15-05-2025
Strata Skin Sciences Inc (SSKN) Q1 2025 Earnings Call Highlights: Growth in Device Utilization ...
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Strata Skin Sciences Inc (NASDAQ:SSKN) reported a fourth consecutive quarter of year-over-year growth in average net recurring revenue per device in the US.
The Elevate 360 consulting program has shown dramatic increases in device utilization within participating clinics.
International sales achieved a strong quarter with $2.5 million in revenue, up 8% from the previous year.
The company has successfully expanded its direct-to-consumer marketing efforts, resulting in increased patient appointments and higher device utilization.
Gross margin improved to 53.5% in Q1 2025 from 45.6% in Q1 2024, driven by efficiency gains and the absence of a one-time inventory write-off.
Total revenue for Q1 2025 was only up 1% compared to Q1 2024, indicating slow growth.
The company faces potential negative impacts from tariffs on international sales, which could affect future revenue.
Global recurring revenue for Q1 2025 was flat, only increasing by 1% compared to the prior year.
The domestic recurring billing experienced headwinds due to changes in reimbursement rates and challenges in broader indication coverage.
The Elevate 360 program requires significant time and resources from sales and clinical staff, limiting its rapid expansion.
Warning! GuruFocus has detected 5 Warning Signs with SSKN.
Q: Could you discuss the pipeline and numbers for Theraclear placements and any learnings from the marketplace? A: Our install base is growing, with about 250 devices owned and 160 deployed. We've seen a 138% increase in patients going through our reimbursement support team compared to Q1 2024. We aim for full deployment of our install base by the end of 2025 or early 2026. Each patient is valued at $50 to $60 per treatment, with six treatments per patient. Once our current CapEx is fully utilized, we plan to increase CapEx investment. (Gleb, Unidentified_6)
Q: Can you elaborate on utilization trends and the time it takes for an account to mature for Theraclear? A: One patient is worth approximately $300, with a break-even point for Theraclear at about $9,000 per year. This translates to roughly 50 procedures per quarter or 200 per year. In Q1, we had 1,000 patients, equating to 6,000 procedures, or 24,000 annually. (Gleb, Unidentified_6)
Q: Is there any potential tariff impact on your domestic business? A: Our supply chain is minimally impacted by tariffs as we manufacture and source most materials locally. However, tariffs affect our international business, particularly in Asia, impacting new sales and service support due to increased costs for parts. (Gleb, Unidentified_6)
Q: The install base for Eximer devices seems flat. Is the focus now on increasing utilization, or will you also sign new clinics? A: We plan to expand while continuing to remove non-performing accounts. Our Elevate 360 program helps clinics realize their potential, leading to increased productivity and redeployment of devices. We aim to grow both the install base and utilization. (Gleb, Unidentified_6)
Q: How many clinics in your install base could benefit from the Elevate 360 program? A: We have 25 territory managers, each managing about 35-37 accounts. Currently, 100 accounts are part of Elevate 360, representing a 10% penetration. The program requires significant consulting work, but we plan to expand it further. (Gleb, Unidentified_6)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
