Sonendo's Q3 Results: A Strong Quarter and Promising Growth Ahead

Sonendo, Inc. (OTCQX: SONX), a leading dental technology company, recently announced its preliminary third quarter 2024 financial results and the postponement of its conference call. The company's strong performance and growth prospects have caught the attention of investors, making it an attractive opportunity for those seeking undervalued opportunities with solid fundamentals.

**Q3 Results and Guidance**

Sonendo's Q3 2024 revenue is expected to range from $7.9 to $8.0 million, representing a significant improvement from the previous quarter's $6.5 million. This growth is driven by a 19% increase in console sales and a 23% increase in procedural instrument revenue. The company's cash position has also improved, with cash, cash equivalents, and short-term investments expected to be around $17.3 million at the end of the quarter.



Sonendo has raised its full-year 2024 revenue guidance to between $31.5 million and $32.5 million, reflecting the company's confidence in its growth prospects. This increased guidance demonstrates the company's strong financial performance and its commitment to returning to growth.

**Potential Biolase Acquisition**

Sonendo's potential acquisition of certain assets of Biolase, Inc. (Biolase) during its Chapter 11 bankruptcy proceedings could significantly enhance the company's financials and growth prospects. As the 'stalking horse' bidder, Sonendo aims to establish itself as the leader in the endodontic space. This acquisition could expand Sonendo's customer base, increase revenue, and improve operational efficiency. However, the success of this acquisition depends on the approval of the bankruptcy court and the satisfaction of closing conditions.



**Investment Thesis**

Sonendo's strong Q3 results, combined with its potential acquisition of Biolase assets, make it an attractive investment opportunity. The company's low-risk business model, effective management, and favorable market trends position it well for continued growth. Additionally, Sonendo's solid fundamentals, including a strong balance sheet and positive cash flow generation, provide investors with confidence in the company's financial stability.

Investors should monitor Sonendo's progress as it works to finalize its Q3 financial results and address any potential concerns. The company's strategic reset, initiated earlier in the year, has contributed to its recent momentum, and its commitment to returning to growth and establishing itself as the leader in the endodontic space further supports its investment thesis.

In conclusion, Sonendo's Q3 results and potential Biolase acquisition present an attractive investment opportunity for those seeking undervalued opportunities with strong growth potential and solid fundamentals. The company's strong financial performance, strategic positioning, and commitment to growth make it a compelling choice for investors looking to capitalize on the dental technology sector.