Pulmonx (LUNG) 2024 Wells Fargo Healthcare Conference summary

Key business insights and operational focus

• Leadership is prioritizing increased utilization and programmatic growth at major medical centers, emphasizing workflow improvements and patient experience to drive referrals and expand the addressable market.

• Marketing efforts generated 20,000 initial patient contacts in H1 2024, with targeted advertising in regions with established workflows to maximize conversion rates.

• U.S. sales are expected to outpace international growth in the near term, but international markets, including Japan and China, are positioned for significant expansion by 2025-2026.

• Workflow initiatives like LungTrax Connect are being piloted to streamline patient processing and reduce time-to-treatment, aiming to prevent patient drop-off and improve operational efficiency.

• Management is shifting away from reporting utilization metrics due to data limitations, focusing instead on revenue growth and center expansion as primary performance indicators.

Financial performance and guidance

• Achieved 30% growth in Q1 and 21% in Q2 2024, reaffirming guidance and maintaining operational stability despite recent management changes.

• Guidance for the second half of 2024 is conservative due to uncertainty around Q3 seasonality and vacation schedules, with no quarterly guidance provided.

• Management maintains confidence in reaching break-even with current cash, supported by ongoing revenue growth, gross margin improvements, and disciplined OpEx management.

• No specific revenue or timing targets for break-even have been disclosed.

Clinical and product development updates

• Two major clinical trials are underway: a Japanese post-approval study (enrollment ending early 2026) and the CONVERT-2 trial, with international launch of AeriSeal expected in 2026.

• CONVERT-1 data showed a 78% conversion rate and significant patient benefit, supporting a step-function expansion of the total addressable market.

• AeriSeal has E.U. MDR approval, enabling a 2026 launch outside the U.S. upon trial completion; U.S. launch awaits PMA approval post-trial.

• Enrollment for both CONVERT-2 and the Japanese study is on track, with international trial sites being leveraged for faster completion.