Sonendo Inc (SONX) Reports Modest Revenue Growth Amidst Economic Challenges
Sonendo Inc (NYSE:SONX) sees a 6% revenue increase in Q3 2023, reaching $10.4 million.
Procedure instrument revenue grows by 7%, with a total of 1,076 units installed by quarter-end.
Despite revenue growth, net loss widens to $17.0 million, compared to $15.5 million in Q3 2022.
Company implements workforce reduction and other measures to conserve cash and enhance efficiency.
On November 8, 2023, Sonendo Inc (NYSE:SONX), a pioneer in dental technology, disclosed its financial results for the third quarter ending September 30, 2023. The company reported a 6% increase in total revenue, amounting to $10.4 million, compared to the same period in the previous year. This modest growth comes despite the ongoing macroeconomic headwinds affecting the industry.
Financial Performance Highlights
Sonendo Inc (NYSE:SONX) demonstrated resilience with a 7% increase in procedure instrument revenue, which totaled $5.1 million. The company's installed base expanded to 1,076 units, and the launch of the second-generation CleanFlow Procedure Instrument is expected to further enhance product efficacy and user experience.
However, the company's net loss widened to $17.0 million for the third quarter of 2023, up from $15.5 million in the prior year. This was partly due to impairment charges of long-lived assets totaling $3.4 million. Excluding these charges, the Non-GAAP loss from operations would have been $10.4 million, an improvement from $12.4 million in the third quarter of 2022.
Balance Sheet and Cash Flow
As of September 30, 2023, Sonendo Inc (NYSE:SONX) had cash and cash equivalents, and short-term investments totaling $55.9 million. The company has taken significant steps to reduce its cash burn, which was approximately $10 million in the third quarter, and has implemented a reduction in force to further conserve cash and improve operating efficiency.
Management Commentary
Bjarne Bergheim, President and CEO of Sonendo, commented on the results, stating,
We are pleased with third quarter performance as we continue to confront lingering macroeconomic challenges. Our sales pipeline remains robust and we have integrated several new commercial strategies to combat the impacts of lengthening sales cycles,"
and added,
We remain confident in our business fundamentals and increased adoption of our technology and improvements to the gross margin profile."
Outlook and Investor Relations
Looking ahead, Sonendo Inc (NYSE:SONX) expects total revenue for the full year of 2023 to be approximately $44.0 million. The company also hosted a conference call to discuss the third quarter 2023 financial results and provided a webcast for investors.
For more detailed information on Sonendo Inc (NYSE:SONX)'s financial results, including the reconciliation of GAAP to Non-GAAP measures, investors and interested parties are encouraged to review the full earnings release and financial statements.
With its commitment to innovation and improving dental care through technology, Sonendo Inc (NYSE:SONX) continues to navigate the challenges of the market while focusing on long-term growth and value creation for shareholders.
Explore the complete 8-K earnings release (here) from Sonendo Inc for further details.
This article first appeared on GuruFocus.
