HORSHAM, PA — STRATA Skin Sciences, Inc. (NASDAQ: SSKN) recently made public its financial results for 2023’s fourth quarter and the entire year.
Financial figures speak volumes about the company’s trajectory. In the last quarter of 2023, STRATA reported revenues of $8.7 million, with recurring global revenue at $5.6 million. The company achieved commendable results for the full-year 2023, boasting a $33.4 million revenue and sizeable global recurring revenue of $21.5 million.
Keeping up with its tradition of innovation, STRATA added 923 XTRAC® devices, known for their cutting-edge dermatological applications, to its domestic arsenal by the end of 2023. This milestone manifests the company’s relentless approach towards market growth and customer satisfaction.
STRATA substantiated its utilities in the clinical dermatology realm, launching its novel TheraClear®X Acne Therapy System in 2023 and implementing a recurring revenue model to enhance value. By the end of 2023, 92 of these revolutionary devices were already operational.
Showing concurrent signs of corporate evolution, STRATA appointed Dr. Dolev Rafaeli as Vice-Chairman, President, and CEO in October 2023, aiming to infuse new vision and vigor. He instituted a strategic revenue model that relies heavily on recurring revenue from a Direct-to-Consumer approach, providing value-added services to partner clinics.
Optimization of the sales and marketing department, completed in July 2023, led to notable reductions in related expenditures. Expert predictions anticipate realizing the full benefits of this decision in 2024.
To align with future business projections and meet operational and capital needs, STRATA revised its credit facility with MidCap Financial Trust, refining its financial structure to better suit growth plans. Additionally, the company launched an outreach initiative to expand the use of current procedural terminology (“CPT”) codes, which will enable higher reimbursement rates for providers while increasing patient accessibility to advanced treatments.
STRATA proudly displayed TheraClear®X and XTRAC® products at the Maui Derm 2024 event, showcasing the TheraClear®X’s effectiveness in reducing acne lesions by over 50% within 1-2 weeks—a promising leap in dermatological treatment.
Despite facing a challenging year, the financial figures reflect the company’s resilience. There was a decline in the fourth quarter 2023 revenues to $8.7 million, compared to $10.6 million the previous year. Moreover, the net loss for the full year 2023 was significantly higher, primarily due to a goodwill impairment of $2.3 million in the dermatology recurring procedures segment. Nevertheless, STRATA remains optimistic, citing reduced selling and marketing costs, and an increased patient base, as reasons for confidence.
STRATA has maintained a consistent focus on promoting the use of its XTRAC® and TheraClear®X systems, expanding into new territories, and leveraging patient-focused marketing to heighten awareness and adoption of its groundbreaking treatments.
Led by Dr. Rafaeli, STRATA believes the steps taken in 2023 will help them improve operating results, deliver enhanced shareholder value, and continue advancing their mission to be at the forefront of skin health innovation. With their sights set on an exciting future, STRATA continues to play a significant role in dermatological solutions, helping millions to battle skin woes.
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