LUNG - Earnings call transcript Q2 2022

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Operator

Good afternoon, and welcome to Pulmonx Second Quarter 2022 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded for replay purposes. I would now like to turn the call over to Laine Morgan from the Gilmartin Group for a few introductory comments.

Laine Morgan

Good afternoon, and thank you for participating in today's call.

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

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

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

Glen French

Good welcome quarter earnings call. to and afternoon, Laine. Thanks, everyone, second XXXX our

Here with Chief me quarterly Financial In million, representing sales our highest fluid $XX we and is second generated quarter Officer. of Derrick revenue patient market for pleased quarter, We're Sung, performance to to of team the as improving our execute date. see second our strong our with Valves Zephyr we continue manage our the and business demand our in to ability end dynamics a worldwide environment.

surge we hospital Zephyr year of strong higher ongoing by commercial of to XXX the year-end. In guidance treating us COVID XX% to establishing United added the execute by States, second Our in procedure foreign footprint. Valve pressures total deliver leaves The objective our to last from we from XX to revenue in $XX quarter macro performance the face than $XX despite bringing where the XXXX results winter on centers, us confident our track the fourth driven uncertainties as in staffing headwinds. in least incremental the our full quarter continued was year U.S. meet centers global Throughout at new continued number shortages. expand even our we the of our million our on quarter, and States, our and trained to keeping the XXX initiatives exchange recovered on to momentum million exiting of ability particularly volumes United achieved record previous in sales

XX additional U.S. territories, and bringing sales sales our total territories X sales on to in and international We U.S. XX, international the also added territory additional respectively. and

will educate launched to for health education quarter, is being we our patients both emphysema. second campaigns of part leading severe standard providers materials lung and physicians, extend and XXXX of for care advocacy the through organizations, endobronchial Foundation. articles. collaborations primary the accredited and joint respiratory patients, videos, These educational of In care goals and podcasts American Lung include valves The nurses with the courses, about Association One X therapists COPD including and webinars,

at with collaborators, who provider have We Care health with Critical care clinical manage community using role COPD heart clinical physicians selection large patients. preload, evidence such expanded Innovative a Together value advance improvements muscle valves. focus thus level our populations endobronchial Zephyr also a of as This in our in outreach found in education physician a the Zephyr a on such in of local Zephyr in bronchoscopic to with In the Valves Valves to for continue evidence the clinical and work Journal study the in cardiac cardiac Respiratory risk study was this hyperinflation volume resulted on the heart first function, build contractility, modifying June, the lung and scientific following American cardiac for published the output Valves. we Zephyr assess function reduction Valves for reduction that prospective emphysema suggesting patients. of severe failure of Medicine. continues demonstrating as lung to

growth Turning to our addressable our to market. longer-term expand initiatives

program. readouts data our We with about associated AeriSeal development are excited X upcoming clinical

AeriSeal a are Valves AeriSeal emphysema for This is ventilation delivered as number is the presence ineligible enabling patients a who previously lobes who a of we leading prevents between treatment the Zephyr are collateral in lobes of patients that to are due patients due Valve airways deflating As valves see Thus, collateral gaps the which the developing lobe in to were solution air provide fissure via therapy. of severe ventilation a to for the to potential AeriSeal seal a lobes. the or flow the polymeric of not potentially lung, increase results for candidates ventilation. to the a way bronchoscope for foam currently collateral Zephyr fissure a gap of the to Zephyr separating from eligible lungs, target between inserted. reminder, Valves we when

lobe forward evaluated collateral eliminate We seeing successful, publication treatment studied manuscript are currently ventilation investigator-led to and are from conducting followed also target Europe. that recently our a in from the Zephyr multicenter, the single if to of months. coming in being proof-of-concept, data center expected was AeriSeal AeriSeal then which is to Australia in is lobe, accepted publish CONVERT we up with Valves. This study, the of and feasibility study trial, looking that multinational a in

study. This we in with trial ventilation. sometime the multicenter insight we that pleased patients an Spain from U.S. a in additional upcoming on proof-of-concept subset larger AeriSeal emphysema are design collateral on interim information presentation to to continues initial data year. share on trial has Barcelona, from for inform expand been collateral our International next of severe the around with of a shed presentation, with CONVERT and use We provide to At discussing FDA X. that of will preliminary CONVERT with the this ventilation and IDE are Congress also Respiratory targeted to September Zephyr Society at podium study, accepted patients data patients the European should which Learning light AeriSeal initiate expect Valves expect this of the conversion to

the are our Japan year. the regulatory dialogue hired We leader our initiative in Japanese experienced remains on with authorities to recently our into submission an Japanese engaged and track. in a drive commercial Lastly, of the constructive late application expand we following to market geographically efforts last

With on commercial well in the for the and strategic the XXX,XXX continued we followed Again, more call quarter We in launch of of over the estimate the by year year, XXXX. along establishment half billion in patients and Japan I'll detailed that, regulatory end turn to and the expect continue to now reimbursement growth remainder Valve progress well to be need In sales of believe we back of continued the approval our provide review our $X of our of results. us initiatives quarter Zephyr summary, treatment. that in the Derrick achieved I into Japan a the to a the through record approximately this with second by with second commercial positions opportunity subsequent future.

Derrick Sung

Gross as $X.X year quarter reached a sales Thank our the prior quarter benefit China, and the we period increase constant quarter reflected of by from from negative second XXXX in COVID as period increase and -- the impact you, second was million revenue same afternoon, X% of major the year-over-year some winter by in in million million, efficiencies. treating prior increasing in the shortages of year, revenue year an year procedure on worldwide a last $X.X in increase period. procedure X $XX hospital good increase June million, and from every slower and International currency surge that was the driven of continued ended $X.X Glen, expansion staffing the exchange for new the high to the basis. have XX, quarter. The during record well for XX% currency a an solid primarily International revenue compared centers of million, The markets margin increasing Total the a number markets, of million on restart from a constant offset XX% our margin XXXX in smaller basis. lockdowns a growth volumes $XX.X was XX% foreign XX% a from revenue in in the following during a U.S. of XXXX, opening same prior everyone. rates. benefited been second $X.X months in gross was from U.S. XX% quarterly currency period. production decrease of increasing recovery X%

XXXX trend XXXX second of for XX% offset exchange for from compensation $XX.X million, continued in negative of in expect production the increase partially $XX.X XXXX. the quarter second near $X.X year. We the accounted to year prior from increase Total Non-cash the stock-based second for million million remainder quarter the operating expenses foreign was expense operating efficiencies. a margin impact as in gross and of expense of gains of quarter in were the XX% the XX%

year. from as period compared to for of within securities, an XXXX. expenses guidance manage confines We XXXX, second million XXXX, ended approximately expenses stock-based as marketing The period of same share in the expanded team $XX of in second remain a cash breakeven March same million or general XXXX. hand. $X.X the and $X.XX used The activities weighted $XXX Net per to equivalents of primarily the we million of inclusive to XXXX $XX.X compensation loss of prudently attributable continue in capital to increase and compensation in was were stock-based a we $XXX.X previously committed due quarter the as and to XX were We determine for an $X.X for within in the increase the R&D the a $XX.X currently XXXX quarter count expenses June cash, loss administrative commercial an second $XXX XX, quarter $X.XX net XXXX XXXX. million the well million of compared of marketable of expense. cash the on expenses in the full was the a increased our $XX shares our of with per of loss while of million XX, $XX.X slight million share prior Sales, million average of stock-based loss $X.X was for investing expense. share share managing flow our increase increase or year operating prior decrease quarter was in for compared to of An to per for increase million quarter as to of year. second to towards of to million expense. million commercial have sales We simultaneously and communicated remain second loss compensation growth that million the

decrease expect in burn $XX the annual increasing to throughout to grow we sales to subsequent for and We our continue year our years cash XXXX in leverage see as see expect roughly business. and burn million full cash

runway X As I have turn managing operations and years of flow to burn cash cash at on flow cash positive. maintain business forward we the are we mentioned, we expect until with hand capital current least that breakeven our our in to cash reach of a

implied X% Finally, and turning full now headwind sales approximate XXXX. up growth growth this for an summer We the foreign incremental seasonality to on result implies exchange XXXX. reported for constant and to we previously the your basis, now Despite a our constant rates open estimate year to represents our level global that, outlook headwind that XX% the Operator? from XX% will like call remain we growth ability our previously for I'd thank revenue $XX to to $XX continued expect currency of will currency year. full some growth to sequential XXXX of growth and X% keeping for we within our confident questions. up year-over-year on XX% throughout to expectations. macro million, range with continued million basis And mind communicated XX% in This attention, do year achieve uncertainties, in in and you a

Operator

[Operator with Furlong Instructions] comes Morgan Our first Stanley. Cecilia question from

Cecilia Furlong

I rates the you centers, entering months. volume through color through that progressed just or account adopted wanted on Zephyr what but as an could , from just just to U.S.? talk you looking standpoint if centers as in summer quarter? the or the about just exit saw to the from Non-COVID, any you but single Glen talk then some on commentary And a any could of especially active you pre-COVID start at could of think quarter, your provide quarter you saw And to what the you in terms earlier Derrick just ramp the

Glen French

Sure.

So a there. you different that things few up brought

accounts, to So be. and the was than where to April. had we period was was average the regard right was with But active stronger going June the XX%, which it expected across May

on was what our smack that were. expectations So

good. was that So

some they and up accounts know that You were stronger around You when running how to were had our that you asked doing? of COVID going? hit, of wanted about where the accounts. were some Is

Cecilia Furlong

experience Does Correct. more been had the it field [Indiscernible]. have in

Glen French

engaged actually that you of saw, accounts go -- more afield we could deeply would the kind experienced with I What as the ones Yes. back. and expect, of sort but come it's basically, more deeply first we're this, accounts are to far

see since COVID accounts way. the did hitting. ones the have with had COVID the the of that we of accounts been that. that along Many beginning those uninterrupted prior year obviously, were So interrupted to XXXX an all started And

experienced accounts. and And most most up-to-speed are the so the strongest the

came back early. So they

States. at our numbers you the in also that's when remarkably We saw We've business that in international XX% United our actually got looked those. of

United other X The into XX%, outside countries. falls obviously, the And X/X States. is

is over So on but in business we sell in prior currency Germany, And into basis, different in countries, in XX-plus and we U.S., the the our the U.K. XX% bigger year grew those and U.S., a U.S. XX% product of constant Austria. markets. XX% France and

bigger than those as in came from anyway, that is But well. accounts. the little asking to came where So without almost the our that all idea come smaller And note our States small smaller bit And smaller a all organization we what and the China. about, beyond in combined shortfall really was less we that that accounts, the our of saw shortfall but was. About that was XX.X% smaller from tend slower of think and others were what went I business of are direct back half that XX% from these to in markets. countries, European business smaller I cases it XX% quickly it sales in reflects to our accounts virtually United online, most that much come back think you a of I Asia, accounts saw important

confounded confounded in been up. so and lot And all summertime. our our quite growth across things where we so we across relative the lining have by saw also definitely years information U.S. that which last did top our a of perfect it's you on asked was to area well that inherent are. forth. about we X by see It's the about We The bit, summer a We expectations. and prior think don't what nice and really markets, just COVID and been

We expect Europe, a will case, and any way in somewhat that the in won't We've fifth we of Australia, our good around seen summer always really slowdown is United Europe, feel a time. rebound it our in States. we summer, things puts see just power we which particularly to about in see the but September bit seasonality in in slowdown States. But the strong a largest we a a August always of in because in see United the market, late Europe. through at little So Christmas more end

Cecilia Furlong

as really across sites to especially to recent too, additions, into just ability staffing operating dynamic. versus your be about contributions sequential just you're and if we the follow U.S. about capacity you And the both and XQ just some ramp seeing what a from thinking of how terms standpoint, system that think your health sequential the back half OUS, of again, closer could care capacity? I older the in Great. today, field And factored as think guidance more in XQ to and really full how you're up, the but about constraints from

Glen French

is tons capacity that of interesting, right that cases way isn't and the ICU. matter. into be fewer of there's to proportion progress patients -- And would well, that how if Sure. binary into was now. seeing, thing The their it's there those COVID blanket. It we're units. a it of finding would number COVID the care of in on was those used clearly it shut smaller are impacted down. and COVID how us by what really the because much And interesting out to intensive business patients hospital the seeing cases an because we're of impact present now would because our related

our business, come of way. sort off. revealing of lot first regard of a other So literally that we're so staffing to is the But itself blankets in companies a from now experiencing for same and switch like And constraint, big heard is time which what it's was what not light with that for the sort heavy we've presenting forth.

hospitals outside as given that through our about out the a various been markets are that I both mean, I working is we've of, a and to lot of of in think, way said, I across the there the good way diversity thing able our United business States. power I and different their the capacity feel So real, way U.S.

my think question? on Derrick, if you that's is any thoughts have don't where I thinking the know, on So capacity. I

Derrick Sung

All right.

in mute. apologize. think I bit. [Indiscernible] said sorry, on factored I'm we a I I was you

I staffing thinking was hospital So say just guidance. around the we to our that shortages into going have incorporated

our that year. for of incorporated the thinking remainder into so And forward-looking is the

Operator

question BofA Travis next Securities. with comes Our from Steed

Travis Steed

little to comment. QX put more a specifics just on Derrick, the

still typical said seasonality, but You growth. quarter-over-quarter

to about that's sure guidance of to the I takes think I -- curious million. XXXX of versus how end lower and the just Street think I'm did higher place end $XX some on you the like for make right the QX. want with for be that? the the puts

Derrick Sung

it's great question, a Yes, Travis.

So I $XX midpoint how midpoint of would the And of if moving our about guidance, guidance guidance continue modeling of the we it implies kind do our to think think about our think as than about to forward. you the year. back a of would as I impact I that in mentioned, QX would to more that talked we because that the million And bit half QX to about. seasonality summer of weight you

year. So that see heavily basis expect towards towards the quarter I the between XQ, $XX sequential bulk XQ on of the to of the sales midpoint we would our of half in a the more guidance weight million quarter-over-quarter or some -- to you're increase to would fourth but back modeling of modest if

Okay. Hopefully, that question answers your there.

Travis Steed

$XX $XX challenged guide million look the can't We on then the I million XXXX, or of what by $XX the and you million XXXX, but growth. on of macro can $XX end are numbers, you you follow XXXX Street's it, look Street is grew of X up But high those when modest like comment And post-call. at the revenue means But I realize obviously, at years. That's did million. at growth. helpful. year, revenue this

the longer-term little in kind be business challenges if environment thinking way don't know I of step-up dollars closer if how that's the these revenue to of bit reasonable a of to you're likely giving without of about levels basis? kind to a growth and historical Or about at ease? more to on as I'd some specifics, think love the hospital So a hear are

Derrick Sung

there's off, business currency certainly, foreign that per guidance thinking given would going you is exchange outside of about our first dollar certainly don't of would and of get tell from a to you U.S. us comes is into but question, we're a that XXXX I the and fair the it's strengthening a with for to Yes, that the that where uncertainty se, XX% think have and around headwind couple But move. we want about. things I

are seeing increasing exchange. from an We headwind foreign

the our beginning So even -- where from greater gave sits when negative the a impact We're impact of X% estimating sales perspective. to the at where the year for year-over-year today versus dollar example. dollar guidance, we a was

$X where our about currently that's that's be we're future trying going but certainly, exchange million business going next of the year don't So to and predict dollar if go, to into to not the things move. rates impact sales in where sits,

So talked that's come really the additional up. has then headwind that think is about lingering COVID. impact you that And of I an what of sort other

So seeing about in volumes, fact the days to these in recovery of we're and markets, shutdowns we the and U.S. up of due kind international our filling all major feel that we're nice complete beds us. procedure are of hoping behind markets, our ICU very that procedure good a very the major

hospital staff per look to the hospitals the the inability on I perspective productivity shortages lingering at in think or that of impact way our of is forward. and our from come a However, account staffing that, these capacity moving is it and effect we has

future. of of areas year to the think me this both X And the have so the is I But looking all And that on the of play thinking year. of future. would and key as we're this I sort remainder think into uncertainty that about that to consider things all we that is carefully visibility of certainly through something more that we'll out

Travis Steed

all X on the quick cash Okay. breakeven. follow-up No, fair. And that's flow

years in you're level enough kind will when forward. of revenue capital out But happen You or X curious that said to what breakeven? expecting hand hit

Derrick Sung

sure. Sure,

years. $XXX get would expect years, too breakeven in next to sometime get But say cash next in rate, the an of specific million-ish. a high we annualized on X to run say, don't So few I the to level, rough to again, X I I this. And north flow want somewhere again, numbers, at would at would

that's at we that we level the cash our reach flow So kind have. of within to current breakeven operations high expect where

Operator

comes Canaccord Genuity. Our David next from question with Ko

David Ko

My This question think do and for that first been quarter. Plovanic. the what this And is long your half and does is, David you has impact benefits? an were first on take see see Bill you the of impact, XXXX the Congrats it system the in on from year? how payers if don't added to flow through the

Glen French

Yes.

we U.S. our all so all about of the patients -- essentially of is So the are of government. our our by paid I'm XX% talking for get patients covered This

about when talking talking payers, U.S. about talking NASH reimbursement private Are you -- So outside about you payers? in you're are the

David Ko

Private.

Glen French

payers. Private

Okay.

our through XX% get coverage time payers, a payers though, we and it private even of way of been business negative through over goes payers XX% in decision. that So the in have

flipped individual for chopping biggest Those it Blue which positive neutral, say coverage despite limb. to and of Blue are payer having exception of with more the tree, limb or -- us. Shield We're association have than the of is Shield now plans it's Now Cross X/X down the a those decision. sort we're negative Blue routinely every by Blue as network, Cross the is that pay the they major of part

to on going So because we progress But front. and negative even we're we've lot policy not a cover this. have good back when of this on somebody made that says, comes a

to think because there's is know, are in you we've randomized XXX% you what not really controlled that and X to reviews who Shield, the a requires don't comes and we're And data. of got clear. appeal it somebody And Blue our data -- part independent I of very that We protest, package. physician It's standard for been an essentially published. Blue can that a Cross can all present who's who's on have care. not as then close part, I trials You

So that all win the we time.

like inefficiency. go weeks. because coverage process described private positive stand there's do It's the you've and about So got care or if where X why significant they opposed X to a decision. X as we months payers I the to through just

follow-up at be a the reduce thing not acute not to meaningful to extended going is patients are. will They the fallout resistance. get day, during would it that's they're a efficient is -- our can of been we to the there process. it's -- -- But But I it more particular Cross private the Blue the that's of event. that the Shield do trying plans, is covered them. is Cross Blue a lives the position. are Shield These remarkable company positive already of only to if move we're is processes. to Blue the X/X negative, and business So their how through like individual end patients procedure through X/X have and Blue be under And But tomorrow. of Association small a willing XX% it said, We those fight lot go have patient flipped

accounts. steam So ahead those in full they're

So end really it's work through. wait business a we our small and up that of having part to

David Ko

question, clarification. if for And I that's the you Thank X more all have right.

to And versus frame oldest newer of an for time the ones? in does traction measure maximum kind your account the what is utilization reach how in So the accounts capacity?

Glen French

element up of to were relatively we've been the accounts It's of that for Yes. Thanks running small that the COVID. have only group commenting time group for was we and question. for prior year on some that an pure now. a really period And a

that sales And single sell market with hit. FDA things got was did the we to we So we remember, a because approval on we were introduce up thing first months our showed COVID from to reps themselves to hospitals don't approval these go when XX for until when the hospitals these valves. the to

to and various and so conditions had through and getting running terms forth. we negotiating those committees through hospitals go up and a So the process

had didn't year of XX So COVID hit. experience double-digit number, like have we of something XX that like the It that. time a was a that hospitals a ton at to accounts or

just established we're productivity, in had months And first phase been have working So in year, were was through quarterly order which the where group are ago folks that quarter. and rate most pre-COVID basically, of hitting the digging it's didn't basis phase. COVID to turned got environment in into switch few and the accounts But we get or first COVID in and the ones And as based off going of as that Xs of established the ones that everyone sort where up the many strongest accounts and light accounts, first up of have quarter. we per an X so was cases mentioned forth, on the a out waves the on those before, in small X in been the uninterrupted of coming the a were out of of the as on back. in history a of in that were Xs something come the back which low our way that that. I are sort popped down that more the -- were the And established certain

Operator

Our Biegelsen Fargo. Wells with next from Larry question comes

Larry Biegelsen

question a to on going I'm both AeriSeal. ask the just X-part Glen, upfront.

What you What earlier results been would are about ASPIRE were the many how to around excited long the interim a what going you at get presented? data, for said changes going the good you So to be consider since optimistic? trial have a you AeriSeal like patients result? we're makes And CONVERT presenting has time. September, ERS studies you made in

you something have of here. makes you kind think what So

Glen French

Yes.

reported ERS. out a report study we So Australia. approach first of will case as CONVERT was The CONVERT at

in was that published, a Chartis] where physician the single CV where and patient behaved born in put put CV valves like somebody there that patient AeriSeal, identified So went was has the who that in, was identified been the some converted negative. [reusing patient, patient this positive,

as that that off that So a the small it's of of earlier, accepted think sight his shows publications, that until it patients is about be double-digit larger show group he essentially, being up to we relatively embargoed that, that and in between delay a that to set mentioned He going low published. encouraging. acceptance has data was to script literally in when in in of patients, experience group and study been normal number, do could gets in a written up it single-center double-digit We're print. been It's published. for that not just

have visibility we some So to that.

you of will but the have of look of trial, we tens we're not -- -- to that and about not, at going be going the patients way you behave talking doesn't that's we're to at in second it's them specifics because primarily how somebody first. make -- valved also, same we're get who's or talk and the they're CV-negative take with question going matter if about going to And it's CV-positive can going if tens to that patients CONVERT by to can't AeriSeal. to whether many, ERS We going the the and

XX XX asked We they and would would reasonable a said, and be would had you them, that to is could candidates leaders, for then great. worst we be of good convert back that procedure what and came -- asked queried if CV-positive you and wonderful patients acceptable. thought result? Now be XX case world question that are XX% this take of

So framework. that of sort gives you the

the anything a ERS of fundamental well you'll in tolerated don't And or come and is people data it other tens of reference smaller much XX% group, reported larger been AeriSeal then be ASPIRE. -- and question a going the the XX how being that above on thing But is that up will when a larger able we'll to ERS, group, and is ERS those will with to I before know centerpiece. at focus -- then be anything made had So you report then at pops on they'll is, at that's is to If see that. this -- wonderful, north acceptable it's out. publication

forward. company able AeriSeal, Therapeutics, they technology that the purchased Aeris had pretty ran things a we when we by They Aeris. it get a And developed have Aeris deal executed Aspire and trial was we ASPIRE. called a finish to study money. They acquisition, from of a on because good didn't out was commenced called were carried that

at patients and roughly In that well a as question how approach. the that was as was of tolerated this current AeriSeal in observations twice trial, a -- ago the dozen was AeriSeal? time, like related much the the instilled of sort to One the years

in or given the ASPIRE. learn ERS, got contrast behave less, might one they AeriSeal when and patients at that of how so volume And XX%

safety also a be that will or there'll answered So at tolerability question probably ERS. be

Operator

from with comes Rick question Stifel. next Wise Our

Unidentified Analyst

and Wise. to on for Rick upfront. just ahead both going I'm Mallick] [Priya questions is my This ask go

and number and companies weeks procedures. few limitations their first report do the During to seen we've a hospital of a seasonally ability of higher earnings, there is highlight that pressure staff from

productivity this quarter, the we into should So XXXX? per XXXX And second think extent half to about going how and impacted account? impacting third what your then this has

Glen French

to they've impacted it. through mean Got the I off be cases, They call and reality. people of other and have a not pulmonary number It that significant function then pulmonary they to significant in a into -- productivity? hospital coming just gets has. in rehabilitation. terribly are sick a that by executed our get a to have it If folks around the Yes. in then you procedure or through Yes. have go delayed run pushed through testing even It's we certainly get Has of got in tests of the people people. are, some team future. things number and certain go

we muscled didn't our anticipate We are way We that. definitely that. feeling it. So through

and that as well, that fourth to were we in targeted. way did anticipated, quarter, everything had Our to were the our that we deliver our in pretty didn't seemed we going things as what go muscle was Well, hope the everything zone if go quarter, into went we had well. we able goal, roughly well second to

of trying patients hospital and as the us to and in capacity I'm can we're seeing procedures. that can little money right they staffing now engagement to the procedures, are seeing ahead. the strengthen that across this take or going on off interventional XXXX. So situation to whether sure move to physicians certainly our are that we optimism ahead. right hospitals necessary. something see ensure that that they that move pushing gratified I And have certain by our surgical the by we're a be going that sure. hard great time. well. are very as doing And do We're the that to be patients these in and procedures But year definitely systems that And of commenting report do It's mean, expected like we're for procedures to we are activity we a what's to to -- as situations, the gives make improving that the to now. whatever deal trying they're think going And they activity, our things the I get it's accounts

Operator

question Downing comes from PSC. Our Joseph with next

Joseph Downing

a on Jason This solid quarter. today. on Congrats is for Joe Bednar

I was The first one have on pricing.

whether hasn't inflationary any So to discussed you operating business. able on a defer offset plan been in take pricing or to through And got we've traditional comment while one then I it you more. Are manufacturing lever have on the past pressures? to

Glen French

the We the terms good we've be on We'll larger we our that have taking have -- right we've product manages taken We shelf. group in got that's things with -- making inventories. out move we making as very -- bit our got that sure price larger got supply past. it. a of We've of of as chain the forward fortune talented small great a ahead had amounts probably of somewhat in pricing increases and our

this to we've manage well in pretty been So able environment.

we'll expect that have so we price would some And yes, increases.

I terms focus is in price new think, think we I greater increases that magnitude where products. on of typically,

in would of [Chartis] pricing or as software So typically a is we when have something, you new see package a typically step-up version well. new line bigger a a or extension in something

would expect move exercise here. we of yes, that as a bit forward we'll little we So

Joseph Downing

And more then competition. Great. one on

would Olympus the like evaluating So in the out patient expand any valve meaningful other aspiration? that technologies you can And there way? what consider help develop population relatedly, earlier-stage treat. are could addressable AeriSeal any there seeing with are market you competitively seeing you helping And then are you that

Glen French

Yes. a Well, sort been disproportionate market of help of you you pie. great competitor the in marketplace it's else we've to who's got to valve now, that it's obviously, albeit got but data. a -- we're U.S. the not in the difficult grow out challenging I'm during grow for And always of Europe. control a and a time, when lot while size in a somebody like but out of have different been a happy the in got a a a we've And that's share design. We've to for and pie competitor only

the X across X our all we've of studies. consistent. are All endpoints studies. data all We X got All data, on hit

and data aware not work them continuing So work. Olympus I'm -- set, additional do doing either. XX additional XX shots and that goal, same we're on and goals doesn't have significant doing we're to of

and of they've works what which to patients market -- share. -- XX% is good we continue product. certain the they're have anyway, XXX% country and share believe So got It on a talking somewhere is depending in about market, I our you're between but what

change. making game. in there's are a how They're the they're them happy I the that to So marketplace. noise. we doing? And don't still in I'm for expect place

in nothing These great. that significantly see think which that are the the horizon of you want on -- is former patients some on terms valve smokers. a technologies, can X future uncommon spot be is XX-plus It's all you going are I that they're not other go competitive In to to at time, there's is reversible, valve it. I space. at a place and something that's x-ray in get the and percent up of after years shows Valves

can can You with X behind go want out and it later years in to and it you what pull go X, do do. our and you go valve, back

I to therapy. So are think going be always valves first-line

other there with patients. are are Now CV-positive in that development a technologies application in possible

that AeriSeal, of the you're not We the before other with Some chunks been taking approach permanently some of have that we're very geography spotty and the case. where technologies record. the down be way like taking have studied would a massive

that there's the space, You'd also anything be referred developed. there course, being of technologies of in are out a that would be to whether And interventional that's different there. complementary number

have along further those on markets. we And really have have close global hard We a direct. to different that our XX% business sell sales organization, we than plus are Some of eye keep is into is XX others. a technologies. continue What to are we is we

right are team where itself. we very, end. built now, our around paying hard of commercial It's to global world. where Certainly, very So sales to for is we've reps get all our this commercial the front

just as that single we leverageable we've what do company, company smaller a difficult a for a it's younger incredibly So or asset. company see any product done. And to

a be that are coming eye the forward keep bringing could -- complementary close other in that we things bag. potentially So on the that are

Operator

next from Citi. Wuensch comes with Our Joanne question

Joanne Wuensch

doing tough so previous the OUS I that well masks certain that Actually, comp. But and straight are may When the one particularly growth was into at this. a just that you I individuals quite look sales suspect has with be your against pockets about talk maybe And bit? up [Indiscernible] and seniority it question not the do Can you force? or that my of Could little force. that the of second the global apart tenure to the a pull much. then stability sales others

Derrick Sung

Germany, Germany, that -- outside States States, outside is looking business. so outside biggest the business the all and France, those Australia, did United United plus Australia. X top of well U.K. X it's our XX in all all United annualized really our all million yes, market, X did range. is the quarter. our U.K. They're XX% States. of So X and XX% markets, countries: X/X the is mean I million -- of million business in -- kind our they And of to France, U.S.,

constant U.K. a mentioned, were on over of second those and As and currency XX% I think basis, Australia I XXXX up a XX%. on Germany, earlier, constant was up U.S. quarter the France,

XX% the of was XX.X% business over our So prior that's up period.

of XX% on our of of in almost was down about So We've And running, We're half marketing where which greatest order footprint where and were where we're we business, last that salespeople all was business. we've XX%. leveraging. China. in number of there. we got have got Asia, the we're there. that miss people And We the building biggest our of in the up got accounts and

where they of they -- a smaller countries. bunch Now the is countries, complete they don't other balance countries approach in taken shutdown of the way the have haven't Asian the half certain in

to there's back. smaller in to that's coming back goosing are They're going quarter slow come ground them just come the not underperformed second a on those because So back. the like countries team that

good the happen the come So that's half the mean, and I that's -- only fully I probably-- that that expect I to good I X% that's going I year. I expect to to year. news. Again, of back this back in our don't I don't of should it's half expect on the Asia do expect got back -- don't something biggest growth, obvious come Joanne? not compound business Does the order hit, X, just and couple then growing annual there. frozen and we It's part that a China there. They're they're not of we we reasons. of China XXX% what -- the pretty years chunk year. of little say, XX%. last for business, this because answer for COVID it's doing like was a of your question, but

Joanne Wuensch

Yes.

Operator

back Glen questions. turn the any to French like remarks. to closing are no further call There for I'd over

Glen French

feel Pulmonx. and you emphysema day to Great. for COPD. an move severe wanted good all to for questions we your foundation improve and up every my quarter ahead. of work We extraordinarily lives interest deep patients the employees that in to finished we a express have the also your I and that the just thank just about really dedicated appreciation the and significantly take customers effort in with to Well, moment

you thank So all.

Operator

Everyone, of Everyone, you [Indiscernible] enjoy your disconnect. now rest the may day. may disconnect. you now

Pulmonx (LUNG) 3 Aug 222022 Q2 Earnings call transcript