Back

Pulmonx Reports Second Quarter 2022 Financial Results

Aug 2, 2022PDF Version

REDWOOD CITY, Calif., Aug. 02, 2022 (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 second quarter ended June 30, 2022.

Recent Highlights

  • Achieved a new high in worldwide revenue of $14.0 million in the second quarter of 2022, a 14% increase over the same period last year and an increase of 19% on a constant currency basis
  • Realized gross margin of 75% in the second quarter of 2022 as compared to 74% in the same period last year
  • Added 18 new U.S. treatment centers for Zephyr Valves in the second quarter 2022, increasing total U.S. treatment centers to 248
  • Study published in the American Journal of Respiratory and Critical Care Medicine showing that a reduction in hyperinflation using Zephyr Valves was shown to improve cardiac function in severe COPD/emphysema patients

“We are pleased with our performance, which reflects our strongest quarter of U.S. sales to date, driven by procedure volumes, new account openings, and our patient engagement initiatives,” said Glen French, President & Chief Executive Officer. “We remain confident in our full year outlook and continue to prudently manage our business to ensure long-term growth and success.”

Second Quarter 2022 Financial Results
Total worldwide revenue in the second quarter of 2022 was $14.0 million, a 14% increase from $12.2 million in the second quarter of 2021 and an increase of 19% on a constant currency basis. U.S. revenue was $8.6 million, a 31% increase from the second quarter of 2021. International revenue was $5.3 million, a 5% decrease compared to the second quarter of 2021, and a 4% increase on a constant currency basis. The increase in U.S. revenue reflects continued commercial momentum and growth of Zephyr Valve procedure volumes, while the change in international revenue reflects negative impact from foreign currency exchange rates.

Gross profit in the second quarter of 2022 was $10.4 million, a 15% increase compared to $9.0 million for the second quarter of 2021. Gross margin for the second quarter of 2022 was 75%, up from 74% for the same period in 2021. The improvement in gross margin reflects benefits from production efficiencies.

Operating expenses in the second quarter of 2022 were $24.8 million, compared to $21.7 million for the second quarter of 2021, representing an increase of 14%. The increase in operating expenses was driven primarily by an increase in spending on commercial infrastructure and activity, and an increase in non-cash stock-based compensation.

Net loss in the second quarter of 2022 was $14.6 million, or $0.40 per share, compared to a net loss of $13.0 million, or $0.36 per share, for the same period in 2021.

Cash, cash equivalents, and marketable securities totaled $166.8 million as of June 30, 2022.

2022 Financial Outlook
Pulmonx continues to expect revenue for the full year 2022 to be in the range of $55 million to $60 million.

The Company also continues to expect total operating expenses for the full year 2022 to fall within the range of $100 million to $105 million inclusive of stock-based compensation.

Webcast and Conference Call Details
Pulmonx will host a conference call today, August 2, 2022, at 1:30 p.m. PT / 4:30 p.m. ET to discuss its second quarter 2022 financial results. Investors interested in listening to the conference call should register online. Participants are required to register a day in advance or at minimum 15 minutes before the start of the call. 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
Pulmonx has presented constant currency percentage change in revenues, a non-GAAP financial measure, in this press release. 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. Reconciliation of this non-GAAP financial measure to the most comparable GAAP measure is set forth in the tables below.

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. 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.

This non-GAAP financial measure 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 the Company’s business, 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. Forward-looking statements may include information concerning the impact of the COVID-19 pandemic on the Company and its operations, a recovery in the number of procedures performed, and the Company’s possible or assumed future results of operations, including descriptions of the Company’s revenues, gross margin, profitability, guidance for full year 2022, commercial momentum, 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 Pulmonx’s public filings with the Securities and Exchange Commission (“SEC”), including the Quarterly Report on Form 10-Q filed with the SEC on May 9, 2022, 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, the Company undertakes 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 the Company’s business.

About Pulmonx Corporation
Pulmonx Corporation (Nasdaq: LUNG) is a global leader in minimally invasive treatments for severe lung disease. 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, with over 100,000 valves used to treat more than 25,000 patients. For more information on the Zephyr Valves and the company, please visit www.Pulmonx.com.

Pulmonx®, Chartis®, StratX®, and Zephyr® are registered trademarks of Pulmonx Corporation.

Investor Contact
Brian Johnston
Gilmartin Group

 
Pulmonx Corporation
Consolidated Statements of Operations
(in thousands, except share and per share data)
(Unaudited)
         
  Three Months Ended June30, Six Months Ended June30,
   2022   2021   2022   2021 
Revenue $13,950  $12,203  $24,735  $21,447 
Cost of goods sold  3,532   3,174   6,206   5,807 
Gross profit  10,418   9,029   18,529   15,640 
Operating expenses        
Research and development  3,594   3,506   7,128   6,540 
Selling, general and administrative  21,235   18,205   41,480   34,276 
Total operating expenses  24,829   21,711   48,608   40,816 
Loss from operations  (14,411)  (12,682)  (30,079)  (25,176)
Interest income  199   102   304   207 
Interest expense  (223)  (206)  (421)  (423)
Other income (expense), net  (165)  (96)  (165)  65 
Net loss before tax  (14,600)  (12,882)  (30,361)  (25,327)
Income tax expense  40   80   107   147 
Net loss $(14,640) $(12,962) $(30,468) $(25,474)
Net loss per share attributable to common
stockholders, basic and diluted
 $(0.40) $(0.36) $(0.83) $(0.71)
Weighted-average shares used in
computing net loss per share attributable to
common stockholders, basic and diluted
  37,003,443   36,042,614   36,904,952   35,708,548 
         
Pulmonx Corporation
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
 
 June 30, 2022 December 31, 2021
Assets   
Current assets   
Cash and cash equivalents$121,947  $148,480 
Restricted cash 231   231 
Short-term marketable securities 40,139   31,561 
Accounts receivable, net 7,521   6,562 
Inventory 19,212   16,285 
Prepaid expenses and other current assets 3,731   4,883 
Total current assets 192,781   208,002 
Long-term marketable securities 4,684   10,941 
Property and equipment, net 4,932   4,814 
Goodwill 2,333   2,333 
Intangible assets, net 216   277 
Right of use assets 6,987   8,075 
Other long-term assets 796   731 
Total assets$212,729  $235,173 
    
Liabilities and Stockholders’ Equity   
Current liabilities   
Accounts payable$2,599  $1,582 
Accrued liabilities 11,734   13,366 
Income taxes payable    147 
Deferred revenue 131   163 
Short-term debt 2,921   91 
Current lease liabilities 3,061   2,201 
Total current liabilities 20,446   17,550 
Deferred tax liability 47   37 
Long-term lease liabilities 5,415   6,844 
Long-term debt 14,460   17,324 
Other long-term liabilities 179   179 
Total liabilities 40,547   41,934 
Stockholders’ equity   
Common stock 37   37 
Additional paid-in capital 492,651   482,885 
Accumulated other comprehensive income 1,357   1,712 
Accumulated deficit (321,863)  (291,395)
Total stockholders’ equity 172,182   193,239 
Total liabilities and stockholders’ equity$212,729  $235,173 
    
Pulmonx Corporation
Reconciliation of Reported Revenue % Change to Constant Currency Revenue % Change
(in thousands)
(Unaudited)
 
 Three months ended June 30,      
 2022 2021 % Change FX Impact % Constant Currency % Change
United States$8,616 $6,567 31.2% % 31.2%
International 5,334  5,636 (5.4)% (9.7)% 4.3%
Total$13,950 $12,203 14.3% (4.5)% 18.8%
          
 Six months ended June 30,      
 2022 2021 % Change FX Impact % Constant Currency % Change
United States$14,629 $10,856 34.8% % 34.8%
International 10,106  10,591 (4.6)% (8.3)% 3.7%
Total$24,735 $21,447 15.3% (4.1)% 19.4%