Earnings call transcript Q1 2023

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Operator

Greetings. Welcome to the STRATA Skin Sciences First Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen only mode. A question-and-answer session will follow the formal presentation [Operator Instructions]. Please note this conference is being recorded.

will Chief Moccia, Financial call and Executive today's Lesovitz, Chris Officer. on be Chief Bob Officer; Joining Earlier today, STRATA ended March released financial results XXXX. for XX, the quarter A on is press copy website. company's available of the the release

events, statements to of upon estimates reliance I'd and results statements, risks the begin, safe relating pursuant forward-looking our you will that to Accordingly, forward-looking Before material laws, operating during the which All differ we call various meaning assumptions. like this materially within Reform to securities trends not these those our that involve remind management current actual cause Act These financial this make harbor uncertainties should to could are federal of you events statements or not made include based these forward-looking statements forward-looking Any Securities provisions of and statements. and facts results in do are the implied statements to expectations of historical those or including, undue without anticipated call of Litigation limitation, on that to or by relate Private future matters contained relate performance statements. statements. or future from XXXX. or predictions that performance place are

quarter any obligation, as time revise to forward-looking and for Form business, filings of today, with on XX, SEC only ended of For any law, please a broadcast as the projections measure non-GAAP Relations Factors of call report or list update ended uncertainties My on A domestic Web non-GAAP conference Web page earnings accurate refer of information, available of in except Investor company's is or this year contains accessible financial XXXX, which our and during measure whether comparable XX-K site public our XX, disclaims STRATA the description directly on financial our presentation, recurring otherwise. SEC's the December statements, This information sensitive refer the the Risk March the associated Also with gross www.strataskinsciences.com. fiscal by reconciliation or and the a most is financial risks to posted or of and section to GAAP future STRATA's the the which to first measure. financial this including events XXXX. at new site required XXXX. billings, live because is XX, annual we is release for the intention

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

Bob Moccia

for Thank you. you on call. thank And all today's joining us

eczema or to $X.X laser to our we on focus strategic ramp-up and our way quarter STRATA's group representing domestically. with is reached in our announce in the XXX-nanometer locations of partnerships excited making XXX acute our quarter capital meaningful XTRAC, used equipment excimer launch psoriasis, January. is are looking impact increasing One through When partner placements XXXX. has its vitiligo and flexibility since priorities, strongest treat at first practices. XTRAC, success official strong million, revenues placements. of broad first on first are focus to We quarter was post sales TheraClearX Contributing

penetrated to us year, units opportunity great and a place sell of into XXst remains practices There XX% we multiple this of States. accounts a have time. As United the for group March group in of at

vitiligo will created OPZELURA of opportunity XTRAC noise to we being treating capitalize by are approval the DTC expect vitiligo. practices to for dermatology in of on Additionally, into TV, of the drive vitiligo. see we seek advertising the on topical treatment the We treatment. patients and efficacy safety measuring this

terms to with date. our XTRAC We accounts device our this and sales the of of January remain placed X,XXX acne in to broadly first codes. alone, more XX treatment TheraClearX expectations As convert quarter launched over and we in officially TheraClearX, to have placements. track program. TheraClear devices has previously In sold on XX have mentioned, continues our XXXX, in force goal acquired users year, our our converted we partnership exceeded Pharos

this impact XXXX an ultimately on We expect to make revenues. to momentum continue

into the remainder past the teams' sales and year, of TheraClear the quarter and is focus XTRAC our the Over messaging. on

Our sales that practice ways with equipped sales Virtual the team and XTRAC TheraClearX. knowledge messaging advanced is we ensures and are the of products. events our to sell along two expanding with sales materials are training group the STRATA's events

participation training, we In industry addition our focus on to our conferences. in are sales advanced increasing

to For half conferences STRATA scientific are we connected great have for Conferences we plan the team have attending. allow way the to on the to attended remainder apprised efforts plan first stay of the engagement year. XX our us the continue scientific our offerings. we a on And conversely, with making We the already year, the community progress of or community. conferences throughout keep are of

month, signed front, On this an agreement we the international in India.

need plan Medical market STRATA for phototherapy believe and will for distribution vitiligo is the billion three believe We solutions. adults there for available no in laser Furthermore, and India's an be XX% leading XX with X.X from puberty India market a TheraClearX years is exclusive exploring STRATA is market of on excimer acne an into suffer age phototherapy recently is of as suffering distribution onset Our as agreement with a of there is vitiligo. we India Spectra treatments. X.X% we Medical great population continue there devices. a Spectra alone. currently for of in impact for from an solutions to treatments to VTRAC. medical entered the the is distributor make able year XTRAC, opportunities other of where dermatology India's of from India young of need estimate

this us a effective, to range an solution This dermatologic treatment partnership to population non-pharmaceutical provides an with offer opportunity of conditions.

begin the excimer begun providing approval, and covered XXXX. this expect have by the and expect excimer the receive be In insurance access in of treatments. insurance prominent receive we purchase We first by Israel, quarter XTRAC and the TheraClearX be laser. to Hospital, and facility treatments to is to would XTRAC approval Ichilov dermatology regulatory of in medical a to India later center hospitals for Once and busiest to we cash revenues mixture pay. XTRAC largest laser year first with most the two covered

We and recently. with we made progress pleased quarter the past most are the have over

starting achieve we impact We in of to the sales TheraClearX market, are to growth. model us are consistently has continued flexible the our realize with which allowed remain and to of we XTRAC, year-over-year continuing believe

call the With to will turn financials. Chris I that, now review to over

Chris Lesovitz

for first $X compared million quarter quarter as global XXXX. of $X.X you, $X.X in million were first of XXXX to million $X compared the the the recurring quarter were to revenues $X.X for recurring of were XX.X% in of first the the revenues Bob. Thank first a quarter compared million quarter first of first quarter Revenues XXXX. for of increase revenues revenues as the for XXXX. million, million as Global to $X.X Equipment

procedures to which in material higher for was the primarily product million XXXX. For first quarter revenues first profit dermatology equipment, dermatology $X.X to a The of million result Overall, change costs. recurring in domestic of was gross has margin sales XTRAC to profit for recurring gross of XXXX. or million compared quarter XX% a lower first million first the mix $X.X of of and gross of with in due the XXXX, revenues than billings the of were or compared quarter higher decrease as quarter non-GAAP $X the as XX% $X.X procedures

from expect Looking placements between on ahead, the and mix of in to some remainder the to quarterly system margins we based gross revenues recurring mid-XXs the XXXX be sales. throughout with equipment low fluctuation

work of primarily audit, quarter our driven of for the $X.X common and related the Operating million also of for expenses. million associated the year-end months expenses $X.XX as were million driven three XXXX. The engineering loss a for quarter $X scoping the increase Net net was and March Difficulty] compared million. to diluted valuation as million XX, was first ended by the XXXX. General share administrative with million $X.X expense from basic $X.X compared [Technical XXXX equivalents first The was expenses in increase legal loss and was projects. these to $X.X $X.X to XXXX by in per increased loss costs or including costs

the to our full for XXXX. Now year guidance turning

to in the million, to range representing expect growth. be year of to million $XX double revenues digit We $XX continue XXXX full

the in the with base in this QX quarters. pleased coming progress are made are We and strong upon building looking to forward

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

Operator

from [Operator Thalmann. line Instructions] question of first the Jeffrey And our Ladenburg comes with Cohen

Jeffrey Cohen

from So just a end. few questions our

underway And seeing? you the or or first read per you're So follow-up on into quarter. the marketplace new talk talk XX publications treatments out also, by patients driven there for Was any unit utilization any Looks that about that utilization? about you predominantly like patients any be could TheraClear, that in will trends and could seen? that's

Bob Moccia

originally exceeded XX. focused last had really placements on We of we set goal as quarter, TheraClear, we had a XX. what

TheraClear place a come also a a they with derm purchase. which So device, device practice, when we in codes, they

lot a of are in actually much of how stage the to out launch up. that that's to inventory some of X,XXX pull-through are -- early the So getting. see there codes It's kind built we're the

some Our goal build that. week, those is a to return give certainly yearly up time per basis. But think on patients to machines to try which a we us on to will to is nice that going enroll take two

Jeffrey Cohen

coding patient? treatment, the is per And not per

Bob Moccia

treatment, exactly. Per

Jeffrey Cohen

talk… you Can

Bob Moccia

patient. to four it's remember, you If per six treatments

Jeffrey Cohen

the will about -- bit or as Spectra, you for as agreement but was it use for both there Can run any well will it's sales little differently? be there? And talk platforms, upfront of devices both a will

Bob Moccia

already, doing them, very markets. market. well certainly number no sales and sales. being up will So of really equipment Spectra. as capital a partnering a are capital international about excited medical the anticipating upfront There they're companies equipment sold They known so a representing in other dermatology There won't code US to be been be we've was it in device with Indian we're

Jeffrey Cohen

low low the for And Chris, the balance margins XXs say you year? XXs of did on or

Chris Lesovitz

XXs.

Jeffrey Cohen

adding doing the other you've lastly, to or you're us as as about Bob, some as and equipment arrangements? your onto doing a platform been the work other markets and direct also then perhaps little distribution bit work as far M&A talk And of environment far on on any

Bob Moccia

Yes, hyperhidrosis, obviously, of actively opportunities, always and add products medical on looking to medical as warts, we primarily additional focused device you Acne, as it, TheraClear. as with both conditions. we've we're devices cancers, know, to been types those did skin bag, we call the

are potentially we focus to well adding continuing to and some products. So companies looked OTC talked as that in we've to as about

to complementary I capitalize typically acne about you wash on think us to have to a treated or a even dermatology walking I an an being they're they're it's or opportunity When with there's an what think out OTC if something and that doing. and we with that. already like something, whether we're talked prescription go or practice, patients moisturizer device, that, for

to continue portfolio. have And get other we So to near we done in companies. add future, something we can else can the something hopefully, our discussions with where new

Operator

of the And question-and-answer we I'll the And over back have remarks. call to for session. now reached closing turn Bob end Moccia the

Bob Moccia

we'd and we Again, We achievements to participating develop. like in today's look you. they on the forward you appreciate support, Thank as community all our call. continued updating thank your for to

Operator

And this participation. your today's your concludes time. you for lines disconnect may at and conference, this Thank you

STRATA Skin Sciences (SSKN) 15 May 232023 Q1 Earnings call transcript