Pulmonx (LUNG) Q3 Earnings call transcript Oct 30, 2024

The third quarter earnings call of Pulmonx, a leading medical device company specializing in respiratory treatments, revealed a robust performance and strategic initiatives that underscore its commitment to expanding access to life-changing treatments for patients with severe emphysema and COPD. The call, led by CEO Steven Williamson and CFO Mehul Joshi, highlighted the company's strong commercial traction, clinical advancements, and strategic focus on operational efficiency.

Financial Highlights and Commercial Progress

Pulmonx reported a solid performance in Q3 2024, with worldwide sales of $20.4 million, representing a 15% increase over the same period in the previous year. The company's U.S. revenue was $13.8 million, up 17% year-over-year, while OUS revenue rose by 12% to $6.6 million. The growth was driven by the successful execution of the company's commercial strategy, which includes training physicians, optimizing patient workflows, and building awareness of the Zephyr Valve treatment among COPD physicians and patients.

The company's commercial strategy has been gaining traction, with the addition of 15 new accounts in the U.S. in Q3, bringing the total to 280 active accounts. The strong demand for the Zephyr Valve treatment, which provides relief to underserved patients with severe emphysema and COPD, has been a significant contributor to the growth.

Clinical Advancements and Strategic Initiatives

Clinically, Pulmonx has made significant strides in expanding the number of patients eligible for the Zephyr Valve treatment. The AeriSeal clinical development program, which aims to expand the immediately addressable market, is progressing well, with new clinical data demonstrating successful conversion of collateral ventilation status in 77.6% of patients following treatment. This has the potential to increase the number of patients that can be treated with the Zephyr Valves by an estimated 20%.

Additionally, Pulmonx's LungTraX platform, a software solution designed to streamline patient identification and workup, has been gaining interest from customers. The platform's ability to identify patients with severe emphysema and automate patient workflows is expected to provide a meaningful tailwind to procedure volumes over the medium to long term.

Operational Efficiency and Financial Outlook

The company's focus on operational efficiency was evident in its financial results, with a slight improvement in gross margin to 74% and a reduction in operating expenses. Pulmonx is executing a cost optimization program to drive operating leverage and improve adjusted EBITDA, with a reiterated revenue guidance of $81 million to $84 million for the full year 2024.

Looking Ahead

Pulmonx's Q3 earnings call underscored the company's strong commercial performance, strategic initiatives, and commitment to expanding access to life-changing treatments for patients with severe emphysema and COPD. With a focus on operational efficiency, clinical advancements, and strategic partnerships, Pulmonx is well-positioned to continue its growth trajectory and make a significant impact in the respiratory treatment market.