0001127537FALSE00011275372024-02-212024-02-21


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 21, 2024

PULMONX CORPORATION
(Exact name of Registrant as Specified in Its Charter)

Delaware001-3956277-0424412
(State or Other Jurisdiction(Commission File Number)(IRS Employer
of Incorporation)Identification No.)
700 Chesapeake Drive
Redwood City,CA94063
(Address of Principal Executive Offices)(Zip Code)
(650)364-0400
Registrant's telephone number, including area code

Not Applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.001 par valueLUNGThe Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02 Results of Operations and Financial Condition.

On February 21, 2024, Pulmonx Corporation (the “Company”) issued a press release announcing its financial results for the fourth fiscal quarter and year ended December 31, 2023. A copy of the Company’s press release dated February 21, 2024, titled “Pulmonx Reports Fourth Quarter and Full Year 2023 Financial Results” is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The foregoing information (including the exhibit hereto) is being furnished under “Item 2.02 Results of Operations and Financial Condition” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d)Exhibits.
Exhibit No.Description
99.1
104Cover Page Interactive Data File (embedded within the Inline XBRL document)



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Pulmonx Corporation

Dated: February 21, 2024

By:/s/ John McKune
John McKune
Interim Chief Financial Officer


Exhibit 99.1
pulmonxlogo.jpg

Pulmonx Reports Fourth Quarter and Full Year 2023 Financial Results

Redwood City, CA – February 21, 2024 – Pulmonx Corporation (Nasdaq: LUNG) (“Pulmonx” or the "Company"), a global leader in minimally invasive treatments for lung disease, today reported financial results for the fourth quarter and full year of 2023 ended December 31, 2023.

Recent Highlights
•Delivered $68.7 million in worldwide revenue for the full year of 2023, a 28% increase over the prior year
•Achieved record worldwide revenue of $19.3 million for the fourth quarter of 2023, a 25% increase over the same period last year and an increase of 23% in constant currency
•Set new records of $13.7 million and $45.9 million in U.S. revenue for the fourth quarter 2023 and the full year 2023, representing 45% and 41% year-over-year growth, respectively
•Realized gross margin of 75% in the fourth quarter of 2023 and 74% for the full year of 2023
•Added 14 new Zephyr Valve U.S. treatment centers in the fourth quarter 2023
•Received Food and Drug Administration approval to commence CONVERT II pivotal study for AeriSeal System

“Our performance throughout 2023 consistently demonstrated the success of our focused U.S. commercial strategy and our ability to further expand access to our Zephyr Valve treatment within our substantial addressable patient population. Our success, particularly in the U.S., leaves us confident that our business is better positioned than ever for long-term, sustainable growth,” said Glen French, President & Chief Executive Officer. “In 2024, we look forward to further expanding and strengthening our account base.”

Fourth Quarter 2023 Financial Results
Total worldwide revenue in the fourth quarter of 2023 was $19.3 million, a 25% increase from $15.4 million in the fourth quarter of 2022 and an increase of 23% on a constant currency basis. U.S. revenue was $13.7 million, a 45% increase from the fourth quarter of 2022. International revenue was $5.6 million, a 7% decrease compared to the fourth quarter of 2022, and a 12% decrease on a constant currency basis.

Gross profit in the fourth quarter of 2023 was $14.4 million, a 29% increase compared to $11.2 million for the fourth quarter of 2022. Gross margin for the fourth quarter of 2023 was 75%, an increase from 73% for the same period in 2022, reflecting benefits from production efficiencies and improved pricing.

Operating expenses in the fourth quarter of 2023 were $28.3 million, compared to $25.8 million for the fourth quarter of 2022, representing an increase of 10%. The increase in operating expenses was primarily attributable to continued investments in our commercial activities and higher stock-based compensation expense.

Net loss in the fourth quarter of 2023 was $13.9 million, or $0.36 per share, compared to a net loss of $14.3 million, or $0.38 per share, for the same period in 2022.

Adjusted EBITDA loss in the fourth quarter of 2023 was $8.4 million compared to $9.8 million for the same period in 2022.

Full Year 2023 Financial Results
Total worldwide revenue for the full year of 2023 was $68.7 million, a 28% increase from $53.7 million for the full year of 2022 and an increase of 28% on a constant currency basis. U.S. revenue was $45.9 million, a 41% increase from $32.5 million for the full year of 2022. International revenue was $22.8 million, an 8% increase from $21.2 million for the full year of 2022, and a 6% increase on a constant currency basis. The growth in revenue reflects continued commercial momentum and adoption of Zephyr Valve procedures.



Gross profit for the full year of 2023 was $50.8 million, a 27% increase compared to $39.9 million for the full year of 2022. Gross margin for the full year of 2023 was 74%, approximately flat compared to the prior full year.

Operating expenses for the full year of 2023 were $112.7 million, compared to $98.5 million for the full year of 2022, representing an increase of 14%. The increase in operating expenses was primarily attributable to continued investments in our commercial activities, clinical development costs related to our AeriSeal program, legal expenses, and higher stock-based compensation expense.

Net loss for the full year of 2023 was $60.8 million, or $1.60 per share, compared to a net loss of $58.9 million, or $1.59 per share, for the same period in 2022.

Adjusted EBITDA loss for the full year of 2023 was $39.0 million compared to $41.1 million for the full year of 2022.

Cash, cash equivalents, and marketable securities totaled $131.5 million as of December 31, 2023.

Full Year 2024 Financial Guidance
Pulmonx expects revenue for the full year 2024 to be in the range of $81 million to $84 million.

The Company expects gross margin for the full year 2024 to fall within the range of 74% to 75%.

Pulmonx expects total operating expenses for the full year 2024 to fall within the range of $132 million to $134 million, inclusive of approximately $30 million of non-cash stock-based compensation.

Webcast and Conference Call Details
Pulmonx will host a conference call today, February 21, 2024, at 1:30 p.m. PT / 4:30 p.m. ET to discuss its fourth quarter and full year 2023 financial results and to discuss its full year 2024 financial guidance. A live webcast of the conference call will be available on the Investor Relations section of the Company's website at https://investors.pulmonx.com/. The webcast will be archived on the website following the completion of the call.

Use of Non-GAAP Financial Measures
To supplement Pulmonx’s condensed consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, Pulmonx provides certain non-GAAP financial measures in this release as supplemental financial metrics. Non-GAAP financial measures reflect an additional way of viewing aspects of the Company's operations that, when viewed with GAAP results, may provide a more complete understanding of factors and trends affecting Pulmonx’s business.

Constant currency calculations show reported current period revenues as if the foreign exchange rates remain the same as those in effect in the comparable prior year period. Pulmonx uses results on a constant currency basis as one measure to evaluate its performance. Pulmonx calculates constant currency by calculating current-year results using foreign currency exchange rates from the applicable comparable period in the prior year. Pulmonx generally refers to such amounts calculated on a constant currency basis as excluding the impact of foreign exchange or being on a constant currency basis. Pulmonx believes the presentation of results on a constant currency basis in addition to reported results helps improve investors’ ability to understand its operating results and evaluate its performance in comparison to prior periods. Pulmonx generally uses constant currency to facilitate management's financial and operational decision-making, including evaluation of Pulmonx’s historical operating results.

The Company defines Adjusted EBITDA as earnings before interest income or expense, taxes, depreciation and amortization and stock-based compensation and may also exclude certain non-recurring, irregular or one-time items not reflective of our ongoing core business operations. Management believes in order to properly understand short-term and long-term financial trends, investors may wish to consider the impact of these excluded items in addition to GAAP measures. Further, management uses adjusted EBITDA for strategic and annual operating planning. We believe these non-GAAP financial measures are useful as a supplement in evaluating our ongoing operational performance and enhancing an overall understanding of our past financial performance.

Reconciliation of these non-GAAP financial measures to the most comparable GAAP measures is set forth in the tables below.



The non-GAAP financial measures used by Pulmonx should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. Because non-GAAP financial measures exclude the effect of items that increase or decrease the company's reported results of operations, management strongly encourages investors to review, when they become available, the Company's consolidated financial statements and publicly filed reports in their entirety. The Company's definition of non-GAAP measures may differ from similarly titled measures used by others.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on management’s current assumptions and expectations of future events and trends, which affect or may affect our strategy, operations or financial performance, and actual results may differ materially from those expressed or implied in such statements due to numerous risks and uncertainties. These forward-looking statements include, but are not limited to, statements regarding our commercial strategy to boost workflow efficiencies across our account base, our expectations regarding account activity and productivity, advancement of our AeriSeal clinical development program toward commencement of our U.S. clinical trial, the timing of trial enrollment and data results from the CONVERT II trial and our possible or assumed future results of operations, including long-term outlook, descriptions of our revenues, total operating expenses, gross margin, profitability, guidance for full year 2024, commercial momentum, physician engagement and awareness of the benefits of the Zephyr Valve, the ability to expand and strengthen our account base and overall business strategy. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Factors that could cause actual results to differ materially from those contemplated in this press release can be found in the Risk Factors section of our filings with the Securities and Exchange Commission (“SEC”), including our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2023 filed with the SEC on November 3, 2023, available at www.sec.gov. Because forward-looking statements are inherently subject to risks and uncertainties, you should not rely on these forward-looking statements as predictions of future events. All statements other than statements of historical fact are forward-looking statements. Except to the extent required by law, we undertake no obligation to update or review any estimate, projection, or forward-looking statement. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in our business.

About Pulmonx Corporation
Pulmonx Corporation (Nasdaq: LUNG) is a global leader in minimally invasive treatments for chronic obstructive pulmonary disease (COPD). Pulmonx’s Zephyr® Endobronchial Valve, Chartis® Pulmonary Assessment System and StratX® Lung Analysis Platform are designed to assess and treat patients with severe emphysema/COPD who despite medical management are still profoundly symptomatic. Pulmonx received FDA pre-market approval to commercialize the Zephyr Valve following its designation as a “breakthrough device.” The Zephyr Valve is commercially available in more than 25 countries, is included in global treatment guidelines and is widely considered a standard of care treatment option for improving breathing, activity and quality of life in patients with severe emphysema. For more information on the Zephyr Valves and the company, please visit www.Pulmonx.com.

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

Investor Contact
Brian Johnston
Gilmartin Group
investors@pulmonx.com






Pulmonx Corporation
Consolidated Statements of Operations
(in thousands, except share and per share data)
(Unaudited)

Three Months Ended December 31,Twelve Months Ended December 31,
2023202220232022
Revenue$19,278 $15,425 $68,675 $53,662 
Cost of goods sold4,878 4,241 17,923 13,797 
Gross profit14,400 11,184 50,752 39,865 
Operating expenses
  Research and development3,896 3,903 18,080 15,397 
  Selling, general and administrative24,423 21,908 94,607 83,105 
Total operating expenses28,319 25,811 112,687 98,502 
Loss from operations(13,919)(14,627)(61,935)(58,637)
Interest income1,541 748 5,568 1,529 
Interest expense(905)(359)(3,232)(1,066)
Other income (expense), net(357)201 (673)(396)
Net loss before tax(13,640)(14,037)(60,272)(58,570)
Income tax expense248 246 571 353 
Net loss$(13,888)$(14,283)$(60,843)$(58,923)
Net loss per share attributable to common stockholders, basic and diluted$(0.36)$(0.38)$(1.60)$(1.59)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted38,377,404 37,379,644 37,974,567 37,096,541 





Pulmonx Corporation
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)

December 31, 2023December 31, 2022
Assets
Current assets
  Cash and cash equivalents$83,547 $101,736 
  Restricted cash237 231 
  Short-term marketable securities33,555 39,402 
  Accounts receivable, net12,105 8,677 
  Inventory16,743 14,564 
  Prepaid expenses and other current assets4,235 4,343 
Total current assets150,422 168,953 
Long-term marketable securities14,390 5,924 
Long-term inventory2,580 5,283 
Property and equipment, net4,028 4,694 
Goodwill2,333 2,333 
Intangible assets, net31 154 
Right of use assets3,406 5,806 
Other long-term assets591 529 
Total assets$177,781 $193,676 
Liabilities and Stockholders' Equity
Current liabilities
  Accounts payable$1,497 $1,758 
  Accrued liabilities16,234 13,276 
  Income taxes payable93 19 
  Deferred revenue104 120 
  Short-term debt2,155 90 
  Current lease liabilities3,074 3,229 
Total current liabilities23,157 18,492 
Deferred tax liability114 94 
Long-term lease liabilities1,106 3,849 
Long-term debt35,089 17,234 
Total liabilities59,466 39,669 
Stockholders' equity
Common stock39 38 
  Additional paid-in capital526,797 502,712 
  Accumulated other comprehensive income2,640 1,575 
  Accumulated deficit(411,161)(350,318)
Total stockholders' equity118,315 154,007 
Total liabilities and stockholders' equity$177,781 $193,676 


Pulmonx Corporation
Reconciliation of Reported Revenue % Change to Constant Currency Revenue % Change
(in thousands)
(Unaudited)

Three Months Ended December 31,
20232022% ChangeFX Impact %Constant Currency % Change
United States$13,720 $9,455 45.1 %— %45.1 %
International5,558 5,970 (6.9)%5.0 %(11.9)%
Total$19,278 $15,425 25.0 %2.0 %23.0 %


 Twelve Months Ended December 31,
20232022% ChangeFX Impact %Constant Currency % Change
United States$45,917 $32,486 41.3 %— %41.3 %
International22,758 21,176 7.5 %1.3 %6.2 %
Total$68,675 $53,662 28.0 %0.5 %27.5 %





Pulmonx Corporation
Reconciliation of Net Loss to Non-GAAP Adjusted EBITDA
(in thousands)
(Unaudited)

Three Months Ended December 31,Twelve Months Ended December 31,
2023202220232022
GAAP Net loss$(13,888)$(14,283)$(60,843)$(58,923)
  Depreciation and amortization287 386 1,548 1,513 
  Stock-based compensation5,598 4,247 22,101 16,445 
  Interest (income)/expense, net(636)(389)(2,336)(463)
  Provision for income taxes248 246 571 353 
Adjusted EBITDA$(8,391)$(9,793)$(38,959)$(41,075)

v3.24.0.1
Cover Page
Feb. 21, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 21, 2024
Entity Registrant Name PULMONX CORPORATION
Entity Incorporation, State or Country Code DE
Entity File Number 001-39562
Entity Tax Identification Number 77-0424412
Entity Address, Address Line One 700 Chesapeake Drive
Entity Address, City or Town Redwood City,
Entity Address, State or Province CA
Entity Address, Postal Zip Code 94063
City Area Code 650
Local Phone Number 364-0400
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.001 par value
Trading Symbol LUNG
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0001127537
Amendment Flag false
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