Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide more details on the financial performance and key metrics for the third quarter of 2024? A: Dolev Rafaeli, CEO, highlighted that revenue per XTRAC device grew by 2% year-over-year, and gross margin improved to 60.3%. Operating expenses, excluding a one-time accrual, decreased to $5.2 million. The company achieved its first operating profit since 2018, excluding the one-time accrual. The direct-to-consumer initiative has been successful, with over 1,900 new patient appointments scheduled year-to-date.
Q: What was the impact of the New York State sales tax audit on the financials? A: John Gillings, VP Finance, explained that a $1.8 million accrual was made in the third quarter related to a sales tax audit for 2014-2017. The unfavorable legal decision resulted in this accrual, which is covered by restricted cash. This impacted the operating expenses for the quarter.
Q: How is the company progressing with its acne treatment platform? A: Dolev Rafaeli, CEO, reported that the company secured preauthorization for over 2,000 acne patients at partner clinics. Published studies and favorable reports from dermatology conferences indicate improved outcomes for acne treatment with the XTRAC devices, suggesting optimism for continued growth in this area.
Q: Can you elaborate on the recent litigation outcome against a competitor? A: Dolev Rafaeli, CEO, stated that the United States District Court issued an order preventing a competitor from making false claims about their laser device's technical merits and reimbursement potential. Strata will continue to pursue monetary damages for past misrepresentations.
Q: What are the company's strategic goals moving forward? A: Dolev Rafaeli, CEO, emphasized the focus on achieving profitability and sustainable cash flow. The company aims to turn key metrics positive year-over-year and continues to expand its direct-to-consumer efforts, including launching Spanish language initiatives.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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