Pulmonx Corporation has reported a record revenue of $17.7 million for the third quarter of 2023, marking a 31% year-on-year growth. The company also updated its full-year revenue guidance to be in the range of $67 million to $68 million, up from the previous guidance of $64 million to $66 million. Despite reporting a net loss, the company expressed confidence in their operational plans, revenue growth, and balance sheet strength.
Key takeaways from the call:
- Pulmonx's Q3 growth was primarily driven by strong performance in the US, with sales reaching $11.8 million, representing a 41% YoY growth.
- The company plans to invest in its commercial and educational capabilities to further penetrate the market and expand its base of highly capable centers.
- Pulmonx received reimbursement approval for its Zephyr Valve treatment in Japan and plans to start commercialization in the country next year.
- The company reported a net loss of $14.9 million or a loss of $0.39 per share, showing an improvement from a net loss of $14.2 million or a loss of $0.38 per share in the same period of the prior year.
- The company ended Q3 with $139.8 million in cash, cash equivalents, and marketable securities.
- Pulmonx is currently searching for a new CFO, with an interim CFO already appointed.
During the earnings call, CEO Glendon French provided information about the company's active accounts and optimized Zephyr programs. The company plans to make investments in geographies to drive greater productivity. When asked about the outlook for 2024, French stated that they have a strong foundation and will provide specific guidance in the coming months.
Regarding AeriSeal, Pulmonx has fully enrolled CONVERT 1 and plans to present the final data next year. They have a CE Mark in place and will commence a limited launch in CE Mark regulated countries. The timing and scale of commercialization will depend on the rate of enrollment in European centers and CONVERT 2.
In Japan, the company has obtained reimbursement and will commence a post-approval trial. The first 140 patients treated will be revenue-generating. The launch expenses will be factored into the 2024 guidance, which will be shared in the next quarter.
In terms of sales in Europe, the company attributes the relative performance in the third quarter to seasonality, with the expectation of a stronger fourth quarter. They are direct in 97% of their global revenue. The company discussed the adoption of their technology in various centers and geographies, mentioning that around 8-10% of centers in the US are currently using their sensors. They also highlighted that they have productive referral centers both in major cities and outside, where people prefer not to travel to big cities for treatment.
Regarding their CONVERGE studies, they expect similar patient behavior and success rates in CONVERT 2 as seen in CONVERT 1, which indicated successful conversion of nearly 80% of CV positive patients to CV negative. They expressed confidence in the data from CONVERT 1 and its ability to provide insights for CONVERT 2.
The company concluded the call by expressing satisfaction with their quarterly performance and the resonance of their plan with customers.
InvestingPro Insights
In light of the recent financial report from Pulmonx Corporation, InvestingPro provides some pertinent tips and data. According to InvestingPro, Pulmonx has seen accelerating revenue growth, which aligns with the company's reported 31% YoY growth in the third quarter of 2023. This is further supported by the InvestingPro data showing a revenue growth of 17.31% over the last twelve months as of Q2 2023.
InvestingPro Tips also highlight that Pulmonx holds more cash than debt on its balance sheet, a fact echoed by the company's reported $139.8 million in cash, cash equivalents, and marketable securities at the end of Q3. However, the company's earnings per share have been on a declining trend, and analysts do not anticipate the company will be profitable this year, as reflected in the reported net loss.
InvestingPro data reveals that Pulmonx's market cap stands at $300.04 million, with a negative P/E ratio of -4.94 and a future adjusted P/E ratio of -5.47 as of Q2 2023. The company's stock price has taken a significant hit over the last three months, decreasing by 43.64%, which may be of interest to potential investors.
In conclusion, while Pulmonx shows promise with its accelerating revenue growth and strong cash position, the declining earnings per share and lack of profitability are areas of concern. For more tips and insights, consider exploring the InvestingPro platform, which offers additional tips for a comprehensive understanding of your investments.
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