Pulmonx Corporation ((LUNG)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Pulmonx Corporation’s recent earnings call revealed a mixed sentiment, balancing strong international performance and innovative initiatives against challenges in the U.S. market. The company showcased promising strategies like direct-to-patient campaigns and AI screening tools, yet faced the need to adjust revenue guidance due to slower U.S. growth and hurdles in executing new commercial initiatives.
Strong International Revenue Growth
Pulmonx Corporation reported a record international revenue of $9.1 million, marking a 32% increase from the previous year. This significant growth underscores the robust global demand and effective commercial execution, highlighting the company’s successful expansion in international markets.
Increase in Total Worldwide Revenue
The company achieved a total worldwide revenue of $23.9 million for the second quarter, reflecting a 15% year-over-year increase. This growth is indicative of the sustained adoption of Pulmonx’s products and the company’s ability to capture market opportunities globally.
Expansion of Lung Cancer Screening
Pulmonx has seen a tripling in lung cancer screening since 2020, generating millions of CT scans annually. This expansion creates significant opportunities for the detection of emphysema, aligning with the company’s strategic focus on leveraging diagnostic advancements.
Direct-to-Patient Campaign Success
The company’s direct-to-patient campaigns have successfully engaged over 70,000 first-time patients, contributing to one-third of the patients treated in 2025. This initiative highlights Pulmonx’s commitment to expanding its patient base and enhancing treatment accessibility.
Launch of New AI Screening Tool
Pulmonx introduced LungTraX Detect, an AI-powered screening tool designed to identify emphysema patients from routine CT scans. This innovative tool is being implemented in hospitals, showcasing the company’s dedication to integrating advanced technology into patient care.
Revised Revenue Guidance
Pulmonx revised its full-year 2025 revenue guidance down to a range of $90 million to $92 million, primarily due to slower-than-expected U.S. growth. Despite this adjustment, the company remains optimistic about its international performance and future growth prospects.
Decline in U.S. Growth
U.S. revenue growth was limited to 6%, reflecting slower-than-expected growth in procedure volume and constraints in interventional pulmonology centers. This decline poses a challenge for Pulmonx as it seeks to bolster its domestic market presence.
Challenges with New Commercial Initiatives
The company faces challenges in converting new commercial initiatives, which has impacted the anticipated rebound in U.S. performance. This highlights the complexities involved in executing strategic changes within the domestic market.
Operating Expenses Increase
Pulmonx reported a 3% year-over-year increase in total operating expenses, with a notable rise in stock-based compensation expenses. This increase reflects the company’s investment in talent and resources to support its growth initiatives.
Forward-Looking Guidance
Despite revising its revenue guidance downward, Pulmonx remains focused on international growth and strategic expansions. The company reported a strong cash position with $84.2 million in cash, cash equivalents, and marketable securities, and is optimistic about potential future growth, supported by record levels of StratX scans and the opening of new screening centers.
In summary, Pulmonx Corporation’s earnings call highlighted a blend of promising international growth and innovative initiatives, tempered by challenges in the U.S. market. The company’s strategic focus on expanding its global presence and leveraging advanced technologies positions it well for future opportunities, despite the need to adjust revenue expectations.