Penumbra, Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company achieved revenues of $301.0 million for the third quarter, marking an 11.1% increase from $270.9 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue reached $879.1 million, up 13.6% from $773.8 million year-over-year. The growth was primarily driven by a 14.0% increase in revenue from thrombectomy products, which totaled $204.1 million in Q3 2024.
Despite the revenue growth, Penumbra reported a net loss of $19.7 million for the nine months ended September 30, 2024, compared to a net income of $36.7 million for the same period in 2023. The loss was attributed to a pre-tax impairment charge of $76.9 million related to the wind down of the Immersive Healthcare business, which also incurred restructuring charges of $5.0 million in Q3 2024. The company recorded a net income of $29.5 million for Q3 2024, a substantial increase from $9.2 million in Q3 2023.
Gross profit for the third quarter of 2024 was $200.3 million, representing a gross margin of 66.5%, up from 65.6% in the prior year. However, for the nine-month period, gross margin decreased to 61.9% from 64.1%, impacted by the aforementioned inventory impairment charge.
Research and Development (R&D) expenses increased by 20.3% to $25.2 million in Q3 2024, driven by one-time costs associated with the Immersive Healthcare business wind down. Sales, General and Administrative (SG&A) expenses also rose by 11.0% to $139.7 million, primarily due to increased personnel costs and marketing expenses.
On the balance sheet, cash and cash equivalents rose significantly to $280.5 million as of September 30, 2024, compared to $167.5 million at the end of 2023. The company also initiated a share repurchase program, authorizing up to $200 million, with $100.4 million spent on repurchasing shares during the quarter.
Penumbra's strategic focus remains on developing innovative technologies for medical conditions such as ischemic stroke and venous thromboembolism. The company has ceased operations in the Immersive Healthcare segment, which has led to substantial financial adjustments and a shift in resource allocation towards its core product lines.
About Penumbra Inc
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