Pulmonx Reports Fourth Quarter and Full Year 2023 Financial Results
- Record worldwide revenue of $68.7 million for 2023, a 28% increase over 2022
- Gross margin of 74-75% in 2023, reflecting production efficiencies and improved pricing
- Achieved $19.3 million in revenue for Q4 2023, a 25% increase over the same period in 2022
- Added 14 new Zephyr Valve U.S. treatment centers in Q4 2023
- Received FDA approval for CONVERT II pivotal study for AeriSeal System
- Expects revenue for 2024 to be in the range of $81-84 million
- Net loss of $60.8 million for full year 2023
- Increase in operating expenses by 14% for full year 2023
- Adjusted EBITDA loss of $39.0 million for full year 2023
Insights
The reported financial results of Pulmonx Corporation showcase a significant growth trajectory, with a 28% increase in worldwide revenue for the full year of 2023. This growth is particularly noteworthy in the U.S. market, where revenue growth exceeded 40%. The company's ability to achieve a gross margin of 74-75% is a testament to its operational efficiency, indicating strong cost management and pricing strategies. However, the reported net loss and adjusted EBITDA loss highlight ongoing challenges in achieving profitability.
Investors should consider the potential for Pulmonx's continued growth against the backdrop of increasing operating expenses, which have risen by 14% year-over-year. The company's guidance for 2024 suggests an expectation of revenue growth and stable gross margins, yet operating expenses are projected to increase further. While the company's investment in commercial activities and clinical development is essential for long-term growth, the short-term impact on profitability and cash flow should be scrutinized.
Finally, the company's strong cash position of $131.5 million offers a cushion for future investments and operational needs. However, the projected operating expenses for 2024, inclusive of non-cash stock-based compensation, will likely continue to impact the company's financial health. Investors should weigh the company's growth prospects against these financial realities when considering the stock's potential performance.
The approval of the CONVERT II pivotal study for the AeriSeal System by the FDA is a critical step for Pulmonx. This represents an opportunity to expand the company's product portfolio and address a broader range of lung diseases. The medical community will be closely watching the progress of this study, as its results could have significant implications for the treatment of lung diseases and Pulmonx's market position.
Additionally, the expansion of 14 new Zephyr Valve U.S. treatment centers indicates a growing adoption of Pulmonx's minimally invasive treatments. This expansion is a positive sign for the company's commercial strategy and suggests a growing acceptance of their technology among healthcare providers. As adoption increases, so too does the potential for market penetration and revenue growth, particularly within the substantial addressable patient population mentioned by the CEO.
However, it is important to note that the success of these initiatives hinges on continued clinical validation and favorable reimbursement policies. The competitive landscape in medical devices for lung diseases is dynamic and Pulmonx must navigate these complexities to maintain and enhance its market presence.
From a market perspective, Pulmonx's performance in the U.S. market, with a 45% year-over-year growth, outpaces the international segment, which has seen a 7% decrease in the same period. This divergence suggests that the company's U.S. commercial strategy is more effective and may be a result of different market dynamics or the company's focused efforts in that region. The international market's decline, especially when considering constant currency, raises questions about the company's global strategy and potential headwinds such as competition, market saturation, or reimbursement issues.
The company's future growth prospects hinge on its ability to sustain and improve upon the operational efficiencies that have led to high gross margins. The medical device industry often faces pricing pressures and regulatory challenges that can impact margins, making Pulmonx's reported efficiencies particularly notable. Investors and industry analysts should monitor how Pulmonx manages these pressures while expanding its market share.
Overall, the company's forward-looking statements regarding expected revenue and gross margins for 2024 provide a positive outlook, but the anticipated increase in operating expenses may temper investor enthusiasm. The balance between growth-driven expenditures and the need for cost control will be a key factor in assessing the company's future financial health and stock performance.
REDWOOD CITY, Calif., Feb. 21, 2024 (GLOBE NEWSWIRE) -- Pulmonx Corporation (Nasdaq: LUNG) (“Pulmonx” or the "Company"), a global leader in minimally invasive treatments for lung disease, today reported financial results for the fourth quarter and full year of 2023 ended December 31, 2023.
Recent Highlights
- Delivered
$68.7 million in worldwide revenue for the full year of 2023, a28% increase over the prior year - Achieved record worldwide revenue of
$19.3 million for the fourth quarter of 2023, a25% increase over the same period last year and an increase of23% in constant currency - Set new records of
$13.7 million and$45.9 million in U.S. revenue for the fourth quarter 2023 and the full year 2023, representing45% and41% year-over-year growth, respectively - Realized gross margin of
75% in the fourth quarter of 2023 and74% for the full year of 2023 - Added 14 new Zephyr Valve U.S. treatment centers in the fourth quarter 2023
- Received Food and Drug Administration approval to commence CONVERT II pivotal study for AeriSeal System
“Our performance throughout 2023 consistently demonstrated the success of our focused U.S. commercial strategy and our ability to further expand access to our Zephyr Valve treatment within our substantial addressable patient population. Our success, particularly in the U.S., leaves us confident that our business is better positioned than ever for long-term, sustainable growth,” said Glen French, President & Chief Executive Officer. “In 2024, we look forward to further expanding and strengthening our account base.”
Fourth Quarter 2023 Financial Results
Total worldwide revenue in the fourth quarter of 2023 was
Gross profit in the fourth quarter of 2023 was
Operating expenses in the fourth quarter of 2023 were
Net loss in the fourth quarter of 2023 was
Adjusted EBITDA loss in the fourth quarter of 2023 was
Full Year 2023 Financial Results
Total worldwide revenue for the full year of 2023 was
Gross profit for the full year of 2023 was
Operating expenses for the full year of 2023 were
Net loss for the full year of 2023 was
Adjusted EBITDA loss for the full year of 2023 was
Cash, cash equivalents, and marketable securities totaled
Full Year 2024 Financial Guidance
Pulmonx expects revenue for the full year 2024 to be in the range of
The Company expects gross margin for the full year 2024 to fall within the range of
Pulmonx expects total operating expenses for the full year 2024 to fall within the range of
Webcast and Conference Call Details
Pulmonx will host a conference call today, February 21, 2024, at 1:30 p.m. PT / 4:30 p.m. ET to discuss its fourth quarter and full year 2023 financial results and to discuss its full year 2024 financial guidance. A live webcast of the conference call will be available on the Investor Relations section of the Company's website at https://investors.pulmonx.com/. The webcast will be archived on the website following the completion of the call.
Use of Non-GAAP Financial Measures
To supplement Pulmonx’s condensed consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, Pulmonx provides certain non-GAAP financial measures in this release as supplemental financial metrics. Non-GAAP financial measures reflect an additional way of viewing aspects of the Company's operations that, when viewed with GAAP results, may provide a more complete understanding of factors and trends affecting Pulmonx’s business.
Constant currency calculations show reported current period revenues as if the foreign exchange rates remain the same as those in effect in the comparable prior year period. Pulmonx uses results on a constant currency basis as one measure to evaluate its performance. Pulmonx calculates constant currency by calculating current-year results using foreign currency exchange rates from the applicable comparable period in the prior year. Pulmonx generally refers to such amounts calculated on a constant currency basis as excluding the impact of foreign exchange or being on a constant currency basis. Pulmonx believes the presentation of results on a constant currency basis in addition to reported results helps improve investors’ ability to understand its operating results and evaluate its performance in comparison to prior periods. Pulmonx generally uses constant currency to facilitate management's financial and operational decision-making, including evaluation of Pulmonx’s historical operating results.
The Company defines Adjusted EBITDA as earnings before interest income or expense, taxes, depreciation and amortization and stock-based compensation and may also exclude certain non-recurring, irregular or one-time items not reflective of our ongoing core business operations. Management believes in order to properly understand short-term and long-term financial trends, investors may wish to consider the impact of these excluded items in addition to GAAP measures. Further, management uses adjusted EBITDA for strategic and annual operating planning. We believe these non-GAAP financial measures are useful as a supplement in evaluating our ongoing operational performance and enhancing an overall understanding of our past financial performance.
Reconciliation of these non-GAAP financial measures to the most comparable GAAP measures is set forth in the tables below.
The non-GAAP financial measures used by Pulmonx should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. Because non-GAAP financial measures exclude the effect of items that increase or decrease the company's reported results of operations, management strongly encourages investors to review, when they become available, the Company's consolidated financial statements and publicly filed reports in their entirety. The Company's definition of non-GAAP measures may differ from similarly titled measures used by others.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on management’s current assumptions and expectations of future events and trends, which affect or may affect our strategy, operations or financial performance, and actual results may differ materially from those expressed or implied in such statements due to numerous risks and uncertainties. These forward-looking statements include, but are not limited to, statements regarding our commercial strategy to boost workflow efficiencies across our account base, our expectations regarding account activity and productivity, advancement of our AeriSeal clinical development program toward commencement of our U.S. clinical trial, the timing of trial enrollment and data results from the CONVERT II trial and our possible or assumed future results of operations, including long-term outlook, descriptions of our revenues, total operating expenses, gross margin, profitability, guidance for full year 2024, commercial momentum, physician engagement and awareness of the benefits of the Zephyr Valve, the ability to expand and strengthen our account base and overall business strategy. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Factors that could cause actual results to differ materially from those contemplated in this press release can be found in the Risk Factors section of our filings with the Securities and Exchange Commission (“SEC”), including our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2023 filed with the SEC on November 3, 2023, available at www.sec.gov. Because forward-looking statements are inherently subject to risks and uncertainties, you should not rely on these forward-looking statements as predictions of future events. All statements other than statements of historical fact are forward-looking statements. Except to the extent required by law, we undertake no obligation to update or review any estimate, projection, or forward-looking statement. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in our business.
About Pulmonx Corporation
Pulmonx Corporation (Nasdaq: LUNG) is a global leader in minimally invasive treatments for chronic obstructive pulmonary disease (COPD). Pulmonx’s Zephyr® Endobronchial Valve, Chartis® Pulmonary Assessment System and StratX® Lung Analysis Platform are designed to assess and treat patients with severe emphysema/COPD who despite medical management are still profoundly symptomatic. Pulmonx received FDA pre-market approval to commercialize the Zephyr Valve following its designation as a “breakthrough device.” The Zephyr Valve is commercially available in more than 25 countries, is included in global treatment guidelines and is widely considered a standard of care treatment option for improving breathing, activity and quality of life in patients with severe emphysema. For more information on the Zephyr Valves and the company, please visit www.Pulmonx.com.
Pulmonx®, AeriSeal®, Chartis®, StratX®, and Zephyr® are registered trademarks of Pulmonx Corporation.
Investor Contact
Brian Johnston
Gilmartin Group
investors@pulmonx.com
| Pulmonx Corporation | ||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||
| (in thousands, except share and per share data) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Revenue | $ | 19,278 | $ | 15,425 | $ | 68,675 | $ | 53,662 | ||||||||
| Cost of goods sold | 4,878 | 4,241 | 17,923 | 13,797 | ||||||||||||
| Gross profit | 14,400 | 11,184 | 50,752 | 39,865 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Research and development | 3,896 | 3,903 | 18,080 | 15,397 | ||||||||||||
| Selling, general and administrative | 24,423 | 21,908 | 94,607 | 83,105 | ||||||||||||
| Total operating expenses | 28,319 | 25,811 | 112,687 | 98,502 | ||||||||||||
| Loss from operations | (13,919 | ) | (14,627 | ) | (61,935 | ) | (58,637 | ) | ||||||||
| Interest income | 1,541 | 748 | 5,568 | 1,529 | ||||||||||||
| Interest expense | (905 | ) | (359 | ) | (3,232 | ) | (1,066 | ) | ||||||||
| Other income (expense), net | (357 | ) | 201 | (673 | ) | (396 | ) | |||||||||
| Net loss before tax | (13,640 | ) | (14,037 | ) | (60,272 | ) | (58,570 | ) | ||||||||
| Income tax expense | 248 | 246 | 571 | 353 | ||||||||||||
| Net loss | $ | (13,888 | ) | $ | (14,283 | ) | $ | (60,843 | ) | $ | (58,923 | ) | ||||
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.36 | ) | $ | (0.38 | ) | $ | (1.60 | ) | $ | (1.59 | ) | ||||
| Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 38,377,404 | 37,379,644 | 37,974,567 | 37,096,541 | ||||||||||||
| Pulmonx Corporation | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (in thousands) | ||||||||
| (Unaudited) | ||||||||
| December 31, 2023 | December 31, 2022 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 83,547 | $ | 101,736 | ||||
| Restricted cash | 237 | 231 | ||||||
| Short-term marketable securities | 33,555 | 39,402 | ||||||
| Accounts receivable, net | 12,105 | 8,677 | ||||||
| Inventory | 16,743 | 14,564 | ||||||
| Prepaid expenses and other current assets | 4,235 | 4,343 | ||||||
| Total current assets | 150,422 | 168,953 | ||||||
| Long-term marketable securities | 14,390 | 5,924 | ||||||
| Long-term inventory | 2,580 | 5,283 | ||||||
| Property and equipment, net | 4,028 | 4,694 | ||||||
| Goodwill | 2,333 | 2,333 | ||||||
| Intangible assets, net | 31 | 154 | ||||||
| Right of use assets | 3,406 | 5,806 | ||||||
| Other long-term assets | 591 | 529 | ||||||
| Total assets | $ | 177,781 | $ | 193,676 | ||||
Liabilities and Stockholders' Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 1,497 | $ | 1,758 | ||||
| Accrued liabilities | 16,234 | 13,276 | ||||||
| Income taxes payable | 93 | 19 | ||||||
| Deferred revenue | 104 | 120 | ||||||
| Short-term debt | 2,155 | 90 | ||||||
| Current lease liabilities | 3,074 | 3,229 | ||||||
| Total current liabilities | 23,157 | 18,492 | ||||||
| Deferred tax liability | 114 | 94 | ||||||
| Long-term lease liabilities | 1,106 | 3,849 | ||||||
| Long-term debt | 35,089 | 17,234 | ||||||
| Total liabilities | 59,466 | 39,669 | ||||||
| Stockholders' equity | ||||||||
| Common stock | 39 | 38 | ||||||
| Additional paid-in capital | 526,797 | 502,712 | ||||||
| Accumulated other comprehensive income | 2,640 | 1,575 | ||||||
| Accumulated deficit | (411,161 | ) | (350,318 | ) | ||||
| Total stockholders' equity | 118,315 | 154,007 | ||||||
| Total liabilities and stockholders' equity | $ | 177,781 | $ | 193,676 | ||||
| Pulmonx Corporation | ||||||||||||||||
| Reconciliation of Reported Revenue % Change to Constant Currency Revenue % Change | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended December 31, | ||||||||||||||||
| 2023 | 2022 | % Change | FX Impact % | Constant Currency % Change | ||||||||||||
| United States | $ | 13,720 | $ | 9,455 | 45.1 | % | — | % | 45.1 | % | ||||||
| International | 5,558 | 5,970 | (6.9 | )% | 5.0 | % | (11.9 | )% | ||||||||
| Total | $ | 19,278 | $ | 15,425 | 25.0 | % | 2.0 | % | 23.0 | % | ||||||
| Twelve Months Ended December 31, | ||||||||||||||||
| 2023 | 2022 | % Change | FX Impact % | Constant Currency % Change | ||||||||||||
| United States | $ | 45,917 | $ | 32,486 | 41.3 | % | — | % | 41.3 | % | ||||||
| International | 22,758 | 21,176 | 7.5 | % | 1.3 | % | 6.2 | % | ||||||||
| Total | $ | 68,675 | $ | 53,662 | 28.0 | % | 0.5 | % | 27.5 | % | ||||||
| Pulmonx Corporation | ||||||||||||||||
| Reconciliation of Net Loss to Non-GAAP Adjusted EBITDA | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| GAAP Net loss | $ | (13,888 | ) | $ | (14,283 | ) | $ | (60,843 | ) | $ | (58,923 | ) | ||||
| Depreciation and amortization | 287 | 386 | 1,548 | 1,513 | ||||||||||||
| Stock-based compensation | 5,598 | 4,247 | 22,101 | 16,445 | ||||||||||||
| Interest (income)/expense, net | (636 | ) | (389 | ) | (2,336 | ) | (463 | ) | ||||||||
| Provision for income taxes | 248 | 246 | 571 | 353 | ||||||||||||
| Adjusted EBITDA | $ | (8,391 | ) | $ | (9,793 | ) | $ | (38,959 | ) | $ | (41,075 | ) | ||||
FAQ
What was Pulmonx's total worldwide revenue for 2023?
What was the gross margin for Pulmonx in Q4 2023?
How much revenue did Pulmonx generate in the U.S. for Q4 2023?
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What is Pulmonx's revenue guidance for 2024?
