STRATA Skin Sciences (SSKN) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $8.8 million, nearly flat year-over-year, with global net recurring revenue up 2% to $5.4 million.

• Gross margin improved to 60.3% from 56.0% in Q3 2023, driven by lower amortization costs and sales of refurbished units.

• Achieved first non-GAAP operating profit since 2018, excluding a $1.8 million one-time tax accrual.

• Net loss for Q3 2024 was $2.1 million, with net loss per share improving to $0.08 from $0.30 year-over-year.

• Company continues to face macroeconomic headwinds, including supply chain disruptions and legal challenges related to sales tax assessments.

Financial highlights

• Q3 2024 revenue: $8.8 million (Q3 2023: $8.9 million); nine months: $24.0 million (2023: $24.7 million).

• Gross profit increased to $5.3 million (60.3% margin); nine months: $13.3 million (55.5% margin).

• Non-GAAP operating expenses fell to $5.2 million, a 7% reduction year-over-year.

• Cash, cash equivalents, and restricted cash totaled $8.4 million at quarter end.

• Adjusted EBITDA for Q3 2024 was $(0.3) million; nine months: $(0.6) million.

Outlook and guidance

• Management expects continued profitability and sustainable cash flow, supported by improved execution, recent equity raise, and a stronger balance sheet.

• Strategic focus remains on DTC growth, insurance-reimbursed acne treatments, and increased direct-to-patient advertising.