Earnings call transcript Q1 2023

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Operator

Thank you for standing by. Welcome to the Pulmonx First Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, today’s conference is being recorded. I would now like to turn the conference over to your host, Laine Morgan at the Gilmartin Group. Laine, please go ahead.

Laine Morgan

operator. you, Thank thank and for in participating Good you call. today’s afternoon all

Pulmonx French, Pulmonx Chief Chief today, ended release March from of the me website. A press results President its Financial a financial announcing are Earlier XX, Sung, Joining Pulmonx’s quarter Derrick release Glen and is for on press and Executive Officer. copy XXXX. issued the Officer; available

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

and Form filed in of Exchange with SEC Factors with report For on on the March uncertainties and business, filings refer to risks Risk X, XX-K our annual and Commission the a our included section the XXXX. please associated with description of list Securities the

Reconciliations results. events press of to most call GAAP are posted release, X, projections This May XXXX. during will Also our GAAP These the call, website. measures time and contains as financial to the or not we financial Relations for the this non-GAAP or as information comparable provided be intended intention these except non-GAAP new financial update accurate a whether Investor live measures in any of non-GAAP are any which is revise or conference disclaims measures measures. only or future our otherwise. financial on to discuss substitute because certain today, by forward-looking sensitive information, law, obligation, Pulmonx required of broadcast is statements directly

I’ll And with over to turn the call that, Glen.

Glen French

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

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

$XX seasonality. that centers activity saw first and first our relative base typical million. long-term quarter, strong growth achieve sustainable strategy to momentum enable XXXX where X-pronged are achieved we million worldwide year-over-year despite we deliver our XXXX our our longer-term to growth. million along particularly from of revenue and designed us strategy U.S. the full off treatment delighted commitments focused start strong previously communicated strength our expanded leave to in am sales, and make near-term I geographic foundation build us commercial stability indication to track guidance on exiting relative in benefiting progress with while on quarter achieved with $XX for will $XX.X a confident continue We on to to to initiatives. expansion consistent we our a We of account trends, in the clinical commercial revenue These growth our XX% year us enable sales

our comprehensive have which program to training for best substantial building first, As of high-performing Valve and is based our the awareness manage the on Zephyr to strategy champions, physician Zephyr on education Valve practices commercial administrative potential hospitals emphysema second, and information of we focused assessment education centers; a follows: finally, efficiency providing commercial local criteria, as our Valves believe, increasing benefits reminder, them. be facilitate and and patients Zephyr physicians increased and the capacity; and COPD activity who that by procedural

programs on continue While educating centers we U.S. our progress patient for treating existing the year Zephyr primary greater focus best initiatives, and and remains improve efficiency, therefore, to experience. procedural make Valve all on practices to X encourage about capacity this

a in We lines. are of as their Valve seeing their growing an increasing programs our pulmonology existing investing component Zephyr accounts service key number of

front As are on our we best clinical and from accounts, best on practices high accounts training seek through programs, the clinical both expert sessions. the through reviews side coordinator to sharing administrative scale case practice our volume their

sites We are training in-person their opportunity provide education to and accelerate also the taking pandemic virtually learning curves. the with trained during to peer-to-peer

seeing experienced efficient are clinically of growing more of more offering a result a Zephyr hospitals As number and efforts, we Valves. these

to back this in activities of We increased expect results the sales the half of productivity year. continue these similar see and to and to translate

a order least reminder, been have number treating quarter. procedures placed the quarter which that those Zephyr in measure for given and Zephyr in established average by are at our generating XX we cases revenue As performing hospitals, the conducted months a have Valve on account of active a productivity based Valve

of the the since the quarter pandemic. experienced X for that cases in of account have remaining range Average the per U.S. productivity XXXX was approximately exiting we account X cases in to first X.X

lower XXXX number which nicely, total typical As the Encouragingly, the established compared productivity our dynamics. the in calculation. expected, saw we active denominator accounts in quarter of the increased grow reflected of first quarter thereby fourth seasonal productivity account to largely the

a per of active in expect exiting ramp productivity in meaningful cases continue We XXXX half account. back to year, the above established X account the

in Meanwhile, XXXX what XXXX. quarter the the XX%, of activity higher was than in we U.S. of quarter slightly account first saw fourth

of given centers percentage as account As that the place order a generating activity revenue treating a reminder, quarter. a we in define

end, the added account expect total in centers number grow U.S., and To in of the we new remain to in XX% XXX. treating normalized XX centers to from quarter environment continue benefit XXXX, U.S. of our range treating as to of first bringing we that activity more the denominator a operating centers. our We

and a expect continue XX XX the total to of We new establish identify to to accounts throughout year.

short Beyond severe our further from commercial also tap are looking and million the despite of X we than who are to breath near-term world strategy, patients high the more dose suffer around medications. emphysema profoundly into

late regulatory reimbursement of study initiation and our of last establishment Japan of Following expect sales in XXXX. the Valve approval the our Zephyr post-market in to we continue year, through

have reminder, to who stand estimate to we approximately XXX,XXX Japan treatment. patients from benefit a our As

for remain our our track AeriSeal In Valve clinical meaningfully addressable program our development on pipeline, the solution. expand Zephyr with we to market

We to of year complete expect X enrollment continue CONVERT trial with our year. to next final presented this data

trial, steps of basis CONVERT multinational half our also will from form CONVERT PMA we year. clinical to which are in enable final taking X, for back our X AeriSeal the the next submission. the launch We call of this Results

centers we summary, with increasing centers. pleased emerging in In expanding top very are our with and progress engagement practices best our with

to with and our We see and been receptivity team our delighted customers. traction across early strong have

procedure needs this emphysema. early continued Again, Valve with build the drive positioned year. the the awareness of population to As the momentum on expect Zephyr unmet we growth of half largely benefits we to address of unmatched severe we commercial global are build, substantial around the of to believe in untapped well patients back

now call results. quarter With to I detailed to more Derrick turn that, of a review the over provide our first

Derrick Sung

million our $X.X also increase year a from months in U.S. the depressed everyone. and good year an worldwide afternoon, Zephyr reflected to you, a growth pandemic. momentum the X on during the the and from in first the of million, $XX.X and commercial due was first for of in basis. from million, adoption U.S. was period XX% Total in XX% Valve therapy and Thank $XX.X the quarter ended quarter XXXX sales increase million increase COVID revenue currency revenue continued period. of same constant XX, benefited XXXX, the The Glen, sales March a $X prior XX% prior of

XXXX on first sales constant increase basis. Zephyr of European in $X.X Valve and growth The million, volumes in driven procedure year was quarter international a in $X.X increase revenue the during million was our a period International last by currency an XX% of of the same geographies. from X% increase

prior Gross the reflecting margin XX% for the lower first utilization. capacity to year quarter of in period, XXXX XX% was compared slightly

of to the towards continue remaining year gross half expect full half trending within XXXX in to of XX% to fall We margin year. year of and for the the first the the near back in XX% XX% the XX%, range

of quarter for $X.X compensation expenses $XX.X million of XXXX. were operating million from XX% million, of increase stock-based $XX XXXX quarter quarter the was expense first the in in a first Non-cash first Total the XXXX.

XX% expense, compensation period in operating XXXX the from expenses same quarter stock-based of prior of the year. Excluding the first total increased

year The compensation period for to between stock-based expense the the we of year. R&D AeriSeal first increase were Looking and well prudent continue managing quarter stock-based was of to the to approach ahead, development full approximately in $XXX as in to to related increase clinical as compared as the prior costs XXXX million non-cash attributable our for increase while expenses of to in to an to an drive expenses operating expect take program $XXX $X.X continuing million same to we XXXX fall million $X.X invest inclusive disciplined compensation and $XX million, of a million expenses growth. expense.

and general administrative as in of to expenses. an $XX.X increase well sales the ramped of Sales, expenses million commercial were and was first compared $XX.X to activities million legal and XXXX. compensation first stock-based as The quarter in for XXXX we quarter attributable expenses marketing the as increase

million XXXX. to of average drive a of loss million XXXX. million, share, $X.XX XX.X share the to the leverage, a share we XXXX of quarter prior to of full EBITDA $XX.X of determine for quarter An to improvement loss for Adjusted of Net used expect loss first year. year our million per ability the period for continue XXXX $X.XX period a that shares first loss was the first per $XX.X per $XX.X first operating a trend million net compared for or share demonstrates $XX.X loss the year-over-year as loss count was quarter XXXX. for in The was or same as compared to of the the weighted of

in February equivalents increase an $XX cash, $XXX.X remaining XX, by drawdown March $X.X XXXX. XX, discussed cash with our on cash million that reflects and of ended last loan December increase of in securities, marketable million million call. The our term provided We from the we existing XXXX, our

line top that With very feel leverage. to our good have deliver decreased breakeven grow during the flow equivalents and cash and to of million our quarter our we strengthened about drawdown, first as securities cash we continue $XX.X sheet, our by Excluding marketable operating XXXX. would balance pathway

Finally, turning for to our XXXX. outlook revenue

deliver range We in year to million revenue million. expect continue full to to XXXX $XX the of $XX

growth be guidance to exchange assume remainder to basis begin rates headwinds Our of continues FX relatively will on as annual an to foreign XXXX. ease currency through the neutral

will I’d questions. for that, call the attention, like your Operator? with And thank and now open up you to for we

Operator

And our Wells [Operator Please with Instructions] line is is Larry your Fargo. Larry, ahead. first open. caller go Biegelsen

Unidentified Analyst

Hey, good couple for Vic A please. questions is Larry. in This of afternoon. for me

consensus beat quarterly had about beat after think follow-up. you and raise kept you you then million, And about the decided as to insight by Thank first, a some Can you. guidance from potentially but to not I you $X intact. to here? why how provide cadence So guidance

Derrick Sung

Sure, Vic.

the performance first we So quarter. happy very in are our with

more the we the much quarter. higher some that the saw our visible million ability to are traction $XX around results is certainly we ago. be in now. to productivity same-store and given achieve of time we what a it We year. the efforts we first more seen feel yield will half do guidance lot us operating And towards weeks we’ve of million gives $XX in the that talked clearly And a end XX QX our to the the previously still predictable sales trending confidence in to take set good early in drive that about early in year. just of range, and out And stable said, momentum of that back how that will about account That environment and

are get to we So skis want the that guidance, on we about feel headed. good direction over really but at this don’t our point, we just do out

Unidentified Analyst

you on for And data then so in your released about Dupixent we the my at Zephyr helpful. Dupixent? how you questions. That’s on impact COPD QX, looking on from line for taking follow-up are top the thinking Regeneron And thoughts are thank potential

Glen French

treatment there out that try number for that. I’ll of is being Yes, the handle used are to patients with a that of There are pharmaceuticals COPD.

And them targeting are some smooth muscles. of

mucus the lungs. are targeting trapped production. them in gas are Some None of targeting

solve gas our the I mortality no the liter procedures lung. because year, we’re So procedure adopted Last there surgical drug There’s trapped morbidity isn’t out was procedure targeting. of of about with There’s a did well of a that’s as that that what think many can surgical Xx the we done. and it. associated as in

treat as the able wider that We’re to array approach much patients a a take. of result of we

are So don’t We COPD Dupixent, opportunity. see for impacting happy patients. we that our

Operator

Okay. Instructions] [Operator

Our caller Citibank. next line Please Joanne go open. is Joanne, is Wuensch ahead. from your

Unidentified Analyst

are lingering This you of actually And looking the what the in quarter maybe in operating disruption? still taking on seeing the first things second here for just What you you questions. for guess how Leon in is talk Joanne. Is staffing? maybe quarter? far Thank then can any you terms about environment? there I COVID-XX are so our the saw

Glen French

Yes.

we think what we in did would first material not would the staffing thus we I is see far issues. quarter, staffing – not I second call the issues answer what call quarter I that we material are are seeing in the short and

reflection being patients. procedure-based hospital from that these just paid a like XX% kinds I of mean, these a are comes surgical for DRG. these of I of the types plus that’s a bit one procedures patients, something procedure-based under of think that’s of think surgical patients, I revenue a technology,

think suggest but issues of in, parts to the would so I it’s are the procedures a hospital, first I fall across think other say category wouldn’t get And maybe it forth. we relates there we – consequence, ones don’t haven’t covered just that accounts we I are that – to kind therapeutic the staff as to as and and into of faced immaterial. Not so it, I staffing that I but in – XXX

Unidentified Analyst

Got it.

U.S., of the cadence accounts should the a year? then expect adds have And we XX the you account Okay. in of similar the rest throughout

Glen French

Yes.

projecting XX a quarter I something or we So on are think order. that to XX

I I this to think said XX year. XX

in we that are So neighborhood.

start So script. XX mentioned but is one the number I – that with, to the nice a that the is total in

Operator

Cecilia, go you question Stanley. Okay, Furlong with Instructions] much. from Morgan our your [Operator Cecilia Please comes is thank And next ahead. line very open.

Cecilia Furlong

then the what versus Good you thank are afternoon you taking just XXXX around seeing O contributions you guidance, think as to could wanted specifically markets U.S. of O and U.S.? has bit shifted about anything some recovery just ask and as of I questions. for if the the a in stabilization. think breakout to speak if U.S. And we you about versus from the U.S.

Glen French

O going I guidance. shift of see am any U.S. whether to and take about second the we in the difference let terms U.S. between question Derrick

sort U.S. other great O As obviously had that performance, it relates the strong that U.S. to we really say a and highlighted had had we quarter in year. that some also we over I prior of U.S. would increases markets

top four out top the five all you of had the top look – good three four out four of our increases. or if markets, at Specifically, actually,

well. France and think performance and particularly prior had of markets, strong I UK, versus saw the and that’s what order remarkably against of remarkably as was States. France that plan I are Switzerland magnitude And similar, are a similar the period. think the the on UK, the the we the results in real in Specifically, executing United They bigger

where we that’s think I strengthening. So saw things

Derrick Sung

for year. And the sales about quarter. of in guidance, XX% the around same would of expect that Cecilia, remainder regarding remain in the to I U.S. the total Yes. QX, ratio the accounted our for

total to somewhere range. remainder XX% So is in XX% of sales, year, the is the XX% O XX% somewhere expect and I the the U.S. would of for between to U.S.

the we guidance business. our to grow grows XX% to to over and international meaningfully our in expect to Now faster range. the XX% U.S. Even this than the year, XX% in time, more grows our international XX% continue implies range, business U.S. that

our significantly portion greater expect So do to mix over time become sales. U.S. a of of we to continue

Cecilia Furlong

if I could well. Great. as And follow-up

adds getting previously for fits Can driving profile forward? accounts, some new talked your broader your into I going Just how to terms the these it question. and account trained. thank engaging, specific into them you going strategy in taking of of know quarter. ramping just you of speak some initiatives you And the about the the deeper accounts XX in of interest

Derrick Sung

Yes.

most metro of So major the we’re in areas.

with get in in clear I think are accounts the What hurdle incremental that need deeper the The they those adopt, become – going to they process a lot to they of geographies. we’re prefer trying that profiles that less far we’ve adds bringing before to identifying done. finding when an adds order first increased to just that their to is start and in would in come drive going is to we these training patients procedure find training, come And patients and training to back the they involves opposed patients. account such cases to essentially. of do for as that exit the of

And hit running. ground they the so

have an talk first a super that stronger have sit ways where kinds could a and expert experiences. they physicians, lessons are – those that patients those invariably, also with positive and follow-up will We always the three And made exercise. on down are learned of those about

how that’s accounts. or deeper our we’re with going initial So anyway, new deeper getting

Cecilia Furlong

Thank you. Great.

Operator

go Our your from Securities. question Steed ahead. line Travis BofA with comes [Operator open. next Instructions] Travis, Please is

Travis Steed

thanks Hey, course account with on the put the taking over for year. the Maybe some productivity questions. of progress numbers the

kind the of of X. think your go accounts kind are on how plan how color at and the And the of point. procedures think the the and for account of over you some of productivity look then kind to accounts doing said to to of this some XX% I those ramp exit was those expect accounts, the through prior X.X to of numbers year I want course the I you X that year. QX. And just maybe top

Derrick Sung

Thanks question. Thanks, Travis. that Sure. for

a at everybody, productivity So a revenue put There metrics, that quarter ramp-up a for reminder productivity we or the for are active take of had that were been looking on in on it average because does and cases clearly given ramp. the when look ground a of is account and account just months, order as a per accounts we while. in our generating up productivity to kind XX running at approximately

that around those and quarter. accounts per XX so It call up the average look active on cases X.X we for was our account we And in months. what at at and or established least are running first

Over the last bounced an some of around five on focusing are result same-store will that expect or kind we about, quarters that Glen cases, so in do three about X.X driving four per it’s efforts the of so, between quarter. in And average talked on and recently just believe cases increase sales focused and we with productivity.

six the guidance. year, implied is what between U.S. in is above be And exiting range. that expect So and our that in to that’s do we five the specifically, five, and U.S.

Relating I around XX% we second cases on of on performance per do see would our our continue accounts say, XX% top XX% of or to your of accounts. doing, XX% or average top accounts our say so, XX kind nearly question average, top to in quarter strong are our average. of on

growth range. same-store think driver that this wide sales. there focusing on a those the year our on year. we really So this focusing accounts that’s that And have what I productivity, sort see U.S. taking again, to is biggest lower of we’re is And

Travis Steed

this imagine of And points step QX. to last expected I helpful. on year, up to some finer put the I QX flat QX sequential terms QX. year that’s total in No, could to be QX revenue? you know

Derrick Sung

exactly. Exactly, do. We

between that would the that And In QX. of year a in softness growth we I and reported the fact, expected about that again, time the see expect – starting XX% specifically, quarter. in what of we January QX we reflects seasonal sequential some I the frame typical in would first say did

we or a so it’ll expect around up say I’d sequentially step in is So would what be of QX QX. XX% versus meaningful

Travis Steed

a Thanks drop That’s Great. lot. helpful. there. I’ll

Operator

open. very you Rick, your go Instructions] joining ahead. have [Operator Please Thank Stifel. Rick Wise line we much. is from Next, us

Rick Wise

– dig a sounds the are little us curious And the little the give afternoon, if practices that’s maybe for performing impact. just color a number having with your the on also you the positive efficiency color phrase on in a Glen, right coordinators have best Good of you to practices in sort it’s Clearly, deeper things? everybody. it? those optimally, way how you these clinical you’re of best Any That if of programs. important. many bringing on where – maybe brought accounts this I’m process to I’m – training accounts fascinated more could less procedural person.

Glen French

Sure.

procedure, we’re of selection the on So patient clinicians is execution who the optimized. doing across focusing and the best ensuring procedure the practices is optimized are the

where analogies they larger so and clinical really of mechanisms We’re sort that’s manufacturing that’s because increase work where done lot are there to focused being forth. But increase the your and the side been forth. programs, in. on on the so can coordinators, – time decrease keep by there administrative be time allowed things, or of coordinators of These programs of is and you the clinical by come are large cycle great and and throughput cycle running which a everything these

to on about from six administrative you that patients these making perspective. the looking identified that look at that the And those try into of identify hospital about calls, themselves within sure outbound across exist up accounts and is get prior in their we’re inside sort you an we’re we’ve accounts X And think then own the are when Stage best to sharing talked So stages movement really those of level, once that that practices the network. things. Stage X, ultimate

step where are that and there really so hospital sixth the and is what focus. learning talked in we are external best think about gatherings so the – of I terms an across practices – actually forth,

in look team. doing and involved. marketing, to hospital marketing but given the position marketing to so hospitals gets And their get are the learn what they and Not other stronger area. our expand And better from

Rick Wise

ex-FX. for give O rebound, or respectable it’s your know us don’t about of you the rest O for Is year? reacceleration the the so the year. should the I or rest expect, drivers XX% what recovery And U.S. the we for this a in dramatic pace of much. more Thanks little X%, Maybe business are a kind the for Obviously, the that expectations of U.S. U.S. Glen. color Derrick,

Glen French

Yes, I will onto you can that expect things – States. outside Derrick, but this, add I the United strengthen expect

than think we little softer I had quarter. a first

think the running things it’s this of I call, success the little said back up great we Having and a States. stories. to slower getting in was that, kind said happen outside earlier United the I had as

We’re I in business, about our so XX% little the accounts. But ones different the give can XX countries, a different five of the represent big you story countries. top all

So quarter. strengthen I going to first to is relative expect the Germany

across to Netherlands ahead their strong year, to market largest second I really largest expect perform continue that’s our markets, Switzerland great. behind continue point. to fourth we France to and as Spain think look United the well. – to third the very are the and expect continue to performance the both this States. UK, I perform strengthen, our and I which to

revenue we those the to perform expect, to first So well for I think from certainly a relative very countries quarter. perspective,

was the quarter for States second the a pretty United us think last quarter solid I year. outside

fully reflect – growth not – think sort I’m may percentage strengthening business. of So the that not the of don’t I

look on very look it at think you basis, a If sequential strong. it’ll I

Derrick Sung

Yes.

saw what forward. of XX% XX% we out somewhere is – that in growth that year XX% expect we’d or international growth that and Rick, our average, business this on XX% moving think between I

Rick Wise

so both. Thanks Thank Derrick. you much,

Operator

Instructions] your Thank much. Bednar you please line Jason calling very from Piper is go Jason, Sandler. [Operator ahead. open

Jason Bednar

of conversation being here. Hey, follow-up to the asked. couple and international alluding is to understand France and to from first Totally were there strong questions prior on a guys. the performance similar that the Good Really in U.S. questions. you’re for growth. afternoon. some terms just Thanks UK follow-ups of what on the pretty Maybe

a more the implication think smaller markets the some may international bit we growth those just maybe but of markets there, challenged quarter of were maybe up or here. I below you in be mentioning, saw Glen, some those that you not put first the

I think under few have been quarters for pressure a they now.

just question have in I growth? markets starting to and/or have do on after here is, visibility So the recovery show those preamble I you guess bottoming that a out

Glen French

really in. think don’t So return the But is really markets, – China outside is is other to of couple than most the our growth I for a – even we’re – I United States not there looking markets there reemerge. that, I think to starting that a

I think yet growing it’s important of not they XX but that’s to where are accounts to global year. we’ve note starting business, situations are But X% couple active. our a get got top that this

of So is. growing, which in think we’ve markets are They our those U.S. got X O the out of primarily business are XX that and I I where are. mentioned Europe bulk

So to question a aspect to is there specific your you’d like me try to address?

Jason Bednar

trying the smaller to markets while addressed growth range and looking for that we some have were been also that to of it good the how under and quarter. you pressure – you’re then some remain in those of a reconciling the there. in for to reconcile fact where No, I markets first of your I was I trying were just was I big think knowing guess similar

think the trying to answered here, So put again, just you just all but to pieces it. Maybe together – I

Glen French

X% markets little XX the markets our We the of in yes, Yes, like – they – markets, something represent to business. much. little that Jason, amount don’t the just got

isn’t coming one So needle. the do of any European down, going big those them, needle. up or the move move whether But markets to it’s

on we the the are front, faster maybe we’re grow so are less things to year. those international But continuing U.S. we’re than Although anyway, very so each in proceeding. happy how with

Jason Bednar

that whatnot some like of you have the moving wondering share related for through the maybe topic Glen, during like were little sounds of if could curious accounts – got delta some gone an this training away. But today? some Pulmonx. the around bit, retraining What parts about I’m I on account of those through some pandemic. in a involved get you’re trained willing versus We virtual those training just Maybe on the It during totally Okay. maybe those in-person some math to a not different the went I’ve between process of I’m to Rick squared virtually just that markets. opportunity a pandemic. sitting my of follow-up decent those a was retraining that but mentioned look does it’s much gap. the angle. that think a that how present the productivity and activity

Glen French

A I feel these that like into and think those multiple pulling people a from we’re experience so of – that the folks are physicians both they’ll better a it’s with just forth programs, the leading be training engagement. we during there lot institutions, degree better sessions. face-to-face and – attending, are back and of often is back

could So yes, on bringing it’s onto what it’s to it the But say retrospect, but and grounded kind good to as position people’s was in consistent weren’t foundation not face-to-face get to footing training a that of people do. of we do somebody felt they and so have. worthwhile – of sort and believe I’m other we It back. were best that And better that the a virtual we suffice being than when nothing, training though, hospitals allowed not was virtual nearly could we that statistics determine people we it relates folks as return we experience as on was the to training. in training share best into get forth,

footing. everybody this of trying – get we’re So putting to sort back onto everybody equal

Jason Bednar

so Alright, much. Okay. thanks

Operator

go Instructions] line from and from ahead. Bill Bill, your this is [Operator last Plovanic will Please much. evening, our you This be comes Canaccord Genuity. it Thank very question open.

Unidentified Analyst

[Indiscernible] you Plovanic. for the on question. for taking Bill Thank

forward? in operating leverage, you should going the much. investment how we think organization very Regarding Thank about commercial

Glen French

question. that for Thanks

relatively year, quarter very be So continued a adjusted was total expect, that, did increase, loss, we in loss and I growth to expand And as full EBITDA modest. EBITDA be the as happy expect increased commercial of But which investment this to moving by the our our in our would I in last certainly, do activities at Through what were and favorable and operating revenue. for to organization years, as be we nearly expect much demonstrate year. primarily – as our we rate – in as XXXX. commercial our what to to or leverage. to invest We loss not And investment continued continue this we show grow you would to our lost out but year-over-year EBITDA year, we line. forward. will do think to expect We driven to same favorable commercial activities is top the certainly expect

to growth even So we’re looking of stock-based ish, once total operating roughly expenses this year, ish line comps. top and XX% increase in XX% XX% at our you exclude XX% a

demonstrate continue to demonstrate leverage, will flow continue to to years. So I think us next to that’s what’s that cash – we over going and get few we the breakeven

Unidentified Analyst

Got And that. just with it. follow-up a as

a – about touched has and think been this Sort you when of the little on. bit

the there that Like learned impacting operating With Thank the was leverage? you two you’re from how think on is anything going any strategy, account-based deep connection you. top go that’s between there of growth things? about to those

Glen French

strategy? first. What the I didn’t hear

Unidentified Analyst

deeper. going just you’re talking just about When

Glen French

strategy, deep yes. Going

operating operating Going deeper realize leverage, as in relates existing to accounts we should leverage. it

not resources and each sharing to that where adding information other. hospitals We’re these are with – drive incremental

desires we’re and it’s other. these efforts supporting – accounts the from of to each So learn

it’s So favorable think I to leverage.

Unidentified Analyst

you Thank much. very

Glen French

you. Thank

Operator

That would back for Glen our now conclude like to remarks. French, it to and Q&A. closing does President CEO, turn I

Glen French

much. very you Thank

to confident again, execution, that your interest strong all we our important and We in very pleased and are the very like seeing building for us. and you its strategy good our Have I’d with So today. time much in we’re remain like thank evening. business. momentum we year the start an to your a for

Operator

participation may the program, now your disconnect. for and does today’s conclude you conference. you in This Thank

Pulmonx (LUNG) 2 May 232023 Q1 Earnings call transcript