Sonendo (SONX) 11 May 222022 Q1 Earnings call transcript

Good afternoon and welcome to the Sonendo, Inc. Q1 2022, Earnings Conference Call. My name is Brika (ph), and I'll be today's event specialist. [Operator Instructions]. And with that, I would like to hand over to our host of today's call, Matt Bacso, please go ahead when you're ready.

Operator. Thanks, afternoon. Good for Sonendo, you Michael today's joining call, CFO. And Bjarne participating Bergheim, from are and President me thank in and Watts, CEO, Earlier quarter for financial today XXst, March XXXX. the Sonendo released ended results of website. copy the the available is A on release company's press

filed and I'd based assumptions. of remind can COVID-XX Any material current you begin, those pipeline hiring, revenue impact results, to XXXX. which our future financial contained estimates Securities or those information, made other including with March All market XXrd, Litigation EDGAR, federal statements our product upon associated statements, available implied the on performance, securities risks intention are will actual as or on that Reform statements expectations forward-looking law, the SEC. the for broadcast call XX-K the risk to with new uncertainties reliance the as that by results otherwise. statements with business, trends the harbor for on various pursuant relate in because and forward-looking these projections call of cause expense obligation recent laws, provisions growth and live and May of periodically Bjarne. call on and that public this of include this the Securities management, in senator our statements, a refer Private time-sensitive only Accordingly, commercial accurate undue Exchange on expansion, report development And description now like most safe opportunity, these financial place forward-looking predictions Act statements. of future in risks of within materially contains we management of or Commission by organization, events and revise annual to make relating that, of to and Before information differ or events, reports during on the I not section meaning whether statements. Form forward-looking This the statements should to update of to you expectations future forward-looking our XXth, any events, are turn business, disclaims factors in or and list guidance, to with our to involve is operating XXXX, over our the of XXXX, will except please from are any uncertainties or filed statements Few call our and conference required that performance

Matt. you Hey, everyone, afternoon thank thanks Good and for us. joining

estimates, above call, continued I of GentleWave QX XXXX today's additional Total over in XXXX guidance the will during XX% by provided followed first revenue procedure the of increased a call, For driven QX, quarterly provide detail before the our million call of console Growth was was primarily XXXX growth quarter and sales. earnings $X utilization and increase comments representing XXXX. our will to by results update, and regarding provide for Mike, quarter the who Q&A. updated business opening opening

start quarter, As benefits. tax equipment factors calendar we're a seasonally lowest capital and pleased reminder, Overall, year are first very which various including influenced adjusted following quarter with our by typically the is sales demand, our year. heightened to

XX%. XXXX more provide regarding on XXX growth March guidance. of compared XXst Mike XXst, later full units, will details As on quarterly our results, XXXX, and install representing to XXX was GentleWave's of year approximately approximately additional March base financial ending detail units

I update, address business two device a a had have topics providing across wanted the medical to that broad impact Before scale industry.

endodontist, what quarter volumes materially due in appear this levels. patient impact at Based and or our temporary currently -COVID slowdown the slight volumes a early pre hearing patient see are to on did performance. from anecdotally near did estimates, we while COVID, Omicron, being trending to First in not we're

growth predicated to demand to positive new market sell our canal patient sign is root and users, end consoles heavily the our is [Indiscernible] and market strong, that While to is volumes the for technology. penetrate there's ability a in on offices our durability of

Second procedure costs instruments, and all orders in The first first are the this a to additional economy. quarter March, XXXX. earnings disruption, of materials, to limited cost in been headwinds fourth of last impacting the communicated call on quarter reminder the our chain global has customer were certain in and of raw of supply which XXXX, the incur in chain we fulfilled variability That's the impact us despite supply quarter XXXX. our

considerable While our incrementally this chain has environment supply the period, team dynamic become made more challenging. through operations progress navigating in has

raw variability supply remainder in to same have risk to as to the of revenue mitigate and do material our quarter, we we the to gradually procedure the most expect meet for future procedure positions, which second slightly instruments. is our overall as In we raw utilize recover Although volumes CleanFlow capacity not stock legacy instruments, as sufficient continue quarters, transition targets. suppliers believe materials instances to we safety

to most launch the Phoenix. AAE the full April conference year. this is starting launch we Meeting Annual American turning CleanFlow announcement XXth, as timing important quarterly business commercial AAE, and of and of was announced of largest or The Now, industry the critical updates, in with On Endodontists, Association ahead our CleanFlow. of of

our limited allowed While allow test market tooth customers instrument entire release, procedure in we drive. our call diligently AAE procedure the perform what a showcase been have to a new working an us great a or to and extracted to which was in event we booth through observe market using our

on team not company, have at prospective only patient display positive of delivering This reputation in superior was Sonendo customers. CleanFlow but benefits we full clinical a providing experience. built to existing, as a the outcomes, AAE the a As and reinformed

Specifically, by certain removing the procedure have we improved with CleanFlow, steps. GentleWave

to be the put in instrument open procedure needing tooth to With practitioner only the prepare to place. the now and allow

increased resonated AAE, in of to gives which level. confidence During utilization and more in community, the practice endodontic drive demonstrations with also educational at and at but launch, CleanFlow clinical only CleanFlow's the the our use not us ease simplicity ability to

As a reminder, our new seamlessly technology. us for a is with to allow ship existing buy no procedure so this instruments convert there instrument This works machine will to CleanFlow CleanFlow the new latest customers. and to existing existing customers access need procedure customers, to consoles,

major contribution Another pathway reason that was our margin pathway CleanFlow to of so to about higher gross clear for component CleanFlow improve expansion is why have consumables. we're margin and excited a we future profitability. a our

material which drive we compared for allows From expanded are operation an efficiencies increased and at assembly, believe there procedure Given generation higher to standpoint, previous the fewer easier production sign simpler will manufacturing up instruments, the CleanFlow which to have lowers capacity. components volumes. we costs

suppliers with relationships increasing who to have insured strong demand. developed durability meet have We key

optimize to have continue manufacture to to been focused the our working to and a the rollout from process. strive processes step on highest successful volumes. assembly supply To ensure CleanFlow, higher scaling manufacture packaging We quality final are chain molds we efforts to of for product our every All customers. to at

education new a onboarding can will Additionally, provide ensure our for customers. full market our commercial teams experience world class and release clinical

for to new our customers strategy immediate manufacture current pace. procedure ensure allowing and to overtime, and primarily at sell CleanFlow be train a generation transition them adoption. reminder, continue our will to converting educating we As Conversely, instruments using of the gentlemen them goal their to will customers with current own

in Given an expand of we this GentleWave responsible fact expect as XXX commercial to dynamic approximate installed and to a that the adoption the take may manner. and we we up have use full considerate base, months, CleanFlow XX

growth of XX $X.X Turning a in of bifurcated important to core billion. we million approximately sales of our procedures our strategy, commercial remains driver market as canal performed our annually market an penetrate root America, representing opportunity team North approximately

March of our of June when than size XXXX. more team XXst, we As XXth, sales commercial compared the to doubled

consumable key Over building is will team. believe an the addition and XXXX our team in of this our and part growth year, beyond. be past integral We rep the the execution of

expansion of consumable sales this as the are sales from to our size the now near productivity on to before we hired, increased is effectiveness, our maintain new signs have for fully connection team expanding plan the term reps our Given of sales and capital who execution reps, force In and of capital reps of on focused customers. capital focus of level at further. early the we initiatives, of commercial starting generation our we're bifurcation number with and force, the pipeline equipment and see to consumable selling number

of As the the accounts. a establishment spent capital time rep prior XX% their roughly existing servicing team, reminder, of reps consumable to

Regarding procedure legacy have completed that feedback positive updated to instrument as receive to from protocol, new we compared our accounts customers. training continue trends,

also are utilization, range canal being becoming this is a believe a indicator we treat the these technology, to with but early, not still of as comfortable only endodontists more of While able root cases. broader increased positive

force will drive sales consumable specifically practice customers matures, their consistent average higher, support demand rates reps, believe as they generation patient existing workflow, utilization training for As workflow, the new clinical and doctors. our we and our with

$XX to Perceptive by in Lastly, $XX with the of available which and we XXXX, an agreement September extending amendment provided to June Credit two our XXXX over Holdings, for an credit tranches million Sonendo April, borrowing announced million additional credit respectively. deadlines

support. have $XX the In optionality provides compelling sheet a data our business. our growth cash, needed, support in addition to technology by million to of consisting of we of KOL further summary, strong clinical balance restructuring if this revolutionary backed In

continues and penetrate expanding therapy. GentleWave be for investing to of canal the Root to our focus care the channel infrastructure Our standard endodontist make to commercial

margin full turn efficiency will Additionally, Chief of we will continue to Mike. prioritize launch practice call over commercial Watts, in with Financial that, Officer. clinical to expansion CleanFlow. With I the Michael the Sonendo's gross

First roughly XXXX. fourth First million GentleWave GentleWave was console revenue XXXX, and compared increased of total Thanks Growth the to sales. million of procedure XXXX. Sonendo the in quarter, revenue in instrument quarter of to to increase approximately was flat Bjarne, of XXXX first mentioned, $X.X was of driven compared previously by $X XX%. sales, for X% increase in to the an increased Quarter primarily the of the million million GentleWave $X.X In quarter the were the $X.X compared compared quarter the prior an for sequentially Quarter XX, console quarter, selling while console prices $XX,XXX, period, first as

compared average increase the selling was announcements to of PI year growth primarily period. prior instrument XX,XXX to the increased revenue compared million for first quarter quarter was $X.X growth licenses million of XX%. driven period. first by to to increase sold million to the compared an XXXX, to XXXX, of and XXXX prior by procedure increased the increase million to of of XX% approximately compared $X.X by supply the selling average procedure increase quarter quarter new XX% in of representing offset an quarter XX% chain. revenue mid-single-digit XX%. and relating prices totaled revenue margin the percentage was price, year the absorption margin Procedure The on and software in instruments, was in first The driven services. XXXX. pi gross increase $X.X compared Total Gross Turning overhead $X.X primarily roughly in quarter was of the in was for by primarily first first improved partially driven costs

As disruptions. earlier, potential any are supply Bjarne with closely mitigate chain our monitoring and stated we working vendors to

company. as As in primarily million area, million of expenses, continue from in XXXX $XX.X The to the the was period million opportunity first general by expect we was cost, $XX.X and the a million quarter XXXX. loss $XX.X Total compared expenses of as first in increased accounting of first prior expansion, million Net XXXX operating public in compared for on first personnel-related quarter was associated $XX.X Loss the increase administrative to driven quarter of $XX.X higher and a to of quarter margins commercial into operating primarily QX. XXXX as of the million first operations higher year. pressure were same gross legal result in well XXXX. the $X.X our the compared of to quarter

$XX our million, cash and borrowings cash million. totaled Our while equivalents approximately $XX was XXst, long-term as XXXX, March of

in subject million As and include on business credit expanded which believe our to will we April XXXX Xth, current capital of an growth the access. mentioned, this certain to additional We we milestones in Bjarne have to support yet and to provide resources $XX previously needed beyond. funding our our liquidity

Moving our guidance. to financial

for several a demand tailwinds, full commercial XXXX, As sales forward increased launch we larger in structural the of underlying have positive move force, including GentleWave, and CleanFlow. we

range to annual continue representing we $XX annual XXXX, XX to growth For to revenue between million, expect and between XX%. $XX year-over-year

call we first Given quarter in expect transition chain this back questions. CleanFlow the mentioned said, the into supply increased positive the of At dynamic half with margins quarter our of we sequential XXXX up the That point, of XXXX, gross previously, to the margin and of second as with open XXXX. to I'd volume. line like we gross from expansion expect be adoption contribution for

Thank you.

the We will Instructions]. now question-and-answer [Operator begin session.

first lines today The we from the Jason have Bednar comes Piper Sandler. question of phone from

Your line is now open.

discuss And you sales along cadence the great the results how you Good setup prepared consider now had new feeling year that see of to Congrats lines, revenue instrument to and Bjarne, chain the questions. are to or I out the we hear third with the system how the of on the way here you unfolding. the million. with rest XXXX? everyone. the $XX referenced Hey. you because will supply year too could How is here it you we for than of procedure thanks story us but million afternoon, the taking of could progression year we're those guidance for rest more see tracking a It those be the was of and dynamics the sales for in externally full-year remarks. start and like through as hoping the playing a $XX into you seems PI think plan,

joining our for question. Hey, Jason, and for thank you. and Thanks call thanks the

the sit of first as very we're of feel year. demand we saw we We we at obviously about for with that AAE. see launched obviously at here the significant science strong QX. AAE. quarter CleanFlow And So We've and successfully the happy consoles, today, also good this

packaging. monitor console headwinds see patient the strong our volumes. about are and our chain prepared trends can also here with And in we across little I about remarks, specifically talked But obviously some talked instrument bit before, like temporary procedure these we base. we live We procedure install supply seeing like a

here apply in that total our sales, system level summary despite would top-line So very guidance. because consoles I But reaffirm new the about continue we of and of strong think With to see that something we I to apparent. that's numbers on that, decided that somewhat was million beat here we've number QX. conservatism to so, feel feel to for respect demand million $XX the and $XX good in

in for a and leading I the during what think expect think busy console really we that I but We booth, indicator us. sales leading for just also into activity indicator had for to we also conference AAE, a exciting the great is level, should had strong not QX, here see year.

and supply upward know That's remaining like right some on all here that side maybe out just the in that's to or you constraining maybe been to the guidance. XQ clarify really trying conservative to would've given on or don't that figure sounds of just this end there's willing anything delivering if if I'm it procedure instrument to year fiscal at there upper bias quick out you're chain they the are dynamics now. point

to, is bit of course a probably there's say of associated that instrument thing now both. procedure would chain with we temporary at little we're Like the headwinds supply packaging. looking I right Jason, -- Yeah, the we alluded

what give And on just have me about color we that procedure the the used bit that talking a Let that. we're maybe put plastic kits. little instrument on more single lids of top are we specifically,

way have is though, demand different more the something for In the made transition in to short other the already launch, lower industry. procedure is pouch. a package instrument. that med-tech CleanFlow Good two elegant that this us thing So to of part right a now words, is across step as cost, we

the inventory speeding on we position pouches. have these transition because we're pout of to And these strong supply lids, plastic these of very So shows. up coincidentally, chain not constraints

make stronger will guidance I year. just good when in and we want transition, about to feel again, But still be dot So we here, shape. we for much reaffirm Doug, the overall the

talk the pretty All in out market. in the still But state right. healthy there made by large, demand the one If regarding you has the making pretty color. equipment US. and I activity ago? your in six three here sure what Very there and maybe sat leads sales feedback funnel today months at some encouraging ask dental feedback mix Maybe helpful the you're AAE. Bjarne, out outside to where regarding versus months like of in does could willingness look AAE it's of comments regarding invest some hearing just capital generally the we been more, to new capital there

Sure.

floor came files, you having financial it's And smaller there these is about we was the introduce is think we all concept just We not we when think, large started talked that along discussing and a helps the pipeline to manufacturers which attended question me large let just we're opportunity when the to First, bit. XX this about a strong building give files. and file one have on the see a around because about and Sonendo and it's clean The is how little color I that on AAE, now call file, some we disinfect have manufacturers color the AAE booths conversation rather the I AAE the in ago, we or that level Then had had files really the obviously, about about great leading we not want going just our clean additional, years it and also I file to like indicator have how disinfect. to conversation when give perhaps is at it -- teeth. anymore, activity that on fact pipeline. significantly booths. AAE, visit frame today, come AAE.

disruption, an see industry So going. indicator that's if that's this leading really for that a is where is AAE. for we the right we so Effectively think industry

a I different overall equipment dental industry, into across giving are the comment demand insight number there's companies it's, market. and obviously just of me that Let think the capital on the

I what's for versus to us procedures. elective important non-elective the make between think is distinction

procedures, We canal, get patients that a root in we root are and to believe non-elective need of canal. obviously the when will get space they

obviously So dynamics for and and in you the practice like the a for prop, we've about as revenue market, overall think to at opportunity also be I talked before, think doctors increase when really sources, strong value an external correctly, can the applied those practices. really the obviously have new overall have these revenue look I efficiency GentleWave and we think I really improve will

and in good that all continue taking that develop that we So of funnel developing the and we we're to the feel sales that, about kind summarizing into year.

Very so much. Thanks helpful.

Thank you.

Block Your question John comes from next of Stifel.

line Your is John. open

ramp I about Great. Hey you Tom want on far, for just year-over-year, for the that key the consumables traction Maybe with contribution on talked said kind talked to feel one stepping ramp this to on six Bjarne Thanks still I lead John. or consumable month then clarify Bjarne And driver good your so to small was guys, to want of growth a early results. utilization you've handful, about the about? you confirm the item, questions. start reps do thoughts that. with

the up So on quarter. is year-over-year utilization

Mike. and year. you help the will the utilization with rest for think ask can pi cadence I us Sorry, about one, of we the just how should of

first question. start to then answers Hi with Mike. we'll Tom, the working backwards your it's and I'll the part of go

a the mentioned, talk adoption. that. train reps, of for to have being good from and believe can more start for cadence consumable we the about introduced driving we that they're these customers and reps getting this So what more them, they're also of And we new that new lot their expand now and our when new talked utilization on we customers. And of and consumable is with upon about utilization think attraction we reception to very we that go Bjarne procedure accounts we customers. protocol see further And we training we protocol as back the with training and training are

net work quarter, what the months. expect their able year-over-year. and what then at year-over-year in With as would essentially coming was seeing with as line utilization utilization So accounts over accounts through But step as accounts, consumable are reps the up saw as account adoption respect we we driving well. within sequentially a we these are to existing our to utilization is new also level, per increased essentially macro further utilization was our to

Bjarne. pass I'll back So it to

across the on Maybe that of Thanks I'll -- believe just and here, high-level say but I more a our side, team and I your sales side. teams Yes. consumable seen sales team capital lot the dentistry, that Tom. start have commercial to even that sales thanks give sales also in professional they've on have Mike, we off just saying not for question by some commentary

your of And we So in to reps your obviously we're training we're the our more year. better in expect a to lot But see we accounts QX focus sales now sales last higher, of on this did more point point, spent year. increases We've early the to reps, the second that consumable these we time meaningful capital of half have and starting where earlier signs reps. consumables reps. to question, to time the getting more utilization in and see

believe So still that ramp so talked previously months we're that about. still six we yes, we've that

if know out. that talk And some just a able again, be is I it. just out. to onto Can invisibility here about color That's back but that as chain these a maybe think helpful and your you then helpful exit on think level Got on bit, I XQ to give you some bit think to XXXX. maybe challenges play there just you as you're how to go that, good cadence gross Mike, margins? we we there, color just a flesh if the should about tack very we given sorry confidence on supply of you've compare helpful might

Tom, things packaging going transparency I the be to things is today, that for of the for initial just that comments, instrument here highlight is specifically wanted happening we so year, most by what look we with chain give if like that in And us, supply the we our alluded on we that we solved we different of why on. reason to on will think is the full all this to what good question. And that today. wanted these everything and see obviously we middle believe know side, at

So we just that pouch we about. we the good confidence, talk about conversion talked to when have specifically this

margin it's that, We thing as also talk have good about and lower a confidence Maybe improve elements that some profitability, setting that pathway for that the important because, side, really biggest -- here something to facilitate bit those drive us. And that's be having business and another for margins additional the way, pathway the the help to in margins. the the this for us, is leverage will important little to to also Mike we're going maybe to is margin obviously and CleanFlow how is really the something launch on the just is by give is comments that are very want up to business. to some of the working

to gross to business, meaning we be talked of we that's to overhead driving think there work utilization going faster more obviously continue to customers going some significant convert margins We continue as also on obviously, increase about. We're going opportunities a go over like We're we've contribution forward. driver CleanFlow. absorption, the CleanFlow, So we margin. to our on can selling console, expanding have to the

question earlier back to and well. And this really goes -- so your what as

target. and to margin issue to gross we us that we under because now this our on of a While we track temporary are underlying get have -- see supply see programs some chain, while pressure as we are

some a So point to over you good maybe comments, Mike. hand additional for to that's

instrument. utilization segue. the for procedure seeing We're as CleanFlow to on that I at the No, a we for the we start in was customers us, in existing very When that's we're cost going in announced we'll see volumes we're think instrument. improvements replaces exciting are positive and asking further commercialization CleanFlow our structure ramp molds good AAE, the great also April, and of adoption, anticipating up to and of it, full see great feedback exciting already it momentum and time

sequential those see gross the we'll we improving past. as So margin in stated

and We magnitude, specific XXs volumes about haven't of the that we we both think I low order on through think given way adoption margins, of the work gross gross improve guidance and in percentage something as margin. but a as should everything,

we year volumes expect into the what our to is see of uptake that and begin as XXXX. would we we'll exit higher year then the grow into So XXXX, accelerate

So helps. I hope that really

if can pouch, I squeeze clarification that. And is I sorry, margin to into the want a or conversion just misheard. I to quick question, might've clarify the Is Very just that neutral helpful. --

the question, Good Yeah. Tom, helps actually us that on margin.

it's -- elegant the of plus less So device cost lowers the this takes manufacturing us also of the way and line. and packaging and for it more simply on easier simpler up packaging space it's

Perfect. Thanks.

Thank you.

Thanks, John.

to Rich Sachs, line Thank like you. your of We now now have Nathan is Nathan. Goldman

can one you expanded force conference into like? first had good that selling Hey, - and the in the thanks in the you think Bjarne, console interest event The questions. you now the what And few that translate cycle looks you've do time Can saw placements? what years. like afternoon have, for person sales the quickly a post how system start. maybe to you talk about

Nate. Thanks,

on also where doctors. range about consoles a talked go the like is questions. for there will definitely with of we have a a had When through in we prepared They the our think that like busy But initiation certain boost, be of there your we test AAE, I drive convention are conversations answers be clean number at close a of floor. they tooth. there maybe will remarks

console doctor with then conversation weeks after start will into sales and their and week practice a four incorporated after or be can reps the we that this how AAE Our console the the make event. closer

way significantly increased that is this just way year. our view AAE should lot really but the the our touch of to really us pipeline, And a year. rest I not So and we the think for the this is the of for a pipeline quarter, points for gave build

Okay, great. And maybe a follow-up for Mike.

And XX do to next over are additional needs those cash Could leads that the about you current about credit how maybe mentioned of sufficient liquidity like feel facility. You million of the thinking just you on kind levels the so. year have. for you're liquidity fund business you or talk the

now we capital Yeah. perceptive able were looking all also as sources additional our they other main When continue certainly Thanks on priority well, that to our million. that increase ongoing that, we're our in position $XX continue drive our Nathan. as of the and good then and GentleWave at sales and like drive our we're appreciative options support has all team to and -- right is so businesses but looking a sources growth, invest at looking install we're a secure great very business at continuing in utilization. We're and partner basis, And to base. in been we're

much Thanks very for Great. the questions.

Thank you, Nate.

[Operator on from Please ready. of Stanley. line Thank have ahead you're We question Instructions]. Erin go you. Morgan Wright when another the now

Great. here. Thanks. for the Thanks questions

this month transitions With supply the point, sounds here? still at it some there. see you rollout if did XX expedited that Could CleanFlow of of the be dynamics at you persist all anticipate the chain

I that I going customers. helps with going is CleanFlow. we're up? faster measured taken element think then perhaps come But that terms our to customers for early of that those already onboarded GentleWave continues GentleWave conservative the But we to execute significant of asking them. a third plan, we've are install are to just speed plan be convert that existing overview the obviously, this to XXX a think a customers CleanFlow, to and continue the in launch base on will now to there CleanFlow. Erin. push this give you're in question, a and to you on of all and continue drive reason conversion. that elements the will that customers, going where of are consoles key And and buying consumable to us, is business. are. margins going ultimately Obviously, bit that going of two-year new trained Good We're And to Erin, point, of we to actually we're already us team converting that perhaps on support in convert really to approach high-level little improved why that are and play good we're of there have some our is in And our the ways trained Yes. and part and sales of Yes, we forward have, that a being

here team, our side working really get access in going sales convert going -- to be quicker. we customers we're working our they're can to consumable better margins you're be see going So to on such and hard to that to quicker those

such as conversation It's in got that with and industry more well interesting were I AAE, focus great. here, the seen at of the on the a the how of guess you've have change And competitive Okay, yourself mentioning some on across it, disruptors in and partnerships the have game, this? how the ahead but you of on out flip constituents for opportunities evolved around any And there side Thanks. response well? industry the industry as that, seen there? you are

large companies Yeah. to booths booths, Good conversations have see cleaning fascinating don't conversion how talked changed AAE really about those don't they presence conversations have this and strong anymore at they we to the that those It's and large Yes. large had that because like a file anymore and changed have the question. infection. have

we other introduced endodontics. the against because in a directly competitive existing But and technologies in disinfections there we cleaning talked the terms the still, last endodontics, go across areas, that obviously one, good of you enabling now two that companies re-spend we're talked in about been enabling that good or to have field last us. outcomes success, out and teeth of in for technologies if very are about in other technology and There this take our to we've that Regarding have response, trying Sonendo's new no we're like decades. try superior confident there one look industry entire are are into of

for So from we an that outcome don't see can patients root anything horizon on really canal that something with us obviously and their perspective compete treating provide head-to-head the want procedures.

monitoring. then the GentleWave to continue have, to think But the continue I business, to these technology something opportunity procedures. just convert that value-creation to we And that market efficiencies to around that to GentleWave big GentleWave. platform with on to build So the it's drive to we regards obviously Erin, we'll side, the obviously continue in be partnering the build in that's the here continue think continuously -- and the

less ahead, and see share continue bullish canal very obviously doing than to across market. take this business root within to Canada very X% large We on so the are we today, a opportunity ability United and of procedures therapy States the in we're grow our -- and that within

so you Thank Great. much.

Thanks, Erin.

you. Thank

for to I final Bjarne was As to would that closing remarks. some question it like hand back our

Operator. you, Thank

me close just up. Let

conferences also time spending everyone appreciate Have great meetings. forward many we we and both us go I that you with think individual at day. of Mike to investor future today. and I for a forward, meeting look as

disconnect does That joining. call. now for you your lines. day, lovely have Thank today's conclude you may a Please