PENUMBRA INC, 10-Q filed on 8/5/2022
Quarterly Report
v3.22.2
Cover - shares
6 Months Ended
Jun. 30, 2022
Jul. 21, 2022
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2022  
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 $0.001 per share  
Trading Symbol PEN  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   37,888,366
Entity Central Index Key 0001321732  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q2  
Amendment Flag false  
v3.22.2
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Current assets:    
Cash and cash equivalents $ 58,234 $ 59,379
Marketable investments 146,135 195,496
Accounts receivable, net of allowance for credit losses of $862 and $2,092 at June 30, 2022 and December 31, 2021, respectively 187,389 133,940
Inventories 295,883 263,504
Prepaid expenses and other current assets 30,320 29,155
Total current assets 717,961 681,474
Property and equipment, net 63,458 58,856
Operating lease right-of-use assets 177,423 131,955
Finance lease right-of-use assets 34,743 36,276
Intangible assets, net 86,162 90,618
Goodwill 165,779 166,388
Deferred taxes 68,404 65,698
Other non-current assets 13,970 12,985
Total assets 1,327,900 1,244,250
Current liabilities:    
Accounts payable 23,096 13,421
Accrued liabilities 111,405 99,796
Current operating lease liabilities 9,297 8,267
Current finance lease liabilities 1,806 1,713
Total current liabilities 145,604 123,197
Non-current operating lease liabilities 183,155 137,045
Non-current finance lease liabilities 25,654 26,523
Other non-current liabilities 3,472 3,558
Total liabilities 357,885 290,323
Commitments and contingencies
Stockholders’ equity:    
Common stock 38 37
Additional paid-in capital 937,837 910,614
Accumulated other comprehensive (loss) income (10,158) (2,630)
Retained earnings 42,298 45,906
Total stockholders’ equity 970,015 953,927
Total liabilities and stockholders’ equity $ 1,327,900 $ 1,244,250
v3.22.2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Statement of Financial Position [Abstract]    
Allowance for credit losses $ 862 $ 2,092
v3.22.2
Condensed Consolidated Statements of Operations - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Income Statement [Abstract]        
Revenue $ 208,344 $ 184,258 $ 412,239 $ 353,462
Cost of revenue 74,309 65,572 150,786 123,439
Gross profit 134,035 118,686 261,453 230,023
Operating expenses:        
Research and development 19,559 17,738 40,123 35,814
Sales, general and administrative 114,615 90,636 225,515 170,434
Total operating expenses 134,174 108,374 265,638 206,248
(Loss) income from operations (139) 10,312 (4,185) 23,775
Interest (expense) income, net (72) 299 (119) 779
Other expense, net (956) (408) (1,967) (1,884)
(Loss) income before income taxes (1,167) 10,203 (6,271) 22,670
Provision for (benefit from) income taxes 2,520 1,904 (2,663) 3,445
Consolidated net (loss) income (3,687) 8,299 (3,608) 19,225
Net loss attributable to non-controlling interest 0 (932) 0 (1,842)
Net (loss) income attributable to Penumbra, Inc. $ (3,687) $ 9,231 $ (3,608) $ 21,067
Net (loss) income attributable to Penumbra, Inc. per share:        
Basic (in dollars per share) $ (0.10) $ 0.25 $ (0.10) $ 0.58
Diluted (in dollars per share) $ (0.10) $ 0.25 $ (0.10) $ 0.56
Weighted average shares outstanding:        
Basic (in shares) 37,767,519 36,523,011 37,707,156 36,489,548
Diluted (in shares) 37,767,519 37,582,348 37,707,156 37,564,881
v3.22.2
Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Statement of Comprehensive Income [Abstract]        
Consolidated net (loss) income $ (3,687) $ 8,299 $ (3,608) $ 19,225
Other comprehensive (loss) income, net of tax:        
Foreign currency translation adjustments, net of tax (3,333) 863 (4,201) (1,832)
Net change in unrealized losses on available-for-sale securities, net of tax (853) (109) (3,327) (380)
Total other comprehensive (loss) income, net of tax (4,186) 754 (7,528) (2,212)
Consolidated comprehensive (loss) income (7,873) 9,053 (11,136) 17,013
Net loss attributable to non-controlling interest 0 (932) 0 (1,842)
Comprehensive (loss) income attributable to Penumbra, Inc. $ (7,873) $ 9,985 $ (11,136) $ 18,855
v3.22.2
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)
Total Penumbra, Inc. Stockholders’ Equity
Non-controlling Interest
Beginning balance (in shares) at Dec. 31, 2020   36,414,732          
Beginning balance at Dec. 31, 2020 $ 637,788 $ 36 $ 598,299 $ 2,541 $ 40,622 $ 641,498 $ (3,710)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Issuance of common stock (in shares)   79,080          
Issuance of common stock 666   666     666  
Shares held for tax withholdings (in shares)   (11,955)          
Shares held for tax withholdings (3,036)   (3,036)     (3,036)  
Stock-based compensation 7,093   7,093     7,093  
Other comprehensive income (loss) (2,966)     (2,966)   (2,966)  
Net income (loss)         11,836 11,836  
Net loss attributable to non-controlling interest             (910)
Ending balance (in shares) at Mar. 31, 2021   36,481,857          
Ending balance at Mar. 31, 2021 650,471 $ 36 603,022 (425) 52,458 655,091 (4,620)
Beginning balance (in shares) at Dec. 31, 2020   36,414,732          
Beginning balance at Dec. 31, 2020 637,788 $ 36 598,299 2,541 40,622 641,498 (3,710)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Other comprehensive income (loss) (2,212)     (2,212)      
Net income (loss) 21,067            
Net loss attributable to non-controlling interest (1,842)            
Ending balance (in shares) at Jun. 30, 2021   36,569,602          
Ending balance at Jun. 30, 2021 673,376 $ 36 616,874 329 61,689 678,928 (5,552)
Beginning balance (in shares) at Mar. 31, 2021   36,481,857          
Beginning balance at Mar. 31, 2021 650,471 $ 36 603,022 (425) 52,458 655,091 (4,620)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Issuance of common stock (in shares)   67,547          
Issuance of common stock 312   312     312  
Issuance of common stock under employee stock purchase plan (in shares)   35,221          
Issuance of common stock under employee stock purchase plan 7,354   7,354     7,354  
Shares held for tax withholdings (in shares)   (15,023)          
Shares held for tax withholdings (3,952)   (3,952)     (3,952)  
Stock-based compensation 10,138   10,138     10,138  
Other comprehensive income (loss) 754     754   754  
Net income (loss) 9,231       9,231 9,231  
Net loss attributable to non-controlling interest (932)           (932)
Ending balance (in shares) at Jun. 30, 2021   36,569,602          
Ending balance at Jun. 30, 2021 673,376 $ 36 616,874 329 61,689 678,928 (5,552)
Beginning balance (in shares) at Dec. 31, 2021   37,578,483          
Beginning balance at Dec. 31, 2021 953,927 $ 37 910,614 (2,630) 45,906 953,927 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Issuance of common stock (in shares)   103,984          
Issuance of common stock 1,103 $ 1 1,102     1,103  
Shares held for tax withholdings (in shares)   (14,243)          
Shares held for tax withholdings (3,181)   (3,181)     (3,181)  
Stock-based compensation 10,716   10,716     10,716  
Other comprehensive income (loss) (3,342)     (3,342)   (3,342)  
Net income (loss)         79 79  
Ending balance (in shares) at Mar. 31, 2022   37,668,224          
Ending balance at Mar. 31, 2022 959,302 $ 38 919,251 (5,972) 45,985 959,302 0
Beginning balance (in shares) at Dec. 31, 2021   37,578,483          
Beginning balance at Dec. 31, 2021 953,927 $ 37 910,614 (2,630) 45,906 953,927 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Other comprehensive income (loss) (7,528)     (7,528)      
Net income (loss) (3,608)            
Net loss attributable to non-controlling interest 0            
Ending balance (in shares) at Jun. 30, 2022   37,880,107          
Ending balance at Jun. 30, 2022 970,015 $ 38 937,837 (10,158) 42,298 970,015 0
Beginning balance (in shares) at Mar. 31, 2022   37,668,224          
Beginning balance at Mar. 31, 2022 959,302 $ 38 919,251 (5,972) 45,985 959,302 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Issuance of common stock (in shares)   158,735          
Issuance of common stock 3,466 $ 0 3,466     3,466 0
Issuance of common stock under employee stock purchase plan (in shares)   66,098          
Issuance of common stock under employee stock purchase plan 7,998   7,998     7,998  
Shares held for tax withholdings (in shares)   (12,950)          
Shares held for tax withholdings (1,900)   (1,900)     (1,900)  
Stock-based compensation 9,022   9,022     9,022  
Other comprehensive income (loss) (4,186)     (4,186)   (4,186)  
Net income (loss) (3,687)       (3,687) (3,687)  
Net loss attributable to non-controlling interest 0           0
Ending balance (in shares) at Jun. 30, 2022   37,880,107          
Ending balance at Jun. 30, 2022 $ 970,015 $ 38 $ 937,837 $ (10,158) $ 42,298 $ 970,015 $ 0
v3.22.2
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Statement of Cash Flows [Abstract]    
Consolidated net (loss) income $ (3,608) $ 19,225
Adjustments to reconcile consolidated net (loss) income to net cash used in operating activities:    
Depreciation and amortization 11,655 7,022
Stock-based compensation 17,679 16,198
Inventory write-downs 1,573 1,951
Deferred taxes (2,741) 2,570
Other (749) 1,309
Changes in operating assets and liabilities:    
Accounts receivable (54,299) (22,898)
Inventories (36,051) (41,543)
Prepaid expenses and other current and non-current assets (2,460) (5,843)
Accounts payable 9,024 (689)
Accrued expenses and other non-current liabilities 15,658 5,020
Proceeds from lease incentives 230 0
Net cash provided by (used in) operating activities (44,089) (17,678)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchases of marketable investments 0 (32,939)
Proceeds from sales of marketable investments 1,180 2,000
Proceeds from maturities of marketable investments 44,579 67,810
Purchases of property and equipment (9,388) (7,286)
Other 0 (150)
Net cash provided by (used in) investing activities 36,371 29,435
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from exercises of stock options 4,568 978
Proceeds from issuance of stock under employee stock purchase plan 7,998 7,354
Payment of employee taxes related to vested stock (5,081) (6,988)
Payments of finance lease obligations (858) (692)
Other (137) (93)
Net cash provided by financing activities 6,490 559
Effect of foreign exchange rate changes on cash and cash equivalents 83 291
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (1,145) 12,607
CASH AND CASH EQUIVALENTS—Beginning of period 59,379 69,670
CASH AND CASH EQUIVALENTS—End of period 58,234 82,277
NONCASH INVESTING AND FINANCING ACTIVITIES:    
Right-of-use assets obtained in exchange for lease obligations 51,191 54,444
Right-of-use assets obtained in exchange for finance lease obligations 89 520
Purchase of property and equipment funded through accounts payable and accrued liabilities 3,059 2,236
SUPPLEMENTAL CASH FLOW INFORMATION:    
Cash paid for amounts included in the measurement of operating lease liabilities 8,458 3,914
Cash paid for income taxes $ 2,157 $ 689
v3.22.2
Organization and Description of Business
6 Months Ended
Jun. 30, 2022
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.
v3.22.2
Summary of Significant Accounting Policies
6 Months Ended
Jun. 30, 2022
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 June 30, 2022, the condensed consolidated statements of operations, the condensed consolidated statements of comprehensive (loss) income, and the condensed consolidated statements of stockholders’ equity for the three and six months ended June 30, 2022 and 2021, and the condensed consolidated statements of cash flows for the six months ended June 30, 2022 and 2021 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, 2021 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 June 30, 2022, the results of its operations for the three and six months ended June 30, 2022 and 2021, the changes in comprehensive income (loss) and stockholders’ equity for the three and six months ended June 30, 2022 and 2021, and the cash flows for the six months ended June 30, 2022 and 2021. The results for the three and six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022 or for any other future annual or interim period.
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 year ended December 31, 2021, included in the Company’s Annual Report on Form 10-K. There have been no changes to the Company’s significant accounting policies during the six months ended June 30, 2022, 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, 2021.
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, operating and financing lease right-of-use (“ROU”) assets and liabilities, income taxes, contingent consideration and other contingencies, 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.
v3.22.2
Investments and Fair Value of Financial Instruments
6 Months Ended
Jun. 30, 2022
Fair Value Disclosures [Abstract]  
Investments and Fair Value of Financial Instruments
3. Investments and Fair Value of Financial Instruments
Marketable Investments
The Company’s marketable investments have been classified and accounted for as available-for-sale. The following table presents the Company’s marketable investments as of June 30, 2022 and December 31, 2021 (in thousands):
June 30, 2022
Securities with net gains or losses in accumulated other comprehensive income (loss)    
Amortized CostGross Unrealized GainsGross Unrealized LossesAllowance
 for
 Credit Loss
Fair Value
Commercial paper $5,998 $— $(23)$— $5,975 
U.S. treasury14,473 — (470)— 14,003 
U.S. agency and government sponsored securities8,502 — (189)— 8,313 
U.S. states and municipalities30,130 — (655)— 29,475 
Corporate bonds90,952 — (2,583)— 88,369 
Total$150,055 $— $(3,920)$— $146,135 
December 31, 2021
Securities with net gains or losses in accumulated other comprehensive income (loss)
Amortized CostGross Unrealized GainsGross Unrealized LossesAllowance
 for
 Credit Loss
Fair Value
Commercial paper $20,286 $— $(10)$— $20,276 
U.S. treasury14,464 — (77)— 14,387 
U.S. agency and government sponsored securities11,553 (19)— 11,535 
U.S. states and municipalities39,436 39 (89)— 39,386 
Corporate bonds110,354 49 (491)— 109,912 
Total$196,093 $89 $(686)$— $195,496 
As of June 30, 2022, the total amortized cost basis of the Company’s impaired available-for-sale securities exceeded its fair value by $3.9 million, which was primarily attributable to widening credit spreads and rising interest rates since purchase. The Company reviewed its impaired available-for-sale securities and concluded that the decline in fair value was not related to credit losses and that it is more likely than not that the entire amortized cost of each impaired security will be recoverable before the Company is required to sell them or when the security matures. Accordingly, during the three and six months ended June 30, 2022, no allowance for credit losses was recorded and instead the unrealized losses are reported as a component of accumulated other comprehensive (loss) income.
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 twelve months or for twelve months or more as of June 30, 2022 and December 31, 2021 (in thousands):
June 30, 2022
Less than 12 months12 months or moreTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Commercial paper$5,975 $(23)$— $— $5,975 $(23)
U.S. treasury14,003 (470)— — 14,003 (470)
U.S. agency and government sponsored securities8,313 (189)— — 8,313 (189)
U.S. states and municipalities26,953 (577)1,522 (78)28,475 (655)
Corporate bonds81,263 (2,322)7,106 (261)88,369 (2,583)
Total$136,507 $(3,581)$8,628 $(339)$145,135 $(3,920)
December 31, 2021
Less than 12 months12 months or moreTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Commercial paper$16,977 $(10)$— $— $16,977 $(10)
U.S. treasury14,387 (77)— — 14,387 (77)
U.S. agency and government sponsored securities6,985 (19)— — 6,985 (19)
U.S. states and municipalities21,924 (89)— — 21,924 (89)
Corporate bonds85,513 (491)— — 85,513 (491)
Total$145,786 $(686)$— $— $145,786 $(686)
The following table presents the contractual maturities of the Company’s marketable investments as of June 30, 2022 (in thousands):
June 30, 2022
 Amortized CostFair Value
Due in less than one year$51,834 $51,254 
Due in one to five years98,221 94,881 
Total$150,055 $146,135 
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 measurement 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 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.
The Company did not hold any Level 3 marketable investments as of June 30, 2022 or December 31, 2021. During the six months ended June 30, 2022 and 2021, 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 June 30, 2022 or December 31, 2021.
The following tables set forth the Company’s financial assets measured at fair value by level within the fair value hierarchy as of June 30, 2022 and December 31, 2021 (in thousands):
 As of June 30, 2022
 Level 1Level 2Level 3Fair Value
Financial Assets
Cash equivalents:
Commercial paper$— $4,389 $— $4,389 
Money market funds14,840 — — 14,840 
Marketable investments:
Commercial paper— 5,975 — 5,975 
U.S. treasury14,003 — — 14,003 
U.S. agency and government sponsored securities— 8,313 — 8,313 
U.S. states and municipalities— 29,475 — 29,475 
Corporate bonds— 88,369 — 88,369 
Total$28,843 $136,521 $— $165,364 
 As of December 31, 2021
 Level 1Level 2Level 3Fair Value
Financial Assets
Cash equivalents:
Money market funds$10,509 $— $— $10,509 
Marketable investments:
Commercial paper— 20,276 — 20,276 
U.S. treasury14,387 — — 14,387 
U.S. agency and government sponsored securities— 11,535 — 11,535 
U.S. states and municipalities— 39,386 — 39,386 
Corporate bonds— 109,912 — 109,912 
Total$24,896 $181,109 $— $206,005 
v3.22.2
Balance Sheet Components
6 Months Ended
Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Components
4. Balance Sheet Components
Inventories
The following table shows the components of inventories as of June 30, 2022 and December 31, 2021 (in thousands):
 June 30, 2022December 31, 2021
Raw materials$75,484 $68,374 
Work in process33,902 18,678 
Finished goods186,497 176,452 
Inventories$295,883 $263,504 
Accrued Liabilities
The following table shows the components of accrued liabilities as of June 30, 2022 and December 31, 2021 (in thousands):
 June 30, 2022December 31, 2021
Payroll and employee-related cost$58,388 $60,015 
Accrued expenses19,900 12,245 
Deferred revenue9,959 5,671 
Other accrued liabilities23,158 21,865 
Total accrued liabilities$111,405 $99,796 
The following table shows the changes in the Company’s estimated product warranty accrual, included in accrued liabilities, for the six months ended June 30, 2022 and twelve months ended December 31, 2021, respectively (in thousands):
 June 30, 2022December 31, 2021
Balance at the beginning of the period$4,310 $2,896 
Accruals of warranties issued1,407 2,973 
Settlements of warranty claims(771)(1,559)
Balance at the end of the period$4,946 $4,310 
v3.22.2
Business Combinations
6 Months Ended
Jun. 30, 2022
Business Combination and Asset Acquisition [Abstract]  
Business Combinations
5. Business Combinations
Acquisition of Sixense Enterprises Inc.
Transaction Overview
On October 1, 2021 (the “Closing Date”), the Company closed the acquisition of Sixense Enterprises Inc. (“Sixense”) pursuant to the Agreement and Plan of Merger, dated September 17, 2021 (the “Merger Agreement”), among the Company, Sixense, Seychelles Merger Corporation, a wholly owned subsidiary of the Company, and a stockholders’ agent (the “Merger”). Sixense, a privately held company, specializes in enterprise use of virtual reality hardware and software and has been an integral partner on the development of the Company’s REAL Immersive System portfolio. The Merger allows the Company to streamline its efforts and collaborate more closely on its immersive healthcare offerings.
The Company and Sixense formed a joint venture, MVI Health Inc. (“MVI”), in 2017 for the purpose of exploring healthcare applications of virtual reality technology. At the time of MVI’s formation, the Company contributed cash and in-kind services to MVI and Sixense contributed an exclusive license to use its technology for healthcare applications, each for a 50% equity interest in MVI. In 2018, the Company acquired 40% of the outstanding shares of MVI from Sixense and consolidated the financial results of MVI into the accompanying consolidated financial statements, with the amounts attributable to the non-controlling interest classified separately. As of the Closing Date, the Company and Sixense owned a 90% and 10% equity interest in MVI, respectively.
As a result of the Merger, Sixense became a wholly owned subsidiary of the Company and the Company acquired, among other things, the remaining 10% equity interest in MVI held by Sixense.
The Company accounted for the acquired assets and liabilities assumed from Sixense in accordance with ASC 805 and for its change in ownership interest in MVI as an equity transaction in accordance with ASC 810. The carrying amount of the noncontrolling interest was adjusted to zero, and the difference between the acquisition date fair value of the equity interest acquired of $4.2 million and its carrying amount of $(6.2) million was recognized within additional paid in capital.
Fair Value of Consideration Transferred
The following table summarizes the Closing Date fair value of the consideration transferred (in thousands):
Fair value of common stock issued(1)
$174,133 
Fair value of replacement stock options(2)
80,693 
Consideration for settlement of pre-existing liabilities due to Sixense(3)
(3,810)
Total purchase price$251,016 
(1) The fair value of the 661,877 shares of common stock issued as part of consideration transferred was determined based on the acquisition date closing market price of the Company’s common stock of $263.09.
(2) Per ASC 805, the replacement of stock options or other share-based payment awards in conjunction with a business combination represents a modification of share-based payment awards that must be accounted for in accordance with ASC 718. As a result of the Company’s obligation to issue replacement awards, a portion of the fair-value-based measure of replacement awards is included in measuring the purchase consideration transferred in the business combination. To determine the portion of the replacement awards that is part of the purchase consideration, the Company measured the fair value of both the replacement awards and the historical awards as of the Closing Date, in accordance with ASC 718. The fair value of the replacement awards, whether vested or unvested, was included in the purchase consideration to the extent that pre-acquisition services had been rendered. The fair value of replacement stock options assumed for which pre-acquisition services were rendered of $80.7 million was allocated to the purchase consideration and $25.8 million was recognized immediately in the post-combination financial statements during the three months ended December 31, 2021, as pre-acquisition services were not rendered but the vesting of all stock options was accelerated in connection with the Merger.
(3) In the connection with the Merger, the Company effectively settled pre-existing liabilities due to or on behalf of Sixense.
Fair Value of Consideration Transferred
The preliminary allocation of the purchase price was based upon a third party valuation and the Company’s estimates and assumptions are subject to change within the measurement period (generally one year from the Closing Date).
The following table presents the preliminary allocation of the purchase price for Sixense as of June 30, 2022 (in thousands):
Acquisition-Date Fair ValueEstimated Useful Life of Finite-Lived Intangible Assets
Tangible assets acquired and (liabilities) assumed:
Cash and cash equivalents$2,919 
Prepaid expenses and other current and non-current assets2,063 
Deferred tax assets20,678 
Deferred tax liabilities(19,398)
Accrued liabilities and other current liabilities(1,341)
Intangible assets acquired:
Developed technology62,466 8.75 years
In-process research and development20,823 
Net assets acquired88,210 
Fair value of subsidiary stock indirectly acquired through the Merger4,161 
Total net assets acquired92,371 
Goodwill158,645 
Total purchase price$251,016 
Further adjustments may be necessary as additional information related to the fair values of assets acquired and liabilities assumed is assessed during the measurement period, which may be up to one year from the acquisition date. The Company will reflect measurement period adjustments, if any, in the period in which the adjustments are recognized with the corresponding offset to goodwill. Any adjustments required after the measurement period are recorded in the consolidated statement of operations. No measurement period adjustments were recorded during the three and six months ended June 30, 2022.
The intangible assets acquired and the fair value of the privately-held subsidiary stock indirectly acquired are Level 3 fair value measurements for which fair value is derived from valuations using inputs that are unobservable and significant to the overall fair value measurement.
v3.22.2
Intangible Assets
6 Months Ended
Jun. 30, 2022
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Intangible Assets
6. Intangible Assets
Acquired Intangible Assets
The following tables present details of the Company’s acquired finite-lived intangible assets as of June 30, 2022 and December 31, 2021 (in thousands, except weighted-average amortization period):
As of June 30, 2022Weighted-Average Amortization PeriodGross Carrying AmountAccumulated AmortizationNet
Finite-lived intangible assets:
Developed technology8.8 years$62,466 $(5,353)$57,113 
Customer relationships15.0 years$6,230 $(2,077)$4,153 
Trade secrets and processes20.0 years5,256 (1,183)4,073 
Other5.0 years1,606 (1,606)— 
Total intangible assets subject to amortization9.8 years$75,558 $(10,219)$65,339 
Indefinite-lived intangible assets:
In-process research and development$20,823 $— $20,823 
Total intangible assets$96,381 $(10,219)$86,162 
As of December 31, 2021Weighted-Average
Amortization Period
Gross Carrying AmountAccumulated AmortizationNet
Finite-lived intangible assets:
Developed technology8.8 years$62,466 $(1,784)$60,682 
Customer relationships15.0 years$6,762 $(2,029)$4,733 
Trade secrets and processes20.0 years5,256 (1,051)4,205 
Other5.0 years1,744 (1,569)175 
Total intangible assets subject to amortization9.8 years$76,228 $(6,433)$69,795 
Indefinite-lived intangible assets:
In-process research and development20,823 — 20,823 
Total intangible assets$97,051 $(6,433)$90,618 
The customer relationships and intangible assets classified as “Other” subject to amortization relate to the acquisition of Crossmed S.p.A., the Company’s wholly-owned subsidiary in Italy, during the third quarter of 2017. The gross carrying amount and accumulated amortization of these intangible assets are subject to foreign currency translation effects.
The Company reviews indefinite-lived intangible assets for impairment annually during the fourth quarter or more frequently if events or circumstances indicate that an impairment loss may have occurred. The Company determined that there were no impairment indicators as of June 30, 2022.
The following table presents the amortization expense recorded related to the Company’s finite-lived intangible assets for the three and six months ended June 30, 2022 and 2021 (in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2022202120222021
Cost of revenue$66 $66 $132 $131 
Sales, general and administrative1,972 212 3,954 425 
Total$2,038 $278 $4,086 $556 
v3.22.2
Goodwill
6 Months Ended
Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill
7. Goodwill
The following table presents the changes in goodwill during the six months ended June 30, 2022 (in thousands):
Total Company
Balance as of December 31, 2021$166,388 
Foreign currency translation (609)
Balance as of June 30, 2022$165,779 
Goodwill Impairment Review
The Company reviews goodwill for impairment annually during the fourth quarter 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 June 30, 2022.
v3.22.2
Debt
6 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
Indebtedness
8. 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 is secured and provides 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 was set to mature on April 23, 2021. The Company entered into an amended one-year 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 during the three months ended March 31, 2021, which extended the maturity date from April 23, 2021 to February 21, 2022 and had substantially the same terms and conditions as the prior credit agreement with certain changes including the exclusion of certain one-time charges and expenses incurred during the fiscal quarters ended September 30, 2020 and December 31, 2020 from the calculation of the financial covenants, reductions in interest rate floors applicable to revolving loans and other changes to borrowing mechanics under the Credit Agreement.
In the first quarter of 2022, the Company entered into a further amended one-year 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 amended Credit Agreement extended the maturity date from February 21, 2022 to February 17, 2023 and has substantially the same terms and conditions as the prior credit agreement with certain changes to the reference benchmark interest rates, applicable margins and borrowing mechanics under the Credit Agreement, having the overall effect of lowering the interest rates payable by the Company on amounts borrowed under the Credit Agreement, and a reduction of the commitment fee payable on the average daily unused amount under the Credit Agreement to 0.25% per annum.
The Credit Agreement requires the Company to maintain a minimum fixed charge coverage ratio and to not exceed a maximum leverage ratio. As of June 30, 2022, the Company was in compliance with these requirements.
As of June 30, 2022 and December 31, 2021, there were no borrowings outstanding under the amended Credit Agreement.
v3.22.2
Leases
6 Months Ended
Jun. 30, 2022
Leases [Abstract]  
Leases
9. Leases
Lease Overview
As of December 31, 2021 and June 30, 2022, the Company’s contracts that contained a lease consisted of real estate, equipment and vehicle leases.
The Company leases real estate for office and warehouse space under non-cancelable operating and finance leases that expire at various dates through 2036, subject to the Company’s option to renew certain leases for an additional five to 15 years. The Company also leases other equipment and vehicles under noncancelable operating and finance leases that expire at various dates through 2026.
The following table presents the components of the Company’s lease cost, lease term and discount rate during the three and six months ended June 30, 2022 and 2021 (in thousands, except years and percentages):
Three Months EndedSix Months Ended
June 30, 2022June 30, 2021June 30, 2022June 30, 2021
Lease Cost
Operating lease cost$5,034 $1,959 $9,916 $3,879 
Finance lease cost:
Amortization of right-of-use assets
810 760 1,616 1,506 
Interest on lease liabilities361 374 723 745 
Variable lease cost(1)
2,568 1,356 4,931 2,826 
Total lease costs$8,773 $4,449 $17,186 $8,956 
Weighted Average Remaining Lease Term
Operating leases13.8 years12.1 years
Finance leases11.8 years12.9 years
Weighted Average Discount Rate
Operating leases4.61 %5.33 %
Finance leases5.30 %5.34 %
(1) Variable lease costs represent payments that are dependent on usage, a rate or index. Variable lease cost primarily relates to common area maintenance charges for the Company’s real estate leases.
During the third quarter of 2021, the Company signed a lease for approximately thirteen years for additional space located at 620 Roseville Parkway, Roseville, California (the “620 Roseville Parkway Lease”). Per the terms of the lease, improvements will be constructed and permanently affixed to the property in two phases. The first phase (“Phase 1”) of the 620 Roseville Parkway Lease commenced once the Phase 1 premises were made ready and available for their intended use, which occurred during the first quarter of 2022. The Company determined that the 620 Roseville Parkway Lease is a non-cancelable operating lease which will expire in 2035. Upon completion of the second phase (“Phase 2”) of improvements, the Phase 2 premises will be added to the 620 Roseville Parkway Lease. Phase 2 is not anticipated to be completed in 2022.
Additionally, during the three and six months ended June 30, 2022, the Company modified existing leases for certain properties that resulted in an increase of right-of-use (“ROU”) assets in exchange for operating leases liabilities.
The following table is a schedule, by years, of maturities of the Company's operating and finance lease liabilities as of June 30, 2022 (in thousands):
Operating Lease PaymentsFinance Lease Payments
2022 (excluding the six months ended June 30, 2022)$9,046 $1,591 
202317,807 3,226 
202417,682 3,242 
202517,527 3,170 
202617,673 2,803 
Thereafter186,197 23,518 
Total undiscounted lease payments
265,932 37,550 
Less imputed interest(73,480)(10,090)
Present value of lease liabilities$192,452 $27,460 
Supplemental cash flow information related to leases during the six months ended June 30, 2022 and 2021 are as follows (in thousands):
Six Months Ended
June 30, 2022June 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$8,458 $3,914 
Financing cash flows from finance leases$858 $692 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$51,191 $54,444 
Finance leases$89 $520 
Leases
9. Leases
Lease Overview
As of December 31, 2021 and June 30, 2022, the Company’s contracts that contained a lease consisted of real estate, equipment and vehicle leases.
The Company leases real estate for office and warehouse space under non-cancelable operating and finance leases that expire at various dates through 2036, subject to the Company’s option to renew certain leases for an additional five to 15 years. The Company also leases other equipment and vehicles under noncancelable operating and finance leases that expire at various dates through 2026.
The following table presents the components of the Company’s lease cost, lease term and discount rate during the three and six months ended June 30, 2022 and 2021 (in thousands, except years and percentages):
Three Months EndedSix Months Ended
June 30, 2022June 30, 2021June 30, 2022June 30, 2021
Lease Cost
Operating lease cost$5,034 $1,959 $9,916 $3,879 
Finance lease cost:
Amortization of right-of-use assets
810 760 1,616 1,506 
Interest on lease liabilities361 374 723 745 
Variable lease cost(1)
2,568 1,356 4,931 2,826 
Total lease costs$8,773 $4,449 $17,186 $8,956 
Weighted Average Remaining Lease Term
Operating leases13.8 years12.1 years
Finance leases11.8 years12.9 years
Weighted Average Discount Rate
Operating leases4.61 %5.33 %
Finance leases5.30 %5.34 %
(1) Variable lease costs represent payments that are dependent on usage, a rate or index. Variable lease cost primarily relates to common area maintenance charges for the Company’s real estate leases.
During the third quarter of 2021, the Company signed a lease for approximately thirteen years for additional space located at 620 Roseville Parkway, Roseville, California (the “620 Roseville Parkway Lease”). Per the terms of the lease, improvements will be constructed and permanently affixed to the property in two phases. The first phase (“Phase 1”) of the 620 Roseville Parkway Lease commenced once the Phase 1 premises were made ready and available for their intended use, which occurred during the first quarter of 2022. The Company determined that the 620 Roseville Parkway Lease is a non-cancelable operating lease which will expire in 2035. Upon completion of the second phase (“Phase 2”) of improvements, the Phase 2 premises will be added to the 620 Roseville Parkway Lease. Phase 2 is not anticipated to be completed in 2022.
Additionally, during the three and six months ended June 30, 2022, the Company modified existing leases for certain properties that resulted in an increase of right-of-use (“ROU”) assets in exchange for operating leases liabilities.
The following table is a schedule, by years, of maturities of the Company's operating and finance lease liabilities as of June 30, 2022 (in thousands):
Operating Lease PaymentsFinance Lease Payments
2022 (excluding the six months ended June 30, 2022)$9,046 $1,591 
202317,807 3,226 
202417,682 3,242 
202517,527 3,170 
202617,673 2,803 
Thereafter186,197 23,518 
Total undiscounted lease payments
265,932 37,550 
Less imputed interest(73,480)(10,090)
Present value of lease liabilities$192,452 $27,460 
Supplemental cash flow information related to leases during the six months ended June 30, 2022 and 2021 are as follows (in thousands):
Six Months Ended
June 30, 2022June 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$8,458 $3,914 
Financing cash flows from finance leases$858 $692 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$51,191 $54,444 
Finance leases$89 $520 
v3.22.2
Commitments and Contingencies
6 Months Ended
Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
10. 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. 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. As of both June 30, 2022 and December 31, 2021, the amended license agreement required minimum quarterly royalty payments of $0.3 million. Unless terminated earlier, the term of the amended license agreement shall expire June 30, 2029.
In April 2012, the Company entered into an agreement that requires the Company to pay, on a quarterly basis, a 5% royalty on sales of products covered under applicable patents. The first commercial sale of covered products occurred in April 2014. Unless terminated earlier, the royalty term for each applicable product shall continue for fifteen years following the first commercial sale of such patented product, or when the applicable patent covering such product has expired, whichever is sooner.
Royalty expense included in cost of revenue for the three months ended June 30, 2022 and 2021 was $0.6 million and $0.6 million, respectively, and for the six months ended June 30, 2022 and 2021, was $1.2 million and $1.1 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 other claims and assessments in the ordinary course of business. The Company is not currently a party to any such litigation matter that, individually or in the aggregate, is expected to have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows.
v3.22.2
Stockholder's Equity
6 Months Ended
Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Stockholder's Equity
11. Stockholders’ Equity
Equity Incentive Plans
Stock Options
Activity of stock options under the Company’s 2005 Stock Plan, 2011 Equity Incentive Plan and Amended and Restated 2014 Equity Incentive Plan (collectively, the "Plans") during the six months ended June 30, 2022 is set forth below:
Number of SharesWeighted-Average
Exercise Price
Balance at December 31, 20211,141,814 $27.02 
Granted10,120 197.74 
Exercised(187,856)24.32 
Canceled/Forfeited(1,000)22.04 
Balance at June 30, 2022963,078 29.35 
Restricted Stock Units
Activity of unvested restricted stock units under the Plans during the six months ended June 30, 2022 is set forth below: 
Number of SharesWeighted -Average
Grant Date Fair Value
Unvested at December 31, 2021409,482 $210.41 
Granted146,540 187.06 
Released/Vested (74,863)176.49 
Canceled/Forfeited(15,712)223.95 
Unvested at June 30, 2022465,447 208.05 
As of June 30, 2022, 440,842 restricted stock units are expected to vest.
Stock-based Compensation
The following table sets forth the stock-based compensation expense included in the Company’s condensed consolidated statements of operations for the three and six months ended June 30, 2022 and 2021 (in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2022202120222021
Cost of revenue$880 $543 $1,736 $1,341 
Research and development1,514 1,188 2,900 2,250 
Sales, general and administrative6,392 8,072 13,043 12,607 
Total$8,786 $9,803 $17,679 $16,198 
As of June 30, 2022, total unrecognized compensation cost was $76.5 million related to unvested share-based compensation arrangements which is expected to be recognized over a weighted average period of 3.0 years.
The total stock-based compensation cost capitalized in inventory was $2.0 million and $1.8 million as of June 30, 2022 and December 31, 2021, respectively.
v3.22.2
Accumulated Other Comprehensive Loss
6 Months Ended
Jun. 30, 2022
Equity [Abstract]  
Accumulated Other Comprehensive (Loss) Income
12. Accumulated Other Comprehensive (Loss) Income
Other comprehensive (loss) income consists of two components: unrealized gains or losses on the Company’s available-for-sale marketable investments and gains or losses from foreign currency translation adjustments. Until realized and reported as a component of consolidated net (loss) income, these comprehensive (loss) income items accumulate and are included within accumulated other comprehensive (loss) income. Unrealized gains and losses on the Company’s marketable investments are reclassified from accumulated other comprehensive (loss) income into earnings when realized upon sale, and are determined
based on specific identification of securities sold. Gains and losses from the translation of assets and liabilities denominated in non-U.S. dollar functional currencies are included in accumulated other comprehensive (loss) income.
The following table summarizes the changes in the accumulated balances during the period and includes information regarding the manner in which the reclassifications out of accumulated other comprehensive (loss) income into earnings affect the Company’s condensed consolidated statements of operations and condensed consolidated statements of comprehensive (loss) income (in thousands):    
Three Months Ended June 30, 2022Three Months Ended June 30, 2021
 Marketable
Investments
 Currency Translation
Adjustments
 Total Marketable
Investments
 Currency Translation
Adjustments
 Total
Balance, beginning of the period$(3,069)$(2,903)$(5,972)$376 $(801)$(425)
Other comprehensive (loss) income before reclassifications:
Unrealized (loss) — marketable investments(853)— (853)(142)— (142)
Foreign currency translation (losses) gains — (3,333)(3,333)— 863 863 
Income tax effect — expense— — — 33 — 33 
Net of tax(853)(3,333)(4,186)(109)863 754 
Net current-year other comprehensive (loss) income(853)(3,333)(4,186)(109)863 754 
Balance, end of the period$(3,922)$(6,236)$(10,158)$267 $62 $329 

Six Months Ended June 30, 2022Six Months Ended June 30, 2021
Marketable
Investments
Currency Translation
Adjustments
TotalMarketable
Investments
Currency Translation
Adjustments
Total
Balance at beginning of the period$(595)$(2,035)$(2,630)$647 $1,894 $2,541 
Other comprehensive (loss) income before reclassifications:
Unrealized (loss) gain — marketable investments(3,327)— (3,327)(495)— (495)
Foreign currency translation gains (losses)— (4,201)(4,201)— (1,832)(1,832)
Income tax effect — expense— — — 115 — 115 
Net of tax(3,327)(4,201)(7,528)(380)(1,832)(2,212)
Net current-year other comprehensive (loss) income(3,327)(4,201)(7,528)(380)(1,832)(2,212)
Balance at end of the period(3,922)(6,236)(10,158)267 62 329 
v3.22.2
Income Taxes
6 Months Ended
Jun. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes
13. 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.
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 for the three months ended June 30, 2022 was $2.5 million, which was primarily due to tax deficiencies (shortfalls) expenses from stock-based compensation attributable to its U.S. jurisdiction as a result of stock price fluctuation, offset by tax benefits attributable to its worldwide losses. The Company’s provision for income taxes for the three months ended June 30, 2021 was $1.9 million, which was primarily due to tax expenses attributable to its worldwide profits, offset by excess tax benefits from stock-based compensation attributable to its U.S. jurisdiction.

The Company’s benefit from income taxes for the six months ended June 30, 2022 was $2.7 million, which was primarily due to tax benefits attributable to its worldwide losses, offset by tax deficiencies (shortfalls) expenses from stock-based
compensation attributable to its U.S. jurisdiction as a result of stock price fluctuation. The Company’s provision for income taxes for the six months ended June 30, 2021 was $3.4 million, which was primarily due to tax expenses attributable to its worldwide profits, offset by excess tax benefits from stock-based compensation attributable to its U.S. jurisdiction.

The Company’s effective tax rate was (215.9)% for the three months ended June 30, 2022, compared to 18.7% for the three months ended June 30, 2021. The Company’s change in effective tax rate was primarily attributable to large tax expenses over relatively small worldwide losses for the three months ended June 30, 2022, when compared to small tax expenses over relatively large worldwide profits for the three months ended June 30, 2021. The Company’s effective tax rate was 42.5% for the six months ended June 30, 2022, compared to 15.2% for the six months ended June 30, 2021. The Company’s change in effective tax rate was primarily attributable to large tax benefits over relatively small worldwide losses for the six months ended June 30, 2022, when compared to small tax expenses over relatively large worldwide profits for the six months ended June 30, 2021.
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 June 30, 2022 and 2021, the Company maintains a valuation allowance against its Federal Research and Development Tax Credit and California DTAs as the Company could not conclude at the required more-likely-than-not level of certainty, that the benefit of these tax attributes would be realized prior to expiration.
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 are not provided for in the Company’s condensed consolidated financial statements as of June 30, 2022.
v3.22.2
Net Income Attributable to Penumbra, Inc. Per Share
6 Months Ended
Jun. 30, 2022
Earnings Per Share [Abstract]  
Net Income Attributable to Penumbra, Inc. Per Share
14. Net Income Attributable to Penumbra, Inc. Per Share
The Company computed basic net (loss) income attributable to Penumbra, Inc. per share based on the weighted average number of shares of common stock outstanding during the period. The Company computed diluted net (loss) income attributable to Penumbra, Inc. per share based on the weighted average number of shares of common stock outstanding plus potentially dilutive common stock equivalents outstanding during the period using the treasury stock method. For the purposes of this calculation, stock options, restricted stock units and stock sold through the Company’s employee stock purchase plan are considered common stock equivalents.
A reconciliation of the numerator and denominator used in the calculation of the basic and diluted net (loss) income attributable to Penumbra, Inc. per share is as follows (in thousands, except share and per share amounts):
 Three Months Ended June 30,Six Months Ended June 30,
 2022202120222021
Numerator:
Net (loss) income attributable to Penumbra, Inc.$(3,687)$9,231 $(3,608)$21,067 
Denominator:
Weighted average shares used to compute net (loss) income attributable to common stockholders:
Basic37,767,519 36,523,011 37,707,156 36,489,548 
Potential dilutive stock-based options and awards— 1,059,337 — 1,075,333 
Diluted37,767,519 37,582,348 37,707,156 37,564,881 
Net (loss) income attributable to Penumbra, Inc. per share:
Basic$(0.10)$0.25 $(0.10)$0.58 
Diluted$(0.10)$0.25 $(0.10)$0.56 
For the three months ended June 30, 2022 and 2021, outstanding stock-based awards of 1,766 thousand and 28 thousand shares, respectively, and for the six months ended June 30, 2022 and 2021, outstanding stock-based awards of 1,878 thousand and 37 thousand shares, respectively, were excluded from the computation of diluted net (loss) income attributable to Penumbra, Inc. per share because their effect would have been anti-dilutive.
v3.22.2
Revenues
6 Months Ended
Jun. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenues
15. 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.
The following table presents the Company’s revenues disaggregated by geography, based on the destination to which the Company ships its products, for the three and six months ended June 30, 2022 and 2021 (in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2022202120222021
United States$141,456 $128,402 $285,764 $248,472 
International66,888 55,856 126,475 104,990 
Total$208,344 $184,258 $412,239 $353,462 
The following table presents the Company’s revenues disaggregated by product category for the three and six months ended June 30, 2022 and 2021 (in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2022202120222021
Vascular$123,543 $100,684 $246,352 $189,849 
Neuro84,801 83,574 165,887 163,613 
Total$208,344 $184,258 $412,239 $353,462 
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 Chinese partner, the Company agreed to license the technology for certain products to its Chinese partner 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 agreement, pursuant to which the Company agreed to license the technology for additional products to its Chinese partner on substantially the same terms as the existing license agreement. Apart from the standard distribution agreement, the Company 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.
Performance Obligations
Delivery of products - The Company’s contracts with customers 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 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 June 30, 2022.
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. During the three and six months ended June 30, 2022, 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 liabilities, net
The following information summarizes the Company’s contract assets and liabilities, net as of June 30, 2022 and December 31, 2021 (in thousands):
June 30, 2022December 31, 2021
Contract liabilities, net$9,646 $5,671 
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. 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 arrangements. Revenue recognized during the three and six months ended June 30, 2022 relating to contract liabilities as of March 31, 2022 and December 31, 2021 was $7.5 million and $5.7 million, respectively.
v3.22.2
Summary of Significant Accounting Policies (Policies)
6 Months Ended
Jun. 30, 2022
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation and Consolidation
The accompanying condensed consolidated balance sheet as of June 30, 2022, the condensed consolidated statements of operations, the condensed consolidated statements of comprehensive (loss) income, and the condensed consolidated statements of stockholders’ equity for the three and six months ended June 30, 2022 and 2021, and the condensed consolidated statements of cash flows for the six months ended June 30, 2022 and 2021 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, 2021 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 June 30, 2022, the results of its operations for the three and six months ended June 30, 2022 and 2021, the changes in comprehensive income (loss) and stockholders’ equity for the three and six months ended June 30, 2022 and 2021, and the cash flows for the six months ended June 30, 2022 and 2021. The results for the three and six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022 or for any other future annual or interim period.
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 year ended December 31, 2021, included in the Company’s Annual Report on Form 10-K. There have been no changes to the Company’s significant accounting policies during the six months ended June 30, 2022, 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, 2021.
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 EstimatesThe 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, operating and financing lease right-of-use (“ROU”) assets and liabilities, income taxes, contingent consideration and other contingencies, 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 Investments Marketable InvestmentsThe Company’s marketable investments have been classified and accounted for as available-for-sale.
v3.22.2
Investments and Fair Value of Financial Instruments (Tables)
6 Months Ended
Jun. 30, 2022
Fair Value Disclosures [Abstract]  
Schedule of Marketable Investments The following table presents the Company’s marketable investments as of June 30, 2022 and December 31, 2021 (in thousands):
June 30, 2022
Securities with net gains or losses in accumulated other comprehensive income (loss)    
Amortized CostGross Unrealized GainsGross Unrealized LossesAllowance
 for
 Credit Loss
Fair Value
Commercial paper $5,998 $— $(23)$— $5,975 
U.S. treasury14,473 — (470)— 14,003 
U.S. agency and government sponsored securities8,502 — (189)— 8,313 
U.S. states and municipalities30,130 — (655)— 29,475 
Corporate bonds90,952 — (2,583)— 88,369 
Total$150,055 $— $(3,920)$— $146,135 
December 31, 2021
Securities with net gains or losses in accumulated other comprehensive income (loss)
Amortized CostGross Unrealized GainsGross Unrealized LossesAllowance
 for
 Credit Loss
Fair Value
Commercial paper $20,286 $— $(10)$— $20,276 
U.S. treasury14,464 — (77)— 14,387 
U.S. agency and government sponsored securities11,553 (19)— 11,535 
U.S. states and municipalities39,436 39 (89)— 39,386 
Corporate bonds110,354 49 (491)— 109,912 
Total$196,093 $89 $(686)$— $195,496 
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 twelve months or for twelve months or more as of June 30, 2022 and December 31, 2021 (in thousands):
June 30, 2022
Less than 12 months12 months or moreTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Commercial paper$5,975 $(23)$— $— $5,975 $(23)
U.S. treasury14,003 (470)— — 14,003 (470)
U.S. agency and government sponsored securities8,313 (189)— — 8,313 (189)
U.S. states and municipalities26,953 (577)1,522 (78)28,475 (655)
Corporate bonds81,263 (2,322)7,106 (261)88,369 (2,583)
Total$136,507 $(3,581)$8,628 $(339)$145,135 $(3,920)
December 31, 2021
Less than 12 months12 months or moreTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Commercial paper$16,977 $(10)$— $— $16,977 $(10)
U.S. treasury14,387 (77)— — 14,387 (77)
U.S. agency and government sponsored securities6,985 (19)— — 6,985 (19)
U.S. states and municipalities21,924 (89)— — 21,924 (89)
Corporate bonds85,513 (491)— — 85,513 (491)
Total$145,786 $(686)$— $— $145,786 $(686)
Schedule of Contractual Maturities of Marketable Investments The following table presents the contractual maturities of the Company’s marketable investments as of June 30, 2022 (in thousands):
June 30, 2022
 Amortized CostFair Value
Due in less than one year$51,834 $51,254 
Due in one to five years98,221 94,881 
Total$150,055 $146,135 
Schedule of Fair Value of Assets and Liabilities
The following tables set forth the Company’s financial assets measured at fair value by level within the fair value hierarchy as of June 30, 2022 and December 31, 2021 (in thousands):
 As of June 30, 2022
 Level 1Level 2Level 3Fair Value
Financial Assets
Cash equivalents:
Commercial paper$— $4,389 $— $4,389 
Money market funds14,840 — — 14,840 
Marketable investments:
Commercial paper— 5,975 — 5,975 
U.S. treasury14,003 — — 14,003 
U.S. agency and government sponsored securities— 8,313 — 8,313 
U.S. states and municipalities— 29,475 — 29,475 
Corporate bonds— 88,369 — 88,369 
Total$28,843 $136,521 $— $165,364 
 As of December 31, 2021
 Level 1Level 2Level 3Fair Value
Financial Assets
Cash equivalents:
Money market funds$10,509 $— $— $10,509 
Marketable investments:
Commercial paper— 20,276 — 20,276 
U.S. treasury14,387 — — 14,387 
U.S. agency and government sponsored securities— 11,535 — 11,535 
U.S. states and municipalities— 39,386 — 39,386 
Corporate bonds— 109,912 — 109,912 
Total$24,896 $181,109 $— $206,005 
v3.22.2
Balance Sheet Components Balance Sheet Components (Tables)
6 Months Ended
Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Inventories
The following table shows the components of inventories as of June 30, 2022 and December 31, 2021 (in thousands):
 June 30, 2022December 31, 2021
Raw materials$75,484 $68,374 
Work in process33,902 18,678 
Finished goods186,497 176,452 
Inventories$295,883 $263,504 
Schedule of Accrued Liabilities The following table shows the components of accrued liabilities as of June 30, 2022 and December 31, 2021 (in thousands):
 June 30, 2022December 31, 2021
Payroll and employee-related cost$58,388 $60,015 
Accrued expenses19,900 12,245 
Deferred revenue9,959 5,671 
Other accrued liabilities23,158 21,865 
Total accrued liabilities$111,405 $99,796 
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 six months ended June 30, 2022 and twelve months ended December 31, 2021, respectively (in thousands):
 June 30, 2022December 31, 2021
Balance at the beginning of the period$4,310 $2,896 
Accruals of warranties issued1,407 2,973 
Settlements of warranty claims(771)(1,559)
Balance at the end of the period$4,946 $4,310 
v3.22.2
Business Combinations (Tables)
6 Months Ended
Jun. 30, 2022
Business Combination and Asset Acquisition [Abstract]  
Schedule of Business Acquisition Consideration Transferred
The following table summarizes the Closing Date fair value of the consideration transferred (in thousands):
Fair value of common stock issued(1)
$174,133 
Fair value of replacement stock options(2)
80,693 
Consideration for settlement of pre-existing liabilities due to Sixense(3)
(3,810)
Total purchase price$251,016 
(1) The fair value of the 661,877 shares of common stock issued as part of consideration transferred was determined based on the acquisition date closing market price of the Company’s common stock of $263.09.
(2) Per ASC 805, the replacement of stock options or other share-based payment awards in conjunction with a business combination represents a modification of share-based payment awards that must be accounted for in accordance with ASC 718. As a result of the Company’s obligation to issue replacement awards, a portion of the fair-value-based measure of replacement awards is included in measuring the purchase consideration transferred in the business combination. To determine the portion of the replacement awards that is part of the purchase consideration, the Company measured the fair value of both the replacement awards and the historical awards as of the Closing Date, in accordance with ASC 718. The fair value of the replacement awards, whether vested or unvested, was included in the purchase consideration to the extent that pre-acquisition services had been rendered. The fair value of replacement stock options assumed for which pre-acquisition services were rendered of $80.7 million was allocated to the purchase consideration and $25.8 million was recognized immediately in the post-combination financial statements during the three months ended December 31, 2021, as pre-acquisition services were not rendered but the vesting of all stock options was accelerated in connection with the Merger.
(3) In the connection with the Merger, the Company effectively settled pre-existing liabilities due to or on behalf of Sixense.
Schedule of Purchase Price Allocation
The following table presents the preliminary allocation of the purchase price for Sixense as of June 30, 2022 (in thousands):
Acquisition-Date Fair ValueEstimated Useful Life of Finite-Lived Intangible Assets
Tangible assets acquired and (liabilities) assumed:
Cash and cash equivalents$2,919 
Prepaid expenses and other current and non-current assets2,063 
Deferred tax assets20,678 
Deferred tax liabilities(19,398)
Accrued liabilities and other current liabilities(1,341)
Intangible assets acquired:
Developed technology62,466 8.75 years
In-process research and development20,823 
Net assets acquired88,210 
Fair value of subsidiary stock indirectly acquired through the Merger4,161 
Total net assets acquired92,371 
Goodwill158,645 
Total purchase price$251,016 
v3.22.2
Intangible Assets Intangible Assets (Tables)
6 Months Ended
Jun. 30, 2022
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Schedule of indefinite-lived intangible assets
The following tables present details of the Company’s acquired finite-lived intangible assets as of June 30, 2022 and December 31, 2021 (in thousands, except weighted-average amortization period):
As of June 30, 2022Weighted-Average Amortization PeriodGross Carrying AmountAccumulated AmortizationNet
Finite-lived intangible assets:
Developed technology8.8 years$62,466 $(5,353)$57,113 
Customer relationships15.0 years$6,230 $(2,077)$4,153 
Trade secrets and processes20.0 years5,256 (1,183)4,073 
Other5.0 years1,606 (1,606)— 
Total intangible assets subject to amortization9.8 years$75,558 $(10,219)$65,339 
Indefinite-lived intangible assets:
In-process research and development$20,823 $— $20,823 
Total intangible assets$96,381 $(10,219)$86,162 
As of December 31, 2021Weighted-Average
Amortization Period
Gross Carrying AmountAccumulated AmortizationNet
Finite-lived intangible assets:
Developed technology8.8 years$62,466 $(1,784)$60,682 
Customer relationships15.0 years$6,762 $(2,029)$4,733 
Trade secrets and processes20.0 years5,256 (1,051)4,205 
Other5.0 years1,744 (1,569)175 
Total intangible assets subject to amortization9.8 years$76,228 $(6,433)$69,795 
Indefinite-lived intangible assets:
In-process research and development20,823 — 20,823 
Total intangible assets$97,051 $(6,433)$90,618 
Schedule of finite-lived intangible assets
The following tables present details of the Company’s acquired finite-lived intangible assets as of June 30, 2022 and December 31, 2021 (in thousands, except weighted-average amortization period):
As of June 30, 2022Weighted-Average Amortization PeriodGross Carrying AmountAccumulated AmortizationNet
Finite-lived intangible assets:
Developed technology8.8 years$62,466 $(5,353)$57,113 
Customer relationships15.0 years$6,230 $(2,077)$4,153 
Trade secrets and processes20.0 years5,256 (1,183)4,073 
Other5.0 years1,606 (1,606)— 
Total intangible assets subject to amortization9.8 years$75,558 $(10,219)$65,339 
Indefinite-lived intangible assets:
In-process research and development$20,823 $— $20,823 
Total intangible assets$96,381 $(10,219)$86,162 
As of December 31, 2021Weighted-Average
Amortization Period
Gross Carrying AmountAccumulated AmortizationNet
Finite-lived intangible assets:
Developed technology8.8 years$62,466 $(1,784)$60,682 
Customer relationships15.0 years$6,762 $(2,029)$4,733 
Trade secrets and processes20.0 years5,256 (1,051)4,205 
Other5.0 years1,744 (1,569)175 
Total intangible assets subject to amortization9.8 years$76,228 $(6,433)$69,795 
Indefinite-lived intangible assets:
In-process research and development20,823 — 20,823 
Total intangible assets$97,051 $(6,433)$90,618 
Finite-lived Intangible Assets Amortization Expense
The following table presents the amortization expense recorded related to the Company’s finite-lived intangible assets for the three and six months ended June 30, 2022 and 2021 (in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2022202120222021
Cost of revenue$66 $66 $132 $131 
Sales, general and administrative1,972 212 3,954 425 
Total$2,038 $278 $4,086 $556 
v3.22.2
Goodwill Goodwill (Tables)
6 Months Ended
Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of goodwill The following table presents the changes in goodwill during the six months ended June 30, 2022 (in thousands):
Total Company
Balance as of December 31, 2021$166,388 
Foreign currency translation (609)
Balance as of June 30, 2022$165,779 
v3.22.2
Leases (Tables)
6 Months Ended
Jun. 30, 2022
Leases [Abstract]  
Lease, Cost
The following table presents the components of the Company’s lease cost, lease term and discount rate during the three and six months ended June 30, 2022 and 2021 (in thousands, except years and percentages):
Three Months EndedSix Months Ended
June 30, 2022June 30, 2021June 30, 2022June 30, 2021
Lease Cost
Operating lease cost$5,034 $1,959 $9,916 $3,879 
Finance lease cost:
Amortization of right-of-use assets
810 760 1,616 1,506 
Interest on lease liabilities361 374 723 745 
Variable lease cost(1)
2,568 1,356 4,931 2,826 
Total lease costs$8,773 $4,449 $17,186 $8,956 
Weighted Average Remaining Lease Term
Operating leases13.8 years12.1 years
Finance leases11.8 years12.9 years
Weighted Average Discount Rate
Operating leases4.61 %5.33 %
Finance leases5.30 %5.34 %
(1) Variable lease costs represent payments that are dependent on usage, a rate or index. Variable lease cost primarily relates to common area maintenance charges for the Company’s real estate leases.
Lessee, Operating Lease, Liability, Maturity The following table is a schedule, by years, of maturities of the Company's operating and finance lease liabilities as of June 30, 2022 (in thousands):
Operating Lease PaymentsFinance Lease Payments
2022 (excluding the six months ended June 30, 2022)$9,046 $1,591 
202317,807 3,226 
202417,682 3,242 
202517,527 3,170 
202617,673 2,803 
Thereafter186,197 23,518 
Total undiscounted lease payments
265,932 37,550 
Less imputed interest(73,480)(10,090)
Present value of lease liabilities$192,452 $27,460 
Finance Lease, Liability, Maturity The following table is a schedule, by years, of maturities of the Company's operating and finance lease liabilities as of June 30, 2022 (in thousands):
Operating Lease PaymentsFinance Lease Payments
2022 (excluding the six months ended June 30, 2022)$9,046 $1,591 
202317,807 3,226 
202417,682 3,242 
202517,527 3,170 
202617,673 2,803 
Thereafter186,197 23,518 
Total undiscounted lease payments
265,932 37,550 
Less imputed interest(73,480)(10,090)
Present value of lease liabilities$192,452 $27,460 
Schedule of Supplemental Cash Flow Disclosures Supplemental cash flow information related to leases during the six months ended June 30, 2022 and 2021 are as follows (in thousands):
Six Months Ended
June 30, 2022June 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$8,458 $3,914 
Financing cash flows from finance leases$858 $692 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$51,191 $54,444 
Finance leases$89 $520 
v3.22.2
Stockholder's Equity (Tables)
6 Months Ended
Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Summary of Stock Option Activity
Activity of stock options under the Company’s 2005 Stock Plan, 2011 Equity Incentive Plan and Amended and Restated 2014 Equity Incentive Plan (collectively, the "Plans") during the six months ended June 30, 2022 is set forth below:
Number of SharesWeighted-Average
Exercise Price
Balance at December 31, 20211,141,814 $27.02 
Granted10,120 197.74 
Exercised(187,856)24.32 
Canceled/Forfeited(1,000)22.04 
Balance at June 30, 2022963,078 29.35 
Summary of Unvested Restricted Stock and Restricted Stock Unit Activity
Activity of unvested restricted stock units under the Plans during the six months ended June 30, 2022 is set forth below: 
Number of SharesWeighted -Average
Grant Date Fair Value
Unvested at December 31, 2021409,482 $210.41 
Granted146,540 187.06 
Released/Vested (74,863)176.49 
Canceled/Forfeited(15,712)223.95 
Unvested at June 30, 2022465,447 208.05 
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 and six months ended June 30, 2022 and 2021 (in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2022202120222021
Cost of revenue$880 $543 $1,736 $1,341 
Research and development1,514 1,188 2,900 2,250 
Sales, general and administrative6,392 8,072 13,043 12,607 
Total$8,786 $9,803 $17,679 $16,198 
v3.22.2
Accumulated Other Comprehensive (Loss) Income (Tables)
6 Months Ended
Jun. 30, 2022
Equity [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss)
The following table summarizes the changes in the accumulated balances during the period and includes information regarding the manner in which the reclassifications out of accumulated other comprehensive (loss) income into earnings affect the Company’s condensed consolidated statements of operations and condensed consolidated statements of comprehensive (loss) income (in thousands):    
Three Months Ended June 30, 2022Three Months Ended June 30, 2021
 Marketable
Investments
 Currency Translation
Adjustments
 Total Marketable
Investments
 Currency Translation
Adjustments
 Total
Balance, beginning of the period$(3,069)$(2,903)$(5,972)$376 $(801)$(425)
Other comprehensive (loss) income before reclassifications:
Unrealized (loss) — marketable investments(853)— (853)(142)— (142)
Foreign currency translation (losses) gains — (3,333)(3,333)— 863 863 
Income tax effect — expense— — — 33 — 33 
Net of tax(853)(3,333)(4,186)(109)863 754 
Net current-year other comprehensive (loss) income(853)(3,333)(4,186)(109)863 754 
Balance, end of the period$(3,922)$(6,236)$(10,158)$267 $62 $329 

Six Months Ended June 30, 2022Six Months Ended June 30, 2021
Marketable
Investments
Currency Translation
Adjustments
TotalMarketable
Investments
Currency Translation
Adjustments
Total
Balance at beginning of the period$(595)$(2,035)$(2,630)$647 $1,894 $2,541 
Other comprehensive (loss) income before reclassifications:
Unrealized (loss) gain — marketable investments(3,327)— (3,327)(495)— (495)
Foreign currency translation gains (losses)— (4,201)(4,201)— (1,832)(1,832)
Income tax effect — expense— — — 115 — 115 
Net of tax(3,327)(4,201)(7,528)(380)(1,832)(2,212)
Net current-year other comprehensive (loss) income(3,327)(4,201)(7,528)(380)(1,832)(2,212)
Balance at end of the period(3,922)(6,236)(10,158)267 62 329 
v3.22.2
Net Income Attributable to Penumbra, Inc. Per Share (Tables)
6 Months Ended
Jun. 30, 2022
Earnings Per Share [Abstract]  
Reconciliation of the Numerator and Denominator used in the Calculation of the Basic and Diluted Earnings per Share A reconciliation of the numerator and denominator used in the calculation of the basic and diluted net (loss) income attributable to Penumbra, Inc. per share is as follows (in thousands, except share and per share amounts):
 Three Months Ended June 30,Six Months Ended June 30,
 2022202120222021
Numerator:
Net (loss) income attributable to Penumbra, Inc.$(3,687)$9,231 $(3,608)$21,067 
Denominator:
Weighted average shares used to compute net (loss) income attributable to common stockholders:
Basic37,767,519 36,523,011 37,707,156 36,489,548 
Potential dilutive stock-based options and awards— 1,059,337 — 1,075,333 
Diluted37,767,519 37,582,348 37,707,156 37,564,881 
Net (loss) income attributable to Penumbra, Inc. per share:
Basic$(0.10)$0.25 $(0.10)$0.58 
Diluted$(0.10)$0.25 $(0.10)$0.56 
v3.22.2
Revenues Revenues (Tables)
6 Months Ended
Jun. 30, 2022
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
The following table presents the Company’s revenues disaggregated by geography, based on the destination to which the Company ships its products, for the three and six months ended June 30, 2022 and 2021 (in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2022202120222021
United States$141,456 $128,402 $285,764 $248,472 
International66,888 55,856 126,475 104,990 
Total$208,344 $184,258 $412,239 $353,462 
The following table presents the Company’s revenues disaggregated by product category for the three and six months ended June 30, 2022 and 2021 (in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2022202120222021
Vascular$123,543 $100,684 $246,352 $189,849 
Neuro84,801 83,574 165,887 163,613 
Total$208,344 $184,258 $412,239 $353,462 
Summary of Contract Assets and Liabilities
The following information summarizes the Company’s contract assets and liabilities, net as of June 30, 2022 and December 31, 2021 (in thousands):
June 30, 2022December 31, 2021
Contract liabilities, net$9,646 $5,671 
v3.22.2
Summary of Significant Accounting Policies - Additional Disclosures (Details)
6 Months Ended
Jun. 30, 2022
activity
segment
Accounting Policies [Abstract]  
Number of business activities | activity 1
Number of operating segments | segment 1
v3.22.2
Investments and Fair Value of Financial Instruments - Gains and Losses of Marketable Investments (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost $ 150,055 $ 196,093
Gross Unrealized Gains 0 89
Gross Unrealized Losses (3,920) (686)
Allowance for Credit Loss 0 0
Fair Value 146,135 195,496
Commercial paper    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 5,998 20,286
Gross Unrealized Gains 0 0
Gross Unrealized Losses (23) (10)
Allowance for Credit Loss 0 0
Fair Value 5,975 20,276
U.S. treasury    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 14,473 14,464
Gross Unrealized Gains 0 0
Gross Unrealized Losses (470) (77)
Allowance for Credit Loss 0 0
Fair Value 14,003 14,387
U.S. agency and government sponsored securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 8,502 11,553
Gross Unrealized Gains 0 1
Gross Unrealized Losses (189) (19)
Allowance for Credit Loss 0 0
Fair Value 8,313 11,535
U.S. states and municipalities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 30,130 39,436
Gross Unrealized Gains 0 39
Gross Unrealized Losses (655) (89)
Allowance for Credit Loss 0 0
Fair Value 29,475 39,386
Corporate bonds    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 90,952 110,354
Gross Unrealized Gains 0 49
Gross Unrealized Losses (2,583) (491)
Allowance for Credit Loss 0 0
Fair Value $ 88,369 $ 109,912
v3.22.2
Investments and Fair Value of Financial Instruments - Narrative (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2022
Dec. 31, 2021
Fair Value Disclosures [Abstract]      
Gross Unrealized Losses $ (3,920,000) $ (3,920,000) $ (686,000)
Allowance for credit loss $ 0 $ 0  
v3.22.2
Investments and Fair Value of Financial Instruments - Marketable Securities in an Unrealized Loss Position (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]    
Less than 12 months: Fair Value $ 136,507 $ 145,786
Less than 12 months: Gross Unrealized Losses (3,581) (686)
12 Months of more: Fair Value 8,628 0
12 months or more: Gross Unrealized Losses (339) 0
Total: Fair Value 145,135 145,786
Total: Gross Unrealized Losses (3,920) (686)
Commercial paper    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 months: Fair Value 5,975 16,977
Less than 12 months: Gross Unrealized Losses (23) (10)
12 Months of more: Fair Value 0 0
12 months or more: Gross Unrealized Losses 0 0
Total: Fair Value 5,975 16,977
Total: Gross Unrealized Losses (23) (10)
U.S. treasury    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 months: Fair Value 14,003 14,387
Less than 12 months: Gross Unrealized Losses (470) (77)
12 Months of more: Fair Value 0 0
12 months or more: Gross Unrealized Losses 0 0
Total: Fair Value 14,003 14,387
Total: Gross Unrealized Losses (470) (77)
U.S. agency and government sponsored securities    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 months: Fair Value 8,313 6,985
Less than 12 months: Gross Unrealized Losses (189) (19)
12 Months of more: Fair Value 0 0
12 months or more: Gross Unrealized Losses 0 0
Total: Fair Value 8,313 6,985
Total: Gross Unrealized Losses (189) (19)
U.S. states and municipalities    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 months: Fair Value 26,953 21,924
Less than 12 months: Gross Unrealized Losses (577) (89)
12 Months of more: Fair Value 1,522 0
12 months or more: Gross Unrealized Losses (78) 0
Total: Fair Value 28,475 21,924
Total: Gross Unrealized Losses (655) (89)
Corporate bonds    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 months: Fair Value 81,263 85,513
Less than 12 months: Gross Unrealized Losses (2,322) (491)
12 Months of more: Fair Value 7,106 0
12 months or more: Gross Unrealized Losses (261) 0
Total: Fair Value 88,369 85,513
Total: Gross Unrealized Losses $ (2,583) $ (491)
v3.22.2
Investments and Fair Value of Financial Instruments - Contractual Maturities of Marketable Investments (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Amortized Cost    
Due in less than one year $ 51,834  
Due in one to five years 98,221  
Total 150,055 $ 196,093
Fair Value    
Due in less than one year 51,254  
Due in one to five years 94,881  
Total $ 146,135 $ 195,496
v3.22.2
Investments and Fair Value of Financial Instruments - Financial Assets and Liabilities Measured at Fair Value (Details) - Recurring - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Financial Assets    
Assets, Fair Value Disclosure $ 165,364 $ 206,005
Commercial paper    
Financial Assets    
Marketable investments 5,975 20,276
U.S. treasury    
Financial Assets    
Marketable investments 14,003 14,387
U.S. agency and government sponsored securities    
Financial Assets    
Marketable investments 8,313 11,535
U.S. states and municipalities    
Financial Assets    
Marketable investments 29,475 39,386
Corporate bonds    
Financial Assets    
Marketable investments 88,369 109,912
Commercial paper    
Financial Assets    
Cash equivalents 4,389  
Money market funds    
Financial Assets    
Cash equivalents 14,840 10,509
Level 1    
Financial Assets    
Assets, Fair Value Disclosure 28,843 24,896
Level 1 | Commercial paper    
Financial Assets    
Marketable investments 0 0
Level 1 | U.S. treasury    
Financial Assets    
Marketable investments 14,003 14,387
Level 1 | U.S. agency and government sponsored securities    
Financial Assets    
Marketable investments 0 0
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 | Commercial paper    
Financial Assets    
Cash equivalents 0  
Level 1 | Money market funds    
Financial Assets    
Cash equivalents 14,840 10,509
Level 2    
Financial Assets    
Assets, Fair Value Disclosure 136,521 181,109
Level 2 | Commercial paper    
Financial Assets    
Marketable investments 5,975 20,276
Level 2 | U.S. treasury    
Financial Assets    
Marketable investments 0 0
Level 2 | U.S. agency and government sponsored securities    
Financial Assets    
Marketable investments 8,313 11,535
Level 2 | U.S. states and municipalities    
Financial Assets    
Marketable investments 29,475 39,386
Level 2 | Corporate bonds    
Financial Assets    
Marketable investments 88,369 109,912
Level 2 | Commercial paper    
Financial Assets    
Cash equivalents 4,389  
Level 2 | Money market funds    
Financial Assets    
Cash equivalents 0 0
Level 3    
Financial Assets    
Assets, Fair Value Disclosure 0 0
Level 3 | Commercial paper    
Financial Assets    
Marketable investments 0 0
Level 3 | U.S. treasury    
Financial Assets    
Marketable investments 0 0
Level 3 | U.S. agency and government sponsored securities    
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 | Commercial paper    
Financial Assets    
Cash equivalents 0  
Level 3 | Money market funds    
Financial Assets    
Cash equivalents $ 0 $ 0
v3.22.2
Balance Sheet Components - Inventories (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Raw materials $ 75,484 $ 68,374
Work in process 33,902 18,678
Finished goods 186,497 176,452
Inventories $ 295,883 $ 263,504
v3.22.2
Balance Sheet Components - Accrued Liabilities (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Payroll and employee-related cost $ 58,388 $ 60,015
Accrued expenses 19,900 12,245
Deferred revenue 9,959 5,671
Other accrued liabilities 23,158 21,865
Total accrued liabilities $ 111,405 $ 99,796
v3.22.2
Balance Sheet Components - Product Warranty (Details) - USD ($)
$ in Thousands
6 Months Ended 12 Months Ended
Jun. 30, 2022
Dec. 31, 2021
Product Warranty, Increase (Decrease) [Roll Forward]    
Balance at the beginning of the period $ 4,310 $ 2,896
Accruals of warranties issued 1,407 2,973
Settlements of warranty claims (771) (1,559)
Balance at the end of the period $ 4,946 $ 4,310
v3.22.2
Business Combinations - Narrative (Details) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2018
Oct. 01, 2021
Sep. 30, 2021
Dec. 31, 2019
Business Acquisition [Line Items]        
Non-controlling interest   $ 0 $ (6,200)  
MVI Health Inc.        
Business Acquisition [Line Items]        
Ownership interest 50.00%      
Ownership by parent   90.00%    
MVI Health Inc. | Sixense Enterprises Inc.        
Business Acquisition [Line Items]        
Ownership by noncontrolling owners   10.00%    
MVI Health Inc.        
Business Acquisition [Line Items]        
Percentage of voting interests acquired       40.00%
Sixense Enterprises Inc.        
Business Acquisition [Line Items]        
Fair value of subsidiary stock indirectly acquired through the Merger   $ 4,161    
Sixense Enterprises Inc. | MVI Health Inc.        
Business Acquisition [Line Items]        
Percentage of voting interests acquired   10.00%    
v3.22.2
Business Combinations - Schedule of Consideration Transferred (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 6 Months Ended
Oct. 01, 2021
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Business Acquisition, Contingent Consideration [Line Items]          
Stock-based compensation expense   $ 8,786 $ 9,803 $ 17,679 $ 16,198
Sixense Enterprises Inc.          
Business Acquisition, Contingent Consideration [Line Items]          
Consideration for settlement of pre-existing liabilities due to Sixense $ (3,810)        
Purchase price $ 251,016        
Shares issued for acquisition (in shares) 661,877        
Business acquisition, share price $ 263.09        
Stock-based compensation expense $ 25,800        
Sixense Enterprises Inc. | Common Stock          
Business Acquisition, Contingent Consideration [Line Items]          
Fair value of common stock issued 174,133        
Sixense Enterprises Inc. | Share-based Payment Arrangement, Option          
Business Acquisition, Contingent Consideration [Line Items]          
Fair value of replacement stock options $ 80,693        
v3.22.2
Business Combinations - Purchase Price Allocation (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 9 Months Ended
Oct. 01, 2021
Mar. 31, 2022
Jun. 30, 2022
Sep. 30, 2021
Dec. 31, 2021
Business Acquisition [Line Items]          
Goodwill     $ 165,779   $ 166,388
Estimated Useful Life of Finite-Lived Intangible Assets     9 years 9 months 18 days 9 years 9 months 18 days  
Developed Technology Rights          
Business Acquisition [Line Items]          
Estimated Useful Life of Finite-Lived Intangible Assets   8 years 9 months 18 days 8 years 9 months 18 days    
Sixense Enterprises Inc.          
Business Acquisition [Line Items]          
Cash and cash equivalents $ 2,919        
Prepaid expenses and other current and non-current assets 2,063        
Deferred tax assets 20,678        
Deferred tax liabilities (19,398)        
Accrued liabilities and other current liabilities (1,341)        
Net assets acquired 88,210        
Fair value of subsidiary stock indirectly acquired through the Merger 4,161        
Total net assets acquired 92,371        
Goodwill 158,645        
Total purchase price 251,016        
Sixense Enterprises Inc. | In Process Research and Development          
Business Acquisition [Line Items]          
In-process research and development 20,823        
Sixense Enterprises Inc. | Developed Technology Rights          
Business Acquisition [Line Items]          
Developed technology $ 62,466        
Estimated Useful Life of Finite-Lived Intangible Assets 8 years 9 months        
v3.22.2
Intangible Assets - Intangible Assets (Details) - USD ($)
3 Months Ended 6 Months Ended 9 Months Ended
Jun. 30, 2022
Mar. 31, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Sep. 30, 2021
Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]              
Weighted-Average Amortization Period       9 years 9 months 18 days   9 years 9 months 18 days  
Finite lived intangible assets: gross carrying amount $ 75,558,000     $ 75,558,000     $ 76,228,000
Accumulated amortization (10,219,000)     (10,219,000)     (6,433,000)
Finite lived intangible assets: net 65,339,000     65,339,000     69,795,000
Indefinite-lived intangible assets 20,823,000     20,823,000     20,823,000
Total intangible assets, gross 96,381,000     96,381,000     97,051,000
Intangible assets, net 86,162,000     86,162,000     90,618,000
Total amortization of finite lived intangible assets 2,038,000   $ 278,000 $ 4,086,000 $ 556,000    
Customer relationships              
Finite-Lived Intangible Assets [Line Items]              
Weighted-Average Amortization Period       15 years   15 years  
Finite lived intangible assets: gross carrying amount 6,230,000     $ 6,230,000     6,762,000
Accumulated amortization (2,077,000)     (2,077,000)     (2,029,000)
Finite lived intangible assets: net 4,153,000     $ 4,153,000     4,733,000
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 5,256,000     $ 5,256,000     5,256,000
Accumulated amortization (1,183,000)     (1,183,000)     (1,051,000)
Finite lived intangible assets: net 4,073,000     $ 4,073,000     4,205,000
Other Intangible Assets              
Finite-Lived Intangible Assets [Line Items]              
Weighted-Average Amortization Period       5 years   5 years  
Finite lived intangible assets: gross carrying amount 1,606,000     $ 1,606,000     1,744,000
Accumulated amortization (1,606,000)     (1,606,000)     (1,569,000)
Finite lived intangible assets: net 0     $ 0     175,000
Developed Technology Rights              
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 62,466,000     $ 62,466,000     62,466,000
Accumulated amortization (5,353,000)     (5,353,000)     (1,784,000)
Finite lived intangible assets: net 57,113,000     57,113,000     60,682,000
Technology Licensing Agreement [Member]              
Finite-Lived Intangible Assets [Line Items]              
Indefinite-lived intangible assets 20,823,000     20,823,000     $ 20,823,000
Cost of revenue              
Finite-Lived Intangible Assets [Line Items]              
Total amortization of finite lived intangible assets 66,000   66,000 132,000 131,000    
Sales, general and administrative              
Finite-Lived Intangible Assets [Line Items]              
Total amortization of finite lived intangible assets $ 1,972,000   $ 212,000 $ 3,954,000 $ 425,000    
v3.22.2
Goodwill (Details)
6 Months Ended
Jun. 30, 2022
USD ($)
Goodwill [Roll Forward]  
Goodwill $ 166,388,000
Foreign currency translation (609,000)
Goodwill 165,779,000
Goodwill impairment $ 0
v3.22.2
Debt (Details) - Revolving Credit Facility - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2022
Dec. 31, 2021
Apr. 24, 2020
Line of Credit Facility [Line Items]        
Borrowing capacity       $ 100,000,000
Line of credit, increase limit       $ 150,000,000
Borrowings outstanding $ 0 $ 0 $ 0  
Bank Of America And Citibank | Line of Credit        
Line of Credit Facility [Line Items]        
Debt instrument, term (in years) 1 year 1 year    
Line of credit facility, unused capacity, commitment fee percentage 0.25%      
v3.22.2
Leases - Narrative (Details)
Jun. 30, 2022
Lessee, Lease, Description [Line Items]  
Operating lease term, lease not yet commenced 13 years
5 year renewal term  
Lessee, Lease, Description [Line Items]  
Operating lease, renewal term (in years) 5 years
15 year renewal term  
Lessee, Lease, Description [Line Items]  
Operating lease, renewal term (in years) 15 years
v3.22.2
Leases - Summary of Lease Cost (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Lease Cost        
Operating lease cost $ 5,034 $ 1,959 $ 9,916 $ 3,879
Finance lease cost:        
Amortization of right-of-use assets 810 760 1,616 1,506
Interest on lease liabilities 361 374 723 745
Variable lease cost 2,568 1,356 4,931 2,826
Total lease costs $ 8,773 $ 4,449 $ 17,186 $ 8,956
Weighted Average Remaining Lease Term        
Operating leases 13 years 9 months 18 days 12 years 1 month 6 days 13 years 9 months 18 days 12 years 1 month 6 days
Finance leases 11 years 9 months 18 days 12 years 10 months 24 days 11 years 9 months 18 days 12 years 10 months 24 days
Weighted Average Discount Rate        
Operating leases 4.61% 5.33% 4.61% 5.33%
Finance leases 5.30% 5.34% 5.30% 5.34%
v3.22.2
Leases - Schedule of Maturity of Lease Liabilities (Details)
$ in Thousands
Jun. 30, 2022
USD ($)
Operating Lease Payments  
2022 (excluding the six months ended June 30, 2022) $ 9,046
2023 17,807
2024 17,682
2025 17,527
2026 17,673
Thereafter 186,197
Total undiscounted lease payments 265,932
Less imputed interest (73,480)
Present value of lease liabilities 192,452
Finance Lease Payments  
2022 (excluding the six months ended June 30, 2022) 1,591
2023 3,226
2024 3,242
2025 3,170
2026 2,803
Thereafter 23,518
Total undiscounted lease payments 37,550
Less imputed interest (10,090)
Present value of lease liabilities $ 27,460
v3.22.2
Leases - Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:    
Cash paid for amounts included in the measurement of operating lease liabilities $ 8,458 $ 3,914
Financing cash flows from finance leases 858 692
Right-of-use assets obtained in exchange for lease obligations:    
Right-of-use assets obtained in exchange for lease obligations 51,191 54,444
Right-of-use assets obtained in exchange for finance lease obligations $ 89 $ 520
v3.22.2
Commitments and Contingencies - Royalty Obligations (Details) - USD ($)
$ in Millions
1 Months Ended 3 Months Ended 6 Months Ended
Jul. 31, 2019
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Cost of revenue          
Other Commitments [Line Items]          
Royalty expense   $ 0.6 $ 0.6 $ 1.2 $ 1.1
Royalty Agreement, March 2005          
Other Commitments [Line Items]          
Extended term of agreement 10 years        
Increase in minimum annual royalty payments $ 0.2        
Minimum quarterly royalty payments   $ 0.3   $ 0.3  
Royalty Agreement, April 2012          
Other Commitments [Line Items]          
Royalty as a percent of sales       5.00%  
Term of agreement       15 years  
v3.22.2
Stockholder's Equity - Stock Option Activity (Details)
6 Months Ended
Jun. 30, 2022
$ / shares
shares
Number of Shares  
Beginning balance (in shares) | shares 1,141,814
Options granted (in shares) | shares 10,120
Options exercised (in shares) | shares (187,856)
Options cancelled (in shares) | shares (1,000)
Ending balance (in shares) | shares 963,078
Weighted-Average Exercise Price  
Beginning balance (in dollars per share) | $ / shares $ 27.02
Options granted (in dollars per share) | $ / shares 197.74
Options exercised (in dollars per share) | $ / shares 24.32
Options cancelled (in dollars per share) | $ / shares 22.04
Ending balance (in dollars per share) | $ / shares $ 29.35
v3.22.2
Stockholder's Equity - Restricted Stock and Restricted Stock Units Activity (Details) - Restricted stock and restricted stock units
6 Months Ended
Jun. 30, 2022
$ / shares
shares
Number of Shares  
Unvested beginning balance (in shares) 409,482
Granted (in shares) 146,540
Vested (in shares) (74,863)
Canceled/Forfeited (in shares) (15,712)
Unvested and expected to vest ending balance (in shares) 465,447
Weighted -Average Grant Date Fair Value  
Unvested beginning balance (in dollars per share) | $ / shares $ 210.41
Granted (in dollars per share) | $ / shares 187.06
Vested (in dollars per share) | $ / shares 176.49
Canceled/Forfeited (in dollars per share) | $ / shares 223.95
Unvested and expected to vest ending balance (in dollars per share) | $ / shares $ 208.05
Restricted stock and RSUs expected to vest (shares) 440,842
v3.22.2
Stockholder's Equity - Stock-based Compensation Expense (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2022
Mar. 31, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]          
Stock-based compensation expense $ 8,786   $ 9,803 $ 17,679 $ 16,198
Unrecognized compensation cost related to unvested share-based compensation arrangements 76,500     $ 76,500  
Unrecognized compensation cost, expected recognition period (in years)       3 years  
Share-based compensation expense, capitalized in inventory   $ 1,800   $ 2,000  
Cost of revenue          
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]          
Stock-based compensation expense 880   543 1,736 1,341
Research and development          
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]          
Stock-based compensation expense 1,514   1,188 2,900 2,250
Sales, general and administrative          
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]          
Stock-based compensation expense $ 6,392   $ 8,072 $ 13,043 $ 12,607
v3.22.2
Accumulated Other Comprehensive (Loss) Income (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2022
Mar. 31, 2022
Jun. 30, 2021
Mar. 31, 2021
Jun. 30, 2022
Jun. 30, 2021
Other comprehensive (loss) income before reclassifications:            
Total other comprehensive (loss) income, net of tax $ (4,186) $ (3,342) $ 754 $ (2,966) $ (7,528) $ (2,212)
Marketable Investments            
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]            
Beginning balance (3,069) (595) 376 647 (595) 647
Other comprehensive (loss) income before reclassifications:            
Other comprehensive income before reclassifications (853)   (142)   (3,327) (495)
Income tax effect — expense 0   33   0 115
Net of tax (853)   (109)   (3,327) (380)
Total other comprehensive (loss) income, net of tax (853)   (109)   (3,327) (380)
Ending balance (3,922) (3,069) 267 376 (3,922) 267
Currency Translation Adjustments            
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]            
Beginning balance (2,903) (2,035) (801) 1,894 (2,035) 1,894
Other comprehensive (loss) income before reclassifications:            
Foreign currency translation (losses) gains (3,333)   863   (4,201) (1,832)
Income tax effect — expense 0   0   0 0
Net of tax (3,333)   863   (4,201) (1,832)
Total other comprehensive (loss) income, net of tax (3,333)   863   (4,201) (1,832)
Ending balance (6,236) (2,903) 62 (801) (6,236) 62
Total            
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]            
Beginning balance (5,972) (2,630) (425) 2,541 (2,630) 2,541
Other comprehensive (loss) income before reclassifications:            
Other comprehensive income before reclassifications (853)   (142)   (3,327) (495)
Foreign currency translation (losses) gains (3,333)   863   (4,201) (1,832)
Income tax effect — expense 0   33   0 115
Net of tax (4,186)   754   (7,528) (2,212)
Total other comprehensive (loss) income, net of tax (4,186) (3,342) 754 (2,966) (7,528) (2,212)
Ending balance $ (10,158) $ (5,972) $ 329 $ (425) $ (10,158) $ 329
v3.22.2
Income Taxes Income Taxes (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Income Tax Disclosure [Abstract]        
Provision for (benefit from) income taxes $ 2,520 $ 1,904 $ (2,663) $ 3,445
Effective tax rate 215.90% 18.70% 42.50% 15.20%
v3.22.2
Net Income Attributable to Penumbra, Inc. Per Share - Basic and Diluted Earnings per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Numerator:        
Net (loss) income attributable to Penumbra, Inc. $ (3,687) $ 9,231 $ (3,608) $ 21,067
Weighted average shares used to compute net (loss) income attributable to common stockholders:        
Basic (in shares) 37,767,519 36,523,011 37,707,156 36,489,548
Potential dilutive stock-based options and awards (in shares) 0 1,059,337 0 1,075,333
Diluted (in shares) 37,767,519 37,582,348 37,707,156 37,564,881
Net (loss) income attributable to Penumbra, Inc. per share:        
Basic (in dollars per share) $ (0.10) $ 0.25 $ (0.10) $ 0.58
Diluted (in dollars per share) $ (0.10) $ 0.25 $ (0.10) $ 0.56
v3.22.2
Net Income Attributable to Penumbra, Inc. Per Share - Antidilutive Securities (Details) - shares
shares in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Earnings Per Share [Abstract]        
Antidilutive securities excluded from the computation of earnings per share (in shares) 1,766 28 1,878 37
v3.22.2
Revenues - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Disaggregation of Revenue [Line Items]        
Revenue from contract with customer $ 208,344 $ 184,258 $ 412,239 $ 353,462
United States        
Disaggregation of Revenue [Line Items]        
Revenue from contract with customer 141,456 128,402 285,764 248,472
International        
Disaggregation of Revenue [Line Items]        
Revenue from contract with customer 66,888 55,856 126,475 104,990
Neuro        
Disaggregation of Revenue [Line Items]        
Revenue from contract with customer 84,801 83,574 165,887 163,613
Vascular        
Disaggregation of Revenue [Line Items]        
Revenue from contract with customer $ 123,543 $ 100,684 $ 246,352 $ 189,849
v3.22.2
Revenues - Summary of Contract Assets and Liabilities (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]      
Contract liabilities, net $ 9,646 $ 7,500 $ 5,671