HORSHAM, PA — STRATA Skin Sciences, Inc. (NASDAQ: SSKN) has announced its financial results for the quarter ended June 30, 2024, along with notable corporate updates.
Revenue for the second quarter of 2024 reached $8.4 million, marking a 2% year-over-year increase from $8.3 million in the same period last year. Global net recurring revenue was slightly down by 2% to $5.3 million, influenced by deferred billings. Gross domestic XTRAC® recurring billings also saw a decline to $4.7 million compared to $5.1 million in Q2 2023.
Operating expenses were reduced by 14% year-over-year, down to $5.4 million from $6.3 million. This reduction is part of the company’s strategic efforts to optimize operational efficiency.
Dr. Dolev Rafaeli, President and CEO of STRATA, commented on the financial performance: “During the second quarter of 2024, we continued to make financial and strategic progress. Revenue grew 2% year-over-year to $8.4M, gross margins improved from 52.3% a year ago to 58.5%, and our cost control measures helped reduce total operating expenses by 14% year-over-year, or approximately $900,000.”
The domestic installed base of XTRAC® devices decreased to 882 units by the end of June 2024 from 907 units at the end of March 2024. This reduction aligns with the company’s strategy to remove underperforming accounts. Conversely, the domestic installed base of TheraClear®X devices increased to 117 units from 104 units over the same period.
In recent corporate highlights, STRATA closed a registered direct offering on July 23, 2024, raising $2.1 million in gross proceeds. Additionally, the company received approval for the XTRAC Momentum™ 1.0 device in Japan and will commence its commercial rollout through its Japanese partner, JMEC Co., Ltd.
STRATA also reported positive clinical study results for its TheraClear®X Acne Therapy System. Studies published in reputable journals highlighted the system’s effectiveness in reducing acne lesions and improving skin texture and pore size, demonstrating its safety and tolerability across all skin types.
Dr. Rafaeli added, “Our strategic efforts to optimize our installed base of devices also continues, with the ultimate goal of increasing the utilization of our devices. Quite simply, if a dermatology practice has one of our devices installed but is not using it, then we prefer to remove that device and find a practice that will be more active in performing multiple daily procedures with it.”
Financially, STRATA’s net loss for the second quarter was significantly reduced to $0.1 million from $3.1 million in the same quarter last year. The company’s cash and cash equivalents stood at $6.8 million as of June 30, 2024.
Looking ahead, STRATA plans to continue ramping up its direct-to-consumer (DTC) marketing efforts, with positive early signs indicating successful outcomes. The company remains focused on increasing device utilization and expanding its market presence.
“We look forward to continued progress with our turnaround with an eye towards profitability and positive cash flow,” concluded Dr. Rafaeli.
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