Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $9.6 million, an increase of 10% from $8.7 million in Q4 2023 [20] - Gross profit increased to $5.8 million in Q4 2024, up from $4.8 million in the year-ago quarter, with gross margins improving to 60.1% from 55.3% [21] - Operating loss improved by 68% compared to Q4 2023, adjusted for non-cash impairment charges [12] Business Line Data and Key Metrics Changes - Average net revenue per XTRAC device increased by 11% over the previous quarter and 6% over the prior year [10] - Equipment revenue was $3.8 million in Q4 2024, compared to $3.1 million in Q4 2023, driven by strong capital sales in international markets [20] - 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% from Q3 2024 and up 41% from Q4 2023, representing the highest level of international sales to date [15] - The installed base of TheraClearX devices in the U.S. increased to 144 at the end of Q4 2024, up from 92 at the end of 2023 [14] Company Strategy and Development Direction - The company is focusing on improving the utilization of its machines by removing units from underperforming accounts and assisting higher-performing accounts [10] - The strategy includes enhancing direct-to-consumer advertising and consulting-like efforts with partner clinics to drive better utilization [12][13] - The company aims to stabilize financial performance and drive growth through strategic initiatives laid out at the beginning of 2024 [24] Management's Comments on Operating Environment and Future Outlook - Management noted a strong seasonal effect between Q4 and Q1, with Q1 typically being the weakest quarter [17] - The company is optimistic about continued progress in improving device utilization and revenue growth in the upcoming periods [11][12] - Management highlighted the importance of understanding the operational dynamics within clinics to enhance device utilization [56] Other Important Information - The company had a cash position of $8.6 million as of December 31, 2024, which supports growth initiatives [22] - The company is not providing specific guidance but noted historical patterns to help refine models for future performance [17] Q&A Session Summary Question: Clarification on TheraClearX device numbers - Management confirmed that 108 of the 144 TheraClearX devices are in accounts that are billing insurance [27] Question: Types of practices and geographical presence for TheraClearX - Initial uptake was stronger in the Northeast, primarily among small- to medium-sized groups [32][34] Question: Strength of international sales - Key international markets include Japan, China, South Korea, and the Middle East, with strong growth driven by technology appreciation and economic changes [36][41] Question: Identifying underutilized accounts and new clinics - Management explained the process of evaluating accounts based on revenue thresholds and the importance of patient follow-up for utilization [49][60]
STRATA Skin Sciences(SSKN) - 2024 Q4 - Earnings Call Transcript