Pulmonx (LUNG) Stifel 2024 Healthcare Conference summary

Commercial strategy and growth initiatives

• Enhanced three-pronged strategy focuses on building high-performing Zephyr Valve centers, improving workflow, and increasing patient and physician awareness.

• Workflow optimization identified as a key growth limiter, addressed through the beta launch of the LungTraX product to automate and identify patients.

• Patient engagement up 150% year-over-year, with over 34,000 initial contacts in the first three quarters.

• Collaboration with the American Lung Association to educate physicians and align early detection efforts for severe emphysema and lung cancer.

• Geographic expansion and peer-to-peer education are driving growth in both U.S. and international markets.

Financial performance and guidance

• Maintained 2024 guidance despite market expectations for a reduction, with strong Q1 and Q2 growth and a seasonal dip in Q3.

• Q4 expected to rebound, with confidence in meeting revenue targets and slight adjustments to gross margin and OpEx guidance.

• OUS (outside U.S.) revenue projected at $26 million out of $82–83 million for 2024, with 12% OUS growth in Q3.

• New distributor agreement in China is boosting top-line growth and expected to drive higher growth in 2026.

• No 2025 guidance provided yet; focus remains on delivering 2024 commitments.

Product development and innovation

• LungTraX beta release aims to streamline workflow and patient identification, integrating with hospital PACS systems for easier use.

• Early feedback from physicians is positive, with ongoing learnings from the beta phase and plans for broader rollout.

• AeriSeal, a next-generation product, is in clinical trials in Europe and the U.S., with European rollout expected in 2026 and U.S. approval around 2027.

• R&D spending decreased in 2024 due to project completions but will rise as new trials and projects ramp up, especially CONVERT II.

• Continued investment in software innovation expected to drive future value.