SSKN - Earnings call transcript Q3 2024 | STRATA Skin Sciences, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Good afternoon, and welcome to the STRATA Skin Sciences, Inc.

Third Quarter 2024 Financial Results and Corporate Update Conference Call. [Operator Instructions] Participants of this call are advised that the audio of this conference call is being broadcast live over the Internet and is also being recorded for playback purposes. A webcast replay of the call will be available approximately 1 hour at the end of the call through May 13, 2025.

to IR, call firm. the like Delahoussaye, to now Core of company's would turn over the Joey I Investor Relations go ahead. Please

Joey Delahoussaye

today's of results company's under for Thank for quarter on ended afternoon, and the afternoon, XXXX. the release press conference A the can XX, in found copy a financial you. www.strataskinsciences.com this press call. Investors website its thank released at September tab. Earlier that Good participating you be

management call Vice earnings Dr. from today's team on Sciences Officer; Gillings, are Rafaeli, Skin John me President Executive Chief Joining Dolev STRATA Finance. and of

call, forward-looking address future that will this During expectations or performance management be statements, including for Sciences' Skin making statements results. operational STRATA

statements. risks that other factors involve results may statements to and from actual Forward-looking those cause differ materially

please on the release Form the and filed cautionary statements For the Skin SEC Skin these to and STRATA in reports press call, information risk XX-K report most at described about recently annual STRATA company's the with Sciences' this risks, refer particularly subsequent periodic filed factors more Sciences obligation revise The reflect contains or law, is of publicly circumstances time-sensitive as occur only XXXX. information November this it. disclaims content or and call XX, accurate Scientists any as Skin call. update today, required after of STRATA any Except by information that in to this that events

to Dolev Rafaeli. Dr. CEO, now is over turn pleasure my call It the to

Dolev Rafaeli

you, for Joey, call. on Thank and afternoon good the everyone

versus XXXX versus in of to fiscal and improved. the year-over-year quarter decline seen continued metrics corporate third seen encouraging the ]. [indiscernible] stabilized as during over XX% quarter fiscal the demonstrated XTRAC second growth revenue grew Revenue [ have show in results XXXX begun and in progress several the Our flat turnaround per and X% our

quarter consecutive reached quarter gross Our in second third the in of third quarter for as improved XX.X% versus XXXX. and of the a percentage the revenue XX% margin

for New Our tax York of operating to XXXX. a to million $X.X audit state the accrual expenses years onetime sales related include XXXX a

the from these million of decreased operating item, $X.X to stable XXXX to trends XXXX, of when XXXX. down million positive onetime first quarter $X.X profit QX the our since from and operating non-GAAP revenue, when XXXX Collectively, of $X.X with Excluding climbed second in down the year-over-year expenses contributed in million onetime in excluding QX and accrual.

DTC and X,XXX appointments Direct fiscal see just disruptive over industry. we our strategy, a visits in promising Consumer all Year-to-date, to X,XXX XXXX XXXX. in in segment. all DTC the of the of turnaround or through appointments versus this initiatives our of COVID-XX before patient also continue efforts element to across remain scheduled have results X we central scheduled pandemic the surpassed We've care health new

geographic extend language focus We our using have launched with now DTC effort. Spanish DTC continue to and

the decreased XTRAC removing of at end quarter slightly base trend devices the installed to domestic units XXX strategy QX. unit XXX clinics of units this dermatology of second Our is end the at with from from our consistent year and underperforming [indiscernible]. This to

XXXX. XTRAC revenue since of average device per quarter was highest the quarter figure third the end The

year-over-year -- the and and year-over-year single-digit of XX% first quarter. the second in X% year-over-year of respectively. in of a XX% third billings quarter recurring low quarter down versus XXXX, second compared a X% decline of favorably domestic in decline in Now X% were decline These year-over-year versus declines third to to and quarter the compare the

quarter, of I'm for active helping these happy We year-over-year devices the assisting that to the reimbursed the us with positive way the we TheraClearX devices. is from metrics up on at an installed TheraClearX devices with on towards XXX In are goal. Obviously, the adoption year-to-date, basis, our X,XXX at over the to goal secured base and efforts noncash focused with second reach strategic place. patients our of at believe insurance partner that turn quarter. reached acne end preauthorizations the of report paving we third a we billing have end the of for XXXX, treatment XXX

as continue the study recent for such published the in at Cosmetic and Las the of TheraClearX Conference such XXXX Dermatology July conferences, favorable improved report XX, with results highlight XXXX for Laser and Vegas. to devices. treatment also Clinical Journal KOLs in Additionally, dermatology acne as Doctors outcomes therapy most results

[indiscernible]. last we continued from So acne about are this optimistic growth treatment

In had position participation July of $X.X million with XXXX, our from strong equity raised existing and insiders. cash we that both bolstered shareholders

to their books our our that stronger merits excimer corporate execution competitor. profitability technical filed path the sales sheet, partial and this but actions. week, release in potential misrepresenting and to a positive to strategy misrepresenting laser earlier against published the with balance XX CPT of see such ]. outcome for we compared The are defendant flow existing basis our our clear potential was a litigation excimer press cash which of we've a In and Given in complaint as sustainable codes and our XTRAC generation, we announced claim improved of was efforts reimbursement objectives a the customers [ used device device their a lasers

the Eastern District efforts. prevents their On metal material order entered Pennsylvania from court District X, the sales these of XXXX, United of November Court States competitor making in a presentations that the

use defendants Additionally, an their patients our damages and from STRATA technical reimbursement STRATA, dermatology in clinic presentation defend reimbursement is efficacy we of for pursue that efforts. to vigorously the from false, providers CPT risk claims will put monetary partners and tactics It that continue and accounts. of important unethical [indiscernible] [indiscernible] at

financial turn call in will results over like detail. John? our I'd John, to review the more who Now to

John Gillings

Dolev. Thanks,

$X.X a quarter Global the third million the XXXX. $X.X the XXXX was $X.X for versus third of total in X%. versus revenue of third million Our of was recurring for net of third $X.X of revenue XXXX million XXXX, quarter the quarter million quarter decline in

third recurring from of million down the the XXXX. in of million $X.X months were XXXX, domestic XTRAC of GAAP quarter revenue XTRAC of million in Excluding both third $X.X of $X.X equipment quarter million XX, the sales of was gross $X.X XXXX majority million XXXX. third quarter revenue XXXX, third quarter VTRAC versus adjustments, XXXX. the period billings deferred devices ended million $X.X billings X% Equipment in to September increased the the in in $X from International and of profit during comprised X periods. in Gross and same in the other

Total As September for a previously, as onetime versus $X.X of XX% compared X revenue, million months the XXXX XXXX. ended in were gross mentioned expenses in accrual XX.X% for of XX, profit percent the XXXX, were $X.X million. the operating $X quarter was in the expenses reduction. for third same Adjusting quarter operating period X% XXXX, to of million third the Dolev the a

requested the to Appeal audit. in to [indiscernible] of Before motion State want our more frame. in York's Appeals of Court an close initially third XX case. tax overturned matter favorable we Court this New a the quarter relates October bringing the little lung to of the appeal, after which then XXXX was I period line unsigned to York the State year offer under the New moving York decision, on to accrual. The audit one the color in received on, a accrued the that $X.X Appeals sales we a covering time New of We a On of for by Tribunal, state denied to million XXXX which the that

cost equivalents legal Our The related initiatives cash supports of cash, includes XXXX, of $X.X unfavorable growth $X.X XX, with facility decision. of our tax at majority cover million with restricted structure. of restricted the cash Financial and leaner cost and our This position million September total cash credit balance million sales accrual. cash will to along the the the MidCap $X.X

can XXXX, that given we believe strategic current execute to our our position. for continue on We financial goals

As and company outstanding. had of September XXXX, XX, X,XXX,XXX shares common the

in million the path plan, and including XXX,XXX we illustrates third sale profitability. this the strategic participation insiders through STRATA's these the of quarter, to have insider shares, During in to that ability gross proceeds execute raised financing in conviction $X.X

the remaining remarks, comments. like for That concludes turn my to any prepared to back and call I'd Dolev

Dolev Rafaeli

far early with strategic of solid We out laid that of quarter at financial strategies remain led beginning John. to the our performance. -- execution the to to XXXX committed you, Consistent points that in XXXX signs stabilization Thank in the our growth. performance some thus offers to a are third drive a and helping

the over the to call that begin operator the to turn I'd can Operator? like session. so we Now question-and-answer

Operator

for Dolev Rafaeli [Operator the like back please question. any Instructions] session. One moment closing to to question-and-answer over our the remarks. concludes turn I'd for first conference This

Dolev Rafaeli

in March we our year-end have want I to your interest for XXXX. in quarterly you, a participating conference XXXX Thank STRATA forward when of We good for call you today's progress Sciences. call all our on our likely next look results in financial and report sharing Skin and to of thank day.

Operator

concluded. now presentation. you Thank attending has for today's conference The

may You disconnect. now

STRATA Skin Sciences (SSKN) 13 Nov 242024 Q3 Earnings call transcript