STRATA Skin Sciences(SSKN) - 2022 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenues for Q4 2022 were $10.6 million, a 17% increase over Q4 2021 and a 13% increase over Q3 2022 [19] - For the full year 2022, revenues were $36.2 million, a 20.6% increase over 2021 [54] - Net loss for Q4 2022 was $160,000 or a loss of $0.05 per share, compared to a net loss of $849,000 in Q4 2021 [43] - Total operating expenses in 2022 were $26.4 million, an increase of 8.9% compared to $24.3 million in 2021 [23] Business Line Data and Key Metrics Changes - Equipment revenues for Q4 2022 were $4.1 million, a 72% increase compared to $2.3 million in Q4 2021 [20] - Recurring revenues in Q4 2022 were $6.5 million, a 12% increase over Q3 2022 [41] - Non-GAAP gross domestic recurring billings for Q4 2022 were $5.8 million, a decrease of 6% compared to Q4 2021 [21] Market Data and Key Metrics Changes - Internationally, 100 systems were sold in 2022, compared to 38 systems in 2021 [17] - The company has signed distribution agreements in multiple countries, including Korea, Japan, China, and Mexico [17] Company Strategy and Development Direction - The company aims to expand its international presence and has appointed a new Head of International Sales to drive this initiative [18] - STRATA is focusing on direct-to-consumer marketing and engaging with high-volume accounts to enhance growth [12] - The recent approval of OPZELURA for vitiligo is expected to complement XTRAC treatment and drive traffic to dermatologists [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in 2023, despite a conservative revenue guidance of $38 million to $40 million [45] - The company is addressing supply chain issues by utilizing parts from existing machines for repairs, mitigating delays [23] - Management highlighted the importance of regulatory approvals for international expansion and new treatment opportunities [27] Other Important Information - The company launched TheraClearX for acne treatment in July 2022 and is focusing on increasing awareness and usage [14] - The new XTRAC website aims to enhance patient education and facilitate finding dermatologists [35] Q&A Session Summary Question: Can you discuss the conservative guidance for 2023? - Management acknowledged the conservative approach due to reliance on international expansion and regulatory approvals [26][57] Question: What is the expected growth rate for international sales? - Management indicated that international growth is expected to be significantly higher than domestic growth, maintaining around 35% of overall revenue [48] Question: Are there treatments for alopecia using XTRAC? - There is off-label use of XTRAC for alopecia, and management sees potential for future indications [49] Question: What are the typical treatment costs and cycles for patients? - Average treatment costs are around $200 per session, with patients typically requiring 10 to 20 treatments for conditions like psoriasis [52][58] Question: Can you provide updates on TheraClear placements and traction? - The company reported 17 placements of TheraClearX by the end of 2022, with significant traction noted in Q1 2023 [59]