STRATA Skin Sciences, Inc. (NASDAQ:SSKN) Q3 2024 Results Conference Call November 13, 2024 4:30 PM ET

Company Participants

Joey Delahoussaye - Investor Relations
Dolev Rafaeli - Chief Executive Officer
John Gillings - V.P. Finance

Operator

Ladies and gentlemen, thank you for standing by. Good afternoon, and welcome to the STRATA Skin Sciences, Inc. Third Quarter 2024 Financial Results and Corporate Update Conference Call. [Operator Instructions]. Participants of this call are advised that the audio of this conference call is being broadcast live over the Internet and is also being recorded for playback purposes. A webcast replay of the call will be available approximately one hour at the end of the call through May 13, 2025.

I would now like to turn the call over to Joey Delahoussaye, of Core IR, the company's Investor Relations firm. Please go ahead.

Joey Delahoussaye

Thank you. Good afternoon, and thank you for participating in today's conference call. Earlier this afternoon, a press released its financial results for the quarter ended September 30, 2024. A copy of that press release can be found on the company's website at www.strataskinsciences.com under the Investors tab. Joining me on today's earnings call from STRATA Skin Sciences management team are Dr. Dolev Rafaeli, Chief Executive Officer; and John Gillings, Vice President of Finance.

During this call, management will be making forward-looking statements, including statements that address STRATA Skin Sciences' expectations for future performance or operational results. Forward-looking statements involve risks and other factors that may cause actual results to differ materially from those statements.

For more information about these risks, please refer to the risk factors described in STRATA Skin Sciences' most recently filed annual report on Form 10-K and subsequent periodic reports filed with the SEC and STRATA Skin Sciences press release at the company's this call, particularly the cautionary statements in it. The content of this call contains time-sensitive information that is accurate only as of today, November 13, 2024. Except as required by law, STRATA Skin Scientists disclaims any obligation to publicly update or revise any information and reflect events or circumstances that occur after this call.

It is now my pleasure to turn the call over to CEO, Dr. Dolev Rafaeli.

Dolev Rafaeli

Thank you, Joey, and good afternoon for everyone on the call. Our results during the third quarter demonstrated continued and encouraging progress in our corporate turnaround as several metrics have stabilized and begun to show improved. Revenue per XTRAC device grew 2% year-over-year versus the flat revenue growth seen in the second quarter and versus the decline of 10% seen in fiscal 2023 over fiscal 2024. Our gross margin as a percentage of revenue improved for the third consecutive quarter and reached 60.3% in the third quarter versus 56% in the second quarter of 2023. Our operating expenses include a onetime accrual of $1.8 million related to a New York state sales tax audit for the years 2014 to 2017.