Sonendo Inc (SONX) 2023 Q3 法說會逐字稿

Hello and welcome to Sonendo's third quarter earnings conference call at this time.(Operator Instructions) As a reminder at this call has been recorded for replay purposes. I would now like to turn a call over to Louisa Smith from Gilmartin Group for a few introductory comments.

您好，歡迎此時參加 Sonendo 第三季度收益電話會議。（操作員說明）作為提醒，本次電話會議已錄音以供重播之用。我現在想給吉爾馬丁集團的路易莎史密斯打電話，徵求一些介紹性意見。

Thanks operator. Good afternoon and thank you for participating in today's call. Joining me from Sonendo our Bjarne Bergheim, President and CEO, and Michael Watts, CFO.

感謝運營商。下午好，感謝您參加今天的電話會議。 Sonendo 的總裁兼執行長 Bjarne Bergheim 和財務長 Michael Watts 與我一起。

Earlier today, Sonendo released financial results for the quarter ended September 30, 2023. A copy of the press release is available on the company's website.

今天早些時候，Soendo 發布了截至 2023 年 9 月 30 日的季度財務業績。新聞稿的副本可在該公司網站上取得。

Before we begin, I'd like to remind you that management will make statements during this call that include forward-looking statements within the meaning of federal securities laws, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

在我們開始之前，我想提醒您，管理層將在本次電話會議期間發表聲明，其中包括聯邦證券法含義內的前瞻性聲明，這些聲明是根據美國《私人證券訴訟改革法案》的安全港條款制定的。1995 年。

Any statements made on this call that relate to expectations or predictions of future events. Results or performance are forward-looking statements. All forward-looking statements, including those relating to our operating trends and future financial performance, the impact of COVID-19 on our business expense management, expectations for hiring, growth in our organization, market opportunity, revenue guidance, commercial expansion and product pipeline development are based on our current estimates and various assumptions.

本次電話會議中發表的與未來事件的預期或預測相關的任何聲明。結果或績效屬於前瞻性陳述。所有前瞻性陳述，包括與我們的營運趨勢和未來財務績效、COVID-19 對我們業務費用管理的影響、招聘預期、我們組織的成長、市場機會、收入指導、商業擴張和產品管道相關的陳述發展基於我們目前的估計和各種假設。

These statements involve material risks and uncertainties that could cause actual results or events to materially differ, from those implied by these forward-looking statements. Accordingly, you should not place undue reliance on these statements.

這些陳述涉及重大風險和不確定性，可能導致實際結果或事件與這些前瞻性陳述所暗示的結果或事件有重大差異。因此，您不應過度依賴這些陳述。

For a list and descriptions of the risks and uncertainties associated with our business, please refer to the Risk Factors section of our most recent annual report on Form 10-K filed, March 8, 2023, the Securities and Exchange Commission and available on EDGAR and in other, public reports filed periodically with the SEC.

有關與我們業務相關的風險和不確定性的清單和描述，請參閱我們於 2023 年 3 月 8 日向證券交易委員會提交的最新 10-K 表格年度報告中的風險因素部分，該報告可在 EDGAR 和另一方面，定期向美國證券交易委員會提交公開報告。

This conference call contains time-sensitive information and is accurate only as of the live broadcast on November 8, 2023. Sonendo disclaims any intention or obligation, except as required by law to update, or revise, any financial projections or forward-looking statements, whether because of new information, future events or otherwise.

本次電話會議包含時間敏感信息，僅截至 2023 年 11 月 8 日直播時準確。Soendo 不承擔任何意圖或義務，除非法律要求更新或修改任何財務預測或前瞻性陳述，無論是因為新信息、未來事件還是其他原因。

And with that, I will now turn the call over to Bjarne.

現在，我將把電話轉給 Bjarne。

Thanks, Louisa. Good afternoon, everyone, and thank you for joining us today for this call.

謝謝，路易莎。大家下午好，感謝您今天參加我們的電話會議。

I will start with some commentary about third quarter performance, business highlights and forward-looking strategy before turning the call over to Mike to provide additional detail regarding financial results. We will finish with Q&A.

我將首先對第三季業績、業務亮點和前瞻性策略進行一些評論，然後將電話轉給麥克，以提供有關財務業績的更多詳細資訊。我們將以問答結束。

Third quarter saw steady capital placements and revenues in-line that our initial estimates totaling $10.4 million and representing growth of 6% year over year. Procedure instruments revenue grew 7% year over year to $5.1 million in the third quarter.

第三季資本投放和收入穩定，符合我們最初估計的總計 1,040 萬美元，年增 6%。第三季手術器械營收年增 7% 至 510 萬美元。

Console revenue growth was in line with the prior year totaling $2.1 million for the third quarter of 2023. As we have seen in prior years, our annual sales [cycles] for 2023, is shaping up to be reflective of the seasonality. We typically encounter.

2023 年第三季遊戲機收入成長與前一年一致，總計 210 萬美元。正如我們在前幾年所看到的，我們 2023 年的年度銷售[週期]正在形成反映季節性的變化。我們通常會遇到。

The first and third quarters are generally lighter in console, placements than Q2 and Q4 attributable to buying patterns, common in med tech capital equipment. The third quarter of 2023 was no different. We saw lingering macroeconomic pressures in addition to the typical effects of extended vacation schedules and summer slowdowns.

第一季和第三季的遊戲機投放量普遍低於第二季和第四季度，這歸因於購買模式，這在醫療技術資本設備中很常見。 2023 年第三季也不例外。除了延長假期和夏季經濟放緩的典型影響外，我們還看到了揮之不去的宏觀經濟壓力。

However, unlike previous years, we experienced a slowing of utilization and consumable sales in the lighter part of the quarter. Consumable sales often rebound from the summer seasonality, but this September proved to be lighter in terms of volumes.

然而，與往年不同的是，我們在本季較淡的時期經歷了利用率和消耗品銷售的放緩。消費品銷售通常會從夏季季節性反彈，但今年 9 月的銷售量卻減少。

As we have visibility to procedures at the practice level, we believe the decline was experienced broadly across many of our endodontics customers, not just a reduction in general procedures. Many of our doctors reported a decline in patient numbers as was seen in other areas of the dental market.

由於我們對實踐層面的程序有清晰的了解，我們相信我們的許多牙髓學客戶普遍經歷了這種下降，而不僅僅是一般程序的減少。我們的許多醫生報告患者數量下降，就像牙科市場其他領域的情況一樣。

As we move into Q4, we're seeing procedures stabilize from the Q3 exit, but we will continue to monitor demand while the majority of endodontic procedures are non-elective. There remains a certain number that are asymptomatic, which may result in patients delaying treatment and ultimately a shift in patient volumes in relation to console placement trends we continue to see lightning sales cycles and therefore have implemented new programs to counter these effects that I'll expand upon later.

隨著進入第四季度，我們看到手術從第三季度的退出開始趨於穩定，但我們將繼續監控需求，而大多數牙髓手術都是非選擇性的。仍然有一定數量的無症狀患者，這可能會導致患者延遲治療，並最終導致患者數量相對於控制台放置趨勢的變化，我們繼續看到閃電銷售週期，因此已經實施了新的計劃來應對這些影響，我將稍後再展開。

Despite these dynamics, we were pleased with general solid sales figures and remain optimistic about continued adoption of the general procedure. Going forward, we're committed to three fundamental pillars to drive tremendous success. Simply stated, those are one growing top-line revenue, two improving margin profiles, and three prioritizing cash preservation.

儘管有這些動態，我們對整體穩健的銷售數據感到滿意，並對繼續採用一般程序保持樂觀。展望未來，我們致力於三個基本支柱來推動巨大成功。簡而言之，一是收入不斷增長，二是利潤狀況改善，三是優先考慮現金保存。

I'd like to spend a moment to detail our initiatives as they relate to each of these three pillars and the internal steps we've taken to ensure we execute against our plans for the remainder of the year and into 2024.

我想花點時間詳細介紹我們的舉措，因為它們與這三個支柱中的每一個相關，以及我們為確保執行今年剩餘時間和 2024 年的計劃而採取的內部步驟。

As for revenue growth, we recently announced expansion into the DSO channel and the signing of partnership agreements with two specialists DSO groups. DSOs represents an important segment within the industry, and these partnership agreements will greatly expand access to the general procedure in endodontic offices nationwide.

至於營收成長，我們最近宣布擴展到 DSO 管道，並與兩個專業 DSO 集團簽署合作夥伴協議。 DSO 代表了該行業的一個重要部分，這些合作協議將極大地擴大全國牙髓病診所的一般程序的使用範圍。

For example, these two agreements now enable us to sell into nearly 200 new target accounts outside of the DSO strategy. We've begun a limited trial or evaluation program for practitioners to fully experience the generate technology in their offices at no initial upfront cost.

例如，這兩項協議現在使我們能夠向 DSO 策略之外的近 200 個新目標帳戶進行銷售。我們已經開始了一項有限的試驗或評估計劃，讓從業者可以在他們的辦公室充分體驗生成技術，無需初始預付費用。

This allows doctors and their staff to realize first and the clinical practice and patient benefits for the GentleWave system before committing to a purchase. Over still in the early stages of this initiative, we're noting significant interest and positive impact on moving customers through the funnel more rapidly.

這使得醫生及其員工在決定購買之前首先了解 GentleWave 系統的臨床實踐和患者利益。仍處於該計劃的早期階段，我們注意到對更快地推動客戶通過管道的巨大興趣和積極影響。

We believe the continuance of these trial periods will build upon momentum in our sales pipeline and serve as important catalysts to shorten the selling cycle, on a go forward basis.

我們相信，這些試用期的持續將增強我們銷售管道的勢頭，並成為縮短銷售週期的重要催化劑。

Turning to utilization and consumable revenue, with our recent announcements regarding CleanFlow clearance for interior procedures and important, improvements with our Gen 2 version, we believe the improved clinical workflow and enhances the already significant benefits of the [GentleWave] procedure.

談到利用率和耗材收入，隨著我們最近宣布有關內部程序的 CleanFlow 許可以及我們的 Gen 2 版本的重要改進，我們相信改進的臨床工作流程並增強了 [GentleWave] 程序已經顯著的優勢。

With one procedure instruments. We have simplified our training programs to ensure customer success from the start with regards to margin improvement. We continue to focus on two drivers. First, accelerating our path to full conversion to the CleanFlow procedure instruments, which we anticipate being essentially complete as we enter 2024.

具有一台程序儀器。我們簡化了培訓計劃，以確保客戶從一開始就在提高利潤方面取得成功。我們繼續關注兩個驅動因素。首先，加速我們全面轉換為 CleanFlow 手術儀器的進程，我們預計到 2024 年將基本完成。

Second, we completed the transition to in-house G4 assembly. They have now manufactured over 100 consoles in our facilities, enabling us to leverage our existing capabilities as we scale our business combined. These initiatives provide us much more control and future cost reductions, including gaining economies of scale, simplifying the product portfolio and achieving supply chain consolidation, all of which ultimately results in higher contribution margins.

其次，我們完成了向內部 G4 組裝的過渡。他們現在已在我們的工廠生產了 100 多台控制台，使我們能夠在擴展業務時充分利用現有能力。這些措施為我們提供了更多的控制力和未來的成本降低，包括獲得規模經濟、簡化產品組合和實現供應鏈整合，所有這些最終都會帶來更高的邊際貢獻。

Moving to cash preservation, some lender remains committed to responsible and measured spending to retain a healthy balance sheet. In the third quarter, we were able to reduce quarterly operating cash burn by nearly 30% sequentially from Q2 and 35% year over year.

在現金保存方面，一些貸方仍然致力於負責任和有節制的支出，以維持健康的資產負債表。第三季度，我們的季度營運現金消耗較上季減少了近 30%，年比減少了 35%。

We will continue to make necessary adjustments to right-size the business without compromising long-term growth opportunities. Earlier this week, we completed a reduction in force that, combined with the reductions announced earlier in the year, will conserve approximately $6 million to $8 million in the next 12 months and allow the company to leverage operational efficiencies in a more meaningful way.

我們將繼續進行必要的調整，以在不損害長期成長機會的情況下調整業務規模。本週早些時候，我們完成了裁員，加上今年稍早宣布的裁員，將在未來12 個月內節省約600 萬至800 萬美元，並使公司能夠以更有意義的方式提高營運效率。

While these decisions are never easy or taken lightly, we believe they are appropriate in this environment. Our customers will not be impacted by any of these changes.

雖然這些決定絕非易事或輕率做出，但我們相信它們在這種環境下是適當的。我們的客戶不會受到任何這些變化的影響。

Lastly, we're thrilled to announce the submission of our 510-K application to the FDA for the use of the GentleWave system for cavity indications. A future application beyond our current market of root canal therapy and one that will significantly increase our total addressable market.

最後，我們很高興地宣布我們已向 FDA 提交了使用 GentleWave 系統治療蛀牙適應症的 510-K 申請。未來的應用超越了我們目前的根管治療市場，並將顯著增加我們的總潛在市場。

This is a significant step forward in solving tooth decay in millions of patients worldwide. At the same time, we don't want to get ahead of ourselves in terms of quantifying this opportunity or even the time line in which we might see the revenue pull through, with respect to the application of our technology for cavity indications.

這是解決全球數百萬患者蛀牙問題的重要一步。同時，我們不想在量化這個機會甚至我們可能看到收入成長的時間線方面超前，就我們的技術在空洞指示中的應用而言。

Needless to say, we remain incredibly optimistic about our long-term growth opportunities and a sustainable platform we're building to capitalize on the potential that exists within the endodontic and broader dental market.

不用說，我們對我們的長期成長機會和我們正在建立的永續平台仍然非常樂觀，以利用牙髓和更廣泛的牙科市場中存在的潛力。

I will now turn the call over to Michael Watts, Sonendo's, Chief Financial Officer and then return for some closing comments after the question-and-answer session. Mike?

我現在將把電話轉給 Sonendo 的財務長 Michael Watts，然後在問答環節結束後再回來進行一些總結評論。麥克風？

Thanks Bjarne.

謝謝比亞恩。

As previously stated, Sonendo total revenue for the third quarter 2023 was $10.4 million compared to $9.8 million for the third quarter of 2022, an increase of 6%. Q3 product segment growth was 5% versus the prior year, driven by PI revenue increase. PI revenue was $5.1 million compared to $4.8 million in the third quarter of 2022, an increase of approximately 7%.

如前所述，Soendo 2023 年第三季的總營收為 1,040 萬美元，比 2022 年第三季的 980 萬美元成長了 6%。在 PI 營收成長的推動下，第三季產品細分市場較上年成長 5%。 PI 營收為 510 萬美元，較 2022 年第三季的 480 萬美元成長約 7%。

PI revenue growth was driven primarily by an increase in procedure instrument pricing of approximately 11%, offset by decline in unit PI sold of approximately 4% for reasons beyond previously addressed, total PI sold in the quarter was approximately $69,000. In the third quarter, January console revenue was $2.1 million in line when compared with $2.1 million in the third quarter of 2022.

PI 收入成長主要是由手術儀器定價約11% 的成長推動的，但由於先前提到的原因導致PI 銷量下降約4%，本季PI 銷售總額約為69,000 美元，這抵消了銷量下降約4%的影響。第三季度，1 月份遊戲機收入為 210 萬美元，而 2022 年第三季為 210 萬美元。

The average selling price for the GentleWave console was just under $60,000 in the third quarter of 2023. We placed 37 consoles in Q3 with one Gen 3, trade-in resulting in a net change of installed base at 36. Our installed base as of September 30, 2023, was 1,076.

2023 年第三季度，GentleWave 控制台的平均售價略低於60,000 美元。我們在第三季度放置了37 台控制台，其中一台是Gen 3，以舊換新導致安裝基數淨變化為36 台。截至9月份，我們的安裝基數2023 年 12 月 30 日，為 1,076。

Total other product related revenue was $900,000 in the quarter. Total software revenue for the third quarter was $2.2 million compared to $2.1 million in the third quarter of 2022, an increase of 9% software growth continues to be driven by an increase in revenue relating to DSOs as well as recurring revenue increases to existing customers.

該季度其他產品相關收入總額為 900,000 美元。第三季的軟體總收入為 220 萬美元，而 2022 年第三季為 210 萬美元，軟體成長 9% 的成長繼續受到 DSO 相關收入的成長以及現有客戶的經常性收入的成長推動。

Before moving to margin and operating expenses, I would like to explain an impairment charge taken in the third quarter. The recent decline in our market capitalization triggered us to perform an interim long-lived assets and goodwill impairment test.

在討論利潤率和營運費用之前，我想先解釋一下第三季的減損費​​用。最近市值的下降促使我們進行了中期長期資產和商譽減損測試。

As a result we recorded a non-cash impairment charge of $1 million related to the intangible asset and $2.3 million related to fixed assets of our product segment of these impairment charges $1.3 million is recorded in cost of sales and the remainder in operating expenses.

因此，我們記錄了與無形資產相關的100 萬美元非現金減損費用和與我們產品部門的固定資產相關的230 萬美元非現金減損費用，其中130 萬美元記錄在銷售成本中，其餘記錄在營運費用中。

Now again, the impairment charge is a non-cash item and that the impairment charge is different from the inventory charges that were reported in the second quarter of 2023. There was no impairment charge in the software segment.

再說一遍，減損費用是非現金項目，減損費用與 2023 年第二季報告的庫存費用不同。軟體部門沒有減損費用。

Gross margin for the third quarter of 2023 was 24%. Excluding the Q3 impairment charge, gross margin for the third quarter of 2023 would have been 36%, which is a significant improvement from 24% in the same period of the prior year and reflects our commitment to improve profitability. We continue to show improvement in CleanFlow adoption at approximately 70% for the quarter and in-house assembly of the G4 console and other operating efficiencies providing sustained margin improvements.

2023年第三季毛利率為24%。剔除第三季的減損費​​用，2023年第三季的毛利率將為36%，比去年同期的24%有顯著改善，反映了我們對提高獲利能力的承諾。我們繼續表明，本季 CleanFlow 採用率提高了約 70%，G4 控制台的內部組裝以及其他營運效率也帶來了持續的利潤率提高。

Total operating expenses in the third quarter of 2023 were $18.5 million compared to $16.9 million in the same period of the prior year. Increases were driven primarily by a $2.1 million impairment charge mentioned above higher general and administrative costs within stock-based compensation and legal expenses and higher sales and marketing expenses related to increased revenues, offset partially by lower R&D spending.

2023 年第三季的總營運費用為 1,850 萬美元，而去年同期為 1,690 萬美元。成長的主要原因是上述 210 萬美元的減損費用，股票薪酬和法律費用中的一般和行政成本增加，以及與收入增加相關的銷售和行銷費用增加，但部分被研發支出減少所抵銷。

Loss from operations was $16.1 million in the third quarter of 2023 compared to $14.6 million in the third quarter of 2022. Net loss was $17 million for the third quarter of 2023 compared to $15.5 million in the third quarter of 2022. Our cash and cash equivalents and short-term investments as of September 30, 2023, were approximately $55.9 million, while our gross term loan remained at $40 million.

2023 年第三季的營運虧損為1,610 萬美元，而2022 年第三季為1,460 萬美元。2023 年第三季的淨虧損為1,700 萬美元，而2022 年第三季的淨虧損為1,550 萬美元。我們的現金和現金等價物截至 2023 年 9 月 30 日，我們的短期投資約為 5590 萬美元，而我們的定期貸款總額仍為 4000 萬美元。

As for our 2023 financial guidance, as we move to close out 2023, we are revising our expectation of a full year 2023, net revenue to be approximately $44 million. This is reflective of the lower end of our previous guidance and considers recent macro trends and expectations regarding primarily lower placements of capital equipment and related consumable revenue commensurate with the industry at large. At this point, I'd like to open up the call for questions.

至於我們的 2023 年財務指引，隨著 2023 年即將結束，我們正在修改 2023 年全年淨收入約 4,400 萬美元的預期。這反映了我們先前指導的下限，並考慮了最近的宏觀趨勢和預期，主要是資本設備的配置較低以及與整個行業相稱的相關消耗品收入。此刻，我想開放提問。

Thank you. (Operator Instructions) and our first question goes to Jon Block, Stifel. Jon, please go ahead, your line is open.

謝謝。 （操作員說明）我們的第一個問題是 Jon Block，Stifel。喬恩，請繼續，您的線路已接通。

Great. Hey guys. This is Tom Stephan for Jon. Thanks for taking the questions. I'll start with where you left off. Mike, just on guidance. You reiterated the $44 million to $46 million I think, on the pre-announcement last month, but it has come down slightly now. Mike, you gave some color, but maybe if you guys can just elaborate a bit more on, what over the last month changed a bit? It sounds like maybe it was more capital, but any comments there would be helpful?

偉大的。大家好。這是喬恩的湯姆史蒂芬。感謝您提出問題。我將從你上次停下的地方開始。麥克，只是指導。我認為您在上個月的預公告中重申了 4400 萬至 4600 萬美元，但現在略有下降。麥克，你給了一些顏色，但也許如果你們能詳細說明一下，上個月發生了什麼變化？聽起來可能是更多的資本，但是任何評論都會有幫助嗎？

Yeah. Hey, Tom. So that the guidance that we wanted to place out there has a level of conservatism dialed into it now, given what we know nearly halfway through the quarter. So we had good placement, solid placements in Q3. We've had some good traction on the programs that bought, Jon mentioned earlier in the call. But at this point, we just feel it's appropriate to make sure that we communicate or forecast that the streak in dial inappropriately.

是的。嘿，湯姆。因此，鑑於我們在本季度近一半的情況下所了解的情況，我們想要發布的指導現在已經融入了一定程度的保守主義。所以我們在第三季有很好的排名，穩定的排名。喬恩早些時候在電話會議中提到，我們對購買的項目有一些很好的吸引力。但在這一點上，我們只是覺得有必要確保我們傳達或預測連續出現的情況不恰當。

And at the same time, Tom, I would also just iterate that we're really excited about some of the new programs that we're putting in place. We recognize the macro environment that we are in, and it is imperative to us and comfort on us to find new and different programs to really drive sales in this environment. That's why we're really excited about what the opportunities for this trial can bring and also what the DSO opportunity can bring on top of the other tools that we have in our armamentarium.

同時，湯姆，我也想重申，我們對我們正在實施的一些新計劃感到非常興奮。我們認識到我們所處的宏觀環境，找到新的、不同的計劃來真正推動這種環境下的銷售對我們來說是勢在必行、令人欣慰的。這就是為什麼我們對這次試驗的機會以及 DSO 機會可以在我們的軍備庫中的其他工具之上帶來的東西感到非常興奮。

Got it, that makes sense. And then I wanted to ask about the gross margins, continue to put up some solid numbers there. Mike, any color you could maybe give on kind of the near to intermediate term? You guys obviously have a lot initiatives around efficiencies that I think can drive good margin expansion. But any high-level comments about 2024 and what you think that could look like? Thanks.

明白了，這很有道理。然後我想問毛利率，繼續在那裡提供一些可靠的數字。麥克，您可以為近期到中期的情況提供任何顏色嗎？你們顯然在效率方面採取了很多舉措，我認為這些舉措可以推動利潤率的良好成長。但高層對 2024 年有何評論？您認為 2024 年會是什麼樣子？謝謝。

Yeah. So I think if we just start with Q4 and we'll be a communicated before, was that for the remainder of 2023 would be in the mid-30s and that's pretty much where we came out if you exclude the one-time charge and when we go back to the reasons for that, it's around the CleanFlow conversion that we showed good progress on in Q3 and will continue to show good progress in Q4.

是的。因此，我認為，如果我們從第四季度開始，我們之前會進行溝通，2023 年剩餘時間將在 30 多歲左右，如果排除一次性費用，那麼這幾乎就是我們得出的結論。我們回到原因，這是圍繞CleanFlow 轉換的，我們在第三季度取得了良好的進展，並將在第四季度繼續取得良好的進展。

And with related to that is, as we move out of molar and the APM to nearly 100% CleanFlow, we start the year 2024, and that position. So CleanFlow will be now a leading driver of contribution margin for consumables, of course.

與此相關的是，當我們從摩爾和 APM 轉向接近 100% CleanFlow 時，我們從 2024 年開始，就處於這個位置。因此，CleanFlow 現在當然將成為消耗品邊際貢獻的主要驅動力。

And then when you look at the console production, the G4 in-sourcing that was substantially completed in end of Q2, early Q3, and we're starting to see positive leverage and benefits from that program as well so moving into 2024, we have a single PI around CleanFlow and a single console around G4 system. And we think those are going to be good drivers to move us more, in excess of 40% for 2024, without trying to get into specific guidance there, I think we feel comfortable with those numbers.

然後，當您查看控制台生產時，G4 內購已在第二季度末、第三季度初基本完成，我們也開始看到該計劃的積極影響和效益，因此進入 2024 年，我們有圍繞CleanFlow 的單一PI 和圍繞G4 系統的單一控制台。我們認為這些將是很好的驅動力，讓我們有更多的動力，到 2024 年將超過 40%，無需試圖進入具體指導，我認為我們對這些數字感到滿意。

Makes sense. Thanks.

說得通。謝謝。

Thank you, Tom.

謝謝你，湯姆。

Thank you. And our next question goes to Jason Bednar of Piper Sandle. Jason, please go ahead, your line is open.

謝謝。我們的下一個問題是派珀·桑德爾 (Piper Sandle) 的傑森·貝德納爾 (Jason Bednar)。傑森，請繼續，您的線路已接通。

Hey, good afternoon. Thanks for taking the question, sorry, for any background noise here in an airport. But maybe if I could start building on Tom's question there on the guide and for implied guide for fourth quarter, if this is going to be a bit of a softer than normal fourth quarter on the capital side, than what a lot of us are probably thinking, despite this being traditionally a seasonally stronger quarter for capital to end the year, but can you help us what that means when we think about the exit rate into 24 when capital sales tend to be lighter in the front half versus the back half, definitely in first quarter.

嘿，下午好。感謝您提出問題，抱歉，機場裡有任何背景噪音。但也許我可以開始以湯姆的問題為基礎，在指南和第四季度的隱含指南中，如果資本方面的第四季度比正常的第四季度要軟一些，那麼我們很多人可能會遇到這樣的情況。思考，儘管傳統上這是年底資本季節性強勁的季度，但是當我們考慮 24 月份的退出率時，這意味著什麼，而前半段的資本銷售往往比後半段要輕，肯定是在第一季。

And then relatedly, are the lengthening sales cycles that you mentioned? Are those attributable to both end those and GP's? Or you've seeing a more concentrated in a particular group.

與此相關的是，您提到的銷售週期延長了嗎？這些是否都歸咎於那些人和全科醫生？或者你看到一個更集中於特定群體的人。

Yes. So Jason, maybe I'll start off by saying that Q4 is still going to be our strongest quarter of point one like Mike said, we are dialing a level of conservatism in this because of the environment changing on us. And I think everyone are appreciating not across med tech and across the healthcare spectrum right now.

是的。所以傑森，也許我會先說第四季仍然是我們最強的四分之一，就像麥克所說的那樣，由於我們的環境發生了變化，我們在這方面採取了一定程度的保守主義。我認為現在每個人都在醫療技術和醫療保健領域欣賞。

We are still very, very much believing. Obviously, we're believing in what we're doing here. And I think this programs that we are putting in place, especially around the trial and around the DSO opportunity here, those will really help drive a lot of upsides to the business.

我們仍然非常非常相信。顯然，我們相信我們在這裡所做的事情。我認為我們正在實施的計劃，特別是圍繞試驗和 DSO 機會實施的計劃，將真正有助於為業務帶來許多好處。

So point one, there's some level of conservativism dial into the numbers for Q4, we're going to continue to drive growth as we go into 2024. And that's what we obviously aspire to be. We aspired to be a growth company. And it's incumbent on us to really drive the growth engine in this environment.

因此，第一點，第四季度的數據存在一定程度的保守主義，進入 2024 年我們將繼續推動成長。這顯然是我們所渴望的。我們渴望成為一家成長型公司。在這種環境下，我們有責任真正推動成長引擎。

As pretty regards to the lengthening, sales cycle here, again, that's what, that's one of the things that we're solving for with the trial program. We have a lot of customers very interested in our technology that are in the late-stage funnel. And in this environment, we're looking at a couple of different tools to really drive them to kind of move them into buying this technology. And this is where trials can really help us.

關於延長銷售週期，這也是我們透過試用計畫解決的問題之一。我們有許多處於後期通路的客戶對我們的技術非常感興趣。在這種環境下，我們正在尋找幾種不同的工具來真正推動他們購買這項技術。這就是試驗真正能幫助我們的地方。

And just maybe just commenting briefly on the trial here. This is what we're seeing across here is really a program. It can really help drive and help us sell more consoles and we have already had a lot of examples here where this can be very successful.

也許只是簡單地評論一下這裡的審判。這就是我們在這裡看到的真正的程式。它確實可以幫助推動並幫助我們銷售更多的遊戲機，我們已經有很多這樣的例子，這可以非常成功。

One anecdotal for example, is that we had one doctor trial the console and because he liked it so much. It ended up being a multi-unit sale. Where the doctor didn't just want to standardize all his offices, but he also wanted to standardize office chairs to suit to GentleWave.

例如，有一件軼事是，我們有一位醫生試用了控制台，因為他非常喜歡它。最後變成了多單位銷售。醫生不僅想標準化他所有的辦公室，還想標準化辦公椅以適應 GentleWave。

So that is an example of the tools that we're using in this environment. And I think that we can be very, very effective at really helping us drive sales rep-productivity and really drive this going forward. So with all of this, you're very excited about the opportunities to grow this business. So I again, so this is a -- like we said this a said level of conservativism that we're dialing into the fourth quarter.

這就是我們在此環境中使用的工具的範例。我認為我們可以非常非常有效地真正幫助我們提高銷售代表的生產力並真正推動這一進程向前發展。因此，有了這一切，您對發展這項業務的機會感到非常興奮。所以我再說一遍，就像我們所說的那樣，我們在第四季會採取一定程度的保守主義。

Okay. That's helpful, Bjarne Bergheim, maybe shifting over to the volume point. Those obviously assuming also a little bit later, you mentioned some deferrals that might be taking place in the patient side. You think the volumes that you're seeing are reflective of what's currently occurring in the market? Do have a sense of lower procedure volume that you're seeing are consistent with file-based through canals or our doctors getting maybe more cost sensitive than other margin shifting away from CleanFlow, PI's and over to files just to save some dollars?

好的。這很有幫助，Bjarne Bergheim，也許可以轉移到音量點。那些顯然假設稍後，您提到了患者方面可能會發生的一些延期。您認為您所看到的交易量反映了市場目前的情況嗎？您是否有一種感覺，您所看到的較低的手術量與基於文件的通過運河一致，或者我們的醫生可能比其他利潤從 CleanFlow、PI 轉移到文件只是為了節省一些錢而對成本更加敏感？

Yeah, Jason. So substantially the simple answer is this is, I think, affecting everyone across the endodontic space. This is not just us. So the some of the trends that we're seeing are reflective and that are happening across the entire endodontic space. So maybe that's to give you a little bit more color here.

是的，傑森。我認為，基本上簡單的答案是，這影響牙髓領域的每個人。這不僅僅是我們。因此，我們看到的一些趨勢是反思性的，並且正在整個牙髓領域中發生。所以也許這是為了給你更多的色彩。

So what we're seeing is that some of our doctors are seeing less patients, as patient volumes in Q3. And I would, like we talked about in our prepared remarks, this happened probably more during the last month of the quarter.

因此，我們看到的是，隨著第三季度患者數量的增加，我們的一些醫生接診的患者數量減少了。我想，就像我們在準備好的發言中談到的那樣，這種情況在本季的最後一個月可能發生得更多。

It's not universal across all practices, but we've definitely observed it in some of the practices and we think what's happening here is that those small portion, not a large portion, of a small portion of root canal procedures are elective in nature.

它並不適用於所有實踐，但我們確實在一些實踐中觀察到了這一點，我們認為這裡發生的情況是，根管治療中的一小部分，而不是大部分，本質上是選擇性的。

The majority of them like we've talked about before are non-elective, but some of them are asymptomatic. They are elective in nature and that's what some customers are choosing to delay. And the other small element that we size that we in the low volume group. And as you remember, we have three and we have a couple of different pricing tiers.

正如我們之前討論的，他們中的大多數都是非選擇性的，但其中一些是無症狀的。它們本質上是選擇性的，這就是一些客戶選擇推遲的。我們在低體積組中調整了另一個小元素的大小。正如您所記得的，我們有三個，並且有幾個不同的定價等級。

So in our low volume group, we saw that, which are the ones that saw the highest price increase in the beginning of this year. This is where we saw a slight reduction in our utilization except for that. The dynamics that we're seeing are effectively happening across, at least to our knowledge, it's happening across the entire endodontic industry.

因此，在我們的小批量組中，我們看到了今年年初價格漲幅最高的組別。除此之外，我們的利用率略有下降。我們所看到的動態正在有效地發生，至少據我們所知，它正在整個牙髓產業發生。

So and just add on to that as well. So we know who those low volume customers are, and we have the opportunity now to go back to them and show them the full benefits of GentleWave. So that's our next step here and something that's ongoing and active with our consumable sales team.

因此，也只需添加這一點即可。因此，我們知道那些小批量客戶是誰，現在我們有機會回到他們身邊，向他們展示 GentleWave 的全部優勢。這就是我們的下一步，也是我們的消費品銷售團隊持續積極進行的工作。

Okay, very helpful in it, maybe last one to squeeze in here. I wanted to ask on your debt covenants. I think you have some minimum revenue covenants out there that you need to clear these. Admittedly you're looking a little difficult by the middle part of next year, just given where revenues may be expected to end this year, can you talk about your plans to address these covenants with your lender and they're lending any early discussions and removing or reducing these covenants?

好的，非常有幫助，也許是最後一個擠在這裡。我想問一下你的債務契約。我認為你有一些最低收入契約，你需要清除這些契約。誠然，到明年中期，你看起來有點困難，考慮到今年的收入可能會結束，你能談談你與貸方解決這些契約的計劃嗎？他們正在提供任何早期討論和取消或減少這些契約？

So without getting into specifics, we are, of course, discussing and have ongoing discussions with our -- with perceptive who holds our debt and continuing to just evaluate different scenarios as well there. But we've always had a good relationship with them, we expect that to continue moving forward.

因此，在不討論具體細節的情況下，我們當然正在與持有我們債務的有洞察力的人進行討論並持續進行討論，並繼續評估不同的情況。但我們一直與他們保持著良好的關係，我們希望這種關係能繼續向前發展。

Okay. Thanks guys.

好的。多謝你們。

Thank you.

謝謝。

Thank you. (Operator Instructions) And our next question goes to Erin Wright of Morgan Stanley. Erin, please go ahead. Your line is open.

謝謝。 （操作員說明）我們的下一個問題是摩根士丹利的艾琳·賴特（Erin Wright）。艾琳，請繼續。您的線路已開通。

Hi, everybody. This is Justin Wang on for Erin. Thank you for the question. Can you provide some more color regarding the reductions in forced in November specifically to what extent does this impact the sales force? And how does this affect the ability to drive top line? Additionally, are there any other areas of cut and I have a follow-up. Thank you.

大家好。我是賈斯汀王 (Justin Wang) 為艾琳 (Erin) 配音。感謝你的提問。您能否提供有關 11 月強制裁員的更多信息，具體說明這對銷售人員的影響有多大？這對推動營收的能力有何影響？另外，是否還有其他需要削減的地方，我有後續跟進。謝謝。

Yeah, Justin, this simple answer is that we don't believe this is not going to impact our ability to grow the top line. It's also not going to impact our customers in any way let me just give you a little bit more color, to kind of put these cuts into perspective --for where we are right now. There are a number of projects around the organization that are complete, they're done. An example of that is development of the G4. That's substantially all done development of the second-generation CleanFlow substantially all done.

是的，賈斯汀，這個簡單的答案是，我們認為這不會影響我們增加收入的能力。它也不會以任何方式影響我們的客戶，讓我給你們多一點色彩，讓我們正確地看待這些削減——了解我們現在所處的位置。該組織周圍有許多項目已經完成，已經完成。 G4 的發展就是一個例子。第二代 CleanFlow 的開發基本上已經完成。

We're also getting much more efficient on different areas around the organization like manufacturing, operations, et cetera. So because of that, because there are some of these areas that are complete, we can now stop and there's something about starting a project, but there is so it's also important to talk about stopping a project.

我們在組織周圍的不同領域（如製造、營運等）也變得更有效率。正因為如此，因為其中一些領域已經完成，我們現在可以停下來，並且有一些關於啟動專案的事情，但是因此談論停止專案也很重要。

Second, the other thing that we've done during this reduction force we have and have an opportunity to reallocate resources around the organization that's another thing that we have done. But ultimately, at the end of the day with all this. This is really all about us doing more with less. That's never easy, but that's something that we need to be all over. And that's something that the or the team and the organization has responded very well to this, and everyone are on board with this, and that's exactly what we're going to do from an execution perspective of going forward.

其次，我們在裁員期間所做的另一件事是，我們有機會在組織周圍重新分配資源，這是我們所做的另一件事。但最終，這一切最終都會結束。這其實就是我們用更少的資源做更多的事情。這絕非易事，但這是我們需要完成的事。團隊和組織對此反應非常好，每個人都參與其中，而這正是我們從未來執行角度要做的事。

But more than emphasize this, we are still absolutely focus on commercial. We aspire to be a growth company, but we're at the same time, we're going to balance growth and cash. But we're also at the same time we're going to manage and we're going to fund key critical initiatives like cavities that we're really excited about that, can really provide an inflection point for us going forward.

但除了強調這一點之外，我們仍然絕對專注於商業。我們渴望成為一家成長型公司，但同時，我們要平衡成長和現金。但同時，我們也將管理並資助像蛀牙這樣的關鍵舉措，我們對此感到非常興奮，這確實可以為我們前進提供一個轉折點。

We've been through a pandemic. We know how to make cuts like this. We've done it before we learned a lot, but I think this is the right step for us at this time and to allow us to be good stewards of cash. And but at the same time to getting back to the core elements of your question. We're going to still continue to grow the company and growing top line, and this will not impact customers in any way.

我們經歷了一場大流行。我們知道如何進行這樣的切割。我們在學到很多東西之前就已經這樣做了，但我認為這對我們來說是目前正確的一步，可以讓我們成為一個好的現金管家。但同時又回到你問題的核心要素。我們仍將繼續發展公司並增加收入，這不會以任何方式影響客戶。

Thanks. That's very helpful. But definitely you've taken a good amount of price during the year. So I was wondering if you can help us understand what's in store for 2024 regarding price and also on that vein, any practitioner pushback on price that we should be aware of? Thank you very much.

謝謝。這非常有幫助。但毫無疑問，這一年你已經花了很多錢。因此，我想知道您是否可以幫助我們了解 2024 年價格方面的情況，以及我們應該注意的從業者對價格的任何抵制？非常感謝。

So Justin, I'll take the first half. It's Mike.

賈斯汀，我會講上半場。是麥克。

So for 2024 guidance. We're not at this time ready to give specifics on 2024. We have, of course, put the pricing tiers in place in February and for the most part people understand our principles behind that. Customers understand the value that we bring to the procedure and overall to their practice and how we can help them achieve our positive results through GentleWave, both clinically and financially.

所以對於 2024 年的指導。我們目前還沒有準備好提供 2024 年的具體細節。當然，我們已經在 2 月制定了定價等級，並且大多數人都了解我們背後的原則。客戶了解我們為手術和整體實踐帶來的價值，以及我們如何幫助他們透過 GentleWave 在臨床和財務方面取得積極成果。

So with that in mind, we think price is a lever that, it's appropriate for us to continue to evaluate.

因此，考慮到這一點，我們認為價格是我們繼續評估的槓桿。

I think the second half of your question just talked about certain customers and Bjarne, mention at a moment ago, just about customers at the highest tier and we're continuing to work with them. We think that those practices out there, that are user utilizing GentleWave as an adjunct to root canal therapy. And we think we can help them incorporate more fully into their practice and realize the full benefits of GentleWave, not only for the patient having lower pain, but also the practitioner having more efficiencies and better clinical workflow.

我認為你問題的後半部分只是談到了某些客戶和 Bjarne，剛才提到，只是關於最高層的客戶，我們將繼續與他們合作。我們認為這些做法是使用者使用 GentleWave 作為根管治療的輔助。我們認為我們可以幫助他們更全面地融入他們的實踐並實現 GentleWave 的全部好處，不僅可以減輕患者的疼痛，還可以提高醫生的效率和更好的臨床工作流程。

So with those two things in mind, it just goes back to the value that we bring overall with the GentleWave to the root canal therapy.

因此，考慮到這兩點，我們就可以回到我們使用 GentleWave 為根管治療帶來的整體價值。

Thank you, appreciate it.

謝謝，很感激。

Thanks, Justin.

謝謝，賈斯汀。

Thank you. (Operator Instructions)

謝謝。 （操作員說明）

Thank you. It appears we have no further questions and I hand back to Bjarne any closing comments.

謝謝。看來我們沒有其他問題了，我將所有結束語交還給 Bjarne。

Thank you, operator. To conclude today's call, we would just like to reiterate our commitment to Sonendo fundamentals and the opportunity ahead of us to drive market adoption and revolutionize dental care. We are incredibly excited about the future of the company look forward to providing additional details at future events. We appreciate everyone's time today, and thank you for your interest and Sonendo, have a great evening.

謝謝你，接線生。在今天的電話會議結束時，我們想重申我們對 Sonendo 基本原則的承諾，以及我們面前推動市場採用和徹底改變牙科護理的機會。我們對公司的未來感到非常興奮，期待在未來的活動中提供更多詳細資訊。我們感謝大家今天抽出時間，感謝大家的關注，祝 Sonendo 祝您有個愉快的夜晚。

Thank you. This now concludes today's call and thank you for joining. You may now disconnect your lines.

謝謝。今天的電話會議到此結束，感謝您的加入。現在您可以斷開線路。