STRATA Skin Sciences, Inc. (NASDAQ:SSKN) Q4 2023 Earnings Call Transcript

As we said now we have hundreds of patients in the process of being treated and of payments being collected. And I would assume by the end of the first quarter, we’ll be able to provide actual guidance on what would we anticipate, recurring revenue per device to be grow too and what would be the number of devices we anticipate having by the end of the year. I can say this is a sizable for the first quarter. We are seeing a growing acceptance of the usage of the reimbursement and that is happening in light of two trends. One is there was another device in the market too that, took a lot of attention in the last couple of years and there is disappointment from that device lots of it’s technology. It’s a different company and lots of its technology of the inability of driving patients for cash pay and realization those patients can get covered by insurance and their exposure is there out-of-pocket co-pay and having done that now in all regions from the country with a very large number of payers gives us a lot of confidence that by the end of Q1, we will be able to provide guidance on our quality targets as revenue.

And I hope that explains that. On the extra video, I did speak about where we want to be. So, we are we’ve ended 2023 at just over $5000 doors, as of if we could get by the end of 2024 to be where we were at the end of 2021 which is the range of $7000 — $7200 per device for the fourth quarter. This is going to be this is going to be a great outcome because it’s going to provide a meaningful upside on the recurring run rate. I’ll just as a reminder, the recurring revenue for the company has been in decline for the past several quarters. So, being able to get to a softwood have declined let’s start seeing the decline in my eyes would be public.

Jeffrey Cohen: Perfect. Okay. That does for us Thanks for taking the questions.

Operator: Thank you. [Operator Instructions] Our next question comes from the line of Jonathan Lawrence with [indiscernible].

Unidentified Analyst: Hey Dolev and Chris, how are you doing? My question was answered. Can you hear me?

Dolev Rafaeli: Yes.

Unidentified Analyst: Okay, great. I was just curious on the direct to consumer business. How is that going as far as the traction in both extract and also on TheraClearX? What you saw previously when you were doing this and kind of if anything’s changed or it’s the spend dollars and getting the leads?

Dolev Rafaeli: Well, great question. Thank you. I’ll just point out to a few things I said through my prepared remarks. When STRATA left off DTC which was the beginning of 2022 via a video detection standard direct-to-consumer spend for the year of 2021 was in the range of approximately $2 million. That’s $2 million generated about 6,000 enforcements which were approximately 25% of the new patients introduced into the clinic. So, if you wish the Company subsidizes about 25% of the patient growth into the clinic. In 2022, the company our stopped doing DTC and then in 2023, it moved most of its resources towards our direct to provider marketing and promoting the new therapeutics. By going back to DTC, we would like to see the restart of getting these leads and getting these sales.

And the most important first step was to reestablish where are we in terms of costs? Because two years have gone by, the cost of media has changed. The rules on online advertisement have changed. The available solutions are being promoted through social media and online have changed to different of pharmaceutical companies. So we wanted to see where we stand. We started doing DTC in the second half of January of 2024, with only four territories as I mentioned in my remarks, in anticipation to see where we stand in terms of results, and we were happily surprised to see that our cost per lead in the range of $30 and our cost per appointment in the range of $300 remains stable. We have since extended to additional categories, which I will be happy to provide more details as first quarter ends.

And we’re seeing a growing number of leads, a growing number of appointments being scheduled into a clinic. And by that we should see the results of the DTC in the range of two to three months into the campaign because it takes time for the time of the year. We have fortunately scheduled, the first appointment happens. The procedure is prescribed and then the patient starts getting creative around then there is construction of treatment codes and we see occurring our wait [ph]. We — I would like to be at the end of 2024 in the position to say that in Q4, we spent as much as we spent in Q4 of 2021. And I would also like to be in a position to say that at the end of Q4 2024, we’ve generated as many appointments as we had at the end of 2021. I provided in my remarks, the baseline, so that a subsequent conference calls, people will be able to follow through the success or the progress of this initiative.