Sonendo Inc. Reports Fourth Quarter and Full Year 2023 Financial Results and Issues Full Year 2024 Revenue Guidance
Highlights
-
Total revenue of
$43.9 million for the full year 2023, representing growth of 5% over the full year 2022 -
As of
December 31, 2023 , the installed base was 1,134 units, representing growth of approximately 16% compared toDecember 31, 2022 -
In
March 2024 , finalized divestiture of our TDO practice management software segment, resulting in gross proceeds of approximately$16.0 million -
Restructured our Perceptive term loan including a one-time
$15.0 million principal repayment and initiate monthly principal repayments beginning inMarch 2024 along with modifications to certain other terms including revenue covenants.
“We are pleased to have closed the year with a strong installed base and improved operating leverage despite prevailing macroeconomic headwinds. In the fourth quarter we made significant strides in gross margin improvement and cash burn reduction,” said
Fourth Quarter 2023 Financial Results
Total revenue was
Gross margin for the fourth quarter of 2023 was 33%, compared to 27% for the fourth quarter of 2022. During the fourth quarter of 2023, we recorded a
Total operating expenses for the fourth quarter of 2023 were
Loss from operations was
Net loss was
Cash and cash equivalents and short-term investments as of
Full Year 2023 Financial Results
Total revenue was
Gross margin for the full year 2023 was 24% , compared to 25% for the full year 2022. During 2023, we recorded a
Total operating expenses for 2023 were
Loss from operations was
Net loss was
2024 Financial Guidance
The Company expects the full year 2024 total revenue to be in the range of
Webcast and Conference Call Information
About
For more information about
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 and Sonendo’s 2024 financial guidance. 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
Use of Non-GAAP Financial Measures
Sonendo’ financial results are prepared in accordance with generally accepted accounting principles in
For a reconciliation of our Non-GAAP measures presented herein to GAAP measures, the most directly comparable GAAP financial measure, please see “Reconciliation of GAAP to Non-GAAP Gross Profit and Gross Margin” and “Reconciliation of GAAP to Non-GAAP Loss from Operations” in the financial schedules below.
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CONSOLIDATED BALANCE SHEETS |
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(in thousands, except share data) |
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2023 |
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2022 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
|
$ |
14,009 |
|
|
$ |
17,665 |
|
Short-term investments |
|
|
32,773 |
|
|
|
73,784 |
|
Accounts receivable, net |
|
|
5,081 |
|
|
|
5,798 |
|
Inventory |
|
|
11,074 |
|
|
|
15,462 |
|
Prepaid expenses and other current assets |
|
|
2,334 |
|
|
|
8,397 |
|
Total current assets |
|
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65,271 |
|
|
|
121,106 |
|
Property and equipment, net |
|
|
664 |
|
|
|
2,860 |
|
Operating lease right-of-use assets |
|
|
2,974 |
|
|
|
2,455 |
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Intangible assets, net |
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|
661 |
|
|
|
2,292 |
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|
8,454 |
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|
8,454 |
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Other assets |
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136 |
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|
118 |
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Total assets |
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$ |
78,160 |
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$ |
137,285 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
1,176 |
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$ |
4,438 |
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Accrued expenses |
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3,266 |
|
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|
5,357 |
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Accrued compensation |
|
|
2,758 |
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|
3,616 |
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Operating lease liabilities |
|
|
1,377 |
|
|
|
1,114 |
|
Current portion of term loan |
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|
24,900 |
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|
|
— |
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Other current liabilities |
|
|
1,844 |
|
|
|
2,191 |
|
Total current liabilities |
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35,321 |
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|
16,716 |
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Operating lease liabilities, net of current |
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|
1,423 |
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|
|
1,095 |
|
Term loan, net of current |
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|
12,467 |
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|
|
36,746 |
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Other liabilities |
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|
530 |
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|
773 |
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Total liabilities |
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49,741 |
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55,330 |
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Commitments and contingencies |
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Stockholders’ equity: |
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Preferred stock, |
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— |
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— |
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Common stock, |
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64 |
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|
50 |
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Additional paid-in-capital |
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458,357 |
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|
451,060 |
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Accumulated other comprehensive gain (loss) |
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11 |
|
|
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(61 |
) |
Accumulated deficit |
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(430,013 |
) |
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|
(369,094 |
) |
Total stockholders’ equity |
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|
28,419 |
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|
|
81,955 |
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Total liabilities and stockholders’ equity |
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$ |
78,160 |
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|
$ |
137,285 |
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CONSOLIDATED STATEMENTS OF |
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OPERATIONS AND COMPREHENSIVE LOSS |
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(In thousands, except share and per share data) |
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Three Months Ended |
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Year Ended |
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2023 |
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2022 |
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2023 |
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2022 |
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(Unaudited) |
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Product revenue |
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$ |
9,024 |
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$ |
9,840 |
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$ |
34,628 |
|
|
$ |
33,280 |
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Software revenue |
|
|
2,668 |
|
|
|
2,390 |
|
|
|
9,237 |
|
|
|
8,376 |
|
Total revenue |
|
|
11,692 |
|
|
|
12,230 |
|
|
|
43,865 |
|
|
|
41,656 |
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Cost of sales: |
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Product and software |
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7,617 |
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8,900 |
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|
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31,559 |
|
|
|
31,176 |
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Impairment of long-lived assets |
|
|
243 |
|
|
|
— |
|
|
|
1,584 |
|
|
|
— |
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Total cost of sales |
|
|
7,860 |
|
|
|
8,900 |
|
|
|
33,143 |
|
|
|
31,176 |
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Gross profit |
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|
3,832 |
|
|
|
3,330 |
|
|
|
10,722 |
|
|
|
10,480 |
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Operating expenses: |
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Selling, general and administrative |
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11,163 |
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14,513 |
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54,022 |
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|
51,906 |
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Research and development |
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|
2,514 |
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|
|
3,580 |
|
|
|
12,355 |
|
|
|
16,776 |
|
Impairment of long-lived assets |
|
|
37 |
|
|
|
— |
|
|
|
2,088 |
|
|
|
— |
|
Total operating expenses |
|
|
13,714 |
|
|
|
18,093 |
|
|
|
68,465 |
|
|
|
68,682 |
|
Loss from operations |
|
|
(9,882 |
) |
|
|
(14,763 |
) |
|
|
(57,743 |
) |
|
|
(58,202 |
) |
Other income (expense), net: |
|
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Interest and financing cost, net |
|
|
(994 |
) |
|
|
(469 |
) |
|
|
(3,174 |
) |
|
|
(3,228 |
) |
Employee retention credit |
|
|
— |
|
|
|
4,382 |
|
|
|
— |
|
|
|
4,382 |
|
Loss before income tax expense |
|
|
(10,876 |
) |
|
|
(10,850 |
) |
|
|
(60,917 |
) |
|
|
(57,048 |
) |
Income tax expense |
|
|
(2 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
Net loss |
|
$ |
(10,878 |
) |
|
$ |
(10,852 |
) |
|
$ |
(60,919 |
) |
|
$ |
(57,050 |
) |
Other comprehensive income (loss) (net of tax): |
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Unrealized gain (loss) on marketable securities |
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17 |
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(12 |
) |
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|
72 |
|
|
|
(61 |
) |
Net comprehensive loss |
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$ |
(10,861 |
) |
|
$ |
(10,864 |
) |
|
$ |
(60,847 |
) |
|
$ |
(57,111 |
) |
Net loss per share attributable to common stock – basic and diluted |
|
$ |
(0.12 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.65 |
) |
|
$ |
(1.27 |
) |
Weighted-average shares outstanding – basic and diluted |
|
|
94,536,827 |
|
|
|
93,138,031 |
|
|
|
93,988,749 |
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|
44,932,952 |
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RECONCILIATION OF GAAP TO NON-GAAP |
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GROSS PROFIT AND GROSS MARGIN |
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(in thousands) |
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Three Months Ended |
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Year Ended |
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|
2023 |
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2022 |
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|
2023 |
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|
2022 |
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Gross profit |
|
$ |
3,832 |
|
|
$ |
3,330 |
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|
$ |
10,722 |
|
|
$ |
10,480 |
|
Gross margin |
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|
33 |
% |
|
|
27 |
% |
|
|
24 |
% |
|
|
25 |
% |
|
|
|
|
|
|
|
|
|
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Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
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Impairment of long-lived assets |
|
|
243 |
|
|
|
— |
|
|
|
1,584 |
|
|
|
— |
|
Non-GAAP gross profit |
|
$ |
4,075 |
|
|
$ |
3,330 |
|
|
$ |
12,306 |
|
|
$ |
10,480 |
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Non-GAAP gross margin |
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|
35 |
% |
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27 |
% |
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|
28 |
% |
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|
25 |
% |
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RECONCILIATION OF GAAP TO NON-GAAP |
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LOSS FROM OPERATIONS |
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(In thousands) |
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Three Months Ended |
|
Year Ended |
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|
|
2023 |
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2022 |
|
|
2023 |
|
|
2022 |
|
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GAAP loss from operations |
|
$ |
9,882 |
|
|
$ |
14,763 |
|
|
$ |
57,743 |
|
|
$ |
58,202 |
|
Adjustments: |
|
|
|
|
|
|
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|
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Stock based compensation: |
|
|
|
|
|
|
|
|
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Included in cost of sales |
|
|
(65 |
) |
|
|
(198 |
) |
|
|
(359 |
) |
|
|
(562 |
) |
Included in selling, general and administrative |
|
|
(1,301 |
) |
|
|
(1,909 |
) |
|
|
(6,228 |
) |
|
|
(5,729 |
) |
Included in research and development |
|
|
(125 |
) |
|
|
(304 |
) |
|
|
(689 |
) |
|
|
(1,191 |
) |
Depreciation and amortization |
|
|
|
|
|
|
|
|
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Included in cost of sales |
|
|
(67 |
) |
|
|
(202 |
) |
|
|
(807 |
) |
|
|
(709 |
) |
Included in selling, general and administrative |
|
|
(22 |
) |
|
|
(242 |
) |
|
|
(780 |
) |
|
|
(855 |
) |
Included in research and development |
|
|
(22 |
) |
|
|
(30 |
) |
|
|
(116 |
) |
|
|
(152 |
) |
Impairment of long-lived assets |
|
|
|
|
|
|
|
|
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Included in cost of sales |
|
|
(243 |
) |
|
|
— |
|
|
|
(1,584 |
) |
|
|
— |
|
Included in operating expenses |
|
|
(37 |
) |
|
|
— |
|
|
|
(2,088 |
) |
|
|
— |
|
Non-GAAP loss from operations |
|
$ |
8,000 |
|
|
$ |
11,878 |
|
|
$ |
45,092 |
|
|
$ |
49,004 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240311314845/en/
Investor Contact:
IR@Sonendo.com
Source: