Sonendo, Inc.

Total revenue from continuing operations in Q2 2024 was $8.3 million, compared with $8.8 million in Q2 2023. Console revenue was $2.4 million versus $2.2 million a year ago, PI revenue was $4.7 million versus $5.6 million, and other product-related revenue was $1.2 million versus $1.0 million. GAAP gross margin was 37.5%, compared with 28.4% in Q1 2024 and negative 5.5% in Q2 2023; adjusted gross margin was 40.7%, versus 34.8% in Q1 2024 and 28.7% in Q2 2023. Operating expenses were $9.8 million, down from $16.9 million a year ago; GAAP operating loss was $6.7 million versus $17.4 million; adjusted EBITDA loss was $5.7 million versus $12 million; and net loss from continuing operations was $7.4 million versus $18.1 million. Cash, cash equivalents, and short-term investments were $24.2 million as of June 30, 2024, and term loan principal payments outstanding were $20.5 million. Guidance: full-year 2024 revenue is now expected to be $31 million-$32 million, full-year adjusted EBITDA loss is expected to be $25 million-$26 million, and adjusted gross margin is expected to be 40%-41% in the second half of 2024.

Bjarne Bergheim framed the quarter as evidence that Sonendo’s strategic reset is working, emphasizing better commercial execution, gross margin expansion, and cash conservation. He highlighted the company’s shift toward reengaging core endodontists, improving G4 reliability, and aligning the sales force around utilization rather than just instrument shipments. His tone was upbeat but measured: he said the company is early in the reset, but he is confident it can return to double-digit revenue growth in 2025 and build toward market leadership.

John Bostjancic walked through the quarter’s financial improvement, pointing to revenue of $8.3 million, adjusted gross margin of 40.7%, operating expenses of $9.8 million, and adjusted EBITDA loss of $5.7 million. He noted that operating expenses were down $7.1 million year over year, helped by lower compensation, recruiting, and marketing spending, and said free cash flow burn improved by $3 million to negative $6.7 million. He also confirmed cash and short-term investments of $24.2 million at quarter-end and said the company is still actively exploring financing options to strengthen the balance sheet.

Analysts focused on why gross margin guidance for 2025 was not raised after the strong Q2 print, and management said it was still too early to update the longer-term outlook even though there is a clear path to 60%+ margins over time. They also asked about the revenue level needed for cash flow break-even; management declined to give a new target, saying the immediate goal is to prove the reset can deliver more with less. On PI sales, management said the lower shipments were mostly volume-related and that utilization appears to be stabilizing, with July showing sales and utilization essentially in line.