Pulmonx(US:LUNG)2025-11-12 22:30Financial Data and Key Metrics Changes - Total worldwide revenue for Q3 2025 was $21.5 million, a 5% increase from $20.4 million in Q3 2024, and a 4% increase on a constant currency basis [12] - US revenue in Q3 2025 was $14 million, a 1% increase from $13.8 million in the prior year [12] - International revenue for Q3 2025 was $7.5 million, a 15% increase compared to $6.6 million in the same period last year [12] - Gross margin for Q3 2025 was approximately 75%, up from 74% in the same period last year [12] - Net loss for Q3 2025 was $14 million, or $0.34 per share, compared to a $14.1 million net loss, or $0.36 per share, for the same period last year [15] - Adjusted EBITDA loss for Q3 2025 was $8.2 million, compared to $8.1 million in Q3 2024 [15] - Full year 2025 revenue guidance is updated to a range of $89-$90 million [16] Business Line Data and Key Metrics Changes - Research and development expenses for Q3 2025 were $4.8 million, an increase of 29% compared to $3.7 million in the prior year [13] - Sales, general, and administrative expenses for Q3 2025 were $25.6 million, up 1% from $25.4 million in Q3 2024 [14] Market Data and Key Metrics Changes - The company added nine new US centers during Q3 2025 [12] - Growth in international revenue was driven by major markets in Europe, partially offset by a reduction of revenue from China [12] Company Strategy and Development Direction - The company aims to improve execution and accelerate profitable growth while focusing on areas with the highest return on capital [9][10] - The management acknowledges the need to realign spending with growth expectations to return to a sustainable path to profitability [9] - The company plans to prioritize projects that deliver the greatest impact and align with sustainable, profitable growth [17] Management's Comments on Operating Environment and Future Outlook - Management recognizes challenges in the US market, including slowed growth and the need for improved execution [8][9] - There is optimism about the potential to enhance growth by aligning underperforming territories with those performing well [9] - The management is committed to extending the cash runway and improving operating leverage [15][44] Other Important Information - The company has a market-leading product, the Zephyr valves, which fulfill a significant unmet need in severe emphysema patients [6] - The company has established sufficient reimbursement for its products in nearly all countries where it operates [7] Q&A Session Summary Question: Exploration of alternate strategic pathways - Management is focused on ensuring profitable business operations and is not ready to speculate on alternative strategies at this early stage [20][22] Question: Reasons for US growth deceleration despite new center additions - Management acknowledges the complexity of the situation and is optimistic about improving performance in underperforming territories [23] Question: Addressing patient referral and workup process complexities - Management agrees on the complexity and emphasizes the need for efficient processes to move patients through treatment [26][27] Question: Guidance revision and confidence in achieving targets - Management provides a realistic view on guidance, acknowledging that some growth initiatives have not met expectations but sees opportunities for improvement [36][38] Question: Extending cash runway and reallocating expenses - Management confirms that extending the cash runway involves reallocating expenses to areas with better returns rather than seeking external financing [42][44] Question: Specific areas to pull back on in strategy - Management is not ready to discuss specific areas for pullback but is analyzing data to make informed decisions moving forward [46][47]