LUNG - Earnings call transcript Q3 2021

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Operator

Good day. Thank you for standing by. Welcome to Pulmonx Third Quarter 2021 Earnings Conference Call. At this time all participants’ line are in a listen-only mode. After the speaker’s presentation, there will be a question-and-answer session. now today, hand Mr. would to conference I speaker your Instructions] like the to over [Operator Brian Johnston. you. Thank go Please ahead, sir.

Brian Johnston

Thanks, operator. in participating all you Good afternoon. today's And call. thank for

Officer; French, Joining is today, Earlier available press website. XXXX. financial quarter company's and me A are the released Sung, Glen on for September from Chief Financial the Pulmonx Pulmonx Executive release ended and results Officer. copy Derrick Chief the President XX, of

statements. the market material development COVID-XX these you estimates materially for current our on and results expenses, pipeline expense forward-looking expansion in that recovery, upon hiring, based during revenue or growth this implied contained statements, we operating securities and should management, various management trends differ Act those performance statements or Securities results organization, Before, that this reliance risks business our events or pursuant call I'd impact will commercial within expectations, Harbor statements prospects including not on relating Private forward-looking to financial remind undue guidance margin like and expectations laws, statements. from Safe of provisions future made federal These that and Accordingly, for future statements product could Reform assumptions. these statements involve relate All that you statements. without call gross operating the events, XXXX. are by of begin to uncertainties place of to limitation, are to of forward-looking the forward-looking in and our performance, Litigation or cause the actual those anticipated are include make Any opportunity, meaning for and our to predictions which of

including XXXX. description XXXX. August with Factors information is of Form of Commission, required disclaims or contains uncertainties This and accurate the revise Securities list quarterly Risk as SEC any time-sensitive public please intention business, call with associated over information, on only because the Glen. report events by XX, refer the a with X, and call otherwise. and statements, obligation, XX-Q any the our update filings Exchange section filed financial as to the the on that, And the forward-looking and with our broadcast risks or conference For law I'll new to future of or today to Pulmonx Corporation November or projections, whether turn live of except

Glen French

Thanks, third Brian. Good everyone, earnings quarter call. to our afternoon, and welcome XXXX

today our Financial Here is with Sung, Chief Derrick Officer. me

quarter course the sales. record our demonstration third navigated be delta business, pandemic. from of consecutive date another generated the revenue in worldwide third the we results The our of and quarter, sales Despite unexpected to in we of of another proved XXXX headwinds highest and the yet quarter variant, as million resilience unpredictable to of $XX.X the significant

sequentially of over strong delta were were COVID of in Midwest. our across amongst highlighting with centers, we driven million saw the the the hospitals by geographically Our procedure We from Zephyr procedure treating as quarter US, evidence still demand new saw impact an we physicians the we In South, new COVID such receding in second procedures with the demand valve strong where performance This Outside States, XX the were by constraints. affected magnitude delays COVID experienced reopened treatment. continued centers life-changing mixed, of cases of Northeast $X.X clear COVID, of hard significant for hospitals results least in treatment of the volumes that US, added hospital surpass and were growing deceleration bring regions sales procedures grow expect the areas capacity regions underlying despite hit target such across the Though US sales Europe new a quarter. the Zephyr US in Zephyr US now and prolonged as sales to third in our strong to and a accelerating to XXX strong in valve revenue. States experiencing United to acceleration variant, treating patients by our the were their total less to and similar treating In procedure. to United able set we desire have for a easily high XXX centers the the establishing of of quarter, by impacted less our due Zephyr year-end. indication as patients. the at contrasted valve by for We

StratX continued directly saw of calls into engagement with in procedure geographies our patient our all the and also volumes patient and We media centers our treatment both website US channels. social patient in interest across increase sustained and momentum via an

also their terms XXX,XXX cultivated over of Zephyr In of enabling a has patients community treatment awareness of media to transformed to how that, lives. and demand say We've valves worldwide. social valves I'm experience followers of Zephyr patients share into milestones, this growing and over XX,XXX pleased have stories worldwide translated the of

commercial Turning plans. expansion to our

completed territories now year force across XX international have US with our planned active territories. total the We active sales expansion the sales and for XX

our and during provide these We on continue quarterly expand expect team plans to year greater throughout our commercial to next call. we'll next detail

major multiple of Cross front, our Blue lives reimbursement Anthem across states. with wins string Blue the XX decision million Shield, Cross policy covering Blue plans a Blue coverage Shield from largest extended we positive On of the family

efforts lives. wins for additional patients of We and the to waiting technology clinical prior Cross Shield reduce and validate These also acceptance XX the which emphysema. procedure Blue treatment. time authorization Shield for Jersey, to with receive those Blue Blue Blue our our Cross Horizon support updated cover valve in the of New continue secured of wins UK, Spain outside policy million Michigan together an already China, penetrate and France the place Furthermore, documents our were in these with to Denmark our with national recommendations markets treatment Zephyr US, further. to together severe These Germany patients will in recommend guidance and

our eligible patients, longer-term due our initiatives are who on remain are solution to excited remain international with convert has severe collateral to of has about picked track. in trial not the as impact We patients clinical COVID patients AeriSeal, on waned. AeriSeal the ventilation Enrollment ventilation. Zephyr growth to valves up for eligible of emphysema collateral European Zephyr treat that sites the multicenter studying valve, into currently trial we developing our Finally use

the we introduce valves both expect to our remain authorities of lingering approval of Japan, to and long-term prospects All told, efforts our Zephyr addition, staffing end challenges. year. the submit both and the business, increasing this application of indications Japanese continues to for we progress of our confident to In despite and the regulatory into impact before hospital near in COVID

maintain years I conviction in Zephyr and more turn call ahead. of our demand believe we that, third we As provide sustained valves the look review growth the our are With to building we in deliver quarter for results. detailed to strong underlying will necessary the a the ahead, over foundation to now Derrick

Derrick Sung

XX%, XX% quarter business United XX% of third increase procedure margin Thank markets. three recover XX, production International offset everyone. revenue continued worldwide at XX% strong constant million US prior and afternoon XXXX volumes hospitals commercial to period million by prior On and the XX% our less basis. basis, year of an constant significantly increase same September in of The regions record million was by the you, and growth in to of a XXXX compared and sales good the XXXX our in in gross the $X.X delta in increased the from million, in improvement a prior increase efficiencies. the affected Glen, a the third a was procedure period States in sales quarter US currency as slowdown, on period. continued increased hospital $X.X was million, momentum during third by year a in international due million, reflect quarter by period. XX% restrictions year-over-year that XX% revenue $X.X from improved regions increase the of European currency was were $X.X year this last Total throughput the $XX.X driven revenue $XX.X of Gross pressured The a months margin was COVID, the same from year. for for ended to variant. during by

gross expenses for expect operating come year. in third was from of and we $XX.X accounted million the in margin ahead, year to million XX% Looking the around of were period. the the Total the of the $XX.X operating quarter expenses for third for Stock-based of XXXX XXXX remainder from XX% quarter increase in the a of XX% increase compensation XXXX. third in prior quarter expense million, $X.X

commercial XXXX. XXXX $XX We expect stock-based our between and We XXXX $X.X compensation year prior in period fall we research continue the $XX quarter to expenses operations, operating and development of for build million, invest of of our and R&D million million, total year scale to noncash about the for expenses our business. same the third compared further full operating million the as our to $XX for were the full expect account now million expenses in $X year. out to for programs

the in general needed compared to of for increase development third the and million, were quarter our third was of and an to support research expenses $XX.X activities. due stock-based related from $XX.X administrative personnel, quarter studies Aside in million Sales, and increase primarily clinical compensation, expenses development to product the clinical XXXX. XXXX

million compensation, loss from to expanded Aside or or per related the and as $XX.X the in third and loss of loss XX, of quarter count well expenses, team An year. share from Net of share ended September attributable $XXX.X $X.XX per to a infrastructure. determine $X.X loss weighted marketable XXXX. quarter XX, same scaling million to third our XX.X increase a company shares activities, the as as increased for We marketing $X.X share, to was per of XXXX, was in securities, with used as $X.XX of million cash net cash, public equivalents average a our was period we increase decrease expenses commercial for of of June the and share the stock-based loss compared XXXX. commercial an for a prior sales of the general administrative and XXXX million million,

our Finally, XXXX. outlook for turning to

albeit at our over to posed pressures of XX% by fall XXXX to expect within This least the of low due revenue our $XX this represent million revenue million, growth continue We additional communicated to would previously guidance XXXX. end COVID. year at range $XX to full

in reflects you we in all will our to and the for that, now With the of in Our ability like persisting thank underlying I'd Operator? valves. guidance maintain questions. momentum headwinds open COVID Zephyr and up for the face the attention demand for growing business to of your our confidence call

Operator

Fargo. Wells of Instructions] Your Biegelsen first is [Operator question from Larry

open. line Your is

Larry Biegelsen

question a, Good the guys. a obviously, nice very difficult me hear a Thanks environment. afternoon, quarter for you taking in congrats and okay? can on Glen,

Glen French

Yes.

Larry Biegelsen

Great.

the addition, what I'd So COVID like the you I in rates once And less you and had mentioned in geographies COVID rates hear the one volumes subsides. growth those screening press about you the other by utilization And you're growth to if and that are of see release? talk strong impacted And you in about geographies that terms utilization. in we'll talk types in of think seeing can follow-up.

Glen French

won't of in that had revenue of we're overcome expected. the shut areas are the southern completely those sort the -- southeast. part seeing performance were expect areas in less that are the one And running with precisely to those the geographies -- that of along part and obviously, We so for we're -- COVID across strong geographies will strong were We in seeing read so, the about of We sort -- that down continue and that headwinds mean, what a shut charge down. was tougher what that I impacted behind we were forward back, all and subside, Well, these quarter. to the able would is things we tied the our to speak. that certain hand U.S. we headlines those when be generation.

your of related part question second was The to?

Larry Biegelsen

Screening.

press release volumes? the in about strong talked You screening

Glen French

Yes.

assessment that strongest is our of screening we it the of an StratX front, We process. saw us, are COVID that States, COVID on -- wave the the StratX given And you scans challenges the on increase significantly which the we're increase Europe of very in And in the terms digits that that through particularly low the of scans, third happens challenges have last the stronger either the around on depending the the sense hit on of indicators increase. in geography bulk early or international outside saw that Europeans least gotten to the United second in one seen versus StratX in with at and in scans double the makes is most percentage business U.S., look later facing complete world. we and when have U.S. large at quarter, quarter already this

Larry Biegelsen

That's follow-up for, helpful. Derrick. one And just

understand we came was kind you of QX Derrick, a quarter. So challenging with consensus. in -- But line you

So you'll us a seeing at Thanks full-year that what on be of what question. kind can the end and you you have metric, procedures. are the you percenters seeing QX Historically, the to compared to with number of the QX doing with share shared you're about guidance. now? you us for believe, leads guys low Anything of taking

Derrick Sung

Larry. question, that for Thanks Yes.

in we QX into momentum strong QX, QX. of, in terms through building just and quarter forward sales of and coming what is out of saw built the we're what July. QX to sort through saw we really In in So moving

saw And the see all delta that to the really And impacted July in across the variant specific across we deceleration of US, our as were board, impact regions -- began COVID. then in by so the strength started we to US we COVID saw geographies.

in the COVID our QX QX really and momentum US through continued our not the within comes all outside US across were geographies quarter. July then the in the across that the board both from and of by the as strength in So strength remainder impacted regions strength and

recovery are in kind the look were in are bottomed at bottomed, we regions we're late kind delta we variant. is early kind those seeing by the impacted seem to while dynamics really recovery the clearly of really that as of of So And that September what here that to October. play QX, that have that and we've

that expect to We recovery be gradual.

what the we of July what And QX that, will saw applies hadn't given our falling end of to that we guidance and quarter, that's fully factored the low the variant we of leads us near that early at the in provided increased to impact the for determine so strength delta the and guidance part and our it into last or be QX. likely of when year

Glen French

context that. Just put to additional that around

saw we as back into States of nearly particular, continued important of you in an remember, in you forward this think lose an week in into things November, two weeks October, one the part of sort in across that's though we the improvement it out I will if of bottoming back the to increased September look November December. is this in a the happened effectively quarter and the we as strengthening in October. And look part United the in better that

of sort across this the quarter. flatness So

into If December. it and you sales were account average those an calculate basis taking November in daily on to challenges

that think the going I strong. look is to curve pretty

Larry Biegelsen

Derrick Thanks, Glen and

Operator

of from is question Hopkins America. of next Bank Your Bob

Your line is open.

Bob Hopkins

Thank good Derrick, you and afternoon.

Just a on follow-up that.

sure throughout of numbers? to the understood make you I Glen, So daily to that assuming third want quarter? on are exited the average is improvement what quarter relative in you're quarter for contemplates how sales fourth saying for you kind course the the the Just guidance QX of that

Glen French

a but down, Yes. that Well the third quarter of not saw points quarter in And active the we the couple if was went our of -- that the were part down across continued October. mean But the down. one exiting sort further some strengthening. third down, and there. metrics One through bottom that looked of real at I down October, US the so nice proportion accounts accounts. of there's back the we've is at of before active is we of

of coming saying. What the didn't have it great I quarter. third So exit we wasn't velocity out was a -- a

number November up we will an days. matched and that okay that number strengthened but fewer November in October in by December, we October. in imagine and December handicapped put So be We and are

part in days, divide if the So daily strengthening November selling smaller a number be quarter. you this back of by in in of the number the even sales will and smaller an numbers December number average

Bob Hopkins

it. Got

Derrick Sung

would a I as to and just well add in just little I that color jump if -- Bob. could

are fact the look in that aren't on the mentioned there selling dollar think US a QX. the we Glenn I From a QX of the last expect or are than the US couple based days particular procedures number weeks there dollar a that pure done week would be you to at of the of the of perspective. Thanksgiving a pure QX to sequentially as in fewer if And on amount, year. it flat in lot QX from in relatively dollar

Bob Hopkins

Okay, okay.

think I it. one got I other question. And

thoughts Just Consensus year, early a which little long is be aggressive tech guys -- at been? take but guys healthy get $XX is how new you it's strike rate given that's it year all a accounts I that any, do have again. million to know just the weird of, to And for up kind how going it's might given a early, that me might work super for growth next has you done.

any kind to on Just, thoughts too preliminary that comment? or of, early

Glen French

at health world And people which into to the XXXX or the super early XXXX our because on I toward about. too shut that will we're good managing the disappear. at numbers going I we're as when Though is I of or shown to in of a that a next have fewer probably as track And what are year. the it's were get which tracking example as adept specific I units, fewer systems relates have essentially front good than don't is probably think the about toward on a and on that call. around Derrick looking bit seen had for we being more saw say indicated to at COVID as care much part a that's I comment. But it we become impact intensive to provided, that year-over-year. COVID COVID, in hospital increasingly consensus had represents to what target a our match XXXX -- We're getting I as was we least we're and to COVID. we're better appropriately, down vaccinated, more more XX% a the little we increase heading and about XXXX, the still mean, forward mean, expect we XX% we people look said itself, XXXX. think there's in that sensitive care flat we and how

that is into move a at getting that we in it better think be COVID. we -- that So I everyone will much will of to direction the not look continue think I better. that would year, will lot shows expect but managing COVID that be gone as And managing I everybody next

Bob Hopkins

you. Thank it. Got

Operator

question Furlong of next Your is from Stanley. Morgan Cecilia

is line open. Your

Cecilia Furlong

Great. at in to Derrick, I the that training forward, going alongside a commentary the headwind? for you very of, but Glen Thank accounts several And this, question. able second and on just from provide wanted growth rate? you've of the physician closer new straight start can quarter been standpoint, any to what about you potential add to COVID last months, thinking you're the how kind then notwithstanding, to per do just strong account XXXX US, taking quarter other over just to continue

Glen French

Yeah.

accounts in the it's fourth We these but that were So tricky believe COVID quarter feel I XXXX we do very fortunate. COVID -- do quarters, able is quarter. to XXXX a and and the then and new

lucky be would have last we couple -- would it quarters. in like of to that put a think number I up very So the we

to as quarter. So I see it that accelerating relates don't this

have for good that we've far -- goes, The as additional help started per result number would been to of XX these. around been opening so remotely more training As up so another, one to face-to-face during at of -- saying oversubscribed would height each it And the We've we are have an training, support in COVID. in demand. a least a as think there's I seem pretty training that which those for be class -- we center coming training the And up we waiting folks got relates list at would as think reasonable is training the doctor month that better. to we back quarter. of geography been us XX process a be they executing

Cecilia Furlong

I staffing on And to wanted that well Great. Okay. touched on earlier. shortage commentary as you the ask

Just just, of And this XQ, evolve? started standpoint? from much how that about as in Thank you much pressure XQ see you was you. you headwind that when a think how really contemplated to

Glen French

this, of unrelated what of There's stepping some a related staffing question. availability the That's the I those on but lot them people third resources gotten in revenue lot have away, about and to been truly quarter, has in impact hearing bigger COVID resources that COVID third entirely are the that what do We've those be guys so the and to generate this. -- COVID. are And I'm to I secure is to vaccination mean, or quarter. shortages competition to between hospitals being happened experienced say great just reasons and forth a extraordinary. COVID, you than become and definitely is of next -- a staffing of if allow lay have it. But has heard have procedures clearly fatigue But was had my whether particularly constrained is that or a shortages. it from sure and I we fatigue why about people what perspective not to would And you. I'm

of are getting demand. away And not only a mad centers And there's of groups and people so from there's scramble. this but individuals attracted lot

theme the as balance for So third least it in at was imagine quarter COVID in us I don't the -- than in more quite quarter, will I fourth become the I'm staffing but will fourth a certain I I would think that staffing look and pronounced know quarter. how ahead,

Cecilia Furlong

for my you Thank taking Great. questions.

Glen French

Yeah.

Operator

Wise Rick Stifel. at from is question next Your

line Your open. is

Rick Wise

sales had that know performance. you you a could you of sure the up XX%. start the really you solid both. I missed maybe we -- that. international quarter Is not Maybe could not again. Maybe Glen international it new from the Good I'm know second talk added COVID? afternoon ended that. couple territories. expanded to whether I with I about I'm in sure at recovery

here, mean from quarter? well, where my strong expected quarter the you numbers I is in of sort outperformed international another And as fourth

Glen French

Yeah.

nation happened markets? come international world. Most United the a an Europe occasions, that withstand business And down Europe. our any the for in we're I -- the not is of sales of in tough Kingdom pretty season. different month has one that There in was Kingdom. what's the course of down probably some there were uncommon least capacity of these here biggest of mean, remarkable last kind a the that or So flu the from about were the years. around United And in where I And us of the XX think for it's six was was our to was several country because markets insult. we things

Germany largest contribution. And third get back, So in came market a made France we're all nice back us. These plus UK last to us. running strong. quarter. the a are major markets for real for our back they And was also international the and came

strength where that's So our was.

up wasn't did number have opportunities sort as it We a picked weren't It's We Western resource just far didn't in of geographies As Switzerland Italy. we that filling, optimally that added of and of taking up. before. in somebody territories, go advantage It covered. material.

So a in one number China. different there's of

So a with ended number quarter XX. there's, folks. of different We the

of didn't put very per size, I -- revenue than we're -- it than more it's XX% say and opportunistic. in that us really drive expansion a But but it at se. more mean it look is the does wouldn't I So

where We it. have for took a we saw low adding sense. it makes an reps threshold opportunity. We And

Rick Wise

of it as make Great. just thinking sure, about correctly. I'm part to And that

something I same procedure think please a, correctly me it quick revenues wrong. if I more? the remember the per Is correct or reminder? if I'm Just if less $XX,XXX U.S. like internationally

Glen French

procedure talk Just US of about our number per average sort our XX,XXX, XX. in the We about as bit little and is a as less. global, revenue the

Rick Wise

Great. up guidance a questions. could And couple if finish with of I

below up your XX.X% and would understanding in correctly. some $XX incorporate to the the over more or That low of you million make the little of a I'm revenue range – up that for sure sure the a slightly does little quarter. about let's you at below, commentary range I'm to too bumpy want I'm want say cute quarter be comments. Just here third, to end the say get adding not not range. your Derrick if but make fourth the When unlike trying fourth hearing The just correctly

Derrick Sung

Thanks clarify. Yes. for the to opportunity

So I about flat, the was when to referring I was relatively speaking US specifically.

in expect we sequential OUS So do revenue. a increase

So to our to of $XX end of the million. guidance bottom of get kind

US we a increase the in – look say, it sequentially outside US kind to would US and way in XX-XX revenue expect to at the aggregate a Another on modest OUS so be flatness the the dollars. mix roughly But dollar would between value might expect a of or relatively QX. flat the is we and

Rick Wise

could. And Got you. you. more if questions two Got P&L I

or that to make for correctly, intended what just – You the wondered mean Does there that quarter? said XX% year. year XX% the for of fourth rest heard Just if you you the the for said margin, words I gross sure? your full

Derrick Sung

around up the expect back margin – we in QX. – be gross quarter, XX% revenue fourth to For to

Rick Wise

equal similar volumes roughly. roughly because that's And

Derrick Sung

we So exactly. –

So we've we through have as averaged well production margin nine XX% leading some by year that initiatives in to primarily the gross as of increased of about that's absorption been cost other overhead increased first place. months reduction throughput driven this

that we today. scrap our nature. In to QX, quarter, step costs out are in We gross to absorption where a we as in one-time are initiatives well from had continue margin of to those to continue this overhead as higher particular expect little bit

And we then we'll initiatives XX% we moving mentioned. to quarter. to back continued time that over feel these I So from next continue XX% comfortable be forward that up to that we'll up be due expect gradually, moving

Rick Wise

happening if understanding help was help that's could, XX%, Thanks there? XX% I'm I correctly, Can to mean us I – what's last your one XX% – excellent, think saying OpEx Got Can if prior one guide good. us again, you you. I XX%. much. you And if appreciate so to now you're

Derrick Sung

Sure, Rick.

course OpEx see months the And So happy on incremental focus this of year. certainly our expense leverage on nine of side, management. the first to the we were drive P&L throughout some continue we to across

piece one to that's So it.

is that clinical piece and COVID. particularly spend other the has timing on some The related. on R&D research to timing related It's AeriSeal simply that impacted been related by the side, side there's

So out clinical expect spend into we bit of pushed little QX and next that be some into year. maybe to a

our slightly out So of of the a originally we expect are had in expectation step-up in as a guidance million the few drivers do we to be two our see SG&A meaningful on year-end spend for those in expect as continued as typical side. we and set OpEx, that implies And that that QX. to side coming the XXXX. on lower sort say I'd of well investments I will say OpEx than coming some that SG&A QX the in AeriSeal clinical range R&D that of from professional from QX in we'll increase the again, services

Rick Wise

the Thanks detail. for all

Operator

from of Your next is Canaccord. question Bill Plovanic

is open. line Your

Bill Plovanic

COVID lot taking question. my for Really, obviously of things. masks a Thanks Great.

any was what feel of US So the longest in on in geographies two quarter, weren't for looks what that whether like your areas, you've a for XX% accounts the that of be or is and your account wondering might had getting the what volumes accounts. of kind mature color that the account I'm could weren't years, and impacted trying mature to you impacted. them in the I penetration top get the give to be if us you a an at granularity least

from feeling what a get top didn't to that trying significant maybe have account impact looks COVID? a like for a Just

Glen French

by Yes. Well, COVID. nobody untouched been has

last is a it's relative this So wave this kind thing. just and of

way of some to past. the more hit than nobody avoided number has some very some hard hit times getting got everybody in others. So extent, And

-- so talk And when we have like been nobody or horizon about a who that no you time two-year there's hasn't months for through down point. something

So roughly. accounts the we the is news good United XXX States in had

of basis. sort to never And place knocking run $XXX, on where what has is but And are when -- these at things really along once, across a moving people running I towards always striving good so down $X say, annualized an moved would of $X,XXX, it is to at rate they're geography. kind in the get million everybody

So pre-COVID like today. that that's nice real I areas. we a like good saw looks the look growth think these what phase what in that's good And in unimpacted

Texas by across also counter growth the was the delivered with of and over growth we're downside sequential driven saw. I of we and act growth these particular, but our to the in places experienced like not are the You look the -- south Florida was in over that it Texas it in solid it the face out through markets. was we of kind year's quarter, Florida if largely -- you are sites, can prior only we figure think We which that the and had very that bigger some that headwinds strong

Bill Plovanic

my taking questions. Thanks Okay. for

Operator

Your of question from Citibank. next Wuensch is Joanne

Your line is open.

Joanne Wuensch

Good evening, put the thanks good and for time. question. at taking out have them the afternoon I same I'll two,

has to covered first The do with lives.

are many of opportunity how don't I question You in quarter. added you. to pockets what more, say us for outside remind Thank Could United I'm a second want States. still number the And the Japan And open? my quite is the in looks what you like? but significant curious,

Glen French

it. Got

Okay.

far third, is our Medicare. whole as paid the as go, just government XX% business managed run of to by for of is So commercial payers. XX% But business that about government, of XX% be clear, covered lives the a

prior go commercial through patients for authorization those payers. So

Michigan Anthem we're was go of even plans authorization get and that's and particularly XX at time long Michigan, longer Blue to line. focused on so just most it prior trying sometimes do the And to to procedure. and time at And days taken Cross Shield reduce ahead like why a Blue's at the Blue

get than when to Better authorization right prior seek of line. we the time place those that getting XX% time shortens we the plans it. So

it's whether through So efficiently not move we get that just how a of question of treated. things. question a patient can It's can

there much are way recently one horizon of to we are said that certainly about think kind the we Now size that players. left just aren't that that are -- we or all Michigan many there's that is of flipped. don't think the where we pretty big have had I

-- Cross Cross So about represents third Anthem the think had another Blue Blue the Anthem had about that Shield Blue Association of a flipped. that's is negative. And flipped Association payer is only before big we I third. it Shield it is affiliates way Blue

XX that something down. two-thirds So -- the we're LIMS little tree like third there's like all or just we're about big cross other Association left. And the through. really no down feel --we plans are XX Shield And the taking we tree kind Blue then is chopping of being LIMS the Blue by

to that really from positive. -- long reimbursement not matter on all And they're ones a are neutral are we negative. preauthorization the so doesn't front. And or perspective, it where other as that's So

for really arguably which XX the those opportunity opportunity period a second US a From largest us national a we that lives. perspective, at this Japan about million size it our XX% basis. makes So on of to the size was get big

very we're in forward moving excited about So Japan.

us for Very, ahead there. So good-sized we're us. for opportunity it's and a opportunity good-sized moving very

the by this to We the have probably the see going end we that commercial the go year XXXX, we'll year. We're expect then of approval. through in year. have end expect goes it ahead in later and ourselves of to a by and about process submission that in six-month And part of reimbursement next

Q -

very you much. Thank

Operator

Your Instructions] Sandler. Piper question from is next of Bednar Jason [Operator

Your line open. is

Jason Bednar

about for a more quarter. the coming think back maybe fourth I you've I about waves. business Thanks taking the trends fashion did the here back to fashion here you questions to gradual in Derrick, recovery Good business past kind here. you COVID of that Hi. coming the out ask I think, coming business the a want for past and wave. COVID of to in of latest spoke afternoon. talked in alluded quick following But

in was it guess how factoring normal holding I you appreciated. in dynamic conservatism? additional this impacted bit surge? wave you? wave So Any back post-COVID it's staffing that's a the different color be Is the maybe would Are there additional

Derrick Sung

ahead thing interesting. challenges think I Yes. seeing jump The are some to of going who folks -- we where get as we're in because year Jason, one. are saying a are we the this on we just that are restarted dynamic look that is Year. New there staffing very And and -- end I'm going forward to some of the

heard. that's non-trivial we've theme that So a

of looking on COVID with we're out is of data. we're COVID think number geographies. pulling earlier But going a we a certain through as -- still I to pressing done move us of as impact alluded and fronts I factored all cases we're is the of I at is so fourth forward. in the sort number COVID we geographies. And not that And staffing quarter. think in that to some in same

sort factored all in. that's think I So of

to to in two right. think the past. talked the that kind with get or don't that about. relates the expect I We And I just We've [indiscernible] it it of normal we that that out of, As across has it months coming exactly one do to see here. seen you're dynamic a couple times

the year more some the be just scheduling year a think I of normally the we in activity that -- and is I think there would of cases. it saying on. why and the this for would we're [indiscernible] that the But just impact what that spread because two people a is be be Year. of lot months New of it don't expect But bunch a of the broadly end reasons don't described. end coming spread the I toward do going of I that There's extent I to will across

Jason Bednar

sense. serving from makes you having those out Thanks. having you've playing expand site, And some Is and in on assessment here this that experience forward? of here use how centers. you color XXXX have is as something any really a or assessment feeder your that then but network got out your the about just the approach can That's we this and as talked hoping past Glen, centers you're those to that going I further I think looking That into right. training guess, Okay. that learnings could just centers you provide maybe and

Glen French

Yes.

we As there on centers being -- we think many -- aren't spoke subject them this flipping are about treating and the last of assessment I centers. most talked to assessment of time the these

concept the sort enrich treating centers. trying I patients the So explore ways are the we're that the multitude original of to profile a -- at that to is arriving of of think

behind getting of concept a the treatment challenging was process. that Missoula spoke so happening of go that delivering would people an think there's might original -- Montana And the wherever you that the has that our assessment wherever I centers, center -- And procedure the of itself. certain work the trickiest to in send folks where assessment to. or whatever area that And have or would what's into an -- our is amount is into part most go not doing in

there think for works treating which I are that are -- us. it's become out to we a maybe ought So well physicians center fine the saying just

up to as it distributing just And way of help the that relates reduce So through of patients flow workup to -- pilot tube to we but try a doctors through idea this in been is a treatment. referring sort working centers fashion. to increase or it's the patients move the tools have -- on toward all clinical treating moving the or coming centers to efficiently out process coordinators with something referring assessment at process decentralizing or

Jason Bednar

All helpful. much. Very right. Thanks so

Glen French

bet. You

Operator

would to time I back further to any like conference for comments. turn this the presenters At the

Glen French

related Thus, strong patient and in we quite very us strengthening. to I'd StratX for all geographies. optimistic your COVID your record having saying ongoing with to are Well interest and by what's like another that driven The our of was This business we by pleased thank case thank close impacted engagement, remain fundamentals quarter. sort volumes you ahead much. largely about specifically performance for very less we just remain of delivered scans, the you and time Pulmonx.

Operator

Thank you concludes this And participating. for call. conference today's

may now disconnect. You

Pulmonx (LUNG) 3 Nov 212021 Q3 Earnings call transcript