Strata Skin Sciences reports Q3 EPS (53c) vs. (30c) last year

Reports Q3 revenue $8.8M , consensus $8.54M.”The 2% year-over-year increase in revenue per XTRAC(R) system in the third quarter of 2024 illustrates progress in the Company’s turnaround. This increase compares favorably to roughly flat revenue growth per system last quarter and a decline of 10% in fiscal 2023 over fiscal 2022. This metric, along with essentially flat year-over-year revenue and global net recurring revenue in the third quarter, points to additional evidence that our business has stabilized,” commented STRATA’s President and CEO Dr. Dolev Rafaeli. “More importantly, gross margin as a percent of revenue continued to strengthen for the third consecutive quarter, reaching 60.3% in the third quarter, an improvement from 56.0% in the prior year period and up from 58.5% in the second quarter of 2024. Additionally, total operating expenses declined to $5.2 million in the third quarter from $5.6 million in the third quarter of 2023 and from $5.4 million in the second quarter of 2024. Altogether, these trends allowed us to generate a non-GAAP operating profit in the third quarter of 2024, the first time since 2018 that this has occurred. “TheraClea )X device placements continue to grow and reached 135 in the third quarter, up from 117 at the end of the second quarter. …At the recent 2024 Fall Clinical Dermatology Conference, a poster presentation titled, Targeted 308-nm Excimer Laser: A Safe and Effective Solution for Inflammatory Skin Disorders was presented that also highlighted the benefits of the TheraClear(R)X device “We strengthened our balance sheet in July 2024 with a $2.1M equity raise that had notable participation from existing shareholders and management. This financing, along with continued improving operating and financial performance, should help lead us to profitability and sustainable cash flow generation, which was the goal of our multifaceted strategy put in motion at the beginning of 2024,” concluded Dr. Rafaeli.