Sonendo, Inc. Reports Third Quarter 2024 Financial Results
Sonendo (OTCQX: SONX) reported Q3 2024 financial results with total revenue of $8.0 million, a 2% decrease from Q3 2023. The company showed significant improvements in margins, with GAAP gross margin rising to 41.2% and adjusted gross margin reaching 42.6%. Operating loss reduced to $7.5 million, while free cash flow burn improved by 59% year-over-year to $4.3 million. GentleWave console revenue decreased 10% to $1.9 million, maintaining an active user base of over 800 customers. The company ended the quarter with $17.3 million in cash and cash equivalents.
Sonendo (OTCQX: SONX) ha riportato i risultati finanziari del terzo trimestre 2024, con un fatturato totale di 8,0 milioni di dollari, in calo del 2% rispetto al terzo trimestre 2023. L'azienda ha mostrato significativi miglioramenti nei margini, con il margine lordo GAAP che è salito al 41,2% e il margine lordo rettificato che ha raggiunto il 42,6%. La perdita operativa si è ridotta a 7,5 milioni di dollari, mentre il flusso di cassa libero è migliorato del 59% su base annua, attestandosi a 4,3 milioni di dollari. I ricavi della console GentleWave sono diminuiti del 10% a 1,9 milioni di dollari, mantenendo una base utenti attiva di oltre 800 clienti. L'azienda ha chiuso il trimestre con 17,3 milioni di dollari in contanti e equivalenti di cassa.
Sonendo (OTCQX: SONX) reportó los resultados financieros del tercer trimestre de 2024, con un ingreso total de 8.0 millones de dólares, una disminución del 2% en comparación con el tercer trimestre de 2023. La compañía mostró mejoras significativas en los márgenes, con un margen bruto GAAP que aumentó al 41.2% y un margen bruto ajustado alcanzando el 42.6%. La pérdida operativa se redujo a 7.5 millones de dólares, mientras que la quema de flujo de caja libre mejoró en un 59% año tras año, alcanzando 4.3 millones de dólares. Los ingresos de la consola GentleWave disminuyeron un 10% a 1.9 millones de dólares, manteniendo una base activa de más de 800 clientes. La compañía terminó el trimestre con 17.3 millones de dólares en efectivo y equivalentes de efectivo.
Sonendo (OTCQX: SONX)는 2024년 3분기 재무 결과를 보고했으며, 총 수익은 800만 달러로 2023년 3분기 대비 2% 감소했습니다. 회사는 GAAP 총 마진이 41.2%로 증가하고 조정 총 마진이 42.6%에 달하는 등 마진에서 상당한 개선을 보였습니다. 운영 손실은 750만 달러로 줄었고, 자유 현금 흐름 소모는 전년 대비 59% 개선된 430만 달러로 기록되었습니다. GentleWave 콘솔 수익은 10% 감소하여 190만 달러가 되었으며, 800명 이상의 활성 고객을 유지하고 있습니다. 회사는 분기를 마감하면서 1730만 달러의 현금 및 현금 등가물이 남아 있습니다.
Sonendo (OTCQX: SONX) a publié les résultats financiers du troisième trimestre 2024, avec des revenus totaux de 8,0 millions de dollars, soit une baisse de 2 % par rapport au troisième trimestre 2023. L'entreprise a montré des améliorations significatives des marges, avec un margin brut GAAP passant à 41,2% et un margin brut ajusté atteignant 42,6%. La perte d'exploitation a été réduite à 7,5 millions de dollars, tandis que la consommation de flux de trésorerie libre s'est améliorée de 59 % d'une année sur l'autre pour atteindre 4,3 millions de dollars. Les revenus de la console GentleWave ont diminué de 10 % pour atteindre 1,9 million de dollars, tout en maintenant une base d'utilisateurs actifs de plus de 800 clients. L'entreprise a terminé le trimestre avec 17,3 millions de dollars en espèces et équivalents de liquidités.
Sonendo (OTCQX: SONX) hat die finanziellen Ergebnisse für das 3. Quartal 2024 veröffentlicht, mit einem Gesamtumsatz von 8,0 Millionen Dollar, einem Rückgang von 2 % im Vergleich zum 3. Quartal 2023. Das Unternehmen zeigte erhebliche Verbesserungen bei den Margen, mit einem GAAP-Bruttomargen von 41,2% und einer adjustierten Bruttomarge von 42,6%. Der Betriebsverlust verringerte sich auf 7,5 Millionen Dollar, während der freie Cashflow-Burn im Jahresvergleich um 59 % auf 4,3 Millionen Dollar verbessert wurde. Der Umsatz des GentleWave-Systems ging um 10 % auf 1,9 Millionen Dollar zurück, wobei die aktive Nutzerbasis von über 800 Kunden aufrechterhalten wurde. Das Unternehmen schloss das Quartal mit 17,3 Millionen Dollar in Bar und Barmitteläquivalenten ab.
- Significant improvement in GAAP gross margin to 41.2% from 10.8% YoY
- Operating loss reduced by $9.9 million compared to prior year
- Free cash flow burn improved by 59% to $4.3 million
- Operating expenses reduced by $7.3 million compared to prior year
- Total revenue declined 2% YoY to $8.0 million
- GentleWave console revenue decreased 10% YoY
- Net loss from continuing operations of $7.5 million
- Outstanding term loan facility of $17.8 million
Recent Highlights
-
Generated
$8.0 million -
Drove substantial increases in GAAP gross margin and adjusted gross margins (non-GAAP) to
41.2% and42.6% , respectively, based primarily on lower manufacturing and console warranty costs; -
Significantly reduced GAAP operating loss to
$7.5 million $5.1 million 57% and54% improvement, respectively, compared to the third quarter of 2023; and -
Significantly reduced free cash flow burn to
$4.3 million 59% year-over-year reduction.
“We are pleased by the results we reported for the third quarter and remain encouraged by our continued successful execution of the strategic reset we embarked on earlier this year,” said Bjarne Bergheim, President and Chief Executive Officer of Sonendo. “While we are disappointed that we were not the winning bidder in the bankruptcy auction for the acquisition of Biolase, we remain committed to our customers, our shareholders and our employees. The executive team, along with our Board of Directors, continues to evaluate the various financing options and other strategic alternatives for Sonendo. We will update these important stakeholders as we make any decisions with respect to those options.”
Third Quarter 2024 Financial Results
Except as otherwise indicated, the GAAP and non-GAAP financial measures presented in this press release exclude discontinued operations associated with the Company’s divestiture of its TDO practice management software segment in March 2024.
Total revenue was
GAAP gross margin for the third quarter of 2024 increased to
Total operating expenses for the third quarter of 2024 totaled
Operating loss totaled
Net loss from continuing operations totaled
Free cash flow burn (non-GAAP), which the Company defines as the sum of net cash used in operating activities and purchases of property and equipment, totaled
As of September 30, 2024, the Company’s cash and cash equivalents and short-term investments totaled
About Sonendo
Sonendo is a commercial-stage medical technology Company focused on saving teeth from tooth decay, the most prevalent chronic disease globally. Sonendo develops and manufactures the GentleWave® System, an innovative technology platform designed to treat tooth decay by cleaning and disinfecting the microscopic spaces within teeth without the need to remove tooth structure. The system utilizes a proprietary mechanism of action, which combines procedure fluid optimization, broad-spectrum acoustic energy and advanced fluid dynamics, to debride and disinfect deep regions of the complex root canal system in a less invasive procedure that preserves tooth structure. The clinical benefits of the GentleWave System when compared to conventional methods of root canal therapy include improved clinical outcomes, such as superior cleaning that is independent of root canal complexity and tooth anatomy, high and rapid rates of healing and minimal to no post-operative pain. In addition, the GentleWave System can improve the workflow and economics of dental practices.
For more information about Sonendo and the GentleWave System, please visit www.sonendo.com. To find a GentleWave doctor in your area, please visit www.gentlewave.com.
Forward Looking Statements
This press release includes forward-looking statements (statements which are not historical facts) within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, express or implied forward-looking statements relating to the Company’s anticipated business and financial performance on an on-going basis. You are cautioned that such statements are not guarantees of future performance and that our actual results may differ materially from those set forth in the forward-looking statements. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions; speak only as of the date they are made; and, as a result, are subject to risks and uncertainties that may change at any time. Factors that could cause the Company’s actual results to differ materially from these forward-looking statements are described in detail in our registration statements, reports and other filings with the Securities and Exchange Commission, including the “Risk Factors” set forth in our Annual Report on Form 10-K, as supplemented by our quarterly reports on Form 10-Q. Such filings are available on our website or at www.sec.gov. We undertake no obligation to publicly update or revise forward-looking statements to reflect subsequent developments, events, or circumstances, except as may be required under applicable securities laws. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
Use of Non-GAAP Financial Measures
Sonendo’s financial results are prepared in accordance with generally accepted accounting principles in
SONENDO, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data)
|
||||||||
|
|
September 30, |
|
December 31, |
||||
|
|
2024 |
|
2023 |
||||
|
|
(Unaudited) |
|
|
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
13,096 |
|
|
$ |
14,009 |
|
Short-term investments |
|
|
4,188 |
|
|
|
32,773 |
|
Accounts receivable, net |
|
|
4,445 |
|
|
|
4,790 |
|
Inventory |
|
|
11,487 |
|
|
|
11,074 |
|
Prepaid expenses and other current assets |
|
|
508 |
|
|
|
1,969 |
|
Current assets of discontinued operations |
|
|
1,000 |
|
|
|
656 |
|
Total current assets |
|
|
34,724 |
|
|
|
65,271 |
|
Property and equipment, net |
|
|
691 |
|
|
|
461 |
|
Operating lease right-of-use assets |
|
|
2,592 |
|
|
|
2,703 |
|
Other assets |
|
|
124 |
|
|
|
128 |
|
Non-current assets of discontinued operations |
|
|
— |
|
|
|
9,597 |
|
Total assets |
|
$ |
38,131 |
|
|
$ |
78,160 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
686 |
|
|
$ |
1,142 |
|
Accrued expenses |
|
|
3,202 |
|
|
|
3,072 |
|
Accrued compensation |
|
|
2,008 |
|
|
|
2,413 |
|
Operating lease liabilities |
|
|
884 |
|
|
|
1,250 |
|
Current portion of term loan |
|
|
10,800 |
|
|
|
24,900 |
|
Other current liabilities |
|
|
1,535 |
|
|
|
1,844 |
|
Current liabilities of discontinued operations |
|
|
— |
|
|
|
700 |
|
Total current liabilities |
|
|
19,115 |
|
|
|
35,321 |
|
Operating lease liabilities, net of current |
|
|
1,570 |
|
|
|
1,423 |
|
Term loan, net of current |
|
|
6,084 |
|
|
|
12,467 |
|
Other liabilities |
|
|
396 |
|
|
|
530 |
|
Total liabilities |
|
|
27,165 |
|
|
|
49,741 |
|
Commitments and contingencies |
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
|
||||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
84 |
|
|
|
64 |
|
Additional paid-in-capital |
|
|
462,555 |
|
|
|
458,357 |
|
Accumulated other comprehensive loss |
|
|
3 |
|
|
|
11 |
|
Accumulated deficit |
|
|
(451,676 |
) |
|
|
(430,013 |
) |
Total stockholders’ equity |
|
|
10,966 |
|
|
|
28,419 |
|
Total liabilities and stockholders’ equity |
|
$ |
38,131 |
|
|
$ |
78,160 |
|
SONENDO, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited) (In thousands, except share and per share data)
|
||||||||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenue, net |
|
$ |
8,036 |
|
|
$ |
8,163 |
|
|
$ |
23,397 |
|
|
$ |
25,604 |
|
Cost of sales |
|
|
4,726 |
|
|
|
7,279 |
|
|
|
14,970 |
|
|
|
23,227 |
|
Gross profit |
|
|
3,310 |
|
|
|
884 |
|
|
|
8,427 |
|
|
|
2,377 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Selling and marketing |
|
|
3,642 |
|
|
|
6,954 |
|
|
|
12,858 |
|
|
|
22,628 |
|
General and administrative |
|
|
4,872 |
|
|
|
7,708 |
|
|
|
13,952 |
|
|
|
20,257 |
|
Research and development |
|
|
1,588 |
|
|
|
2,787 |
|
|
|
5,345 |
|
|
|
8,478 |
|
Total operating expenses |
|
|
10,102 |
|
|
|
17,449 |
|
|
|
32,155 |
|
|
|
51,363 |
|
Operating loss |
|
|
(6,792 |
) |
|
|
(16,565 |
) |
|
|
(23,728 |
) |
|
|
(48,986 |
) |
Interest and other expense |
|
|
(744 |
) |
|
|
(884 |
) |
|
|
(3,443 |
) |
|
|
(2,202 |
) |
Loss before income tax expense |
|
|
(7,536 |
) |
|
|
(17,449 |
) |
|
|
(27,171 |
) |
|
|
(51,188 |
) |
Income tax expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Loss from continuing operations, net of tax |
|
|
(7,536 |
) |
|
|
(17,449 |
) |
|
|
(27,171 |
) |
|
|
(51,188 |
) |
Income from discontinued operations, net of tax |
|
|
— |
|
|
|
469 |
|
|
|
5,508 |
|
|
|
1,147 |
|
Net loss |
|
$ |
(7,536 |
) |
|
$ |
(16,980 |
) |
|
$ |
(21,663 |
) |
|
$ |
(50,041 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (net of tax): |
|
|
|
|
|
|
|
|
||||||||
Unrealized (loss) gain on short-term investments |
|
|
5 |
|
|
|
24 |
|
|
|
(8 |
) |
|
|
55 |
|
Comprehensive loss |
|
$ |
(7,531 |
) |
|
$ |
(16,956 |
) |
|
$ |
(21,671 |
) |
|
$ |
(49,986 |
) |
Net loss per share from continuing operations – basic and diluted |
|
$ |
(15.77 |
) |
|
$ |
(37.01 |
) |
|
$ |
(57.18 |
) |
|
$ |
(108.93 |
) |
Net income per share from discontinued operations – basic and diluted |
|
$ |
— |
|
|
$ |
0.99 |
|
|
$ |
11.59 |
|
|
$ |
2.44 |
|
Net loss per share – basic and diluted |
|
$ |
(15.77 |
) |
|
$ |
(36.02 |
) |
|
$ |
(45.59 |
) |
|
$ |
(106.49 |
) |
Weighted-average shares outstanding – basic and diluted |
|
|
477,857 |
|
|
|
471,427 |
|
|
|
475,188 |
|
|
|
469,934 |
|
SONENDO, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited; in thousands; except percentage)
|
||||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Gross profit |
|
$ |
3,310 |
|
|
$ |
884 |
|
|
$ |
8,427 |
|
|
$ |
2,377 |
|
Gross margin |
|
|
41.2 |
% |
|
|
10.8 |
% |
|
|
36.0 |
% |
|
|
9.3 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
||||||||
Excess and obsolete inventory reserve related to recently discontinued products |
|
|
100 |
|
|
|
— |
|
|
|
341 |
|
|
|
2,917 |
|
Impairment of long-lived assets |
|
|
— |
|
|
|
1,341 |
|
|
|
161 |
|
|
|
1,341 |
|
Stock-based compensation expense |
|
|
14 |
|
|
|
44 |
|
|
|
324 |
|
|
|
262 |
|
Adjusted gross profit |
|
$ |
3,424 |
|
|
$ |
2,269 |
|
|
$ |
9,253 |
|
|
$ |
6,897 |
|
Adjusted gross margin |
|
|
42.6 |
% |
|
|
27.8 |
% |
|
|
39.5 |
% |
|
|
26.9 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Loss from continuing operations, net of tax |
|
$ |
(7,536 |
) |
|
$ |
(17,449 |
) |
|
$ |
(27,171 |
) |
|
$ |
(51,188 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
||||||||
Interest and other expense |
|
|
744 |
|
|
|
884 |
|
|
|
3,443 |
|
|
|
2,202 |
|
Depreciation and amortization |
|
|
75 |
|
|
|
402 |
|
|
|
203 |
|
|
|
1,152 |
|
Excess and obsolete inventory reserve related to recently discontinued products |
|
|
100 |
|
|
|
— |
|
|
|
341 |
|
|
|
2,917 |
|
Stock-based compensation expense |
|
|
630 |
|
|
|
1,739 |
|
|
|
3,854 |
|
|
|
5,654 |
|
Impairment of long-lived assets |
|
|
— |
|
|
|
3,392 |
|
|
|
161 |
|
|
|
3,392 |
|
Transaction and financing costs related to Biolase acquisition |
|
|
874 |
|
|
|
— |
|
|
|
874 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
(5,113 |
) |
|
$ |
(11,032 |
) |
|
$ |
(18,295 |
) |
|
$ |
(35,871 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Cash Flows |
|
|
|
|
|
|
|
|
||||||||
Cash flow used in operating activities |
|
$ |
(4,311 |
) |
|
$ |
(10,216 |
) |
|
$ |
(21,718 |
) |
|
$ |
(36,557 |
) |
Purchases of property and equipment |
|
|
— |
|
|
|
(216 |
) |
|
|
(161 |
) |
|
|
(843 |
) |
Free cash flow (burn) |
|
$ |
(4,311 |
) |
|
$ |
(10,432 |
) |
|
$ |
(21,879 |
) |
|
$ |
(37,400 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241112030951/en/
Investor Contact:
Gilmartin Group
Greg Chodaczek
IR@Sonendo.com
Source: Sonendo
FAQ
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