Journey Medical (DERM) Q4 2024 earnings summary

Executive summary

• Achieved all 2024 guidance ranges and FDA approval for Emrosi, a new oral rosacea treatment, with initial prescriptions dispensed and full promotion expected in April 2025.

• Reported annual revenue of $56.1 million for 2024, with six consecutive quarters of positive non-GAAP adjusted EBITDA and a strong cash position ahead of Emrosi's launch.

• Completed $22 million in one-time FDA filing fees and milestone payments for Emrosi, clearing financial obligations for its U.S. launch.

• Emrosi's phase III results published in JAMA Dermatology, showing clinical superiority and best-in-class efficacy and safety.

• Early 2025 activities include a successful presence at the AAD conference and new executive appointments.

Financial highlights

• Total revenues for 2024 were $56.1 million, down from $79.2 million in 2023, mainly due to a one-time $19 million license payment in 2023 and lower legacy product sales.

• Net loss for 2024 was $14.7 million ($0.72/share) compared to $3.9 million ($0.21/share) in 2023.

• Non-GAAP adjusted EBITDA was $0.8 million, down from $15.6 million in 2023 due to prior year licensing revenue.

• Cash and equivalents at year-end 2024 were $20.3 million, down from $27.4 million at end of 2023.

• SG&A expenses decreased by 8% to $40.2 million, while R&D expenses rose to $9.9 million, mainly due to Emrosi-related costs.

Outlook and guidance

• 2025 financial guidance will be provided later in the year after assessing Emrosi's initial demand and payer negotiations.

• Emrosi expected to be a major growth driver, with peak U.S. sales potential of $200 million and $100 million internationally.

• Full promotion of Emrosi is scheduled for April 2025, with ongoing execution ahead of schedule.

• Q2 2025 expected to see meaningful Emrosi revenues; Q1 revenues will be modest.

• Business development may include out-licensing Emrosi internationally.