Earnings call transcript Q4 2022

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Operator

Hello, and welcome to the STRATA Skin Sciences Fourth Quarter 2022 and Full Year Earnings Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded.

It's now my pleasure to turn the call over to [indiscernible]. Please go ahead.

Unidentified Company Representative

Thank you, and good morning, everyone.

Bob Officer. Executive are Lesovitz, and today Financial Chief me Moccia, Officer; Chief Chris Joining

STRATA-released results release today, A the Earlier financial website. copy XX, ended company's of XXXX. December the press is on for available the quarter

Reform safe you Private laws, Before make of management pursuant which Act include statements are statements to of Securities meaning the that will within call made that the we harbor this the like the begin, forward-looking I'd Litigation provisions remind of during federal XXXX. to securities

Any our or in estimates involve to should call Accordingly, expectations do these matters and actual results limitation, you assumptions. events, These forward-looking upon that these of statements. and of without that differ relating based to materially implied undue including, not anticipated to place are results those various predictions trends current statements future relate statements. from could to statements this uncertainties financial contained statements, and those operating not by All or of performance cause performance historical relate facts reliance or risks on material forward-looking statements. future or are forward-looking events our

December the and XXXX. our including business, risks with these description please report XX, list on section annual public our the Factors and associated ended refer for uncertainties a For filings year of with SEC, to Risk of our the XX-K Form

forward-looking broadcast because the to or financial This new is March statements or contains obligation, of law, required only live or XXXX. future today, as events of revise update by call STRATA conference time-sensitive whether any otherwise. information, and any except information XX, projections as or disclaims intention accurate

STRATA's measure A billings, measure domestic which Investor accessible company's and page the financial to refer of comparable on for December financial the a we the posted release most non-GAAP financial ended Relations to is presentation, SEC's this on this of in non-GAAP XX, gross GAAP quarter which directly website. fourth earnings the fiscal recurring XXXX, website is reconciliation available is the during Also, measure.

call Moccia. over with I'll And to the Bob? turn Bob that,

Bob Moccia

all us today. Thank [Gabby]. Thank you to you, for joining

be to to of record proved year compared was $XX.X a growth the for We announced XXXX STRATA. above prior record guidance, million, XX.X% period. revenue a representing which year

a our acute focus Our result strategic execution direct priorities. are and successes commercial of on

into As leadership Israel President, raise launched TheraClearX of -- achieved a XTRAC our year, launched brief Relations; and entered recap, and we Goodman, standard revenues, international laser markets, record our John team and this addition aesthetic conferences. Sales, and Mike the Vice including continue Mexico, device of Momentum, dermatology acne with at for strengthened acquired than various our treatment, X.X Bagdasarian, XTRAC model, new successfully TheraClearX Professional to systems and International Head of awareness commercially

and with direct-to-consumer continue opinion to strong To marketing achieve we in high-volume invest assets, our double-digit fine-tune the and dermatologist and refurbished to messaging marketing, engaged to deliver with devices. clinical deployed key leaders help support our underutilized accounts, growth, directed interacted

States. This total in XXX United signals demand for vitiligo. offices Since machines, growth we XX, additional placed treatment in XTRAC September of in psoriasis, XX need systems eczema options resulting the and placed dermatologist for a and the XXXX,

a users States to in psoriasis. the the as for is of continues opportunity us unique present XTRAC XX% with United

vitiligo. mentioned, team previously for we As usage we drive initiative have have commercial our an to with

known treatment drug offices. the could the to more We ruxolitinib OPZELURA, drive traffic recent complement XTRAC expect for of as treatment commonly vitiligo approval cream dermatologist and first FDA

dermatologic website on conditions ultimate goal who new dermatologist the emphasizes XTRAC of usage. in potential finder of patients patient the website. using educational broadening this of and the patients launch patient surrounding to website The from our function. XTRAC a to serving February new by year, with the easy we allows practice In The use. is awareness suffer forward, focus announced It our and increasing area find

a XXXX, TheraClearX Theravant XXXX, from of the beginning is of we Corporation. TheraClearX TheraClearX. treatment of we In moderate the commercially targeting acquisition in-office mild launched the noninvasive July to At acne. announced root cause

of built sales inventory, research, As we our in created out carried additional marketing and launch, force part market our a plan. invested

TheraClearX TheraClearX year. device have TheraClearX on utilized cost of fraction cost to the and through of sell sales We channels XTRAC excited of patient physician and is to a patient the to the launch education competitive the this are we System, continue The the the device.

costly. reminder, are acne, a all of with XX% that to often XX% for be visits dermatologists As to drugs can treated prescription

clear and broadband vacuum Our light to a rapidly. combination delivers begins technology skin that unique the device of

treatment prescription to Our patients results treatments as to compliance TheraClearX can rapidly. help acne potentially begin see increase

Therapy MD, and poster Dr. titled clinical Mild-to-moderate Gilly at Medical Advancement Surgical in Patients Visible was of specialists January Taylor presented Rapid Dermatology, Smith Personalized and Aesthetic Munavalli and laser for ODAC Acne Photodynamic with North and The Dermatology. the assessment Director conducted Charlotte, in in Carolina; Dr. Improvement Northwest Smith A was Conference. Jason by Dermatology of Carolinas Georgia and Founder Dr. of vein this

to Most erythema experienced redness changes and the skin clinical series included, texture the was in tailored a reduction the and clinical perilesional lesions, therapy pustules in responded photopneumatic patients of inflammatory assessment treatments. active with lesions photographs, a two pore in of was facial evaluate size after delivered texture, treatments and reduction mild-to-moderate objective from patients visible assessment via Highlights skin visible to acne. patients The to three treatments. and observed with all improvement comedones, in

mild bruising, safety One of are with pigmentation. as TheraClearX to These the adult continue for to persistent in results and limited erosions efficacy acne. and treatment mild clearance acne a changes experienced temporary female encouraging and were highlight events perioral patient superficial adverse to and complete infrequent erythema,

compliance prescription Winter kick in in in demonstration the confidence at from the Village, February, In was and we The waiting the capabilities. to This clinic AboutSkin growth during TheraClearX potential Winter the TheraClearX he in of clinical confident spoke the Dermatology in Conference while in. safety well Cohen's results to assessment in Joel presentation. conferences exposure our patients practice, who's for of continued are channels, in to Director the as of helps Greenwood Cohen, Dr. Inaugural for and exposure the our demonstrated Colorado, Clinical us to the with TheraClearX live Dr. industry Conference XXXX. and highlight sales broaden Clinical utilizes MD, build proven efficacy to TheraClearX exposure treating and existing continue awareness This as acne its device therapy

an to this are see excited TheraClearX We on year. impact revenues make

in Internationally, XTRAC compares we This to turning operations. XX we Now sold XX international to XXXX. VTRAC systems and systems. XX up systems sold of our made XXX the

agreements exclusive reminder, distribution China, Israel, company January, distribution have in Saudi the Mexico of private Iraq with we Labs, in a Bahrain, Korea, international recently, in TheraClearX XTRAC, VTRAC commercialize companies announced signed for an and innovative products Jordan, Qatar, most years. Mexico Japan, Kuwait, for that Arabia, represents we MINO agreement This a and to Mexico. Oman, As UAE, pharmaceutical three

When is it the by we affected look XX% is population, mild-to-severe estimated at Mexico's acne. population of

this to forward We need to enter into receive the Mexico's $XXX for regulatory look of approval, we fourth expect our excited community a which there on gaining options. are nearly We progress year. in the in quarter great treatment as updating million additional to market is

to there as welcomed This focus Michael international of be a system, remains year, to this STRATA our the TheraClearX our we opportunity expect International to a great Goodman and markets, Sales. year. In Head market this we

We in have international our noting international sales already Israel STRATA's operations, increased and Mexico. seen meaningful and our specifically into improvement expansion

CFO, Lesovitz. that, I'll to Chris? over our With now Chris call turn the

Chris Lesovitz

you, Thank Bob.

XX% XXXX increase were quarter quarter quarter fourth the XX% over $XX.X of XXXX. the for over increase third fourth the Revenues and million, XXXX of a a of

Our was sales driven internationally. the primarily fourth equipment quarter by continued in revenue increase

million, force increase revenues increased the of Recurring was a XXXX. of Similarly, quarter increase revenues sales in as continued in third in driven XTRAC a the the were result fourth quarter the recurring the emphasis execution. by on usage over increase XX% $X.X

of the increase the compared revenues increase The for sales were $X.X XXXX our an quarter third result $X.X XXXX. a fourth equipment fourth on international quarter increased markets. million, the for to as Equipment of as an XX% and focus of of the increase in XX% million for of $X.X the to compared million is quarter

E. changes. our have of now product international Michael made partners. in have remain international we International Sales. with direct distribution We year, significant flexible as Over welcome some the and we Head offerings, past our have We Goodman agreements

for quarter measurement invoiced are clinics discussed co-pays which non-GAAP quarter the in prior when revenue not deferred other the last as recurring which we current the revenue morning, discounts. press codes deferral As does recorded are included normal described over as quarter, in include a partner and the release represents quarters, this treatment revenue GAAP quarters future the we domestic the amount issued adjustments It as to information in physician. of to revenue sold on our from billings, adjustments, current quarter and gross provided from

transparency to future a respect quarter. provide the revenue to we revenue. our want decrease with for also deferred portion a deferred each a subsequent recurring in have can defer quarters, GAAP of impact revenue We Since

an compared gross decrease third $X.X of increase fourth as compared fourth and quarter X% to was a non-GAAP to quarter the X% XXXX, the of XXXX. XXXX For million, quarter billings for $X.X recurring domestic as million the of million $X.X the of in

fourth the and of Net XX% of was as profit XXXX. revenues basic per quarter a of XXXX diluted quarter gross share. XX% the $X.XX compared loss or fourth quarter to Overall common the $X.X of was loss or million million or for $XXX,XXX for for $X revenues fourth of

quarter or a share. quarter per of loss net And basic of for $XXX,XXX loss a $X.XX compared As or XXXX to of the per and loss $XXX,XXX of common $X.XX of a diluted basic common XXXX the loss and third share. diluted of net of fourth

XXXX. results million, Revenues and Recurring over $XX XXXX. XX% full $XX.X Now for $XX.X were were full revenues a the turning year increase equipment in to over XXXX. XXXX revenues XX.X% for year the million, million, increase the a were

was over non-GAAP the $XX.X recurring million, XX% XXXX. domestic gross revenues X% to were of or XX% billings year increase revenues gross million as full For the compared the XXXX profit XXXX, full $XX.X year year for full in XXXX. Overall of or $XX.X million a

between attributed percentage and our recording the acquisitions to the recurring. Theravant the to to year amortization with profit expense mix decrease revenue equipment in sales RA of Gross is during associated addition

This increase XXXX in initiatives growth million States. and of million, full expenses X.X% our United was by driven execution as year our in the an XXXX. operating Total our to on business compared $XX.X primarily expanding $XX.X the continued for increase was

supply we repairs. able Additionally, have while mitigate mention chain from parts maintenance companies for and maintain like process facing have been has to machines existing This on that we us allowed our for timely issues, delays to use a equipment. been would our to

for per loss was XXXX the full year a basic common of and million compared basic XXXX net $X.X and as for partially million resulting of diluted a loss common Theravant. cash to share. the to the of diluted XX, $X September million or cash per or loss equivalents and million for loss of net of share At $X.X year $X.X as $X.XX XXXX, XXXX, XX, Net million of of compared the $X.XX as of payment acquisition from $X.X December was

to during current business growth expectations We for the $XX are line our implementing, top reflect enhance initiatives we range estimating million not estimates should in business revenue XXXX. on which $XX the growth to do million our be These and the conservatively year. strategic are the reflect

to and for would like open that, for Bob questions. I it up call With

Operator

Jeffrey [Operator you. Thalmann. coming is today from Ladenburg question Instructions] first Cohen Thank Our from

Your live. line now is

Jeffrey Cohen

you? How're Chris. and Bob morning, Good

Bob Moccia

Jeff. How're morning, you? Good

Jeffrey Cohen

guess, bit thoughts I on some top Congrats a that on side, this sales into know can Any And on or is think the equipment I I and guide, of XX% the X.X%, more conservative the line. of we midpoint year-over-year. is the little appears to commentary, kind related focus. firstly, which the jump

Bob Moccia

bit there Jeff. more but the is well, domestic in focused, a only sales market not Yes, little somewhat as internationally, equipment

working As Pharos with some of in they're the we into found model. the ex-owners, partner some -- out them of last in just getting not interested year

we've it always institutions. customers into sales done to we've well big So opened up as sold as, these as equipment to some of potential

number to the it. So that's for of a a part approach of guidance reasons. that took We conservative --

expansion on relying are There's particularly of a around approvals. international that lot initiatives, regulatory

drives the patients how that have opportunity. to to the We the be We materializes approval it's We of doctor's going with good. vitiligo office. OPZELURA. much that need into think see How

to coming we guidance a hopefully, gate, we it. we and on. that as approach want optimistic increase, we're But the the to can goes So our year out of take conservative believe

Jeffrey Cohen

assessment? I as be estimates, U.S. for got looks that ex accurate growth the far U.S. growth levels. it it. And like five tenfold 'XX as that off our to the would Is in

Bob Moccia

time more that, on One Jeff?

Jeffrey Cohen

of higher component rate revenues, that's far ex-U.S. going as the and times goes? what we're it your the as growth looks rate ex-U.S. On growth be from estimating to like multiple

Chris Lesovitz

into Going XXXX?

Jeffrey Cohen

off Yes, that...

Chris Lesovitz

finished be same it percentage still XX%. revenue mean, as we overall makeup of around probably think our Yes. will I around We XXXX. the

Jeffrey Cohen

alopecia And it. there with seeing could you for Got XTRAC Okay. that you are out treatments going briefly? talk alopecia about on Are specifically?

Bob Moccia

There indication. But certainly, can't few, is we mean, There on We've alopecia the for there, the be for and out it around used think, laser -- promote work something go studies small can at a I obviously, some off-label use. done some about. that. potential some and getting that we've are successfully. thought looked I

an certainly for us. it's So opportunity

Jeffrey Cohen

number can And as trends about of talk it. you and go number patient far adherence? recent Got and treatments cycles, any as sessions, compliance

Bob Moccia

been a talked think issue. issue into still is we I that year big you patient It's Once the the get about Yes. we XTRAC last faced an staffing. I with -- they vitiligo or was lot the in whether getting psoriasis. the we process we whole program, success depending treatment a severity -- the think high it's on disease, them mean for psoriasis, have the of rate through

you XX treatments. it's between and XX As know, somewhere

And which so program, placements. And the been getting defer coupon with generally getting helps of we're do that's had We've more have than lot just XX effective. TheraClear, a it's for started. success treatments. a vitiligo, of in We costs, some

with and expanding footprint Now usage even we're the more. placements those into driving our

about opportunity excited we're well. So that as

Jeffrey Cohen

numbers sense us, you about patients TheraClear regions, Okay. us up. and placements, And into then jump of you talk can typical cost? number treatment it for for you lastly give of brought a -- and Can

Bob Moccia

Yes.

our So behind we big here lot emphasis placements. we'll the a success reporting in year lot because in saw finished a force QX. quarter. We've a first of And in early numbers QX be XXXX with of XX But with it. we've had put really pickup And obviously, more the our here mainly sales May.

together. trying around was five started soft it traction really the launch. here As research, get first to you year, Typical We're But know, market is gain putting quarter. a lot plans last information, a really treatment to treatments. of the in it's

But to of $XXX across They on start per We've from it's the first average, which which to second What the dermatology $XXX say, come the some it's on see patient is as makes in or pricing after heard $XXX. the community major high I'd board, the we're is treatment, them patient but about as average, about the to cities. treatment. back. kind results the of hearing great, is

So the of five some $X,XXX, very is which is devices treatments considering other there. reasonable the of some other costs out for

Jeffrey Cohen

for taking Okay. questions. Thanks That's it. the

Bob Moccia

Jeff. Thanks

Operator

end Thank you. for We over back management to question-and-answer our closing further to comments. reached session. or I'd like floor the any the of turn

Bob Moccia

executing in We've fronts Thanks. year. Yes. today. joining excited us great you this throughout XXXX, for made we and Thank on multiple to continue progress are

we we those help condition. are year, over dermatologic to suffer the have with is better goal to the past them. serve Our who from advancements And equipped made

in the and to again. catching up We first XXXX a forward quarter. you successful look Thank

Operator

teleconference Thank you. That webcast. and does conclude today's

wonderful your We for disconnect today. your and you this time, a thank may line have day. at participation You

STRATA Skin Sciences (SSKN) 31 Mar 232022 Q4 Earnings call transcript