purposes, nor do we use leveraged financial instruments. We utilize external investment managers who adhere to the guidelines of our investment policy. A hypothetical 100 basis point change in interest rates would not have a material impact on the value of our cash and cash equivalents or marketable investments.
Foreign Exchange Risk Management. We operate in countries other than the United States, and, therefore, we are exposed to foreign currency risks. We bill most sales outside of the United States in local currencies, primarily in euros, with some sales being denominated in other currencies. When sales or expenses are not denominated in U.S. dollars, a fluctuation in exchange rates could affect our net income. We do not believe our net income would be materially impacted by an immediate 10% adverse change in foreign exchange rates. We do not currently hedge our exposure to foreign currency exchange rate fluctuations; however, we may choose to hedge our exposure in the future.
While our gross margin for the three months ended March 31, 2024 was primarily impacted by product mix, regional mix, and production initiatives to support demand and create future efficiencies, changes in prices did not have a significant impact on our results of operations for any periods presented on our consolidated financial statements.

28
ITEM 4. CONTROLS AND PROCEDURES.
Evaluation of Disclosure Controls and Procedures
An evaluation as of March 31, 2024 was carried out under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of our “disclosure controls and procedures,” which are defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as controls and other procedures of a company that are designed to ensure that the information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the company’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. Based upon that evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were effective as of March 31, 2024.
Changes in Internal Control Over Financial Reporting
There was no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarterly period ended March 31, 2024 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
Limitations on the Effectiveness of Controls
A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues, if any, within a company have been detected. Accordingly, our disclosure controls and procedures are designed to provide reasonable, not absolute, assurance that the objectives of our disclosure control system are met.
29
PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.
For information with respect to Legal Proceedings, see Note “8. Commitments and Contingencies” to our condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q.

ITEM 1A. RISK FACTORS.
There have been no material changes to our risk factors reported in, or new risk factors identified since the filing of, our Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on February 22, 2024.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
None.

ITEM 4. MINE SAFETY DISCLOSURE.
None.

ITEM 5. OTHER INFORMATION.
Rule 10b5-1 Trading Plans
During the quarterly period ended March 31, 2024, no director or officer adopted or terminated any “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement”, as each term is defined in Item 408(a) of Regulation S-K.
30
ITEM 6. EXHIBITS.
Exhibit NumberDescriptionFormFile No.Exhibit(s)Filing Date
Certification of Principal Executive Officer Required Under Rule 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended.
Certification of Principal Financial Officer Required Under Rule 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended.
Certification of Principal Executive Officer and Principal Financial Officer Required Under Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended, and 18 U.S.C. §1350.
101The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 formatted in Inline Extensible Business Reporting Language (iXBRL) includes: (i) Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023, (ii) Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023, (ii) Condensed Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2024 and 2023, (iii) Condensed Consolidated Statements of Stockholders’ Equity for the three months ended March 31, 2024 and 2023, (iv) Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023, and (v) Notes to Condensed Consolidated Financial Statements.
104Cover Page Interactive Data File (formatted as iXBRL with applicable taxonomy extension information contained in Exhibit 101).
* Furnished herewith.
31
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 PENUMBRA, INC.
Date: May 7, 2024 
 By: /s/ Maggie Yuen
 Maggie Yuen
 Chief Financial Officer
(Principal Financial Officer)

32

Exhibit 31.1
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
PURSUANT TO RULE 13a-14(a) AND 15d-14(a) OF THE SECURITIES EXCHANGE ACT, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Adam Elsesser, certify that:
1.I have reviewed this Quarterly Report on Form 10-Q of Penumbra, Inc.;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 

Date: May 7, 2024
 
/s/ Adam Elsesser
Adam Elsesser
Chairman, Chief Executive Officer and President



Exhibit 31.2
CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
PURSUANT TO RULE 13a-14(a) AND 15d-14(a) OF THE SECURITIES EXCHANGE ACT, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Maggie Yuen, certify that:
1.I have reviewed this Quarterly Report on Form 10-Q of Penumbra, Inc.;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 

Date: May 7, 2024
 
/s/ Maggie Yuen
Maggie Yuen
   Chief Financial Officer



Exhibit 32.1
PENUMBRA, INC.
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Penumbra, Inc. (the “Company”) on Form 10-Q for the fiscal quarter ended March 31, 2024, as filed with the Securities and Exchange Commission (the “Report”), Adam Elsesser, Chairman, Chief Executive Officer and President of the Company, and Maggie Yuen, Chief Financial Officer of the Company, respectively, do each hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
•The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
•The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods presented.
 

 Date: May 7, 2024
/s/ Adam Elsesser
Adam Elsesser
Chairman, Chief Executive Officer and President
/s/ Maggie Yuen
Maggie Yuen
   Chief Financial Officer


v3.24.1.u1
Cover - shares
 3 Months Ended
Mar. 31, 2024
Apr. 23, 2024
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2024  
Document Transition Report false  
Entity File Number 001-37557  
Entity Registrant Name Penumbra, Inc  
Entity Address, Address Description One Penumbra Place  
Entity Address, City or Town Alameda  
Entity Address, State or Province CA  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 05-0605598  
Entity Address, Postal Zip Code 94502  
City Area Code 510  
Local Phone Number 748-3200  
Title of 12(b) Security Common Stock, Par value $0.001 per share  
Trading Symbol PEN  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   38,764,917
Entity Central Index Key 0001321732  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q1  
Amendment Flag false  
v3.24.1.u1
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 223,114 $ 167,486
Marketable investments 90,360 121,701
Accounts receivable, net of allowance for credit losses of $3,020 and $3,169 at March 31, 2024 and December 31, 2023, respectively 191,989 201,768
Inventories 398,366 388,023
Prepaid expenses and other current assets 31,194 36,424
Total current assets 935,023 915,402
Property and equipment, net 75,744 72,691
Operating lease right-of-use assets 185,845 188,756
Finance lease right-of-use assets 30,234 31,092
Intangible assets, net 68,421 71,056
Goodwill 166,103 166,270
Deferred taxes 84,661 85,158
Other non-current assets 33,814 25,880
Total assets 1,579,845 1,556,305
Current liabilities:    
Accounts payable 32,454 27,155
Accrued liabilities 106,549 110,555
Current operating lease liabilities 11,520 11,203
Current finance lease liabilities 2,280 2,231
Total current liabilities 152,803 151,144
Non-current operating lease liabilities 194,537 197,229
Non-current finance lease liabilities 23,098 23,680
Other non-current liabilities 5,876 5,308
Total liabilities 376,314 377,361
Commitments and contingencies
Stockholders’ equity:    
Common stock 39 39
Additional paid-in capital 1,062,470 1,047,198
Accumulated other comprehensive loss (4,838) (3,151)
Retained earnings 145,860 134,858
Total Penumbra, Inc. stockholders’ equity 1,203,531 1,178,944
Total liabilities and stockholders’ equity $ 1,579,845 $ 1,556,305
v3.24.1.u1
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Allowance for credit losses $ 3,020 $ 3,169
v3.24.1.u1
Condensed Consolidated Statements of Operations - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Income Statement [Abstract]    
Revenue $ 278,655 $ 241,398
Cost of revenue 97,516 90,326
Gross profit 181,139 151,072
Operating expenses:    
Research and development 24,626 19,986
Sales, general and administrative 144,412 123,078
Total operating expenses 169,038 143,064
Income from operations 12,101 8,008
Interest and other income, net 2,525 644
Income before income taxes 14,626 8,652
Provision for income taxes 3,624 90
Net income $ 11,002 $ 8,562
Net income per share:    
Basic (in dollars per share) $ 0.28 $ 0.22
Diluted (in dollars per share) $ 0.28 $ 0.22
Weighted average shares outstanding:    
Basic (in shares) 38,717,334 38,186,342
Diluted (in shares) 39,387,359 39,075,388
v3.24.1.u1
Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Statement of Comprehensive Income [Abstract]    
Net income $ 11,002 $ 8,562
Other comprehensive (loss) income, net of tax:    
Foreign currency translation adjustments, net of tax (1,853) 403
Net change in unrealized gains or losses on available-for-sale securities, net of tax 166 860
Total other comprehensive (loss) income, net of tax (1,687) 1,263
Comprehensive income $ 9,315 $ 9,825
v3.24.1.u1
Consolidated Statements of Stockholders' Equity (Deficit) - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-in Capital
Accumulated Other Comprehensive Income (Loss)
Retained Earnings (Accumulated Deficit)
Beginning balance (in shares) at Dec. 31, 2022   38,107,977      
Beginning balance at Dec. 31, 2022 $ 998,858 $ 38 $ 963,040 $ (8,124) $ 43,904
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock (in shares)   134,936      
Issuance of common stock 2,209   2,209    
Shares held for tax withholdings (in shares)   (813)      
Shares held for tax withholdings (204)   (204)    
Stock-based compensation 13,781   13,781    
Other comprehensive income (loss) 1,263     1,263  
Net income (loss) 8,562       8,562
Ending balance (in shares) at Mar. 31, 2023   38,242,100      
Ending balance at Mar. 31, 2023 1,024,469 $ 38 978,826 (6,861) 52,466
Beginning balance (in shares) at Dec. 31, 2023   38,681,549      
Beginning balance at Dec. 31, 2023 1,178,944 $ 39 1,047,198 (3,151) 134,858
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock (in shares)   76,597      
Issuance of common stock 238   238    
Shares held for tax withholdings (in shares)   (1,732)      
Shares held for tax withholdings (421)   (421)    
Stock-based compensation 15,455   15,455    
Other comprehensive income (loss) (1,687)     (1,687)  
Net income (loss) 11,002       11,002
Ending balance (in shares) at Mar. 31, 2024   38,756,414      
Ending balance at Mar. 31, 2024 $ 1,203,531 $ 39 $ 1,062,470 $ (4,838) $ 145,860
v3.24.1.u1
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income $ 11,002 $ 8,562
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 7,519 6,575
Stock-based compensation 13,569 12,766
Inventory write-downs 358 1,009
Deferred taxes 475 (953)
Other (221) 140
Changes in operating assets and liabilities:    
Accounts receivable 8,460 (3,540)
Inventories (11,619) (10,641)
Prepaid expenses and other current and non-current assets 4,565 (3,994)
Accounts payable 5,209 2,074
Accrued expenses and other non-current liabilities (1,022) 1,131
Net cash provided by (used in) operating activities 38,295 13,129
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchases of non-marketable investments (10,000) 0
Purchases of marketable investments (11,267) 0
Proceeds from maturities of marketable investments 43,375 14,605
Purchases of property and equipment (5,824) (3,894)
Other 2,100 0
Net cash provided by (used in) investing activities 18,384 10,711
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from exercises of stock options 238 2,209
Payment of employee taxes related to vested stock (421) (204)
Payments of finance lease obligations (550) (474)
Other (61) (155)
Net cash (used in) provided by financing activities (794) 1,376
Effect of foreign exchange rate changes on cash and cash equivalents (257) (386)
NET INCREASE IN CASH AND CASH EQUIVALENTS 55,628 24,830
CASH AND CASH EQUIVALENTS—Beginning of period 167,486 69,858
CASH AND CASH EQUIVALENTS—End of period 223,114 94,688
NONCASH INVESTING AND FINANCING ACTIVITIES:    
Right-of-use assets obtained in exchange for lease obligations 292 341
Right-of-use assets obtained in exchange for finance lease obligations 17 68
Purchase of property and equipment funded through accounts payable and accrued liabilities 1,816 1,781
SUPPLEMENTAL CASH FLOW INFORMATION:    
Cash paid for amounts included in the measurement of operating lease liabilities 5,337 4,706
Cash paid for income taxes $ 1,125 $ 1,413
v3.24.1.u1
Organization and Description of Business
 3 Months Ended
Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Description of Business
1. Organization and Description of Business
Penumbra, Inc. (the “Company”) is a global healthcare company focused on innovative therapies. The Company designs, develops, manufactures and markets novel products and has a broad portfolio that addresses challenging medical conditions in markets with significant unmet need. The Company focuses on developing, manufacturing and marketing novel products for use by specialist physicians and other healthcare providers to drive improved clinical and health outcomes. The Company believes that the cost-effectiveness of our products is attractive to our customers.
v3.24.1.u1
Summary of Significant Accounting Policies
 3 Months Ended
Mar. 31, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
2. Summary of Significant Accounting Policies
Basis of Presentation and Consolidation
The accompanying condensed consolidated balance sheet as of March 31, 2024, the condensed consolidated statements of operations, the condensed consolidated statements of comprehensive income (loss), and the condensed consolidated statements of stockholders’ equity for the three months ended March 31, 2024 and 2023, and the condensed consolidated statements of cash flows for the three months ended March 31, 2024 and 2023 are unaudited. The unaudited condensed consolidated financial statements included herein have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) for interim financial information. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. The condensed consolidated balance sheet data as of December 31, 2023 was derived from the audited financial statements as of that date.
The unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to state fairly the Company’s financial position as of March 31, 2024, the results of its operations for the three months ended March 31, 2024 and 2023, the changes in its comprehensive income (loss) and stockholders’ equity for the three months ended March 31, 2024 and 2023, and its cash flows for the three months ended March 31, 2024 and 2023. The results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024 or for any other future annual or interim period. Certain changes in presentation were made to interest income (expense), net and other income (expense), net in the condensed consolidated statements of operations for the three months ended March 31, 2023 to conform to the presentation for the three months ended March 31, 2024.
The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and notes thereto for the fiscal year ended December 31, 2023, included in the Company’s Annual Report on Form 10-K as filed with the SEC on February 22, 2024. There have been no changes to the Company’s significant accounting policies during the three months ended March 31, 2024, as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and equity accounts; disclosure of contingent assets and liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to marketable investments, allowances for credit losses, the amount of variable consideration included in the transaction price, warranty reserve, valuation of inventories, useful lives of property and equipment, intangibles, operating and financing lease right-of-use (“ROU”) assets and liabilities, income taxes, and other contingencies, including the probability of achieving performance targets associated with equity awards with performance conditions, among others. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other data. Actual results could differ from those estimates.
Segments
The Company determined its operating segment on the same basis that it uses to evaluate its performance internally. The Company has one business activity: the design, development, manufacturing and marketing of innovative medical products, and operates as one operating segment. The Company’s chief operating decision-maker, its Chief Executive Officer, reviews its consolidated operating results for the purpose of allocating resources and evaluating financial performance.
Recently Issued Accounting Standards
In December 2023, the FASB issued Accounting Standards Update (“ASU”) No. 2023-09, Income Taxes— Improvements to Income Tax Disclosures. The standard enhances annual income tax disclosures, by requiring additional disaggregated information about an entity’s effective tax rate reconciliation and income taxes paid. The ASU adds guidance that requires public business entities to disclose additional information in specified categories with respect to the reconciliation of the effective tax rate to the statutory rate (the rate reconciliation) for federal, state, and foreign income taxes. It also requires greater detail about individual reconciling items in the rate reconciliation to the extent the impact of those items exceeds a specified threshold (5%). In addition to new disclosures associated with the rate reconciliation, the ASU requires information pertaining to taxes paid (net of refunds received) to be disaggregated for federal, state, and foreign taxes and further disaggregated for specific jurisdictions to the extent the related amounts exceed the quantitative threshold. For public business entities, the amendments in ASU 2023-09 are effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements not yet issued or made available for issuance. The Company is assessing the impact the new guidance will have on the disclosures within its consolidated financial statements and does not elect to early adopt as of March 31, 2024.
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly reviewed by the CODM and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. The ASU also allows, in addition to the measure that is most consistent with U.S. GAAP, the disclosure of additional measures of segment profit or loss that are used by the CODM in assessing segment performance and deciding how to allocate resources. All disclosure requirements under ASU 2023-07 are also required for public entities with a single reportable segment. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, on a retrospective basis, with early adoption permitted. The Company is assessing the impact the new guidance will have on the disclosures within its consolidated financial statements and does not elect to early adopt as of March 31, 2024.
v3.24.1.u1
Investments and Fair Value of Financial Instruments
 3 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
Investments and Fair Value of Financial Instruments
3. Investments and Fair Value of Financial Instruments
Marketable and Non-Marketable Investments
The Company’s marketable and non-marketable investments have been classified and accounted for as available-for-sale. The Company’s marketable and non-marketable investments as of March 31, 2024 and December 31, 2023 were as follows (in thousands):
March 31, 2024
Securities with net gains or losses in accumulated other comprehensive income (loss)
Amortized CostGross Unrealized GainsGross Unrealized LossesAllowance
 for
 Credit Loss		Fair Value
Marketable investments:
Commercial paper $31,449 $7 $(11)$— $31,445 
Certificate of Deposit4,632 4 — — 4,636 
U.S. treasury13,210 — (142)$— 13,068 
U.S. states and municipalities900 — (9)— 891 
Corporate bonds40,542 19 (241)— 40,320 
Total90,733 30 (403)— 90,360 
Non-marketable investments:
Non-marketable debt securities10,000 — — — 10,000 
Total10,000 — — — 10,000 
Total $100,733 $30 $(403)$— $100,360 
December 31, 2023
Securities with net gains or losses in accumulated other comprehensive income (loss)
Amortized CostGross Unrealized GainsGross Unrealized LossesAllowance
 for
 Credit Loss		Fair Value
Marketable investments:
Commercial paper $39,727 $32 $(3)$— $39,756 
Certificate of Deposit6,392 9 — — 6,401 
U.S. treasury10,226 — (160)— 10,066 
U.S. states and municipalities2,950 — (35)— 2,915 
Corporate bonds62,964 29 (430)— 62,563 
Total$122,259 $70 $(628)$— $121,701 
As of March 31, 2024, the total amortized cost basis of the Company’s available-for-sale debt securities, excluding non-marketable debt securities, is an unrealized loss position of $0.4 million, which was primarily attributable to rising interest rates since purchase. The Company reviewed its available-for-sale securities in an unrealized loss position and concluded that the decline in fair value was not related to credit losses and is recoverable. During the three months ended March 31, 2024, no allowance for credit losses was recorded and instead the unrealized losses are reported as a component of accumulated other comprehensive loss.
The following tables present the gross unrealized losses and the fair value for those marketable investments that were in an unrealized loss position for less than and more twelve months as of March 31, 2024 and December 31, 2023 (in thousands):
March 31, 2024
Less than 12 monthsMore than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Marketable investments:
Commercial paper$20,041 $(11)$— $— $20,041 $(11)
U.S. treasury5,666 (80)4,436 (62)10,102 (142)
U.S. states and municipalities— — 891 (9)891 (9)
Corporate bonds2,998 (3)13,421 (238)16,419 (241)
Total$28,705 $(94)$18,748 $(309)$47,453 $(403)
December 31, 2023
Less than 12 monthsMore than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Marketable investments:
Commercial paper$16,241 $(3)$— $— $16,241 $(3)
U.S. treasury5,677 (54)4,389 (106)10,066 (160)
U.S. states and municipalities— — 2,915 (35)2,915 (35)
Corporate bonds15,945 (2)30,912 (428)46,857 (430)
Total$37,863 $(59)$38,216 $(569)$76,079 $(628)
The contractual maturities of the Company’s marketable investments as of March 31, 2024 (in thousands):
March 31, 2024
Marketable investments:Amortized CostFair Value
Due in one year$87,922 $87,601 
Due in one to five years2,811 2,759 
Total$90,733 $90,360 
Non-Marketable Investments
During the three months ended March 31, 2024, the Company completed a strategic investment in a privately held company. Under the terms of the investment, the Company paid $10.0 million in exchange for shares of Series B preferred stock which represented an immaterial investment in the investment in outstanding equity securities of the privately held company. The Company determined that the investment did not meet the criteria to be accounted for as an equity method investment under ASC 323. The investment was accounted for as an available-for-sale debt security in accordance with ASC 320 as the preferred stock contains a contingent redemption feature at the Company’s option. The investment is included in other non-current assets on the condensed consolidated balance sheet and changes in fair value are recorded in total other comprehensive (loss) income, net of tax. There were no unrealized gains or losses recorded in connection with the Company’s non-marketable debt securities during the three months ended March 31, 2024.
Fair Value of Financial Instruments
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:
Level 1 - Quoted prices in active markets for identical assets or liabilities.
Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
The categorization of a financial instrument within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement.
The Company classifies its cash equivalents and marketable investments within Level 1 and Level 2, as it uses quoted market prices or alternative pricing sources and models utilizing market observable inputs. The Company classifies its non-marketable investments in preferred stock in privately held companies within Level 3, as they do not have a readily determinable fair value.
The Company determined the fair value of its Level 1 financial instruments, which are traded in active markets, using quoted market prices for identical instruments.
Marketable investments classified within Level 2 of the fair value hierarchy are valued based on other observable inputs, including broker or dealer quotations or alternative pricing sources. When quoted prices in active markets for identical assets or liabilities are not available, the Company relies on non-binding quotes from its investment managers, which are based on proprietary valuation models of independent pricing services. These models generally use inputs such as observable market data, quoted market prices for similar instruments, historical pricing trends of a security as relative to its peers. To validate the fair value determination provided by its investment managers, the Company reviews the pricing movement in the context of overall market trends and trading information from its investment managers. In addition, the Company assesses the inputs and methods used in determining the fair value in order to determine the classification of securities in the fair value hierarchy.
Non-marketable investments classified within Level 3 of the fair value hierarchy are valued based on unobservable inputs that are supported by little or no market activity. Current financial information of private companies may not be available and consequently the Company estimates the fair value using inputs that are based on the best available information at the measurement date, which may include the most recent financial information, financial projections, and financing transactions available for the investee and other quantitative and qualitative factors. Additionally, based on the timing, volume, and other characteristics of the available information, the Company may supplement this information by using one or more valuation techniques, including market and income approaches. The Company did not hold any non-marketable investments classified as Level 3 as of December 31, 2023.
The Company did not hold any Level 3 marketable investments as of March 31, 2024 or December 31, 2023. During the three months ended March 31, 2024 and 2023, the Company did not have any transfers between Level 1, Level 2 or Level 3 of the fair value hierarchy. Additionally, the Company did not have any financial assets and liabilities measured at fair value on a non-recurring basis as of March 31, 2024 or December 31, 2023.
The following tables set forth the Company’s financial assets and liabilities measured at fair value by level within the fair value hierarchy as of March 31, 2024 and December 31, 2023 (in thousands):
 As of March 31, 2024
 Level 1Level 2Level 3Fair Value
Financial Assets
Cash equivalents:
Commercial paper$— $30,555 $— $30,555 
Certificate of deposit— 4,901 — 4,901 
Money market funds57,278 — — 57,278 
U.S. treasury53,672 — — 53,672 
Marketable investments:
Commercial paper— 31,445 — 31,445 
Certificate of deposit— 4,636 — 4,636 
U.S. treasury13,068 — — 13,068 
U.S. states and municipalities— 891 — 891 
Corporate bonds— 40,320 — 40,320 
Non-marketable investments:
Non-marketable investments— — 10,000 10,000 
Total$124,018 $112,748 $10,000 $246,766 
 As of December 31, 2023
 Level 1Level 2Level 3Fair Value
Financial Assets
Cash equivalents:
Money market funds$86,991 $— $— $86,991 
Marketable investments:
Commercial paper— 39,756 — 39,756 
Certificate of Deposit— 6,401 — 6,401 
U.S. treasury10,066 — — 10,066 
U.S. states and municipalities— 2,915 — 2,915 
Corporate bonds— 62,563 — 62,563 
Total$97,057 $111,635 $— $208,692 
v3.24.1.u1
Balance Sheet Components
 3 Months Ended
Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Components
4. Balance Sheet Components
Inventories
The components of inventories consisted of the following (in thousands):
 March 31, 2024December 31, 2023
Raw materials$121,134 $119,511 
Work in process36,815 34,489 
Finished goods240,417 234,023 
Inventories$398,366 $388,023 
Accrued Liabilities
The components of accrued liabilities consisted of the following (in thousands):
 March 31, 2024December 31, 2023
Payroll and employee-related expenses$59,481 $65,395 
Accrued expenses14,327 11,711 
Deferred revenue8,672 6,985 
Other accrued liabilities24,069 26,464 
Total accrued liabilities$106,549 $110,555 
The following table shows the changes in the Company’s estimated product warranty accrual, included in accrued liabilities, for the three months ended March 31, 2024 and twelve months ended December 31, 2023, respectively (in thousands):
 March 31, 2024December 31, 2023
Balance at the beginning of the period$5,755 $5,370 
Accruals of warranties issued, net(3,141)1,865 
Settlements of warranty claims(536)(1,480)
Balance at the end of the period$2,078 $5,755 
v3.24.1.u1
Intangible Assets
 3 Months Ended
Mar. 31, 2024
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Intangible Assets
5. Intangible Assets
The following table presents details of the Company’s acquired intangible assets as of March 31, 2024 and December 31, 2023 (in thousands, except weighted-average amortization period):
As of March 31, 2024Weighted-Average Amortization PeriodGross Carrying AmountAccumulated AmortizationNet
Finite-lived intangible assets:
Developed technology8.8 years$83,289 $(22,020)$61,269 
Customer relationships15.0 years6,434 (2,895)3,539 
Trade secrets and processes20.0 years5,256 (1,643)3,613 
Total intangible assets 9.6 years$94,979 $(26,558)$68,421 
As of December 31, 2023Weighted-Average
Amortization Period		Gross Carrying AmountAccumulated AmortizationNet
Finite-lived intangible assets:
Developed technology8.8 years$83,289 $(19,640)$63,649 
Customer relationships15.0 years6,579 (2,851)3,728 
Trade secrets and processes20.0 years5,256 (1,577)3,679 
Total intangible assets9.6 years$95,124 $(24,068)$71,056 
The gross carrying amount and accumulated amortization of the customer relationships are the only intangible assets subject to foreign currency translation effects. The Company’s $5.3 million trade secrets and processes intangible asset was recognized in connection with a royalty buyout agreement in 2018.
The following table presents the amortization recorded related to the Company’s finite-lived intangible assets for the three months ended March 31, 2024 and 2023 (in thousands):
 Three Months Ended March 31,
 20242023
Cost of revenue$66 $66 
Sales, general and administrative2,487 2,486 
Total$2,553 $2,552 
v3.24.1.u1
Goodwill
 3 Months Ended
Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill
6. Goodwill
The following table presents the changes in goodwill during the three months ended March 31, 2024 (in thousands):
Total Company
Balance as of December 31, 2023$166,270 
Foreign currency translation (167)
Balance as of March 31, 2024$166,103 
Goodwill Impairment Review
The Company reviews goodwill for impairment annually on October 31, or more frequently if events or circumstances indicate that an impairment loss may have occurred. The Company determined there were no impairment indicators as of March 31, 2024.
v3.24.1.u1
Indebtedness
 3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
Indebtedness
7. Indebtedness
Credit Agreement
On April 24, 2020, the Company entered into a Credit Agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent and lender, and Bank of America, N.A. and Citibank, N.A. as lenders. The Credit Agreement was secured and provided for up to $100 million in available revolving borrowing capacity with an option, subject to certain conditions, for the Company to increase the aggregate borrowing capacity to up to $150 million, and originally matured on April 23, 2021. During the three months ended March 31, 2021, 2022 and 2023, the Credit Agreement was amended to extend the maturity date and make other changes to the terms of the Credit Agreement. The Credit Agreement matured on February 16, 2024 and was not renewed.
v3.24.1.u1
Commitments and Contingencies
 3 Months Ended
Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
8. Commitments and Contingencies
Royalty Obligations
In March 2005, the Company entered into a license agreement that requires the Company to make minimum royalty payments to the licensor on a quarterly basis. As of December 31, 2018, the license agreement required minimum annual royalty payments of $0.1 million in equal quarterly installments. In July 2019, the Company amended the license agreement to extend its term for an additional ten years and to increase the required minimum annual royalty payments by $0.2 million for a required minimum annual royalty payment of $0.3 million. Unless terminated earlier, the term of the amended license agreement shall expire June 30, 2029.
Royalty expense included in cost of sales for the three months ended March 31, 2024 and 2023 was $0.6 million and $0.7 million, respectively.
Contingencies
From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of business. The Company accrues a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated.
Indemnification
The Company enters into standard indemnification arrangements in the ordinary course of business. In many such arrangements, the Company agrees to indemnify, hold harmless, and reimburse the indemnified parties for losses suffered or
incurred by the indemnified parties in connection with any trade secret, copyright, patent or other intellectual property infringement claim by any third-party with respect to the Company’s technology. The Company also agrees to indemnify many indemnified parties for product defect and similar claims. The term of these indemnification agreements is generally perpetual. The maximum potential amount of future payments the Company could be required to make under these agreements is not determinable because it involves claims that may be made against the Company in the future, but have not yet been made.
The Company has entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of the individual.
The Company has not incurred costs to defend lawsuits or settle claims related to these indemnification agreements. No liability associated with any of these indemnification requirements has been recorded to date.
Litigation
From time to time, the Company is subject to certain legal proceedings, as well as demands, claims and threatened litigation that arise in the normal course of our business. The Company reviews the status of each significant matter quarterly and assesses its potential financial exposure. If the potential loss from a claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company records a liability and an expense for the estimated loss and discloses it in the Company’s financial statements if it is significant. If the Company determines that a loss is possible and the range of the loss can be reasonably determined, the Company does not record a liability or an expense but the Company discloses the range of the possible loss. The Company bases its judgments on the best information available at the time. As additional information becomes available, the Company reassesses the potential liability related to its pending claims and litigation and may revise its estimates.
On April 7, 2023, a former contractor who had been retained by the Company through a third party staffing agency filed a putative class action lawsuit as well as a Private Attorney General Act (“PAGA”) representative action complaint against the Company in the Superior Court of the State of California for the County of Alameda, on behalf of the contractor and similarly situated Company contractors and employees in California, alleging various claims pursuant to the California Labor Code related to wages, overtime, meal and rest breaks, reimbursement of business expenses, wage statements and records, and other similar allegations. Additionally, on April 10, 2023, a current employee of the Company filed a PAGA representative action complaint against the Company in the Superior Court of the State of California for the County of Alameda, on behalf of the employee and similarly situated Company employees in California, alleging similar claims. The complaints seek payment of various alleged unpaid wages, penalties, interest and attorneys’ fees in unspecified amounts. On April 22, 2024, the Company engaged in mediation, following which the parties agreed to settle the claims for an aggregate amount of $4.6 million, subject to negotiation of a mutually agreeable settlement agreement and approval by the court. As a result, the Company recorded an accrual of $4.6 million in its financial statements for the three months ended March 31, 2024 related to these matters.
v3.24.1.u1
Stockholder's Equity
 3 Months Ended
Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stockholder's Equity
9. Stockholders’ Equity
Stock-based Compensation
Stock-based compensation expense is associated with restricted stock units (“RSUs”), RSUs with performance conditions (“PSUs”), stock options, and the Company’s Employee Stock Purchase Plan (“ESPP”).
Certain PSUs granted to senior management during the three months ended March 31, 2024, will vest subject to the achievement of pre-established financial performance targets for the year ending December 31, 2024, and continued service. The fair value of these PSUs is based on the closing price of the Company's common stock on the date of grant. Stock-based compensation costs associated with these PSUs are recognized over the requisite service period of 4.25 years using graded vesting which results in more accelerated expense recognition compared to traditional time-based vesting over the same vesting period. Each reporting period, the Company monitors the probability of achieving the performance targets and may adjust periodic stock-based compensation expense based on its determination of the likelihood of achieving these performance targets and the estimated number of shares of common stock that will vest. The actual number of PSUs awarded is based on the actual performance during the performance period compared to the performance targets.
The following table sets forth the stock-based compensation expense included in the Company’s condensed consolidated statements of operations for the three months ended March 31, 2024 and 2023 (in thousands):
 Three Months Ended March 31,
 20242023
Cost of revenue$1,194 $1,191 
Research and development2,168 2,278 
Sales, general and administrative10,207 9,297 
Total$13,569 $12,766 
As of March 31, 2024, total unrecognized compensation cost related to unvested share-based compensation arrangements, excluding PSUs, was $56.4 million, which is expected to be recognized over a weighted average period of 2.6 years.
As of March 31, 2024, total unrecognized compensation cost related to unvested PSU share-based compensation arrangements was $27.3 million, which is expected to be recognized over a weighted average period of 3.5 years.
The total stock-based compensation cost capitalized in inventory was $1.2 million and $1.3 million as of March 31, 2024 and December 31, 2023, respectively.
v3.24.1.u1
Accumulated Other Comprehensive Income
 3 Months Ended
Mar. 31, 2024
Equity [Abstract]  
Accumulated Other Comprehensive Income
10. Accumulated Other Comprehensive Income
Other comprehensive (loss) income consists of two components: unrealized gains or losses on the Company’s available-for-sale marketable investments and gains or losses from foreign currency translation adjustments. Until realized and reported as a component of consolidated net income, these comprehensive income items accumulate and are included within accumulated other comprehensive income. Unrealized gains and losses on our marketable investments are reclassified from accumulated other comprehensive income into earnings when realized upon sale, and are determined based on specific identification of securities sold. Gains and losses from the translation of assets and liabilities denominated in non-U.S. dollar functional currencies are included in accumulated other comprehensive income.
The following table summarizes the changes in the accumulated balances during the period, and includes information regarding the manner in which the reclassifications out of accumulated other comprehensive income into earnings affect our condensed consolidated statements of comprehensive income (loss) (in thousands):    
Three Months Ended March 31, 2024Three Months Ended March 31, 2023
 Marketable
Investments		 Currency Translation
Adjustments		 Total Marketable
Investments		 Currency Translation
Adjustments		 Total
Balance, beginning of the period$(558)$(2,593)$(3,151)$(3,500)$(4,624)$(8,124)
Other comprehensive loss before reclassifications:
Unrealized gains — marketable investments(1)
166 — 166 860 — 860 
Foreign currency translation (losses) gains— (1,857)(1,857)— 403 403 
Income tax effect — expense— 4 4 — — — 
Net of tax166 (1,853)(1,687)860 403 1,263 
Net current-year other comprehensive income (loss)166 (1,853)(1,687)860 403 1,263 
Balance, end of the period$(392)$(4,446)$(4,838)$(2,640)$(4,221)$(6,861)
(1) There were no unrealized gains or losses recorded in connection with the Company’s non-marketable debt securities as of March 31, 2024.
v3.24.1.u1
Income Taxes
 3 Months Ended
Mar. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes
11. Income Taxes
The Company’s income tax expense (benefit), deferred tax assets and liabilities, and reserves for unrecognized tax benefits reflect management’s best assessment of estimated current and future taxes to be paid. The Company is subject to income taxes in both the United States and foreign jurisdictions. Significant judgment and estimates are required in determining the consolidated income tax expense (benefit).
During interim periods, the Company generally utilizes the estimated annual effective tax rate (“AETR”) method which involves the use of forecasted information. Under the AETR method, the provision is calculated by applying the estimated
AETR for the full fiscal year to “ordinary” income or loss (pretax income or loss excluding unusual or infrequently occurring discrete items) for the reporting period. Jurisdictions with tax assets for which the Company believes a tax benefit cannot be realized are excluded from the computation of its AETR.
The Company’s 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. The 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 its U.S. jurisdiction.
Significant domestic deferred tax assets (“DTAs”) were generated in recent years, primarily due to excess tax benefits from stock option exercises and vesting of restricted stock units. The Company evaluates all available positive and negative evidence, objective and subjective in nature, in each reporting period to determine if sufficient taxable income will be generated to realize the benefits of its DTAs and, if not, a valuation allowance to reduce the DTAs is recorded.
As of March 31, 2024, the Company maintains a valuation allowance primarily against its California R&D tax credit DTAs for which the Company does not believe a tax benefit is more likely than not to be realized due to the computation of California taxes under the single sales factor and non-conformity of the Section 174 capitalization rule.
The Company maintains that all foreign earnings, with the exception of a portion of the earnings of its German subsidiary, are permanently reinvested outside the United States and therefore deferred taxes attributable to such earnings are not provided for in the Company’s condensed consolidated financial statements as of March 31, 2024.
v3.24.1.u1
Net Income per Share
 3 Months Ended
Mar. 31, 2024
Earnings Per Share [Abstract]  
Net Income (Loss) per Share
12. Net Income per Share
The Company computed basic net income per share based on the weighted average number of shares of common stock outstanding during the period. The Company computed diluted net income per share based on the weighted average number of shares of common stock outstanding plus potentially dilutive common stock equivalents outstanding during the period. For the purposes of this calculation, stock options, restricted stock units, performance stock units, and stock sold through the ESPP are considered common stock equivalents.
A reconciliation of the numerator and denominator used in the calculation of the basic and diluted net income per share is as follows (in thousands, except share and per share amounts):
 Three Months Ended March 31,
 20242023
Numerator:
Net income$11,002 $8,562 
Denominator:
Weighted average shares used to compute net income attributable to common stockholders:
Basic38,717,334 38,186,342 
Potential dilutive stock-based options and awards670,025 889,046 
Diluted39,387,359 39,075,388 
Net income per share:
Basic$0.28 $0.22 
Diluted$0.28 $0.22 
For the three months ended March 31, 2024 and 2023, outstanding stock-based awards of 26 thousand and 26 thousand shares, respectively, were excluded from the computation of diluted net income per share because their effect would have been anti-dilutive in the periods presented.
v3.24.1.u1
Interest and other income (expense), net
 3 Months Ended
Mar. 31, 2024
Other Income and Expenses [Abstract]  
Interest and other income (expense), net
13. Interest and other income (expense), net
The following table shows the components of interest and other income (expense), net for the three months ended March 31, 2024 and 2023 and (in thousands):
 Three Months Ended March 31,
 20242023
Interest income$3,293 $970 
Interest expense(402)(416)
Other income (expense), net(1)
(366)90 
Interest and other income, net$2,525 $644 
(1) Consists primarily of the effects of foreign currency gains or losses.
v3.24.1.u1
Revenues
 3 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenues
14. Revenues
Revenue Recognition
Revenue is recognized in an amount that reflects the consideration the Company expects to be entitled to in exchange for goods or services. All revenue recognized in the condensed consolidated statements of operations is considered to be revenue from contracts with customers.
Certain changes in presentation were made to the Company’s revenues disaggregated by product categories for the period ended March 31, 2023 to conform to the presentation for the period ended March 31, 2024. During the year ended December 31, 2023, the Company made changes to its product categories to provide investors with more meaningful information to understand the performance of its business and strategic direction.
The Company’s revenues disaggregated by geography, based on the destination to which the Company ships its products, for the three months ended March 31, 2024 and 2023 was as follows (in thousands):
 Three Months Ended March 31,
 20242023
United States$209,644 $171,879 
International69,011 69,519 
Total$278,655 $241,398 
The Company’s revenues disaggregated by product category for the three months ended March 31, 2024 and 2023 was as follows (in thousands):
 Three Months Ended March 31,
 20242023
Thrombectomy$187,703 $144,980 
Embolization and Access90,952 96,418 
Total$278,655 $241,398 
Performance Obligations
Delivery of products - The Company’s contracts with customers, other than the China licensing arrangements described below, typically contain a single performance obligation, delivery of the Company’s products. Satisfaction of that performance obligation occurs when control of the promised goods transfers to the customer, which is generally upon shipment or receipt by customer for non-consignment sale agreements and upon utilization for consignment sale agreements.
Payment terms - The Company’s payment terms vary by the type and location of our customer. The timing between fulfillment of performance obligations and when payment is due is not significant and does not give rise to financing transactions. The Company did not have any contracts with significant financing components as of March 31, 2024 and 2023.
Product returns - The Company may allow customers to return products purchased at the Company’s discretion. The Company estimates the amount of its product sales that may be returned by its customers and records this estimate as a
reduction of revenue in the period in which the related product revenue is recognized. The Company currently estimates product return liabilities using its own historic sales information, trends, industry data, and other relevant data points.
Warranties - The Company offers its standard warranty to all customers and it is not available for sale on a standalone basis. The Company’s standard warranty represents its guarantee that its products function as intended, are free from defects, and comply with agreed-upon specifications and quality standards. This assurance does not constitute a service and is not a separate performance obligation.
Transaction Price
Revenue is recorded at the net sales price, which includes estimates of variable consideration such as product returns utilizing historical return rates, rebates, discounts, and other adjustments to net revenue. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price. When determining if variable consideration should be constrained, management considers whether there are factors that could result in a significant reversal of revenue and the likelihood of a potential reversal. Variable consideration is included in revenue only to the extent that it is probable that a significant reversal of the revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. These estimates are reassessed each reporting period as required. During the three months ended March 31, 2024 and 2023, the Company made no material changes in estimates for variable consideration. When the Company performs shipping and handling activities after control of goods is transferred to the customer, they are considered as fulfillment activities, and costs are accrued for when the related revenue is recognized. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenues.
Contract assets and liabilities
The following information summarizes the Company’s contract assets and liabilities (in thousands):
March 31, 2024December 31, 2023
Contract assets$18,000 $18,000 
Contract liabilities$7,261 $6,496 
Contract assets for the periods presented primarily represent the difference between the revenue that was recognized based on the relative standalone selling price of the related performance obligations satisfied and the contractual billing terms in the licensing arrangements.
Contract liabilities represents amounts that the Company has already invoiced and are ultimately expected to be recognized as revenue, but for which not all revenue recognition criteria have been met and is recognized as the associated performance obligations are satisfied.
China Distribution and Technology Licensing Agreement
In December 2020, the Company entered into a distribution and technology licensing arrangement with its existing distribution partner in China. In addition to modifying the Company’s standard distribution agreement with its partner in China, the Company agreed to license the technology for certain products to its partner in China to permit the manufacturing and commercialization of such products in China as well as provide certain regulatory support. During the three months ended March 31, 2022, the Company further amended the distribution agreement and entered into an additional license arrangement, pursuant to which the Company agreed to license the technology for additional products to its partner in China on substantially the same terms as the existing license arrangement. Apart from the standard distribution agreement, the Company will receive fixed payments upon transferring its distinct licensed technology and providing related regulatory support. During the three months ended September 30, 2023, the Company entered into an additional licensing arrangement, pursuant to which the Company agreed to license the technology for additional products to its partner in China and will receive fixed payments upon transferring its distinct licensed technology and providing related regulatory support and royalty payments on the down-stream sale of the licensed products. During the three months ended March 31, 2024, the Company entered into another licensing agreement, pursuant to which the Company agreed to license the technology for additional products to its partner in China and will receive fixed payments upon transferring its distinct licensed technology and providing related regulatory support.
v3.24.1.u1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Pay vs Performance Disclosure    
Net income $ 11,002 $ 8,562
v3.24.1.u1
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.1.u1
Summary of Significant Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 2024
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation and Consolidation
The accompanying condensed consolidated balance sheet as of March 31, 2024, the condensed consolidated statements of operations, the condensed consolidated statements of comprehensive income (loss), and the condensed consolidated statements of stockholders’ equity for the three months ended March 31, 2024 and 2023, and the condensed consolidated statements of cash flows for the three months ended March 31, 2024 and 2023 are unaudited. The unaudited condensed consolidated financial statements included herein have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) for interim financial information. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. The condensed consolidated balance sheet data as of December 31, 2023 was derived from the audited financial statements as of that date.
The unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to state fairly the Company’s financial position as of March 31, 2024, the results of its operations for the three months ended March 31, 2024 and 2023, the changes in its comprehensive income (loss) and stockholders’ equity for the three months ended March 31, 2024 and 2023, and its cash flows for the three months ended March 31, 2024 and 2023. The results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024 or for any other future annual or interim period. Certain changes in presentation were made to interest income (expense), net and other income (expense), net in the condensed consolidated statements of operations for the three months ended March 31, 2023 to conform to the presentation for the three months ended March 31, 2024.
The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and notes thereto for the fiscal year ended December 31, 2023, included in the Company’s Annual Report on Form 10-K as filed with the SEC on February 22, 2024. There have been no changes to the Company’s significant accounting policies during the three months ended March 31, 2024, as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
Consolidation
The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and equity accounts; disclosure of contingent assets and liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to marketable investments, allowances for credit losses, the amount of variable consideration included in the transaction price, warranty reserve, valuation of inventories, useful lives of property and equipment, intangibles, operating and financing lease right-of-use (“ROU”) assets and liabilities, income taxes, and other contingencies, including the probability of achieving performance targets associated with equity awards with performance conditions, among others. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other data. Actual results could differ from those estimates.
Segments
Segments
The Company determined its operating segment on the same basis that it uses to evaluate its performance internally. The Company has one business activity: the design, development, manufacturing and marketing of innovative medical products, and operates as one operating segment. The Company’s chief operating decision-maker, its Chief Executive Officer, reviews its consolidated operating results for the purpose of allocating resources and evaluating financial performance.
Marketable and Non-Marketable Investments
Marketable and Non-Marketable Investments
The Company’s marketable and non-marketable investments have been classified and accounted for as available-for-sale.
Recently Issued Accounting Standards
Recently Issued Accounting Standards
In December 2023, the FASB issued Accounting Standards Update (“ASU”) No. 2023-09, Income Taxes— Improvements to Income Tax Disclosures. The standard enhances annual income tax disclosures, by requiring additional disaggregated information about an entity’s effective tax rate reconciliation and income taxes paid. The ASU adds guidance that requires public business entities to disclose additional information in specified categories with respect to the reconciliation of the effective tax rate to the statutory rate (the rate reconciliation) for federal, state, and foreign income taxes. It also requires greater detail about individual reconciling items in the rate reconciliation to the extent the impact of those items exceeds a specified threshold (5%). In addition to new disclosures associated with the rate reconciliation, the ASU requires information pertaining to taxes paid (net of refunds received) to be disaggregated for federal, state, and foreign taxes and further disaggregated for specific jurisdictions to the extent the related amounts exceed the quantitative threshold. For public business entities, the amendments in ASU 2023-09 are effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements not yet issued or made available for issuance. The Company is assessing the impact the new guidance will have on the disclosures within its consolidated financial statements and does not elect to early adopt as of March 31, 2024.
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly reviewed by the CODM and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. The ASU also allows, in addition to the measure that is most consistent with U.S. GAAP, the disclosure of additional measures of segment profit or loss that are used by the CODM in assessing segment performance and deciding how to allocate resources. All disclosure requirements under ASU 2023-07 are also required for public entities with a single reportable segment. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, on a retrospective basis, with early adoption permitted. The Company is assessing the impact the new guidance will have on the disclosures within its consolidated financial statements and does not elect to early adopt as of March 31, 2024.
v3.24.1.u1
Investments and Fair Value of Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
Schedule of Marketable Investments The Company’s marketable and non-marketable investments as of March 31, 2024 and December 31, 2023 were as follows (in thousands):
March 31, 2024
Securities with net gains or losses in accumulated other comprehensive income (loss)
Amortized CostGross Unrealized GainsGross Unrealized LossesAllowance
 for
 Credit Loss		Fair Value
Marketable investments:
Commercial paper $31,449 $7 $(11)$— $31,445 
Certificate of Deposit4,632 4 — — 4,636 
U.S. treasury13,210 — (142)$— 13,068 
U.S. states and municipalities900 — (9)— 891 
Corporate bonds40,542 19 (241)— 40,320 
Total90,733 30 (403)— 90,360 
Non-marketable investments:
Non-marketable debt securities10,000 — — — 10,000 
Total10,000 — — — 10,000 
Total $100,733 $30 $(403)$— $100,360 
December 31, 2023
Securities with net gains or losses in accumulated other comprehensive income (loss)
Amortized CostGross Unrealized GainsGross Unrealized LossesAllowance
 for
 Credit Loss		Fair Value
Marketable investments:
Commercial paper $39,727 $32 $(3)$— $39,756 
Certificate of Deposit6,392 9 — — 6,401 
U.S. treasury10,226 — (160)— 10,066 
U.S. states and municipalities2,950 — (35)— 2,915 
Corporate bonds62,964 29 (430)— 62,563 
Total$122,259 $70 $(628)$— $121,701 
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value
The following tables present the gross unrealized losses and the fair value for those marketable investments that were in an unrealized loss position for less than and more twelve months as of March 31, 2024 and December 31, 2023 (in thousands):
March 31, 2024
Less than 12 monthsMore than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Marketable investments:
Commercial paper$20,041 $(11)$— $— $20,041 $(11)
U.S. treasury5,666 (80)4,436 (62)10,102 (142)
U.S. states and municipalities— — 891 (9)891 (9)
Corporate bonds2,998 (3)13,421 (238)16,419 (241)
Total$28,705 $(94)$18,748 $(309)$47,453 $(403)
December 31, 2023
Less than 12 monthsMore than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Marketable investments:
Commercial paper$16,241 $(3)$— $— $16,241 $(3)
U.S. treasury5,677 (54)4,389 (106)10,066 (160)
U.S. states and municipalities— — 2,915 (35)2,915 (35)
Corporate bonds15,945 (2)30,912 (428)46,857 (430)
Total$37,863 $(59)$38,216 $(569)$76,079 $(628)
Schedule of Contractual Maturities of Marketable Investments
The contractual maturities of the Company’s marketable investments as of March 31, 2024 (in thousands):
March 31, 2024
Marketable investments:Amortized CostFair Value
Due in one year$87,922 $87,601 
Due in one to five years2,811 2,759 
Total$90,733 $90,360 
Schedule of Fair Value of Assets and Liabilities
The following tables set forth the Company’s financial assets and liabilities measured at fair value by level within the fair value hierarchy as of March 31, 2024 and December 31, 2023 (in thousands):
 As of March 31, 2024
 Level 1Level 2Level 3Fair Value
Financial Assets
Cash equivalents:
Commercial paper$— $30,555 $— $30,555 
Certificate of deposit— 4,901 — 4,901 
Money market funds57,278 — — 57,278 
U.S. treasury53,672 — — 53,672 
Marketable investments:
Commercial paper— 31,445 — 31,445 
Certificate of deposit— 4,636 — 4,636 
U.S. treasury13,068 — — 13,068 
U.S. states and municipalities— 891 — 891 
Corporate bonds— 40,320 — 40,320 
Non-marketable investments:
Non-marketable investments— — 10,000 10,000 
Total$124,018 $112,748 $10,000 $246,766 
 As of December 31, 2023
 Level 1Level 2Level 3Fair Value
Financial Assets
Cash equivalents:
Money market funds$86,991 $— $— $86,991 
Marketable investments:
Commercial paper— 39,756 — 39,756 
Certificate of Deposit— 6,401 — 6,401 
U.S. treasury10,066 — — 10,066 
U.S. states and municipalities— 2,915 — 2,915 
Corporate bonds— 62,563 — 62,563 
Total$97,057 $111,635 $— $208,692 
v3.24.1.u1
Balance Sheet Components Balance Sheet Components (Tables)
 3 Months Ended
Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Inventories
The components of inventories consisted of the following (in thousands):
 March 31, 2024December 31, 2023
Raw materials$121,134 $119,511 
Work in process36,815 34,489 
Finished goods240,417 234,023 
Inventories$398,366 $388,023 
Schedule of Accrued Liabilities
The components of accrued liabilities consisted of the following (in thousands):
 March 31, 2024December 31, 2023
Payroll and employee-related expenses$59,481 $65,395 
Accrued expenses14,327 11,711 
Deferred revenue8,672 6,985 
Other accrued liabilities24,069 26,464 
Total accrued liabilities$106,549 $110,555 
Schedule of Estimated Product Warranty Accrual
The following table shows the changes in the Company’s estimated product warranty accrual, included in accrued liabilities, for the three months ended March 31, 2024 and twelve months ended December 31, 2023, respectively (in thousands):
 March 31, 2024December 31, 2023
Balance at the beginning of the period$5,755 $5,370 
Accruals of warranties issued, net(3,141)1,865 
Settlements of warranty claims(536)(1,480)
Balance at the end of the period$2,078 $5,755 
v3.24.1.u1
Intangible Assets Intangible Assets (Tables)
 3 Months Ended
Mar. 31, 2024
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Schedule of Finite-lived Intangible Assets
The following table presents details of the Company’s acquired intangible assets as of March 31, 2024 and December 31, 2023 (in thousands, except weighted-average amortization period):
As of March 31, 2024Weighted-Average Amortization PeriodGross Carrying AmountAccumulated AmortizationNet
Finite-lived intangible assets:
Developed technology8.8 years$83,289 $(22,020)$61,269 
Customer relationships15.0 years6,434 (2,895)3,539 
Trade secrets and processes20.0 years5,256 (1,643)3,613 
Total intangible assets 9.6 years$94,979 $(26,558)$68,421 
As of December 31, 2023Weighted-Average
Amortization Period		Gross Carrying AmountAccumulated AmortizationNet
Finite-lived intangible assets:
Developed technology8.8 years$83,289 $(19,640)$63,649 
Customer relationships15.0 years6,579 (2,851)3,728 
Trade secrets and processes20.0 years5,256 (1,577)3,679 
Total intangible assets9.6 years$95,124 $(24,068)$71,056 
Finite-lived Intangible Assets Amortization Expense
The following table presents the amortization recorded related to the Company’s finite-lived intangible assets for the three months ended March 31, 2024 and 2023 (in thousands):
 Three Months Ended March 31,
 20242023
Cost of revenue$66 $66 
Sales, general and administrative2,487 2,486 
Total$2,553 $2,552 
v3.24.1.u1
Goodwill (Tables)
 3 Months Ended
Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
The following table presents the changes in goodwill during the three months ended March 31, 2024 (in thousands):
Total Company
Balance as of December 31, 2023$166,270 
Foreign currency translation (167)
Balance as of March 31, 2024$166,103 
v3.24.1.u1
Stockholder's Equity (Tables)
 3 Months Ended
Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock-based Compensation Expense
The following table sets forth the stock-based compensation expense included in the Company’s condensed consolidated statements of operations for the three months ended March 31, 2024 and 2023 (in thousands):
 Three Months Ended March 31,
 20242023
Cost of revenue$1,194 $1,191 
Research and development2,168 2,278 
Sales, general and administrative10,207 9,297 
Total$13,569 $12,766 
v3.24.1.u1
Accumulated Other Comprehensive Income (Tables)
 3 Months Ended
Mar. 31, 2024
Equity [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss)
The following table summarizes the changes in the accumulated balances during the period, and includes information regarding the manner in which the reclassifications out of accumulated other comprehensive income into earnings affect our condensed consolidated statements of comprehensive income (loss) (in thousands):    
Three Months Ended March 31, 2024Three Months Ended March 31, 2023
 Marketable
Investments		 Currency Translation
Adjustments		 Total Marketable
Investments		 Currency Translation
Adjustments		 Total
Balance, beginning of the period$(558)$(2,593)$(3,151)$(3,500)$(4,624)$(8,124)
Other comprehensive loss before reclassifications:
Unrealized gains — marketable investments(1)
166 — 166 860 — 860 
Foreign currency translation (losses) gains— (1,857)(1,857)— 403 403 
Income tax effect — expense— 4 4 — — — 
Net of tax166 (1,853)(1,687)860 403 1,263 
Net current-year other comprehensive income (loss)166 (1,853)(1,687)860 403 1,263 
Balance, end of the period$(392)$(4,446)$(4,838)$(2,640)$(4,221)$(6,861)
(1) There were no unrealized gains or losses recorded in connection with the Company’s non-marketable debt securities as of March 31, 2024.
v3.24.1.u1
Net Income per Share (Tables)
 3 Months Ended
Mar. 31, 2024
Earnings Per Share [Abstract]  
Reconciliation of the Numerator and Denominator used in the Calculation of the Basic and Diluted Earnings per Share
A reconciliation of the numerator and denominator used in the calculation of the basic and diluted net income per share is as follows (in thousands, except share and per share amounts):
 Three Months Ended March 31,
 20242023
Numerator:
Net income$11,002 $8,562 
Denominator:
Weighted average shares used to compute net income attributable to common stockholders:
Basic38,717,334 38,186,342 
Potential dilutive stock-based options and awards670,025 889,046 
Diluted39,387,359 39,075,388 
Net income per share:
Basic$0.28 $0.22 
Diluted$0.28 $0.22 
v3.24.1.u1
Interest and other income (expense), net (Tables)
 3 Months Ended
Mar. 31, 2024
Other Income and Expenses [Abstract]  
Schedule of Other Operating Cost and Expense, by Component
The following table shows the components of interest and other income (expense), net for the three months ended March 31, 2024 and 2023 and (in thousands):
 Three Months Ended March 31,
 20242023
Interest income$3,293 $970 
Interest expense(402)(416)
Other income (expense), net(1)
(366)90 
Interest and other income, net$2,525 $644 
(1) Consists primarily of the effects of foreign currency gains or losses.
v3.24.1.u1
Revenues Revenues (Tables)
 3 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
The Company’s revenues disaggregated by geography, based on the destination to which the Company ships its products, for the three months ended March 31, 2024 and 2023 was as follows (in thousands):
 Three Months Ended March 31,
 20242023
United States$209,644 $171,879 
International69,011 69,519 
Total$278,655 $241,398 
The Company’s revenues disaggregated by product category for the three months ended March 31, 2024 and 2023 was as follows (in thousands):
 Three Months Ended March 31,
 20242023
Thrombectomy$187,703 $144,980 
Embolization and Access90,952 96,418 
Total$278,655 $241,398 
Summary of Contract Assets and Liabilities
The following information summarizes the Company’s contract assets and liabilities (in thousands):
March 31, 2024December 31, 2023
Contract assets$18,000 $18,000 
Contract liabilities$7,261 $6,496 
v3.24.1.u1
Summary of Significant Accounting Policies - Additional Disclosures (Details)
 3 Months Ended
Mar. 31, 2024
activity
segment
Accounting Policies [Abstract]  
Number of business activities | activity 1
Number of operating segments | segment 1
v3.24.1.u1
Investments and Fair Value of Financial Instruments - Gains and Losses of Marketable Investments (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost $ 90,733 $ 122,259
Gross Unrealized Gains 30 70
Gross Unrealized Losses (403) (628)
Allowance for Credit Loss 0 0
Fair Value 90,360 121,701
Commercial paper    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 31,449 39,727
Gross Unrealized Gains 7 32
Gross Unrealized Losses (11) (3)
Allowance for Credit Loss 0 0
Fair Value 31,445 39,756
Certificate of Deposit    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 4,632 6,392
Gross Unrealized Gains 4 9
Gross Unrealized Losses 0 0
Allowance for Credit Loss 0 0
Fair Value 4,636 6,401
U.S. treasury    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 13,210 10,226
Gross Unrealized Gains 0 0
Gross Unrealized Losses (142) (160)
Allowance for Credit Loss 0 0
Fair Value 13,068 10,066
U.S. states and municipalities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 900 2,950
Gross Unrealized Gains 0 0
Gross Unrealized Losses (9) (35)
Allowance for Credit Loss 0 0
Fair Value 891 2,915
Corporate bonds    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 40,542 62,964
Gross Unrealized Gains 19 29
Gross Unrealized Losses (241) (430)
Allowance for Credit Loss 0 0
Fair Value 40,320 $ 62,563
Non-marketable investments    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 10,000  
Gross Unrealized Gains 0  
Gross Unrealized Losses 0  
Allowance for Credit Loss 0  
Fair Value 10,000  
Marketable And Non-Marketable Investments    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 100,733  
Gross Unrealized Gains 30  
Gross Unrealized Losses (403)  
Allowance for Credit Loss 0  
Fair Value $ 100,360  
v3.24.1.u1
Investments and Fair Value of Financial Instruments - Narrative (Details) - USD ($)
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Fair Value Disclosures [Abstract]      
Gross Unrealized Losses $ (403,000)   $ (628,000)
Allowance for credit loss 0    
Payments for non-marketable investment $ 10,000,000 $ 0  
v3.24.1.u1
Investments and Fair Value of Financial Instruments - Marketable Securities in an Unrealized Loss Position (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]    
Less than 12 months: Fair Value $ 28,705 $ 37,863
Less than 12 months: Gross Unrealized Losses (94) (59)
12 Months of more: Fair Value 18,748 38,216
12 months or more: Gross Unrealized Losses (309) (569)
Total: Fair Value 47,453 76,079
Total: Gross Unrealized Losses (403) (628)
Commercial paper    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 months: Fair Value 20,041 16,241
Less than 12 months: Gross Unrealized Losses (11) (3)
12 Months of more: Fair Value 0 0
12 months or more: Gross Unrealized Losses 0 0
Total: Fair Value 20,041 16,241
Total: Gross Unrealized Losses (11) (3)
U.S. treasury    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 months: Fair Value 5,666 5,677
Less than 12 months: Gross Unrealized Losses (80) (54)
12 Months of more: Fair Value 4,436 4,389
12 months or more: Gross Unrealized Losses (62) (106)
Total: Fair Value 10,102 10,066
Total: Gross Unrealized Losses (142) (160)
U.S. states and municipalities    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 months: Fair Value 0 0
Less than 12 months: Gross Unrealized Losses 0 0
12 Months of more: Fair Value 891 2,915
12 months or more: Gross Unrealized Losses (9) (35)
Total: Fair Value 891 2,915
Total: Gross Unrealized Losses (9) (35)
Corporate bonds    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 months: Fair Value 2,998 15,945
Less than 12 months: Gross Unrealized Losses (3) (2)
12 Months of more: Fair Value 13,421 30,912
12 months or more: Gross Unrealized Losses (238) (428)
Total: Fair Value 16,419 46,857
Total: Gross Unrealized Losses $ (241) $ (430)
v3.24.1.u1
Investments and Fair Value of Financial Instruments - Contractual Maturities of Marketable Investments (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Amortized Cost    
Due in one year $ 87,922  
Due in one to five years 2,811  
Total 90,733 $ 122,259
Fair Value    
Due in one year 87,601  
Due in one to five years 2,759  
Total $ 90,360 $ 121,701
v3.24.1.u1
Investments and Fair Value of Financial Instruments - Financial Assets and Liabilities Measured at Fair Value (Details) - Recurring - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Financial Assets    
Assets, Fair Value Disclosure $ 246,766 $ 208,692
Commercial paper    
Financial Assets    
Marketable investments 31,445 39,756
Certificate of Deposit    
Financial Assets    
Marketable investments 4,636 6,401
U.S. treasury    
Financial Assets    
Marketable investments 13,068 10,066
U.S. states and municipalities    
Financial Assets    
Marketable investments 891 2,915
Corporate bonds    
Financial Assets    
Marketable investments 40,320 62,563
Non-marketable investments    
Financial Assets    
Marketable investments 10,000  
Commercial paper    
Financial Assets    
Cash equivalents 30,555  
Certificate of Deposit    
Financial Assets    
Cash equivalents 4,901  
Money market funds    
Financial Assets    
Cash equivalents 57,278 86,991
U.S. treasury    
Financial Assets    
Cash equivalents 53,672  
Level 1    
Financial Assets    
Assets, Fair Value Disclosure 124,018 97,057
Level 1 | Commercial paper    
Financial Assets    
Marketable investments 0 0
Level 1 | Certificate of Deposit    
Financial Assets    
Marketable investments 0 0
Level 1 | U.S. treasury    
Financial Assets    
Marketable investments 13,068 10,066
Level 1 | U.S. states and municipalities    
Financial Assets    
Marketable investments 0 0
Level 1 | Corporate bonds    
Financial Assets    
Marketable investments 0 0
Level 1 | Non-marketable investments    
Financial Assets    
Marketable investments 0  
Level 1 | Commercial paper    
Financial Assets    
Cash equivalents 0  
Level 1 | Certificate of Deposit    
Financial Assets    
Cash equivalents 0  
Level 1 | Money market funds    
Financial Assets    
Cash equivalents 57,278 86,991
Level 1 | U.S. treasury    
Financial Assets    
Cash equivalents 53,672  
Level 2    
Financial Assets    
Assets, Fair Value Disclosure 112,748 111,635
Level 2 | Commercial paper    
Financial Assets    
Marketable investments 31,445 39,756
Level 2 | Certificate of Deposit    
Financial Assets    
Marketable investments 4,636 6,401
Level 2 | U.S. treasury    
Financial Assets    
Marketable investments 0 0
Level 2 | U.S. states and municipalities    
Financial Assets    
Marketable investments 891 2,915
Level 2 | Corporate bonds    
Financial Assets    
Marketable investments 40,320 62,563
Level 2 | Non-marketable investments    
Financial Assets    
Marketable investments 0  
Level 2 | Commercial paper    
Financial Assets    
Cash equivalents 30,555  
Level 2 | Certificate of Deposit    
Financial Assets    
Cash equivalents 4,901  
Level 2 | Money market funds    
Financial Assets    
Cash equivalents 0 0
Level 2 | U.S. treasury    
Financial Assets    
Cash equivalents 0  
Level 3    
Financial Assets    
Assets, Fair Value Disclosure 10,000 0
Level 3 | Commercial paper    
Financial Assets    
Marketable investments 0 0
Level 3 | Certificate of Deposit    
Financial Assets    
Marketable investments 0 0
Level 3 | U.S. treasury    
Financial Assets    
Marketable investments 0 0
Level 3 | U.S. states and municipalities    
Financial Assets    
Marketable investments 0 0
Level 3 | Corporate bonds    
Financial Assets    
Marketable investments 0 0
Level 3 | Non-marketable investments    
Financial Assets    
Marketable investments 10,000  
Level 3 | Commercial paper    
Financial Assets    
Cash equivalents 0  
Level 3 | Certificate of Deposit    
Financial Assets    
Cash equivalents 0  
Level 3 | Money market funds    
Financial Assets    
Cash equivalents 0 $ 0
Level 3 | U.S. treasury    
Financial Assets    
Cash equivalents $ 0  
v3.24.1.u1
Balance Sheet Components - Inventories (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Raw materials $ 121,134 $ 119,511
Work in process 36,815 34,489
Finished goods 240,417 234,023
Inventories $ 398,366 $ 388,023
v3.24.1.u1
Balance Sheet Components - Accrued Liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Payroll and employee-related expenses $ 59,481 $ 65,395
Accrued expenses 14,327 11,711
Deferred revenue 8,672 6,985
Other accrued liabilities 24,069 26,464
Total accrued liabilities $ 106,549 $ 110,555
v3.24.1.u1
Balance Sheet Components - Product Warranty (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Product Warranty, Increase (Decrease) [Roll Forward]    
Balance at the beginning of the period $ 5,755 $ 5,370
Accruals of warranties issued, net (3,141) 1,865
Settlements of warranty claims (536) (1,480)
Balance at the end of the period $ 2,078 $ 5,755
v3.24.1.u1
Intangible Assets - Intangible Assets (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]      
Weighted-Average Amortization Period 9 years 7 months 6 days   9 years 7 months 6 days
Finite lived intangible assets: gross carrying amount $ 94,979   $ 95,124
Accumulated amortization (26,558)   (24,068)
Finite lived intangible assets: net 68,421   71,056
Intangible assets, net 68,421   $ 71,056
Total amortization of finite lived intangible assets $ 2,553 $ 2,552  
Developed technology      
Finite-Lived Intangible Assets [Line Items]      
Weighted-Average Amortization Period 8 years 9 months 18 days   8 years 9 months 18 days
Finite lived intangible assets: gross carrying amount $ 83,289   $ 83,289
Accumulated amortization (22,020)   (19,640)
Finite lived intangible assets: net $ 61,269   $ 63,649
Customer relationships      
Finite-Lived Intangible Assets [Line Items]      
Weighted-Average Amortization Period 15 years   15 years
Finite lived intangible assets: gross carrying amount $ 6,434   $ 6,579
Accumulated amortization (2,895)   (2,851)
Finite lived intangible assets: net $ 3,539   $ 3,728
Trade secrets and processes      
Finite-Lived Intangible Assets [Line Items]      
Weighted-Average Amortization Period 20 years   20 years
Finite lived intangible assets: gross carrying amount $ 5,256   $ 5,256
Accumulated amortization (1,643)   (1,577)
Finite lived intangible assets: net 3,613   $ 3,679
Cost of revenue      
Finite-Lived Intangible Assets [Line Items]      
Total amortization of finite lived intangible assets 66 66  
Sales, general and administrative      
Finite-Lived Intangible Assets [Line Items]      
Total amortization of finite lived intangible assets $ 2,487 $ 2,486  
v3.24.1.u1
Goodwill (Details)
 3 Months Ended
Mar. 31, 2024
USD ($)
Goodwill [Roll Forward]  
Goodwill $ 166,270,000
Foreign currency translation and other adjustments (167,000)
Goodwill 166,103,000
Goodwill impairment $ 0
v3.24.1.u1
Indebtedness (Details) - Revolving Credit Facility
Apr. 24, 2020
USD ($)
Line of Credit Facility [Line Items]  
Borrowing capacity $ 100,000,000
Line of credit, increase limit $ 150,000,000
v3.24.1.u1
Commitments and Contingencies - Royalty Obligations (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended
Apr. 22, 2024
Jul. 31, 2019
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2018
Other Commitments [Line Items]          
Contingent liability     $ 4.6    
Subsequent Event          
Other Commitments [Line Items]          
Litigation settlement, amount agreed upon $ 4.6        
Cost of revenue          
Other Commitments [Line Items]          
Royalty expense     0.6 $ 0.7  
Royalty Agreement, March 2005          
Other Commitments [Line Items]          
Minimum annual royalty payments         $ 0.1
Extended term of agreement   10 years      
Increase in minimum annual royalty payments   $ 0.2      
Minimum quarterly royalty payments     $ 0.3    
v3.24.1.u1
Stockholder's Equity - Stock-based Compensation Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Stock-based compensation expense $ 13,569 $ 12,766  
Share-based compensation expense, capitalized in inventory 1,200   $ 1,300
NonPerformanceShares [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Unrecognized compensation cost related to unvested share-based compensation arrangements $ 56,400    
Unrecognized compensation cost, expected recognition period (in years) 2 years 7 months 6 days    
Performance Shares      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Award requisite service period 4 years 3 months    
Unrecognized compensation cost related to unvested share-based compensation arrangements $ 27,300    
Unrecognized compensation cost, expected recognition period (in years) 3 years 6 months    
Cost of revenue      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Stock-based compensation expense $ 1,194 1,191  
Research and development      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Stock-based compensation expense 2,168 2,278  
Sales, general and administrative      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Stock-based compensation expense $ 10,207 $ 9,297  
v3.24.1.u1
Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning balance $ 1,178,944 $ 998,858
Other comprehensive loss before reclassifications:    
Total other comprehensive (loss) income, net of tax (1,687) 1,263
Ending balance 1,203,531 1,024,469
Marketable Investments    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning balance (558) (3,500)
Other comprehensive loss before reclassifications:    
Other comprehensive income before reclassifications 166 860
Foreign currency translation (losses) gains 0 0
Income tax effect — expense 0 0
Net of tax 166 860
Total other comprehensive (loss) income, net of tax 166 860
Ending balance (392) (2,640)
Currency Translation Adjustments    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning balance (2,593) (4,624)
Other comprehensive loss before reclassifications:    
Other comprehensive income before reclassifications 0 0
Foreign currency translation (losses) gains (1,857) 403
Income tax effect — expense 4 0
Net of tax (1,853) 403
Total other comprehensive (loss) income, net of tax (1,853) 403
Ending balance (4,446) (4,221)
Total    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning balance (3,151) (8,124)
Other comprehensive loss before reclassifications:    
Other comprehensive income before reclassifications 166 860
Foreign currency translation (losses) gains (1,857) 403
Income tax effect — expense 4 0
Net of tax (1,687) 1,263
Total other comprehensive (loss) income, net of tax (1,687) 1,263
Ending balance $ (4,838) $ (6,861)
v3.24.1.u1
Income Taxes Income Taxes (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Income Tax Disclosure [Abstract]    
Provision for income taxes $ 3,624 $ 90
Effective tax rate 24.80% 1.00%
v3.24.1.u1
Net Income per Share - Basic and Diluted Earnings per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Numerator:    
Net income $ 11,002 $ 8,562
Weighted average shares used to compute net income attributable to common stockholders:    
Basic (in shares) 38,717,334 38,186,342
Potential dilutive stock-based options and awards (in shares) 670,025 889,046
Diluted (in shares) 39,387,359 39,075,388
Net income per share:    
Basic (in dollars per share) $ 0.28 $ 0.22
Diluted (in dollars per share) $ 0.28 $ 0.22
v3.24.1.u1
Net Income per Share - Antidilutive Securities (Details) - shares
shares in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Earnings Per Share [Abstract]    
Antidilutive securities excluded from the computation of earnings per share (in shares) 26 26
v3.24.1.u1
Interest and other income (expense), net (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Other Income and Expenses [Abstract]    
Interest income $ 3,293 $ 970
Interest expense (402) (416)
Other income, net (366) 90
Interest and other income, net $ 2,525 $ 644
v3.24.1.u1
Revenues - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Disaggregation of Revenue [Line Items]    
Revenue from contract with customer $ 278,655 $ 241,398
United States    
Disaggregation of Revenue [Line Items]    
Revenue from contract with customer 209,644 171,879
International    
Disaggregation of Revenue [Line Items]    
Revenue from contract with customer 69,011 69,519
Thrombectomy    
Disaggregation of Revenue [Line Items]    
Revenue from contract with customer 187,703 144,980
Embolization and Access    
Disaggregation of Revenue [Line Items]    
Revenue from contract with customer $ 90,952 $ 96,418
v3.24.1.u1
Revenues - Summary of Contract Assets and Liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]    
Contract assets $ 18,000 $ 18,000
Contract liabilities $ 7,261 $ 6,496
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