SRTS - I listened to the call as well, but will have to listen again when replay is available because it was a little choppy for me over the internet.
The good: The most compelling part for me was when the son came on to describe the recurring revenue model using the analogy of buying a car. As it is now, if dermatologist buys the machine, it's like buying a toyota -- you still have to take it to the dealership for maintenance, pay for repairs, set aside time to drive the thing, etc. Whereas under the recurring revenue model, Sensus can do all those things -- repairs, provide a driver, upkeep, etc. So that sounded to me like a dermatologist wouldn't have to spend hardly any time on this (if he didn't want to) and almost let an entirely separate group of people operate out of a room in his office and run the show. So long as the additional crew does a good job (and frankly it doesn't seem very tough when you watch some of the videos), then I could see that being something some docs would want. Free additional profit for the doc's office, without large commitment of money or time. But we still don't know how profitable that would be, the exact breakdown, etc. But it sounded like (in theory) Sensus could recoup all the costs of the additional people required to operate the machines, etc. But I think CEO said revs from this wouldn't really start until around 2025.
The not so great: 1) the transdermal thing I think he said might provide an additional $1-2 million rev PER YEAR, so realistically, even though every little bit helps, this just isn't gonna add much to the biz. 2) Final question asked about decreased sales and marketing expense (I think it was -- again it was a little choppy for me) and CFO said it was a one-time decrease of like $800k. So yeah, my guess is operating expenses as a whole being down over 40% y-o-y is not repeatable.
All in all, I think this Q's earnings were not as good as they appear, but I came away feeling that maybe the recurring revenue model holds some promise
