Pulmonx (LUNG) Q3 2024 earnings summary

Executive summary

• Achieved worldwide Q3 2024 revenue of $20.4 million, up 15.4% year-over-year, with US revenue up 17% and international revenue up 12%, driven by increased Zephyr Valve procedure volumes.

• Gross margin remained strong at 74% (73.7% rounded), unchanged year-over-year.

• Net loss for Q3 2024 was $14.1 million ($0.36 per share), improved from $14.9 million ($0.39 per share) in Q3 2023.

• Added 15 new active US accounts/treatment centers, ending Q3 with 280 active accounts, and reported positive long-term clinical data for Zephyr and AeriSeal products.

• For the nine months ended September 30, 2024, revenue rose 21.5% to $60.0 million, with a net loss of $43.2 million, down from $47.0 million in the prior year.

Financial highlights

• Q3 2024 gross margin was 74%, unchanged year-over-year, with gross profit of $15.0 million.

• Total operating expenses were $29.2 million, up 3% year-over-year, mainly due to higher commercial investments.

• Adjusted EBITDA loss improved to $8.1 million from $9.0 million year-over-year.

• Cash, cash equivalents, and marketable securities totaled $107.8 million as of September 30, 2024.

• Outstanding term loans and credit agreements: $37.2 million as of September 30, 2024.

Outlook and guidance

• Reiterated full-year 2024 revenue guidance of $81–$84 million, representing ~20% growth at the midpoint.

• Full-year gross margin expected at approximately 74%.

• Full-year operating expenses expected in the range of $122–$124 million, including ~$22 million in stock-based compensation.

• Management expects current cash and investments to fund operations for at least 12 months.

• Company expects to continue incurring net losses and plans further investment in R&D and commercial expansion.