Pulmonx Corporation Q2 FY2025 earnings call

• International business excelled with $9.1 million in revenue, showing robust growth across key regions. - U.S. revenue was $14.7 million with slower-than-expected procedure volume growth due to factors like StratX scan decline and operational pressures. - New commercial initiatives like direct-to-patient campaigns, TAS role, clinical training, and LungTraX Detect are gaining traction but taking longer to convert. - Revised full year 2025 revenue guidance from $96M-$98M to $90M-$92M, driven by longer ramp-up time of U.S. initiatives. - Committed to scaling the platform with discipline, balancing strategic execution and financial management.

Total worldwide revenue for the 3 months ended June 30, 2025, was $23.9 million, a 15% increase from the prior year. U.S. revenue in the second quarter reached $14.7 million, a 6% increase but below expectations. International revenue was a record $9.1 million, a 32% increase. Gross margin for the second quarter was 72% compared to 74% in the prior year. Total operating expenses were $32 million, up 3% from the prior year.

• Revised full year 2025 revenue guidance to a range of $90 million to $92 million from $96 million to $98 million. - Reaffirmed full year gross margin outlook of approximately 74%. - Revised full year 2025 operating expense guidance to a range of $128 million to $130 million from $133 million to $135 million, reflecting cost efficiency initiatives. - Cash burn expected to track at or below 2024 levels.

Forward-looking statements involve material risks and uncertainties that could cause actual results to differ from expectations, including risks related to clinical trial outcomes, expense management, market adoption, and currency fluctuations as detailed in Pulmonx's SEC filings.

Q: Hoping to parse out Q3 versus Q4 expected contribution and U.S. versus OUS growth.

A: Mehul explained international growth was robust in first half, U.S. will grow in second half but not as expected. Q3 likely flat to prior year, Q4 to be determined. U.S. revenue was 62% of total in first half, expected to be at least 2/3 in second half.

Q: Follow up on StratX scanning trends and June/July record scanning.

A: Steven said StratX declined early in the year but pilot sites ramped up. June/July had record scanning due to pilot sites ramping up, contracting processes, and integration of cancer screening and COPD detection.

Q: How guidance is framed.

A: Steven stated guidance is multivariant, considering speed of patient treatments, OUS growth is confident, U.S. rebound slower than expected, so guidance is conservative with potential upside if initiatives kick in faster.