STRATA Skin Sciences reports second quarter 2021 results

STRATA Skin Sciences, Inc, a medical technology company dedicated to developing, commercializing, and marketing innovative products for the treatment of dermatologic conditions, today announced financial results for the quarter ended June 30, 2021.
Recent Highlights

• Total revenue for the second quarter of 2021 was $7.4 million, an increase of 83.1% as compared to the second quarter of 2020
  • Recurring revenue for the second quarter of 2021 was $5.5 million, a 95.0% increase over the second quarter of 2020
  • Gross domestic recurring billings were $5.5 million, a 196.6% increase over the second quarter 2020 (See Reconciliation of Non-GAAP measures below)
• Total gross margins in the second quarter of 2021 were 64.5%, a 15.8% increase over second quarter 2020
• Cash, cash equivalents and restricted cash at June 31, 2021 were $17.0 million down from $17.5 million at March 31, 2021
• Concluded the quarter with a global recurring revenue installed base of 889 XTRAC devices, an increase of 18 devices from March 31, 2021
• Acquired U.S. dermatology business of Ra Medical Systems, significantly expanding opportunity to generate additional recurring revenue and expand customer base
• Hired New VP of Marketing, Brent Cowgill
• Received notification of Paycheck Protection Program forgiveness

“We were encouraged by our second quarter results, which showed significant growth over the second quarter of 2020, but more importantly, reflect total revenues at 95% of the comparable quarter of 2019 levels,” said Robert J. Moccia, Chief Executive Officer of STRATA Skin Sciences.

“Additionally, we’ve seen significant progress on our new strategic plan approved by our Board in May, including the positive impact of our improved direct to consumer and direct to dermatologist marketing efforts, as well as the successful execution of our sales initiatives. We were also pleased to announce the acquisition of the Pharos 308nm excimer laser business from Ra Medical. This transaction further demonstrates our commitment to commercial execution to drive both organic and inorganic growth,” continued Mr. Moccia. “In addition, Brent Cowgill recently joined the STRATA team, heading up our marketing efforts. We are confident that his extensive experience in sales and marketing will further enable us to reach new customers and expand the XTRAC excimer laser’s patient and physician base.”

Second Quarter 2021 Financial Results
Revenues were $7.4 million, as compared to revenues of $4.0 million for the second quarter of 2020. Recurring revenues were $5.5 million, as compared to recurring revenues of $2.8 million for the second quarter of 2020. Equipment revenues were $1.9 million, as compared to $1.2 million for the second quarter of 2020.

Gross profit was $4.8 million, or 64.5% of revenues, as compared to $2.0 million, or 48.7% of revenues, for the second quarter of 2020. Gross profit on recurring revenues was $3.8 million, or 70.0% of recurring revenues, as compared to $1.4 million, or 51.2% of revenues, for the second quarter of 2020. The increase in gross profit is the result of higher sales, partially offset by higher depreciation expense.

Engineering and product development costs were $0.4 million, as compared to $0.2 million for the second quarter of 2020 as a result of certain engineering projects. Selling and marketing were $3.2 million, as compared to $1.4 million for the second quarter of 2020, primarily as a result of investments in sales and marketing and direct to consumer advertising, while in 2020 the Company managed its costs as a result of the downturn in business attributable to the COVID-19 pandemic. General and administrative costs were $2.1 million, as compared to $1.9 million for the second quarter of 2020, as a result of higher compensation, severance and stock option costs. Other income was $2.0 million, as compared to an expense of $0.0 million as a result of a gain on the extinguishment of debt, derived from the forgiveness of $2.0 million from our Paycheck Protection Plan loan.

Net income was $1.1 million, or earnings of $0.03 per basic and diluted common share, as compared to the net loss for the second quarter of 2020 of $1.7 million, or a net loss of $0.05 per basic and diluted common share. Global Newswire