
Sonendo Pre-Releases In-Line Preliminary Financial Results for Q3 2023; However, Guidance Implies Improving 4Q Trend
Sonendo, Inc. (NYSE: SONX), a player in the dental technology sector who markets the GentleWave® System for root canal cleanings, has unveiled unaudited preliminary financial results for the third quarter of 2023. The company noted encountering anticipated seasonality and broader macroeconomic hurdles, and is expected to generate revenue of approximately $10.4 million, which is in line with current analyst forecasts. However, 3Q23 revenue represents a decline from the run rate seen during the fiscal year to date.
Sonendo also highlighted its cash position as of September 30, 2023. The company expects to have approximately $55.9 million in cash, cash equivalents, and short-term investments. Cash burn has been a significant concern of investors, and the company started the year with $91.4M in cash on hand. The current cash balance would imply cash usage of $10M in the third quarter.
Commenting on the preliminary results, Bjarne Bergheim, President, and CEO of Sonendo, expressed his satisfaction with the company’s performance. He stated, “We were pleased to close out a solid third quarter despite anticipated seasonality and prevailing macroeconomic challenges, indicating that our business fundamentals remain strong.” Bergheim also highlighted the expansion of the sales pipeline and noted the potential for upcoming new growth strategies, including new commercial initiatives aimed at bolstering the company’s top-line performance. The company recently announced a partnership with two new dental service organizations as well as the launch of its second generation CleanFlow™ Procedure Instrument for use on the GentleWave® System.
Sonendo also reaffirmed its full-year 2023 financial guidance, maintaining expectations of revenue ranging between $44.0 million and $46.0 million. This implies fourth quarter revenues of $11.9 to $13.9M implying a sequential step up relative to the third quarter.