Pulmonx(US:LUNG)2022-02-24 03:36Financial Data and Key Metrics Changes - For the full year 2021, the company reported worldwide sales of $48.4 million, representing a 48% increase over 2020, with three consecutive quarters of record sales [6][12] - Total worldwide revenue for Q4 2021 was $13.7 million, a 39% increase from $9.8 million in Q4 2020, and a 40% increase on a constant currency basis [14][16] - Gross margin for Q4 2021 was 74.8%, up from 72.0% in the prior year period, driven by improved production efficiencies [16][17] - Net loss for Q4 2021 was $13 million, or a loss of $0.35 per share, compared to a net loss of $9.3 million, or a loss of $0.27 per share in the same period of the prior year [20] Business Line Data and Key Metrics Changes - U.S. revenue in Q4 2021 was $7.3 million, a 49% increase from $4.9 million during the prior year period, reflecting strong procedure growth [14][15] - International revenue in Q4 2021 was $6.4 million, a 30% increase from $5 million during the same period last year [16] Market Data and Key Metrics Changes - The company expanded its U.S. treating centers by 45% to 214 centers in 2021, exceeding its target of 200 centers [6][7] - The company secured 10 positive coverage policies, adding coverage for over 50 million lives across the U.S. [7] Company Strategy and Development Direction - The company plans to continue expanding its commercial initiatives in 2022, targeting approximately 280 U.S. treating centers by the end of the year [9][10] - The company anticipates regulatory approval for the Zephyr valve in Japan by the end of 2022, with plans to launch commercial efforts in the back half of 2023 [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundamentals of the business despite the impact of COVID-19, noting strong underlying demand for the Zephyr valve treatment [9][12] - The company expects first quarter 2022 revenues to be similar to Q1 2021, in the range of $9 million to $10 million, with a recovery anticipated in Q2 [8][21] Other Important Information - Total operating expenses for Q4 2021 were $22.6 million, a 38% increase from $16.4 million in Q4 2020 [18][19] - The company ended Q4 2021 with $191 million in cash, cash equivalents, and marketable securities, a decrease of $11.7 million from Q3 2021 [20] Q&A Session Summary Question: Can you discuss the assumptions behind the guidance? - Management indicated that the guidance reflects a weak first quarter due to the Omicron variant impacting all major geographies simultaneously, but they are optimistic about recovery [24][25] Question: Is the Q1 guidance implying a quicker rebound? - Management noted that while the first quarter is expected to be weak, they anticipate a strong recovery as hospitals begin to reopen procedures [31][32] Question: How is the international market performing? - Management acknowledged that the international market, particularly in German-speaking regions, was impacted more severely than expected due to the Delta variant [48][49] Question: What are the expectations for gross margin? - Management expressed confidence in maintaining gross margins between 74% and 75% in 2022, with long-term expectations of reaching the high 70% range as production volumes increase [17][53]