Pulmonx(US:LUNG)2025-07-30 21:30Financial Data and Key Metrics Changes - Total worldwide revenue for Q2 2025 was $23.9 million, a 15% increase from $20.8 million in the same period last year, and a 13% increase on a constant currency basis [25][26] - U.S. revenue reached $14.7 million, a 6% increase from $13.9 million in the prior year period, although below expectations due to challenging comparisons [26] - International revenue was a record $9.1 million, a 32% increase compared to $6.9 million in the same period last year, and a 27% increase on a constant currency basis [26][28] - Gross margin for Q2 2025 was 72%, down from 74% in the same period last year, primarily due to a shift in geographic revenue mix [28] - Net loss for Q2 2025 was $15.2 million, or a loss of $0.38 per share, compared to a net loss of $15.3 million, or a loss of $0.39 per share for the same period last year [30] Business Line Data and Key Metrics Changes - The U.S. business experienced slower growth in procedure volume, attributed to a decline in conventional scans and operational pressures at interventional pulmonology centers [7][10] - International business showed robust growth across all key regions, reinforcing the effectiveness of foundational investments made in education and market development [6][26] - The company opened 12 new screening centers and trained 26 new physicians in Q2, expanding capacity and patient access [16] Market Data and Key Metrics Changes - Lung cancer screening is rapidly scaling, nearly tripling since 2020, generating millions of CT scans annually, with an estimated 15% showing valve-eligible emphysema [18] - The company expects a return to typical seasonality in the second half of the year, with continued momentum in direct markets across Europe and Asia [33] Company Strategy and Development Direction - The company is revising its full-year 2025 revenue guidance to a range of $90 million to $92 million, reflecting a recalibration based on timing rather than a shift in strategic direction [10][31] - The strategy focuses on expanding the funnel, improving conversion, and accelerating adoption of the Zephyr valve therapy through direct-to-patient campaigns and enhanced clinician engagement [12][13] - The company is committed to building an ecosystem for long-term sustainable growth, investing in clinical training, and advancing its clinical programs [22][36] Management's Comments on Operating Environment and Future Outlook - Management views current operational challenges as future tailwinds, particularly the rise of lung cancer screening, which is expected to increase imaging volume and enable timely intervention [8][10] - The company remains confident in its long-term growth trajectory, citing positive signals across major initiatives and a commitment to transparency with stakeholders [23][24] Other Important Information - The company is closely monitoring the global trade environment and evolving tariff policies, but does not anticipate any material near-term impact on gross margin [33][34] - The company has a strong balance sheet and disciplined execution-focused operating plan, expecting cash burn to track at or below 2024 levels [36] Q&A Session Summary Question: Follow-up on revised guidance and expected contributions from Q3 and Q4 - Management indicated that international revenue growth is consistent with initial guidance, while U.S. growth is expected to be slower than originally anticipated due to the ramp-up of growth initiatives [41][42] Question: Clarification on StratEx scanning trends and operational distractions - Management explained that capacity constraints from lung cancer screening and biopsies have impacted StratEx procedures, but recent initiatives have led to record levels of scanning in June and July [50][52] Question: Understanding the guidance framing and competitive dynamics - Management emphasized that the guidance is conservatively framed, focusing on the timing of patient treatments and the need for hospital systems to expand capacity for treating underserved populations [62][68]