Pulmonx Corp. Q4 FY2024 earnings call

Key Commercial Initiatives - In 2024, Pulmonx added 52 new U.S. centers, ending the year with 283 active accounts. - Focused on physician and patient education, including targeted advertising and partnerships like with the American Lung Association. - Launched the pilot of the LungTrax platform to streamline customer workflows. - Expanded in international markets, with Europe adopting U.S. sales strategies and China partnering with a new distributor. ### Clinical Initiatives - Launched the AeriSeal CONVERT II Pivotal Trial and Japanese post-market study. - Showcased data from the AeriSeal CONVERT Trial demonstrating successful conversion of collateral ventilation status in 77.6% of patients.

In the fourth quarter of 2024, worldwide sales were $23.8 million, a 23% increase from the prior year. U.S. revenue was $15.9 million (16% growth) and international revenue was $7.9 million (42% growth). For the full year 2024, worldwide revenue was $83.8 million, a 22% increase from 2023. U.S. revenue for the full year was $56.5 million (23% growth) and international revenue was $27.3 million (20% growth).

Revenue Guidance - Expected reported revenue for 2025 to be between $96 million and $98 million. - Constant currency revenue growth expected to be in the range of 16% to 18%. ### Gross Margin and Expenses - Anticipate gross margins for 2025 to be approximately 74%, trending higher in the second half. - Operating expenses for 2025 expected to be between $133 million and $135 million, including fully funding acquire, test, and treat initiatives.

Risks associated with the business are detailed in the Risk Factors section of Pulmonx's filings with the Securities and Exchange Commission, including their quarterly report on Form 10-Q filed on November 1, 2024.

Q: Frank Takkinen asked about quantifying 2025 growth rate first half vs second half.

A: Mehul Joshi said international business to grow strongly in first half with normal seasonality in Q3, U.S. to see growth in first half with acceleration in second half.

Q: Jon Young asked about LungTraX learnings and utilization.

A: Mehul Joshi mentioned positive customer feedback on integration, active sites sending scans, results similar to CHEST data.

Q: Larry Biegelsen asked why 2025 is below long-term 20% growth.

A: Steve Williamson said 2025 guidance is credible as programs rolled out in 2024 take time to get patients through system, expecting pickup in latter half of 2025 and tailwinds from Japanese post-approval study and AeriSeal launch.

Q: Joanne Wuensch asked about measuring investments in new centers, salespeople, etc.

A: Steve Williamson said direct-to-patient advertising measured by website traffic, therapy awareness specialists measured by COPD physicians' efficiency sending in StratX.

Q: Joseph Downing asked about gross margin interplay of scale, inflation, geographic mix.

A: Mehul Joshi said gross margin impacted by scale, geographic mix, and cost optimization, expecting margin to trend up with production volumes and cost reduction initiatives.