HORSHAM, PA — STRATA Skin Sciences, Inc. (NASDAQ: SSKN), a leading dermatology company, reported a decline in first-quarter revenue for 2024 but noted several positive signs of recovery stemming from its newly implemented strategic initiatives. Revenue fell 11% year-over-year to $6.8 million from $7.6 million, with global net recurring revenue also down by 10%. However, a slight decrease in gross domestic recurring billings indicates the early success of the company’s revised strategies.
The Montgomery County-based firm saw a reduction in operating expenses, down 14% year-over-year to $6.0 million, alongside adjustments in its device installation base as part of a broader asset realignment. This includes a slight decrease in XTRAC® devices and an increase in TheraClear®X devices, aimed at enhancing profitability and market response.
Dr. Dolev Rafaeli, President and CEO of STRATA, highlighted the significance of the smallest decline in year-over-year gross domestic recurring billings since the second quarter of 2022 as a sign that their new market strategies are beginning to bear fruit. “This performance points to signs of a trough in our domestic business,” Rafaeli commented, also noting a considerable reduction in cash burn and operating expenses compared to the previous year.
Rafaeli elaborated on the company’s focus on increasing the utilization and recurring revenue of XTRAC® devices through direct-to-consumer (DTC) marketing efforts and realigning resources away from underperforming accounts. Success in previous years with similar strategies boosts confidence in the current campaign’s potential impact.
Further, STRATA aims to expand its installed base and utilization of TheraClear®X devices in the acne treatment market, alongside leveraging renewed distribution agreements in China, Japan, and Korea to fuel international growth. These strategic moves underscore the company’s holistic approach to overcoming current challenges and achieving financial stability.
“If we can successfully execute on our multifaceted strategy, we believe we can reach breakeven and be cash flow positive,” Rafaeli concluded, expressing optimism about the future trajectory of STRATA Skin Sciences amidst its strategic overhaul.
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