Delivers second quarter net sales of $90.6
million;
Year-over-year operating expense improvement of
nearly $18 million or 22%;
Revises full year financial guidance
The Beauty Health Company (NASDAQ: SKIN) (“BeautyHealth”), home
to flagship brand Hydrafacial, today announced financial results
for the second quarter ended June 30, 2024 ("Q2 2024"). For the
quarter, net sales of $90.6 million decreased (22.9)% relative to
the same period in 2023. Second quarter results reflect lower
equipment sales partially offset by steady growth in consumables
net sales.
“Our second quarter results reflect continued demand for
Hydrafacial treatments with growth in consumables sales, offset by
a slower-than-expected recovery in device sales, as macroeconomic
pressures persist, particularly outside the U.S.,” said
BeautyHealth Chief Executive Officer Marla Beck. “We have taken
aggressive action to address these challenges, including offering
our providers lower-priced device options and additional financing
solutions. We also continue to make significant progress on our
strategic priorities, including enhancing our sales capabilities,
driving operational excellence through quality and process
improvements, and gaining further expense leverage to improve
profitability. Excluding the impact of unanticipated write-off
charges related to our continued work in addressing inventory
issues, Adjusted EBITDA would have been well-above the high-end of
our guidance range, as we continue to drive efficiency and
substantial expense savings across the business.”
Ms. Beck added, “Although the impact of marketplace dynamics has
changed our 2024 outlook, we remain confident in Hydrafacial’s
growth potential and are leaning in. Hydrafacial is the market
leader and category creator for minimally invasive skin health
treatments with a brand that consumers ask for by name across the
globe. We are also a revenue generator for our providers, which is
why we enjoy one of the largest install bases in the world. Our
team is doing the work and making the decisions necessary to return
to profitable growth as soon as possible. Looking ahead, we remain
on plan to exit the year with greater sales efficacy, improved
inventory, and lower costs. This will ensure we have the capacity
to introduce new product innovation and a more effective
go-to-market strategy in the quarters ahead.”
Key Operational and Business Metrics
Three Months Ended June
30,
Six Months Ended June
30,
Unaudited ($ in millions) (1)
2024
2023
2024
2023
Delivery Systems net sales
$
35.2
$
65.6
$
71.0
$
110.9
Consumables net sales
55.4
51.9
101.0
92.8
Total net sales
$
90.6
$
117.5
$
172.0
$
203.8
Gross profit
$
40.9
$
67.9
$
89.3
$
122.0
Gross margin
45.2
%
57.8
%
51.9
%
59.9
%
Adjusted gross profit(2) (3)
$
44.8
$
75.7
$
96.4
$
136.1
Adjusted gross margin(2) (3)
49.4
%
64.5
%
56.1
%
66.8
%
Net income (loss)
$
0.2
$
3.4
$
(0.5
)
$
(16.9
)
Adjusted EBITDA(2) (3)
$
(5.2
)
$
12.4
$
(4.8
)
$
11.9
Adjusted EBITDA margin(2) (3)
(5.7
)%
10.5
%
(2.8
)%
5.8
%
Three Months Ended June
30,
Six Months Ended June
30,
Unaudited
2024
2023
2024
2023
Total delivery systems sold
1,285
2,822
2,702
4,596
Active install base
33,504
29,682
33,504
29,682
__________________________
(1) Amounts may not sum due to
rounding.
(2) See "Non-GAAP Financial
Measures" below.
(3) 2023 amounts reflect the
removal of the accrual for annual cash incentives for comparability
purposes.
Financial Highlights
- Net sales were $90.6 million for the second quarter of 2024, a
decrease of (22.9)%, compared to the prior year period ("Q2 2023"),
due to lower delivery systems net sales.
- Gross margin was 45.2% in Q2 2024 compared to 57.8% in Q2 2023.
Adjusted gross margin was 49.4% in Q2 2024 compared to 64.5% in Q2
2023. Gross margin and adjusted gross margin for 2024 were
adversely impacted by higher inventory related charges of
approximately $17 million, resulting primarily from inventory
write-downs of 13.8 million.
- Net income was $0.2 million in Q2 2024 compared to net income
of $3.4 million in Q2 2023. Net income in Q2 2024 was primarily due
to the gain on repurchase of $117.3 million of principal amount of
the Company's convertible senior notes in Q2 2024 partially offset
by inventory related charges.
- Adjusted EBITDA loss was $(5.2) in Q2 2024 compared to adjusted
EBITDA of $12.4 in Q2 2023, primarily due to inventory related
charges and lower net sales.
- The Company placed 1,285 delivery systems during the quarter
compared to 2,822 in the prior year period, reflecting a
challenging macroeconomic environment, in addition to the
international launch of the Syndeo Delivery System ("Syndeo") in
the comparable 2023 period.
Balance Sheet and Cash Flow Highlights
- Cash, cash equivalents, and restricted cash were approximately
$349.5 million as of June 30, 2024 compared to approximately $523.0
million as of December 31, 2023. The change was primarily due to
the repurchase of convertible senior notes during the first half of
2024.
- The Company had approximately 7 million private placement
warrants and approximately 124.0 million shares of Class A common
stock outstanding as of June 30, 2024.
- During the three months ended June 30, 2024, the Company
repurchased $117.3 million principal amount of its convertible
senior notes at a weighted-average price equal to 84% for $98.3
million.
Revised Financial Guidance as of August 2024
Third Quarter 2024
Net sales
$70 – $80 million
Adjusted EBITDA(1)
($6) – ($1) million
Fiscal Year 2024
Net sales
$325 – $345 million
Adjusted EBITDA(1)
($10) – $0 million
__________________________
(1) See "Non-GAAP Financial
Measures" below.
Lowered financial guidance reflects the following
assumptions:
- Third quarter and fiscal year financial guidance reflects
continued pressure on delivery systems sales.
- Assumes no material deterioration in general market conditions
or other unforeseen circumstances beyond the Company's control,
such as foreign currency exchange rates.
- Excludes any unannounced acquisitions, dispositions or
financings.
Regional Operational and Business Metrics
Three Months Ended June
30,
Six Months Ended June
30,
Unaudited ($ in millions) (1)
2024
2023
2024
2023
Delivery Systems net sales
Americas
$
19.6
$
28.4
$
37.9
$
52.8
Asia-Pacific (“APAC”)
6.5
18.6
14.0
28.4
Europe, the Middle East and Africa
(“EMEA”)
9.1
18.5
19.1
29.7
Total Delivery Systems net sales
$
35.2
$
65.6
$
71.0
$
110.9
Consumables net sales
Americas
$
38.1
$
35.2
$
70.2
$
63.8
APAC
7.1
6.6
11.6
10.4
EMEA
10.1
10.1
19.3
18.5
Total Consumables net sales
$
55.4
$
51.9
$
101.0
$
92.8
Net sales
Americas
$
57.7
$
63.6
$
108.1
$
116.6
APAC
13.6
25.2
25.6
38.9
EMEA
19.2
28.6
38.3
48.3
Total net sales
$
90.6
$
117.5
$
172.0
$
203.8
Delivery Systems sold
Americas
704
1,167
1,412
2,069
APAC
229
789
556
1,190
EMEA
352
866
734
1,337
Total Delivery Systems sold
1,285
2,822
2,702
4,596
__________________________
(1) Amounts may not sum due to
rounding.
Conference Call
BeautyHealth will host a conference call on Thursday, August 8,
2024, at 4:30 p.m. ET to review its second quarter 2024 financial
results. The call may be accessed via live webcast through the
Events & Presentations page on our Investor Relations website
at https://investors.beautyhealth.com. A replay of the conference
call will be available approximately three hours after the
conclusion of the call and can be accessed online at
https://investors.beautyhealth.com.
Non-GAAP Financial Measures
In addition to results determined in accordance with accounting
principles generally accepted in the United States of America
("GAAP"), management utilizes certain non-GAAP financial measures
such as adjusted gross profit, adjusted gross margin, adjusted
EBITDA, and adjusted EBITDA margin for purposes of evaluating
ongoing operations and for internal planning and forecasting
purposes.
Management believes that these non-GAAP financial measures, when
reviewed collectively with the Company’s GAAP financial
information, provide useful supplemental information to investors
in assessing the Company's operating performance. These non-GAAP
financial measures should not be considered as an alternative to
GAAP financial information or as an indication of operating
performance or any other measure of performance derived in
accordance with GAAP, and may not provide information that is
directly comparable to that provided by other companies in its
industry, as these other companies may calculate non-GAAP financial
measures differently, particularly related to unusual items.
Adjusted gross profit is gross profit excluding the effects of
depreciation expense, amortization expense, stock-based
compensation expense and other items such as the write-off of
discontinued, excess and obsolete product and Syndeo product
optimization logistics & service costs. Adjusted gross margin
represents adjusted gross profit as a percentage of net sales.
Adjusted EBITDA is calculated as net income (loss) excluding the
effects of benefit for income taxes; depreciation expense;
amortization expense; stock-based compensation expense; interest
expense; interest income; other income, net; change in fair value
of warrant liability; foreign currency loss (gain), net;
transaction related costs; write-off of discontinued, excess and
obsolete product; litigation related costs; Syndeo product
optimization logistics & service costs; and severance,
restructuring and other. Adjusted EBITDA margin represents adjusted
EBITDA as a percentage of net sales.
The Company does not provide a reconciliation of its fiscal 2024
adjusted EBITDA guidance to net income (loss), the most directly
comparable forward looking GAAP financial measures, due to the
inherent difficulty in forecasting and quantifying certain amounts
that are necessary for such reconciliation, which cannot be done
without unreasonable efforts, including adjustments that could be
made for changes in fair value of warrant liabilities, integration
and acquisition-related expenses, amortization expenses, non-cash
stock-based compensation, gains/losses on foreign currency, and
other charges reflected in our reconciliation of historic numbers,
the amount of which, based on historical experience, could be
significant. The presentation of this financial information is not
intended to be considered in isolation or as a substitute for the
financial information prepared and presented in accordance with
GAAP. The Company's fiscal 2024 adjusted EBITDA guidance is merely
an outlook and is not a guarantee of future performance.
Stockholders should not rely or place an undue reliance on such
forward-looking statements. See “Forward-Looking Statements” for
additional information.
The Beauty Health
Company
Condensed Consolidated
Statements of Comprehensive Income (Loss) (1)
($ in millions, except share
and per share amounts)
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Net sales
$
90.6
$
117.5
$
172.0
$
203.8
Cost of sales
49.7
49.6
82.7
81.8
Gross profit
40.9
67.9
89.3
122.0
Operating expenses:
Selling and marketing
30.5
43.0
64.2
81.7
Research and development
1.2
2.9
4.0
5.2
General and administrative
31.4
35.1
60.3
65.5
Total operating expenses
63.1
81.0
128.4
152.4
Loss from operations
(22.1
)
(13.1
)
(39.1
)
(30.5
)
Interest expense
2.5
3.4
5.5
6.8
Interest income
(4.2
)
(5.7
)
(9.6
)
(10.0
)
Other income, net
(17.3
)
—
(33.4
)
(0.5
)
Change in fair value of warrant
liabilities
(4.0
)
(11.6
)
(2.6
)
(2.5
)
Foreign currency transaction loss (gain),
net
1.1
(0.4
)
2.4
(1.5
)
(Loss) income before provision for
income taxes
(0.2
)
1.2
(1.5
)
(22.8
)
Income tax benefit
(0.4
)
(2.2
)
(1.0
)
(5.9
)
Net income (loss)
0.2
3.4
(0.5
)
(16.9
)
Comprehensive income (loss), net of
tax:
Foreign currency translation
adjustments
(0.8
)
(0.4
)
(1.9
)
0.5
Comprehensive (loss) income
$
(0.6
)
$
3.0
$
(2.3
)
$
(16.4
)
Net income (loss) per share
Basic
$
0.00
$
0.03
$
0.00
$
(0.13
)
Diluted
$
(0.10
)
$
0.03
$
(0.20
)
$
(0.13
)
Weighted average common shares
outstanding
Basic
123,718,797
132,716,024
123,417,353
132,569,209
Diluted
141,927,750
132,716,024
143,200,221
132,569,209
__________________________
(1) Amounts may not sum due to
rounding.
The Beauty Health
Company
Condensed Consolidated Balance
Sheets (1)
($ in millions)
(Unaudited)
June 30, 2024
December 31, 2023
ASSETS
Current assets:
Cash, cash equivalents, and restricted
cash
$
349.5
$
523.0
Accounts receivable, net
41.4
54.7
Inventories
77.1
91.3
Income tax receivable
0.4
0.3
Prepaid expenses and other current
assets
21.1
28.9
Total current assets
489.6
698.3
Property and equipment, net
9.7
14.2
Right-of-use assets, net
14.9
12.1
Intangible assets, net
54.2
62.1
Goodwill
124.8
125.8
Deferred income tax assets, net
3.0
0.5
Other assets
15.5
16.0
TOTAL ASSETS
$
711.8
$
929.1
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
26.7
$
44.8
Accrued payroll-related expenses
17.1
22.0
Lease liabilities, current
4.3
4.6
Income tax payable
2.4
2.8
Syndeo Program reserves
0.9
21.0
Other accrued expenses
24.0
19.8
Total current liabilities
75.4
115.0
Lease liabilities, non-current
12.7
9.3
Deferred income tax liabilities, net
1.1
0.7
Warrant liabilities
1.0
3.6
Convertible senior notes, net
550.6
738.4
Other long-term liabilities
1.8
2.8
TOTAL LIABILITIES
$
642.6
$
869.7
Stockholders’ equity:
Class A Common Stock
$
—
$
—
Additional paid-in capital
553.4
541.3
Accumulated other comprehensive loss
(4.9
)
(3.0
)
Accumulated deficit
(479.3
)
(478.9
)
Total stockholders’ equity
$
69.2
$
59.4
LIABILITIES AND STOCKHOLDERS’
EQUITY
$
711.8
$
929.1
__________________________
(1) Amounts may not sum due to
rounding.
The Beauty Health
Company
Condensed Consolidated
Statement of Cash Flows (1)
($ in millions)
(Unaudited)
Six Months Ended June
30,
2024
2023
Cash, cash equivalents, and restricted
cash at beginning of period
$
523.0
$
568.2
Operating activities:
Net loss
(0.5
)
(16.9
)
Non-cash adjustments
23.2
36.0
Change in operating assets and
liabilities:
Accounts receivable
10.5
(0.1
)
Inventories
(6.6
)
(2.6
)
Prepaid expenses, other current assets,
and income tax receivable
6.3
(12.2
)
Accounts payable, accrued expenses, and
income tax payable
(38.7
)
9.2
Other, net
(4.8
)
(4.4
)
Net cash (used for) provided by operating
activities
(10.7
)
9.0
Net cash used for investing activities
(3.8
)
(24.9
)
Net cash used for financing activities
(157.4
)
(3.7
)
Net change in cash, cash equivalents, and
restricted cash
(171.9
)
(19.7
)
Effect of foreign currency translation
(1.6
)
1.2
Cash, cash equivalents, and restricted
cash at end of period
$
349.5
$
549.7
__________________________
(1) Amounts may not sum due to
rounding.
The following table reconciles gross profit to adjusted gross
profit for the periods presented:
Three Months Ended June
30,
Six Months Ended June
30,
Unaudited ($ in millions) (1)
2024
2023 (2)
2024
2023 (2)
Net sales
$
90.6
$
117.5
$
172.0
$
203.8
Gross profit
$
40.9
$
67.9
$
89.3
$
122.0
Gross margin
45.2
%
57.8
%
51.9
%
59.9
%
Adjusted to exclude the following:
Depreciation expense
0.4
0.6
0.9
1.1
Amortization expense
3.3
4.5
6.5
6.9
Stock-based compensation expense
0.1
0.4
(0.3
)
0.7
Write-off of discontinued, excess and
obsolete product
—
1.0
—
4.0
Syndeo product optimization logistics
& service costs
—
1.4
—
1.4
Adjusted gross profit
$
44.8
$
75.7
$
96.4
$
136.1
Adjusted gross margin
49.4
%
64.5
%
56.1
%
66.8
%
__________________________
(1) Amounts may not sum due to
rounding.
(2) Reflects the removal of
the accrual for annual cash incentives in prior periods for
comparability purposes.
The following table reconciles net income (loss) to adjusted
EBITDA for the periods presented:
Three Months Ended June
30,
Six Months Ended June
30,
Unaudited ($ in millions) (1)
2024
2023 (2)
2024
2023 (2)
Net sales
$
90.6
$
117.5
$
172.0
$
203.8
Net income (loss)
$
0.2
$
3.4
$
(0.5
)
$
(16.9
)
Adjusted to exclude the following:
Benefit for income taxes
(0.4
)
(2.2
)
(1.0
)
(5.9
)
Depreciation expense
2.7
2.6
5.4
4.5
Amortization expense
6.3
7.8
12.1
12.2
Stock-based compensation expense
6.5
8.5
13.1
12.1
Interest expense
2.5
3.4
5.5
6.8
Interest income
(4.2
)
(5.7
)
(9.6
)
(10.0
)
Other income, net
(17.3
)
—
(33.4
)
(0.5
)
Change in fair value of warrant
liabilities
(4.0
)
(11.6
)
(2.6
)
(2.5
)
Foreign currency loss (gain), net
1.1
(0.4
)
2.4
(1.5
)
Transaction related costs
—
0.8
—
0.8
Write-off of discontinued, excess and
obsolete product
—
1.0
—
4.0
Litigation related costs
0.6
0.5
1.2
1.5
Syndeo product optimization logistics
& service costs
—
1.4
—
1.4
Severance, restructuring and other
0.9
2.8
2.4
5.8
Adjusted EBITDA
$
(5.2
)
$
12.4
$
(4.8
)
$
11.9
Adjusted EBITDA margin
(5.7
)%
10.5
%
(2.8
)%
5.8
%
__________________________
(1) Amounts may not sum due to
rounding.
(2) Reflects the removal of
the accrual for annual cash incentives in prior periods for
comparability purposes.
About The Beauty Health Company
The Beauty Health Company (NASDAQ: SKIN) is a global
category-creating company delivering millions of skin health
experiences every year that help consumers reinvent their
relationship with their skin, bodies and self-confidence. Our
brands are pioneers: Hydrafacial™ in hydradermabrasion, SkinStylus™
in microneedling, and Keravive™ in scalp health. Together, with our
powerful global community of estheticians, partners and consumers,
we are personalizing skin health for all ages, genders, skin tones,
and skin types. We are committed to being ever more mindful in how
we conduct our business to positively impact our communities and
the planet. Find a local provider at
https://hydrafacial.com/find-a-provider/, and learn more at
beautyhealth.com or LinkedIn.
Forward-Looking Statements
Certain statements made in this release are “forward looking
statements” within the meaning of the “safe harbor” provisions of
the United States Private Securities Litigation Reform Act of 1995,
including statements regarding The Beauty Health Company’s
strategy, plans, objectives, initiatives and financial outlook.
When used in this press release, the words “estimates,”
“projected,” “expects,” “anticipates,” “forecasts,” “plans,”
“intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,”
“propose” and variations of these words or similar expressions (or
the negative versions of such words or expressions) are intended to
identify forward-looking statements.
These forward-looking statements are not guarantees of future
performance, conditions or results, and involve a number of known
and unknown risks, uncertainties, assumptions and other important
factors, many of which are outside The Beauty Health Company’s
control, that could cause actual results or outcomes to differ
materially from those discussed in the forward-looking statements.
As such, readers are cautioned not to place undue reliance on any
forward-looking statements.
Important factors that may affect actual results or outcomes
include, among others: The Beauty Health Company’s ability to
manage growth; The Beauty Health Company’s ability to execute its
business plan; potential litigation involving The Beauty Health
Company; changes in applicable laws or regulations; the possibility
that The Beauty Health Company may be adversely affected by other
economic, business, and/or competitive factors; and other risks and
uncertainties set forth in the sections entitled “Risk Factors” and
“Cautionary Note Regarding Forward-Looking Statements” in the
Company’s Annual Report on Form 10-K for the year ended December
31, 2023 filed with the U.S. Securities and Exchange Commission
(the “SEC”) and in the Company’s subsequent filings with the SEC.
There may be additional risks that the Company does not presently
know of or that the Company currently believes are immaterial that
could also cause actual results to differ from those contained in
the forward-looking statements. The Beauty Health Company does not
undertake any obligation to update or revise any forward-looking
statements, whether as a result of new information, future events,
or otherwise, except as required by law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240808245124/en/
Investors: IR@beautyhealth.com Press: Press@beautyhealth.com
Beauth Health (NASDAQ:SKIN)
過去 株価チャート
から 12 2024 まで 1 2025
Beauth Health (NASDAQ:SKIN)
過去 株価チャート
から 1 2024 まで 1 2025
