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  • 9 December 2021
    Sonendo Inc. Reports Third Quarter 2021 Financial Results and Issues Full Year 2021 Revenue Guidance

    Sonendo, Inc. (“Sonendo”), a leading dental technology company and developer of the GentleWave® System, today reported financial results for the quarter ended September 30, 2021.

    Recent Highlights

    • Total revenue of $7.9 million for the third quarter of 2021, representing growth of 29% compared to prior year period
    • GentleWave console revenue of $1.8 million for the third quarter 2021, representing growth of 44% compared to prior year period
    • Procedure instrument revenue of $3.7 million for the third quarter 2021, representing growth of 30% compared to prior year period
    • Software revenue of $1.7 million for the third quarter 2021, representing growth of 17% compared to prior year period
    • Completed initial public offering on November 2, raising approximately $84 million in net proceeds
    • Added Carolyn Beaver, Karen McGinnis, Raj Pudipeddi, and Sadie Stern to the Board of Directors
    • Issued 2021 full year total revenue guidance range of $32.0 million to $32.5 million

    “We are very pleased with our quarterly results and continue to make great progress on expanding our commercial organization to make GentleWave the standard of care for root canal therapy,” said Bjarne Bergheim, Chief Executive Officer of Sonendo. “Additionally, we are excited about the completion of our IPO and are grateful for the support of the participating investors. Following the IPO, our focus is to invest and expand our commercial infrastructure to penetrate the endodontist channel to make the GentleWave Procedure the standard of care for root canal therapy.”

    Third Quarter 2021 Financial Results

    Total Revenue was $7.9 million in the third quarter 2021, an increase from $6.1 million in the third quarter 2020. Growth in the quarter was driven primarily by increased utilization among our current install base and increased GentleWave console sales. GentleWave console revenue was $1.8 million in the third quarter 2021, an increase from $1.2 million in the third quarter 2020. Procedure instrument revenue was $3.7 million, compared to $2.8 million in the prior year period. Software revenue was $1.7 million, compared to $1.5 million in the third quarter 2020. As of September 30, GentleWave ending install base was approximately 750 units.

    Gross Margin for third quarter was 26.0% compared to 19.6% in the third quarter of 2020. The increase in gross margin was driven primarily by a reduction in inventory charges relating to excess inventory compared to the third quarter 2020 and improved overhead absorption in 2021.

    Total operating expenses in the third quarter 2021 were $13.1 million, compared with $10.8 million in the prior year period. The increase was primarily driven by increased sales team hiring and higher General and Administrative costs, primarily legal and accounting. This was slightly offset by lower research and development costs.

    Net loss was $12.7 million for the third quarter 2021 compared to $10.6 million in the prior year period.

    Cash and cash equivalents as of September 30, 2021, totaled $13.7 million, while long-term borrowings totaled $30.0 million. The company received approximately $84 million of net proceeds from the initial public offering, which closed on November 2, 2021.

    2021 Financial Guidance

    The fourth quarter is typically Sonendo’s strongest quarter as a large number of endodontists wait to purchase capital equipment to maximize calendar year tax benefits. The Company expects full year 2021 total revenue to be in the range of $32.0 million to $32.5 million.