Pulmonx's Q1 2025 Earnings Call: Unpacking Contradictions in U.S. Revenue Growth, Tariffs, and Strategic Investments

U.S. revenue growth and seasonality, impact of tariffs and global economic environment, revenue guidance and growth drivers, investment in strategic initiatives and operational leverage, and U.S. revenue growth and market dynamics are the key contradictions discussed in Pulmonx's latest 2025Q1 earnings call.



Revenue Growth and Market Expansion:
- Pulmonx delivered worldwide sales of $22.5 million in Q1 2025, representing a 20% increase year-over-year, and a 21% increase on a constant currency basis.
- Growth was driven by strong execution of commercial initiatives, particularly in international markets, and the company remains confident in achieving its revenue guidance of $96 million to $98 million for the full year 2025.

International Revenue Surge:
- International revenue increased by 39% to $8.3 million in Q1 2025, with a 43% increase on a constant currency basis.
- This growth was primarily due to strong results in China, driven by underlying demand for Zephyr valves and distributor stocking in response to macroeconomic changes.

Acquire, Test, and Treat Strategy:
- Pulmonx continues to build its strategy focusing on acquiring the right patients, testing eligibility, and treating more COPD patients.
- The strategy includes increasing awareness among clinicians and patients, using tools like LungTraX Detect to identify eligible patients, and expanding the global footprint to grow market share.

U.S. Market Dynamics:
- U.S. revenue increased by 11% year-over-year, with some slowdown attributed to tough prior-year comparisons.
- Initiatives to drive U.S. growth in the second half of the year include targeted education programs and community physician engagement, aiming to accelerate patient engagement and therapy adoption.