Penumbra Inc.: An Insight Into Its Margin Expansion Opportunities

Penumbra reported a solid performance in its third quarter of 2024, with total revenue of $301 million, marking an 11.1% increase year-over-year on a reported basis, and 10.9% in constant currency. The results show robust growth in the U.S. thrombectomy business, which rose by 21.2% year-over-year, driven significantly by advancements in their catheter technology, particularly with the Lightning Flash 2.0 and Lightning Bolt 7 products. Despite this robust growth in the U.S., the company faced challenges internationally, with revenues decreasing slightly by 1.9% reported due to a notable reduction in sales within China. Penumbra’s international business decline was partially offset by increases in other regions, but the challenges highlight the regional variance in Penumbra’s global strategy.