HORSHAM, PA — STRATA Skin Sciences, Inc. (NASDAQ: SSKN) announced its financial results for the fourth quarter and full-year 2024, showcasing notable strides in revenue growth, operational efficiency, and international market expansion. The dermatology-focused medical technology company reported a 10% year-over-year increase in fourth-quarter revenue to $9.6 million, reflecting its focused execution on key strategic initiatives.
“2024 was a year of execution for STRATA,” said Dr. Dolev Rafaeli, President and CEO of the company. “Our fourth quarter results highlight the success we are having in implementing our strategy to shift our existing installed base from underperforming centers to more productive ones while utilizing our DTC and service model to help our customers succeed.”
Key Financial Highlights
- Fourth-quarter revenue reached $9.6 million, up from $8.7 million in Q4 2023.
- Global recurring revenue for Q4 increased to $5.8 million, with international growth of 13%.
- Equipment revenue surged 23% to $3.8 million, the highest level in two years.
- Full-year 2024 revenue totaled $33.6 million, a slight increase from $33.4 million in 2023, with Equipment revenue offsetting a 2% decline in Recurring revenue.
- Gross margin improved significantly, reaching 60.1% in Q4 compared to 55.3% in the year-ago quarter.
STRATA also reported operational improvements, including an 8.5% reduction in operating expenses for the full year, achieved through streamlined sales and marketing spend and efficiencies introduced in its revenue model.
International Growth and Strategic Initiatives
International markets emerged as a key driver of growth. Equipment revenue in international markets climbed by 45% year-over-year in Q4, supported by renewed distributor agreements in China and Japan and the introduction of the XTRAC Momentum™ 1.0 device in Japan. Dr. Rafaeli highlighted the company’s international momentum, stating, “During the fourth quarter, international sales increased to $4.1 million, representing a sequential increase of 27% over the prior quarter and 41% over the prior year period.”
STRATA’s strategy to refurbish underperforming devices and redeploy them in high-performing centers also proved successful, driving a 6% year-over-year increase in average domestic XTRAC® revenue per system in Q4.
Operational Updates and Legal Milestones
The company emphasized its focus on operational efficiency, including a 67% reduction in capital expenditure for 2024, preserving cash for strategic priorities. STRATA also raised $1.9 million in net proceeds through a registered direct offering in mid-2024.
Additionally, STRATA achieved a significant legal outcome in its unfair competition case against LaserOptek. A court order issued in November barred the competitor from making certain misleading claims, and STRATA continues to pursue enforcement measures.
Looking ahead, STRATA aims to build on the strategic gains made in 2024. “Our fourth-quarter results and operational improvements set the foundation for sustained growth as we advance our vision to deliver innovative skin science solutions globally,” concluded Dr. Rafaeli.
With its focus on optimizing its core operations and expanding its global footprint, STRATA Skin Sciences is poised for continued execution and growth in 2025.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.