The following is a summary of the STRATA Skin Sciences, Inc. (SSKN) Q3 2024 Earnings Call Transcript:
Financial Performance:
STRATA Skin Sciences reported a Q3 2024 revenue of $8.8 million, a decline of 1% year-over-year.
Gross margin increased to 60.3%, showing improvement for the third consecutive quarter.
Achieved first operating profit since 2018 when excluding a one-time accrual related to a sales tax audit.Total operating expenses for Q3 2024 were $7 million, reduced by 7% year-over-year when adjusted for the one-time accrual.
Business Progress:
Revenue per XTRAC device grew by 2% year-over-year.
Strategic removal of underperforming XTRAC units aligns with efficiency goals.
Continued expansion and promising results in Direct to Consumer (DTC) initiatives, significantly increasing new patient appointments.
Deployment of TheraClearX devices increased along with securing insurance preauthorizations for acne treatments, enhancing treatment adoption.
Opportunities:
Expanding DTC initiatives, especially focusing on utilization of Spanish language efforts to broaden market reach.
Increasing the installed base and use of TheraClearX devices for acne treatment supported by positive study outcomes and professional endorsements.
Risks:
Revenue declines in recurring billings underscore the challenge of reversing negative trends in this area.
Legal issues from sales tax audit and ongoing litigation indicate potential financial and reputational risks.
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