Sonendo, Inc. (NYSE:SONX) Q4 2022 Earnings Call Transcript

Operator: Our next question is from Michael Cherny with Bank of America. Your line is open.

Hanna Lee: Hi. This is Hanna Lee on for Michael Cherny. Thanks for taking my question. Could you just talk about the current demand trends you’ve been seeing for capital equipment? And if there’s been any changes to the lengthening of the conversion cycle so far compared to the prior quarter?

Bjarne Bergheim: Yes. Hi, Hanna. As we talked a little bit about when we talked about guidance, right, what we are seeing is that the capital equipment trends in the first part of Q1 here is similar to the latter part of 2022. And we haven’t seen really a change or any deterioration in that. So the longer conversion cycle that we’ve previously talked about that substantially remains the same. Yes.

Hanna Lee: Yes. And just one more question. Do you expect to step up marketing spend as part of the GP push?

Michael Watts: So I can take the first part of that. So, when we look at our support, both sales and the commercial efforts, we’re looking to get leverage out of that as we continue to grow. So, we’re not looking at any special increase in costs related to the GP initiatives overall. I hope that answered your question. Operator, I think we can move forward. I think we might have lost the caller.

Operator: There are no more questions. I’ll pass the call back over to the management team for closing remarks.

Bjarne Bergheim: Thank you, operator. We’re very excited about wrapping 2022 with over one million GentleWave procedures completed, since we started commercialization. We also started the year with a brand-new product offering, a new GentleWave G4 console platform and a new CleanFlow procedure instrument that makes the GentleWave procedure simpler and easier than ever before. And we’re also very excited about the opportunity to introduce GentleWave to general dentists, as we set the foundation for long-term growth and as we move deeper into our $1.9 billion annual market opportunity in the US and Canada. We appreciate everyone’s time this afternoon and we look forward to speaking with you again throughout 2023. Have a great day. Thank you.

Operator: That concludes the conference call. Thank you for your participation. You may now disconnect your lines.