- Earnings call transcript Q3 2022

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Operator

Good afternoon, and welcome to Sonendo's third quarter earnings conference call. At this time, all participants are in listen-only mode.

We will be facilitating a question-and-answer session towards the end of today's call.

As a reminder, this call is being recorded for replay purposes. I would now like to turn the call over to Louisa Smith from Gilmartin Group, for a few introductory comments.

Louisa Smith

operator. Thanks, thank in and call. for you afternoon, today's participating Good

the President are and Sonendo Joining is XX, available for press Sonendo company's of Bergheim, A released ended and copy XXXX. results on today, me from release Earlier Bjarne CEO, the September CFO. Michael financial website. the quarter Watts,

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

Bjarne Bergheim

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

I by to call year, remainder a opening call, provide the provide results update, Q&A. and quarterly for of and will comments business will guidance followed before opening additional the today's regarding For Mike, detail who our the

period, this install that was utilization see to increase to July price equates the procedure XX,XXX pleased performance roughly a in base with rates, across procedures our financing. to Coupled performance, equating continued had QX approximately and the were second the quarter. and was product prior prove our last upon our compared same notable our effective marked sluggish We revenue XXXX representing Xst, might period over for in of of XXXX, Sonendo third in XX consoles, quarter by significant GentleWave to a In growth, growth performance were level, approximately the high a XX% of XX third light with On the announcements, a half year. the the of we quarter especially was quarter, headwinds. year pleased a continued year. be strong quarter, increase of compared XX% in year-over-year. million, We rate anticipation that macroeconomic for strong. Revenue $X.X to XX% last growth revenue consumable third a to based third of the operating sold

to approximately on compared GentleWave's ending XX, September September XXXX. XX, of As XXX base XXX units units, install approximately was

to Overall, during QX the lives. serve quarter, continue mission inflection $XX flexibility as investors. as our a of down build more available as existing achieved we of Earlier This Sonendo a saving on will our the fulfill debt. drew we our that teeth, in seek also which to a believe follow-on for we point closed execute improving quarter, and us will quarter million million financial grant new strategy $XX with These financing we additional to we business. positive milestones was we funds

to internal chain our design. environment, potential like headwinds within their macro response trends full Before see have business. implemented to half further address the stability the The on some experienced in of the the we we design supply to teams year we sector, these and this further first and commercial potential to for In chain, during business packaging challenges, of diving monitor into launch for updates, CleanFlow throughout in allow the new continue changes I'd medtech impact supply QX, including current greater a the disruptions. our eased

margins had came gross less than originally QX However, anticipated. our we in in

During the review. gross partially for compression expand more negative pricing well our provide detail trends impacts by price procedure upset the certain increases during we'll instruments costs July Xst. Mike quarter, will that of later section, generation our effective prior financial in incurred as as that on were became financial for margin we The our upon console.

been we and the of was practices and we year-end our pick than up to we've of previously capital year-end. mixed We This due the both that by medtech the finally, took the fourth our are closely primarily has in extended as we And summer has to we COVID, equipment practitioners and medtech are customers. many was successful anticipated observed pressures and vacations, in in of average end sector, vacations. across year, and forward slowdown communicated But threatening the first trend was observed and summary, at been quarter a a to utilization capital be trends inflationary consistently a and sector, saw prior encouraged strong consoles placements that expect years tracking due to months since expect which, caused QX XXXX should case it this longer summer when the utilization, utilization of placements year. both system buying We to again, we expenditure the to by to procedure for in throughout this observed economy. believe placement looking weakening that paired given compared In translate are during tax a incentives this part also moderate with the seasonal the market, instruments. while to XXXX dental finish still stronger third. And news as the the patients, QX, to a historically of procedure headlines the

about is down GX up battery recent the across interface GX the auditory improve dynamics, for system. cut broad offers. efficiency, introduction And at October endodontic six elevate and to advanced the The to backup. centerpiece of Ultimately, the GentleWave Sonendo’s GX will six enabling energy indicative launch months to thrilled some comes instrument the improved Second time system updates, of system GX practice office, XX, upon launch the has The receiving when user of cues. system our on ability to of great very Key the workflow really of EndoCon, hands Annual Turning is excited of has care, after business just acoustic of release Innovation. system reception and announced next Three, GX already features the multi-operatory Sonendo's the GentleWave and fluid and a connectivity. it GentleWave one, of Endodontic in the is We're patient fluid of we're become efficiency Building office. commitment staff. with exciting. showcased foundation procedure CleanFlow announced the the and April, Two, the spectrum capacity, on On four, doctors, feedback the in increased support procedures. preparation the innovation Conference to what the we're console GentleWave's an several and generation console, received have we the and which endodontics. GentleWave commercial of ability system include, to back

share move one procedure in one a care more of tooth therapy per for system. standard updates platform staff canal providing calls. had become root on GX to to we've future GentleWave has the their for example, an by day that and forward the As GentleWave the forward creating GX significant doctor a converting to decay. hour look saved represents We

As successful the for seeing to introduced adoption CleanFlow, we're trends we it since spring. market the initially in

to ahead for of we're have full CleanFlow, maintaining doctors estimates of XX pace a within launch. conversion months to While we're converting internal

a a CleanFlow converting to procedure margin inflection for As users instruments, business. reminder, the represents point

of scale CleanFlow to anticipate we the benefits fewer of scale. to we and technology, convert margins due improve will ease users new and assembly, components, As

We Arizona, held nationally women to in educational involved was honored Sonendo Summit. addition EndoCon event supporting are were inaugural a and was to in of industry providing two-day is for technology, conference, the industry, recognized the sponsor be hosting October, we Tucson, service, as and significance women how supporting Endodontics the we recognize opportunities highlighting and This Women evidence leadership in In education. to field. the the further growth of proud and in in across opportunities,

with commercial been teams. consumable our our We've of resulting positive capital pleased to the and the bifurcation strategy. impact sales Turning from

we instruments. best already a team see this in maximize management CleanFlow, adjust focused sales and accounts. XX,XXX the has believe The rep time of And of critical device team. sales the size placed the reminder, benefits training for at their force education to In pipeline has opportunities of QX, much will bifurcated a responsibilities. practices. a incorporate previously for as our account the end team’s of delegation emphasize into capital our generation servicing to preparation headwinds remarks. these expanded earlier as team, the procedure the reps technology, the We've existing some newly QX, shift of towards As significantly their the addition XX% strategy, increased sold increased hands-on of team systems, in our for approach practice consumable in begun macro We for my sales had to over in despite lead Clinical outlined this opportunity volumes. our efficiently XX sales been of the consumable of component we spent to XXXX also benefited launch and as practitioners and

perform the on root expand a Additionally, their share these in the end to team this general focuses year. realize who at large as procedures. of dentists include own focus placing further provide situated orders of the canal We a well will the practitioners fourth to quarter team synergies, supporting believe chance is to our capital

We two teams to drive continue will of XXXX. into execution these

Lindberg appointment North July, were as in America. Vice President pleased announce we Additionally, the of to of Sales, Joanne

scared the about an consumer-driven tooth in on With the further has US and invest continued with scale XXX with XX% in of Joanne root or position commercial scale resources sales the are had undergoing to root a establish is and the our Sonendo's anxious, to excited significant therapy that within XXst consumer focus canal century. therapy into execution. compelling organization, and quarter, and procedure, root process operational third sales third healing. continues the and to fast leadership experience data, increasing innovation. significant in survey market, impact technology, and bring leads that of have need an Sonendo the the procedure a sales structure promotes hire strategy She This leadership. we're terrified that will canal more We believe sales team In made and expansion minimally canal future. we than We Sonendo's acceptance, treatment. Canada. quarter, as pain-free, of our representative shows brings As GentleWave invasive already and of and oversees XX% also the endodontic infrastructure committed Joanne’s nervous, concluded conducted a necessary were respondents getting which a individuals, redefine encouraging over about she and revolutionary preserves continued

With almost to share we're unique spring doctors Financial well turn $X a the that, expanding With allow Watts, improving to support we in billion This canal the is root proposition Chief Mike? the I'll forward Sonendo’s CleanFlow looking of over the capture next-generation the positioned the launch experience. and the our and Michael recent Officer. growth. of Canada, of next call practices patient to GentleWave their in us the US know our the value and technology phase in significant and market will to console, release of GX

Michael Watts

Thanks, Bjarne.

GentleWave revenue by was $X.X were revenue for sales, quarter total console in QX to for of provided selling console our increased of was to ASP of console previously second below mentioned, sales XXXX driven Sonendo largely TDO GentleWave million, is console the on of launch instrument prices the anticipation software our sales, As third $XX,XXX, The procedural compared and XXXX, third GentleWave quarter X of quarter, In quarter the Gen third third compared the million million quarter in XXXX. X the in to $X.X an primarily the Gen quarter XX%. the increased reduction $X.X console. was of strong increase Growth growth. slightly attributable million quarter average roughly $X.X in XXXX. the incentives of existing and

Total totaled the to procedure $X.X XXXX, the was was selling XX%. the driven primarily continued to quarter for growth was of compared and XX%. procedure of third standardize instruments, with increase to quarter in product base, quarter third year looking the increased PI an $X.X the of XX,XXX. an prices Total quarter million revenue was of install XXXX by quarter revenue $X.X momentum, XXXX. group third by XX% software increase their margin the million, Turning the the quarter. other in $X.X XXXX, compared XX% Procedure Gross in practices instruments to primarily approximately GentleWave The increase XX% of to PI third in sold, average prior quarter third across compared $XXX,XXX the revenue period. to an sold for in of compared was increase related in approximately large instruments million approximately was revenue million driven enterprise.

to console $XX.X with expectations the as a driven as offset the operating administrative company. our and personnel accounting higher the by of higher relating to well loss lower fell operations expenses XXXX, $XX.X was The procuring and pricing, operating primarily console from half period was of Gen with pricing. some legal by general primarily year. increase as with commercial procedure $XX.X X of the expansion, in expenses the costs, public Total higher associated the the to third reduction to than components million million in loss third of quarter in $XX.X quarter results were due of XXXX. were compared volumes, at we compared compared XXXX, of to was our aforementioned While partial million XXXX. quarter gross favorable $XX.X service Net of quarter console quarter the third the margin higher short expected Gen in costs, of third million million line XXXX, in for $XX.X in and first third in The XXXX instrument prior same million, X

of cash $XX our XXXX and $XXX.X while cash XX, Our September closing equivalents totaled and short-term from investments borrowings totaled placement our private million. million. proceeds $XX as were recent of long-term million, Net approximately the

to financial Moving guidance. our

implies XX% million be to $XX.X million we This $XX.X annual quarter. XXXX, representing to revenue million, and XX%. the our annual reiterating For the in are of fourth $XX.X between growth year-over-year $XX.X to revenue range million of in

The reasons move like statement, and early income approximately the previously processes. point, for down this to expect for will as up be in Moving to noted. the reductions call XX% for meaningful questions. CleanFlow production to XXXX begin gross a quarter volumes of we impact benefit At we higher having margins XX% open fourth improved to I'd cost

Operator

you. Instructions]. [Operator Thank

Our first Jonathan from from question comes Stifel. today Block

line Your is open.

Jonathan Block

XQ clear. levels. Thanks. from down quarter, want first I guys. GX Is afternoon. the sure or sort the console? that's consoles one-timer roughly you one, Bjarne, think to Great, to the of transition the like Good XX,XXX the make I the for X% Mike, upon Does then for my just as rollout a go pause I'm to Maybe maybe Does you console think ASP How do it go where Let you GX? higher? forward? think ask XH back Are the the can even were me taking of XXK there that ‘XX? I about I and we price it follow-up. in this going

Michael Watts

Mike. Jon, Hey it's

put So, GX, in in speaking just which context about GX's pricing, to launched. we need of the we

have we're GX to So, ASP. expecting higher a

QX expecting current maintain GX look version. So, we've and probably list in GX a than point market, at the we'd its the going to priced to price that the we consoles at that console approximately still two forward. play more ended We're XX,XXX at out price

Bjarne Bergheim

quick GX equipment launch in that you a dynamic just follow-up the in maybe from We on just that ASP dropped Jon, a pending launch, sometimes is which happens medtech GX myself. is in had reduction the common the new a slight This Bjarne. effectively here when sector. capital

Jonathan Block

between realized. push That forward Okay, on going expect realized do the to offerings think so ASP be works maybe might the just XX,XXX GX tack maybe two you the the that how to in and different for just to clarification, the ASP do on GX? sorry around then going market? that but the of market. be that will still additional And be you to to What split is run you,

Michael Watts

So, Jon, it’s Mike.

to positive just introducing to from people it and just customers, upgrade So, see feedback this price provides, provides to also a we're the technology and today differential receptive it more operatory improved and And I them getting we're about talk opportunity where that GX, that interface efficient very user mentioned. are functionality.

we're suffice ASP if know, don’t on think, to provide wanted it say to GX, from add. to expecting ready to So, net you not I add guidance, I anything that a Bjarne, positive but GX. we're yet

Bjarne Bergheim

in But GX the will of different do GX be that reasons will will the GX system, what They both for this improved able our leading opportunity the console, so levels that keeping we want we're obviously the to to the and open But for on leading GX. for GX and and thinking is in a are Yes, support with that out inventory will time. system. with. be just about some - we market, we also that's go is significantly customers thing to different be GX scenarios purchase we I’d a think add as I we as right, have other here. flexibility couple sell

Jonathan Block

some of Okay, so it just understood. it low the it first my be push was XQ? question in to do guys, Mike, like exit And the whatever changed detailed, do? we looks more just is, margin, up trajectory? a you is when you you clearly, XX% ground then thought know GM just XXs. just and have a you And in gross Is you GX our any was like would I'll sort little you for like around exit what the same Previously what the in make be improvement? XX - there. solid trajectory will I called bit, you maybe exit guys, XQ. in mean, just quarter Do a to bit follow-up you was guided lower Do knew now from out of sequential but off XQ? the from I myself, what where you to can I last maybe XX% little was for whatever and the hopper that coming we speak run mean, push the

So, about, surprise was around maybe led us GMs. then help XXXX and for what guys. with negative of XQ, to the Thanks, talk the into ramp the that the trajectory shortfall incremental

Michael Watts

I'll take and first the Bjarne so, half on Jon, Sure. can of it. expand the question, then

out some we in us QX, and it And associated the were came replacement how through due work look behind on thinking about roll to were chain we in XXXX. early QX some challenges starting when presented at had that install components just was that came for with best in year. that around to of that in one thought get the they in those it So, some opportunities certain itself timing in And our we how base. inventory that we supply QX, was

- it we that also order use QX for to but higher that we provider opportunity a we to them service So, in already today, use that over third-party took that do a and at QX. use we QX, execute It to level us. effectively in do

put when placements we XXXX to we something exit the for we those service look us before the into that So, better that in at take costs, year. is and was think

mentioned QX, guidance Now, our when at continued where half another through to we be cost then that around that and in still to dynamic but CleanFlow the just work I than QX, that we're exit produced through service also QX, moving QX, inventory the ASP you QX stronger had the look to expect QX, and is in the there's of also first still lower also going QX. and factor we at quantities sound,

averages expect the we QX, as the we by to December, be, XX% to where for that originally be - we XX%. exit exit guided but it to overall out the it call place So, to back quarter,

Bjarne Bergheim

to build little on Maybe what is just Mike bit saying a here.

chain, here, to needed That's chain. is to effectively of some There's is the these that that key parts difference related So, right? these supply some we maintain. supply Jon, of

though the significantly consume into our higher in manufacturing of that we're ahead, at benefits contribution cost going units we're talked parts. on here the the to we forward. we're we consuming very end seeing we ahead, in to should made procedure did part plan manufacturing QX field points consoles Some business XXX time train these projected, CleanFlow of come this right very going even of we've quite floor, lower CleanFlow had in optimistic for we back hence the Today, the And that, of point and we're obviously that And higher But and having CleanFlow higher the not XXXX. forward, as going now come prices. the as to still in We're margin But with and coming the we margin the we CleanFlow. are and the more field. instruments, as production earlier towards have doctors come But key molds we in train CleanFlow doctors said point our but aggressively about procedure field. cost continue doctors actually to inflection instrument now inflection than margin on have back ahead trained to with is business. CleanFlow about on significantly start in before, these a

to sequential push seeing quarter-by-quarter year margin as then be we should we CleanFlow. continue growth So, next

Jonathan Block

guys. Helpful Understood. Thanks, color.

Operator

Bednar Jason Sandler. turn now from Piper to We

Your line open. is

Jason Bednar

start appreciate here quarter on going afternoon. all good I'm solid off of Jon team, Block's Hey another on color Really off the there. to question building here. GX. Congrats

hire you've lower Can system? COGS ASP. price the in So, know point. GX that speak can the margins, on don’t the about the got system relative mean, on GX, to the to margins new I if I the you XXK anything maybe you with given talk

handle up? those nicely Just start be when then how of GX to that about planning upgrades or here? trade-ins units? you're two And of a planning talk is above that something thinking that or you're run Will going stack GX, program formal old do GX forward? we plan to you margins that Is of to incentivize can the of how adoption part not about

Michael Watts

Jason, it's Hi, Mike.

console. So, start margins on gross just I'll talking about the answer the the

to QX margins console GX And So, in what their a outer the call overall price where existing of it the part look of launch, they customers compared as upgrade to at just forward. At right was, service existing practice, to profile higher program, incorporate GX line we be well. it upgrade GX, a our look are better GX to to really a but this users, equal into at lot program benefits to seeing with is about going was. that including But second the talk when years. limited we're have that and least stop see we and offering where now, at want we your their now in as we initially, at we forward, we'll prior GX point expect moving question,

we're expecting not Gen looking the significant to Gen many of X. in and overall, our to time, periods of So, take move we Over right existing not step, upgrade to everyone, a program upgrade X. expect at of course, now, at least early users the we're

Bjarne Bergheim

anticipating here, of QX. answer a we're Mike's on to upgrades building in number Mike's not also And higher point,

We out have to system but to focus focus will drive new opportunity. longer-term our will business, big is as forward to a the better - go our obviously But We be go systems customers. new for kind horizon and be adding the going sales. opportunity our of to will the doing then see That to that talk be and as to here, we sales. continue upgrades on be we drive existing

Jason Bednar

And on capital environment Okay. Very the helpful. equipment All maybe right. one then here.

the cycles coming, of have during some of any not presence environment I playing in mentioned then that the think if you if unfolding. or time think the bit a benefit are longer Definitely of out macro real XQ, third GX sure new quarter. capital because some a purchase sales market prospect also but led also surprising, you role uncertain, that's have dynamics not we're guess, launching entirely I'm I just see the you Curious delays new given the the the during at you to sales console in. leaking the environment the you console. played those little time, a how do again, but out the of an overly

here year-end. guess I So, things out just curious how playing you see

then - better to ahead look think ‘XX? well was we that we how be think some as equipment sales but thinking I should XQ, about versus the as about commentary

Bjarne Bergheim

able that, there - in sales Yes, exceed some equipment, why as reasons risk, to in new But the here we is that always we happy actually will QX. here, demand one were as capital we're further are Jason, consoles, to Good and questions. is GentleWave. year introducing we which that towards delays numbers of of be into for see look of our because the right, there that we the will end some strong when the continue console And leak you somehow look

than uncertainty like talked call, and Having environment the cycles, feel, current also our we forth. and about stronger said but will interest have end the taking pipeline, incentives financial because an We so economic still are and this add of continue the that QX prior in level. just QX macro console is entirely robust rates that we here a would conversion platform to that to obviously and year. just say, be general, I in And very longer though, towards in of believe new because tax we say of higher our on

look also - very well for us as XXXX. QX, we sets this as into we So, just not up but

Jason Bednar

All hop in right. queue. Thanks so back I'll much.

Operator

Nathan Our comes Goldman next from from question Sachs. Rich

Your line open. is

Nathan Rich

afternoon. pivoting Hi. for utilization a what Thanks you're questions. seeing to the Maybe over from Good standpoint.

Sounds like utilization to the up in fourth quarter. expect you pick

quarter. Just played out cadence in curious how third the the

I there the visibility And pretty kind you're been guess, about strong. level do August I ask how September my think July you terms for had seeing? in follow-up. trend? of I'll stop How maybe of utilization and did that of feel XQ and And

Michael Watts

good Nate, Yes, questions.

because lot softening is the there, in vacations COVID summer of right? hence that different We utilization dynamic, remarks there about the different One lot because in that long the a of there's talked for patients we of holidays. of a a prepared and vacations. of So, things, longer was we our also time a doctors and think taken haven't there took dynamics things was - that

we we we in utilization to slightly saw that's and July, dynamic. a So, September, see why lower And point, slightly especially July softer versus around your July the August believe holidays. did a

in endodontic our is overall As October general, demand What into just to market. we mirrors it the seeing October, seems really well, is we're here tracking in that right? is, look the be utilization and in

even holidays. had lighter revenue procedures. see up, So, of perspective. which months procedures that number as summer we because summer the then ever, highest our In total happy the we in our - and goes consumable also slightly had very being of QX revenue from is We're a in we married endodontics a utilization though

Nathan Rich

maybe equipment, to the for bit Great. one And ask just capital outlook a if little specifically more could XQ. I then on

seeing equipment right way if this the I out the XX% have back for And accounted year, capital I that Is you the to maybe XX% know the quarter, of you've of that fourth of, but don't think quarter fourth EndoCon? type side based comment it, you for that seen of last on could that you're coverage demand that coming what guess of out event? system at think demand is - type for do to the year? seasonality the placements you. on And Thank expect about the the on would year. you I looking

Bjarne Bergheim

we where continues That on both can so side us. the technologies, conference to for side. showcase on was continue grow. - that exciting an be great that's conference consumable EndoCon place to GentleWave Yes, and a continues It the console a

different QX, talked start the to, of and exciting strong pipeline always variability, that So, like quarter also only is us, believe quarter. it The Like year. bit and for little be these strong. consoles. a alluding to the the a But we takes right, quarter close that this strong you're will an been the here, a earlier that some is was has we for about time it demand

here XX.X to the for range we our this the year, variability talked that is console If look - QX. range we remarks, the range that the a you is see talked we that about XX.X that from guidance in at effectively function of the sales in prepared about, really of

Nathan Rich

Thank you. helpful. That's

Operator

turn to We now from Michael Cherney of America. Bank

Your open. is line

Michael Cherney

of Maybe the can the for thanks I side. and console afternoon, Good question. reverse go taking on kind order

of you or for You think be either about some of of mentioned had Mike, in of the think, economic that the or servicing some some dynamics sensitivity? need dynamic in that will and nature? about have type filling GX that type GXs. we do talked time bifurcated point base, some cost the is at to and the opportunity you're How dynamics product event an there you one-off demand do go-forward GXs not have in the a considering of Is and something - I this

Michael Watts

understand want I I So, make sure to just your - Michael, question. I

the think So, sell - same GX over PIs, same about GX planning procedural the to when that the at technology, consoles rather, foundational fluids. GX, coming you how same uses near-term look the still GX opportunity a there's we're and quarters. we both

their having over there's that GX we cycle switch aren't customers, think we people two introduced that consumable And to course, will of our So, pipeline that. in of through the for as a profile quarters lot necessarily coming well.

what approach, having GX in we foreseeable in the continue So, marketplace. two-pronged future see is and GX to still play the a

Bjarne Bergheim

a add further we one will on we we up eventually with now, platform give selling But - just and believe little and a do there, bit will Michael, console retires to system. GX should the that color end we

screen, we improved we’re - battery the you just next practice et procedures, multiple fluid as consoles, do look more in general, of capacity more taking cetera. can procedures technology backup. do across think terms on They do efficiency. multiple to Doctors there's et I this level right, GX, can enabling to cetera, in

So, level. just platform the taking next this to console

GX to you that buy how think more that slightly of higher endodontic implementing root and time we do look that in higher procedure, and out ASP canal GentleWave an be up ASP, much why maintain doing - step practice, that how and that there be come console, believe and over if should are system. no many I shouldn't that able time doctors benefits reason a we should

Michael Cherney

Got it.

for have I'm my think I Thank all you. answered. good been other questions now.

Operator

We Wright from Stanley. Erin to turn Morgan

is open. line Your

Erin Wright

Great. Thanks.

this should there, as the do the bifurcation metrics maturing sales need us sales how you expect is ramp that into thinking about at force? where from we we the and And about perspective, start the you be of point, and you to about around productivity up traction we a relative you strategy think With any give how XXXX can force, Thanks. as particularly are your expectations progressing to think sales XXXX? and the force

Bjarne Bergheim

Yes. Thanks, Erin.

first happy on and of bifurcated we we're most commenting sales the bifurcation, the with QX our in team of ‘XX. having us team, So, hired

and The first capital the half of has both been sales consumable XXXX, year, the reps spent reps. trading this

specifically Looking has what maybe the on team done.

the we more We consumable team helped have in has last have - units. now particular XXX the year install installed than

couldn't for trained this of we record this those revenue on users like We CleanFlow. did without than includes consumable We on to trading helped more that have setting CleanFlow, those while our convert And without base talked not have more we doctors consumables which have user XXX done which been a bifurcation also, done XX% reps. in and about, that means QX. having having CleanFlow, than

happy progress the we're team. the So, with of

need we team the forward, focus need CleanFlow utilization. to we driving Now, going the to allow to doctors on to do remaining what wrap converting and up

in we consumable sales the rather, doctors across in prepared hired going sales we've will When think our many part force comes expecting the to VP the any that key help we're the we're your We're at meaningful we've slightly as also monitoring, training that's sales that specialists QX, drive the to look rep in of about forward key sales sales was, to utilization hired scale to side capital team of that an organization, coordinate question in how field. about like think from thinking activities, - selling - and both closely we into remarks, building but right, start how GP I year, this. we’ll opportunity the we're a increase it reps expand if is be and this not a here next perspective, talked metrics the we what So, of different as there's you and the helping force on CleanFlow as that look of it team. consumable

Erin Wright

Okay, the GX both strategy, the that consoles that's helpful. the GX work? does does when GX, like go-to-market then, And off? And roll officially can having you and about talk how

Bjarne Bergheim

We it's we we will with better GX. all a Erin, So, will will leading we selling. forward, will be and we - G lead continue to - believe with what system, be that's believe going activities we sales

price some they GX cetera, either just that some will buy because But, to so part for Did of et out differential other system. be GX Now, there I your Was will various the or continue different second smartphone, all reasons, customers, for system. continue of about like to or strategy a any a push miss we the that second buy medtech to do that older time the - will believe some part? really Erin? question, the to selling

Erin Wright

about do dynamics? just when does when you that pricing expect off? to end, So, GX roll as we think like Like

Michael Watts

Erin. can I that, So, take

be really on we we QX as of out GX in market that to play the GX GX, when a XXXX. indicated, going early don't for and But about GX on anticipate and having we so GX largely letting the So, think years. QX long Bjarne is and how system keep dependent just out

Erin Wright

it. Thank you. Got Okay.

Operator

Q&A. This final and our Bjarne concludes President now Bergheim, for CEO, I’ll over remarks. to

Bjarne Bergheim

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

Operator

participation. to like thank concluded. now We'd has you your for call Today's

You may now your lines. disconnect

Sonendo (SONX) 13 Nov 222022 Q3 Earnings call transcript