Penumbra CEO on Q4 earnings and his outlook for 2021
Adam Elsesser, Penumbra Chairman, CEO & Co-founder, join Yahoo Finance Live to breakdown the company's latest earnings report and his outlook for 2021.
Video Transcript
SEANA SMITH: Penumbra was out with earnings this week. Fourth quarter revenue up nearly 15% from a year ago at $166.9 million. The stock up just around 57% in the past year.
We want to bring in Adam Elsesser. He's Penumbra's Chairman, CEO, and Co-Founder. Adam, great to have you on the program. I'm taking a look at your numbers here. Just give us a sense of what is behind, or what was behind some of the growth that you saw last quarter, and then also just the impact that you're seeing from the pandemic.
ADAM ELSESSER: Yeah. Well, first of all, thanks for having us. We had a great quarter, really driven in large part by a product we launched in the middle of last year that dealt with removing blood clot from the vasculature-- your arms, legs, and torso. And the timing of that product coincided, really, with some of the really tragic issues we saw with some COVID patients that had developed increased blood clotting issues.
The product is an upgrade on an earlier version of our product that really allows for a much easier and safer use, or removal, of the clot in your arteries and veins. And it's just been incredibly successful. So that's one of the major reasons we continue to succeed. But we have a large portfolio of products in stroke and other areas that have driven that.
Adam, I'm curious about the products you make. Because on the website when you talk about the broad portfolio addressing medical conditions, significant clinical needs regarding neuro and vascular issues, would the majority of your products be emergency, it's-got-to-happen? It can't be delayed. It can't be elective. Is that the majority of the devices you're making?
ADAM ELSESSER: I would say the majority are. But we definitely make products that are more elective in nature for certain aneurysms and parts of the body that are scheduled. And we had seen, certainly in the earlier part of 2020, some delay in those procedures and a little bit in the beginning tail end of December and January. But for the most part, the majority of our products are used in more emergent situations, which has been a little bit different for us than some other manufacturers.
SEANA SMITH: Adam, I have to ask you, because your stock has been pretty volatile lately-- a lot of that has been due to the fact that you were targeted by Quintessential Capital Management in November. Once again, in December they released a couple of allegations against your company. One was about one of your catheters. And they followed up in a December report talking about the scientific research that your company puts forward. I'm curious just to get your response to their accusations and what you have to say for that.
ADAM ELSESSER: Listen, we have faced challenges before. We did have recalled a product, JET 7 Xtra Flex, because we couldn't ensure its safe use. But we've spoken to those allegations. Some of the other ones, we've posted on the website. They're not accurate.
And I think if you look at how we've done, and the way the broad portfolio of products and the way the markets responded to us those things, I think, are behind us. And we're looking at 2021 with a very different light. We're pretty proud of the 17 years of work that we've done to make products. And I think the market has responded to that.
ADAM SHAPIRO: We appreciate your sharing your input with us. Adam Elsesser is Penumbra's Chairman, CEO, and Co-Founder. All the best to you as we go forward.
