HORSHAM, PA — STRATA Skin Sciences, Inc. (NASDAQ: SSKN) has released its financial results for the third quarter of 2024, reporting a revenue of $8.8 million, slightly down from $8.9 million in the same period last year. Despite this dip, the company saw a 2% increase in global net recurring revenue, totaling $5.4 million.
The company’s strategic focus on optimizing its XTRAC® system has yielded results, with revenue per domestic system rising by 2% year-over-year. Gross profit margins also improved, reaching 60.3%, up from 56% in the previous year, marking the third consecutive quarter of margin growth. This improvement supports STRATA’s efforts to stabilize its financial performance, reflected in its first non-GAAP operating profit since 2018.
Dr. Dolev Rafaeli, President and CEO of STRATA, highlighted that these financial metrics illustrate the company’s ongoing turnaround. “The 2% year-over-year increase in revenue per XTRAC® system in the third quarter of 2024 illustrates progress in the company’s turnaround,” said Dr. Rafaeli. “More importantly, gross margin as a percent of revenue continued to strengthen for the third consecutive quarter.”
Strategically, STRATA is realigning its assets by reducing its domestic XTRAC® installed base from 882 to 873 units, focusing on high-performing devices. Meanwhile, the company expanded its TheraClear®X device placements to 135, indicating strong adoption and effectiveness in acne treatment.
Recent corporate highlights include STRATA’s court victory against competitors over unfair marketing practices and the successful launch of the XTRAC Momentum® 1.0 device in Japan. Additionally, the company raised $2.1 million in a July direct offering, bolstering its financial flexibility.
Looking ahead, STRATA plans to continue enhancing its direct-to-consumer marketing strategy, already yielding over 1,900 new patient appointments in 2024. Dr. Rafaeli expressed optimism about the company’s future, stating, “This financing, along with continued improving operating and financial performance, should help lead us to profitability and sustainable cash flow generation.”
Despite reporting a net loss of $2.1 million for the quarter, STRATA remains focused on its growth and profitability goals, driven by strategic initiatives and operational improvements. As the company moves forward, it aims to capitalize on its strengthened financial position and market opportunities.
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