Pulmonx(US:LUNG)2024-10-31 10:54Financial Data and Key Metrics Changes - Total worldwide revenue for Q3 2024 was $20.4 million, a 15% increase year-over-year, with U.S. revenue at $13.8 million (17% growth) and international revenue at $6.6 million (12% growth) [8][31][32] - Gross margin for Q3 2024 remained at 74%, consistent with the prior year, reflecting improved capacity utilization [32] - Net loss for Q3 2024 was $14.1 million, or a loss of $0.36 per share, compared to a net loss of $14.9 million, or a loss of $0.39 per share in the same period last year [35] - Adjusted EBITDA loss improved to $8.1 million from $9 million in Q3 2023, marking a 10% year-over-year improvement [36] Business Line Data and Key Metrics Changes - The company added 15 new accounts in the U.S. in Q3, ending with 280 active accounts, which are defined as centers that placed a revenue-generating order in the quarter [14] - The LungTraX Platform is in pilot release, aimed at streamlining workflows and identifying patients eligible for Zephyr Valves, although it is not yet generating direct revenue [16][19] Market Data and Key Metrics Changes - International revenue growth was driven by recurring orders from a new distributor in China, contributing to a 12% year-over-year increase despite seasonal dynamics [21] - The company is optimistic about the Japanese market, expecting material revenue contributions by 2026, with ongoing post-market surveillance studies showing positive reception [23] Company Strategy and Development Direction - The commercial strategy is built on three pillars: training physicians, automating patient workflows, and building awareness of Zephyr Valves among COPD physicians and patients [11][20] - The company is focused on expanding its global footprint and increasing the number of patients treated with Zephyr Valves through the AeriSeal clinical development program [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the previously communicated revenue guidance of $81 million to $84 million for the full year 2024, representing approximately 20% growth at the midpoint [10][38] - The company is optimistic about the demand for its solutions and the potential for significant and sustained growth, particularly in underserved patient populations [12][13] Other Important Information - The company ended Q3 2024 with $107.8 million in cash, cash equivalents, and marketable securities, a decrease of $6.8 million from the previous quarter [37] - The company is executing a cost optimization program, with total operating expenses for Q3 2024 at $29.2 million, a 3% increase year-over-year [33] Q&A Session Summary Question: Guidance clarification - Management reiterated revenue guidance for the year, citing overperformance in Q1 and significant seasonality in Q3 as reasons for not adjusting guidance [44][45] Question: OpEx adjustments - Management explained that the reduction in OpEx guidance is primarily due to lower non-revenue generating spend and stock-based compensation expenses [49][50] Question: OUS market outlook - Management expressed optimism about the OUS market, particularly in China and Europe, and noted that growth is expected to continue [52][53] Question: 2025 expectations - Management refrained from providing specific guidance for 2025 but indicated that early signs of momentum from strategic initiatives are promising [58][59] Question: Economic benefits for C-suite - Management highlighted the importance of addressing the underserved patient population and the economic value proposition of the Zephyr treatment in discussions with C-suite executives [65][66]