Page 1

pulmonx Pulmonx Reports Second Quarter 2021 Financial Results August 3 , 2021 REDWOOD CITY , Calif . , Aug. 03 , 2021 ( GLOBE NEWSWIRE ) Pulmonx Corporation ( Nasdaq : LUNG ) ( " Pulmonx " or the " Company " ) , a global leader in minimally invasive treatments for severe lung disease , today reported financial results for the second quarter ended June 30 , 2021 . Recent Highlights • Achieved worldwide revenue of $ 12.2 million in the second quarter of 2021 , a 232 % increase over the same period last year • Realized gross margin of 74 % in the second quarter of 2021 as compared to 28 % in the same period last year • Added 20 new U.S. Zephyr® Valve treating centers , increasing the total to 180 • Launched a software upgrade for Chartis to enable simpler and faster patient assessment of collateral ventilation • Long - term follow - up data : o Published from the IMPACT study showing durable benefits in patients with homogeneous distribution of emphysema treated with the Zephyr Valve , the only endobronchial valve approved by FDA to treat these patients o Presented from the TRANSFORM study at the American Thoracic Society 2021 conference demonstrating durable benefits with Zephyr Valve treatment in patients with heterogeneous emphysema " In the second quarter we achieved record revenue and gross margin as procedure volumes began to normalize across key markets , " said Glen French , President & Chief Executive Officer . " Overall , we are very pleased with the strengthening of our business exiting the second quarter and look forward to building on our commercial momentum and scientific leadership as we move through the remainder of the year . " Second Quarter 2021 Financial Results Total worldwide revenue in the second quarter of 2021 was $ 12.2 million , a 232 % increase from $ 3.7 million in the second quarter of 2020 and an increase of 218 % on a constant currency basis . U.S. revenue was $ 6.6 million , a 343 % increase compared to the second quarter of 2020 . International revenue was $ 5.6 million , a 157 % increase compared to the second quarter of 2020 , and a 134 % increase on a constant currency basis . The increase in revenue was due to a recovery in procedure volume as the impact of COVID - 19 on the Company's business , which was significant in the second quarter of 2020 , eased and as increasing commercial traction in the U.S. drove adoption of the Zephyr® Valve in new accounts . Gross profit in the second quarter of 2021 was $ 9.0 million , compared to $ 1.0 million in the second quarter of 2020. Gross margin for the second quarter of 2021 was 74 % , up from 28 % for the same period in 2020 which was depressed due to a slowdown in production during the first few months of the pandemic . Operating expenses in the second quarter of 2021 were $ 21.1 million , compared to $ 12.5 million in the second quarter of 2020 , representing an increase of 68 % . The increase in operating expenses was primarily driven by an investment in personnel to expand our commercial , research and development , and general and administrative functions , stock - based compensation , and expenses associated with operating as a public company . Net loss in the second quarter of 2021 was $ 12.4 million , or $ 0.34 per share , compared to a net loss of $ 11.9 million , or $ 6.15 per share , for the same period in 2020 . Cash , cash equivalents , and marketable securities totaled $ 211.5 million as of June 30 , 2021 . 2021 Financial Outlook While COVID - 19 continues to pose a risk of uncertainty to the Company's operating results and overall business , Pulmonx is updating its full year 2021 revenue guidance to be in the range of $ 49 to $ 51 million , which represents 50 % to 56 % growth over the Company's full year 2020 revenue . This compares to prior 2021 revenue guidance of $ 48 to $ 50 million . Pulmonx continues to expect total operating expenses for the full year 2021 to remain in the range of $ 85 to $ 90 million inclusive of stock - based compensation . Webcast and Conference Call Details Pulmonx will host a conference call today , August 3 , 2021 , at 1:30 p.m. PT / 4:30 p.m. ET to discuss its second quarter 2021 financial results . The dial - in numbers are ( 833 ) 614-1518 for domestic callers and ( 270 ) 823-1072 for international callers . The conference ID is 5682784. 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 Pulmonx has presented constant currency percentage change in revenues , a non - GAAP financial measure , in this press release . 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