the Today's structured than for afternoon, slightly Good Louisa. today. thank in you will be us everyone, call differently Thanks, joining past. and
have providing first While Board quarter plan time Sonendo's together spend change in review strategic we the to most organization. about the management fundamental a business of and that undertaken drive my results, information reset to will I
prevalent most world decay, revolutionizing is treated. truly tooth chronic is the disease Sonendo the how in
Only incredible of endodontists has milestone recently the the but understand States have we treated. United going significant crossed of what XX% change company technology strategy patients so the is performed potential in million value needed. growth We in We the forward. the procedure, Canada the an have, and GentleWave of X.X and
of opportunities. plan initiate Following several to what years XXXX, growth complex to XXXX outsized and believed from initial capitalize commercial to decided more to valuable try we growth we be ambitious a to on
primarily sales and sales made practices. marketing. We our significant as focus in sales and utilization structure and on procedure by We instruments for such team programs on focusing consumer force their bifurcation doctors the building capital incentive investments changed with helping losing
the attention our focus sales lost shifted and also We KOLs. our customers much and to endodontic general core on of team of practitioners
we commensurate and strategy. did during XXXX, changes the in of As made investment XXXX with realize effect growth revenue these level took not our commercial
pursued. our to cash XX% excluding business, associated example, the from we support not of number expenses the console and sales over marketing XX% same We software the with only increased XXXX, could burn For period. while programs revenues increased XXXX
growth needed a and have make company to the return reset subsequently in to pivot focus strategy opportunities. our to and We strong core on approach our our we
commercial organization investments are the the the and realities the long financial term market to in to adjusting current term. strength are We the of moderating achieve in near
management, more transparency targets around As timing. operating part milestones, margin of the reset, gross expense financial and we like are providing
supported early in past successful learnings over and plan Management guided the the by set and X XXXX increased our in the commercial shift decided previously the Board reduced to and capitalize have results have We years. which been our spending the we areas have focus approach. in with
in and quarter solid We we're quarter the $X our guide, exceeding regarding million, proof million of points $X first our strategy. unfolding several revenue with a encouraged had by
reduced orders sales yet received of than XXXX, quarter. more still We expenses a we We consoles had and orders. over marketing productive of backlog a XX% for capital healthy quarter by first shipped the sales and built
margin XX% to gross GAAP point compared XXXX to for of for than the XXXX. XXX of and a from first decreased first increased quarter XX% million, XX% $XX.X loss from was margin the non-GAAP and XX% more to quarter Non-GAAP year-over-year improvement reduction. XX% basis gross million operating $X.X
full a year confidence million million. $XX the of range in prior to strategy, $XX increasing our result our early successes the and to million revenue to $XX these As from reset we're $XX guidance of million XXXX
to results, know happy first are more we see a direction. of we step with in this as early right far there We indications is While do. quarter our the performance quarter's
going time the of outlining why forward. are margin I on plan, commitments improving some would each execution, and cash initiatives provide each spend related key and some like I'll commercial these of which details and expansion. we're on to our X to now focusing targets how conservation
execution. The reset commercial XXXX strategic first our of is focus
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did effectiveness investments utilization drive our observed of had ability While less our convert earlier. to to sales, in and XXXX than the ability we these and XXXX was into place consoles significantly
earlier ready had at initiatives Sonendo once, too with to been years. was selling we very the practices trying in straying successful from before were do and scaling things many we
return commercial Given on have we to every will positive we a focus that have those learned, analyzed we on program ensure investment. generate efforts what
the XXXX, have reevaluated into In GP endodontist. from pivot the the away is areas GPs. critical of One channel core targeting focus took of the a herd we our customers,
target have on to root canal a way basis. many not found While GPs consistent practitioners high-volume an effective we procedures, perform
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now and we end forward. our America, in those believe We're penetrated practices meaningfully market we increase in the going XX% North in presence can
and endodontists points with shifting strategy procedure purposefully and potential term, subsequent refocusing existing shift drive are volumes the We customers. we help will to away PI from exclusively touch near the result, sales. in a believe this growth reestablish As both GP on for and
commercial compensation plan. this our spent doctor driving creating consoles selling remedied modified also building affected compensation which To dollars rewards the In doctors efforts, for support relationships with utilization. placements, to past, most not cost and incentivizing decline. incentive and structure we our only We've console an were by for have utilization sales reps that but partnerships
entire have In execution driving grasp commercial and working of spent on commercial with And amidst which vital addition, I going forward. have team a to the I lot success reset. this programs are a time good
closely analyze to programs. Our review and senior Board leadership with team has been these very the working
we're few critical think programs forward. result, for a on the a that focusing organization going As we us commercial will be
with resonate have plan the events the base One for will example program and of going a to is them can These clinical understand within shown demonstrate and referral customers their prioritized their education improve a events. help us from we good as such a ROI how workflow increase be providing incorporating they multistep GentleWave benefits These well events practice, forward. into practice.
the strategic TDO, in tenet the Driving was focus throughout our commercial part behind the of entire is software our a divesting organization This of reset. business. rationale key team and
adoption to of debt. awareness than PIs procedure. helps TDO portion perspective, of management practice strengthen of solely For sale sale of an the organizational and a Selling from the allows focus software. But pay of our on selling TDO the consoles sheet our very is growing one, GentleWave us down and balance now different
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across area strategic finding our teams. by do and conversation. Company-wide, priorities reset clarity focus more of and with second XXXX The cash creating ways to less is we're processes
a We quarter. our programs return on not result, we loss have operating that discontinued the by show in XX% as a first do reduced And approximately non-GAAP investments. clear
development expenses development sales also the of are such transition of our marketing. CleanFlow as expense reductions and to and design instrument GX, with and and completed of the instrument procedure in We've Most the projects one in procedure eliminated design field. associated
portfolio. within product on margins our R&D existing focusing dollars We're improving our
and higher Additionally, office we of the have costs. back fixed eliminated many
we growth opportunities. compromising We level expenses become new as to normal without find our operating to work additional business anticipate diligently of the current existing the in efficiencies
take As cash we our moderated the will throughout a proactively and result, to for the manage experience time hold. remainder likely growth the of reset we strategic as sufficient effects of allow XXXX
to not XXXX save expect runway. thereby while have prior and the over I XX% reallocated we non-GAAP cash. for trimming extending strategic $XX want note that analyzed expenses areas decrease resources unnecessary we that or loss just a our to drive million, operating and needs cash cutting to be We our will our improvement year. to growth Instead, are approximately spending
are the balance I also financing equity secure sources want Board to options, including our exploring nondilutive debt, and in combination to and of sheet. multiple reiterate that management viable
more provide will discussions those details We progress. as
expansion. XXXX The is reset margin focus of third area our strategic
gross to we earlier, to quarter, about than points non-GAAP increased but do. XX% we As basis our discussed more by margin this have XXX work more
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our service some reliability necessary team. required base created the frustrations issues Our by previous installed GX had This referrals. GentleWave hindered calls that and service consoles peer-to-peer among
gross of these significant our In to overall within XX service hours be margin addition, proved a of the XX cost profile. burden calls a on to making request
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providers a our in saving Many time and our offices their consoles in staff report with significant improvement the to offices. reliability, better of addition workflow than also doctor GX more X helping In are GentleWave console. GX hour drive daily
a as service we support quickly being are allows which dedicated service ensure Instead, service Given to the as improvements will and that us decided significant and eliminate Sonendo improve also team third-party assist customers reliability, efficiently have to in field met their our our and in the possible. margins. further reduce costs better needs field,
elements critical GX that satisfaction Moving calls, and team forward, experience upgrading so a are move result help made. from to the GX will GX our service Upgrading will customer can we we to customers improved a customers forward. influence as significant These drive have of reset. all improvements in prioritize consoles our commercial customers existing fewer peer-to-peer
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ensured product the can Now that reliability we have projects. on improvement the and portfolio, team we our focus margin performance of
value-based that have road put map strategic material and significant a resourced. that engineering projects on cost and fully us reduction sourcing, staffed These projects includes pathway to margin improvements. are We cost clear reductions
drive them our procedure. XXXX. closer practice discount instrument efficacy with to instruments. in QX clinical of this our QX procedure commercial favor are building $XX.XX incentivizing utilization a $XX with relationships This to the team From as helping sales of opposed limiting programs we of Coinciding doctors, drive prior and increasing in in our resulted GentleWave from to in ASP we're decision XXXX now with change, efficiencies, economics procedure better selling perspective,
this fewer quarters, customer these resulted future procedure with instruments changes of expect the QX procedure to sold Implementing shipments we year. in align In in instruments utilization.
have a contribution in By end the contribution XXXX, the range. range. we mid-XX% instruments in to of procedure margins CleanFlow low expect margin CleanFlow mid-XX% be Current the to
we And to gross range expect high focus, non-GAAP margin we as to be this As exit move range exit a our margin we overall XX% in company upper the result the expect we to mid- XX% towards XXXX. the as number XXXX. of
range. and have Beyond see opportunities Sonendo's growth an We're we believe in today The my the XX% our ability the revolutionize about conviction this strategic decay. important clear the reset gross meaningful confident the company forecast and root to Board I opportunities treatment the towards in we move margins Sonendo outlined is ahead, first team's the of shares for execute horizon, to tooth step and therapy technology, future. to well moving opportunity canal into
We started. just are getting
Chris Guo, in you, like introduce Interim first I detail. to Sonendo's the results CFO would quarter's now to to review more
of since and to into and Chris Finance July stepping Vice discipline He and been a financial extensive Controller accountant is and experience valuable Sonendo's President brought public Before our XXXX. corporate governance before XXXX. with in certified Corporate in accounting public had Sonendo IPO March, since role both this in has
