STRATA Skin Sciences Pre-Announces Second Quarter 2024 Financial Results

Rhea-AI Summary

STRATA Skin Sciences pre-announced its Q2 2024 financial results, estimating total revenue between $8.0 million and $8.4 million.

The company's domestic installed base of XTRAC® devices decreased from 907 to 881 units, while TheraClear®X devices saw growth, increasing from 104 to 117 units.

As of the end of Q2 2024, STRATA's cash, cash equivalents, and restricted cash totaled $6.8 million.

CEO Dr. Dolev Rafaeli highlighted strategic efforts in device deployment and direct-to-consumer activities to enhance patient awareness and clinic visits. Additionally, media coverage of the TheraClear®X device is expected to boost market awareness of their dermatology solutions.

Full financial results are expected to be reported on August 14, 2024.

Positive

• Estimated Q2 2024 revenue between $8.0 million and $8.4 million.
• Growth in the domestic installed base of TheraClear®X devices from 104 to 117 units.
• Cash, cash equivalents, and restricted cash of $6.8 million.
• Strategic initiatives to drive device utilization and direct-to-consumer activities.
• Increased media coverage potentially enhancing market awareness.

Negative

• Decline in the domestic installed base of XTRAC® devices from 907 to 881 units.

Financial Analyst

STRATA Skin Sciences, Inc. has pre-announced its preliminary financial results for Q2 2024, indicating a total revenue range of $8 million - $8.4 million. This represents a critical data point for evaluating the company’s financial health.

Key metrics like the decline in the installed base of XTRAC® devices and the growth in TheraClear®X devices provide insights into the company’s strategic realignment. The removal of underperforming XTRAC® accounts suggests a move towards efficiency, which is essential for long-term profitability. However, investors should consider the potential short-term revenue impact due to this reduction.

Cash reserves are also notable at $6.8 million, reflecting the company’s liquidity position. Maintaining adequate cash is critical for operational stability and funding future growth initiatives.

Investors should monitor the full financial results in August for a comprehensive understanding. The preliminary figures are subject to revision and any significant discrepancies could affect stock valuations and investor sentiment.

Market Research Analyst

The pre-announced financial results shed light on STRATA’s market positioning and product strategy. The growth in the domestic installed base of TheraClear®X devices from 104 to 117 suggests a strengthening foothold in the acne treatment market. This is reinforced by media mentions, which can enhance brand recognition and drive patient visits.

However, the focus on DTC activities emphasizes the importance of marketing in this competitive landscape. Enhanced patient awareness efforts are likely important for sustained revenue growth. The company’s strategic focus on growing device utilization and patient outreach is promising but requires continuous investment and effective execution.

Comparing industry norms, the shift from XTRAC® to TheraClear®X aligns with market trends where innovation and efficacy drive product adoption. This strategic pivot hints at a company adjusting to market demands, which could be beneficial in the long run.

HORSHAM, Penn., July 11, 2024 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (“STRATA” or the “Company”) (NASDAQ: SSKN), a medical technology company dedicated to developing, commercializing, and marketing innovative products for the treatment of dermatologic conditions, announces preliminary total revenue in the range of $8.0 million - $8.4 million for the second quarter of 2024. Consistent with the Company’s stated plans of realigning its devices and removing them from underperforming account, the domestic installed base of XTRAC^® devices declined from 907 at the end of the first quarter of 2024 to 881 at the end of the second quarter of 2024. The domestic installed base of TheraClear^®X devices continued to grow, rising from 104 at the end of the first quarter of 2024 to 117 at the end of the second quarter of 2024. Cash, cash equivalents, and restricted cash totaled $6.8 million at the end of the second quarter of 2024.

“We continue to take strategic steps to grow our business through efficient deployment of our devices to drive utilization and through an increase in our direct to consumer, or DTC, activities to drive patient awareness and visits to our partnered clinics. Progress was made on these initiatives in the second quarter, and they remain a cornerstone of our strategic focus,” commented STRATA’s President and CEO Dr. Dolev Rafaeli. “Further, there is reason to believe that there is increasing traction in the market, a cause for continued optimism. Recently, our TheraClear^®X device was mentioned in a California-based news broadcast that highlighted our previously announced study for acne treatment. We are optimistic that, combined with our other DTC efforts, these types of media opportunities are generating wider awareness in the market of our dermatology solutions, potentially contributing to the increases in treatment procedures.”

The preliminary, unaudited results described in this press release are estimates and are subject to revision until the Company reports its full financial results for the quarter ended June 30, 2024, which is anticipated to be on August 14, 2024.

About STRATA Skin Sciences
STRATA Skin Sciences is a medical technology company dedicated to developing, commercializing, and marketing innovative products for the in-office treatment of various dermatologic conditions, such as psoriasis, vitiligo, and acne. Its products include the XTRAC^® excimer laser, VTRAC^® lamp systems, and the TheraClear^®X Acne Therapy System.

STRATA is proud to offer these exciting technologies in the U.S. through its unique Partnership Program. STRATA’s popular partnership approach includes a fee per treatment cost structure (versus an equipment purchase), installation and use of the device, on-site training for practice personnel, service and maintenance of the equipment, dedicated account and customer service associates, and co-op advertising support to help raise awareness and promote the program within the practice.

Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, the Company’s ability to launch and sell products recently acquired or to be developed in the future, the Company’s ability to develop social media marketing campaigns, direct to consumer marketing campaigns, and the Company’s ability to build a leading franchise in dermatology and aesthetics, are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory, adverse market conditions labor supply shortages, or supply chain interruptions resulting from fiscal, political factors, international conflicts, responses, or conditions affecting the Company, the medical device industry and our customers and patients in general, as well as more specific risks and uncertainties set forth in the Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties, any or all these forward-looking statements may prove to be incorrect or unreliable. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not undertake any obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release. The Company urges investors to carefully review its SEC disclosures available at www.sec.gov and www.strataskinsciences.com.

Investor Contact:
CORE IR
516-222-2560
IR@strataskin.com

FAQ

What is the preliminary revenue reported by STRATA Skin Sciences for Q2 2024?

STRATA Skin Sciences reported preliminary Q2 2024 revenue between $8.0 million and $8.4 million.

How did the domestic installed base of XTRAC® devices change in Q2 2024?

The domestic installed base of XTRAC® devices declined from 907 units at the end of Q1 2024 to 881 units at the end of Q2 2024.

What was the change in the domestic installed base of TheraClear®X devices for Q2 2024?

The domestic installed base of TheraClear®X devices increased from 104 units at the end of Q1 2024 to 117 units at the end of Q2 2024.

What were STRATA Skin Sciences' cash holdings at the end of Q2 2024?

At the end of Q2 2024, STRATA Skin Sciences held $6.8 million in cash, cash equivalents, and restricted cash.

When will STRATA Skin Sciences report its full financial results for Q2 2024?

STRATA Skin Sciences is expected to report its full financial results for Q2 2024 on August 14, 2024.

What strategic actions did STRATA Skin Sciences take in Q2 2024?

STRATA Skin Sciences focused on strategic deployment of devices and increased direct-to-consumer activities to drive patient awareness and visits to partnered clinics.