Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $9.6 million, an increase of 10% compared to $8.7 million in Q4 2023 [19] - Gross profit increased to $5.8 million in Q4 2024, up from $4.8 million in the year-ago quarter [21] - Gross margins improved to 60.1% from 55.3% over the same period in 2023 [22] - Operating loss adjusted for non-cash impairment charges improved by 68% compared to Q4 2023 [12] Business Line Data and Key Metrics Changes - Average net revenue per device increased by 11% over the previous quarter and 6% over the prior year period [10] - Equipment revenue was $3.8 million in Q4 2024, up from $3.1 million in Q4 2023, driven by strong capital sales in international markets [21] - Gross domestic revenue billings in Q4 were $4.9 million, marking the third consecutive quarter of sequential increase [13] Market Data and Key Metrics Changes - International sales reached $4.1 million in Q4 2024, up 27% over Q3 2024 and up 41% over Q4 2023 [15] - The installed base of TheraClear X devices in the U.S. increased to 144 at the end of Q4 2024, up from 92 devices at the end of 2023 [14] - The company secured preauthorization for over 3,700 patients with acne in partner clinics year to date [15] Company Strategy and Development Direction - The company is focusing on improving the utilization of its machines by migrating accounts to non-cash insurance reimbursed accounts [9] - The strategy includes removing underperforming units while assisting higher volume customers to better utilize extract devices [10] - The company aims to enhance in-clinic processes and identify partner clinics with the greatest opportunities for growth [13] Management's Comments on Operating Environment and Future Outlook - Management noted a strong seasonal effect between Q4 and Q1, with Q4 typically being the strongest quarter [17] - The company is committed to executing its strategic goals for 2025, supported by its current financial position [23] - Management highlighted the importance of understanding the operational dynamics within clinics to improve device utilization [59] Other Important Information - Direct-to-consumer advertising ramped up significantly, generating approximately 2,800 patient appointments [12] - The company is experiencing strong growth in international markets, particularly in Japan, China, South Korea, and the Middle East [39][40] Q&A Session Summary Question: Clarification on the number of TheraClear devices - Management confirmed that 108 of the 144 TheraClear devices are in accounts that are now billing insurance [29] Question: Types of practices and geographical presence for new accounts - Initial uptake of insurance reimbursed accounts started in the Northeast, primarily among small to medium-sized groups [35] Question: Strength of international markets - The strongest international markets are Japan, China, South Korea, and the Middle East, with significant growth driven by technology appreciation and economic changes [39][40] Question: Identifying underutilized accounts and new clinic placements - Management explained the process of identifying underutilized accounts and emphasized the importance of historical patient numbers and clinic staffing for new placements [52][63]
STRATA Skin Sciences(SSKN) - 2024 4 - Earnings Call Transcript