Pulmonx Corporation ((LUNG)) has held its Q4 earnings call. Read on for the main highlights of the call.
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Pulmonx Corporation’s recent earnings call exhibited a mix of optimism and caution. The company reported robust revenue growth and made strides in international markets, which was tempered by ongoing financial challenges stemming from increased operating expenses and net losses. While the leadership expressed confidence in strategic initiatives to sustain growth, they also acknowledged the potential risks posed by foreign exchange fluctuations.
Strong Revenue Growth
Pulmonx celebrated a notable achievement in Q4 2024 with worldwide sales reaching $23.8 million, marking a 23% increase over the same period last year. For the full year 2024, the company reported $83.8 million in global revenue, a 22% growth compared to 2023. This strong performance underscores the company’s successful initiatives to boost sales and expand market presence.
Record International Sales
The company achieved record international sales of $7.9 million in Q4 2024, reflecting a 42% year-over-year growth. This impressive performance was particularly strong in European markets and was bolstered by successful expansion efforts in China, highlighting Pulmonx’s increasing global footprint.
Expansion of U.S. Account Base
In 2024, Pulmonx significantly expanded its U.S. account base, adding 52 new centers and ending the year with 283 active accounts. This expansion indicates the company’s growing influence and penetration in the U.S. market, setting the stage for future growth.
Notable Clinical Trials and Studies
The launch of the AeriSeal CONVERT II Pivotal Trial and the Japanese post-market study were key highlights. The successful conversion of collateral ventilation status in 77.6% of patients in the AeriSeal CONVERT Trial demonstrates Pulmonx’s commitment to advancing clinical research and improving patient outcomes.
Innovation and Product Launches
Pulmonx introduced the LungTrax platform and the new Chartis Precision Catheter, alongside launching its first U.S. TV commercial, which reached over 11 million people. These innovations and marketing efforts reflect the company’s focus on product enhancement and market visibility.
Positive Financial Metrics
Despite challenges, Pulmonx maintained a gross margin of 74% for fiscal year 2024, consistent with the previous year. The company also improved its adjusted EBITDA loss by 10% in Q4 2024 and by 20% for the full year, indicating positive financial management.
Operating Expenses Increase
The company’s total operating expenses for Q4 2024 were $31 million, a 9% increase over the previous year. For the full year, operating expenses rose by 6% compared to 2023, highlighting the financial pressures facing Pulmonx as it invests in growth.
Net Loss Persistence
Pulmonx reported a net loss of $13.2 million for Q4 2024, a slight improvement from the $13.9 million loss in the same quarter of the previous year. The full year net loss was $56.4 million, a 7% improvement over 2023, showing gradual progress in mitigating financial losses.
Impact of Foreign Exchange Fluctuations
The company anticipates a negative impact of approximately 100 basis points on reported revenue for 2025 due to foreign exchange fluctuations. This potential impact highlights the challenges of operating in diverse international markets.
Forward-Looking Guidance
Looking ahead, Pulmonx provided guidance for 2025, projecting revenue growth between $96 million and $98 million, equating to a 16% to 18% growth rate on a constant currency basis. The company expects gross margins to remain around 74%, with improvements anticipated in the second half due to higher production volumes and cost optimization. Operating expenses are projected between $133 million and $135 million, with a focus on scaling initiatives in the first half of the year to drive U.S. growth in the latter half, while maintaining strong international growth.
In conclusion, Pulmonx Corporation’s earnings call painted a picture of robust revenue growth and strategic advancements, tempered by financial challenges and market risks. The company’s commitment to innovation and expansion, coupled with its forward-looking guidance, underscores its ambition for sustainable growth. Investors and stakeholders should remain watchful of Pulmonx’s strategic execution and external economic factors that could influence its trajectory.
