Sonendo, Inc. (“Sonendo”), a leading dental technology company
and developer of the GentleWave® System, today reported financial
results for the quarter and year ended December 31, 2022.
Highlights
- Total revenue of $12.2 million for the fourth quarter of 2022,
representing growth of 24%, compared to the prior year period
- Total revenue of $41.7 million for full year 2022, representing
growth of 25% from full year 2021
- Consumable revenue of $5.0 million for the fourth quarter of
2022, representing growth of approximately 31% compared to prior
year period
- Ending installed base as of December 31, 2022, was 976
units
- Completed private financing during the third quarter of 2022,
resulting in $63 million of gross proceeds
“We had a strong fourth quarter to close out 2022, Sonendo’s
first full year as a public company,” said Bjarne Bergheim,
president and chief executive officer of Sonendo. “In the fourth
quarter we were pleased to announce the one millionth GentleWave
Procedure, highlighting the continued adoption of our technology
and the success of our commercial strategy. Additionally, we were
pleased with the launch of our GentleWave G4 System which, when
paired with CleanFlow Technology, is resulting in compelling
feedback from doctors regarding ease of use, patient experience and
practice efficiency. We look forward to driving further market
adoption and steady procedure volume growth in 2023.”
Fourth Quarter 2022 Financial Results
Total revenue was $12.2 million for the fourth quarter of 2022,
an increase from $9.9 million for the fourth quarter of 2021.
GentleWave Console revenue was $3.9 million for the fourth quarter
of 2022, an increase from $3.1 million for the fourth quarter of
2021. Procedure instrument revenue was $5.0 million, an increase
from $3.8 million for the fourth quarter of 2021. Software revenue
was $2.4 million, an increase from $2.2 million for the fourth
quarter of 2021. As of December 31, 2022, ending installed base was
976 units.
Gross margin for the fourth quarter of 2022 was 27%, compared to
25% for the fourth quarter of 2021.
Total operating expenses for the fourth quarter of 2022 were
$18.1 million, compared to $16.0 million for the fourth quarter of
2021.
Loss from operations was $14.8 million for the fourth quarter of
2022, compared to $13.6 million for the fourth quarter of 2021.
Non-GAAP loss from operations was $11.9 million for the fourth
quarter of 2022 compared to $11.9 million for the fourth quarter of
2021. Non-GAAP loss from operations excludes revaluation of
contingent consideration, stock-based compensation expense, and
depreciation and amortization expense.
In the fourth quarter of 2022, a $4.4 million Employee Retention
Credit (ERC) was recognized in other income; the ERC is provided
under the CARES Act related to qualified wages paid to the
employees in 2021.
Net loss was $10.9 million for the fourth quarter of 2022,
compared to $13.7 million for the fourth quarter of 2021.
Cash and cash equivalents and short-term investments as of
December 31, 2022 totaled $91.4 million.
Full Year 2022 Financial Results
Revenue was $41.7 million for 2022, an increase from $33.2
million for 2021. GentleWave Console revenue was $10.8 million for
2022, an increase from $8.4 million for 2021. Procedure instrument
revenue was $18.9 million, an increase from $14.4 million for 2021.
Software revenue was $8.4 million, an increase from $7.4 million
for 2021.
Gross margin for 2022 was 25%, consistent with 2021.
Total operating expenses for 2022 were $68.7 million, compared
to $52.7 million for 2021.
Loss from operations was $58.2 million for 2022, compared to
$44.4 million for 2021. Non-GAAP loss from operations was $49.0
million for 2022, compared to $39.8 million for 2021. Non-GAAP loss
from operations excludes revaluation of contingent consideration,
stock-based compensation expense, and depreciation and amortization
expense.
Net loss was $57.1 million for 2022 compared to $48.5 million
for 2021.
2023 Financial Guidance
The Company expects full year 2023 total revenue to be in the
range of $48.0 million to $51.0 million.
Webcast and Conference Call Information
Sonendo will host a conference call to discuss the fourth
quarter and full year 2022 financial results after the market close
on Wednesday, March 8, 2023 at 1:30 p.m. Pacific Time / 4:30 p.m.
Eastern Time. Investors interested in listening to the conference
call may do so by dialing (844) 200-6205 for domestic callers or
(929) 526-1599 for international callers, using access code:
340170. Live audio of the webcast will be available on the
“Investors” section of the company’s website at:
https://investor.sonendo.com. The webcast will be archived and
available for replay for at least 90 days after the event.
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. Sonendo is also the parent company
of TDO® Software, the developer of widely used endodontic practice
management software solutions, designed to simplify practice
workflow. TDO Software integrates practice management, imaging,
referral reporting and CBCT imaging, and offers built-in
communication with the GentleWave System.
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
In addition to background and historical information, this press
release contains “forward-looking statements” based on Sonendo’s
current expectations, forecasts and beliefs including statements
related to Sonendo's 2023 financial guidance. These forward-looking
statements are subject to inherent uncertainties, risks, and
assumptions that are difficult to predict. Actual outcomes and
results could differ materially due to a number of factors,
including the degree of market acceptance of our products and our
ability to increase penetration in existing markets and expand into
adjacent markets, our ability to compete, general economic
conditions and the ongoing uncertainty surrounding the COVID-19
pandemic. These and other risks and uncertainties include those
described more fully in the section titled “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operation” and elsewhere in its public filings with the
U.S. Securities and Exchange Commission (SEC), including our
Quarterly Report on Form 10-Q for the quarter ended September 30,
2022 filed with the SEC on November 9, 2022, the Annual Report on
Form 10-K for the year ended December 31, 2022 to be filed with the
SEC, as well as any reports that we may file with the SEC in the
future. Forward-looking statements contained in this announcement
are based on information available to Sonendo as of the date
hereof. Sonendo undertakes no obligation to update such information
except as required under applicable law. These forward-looking
statements should not be relied upon as representing Sonendo’s
views as of any date subsequent to the date of this press release
and should not be relied upon as prediction of future events. In
light of the foregoing, investors are urged not to rely on any
forward-looking statement in reaching any conclusion or making any
investment decision about any securities of Sonendo.
Use of Non-GAAP Financial Measures
Sonendo’ financial results are prepared in accordance with
accounting principles generally accepted in the United States of
America (“GAAP”). This press release and the reconciliation tables
included in the financial schedules below include non-GAAP loss
from operations. Non-GAAP loss from operations exclude, as
applicable, (i) revaluation of contingent consideration, (iii)
stock-based compensation expense, and (iii) depreciation and
amortization. Management believes that non-GAAP loss from
operations are useful in helping identify the company’s core
operating performance and enables management to consistently
analyze the period-to-period financial performance of the core
business operations. Management also believes that non-GAAP loss
from operations, will enable investors to assess the company in the
same way that management has historically assessed the company’s
operating results against comparable companies with conventional
accounting methodologies. The company’s definitions of non-GAAP
loss from operations have limitations as analytical tools and may
differ from other companies reporting similarly named measures.
Non-GAAP measures should not be considered measures of financial
performance under GAAP, and the items excluded from such non-GAAP
measures should not be considered in isolation or as alternatives
to financial statement data presented in the financial statements
as an indicator of financial performance or liquidity. Non-GAAP
measures should be considered in addition to results prepared in
accordance with GAAP but should not be considered a substitute for
or superior to GAAP results.
For a reconciliation of our non-GAAP loss from operations
presented herein to GAAP loss from operations, the most directly
comparable GAAP financial measures, please see “Reconciliation of
GAAP to Non-GAAP Loss from Operations” in the financial schedules
below.
SONENDO, INC.
CONSOLIDATED BALANCE
SHEETS
(in thousands, except share
data)
December 31,
December 31,
2022
2021
ASSETS
Current assets:
Cash and cash equivalents
$
17,665
$
84,641
Short-term investments
73,784
—
Accounts receivable, net
5,798
2,516
Inventory
15,462
8,150
Prepaid expenses and other current
assets
8,397
3,552
Total current assets
121,106
98,859
Property and equipment, net
2,860
2,366
Operating lease right-of-use assets
2,455
2,746
Intangible assets, net
2,292
2,956
Goodwill
8,454
8,454
Other assets
118
118
Total assets
$
137,285
$
115,499
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
4,438
$
3,061
Accrued expenses
5,357
4,758
Accrued compensation
3,616
3,376
Operating lease liabilities
1,114
975
Other current liabilities
2,191
2,482
Total current liabilities
16,716
14,652
Operating lease liabilities, net of
current
1,095
1,730
Term loan, net of current
36,746
26,496
Other liabilities
773
558
Total liabilities
55,330
43,436
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value;
authorized —10,000,000 shares; issued and outstanding - none
—
—
Common stock, $0.001 par value; authorized
— 500,000,000 shares as of December 31, 2022 and 2021; issued —
49,974,281 shares as of December 31, 2022 and 26,383,225 shares as
of December 31, 2021; outstanding — 49,974,281 shares as of
December 31, 2022 and 26,336,536 shares as of December 31, 2021
50
26
Additional paid-in-capital
451,060
384,132
Accumulated other comprehensive loss
(61
)
—
Accumulated deficit
(369,094
)
(312,044
)
81,955
72,114
Less: Treasury stock
—
(51
)
Total stockholders’ equity
81,955
72,063
Total liabilities and stockholders’
equity
$
137,285
$
115,499
SONENDO, INC.
CONSOLIDATED STATEMENTS
OF
OPERATIONS AND COMPREHENSIVE
LOSS
(In thousands, except share
and per share data)
Three Months Ended December
31,
Year Ended December
31,
2022
2021
2022
2021
(Unaudited)
Product revenue
$
9,840
$
7,645
$
33,280
$
25,811
Software revenue
2,390
2,246
8,376
7,386
Total revenue
12,230
9,891
41,656
33,197
Cost of sales
8,900
7,439
31,176
24,861
Gross profit
3,330
2,452
10,480
8,336
Operating expenses:
Selling, general and administrative
14,513
11,513
51,906
33,913
Research and development
3,580
4,258
16,776
18,568
Change in fair value of contingent
earnout
—
249
—
261
Total operating expenses
18,093
16,020
68,682
52,742
Loss from operations
(14,763
)
(13,568
)
(58,202
)
(44,406
)
Other income (expense), net:
Interest and financing cost, net
(469
)
(990
)
(3,228
)
(4,214
)
Change in fair value of warrant
liabilities
—
247
—
71
Change in fair value of forward
obligation
—
602
—
52
Employee retention credit
4,382
—
4,382
—
Loss before income tax expense
(10,850
)
(13,709
)
(57,048
)
(48,497
)
Income tax expense
(2
)
(2
)
(2
)
(2
)
Net loss
$
(10,852
)
$
(13,711
)
$
(57,050
)
$
(48,499
)
Other comprehensive loss (net of tax):
Unrealized loss on marketable
securities
(12
)
—
(61
)
—
Net comprehensive loss
$
(10,864
)
$
(13,711
)
$
(57,111
)
$
(48,499
)
Net loss per share attributable to common
stock – basic and diluted
$
(0.12
)
$
(0.72
)
$
(1.27
)
$
(8.52
)
Weighted-average shares outstanding –
basic and diluted
93,138,031
18,976,197
44,932,952
5,694,594
SONENDO, INC.
RECONCILIATION OF GAAP TO
NON-GAAP
LOSS FROM OPERATIONS
(In thousands)
Three Months Ended December
31,
Year Ended December
31,
2022
2021
2022
2021
GAAP loss from operations
$
14,763
$
13,568
$
58,202
$
44,406
Adjustments:
Revaluation of contingent
consideration
—
(249
)
—
(261
)
Stock based compensation:
Included in cost of sales
(198
)
(73
)
(562
)
(230
)
Included in selling, general and
administrative
(1,909
)
(665
)
(5,729
)
(1,574
)
Included in research and development
(304
)
(186
)
(1,191
)
(568
)
Depreciation and amortization
Included in cost of sales
(202
)
(166
)
(709
)
(630
)
Included in selling, general and
administrative
(242
)
(270
)
(855
)
(1,080
)
Included in research and development
(30
)
(69
)
(152
)
(302
)
Non-GAAP loss from operations
$
11,878
$
11,890
$
49,004
$
39,761
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230308005749/en/
Investor Contact: Gilmartin Group Greg Chodaczek
IR@Sonendo.com
Sonendo (NYSE:SONX)
Historical Stock Chart
From Aug 2024 to Sep 2024
Sonendo (NYSE:SONX)
Historical Stock Chart
From Sep 2023 to Sep 2024