STRATA Skin Sciences(US:SSKN)2019-11-01 09:50Summary of STRATA Skin Sciences, Inc. Conference Call Company Overview - Company: STRATA Skin Sciences, Inc. (NASDAQ: SSKN) - Date of Call: October 30, 2019 - Participants: - Matthew Picciano - IR, LifeSci Advisors - Dolev Rafaeli - Chief Executive Officer - Matthew Hill - Chief Financial Officer Key Points Financial Performance - STRATA reported year-end 2018 financial results and is finalizing Q1-Q3 2019 results [7][8] - Revenue growth observed since 2018, particularly in recurring revenues [8] - Gross margins improved, with expectations for continued expansion [11][12] - 2018 revenue was $29.9 million, slightly lower than previously disclosed [26] - Net loss for 2018 was $4 million, an improvement from a net loss of $21.5 million in 2017 [28] Strategic Initiatives - Focus on direct-to-consumer (DTC) advertising has shown positive results, with a 29% increase in patients treated year-to-date compared to 2018 [10][11] - STRATA has successfully executed a turnaround strategy since 2018, including a $17 million financing and management changes [9][12] - The company has replaced approximately 100 nonperforming accounts and increased its installed base of XTRAC systems from 746 at the end of 2018 to 784 by Q3 2019 [13][27] Market Opportunities - STRATA is targeting private equity-owned dermatology clinics, having doubled its presence in this segment [13][40] - The company is expanding internationally, particularly in South Korea and Japan, with a focus on recurring revenue models [14][16][44] - The South Korean market is seen as a significant opportunity due to national health insurance reimbursement for treatments [44] Competitive Landscape - STRATA faces limited competition in the domestic market, with only one other direct competitor experiencing challenges [12][41] - The company is positioned as a gold standard in several international markets, including South Korea and Japan [16][43] Technological Advancements - STRATA launched the new XTRAC S3 308 nanometer laser, which offers improved treatment efficiency and user experience [18] - The company received 510(k) clearance for a multi-micro dose for the excimer laser, expected to enhance treatment outcomes [17] Risks and Challenges - The company has faced challenges related to tariffs and the complexities of international market entry [14][56] - Ongoing accounting restatements have been a distraction but are now resolved, allowing the company to refocus on growth [54] Future Outlook - STRATA plans to continue investing in DTC advertising and expanding its sales and marketing efforts [29][30] - The company aims to leverage its established presence in the U.S. while exploring growth opportunities in international markets [56] Additional Insights - STRATA has a strong cash position of over $16 million as of September 30, 2019, despite costs associated with the restatement process [29] - The company has approximately 100 employees, with 45 in field sales roles [50][51] - The total share count is approximately 32.9 million common shares outstanding [48] This summary encapsulates the key points discussed during the STRATA Skin Sciences conference call, highlighting the company's financial performance, strategic initiatives, market opportunities, competitive landscape, technological advancements, risks, and future outlook.