Pulmonx Corporation Common Stock Canaccord Genuity's 46th Annual Growth Conference

Well, we have filled all of our sales leadership openings that we had. We had a significant amount of turnover last year in our sales organization, so that was the first level thing that we needed to do. We reorganized the U.S. sales situation such that we created 2 openings in that leadership team. We actually only had 1 that was sort of unanticipated. So we had 2 people that we promoted. We divided the country into half, and that duo reports directly into me. So that was a change over what the prior structure was. We have been focused on filling sales territories. Most of those have been filled. I would characterize turnover as return to sort of industry norms or sort of in that neighborhood.

So, I feel like that is substantially the first level objective that we were looking to accomplish, and the second was just to simplify the focus within the sales organization, which may be the subject of another question that you have. The thing that surprised me or the thing that I found most interesting on my return was sort of exogenous to the company. The interventional pulmonology space, I think since I do not know if anybody knows my background, but I was with the company for about a decade. I retired for 18 months, stayed on the board, and then came back to the company about 9 months ago. So that, with regard to what changed since I left, if you will- was just the pulmonologist was really lower on the totem pole of priorities within hospitals when I left.

I have to thank Intuitive Surgical and their Ion robot, which really brought, I think, pulmonology sort of to a higher level, requiring a $1 million investment or on that order. There has been a lot of cases and a lot of staffing that has strengthened as a result of that, and I think that is very good for the interventional pulmonology space in general. So that was probably the biggest change.

Yeah. Well, we feel like as we talked about just a moment ago, that we are just getting started as it relates to the opportunity that exists to just focus our organization, to have folks, got to have the butts in the seats, get people trained up. Our tenure is substantially less than what it used to be, so we have got to get training as a central focus, and we will be executing on that plan, and realizing, we think, benefits from it well into next year. Late next year, we expect, or sometime next year, we are going to be finished with our AeriSeal trial.

We have the CE mark on AeriSeal already. We have been holding off on launching outside the U.S. for two reasons. One, we wanted to make sure we had the study done, and there are some enrolling sites in Europe, and we did not want the commercialization to get in the way of the execution of this study because it is on the critical path to the U.S. marketplace. That has been something that we have been largely focused on. The other thing is we are waiting for the publication of the CONVERT I trial, which was essentially a predecessor trial that is largely a replica of CONVERT II, and that has been written up and submitted, and we are hoping to get that published. We need those two things to be done, and then we will commercialize in the back half of next year.

AeriSeal provides us with an opportunity to both realize revenues from it unto itself, and also should be a nice TAM expander for our valve business. That is the sort of the next stage as we look into the future.

Okay. There's a lot of different things.

Sorry. No, no. We have the United States, every inch of the United States is divided up into 42 different sales territories.

About 22 of those territories have a junior rep in them.

Typically, that is because it is, revenue-wise, a very big territory and there's a lot going on, or geographically, and/or geographically, it's very big. And so we have these junior reps to help cover. This is something that we implemented, this junior rep concept, essentially, we started before I left. Over the years, we've had at least a dozen of them that have come in and have been promoted into territory management roles. But it wasn't the primary reason for the creation of this junior rep, if you will.

It's kind of a really nice benefit that comes from it. With regard to turnover, I think that the turnover that we had in my first stint was quite a bit lower than what we experienced as of late.