SSKN - Earnings call transcript Q4 2023 | STRATA Skin Sciences, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to the STRATA Skin Sciences Fourth Quarter 2020 Earnings Conference Call and Webcast. [Operator Instructions] A brief question and answer session will follow formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Rich Cockrell, STRATA Investor Relations. Thank you, Rich.

begin. may You

Rich Cockrell

released Good us operator. and and you XXXX. today, thank Year quarter for Thank December ended the morning, STRATA joining XX, we Earlier Call. for Earnings Quarter financial Skin for results XXXX the you, Conference everyone, our Sciences Full Fourth

You on company's can of website. release a press copy find the the

to uncertainties not we filings, differ that involve forward-looking available. statements. commit as include begin, call and company this may We and results actual I'd Before cause performance the materially. statements statements could encourage you becomes not which uncertainties. review to like guarantees does to SEC are forward-looking that information risks updating any risks future highlight these to and remind new everyone The of These

Dolev the the CEO; open we After provide an will on call, our Lesovitz, CFO. QX Dr. company's strategic for the discuss the floor have we performance Each Rafaeli, our today and outlook. overview will questions. Christopher and remarks, Now their of

And call ahead, over to to turn the with Go sir. Dolev. like that, I'd

Dolev Rafaeli

our and our and business of XXXX robust strategy, everyone. success, The Thank leadership of extract my the operation characterized on significant adjustments, my been and saw Rich, end in marks A innovation XXXX vision to leadership STRATA the a sale the by excellence. October growth afternoon, from model market for between XXXX it Reflecting CEO pivotal tenure of a as in during commitment good be evidenced and that strategic vital XXXX, it's to proving proven STRATA substantial and year, which product recurring strategic was our a that change has you, XXXX. for expense. evident previous direct-to-consumer year drives of reinvigorating strategic core at a return especially quarter to to element DTC our revenue

expanding from our product of positive domestically our and business innovation to on It launch in Central transformation VTRAC TheraClearX. flagship STRATA, the streamlining service. steering been has the operations flow was these the plan cash XTRAC, products, new and periods internationally, and that operations, towards sparking footprint, a and our focus the marks a through both

success of therapy TheraClearX our the system XXXX. year in of A of XX the model. was end, By we the key recurring of January introduction highlight acne devices under procedure placed year's

XXXX. increased During its recurring domestic innovate capability international devices installed XXXX, underlines to our to extract revenue team. efficiently XXX significantly and XX, also base market This and STRATA as of to expansion December respond

of we through we further growth through secure last our initiated financial conditions with step to took assets. continued alignment in with our to a of ensuring expansion treatments for and improved our vital crucial codes. broadly inclusion More essential dermatological projections insurance adjustment practices campaign operation growth an to CPT extend capital our have supporting the in Just needs enhance aligning facility business recently, month, and MidCap access is insurance of to patient future and current coverage company's the mission to Trust. and strategy future the important amendment our Financial with credit This

efforts our atopic advocate are testament our of well-being quality and our dermatitis. areata and This of for but is those of Initially, accessibility CTCL, vitiligo, for the increase the XTRAC to alopecia payer a multiple indications, to securing life the treatment, to treatment by not including concentrated for initiative affected on only conditions. coverage commitment also

to Leveraging of are process our to approved we not advocacy actively best are that the in with conditions opinion XTRAC approved in also of these such the forward but moving patient leader the enhance currently note community. groups database dermatology see key wide [indiscernible] patients, if with indications, targeted STRATA be access advocacy of the XTRAC use prominent we fleet. all I XXX,XXX commenced are over collaborating legislatures may and future. to

in laser revenue to DTC up XXXX, we the remain ramp focused continue key on we As model strategic executing priorities. our

we rationalize of leveraging and and This to XTRAC our our and stimulate capabilities and drive balance and demand. rebuild strengthening replacements are diligently patients the devices. TheraClearX utilization to both First foremost, sheet involves working DTC expand

patients offices, directly generating By revenue. bringing volumes we to high-margin can utilization, procedural increase device recurring incremental thereby physicians' and

operational of Let's from now And landscape Chris explain more pivot to I on financial our little then will Lesovitz. CFO, the the our side. bit Chris? a review

Christopher Lesovitz

Dolev. Thank you,

our dive the year for fourth XXXX. into quarter and financials Let's full

model, the the efforts year. our crucial these for A collaborating our roots. revenue maneuver to customers involves show revenues. company, full with approach XXXX. Breaking year now and total driving in was foundational million a we in offices to of decrease return which is total strategic a element of in revenue them. efforts This quarter from prior reflective and enhance confident are business, revenue will we is to recentering tangible doctors' A the our to our the the that are impact recurring form million the shifting utilization This decline within to rates $X.X start for XXXX. our the Our recurring down back to and $XX.X for

global year were recurring global million full for to for $XX.X XXXX. for year compared $XX.X full million as for full full were XXXX revenues $XX.X million recurring the Equipment year million revenues the year of XXXX. Our as XXXX the the to revenues compared $XX

long-term started an our of forward CPT being Looking on the TheraClearX profitability focus our system, launch is revenue reimbursement XXXX, revenue the which pivot TheraClearX on upon model has for and we mix. XTRAC. continuing emphasis recurring and to on This in strategic shape emphasis to recurring our the with building to are enhance sustainability designed

as particularly within half selling attention structure. we pleased we to part In refine XXXX. our the in This strategy I'm our implemented reductions return to XXXX. to our full and which marketing share sales expected previously operational XXXX, to structure broader steps come seen latter is efficiencies, in of our are to expenditures, areas. deliberate our and expense taking Turning leaner G&A and in of marketing that to fruition to a cost

nonproductive to not those reducing servicing, savings eliminate In costs we to materials. repurposing by above with accounts, addition also associated but the intend only cost the

G&A the accounting slight onetime in costs increase million, we On largely executive experienced team. transitions $XX.X front, to by and our within legal expenses driven and a have

and Our STRATA deeply devices, allowing strategic [indiscernible] plan for and XXXX optimize cost will us at utilization maximize line. improve efficiency bottom stance to a our of operational invest proactive adjustments the in innovation. and base, our reflect our in ultimately growth sustainable more competitive operates These

these by anticipated of is impact end of financial full the XXXX. changes The

$X.X mentioned in we our strategic impairment which recognition despite earnings Finally, are million goodwill confident in for a release, quarter, net the our loss the included direction.

equivalents restricted with Our a initiatives. XX, cash to strong December position with With $X.X cash year-end at and balance were XXXX, XXXX. sheet million our growth the to and solid cash $X.X compared at Cash remains million support well this products, believe or growing Financial, our revenues the from to positioned facility into of stronger sale with expense the combined XXXX. operating we MidCap and management position, use anticipated we continue are our amended credit

hand the priorities. to back now operational our outlook strategic and discuss I'll Dolev to call over

Dolev Rafaeli

Chris. you, Thank

vision the our remain the demand quarter, conclude our for we long-term market closely we As focused evolving operations STRATA. on aligning with and more fourth

for of DTC for This the quarter sustainable and approach and has the reinvigoration business a marketing profitability. setting stage foundational growth our been is an we model, in enhanced critical believe

in we highlights of inherent of valuable realignment business, towards close commitment opportunities elements our creating this the and particularly our are our physicians also support relationship journey strategic to strengths partner. in devices, robust infrastructure. but providers Our and pivotal the our not utilization care leveraging both clinical STRATA only our for health These with driving

Our acknowledge require DTC return this previous time foundation laid solid to patient towards to at provide driven provider manifest goal magnitude more improve every our core unparalleled marketing insurance success. is the fully provider margins touch support yet and financials. our to in in the generating a to focus has advocacy. to efforts, a It's approach of is that DTC patient's revenue direct a support centric strategy our process. foot. The The The support clinical historically that important benefits support the a approach substantial marks highlight device co-pay our of to proven and move significantly utilization, and the growth has recurring of providing the and patient DNA shifts

economic as patient driven their effect a both by driven DTC impact both of is a as the in advance facilitating metrics. to will well increasingly focus on we primary device utilizing anticipate The well patients. STRATA, provider streams. a remain strategy become strategic indirectly prescribing procedure. performance evident by to DTC our halo each on to recurring place. are the fosters directly we the approach shifts the The efficiency as represents appointment as enhance [indiscernible] maximizing patients own which cornerstone As these our coming quarters, the our of partnership in In revenue Usage

treatment. XTRAC a within a by interest past reminder, flow for direct result treatment. patient of and practices, the green ebb encapsulates of effect-free assets. XTRAC® revenue. Blue slide reflects appointments patient partner clinical the new all into As the insurance leads our generate showcases alternatives, This procedure our excimer [indiscernible] initial lowest is The in bars, the procedure. a side actual our and DTC marketing the in our received ready of all RDX targeted the patients the The and the benefits effective for the clinics needs The laser patients' chart marked highlights the marketing incremental charts of scheduled payer engagement campaigns. cost our influence punctuated translation of appointments

system, Florida, cost [indiscernible]. efforts areas is which generated the We've X Each have or our historical by historical As DTC ramping and in and City, fully validate to we driven these. per a which up or $XX selected on York around benefits provided started appointment, chart supporting our focused lead, and per realizing of cost in generates the we the in of Texas STRATA's in-clinic allows patient our these proprietary and $XX -- patients which is DTC provider RDX insurance geographic providers $XXX. New patients, tracking approximately to areas, patient whether XXXX,

patient overall X,XXX contributing and respectively patient new during reminder, chart. of a to and were able appointments, XX% As about the XXXX XXXX, we drive X,XXX

As and our is of patients underway. successful $X,XXX an patient newly more capture treatment, to of the clinic team and individual respectively, these value And to clinics these the as is critical. full $X,XXX are generated than appointments the of of course procedures into monitors in and the partner STRATA

XX DTC RDX charts. with baseline initiatives. our total of XX,XXX STRATA XXXX, reinstate DTC our underutilized, we and represent as numbers a XXX had For leads, These appointments

each continue best campaign measure measured device. of unit the started economics targeted device by The we'll as per second increase expanding best territories. XTRAC DTC is January of for -- Our we and revenue XXXX, an ramping is half up individual the in number the average

focus average core as the Prior saw in an clinics the was XTRAC average we to of in when XXXX increase devices and 'XX XXX of well XXXX, $X,XXX deployed partner each device. generated number significant on revenue pandemic, per quarter. as the per the growth DTC the In in

XXXX Post-pandemic, average returned while to for XXX to $XX in in per domestic its increasing a million to installed revenue sorry, marketing mostly its on was sales coupled reduction per base lack device quarter the of resulting in effect and in growth impressive of the DTC million XXXX. and the halo appointments companies DTC $X,XXX its XXXX device XX% marketing initiatives, expenses quarter cost. and the in over XXX initiative XX% driven -- from reducing $XX per business a direct-to-provider per associated approximately focus while has with resources The XX% from

foundation while the to rationalize revitalize up procedure in the device base average being driving expansion volumes, at device our installments. DTC revenue robust initiative boosting size the all lays the of per aim and to utilization able per quarter a The installed enhancing

focus devices into in insurance utilization. TheraClearX increasing patients, represents device integrating treatment. yet system This TheraClearX on shifts only The dermatology our in burden outcomes [indiscernible] the on potentially with and the where success already patient cash-paying pivot the but opportunity story network, substantial clinical clinical reduces to volume the thereby reimbursed also financial not improved a focusing promises clinics lies parallel patients, active the

resulting XXXX, all others we existing the have payer To patients has in insurance and the to a in processed across XX% fourth treatment our insurance individual hundred quarter the started several approach. country. team pre-authorizing Late adding date, benefits charts accounts and course for patient of transitioning providers of reimbursed

a patient with The $XXX CPT our devices STRATA rate devices robust revenue Medicare for reliable stream. of and $XXX owns private X,XXX and average TheraClearX new provider provide treatment STRATA we additional respectively. Internationally, expand approximately already XXX revenue incremental and as into XTRAC installed markets, each to base continues [indiscernible] and payers code over VTRAC of potential approximately is approximately payment and represents $X,XXX

as DTC strides of emphasize efforts to growth we model driving are In in efforts capitalize recommit the closing, anticipated the our on our -- our and XXXX installed the are and integral and experience the our we've base. strategy and expanded to to strategic patient The force made physician want mission improvements. enhancing behind margin I

commitment our value operational marketing and profitability elevate term. and to ahead, Looking STRATA's strategic shareholder near in the will excellence

your and with the confidence support for to navigating future you thank We look and clarity. forward

now Let's questions. Operator? floor for open the

Operator

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

Jeffrey Cohen

could the firstly, perhaps of falling currently of line. on are give planning sense you're a nonproductive talk And you there So what about how us accounts beneath percent accounts? defining nonproduction out

Dolev Rafaeli

going more Absolutely. I'll to if that, wish. you and add is on matrix, start with Chris

and already of was fourth third previous this So going the discussed not by initiative This into year. quarter management last new. is

this been how for device in business becomes expense several you've business every because this the years know almost most per now, revenue we fixed. metric you profitable, is as following important other probably how However, generate that much is

And So were for XXXX, initiatives of in up almost able range in that our to DTC average per per device per with quarter. was of we the to our in the per by of all end the $X,XXX device revenue $X,XXX XXXX. device push reference,

$XX,XXX represented about XXXX per So device.

installed XXXX in started pandemic Coming end devices. coming XXXX, a out installed were base the base companies the the the at we XXXX, for halves. we run beginning, by the offices at out other XXX the story base. X same back the extending In were businesses then end back starting and of the the the XXXX, pandemic of have or same company was but of year rate. of then of the The company coming business pandemic their almost same at up, In the other met installed into end and met

of XXXX So $XX,XXX XXX devices you by if per approximately at end look device whole, for the average device. the a as revenue per was XXXX

Now market, we forward devices the XXXX, to fast over have in XXX XXX.

for whole the However, year. the XX,XXX is about average

in again. be that's And building start existing that's them an revenue and of opportunity removing whole, devices how in device the gives using if you But the them generating look that is you this -- reliving much much installed one average, does is base, not expanding -- The to devices and instead of excess when generate. can $XX,XXX or new in every a at us this or generate as opportunity. excess of device threshold as these an that's contributing $XX,XXX, would The obviously either of not how devices on bottom line this metric target.

one be So existing the on the is hand target the and on to to base on the optimize utilization installed the base hand. installed going other increased

base strong very anticipate in either not the would way. installed I moves

expanding, If placed the than of XXX years, shrinking company or company's was in company you have, the XXX range or XXX. the the in placed we in we the look back years And the was into in past, the year XXX we've less disclosures XXX than devices. XXX. And removed to that every more

going complete stop as to be to be accounts going not reintroduce of somewhat devices shrinkage order of just DTC. but expansion, it's to we them in be the could productive So more place of the in -- that we with nonperforming it's

something? Chris, add do to you want

Christopher Lesovitz

there. think you pretty noted much I

for is here then actually goal the internally to Dolev warehouse Dermatology to excess the nonproductive and As main we out us offices. mentioned, get that redeploy use and inventory producing them these at

Unknown Executive

the movement balance Jeff, it's sheet. -- it's more within more a

accounts them productive or we to having PD&E, be the can other recreate into have away these them devices, move either and We're nonproductive into so So from devices new instead productive accounts, utilized that accounts. warehouse moving into additional already of them. into

Jeffrey Cohen

little recommended are Could talk the bit And treatments number about you of points over far alopecia data current studies or a any as as ongoing. duration? what's there what

Dolev Rafaeli

will clinical these make that question. treatment and other up or So used some data data. send where call of great follow that are this you conditions. I clinical indications have Alopecia extensive that the -- laser excimer and is the are sure after for to indications

these the inflicted alopecia -- conditions dermatitis clinicians is used treated about disease. psoriasis, was or have being been and are by treatment talking was autoimmune which being talking diseases. because areata, I loss CTCL, the and atopic I by clinicians treat from used These about the been has caused for to leukoderma. is patches Specifically, also are which And company's is them. conditions the perspective, autoimmune device FDA of of hair by they're XTRAC And labeling late off the treated the vitiligo, another

are over trying being we're gap. being to treated accepted paid However, payers. multiple actively cannot do commercial labeled. and by been that trying What these to conditions we're that's years are have not promote treated, is We and anything the bridge

the front. So FDA that's on

clinical actively can it. And of to it's in cannot if use we're with hard but it's promote so we We're And the us an we data, promoting providing very also payers the indication. negotiate for off-label the -- device.

solid paid very as approved Medicare track payers. these and well the conditions private as of the record have both we by However, being payers, by

Jeffrey Cohen

Next say, you as far talk well there, a Asia. and question, Am, as little in, out some as OUS the bit could as about Europe clusters Lat direct growth of

Dolev Rafaeli

markets take of always a other providers the in China, company, and as market in is companies. Japan, that the South markets of either procedure from So accepted market China, are South terms leading -- each in leading the South where been clusters Japan this, These in been are markets well we've in by users Japan our sense share markets the of aesthetically in driven. -- Korea covered in brand that the more biggest as using the as Asia, position this Middle Korea Korea, some accepted and other and different have in do have we insurance East. like -- the And insurance a been brand, by these we healthcare as

mostly where cash the [indiscernible] Saudi Healthcare So or like Insurance State driven Arabia companies pay China, East there. mostly it's and the Middle other

We represents of [indiscernible] markets doing We started [indiscernible] had components seen is devices. is parts sell we which these that other domestic of markets of maintain being laser broken as in We so going And north into seen these sell that components. the in accounts. the into consumables this and We've X into the and these device as sales And for market XX for sell revenue, XTRAC to years. and replacement it. them -- requires the new years. of have X,XXX years markets, and we've We excimer XX over into used devices devices new ago. is in where XX the equipment, existing X/X markets about north these this of we've lifespan well these -- of well the

but We the parts. for [Technical in does have it that devices years, XX, require been have XX Difficulty] market

their Korea mostly to without as and in devices in of And having to market the in annually move basing Asian allows away $X.X XXXX to to in commit the the that hundreds million the markets, -- third cost at we've introduced to the the of end on decided of but as in one maintaining about in therapy not and the is of by to [indiscernible] of of XXXX, extent as revenue, the that we Asian revenue true Japan. of component, This year. the from well because of having them, placement was which dollars placement on all started of is grew is the continue of users devices This something and China owned recurring thousands are for devices that, commit limitations which last markets

Jeffrey Cohen

XXXX. for a on lastly if you may, press us, little bit And I then

of wondering year. having therapy end no aspire And top So how the firstly, line. you devices at I'm to then secondly, bottom on guidance many the or

us. any You those can did that idea referring or you you mention Are to growth X% growth. provide, are XX% or growth? but for there

Dolev Rafaeli

company. a key is XXXX components with while maintaining in side of recurring gross me the I'll parse on side. recurring the other into mode question. second the start the initiative company The back to Let the the bring

been X non-U.S. an are is which stable. as said, the for very has components. I existing I many One the these So recurring years. market just spoke markets We've side about, And in and -- it's there growing

brand want We and and as are that on the a -- for the but don't efficient to us a customers very I say it's it's side. distributors as well transaction the leading very easy, for

was I was markets. And for the said, it as approximately this it see can in -- you million XXXX, mean in I XX-K, $X.X but these

you and the this component, therapy. upon second The touched is

owns about company have the devices. in So XXX terms acquired of

having made pursue XXXX target was cash physicians in and deployment insurance of them the is when that cash QX sheet. these reimbursement we've of going patients sits procedures, of have cash the we investment clinics in paying or PP&E the decided who collecting pivoted utilization balance without the changes end and the we paying getting prime the The instead to So to physicians, the devices flow of after are continuing towards target. where at main

the a private providers areas, of of as rate. rates, getting we're that, it's approval and some submitting paid of but on in call collect in to through are in through, I than first the these going that as what And I've about rate we we're back my payers can than insurance. see being we and in patients quarter in reimbursed? tracking patients we've the some and lower get nominal percentage clinics third We earnings patients, end get very the treating can this said is my cleared in they're get much several then a had the that. reimbursement I we it's procedure average, be the high to on to other procedure? had the on is get Medicare goal, can the use insurance? said remarks, is prepared And areas, as higher now hand, and November, As the we submitted and nonapproval can And that bottom clinics at the explained amount, now, on we for to average paying very $XXX, hundred remarks, looking that.

treated we what process of be we would on the end or happening As payments collected. anticipate of of X patients be number the usage as to first provide grow the having we actual the being hundreds growing now, are the per quarter, trends. guidance by And just we to in would what assume quarter, for revenue would stand code. being we we'll able anticipate the that recurring have the of license of and can will be to? the of device I of of to by say acceptance end size reimbursement I of the a the in the first year. seeing is And that And light

us done their that that that in on is to provide and of not in patients covered that there by of it's the with gives different will And is regions another co-pay. device, I and of number and that lot targets. payers technology for a we country large of can of that. was get insurance took of exposure and quantity there couple all the driving attention having very of disappointment their be company. in the now realization cash is confidence able One and at its targets QX, [indiscernible] out-of-pocket for guidance a from lot a also years market patients that the end explains pay is last revenue And technology, the device a inability the hope

did XTRAC, be. we the where want about I -- to On think the

could the of to by be a going we've meaningful outcome So device we over great the it's end $X,XXX, of we if of run be is to ended where the we going XXXX range rate. get $X,XXX the at $X,XXX. a per just fourth provide for And were XXXX in are the end this of which to because XXXX, upside quarter, is recurring --

the recurring as company a in has been Just quarters. the for for decline past several reminder, revenue the

to the able decline a would clients being [indiscernible] my success. a start and in get So be seeing to eyes, it then

Operator

[Operator from Lawrence line [indiscernible] with question Instructions] of Our comes the Jonathan next

Unknown Analyst

that business, how the on is both curious also as far just direct-to-consumer was in going I on XTRAC the TheraClearX. traction and as

previously leads. as changed this of doing the far spending has just if kind getting dollars the you saw were As what you it's when or anything and and

Dolev Rafaeli

you. out DTC, generated When XX% things beginning my remarks. the Thank spend point question. [indiscernible] off which I'll left for was range of Great said approximately the the STRATA spend I $X -- X,XXX of a the approximately prepared appointments DTC million of That's just of to through few patients in about clinic. the the into new were year $X which million. introduced XXXX was XXXX,

patient you the wish, if So the into XX% about company of subsidized the clinic. growth

the the have different the changed, cost And terms moved XXXX, of we online most the its company changed a of restart years these X by, getting would changed, has in, stopped have social it getting rules have of advertisement employments to direct-to-provider first the marketing, pharmaceutical available online solutions these towards are most step being DTC, we the then through media cost was to and reestablish era. media through gone in like because In in XXXX, are DTC. companies. doing where into promoted promoting on of leads resources back and in. going new By see And the important

see stand. wanted we where So to we

the anticipation half We range in in stable. I $XXX, happily X as in only mentioned remains DTC cost January range second territories And lead appointment see of our to per started my with $XX the our per results. we in we doing of remarks, that surprised in terms XXXX stand see of of cost in to in were where the

of will territories, seeing into more growing which quarter and as expanded scheduled to clinics. I provide a be leads, being happy appointments to additional we're a first the details since have of We number growing number

range treated the results appointment the takes in DTC And procedure see into from in then campaign getting months first of The treatment the because X codes it and that, that happens. by and we there of time should the of prescribed the and starts the [indiscernible] the X we of to time coming see schedule, patient is appointment way. is then our the

able we of QX, in in say end as would we've many also we position so a we at end at spent QX. I conference XXXX. I the [indiscernible] generated to to the end QX as will be QX lead of I spent at in to of cost through in -- cost of in the levels provided the had to to my position baseline, with to will would confident be appointments follow end like the of people the And appointment, But per I or subsequent XXXX as able a in of this and that XXXX, into like be a be that efforts of QX through progress XXXX. the as per am remarks, and We much success say then calls, that expand these initiative. that we the

Operator

questions turn the Rafaeli There Dr. over would are closing at I like no floor for back to time. comments. further this to

Dolev Rafaeli

would thank call. for everyone to up I showing our for like earnings

the back be to will the Thank We much. further provide at you end very of updates. quarter first

Operator

concludes This teleconference. today's

you your You may disconnect participation. time. for Thank your at lines this

STRATA Skin Sciences (SSKN) 27 Mar 242023 Q4 Earnings call transcript