Delivers third quarter net sales of $78.8
million;
Delivers improved profitability as strategic
initiatives start to take hold
Successfully launches Hydralock HA Booster
The Beauty Health Company (NASDAQ: SKIN) (“BeautyHealth”), home
to flagship brand Hydrafacial, today announced financial results
for the third quarter ended September 30, 2024 ("Q3 2024").
“We delivered revenue above the midpoint of our guidance, with
growth in consumables sales driven by sustained demand for
Hydrafacial treatments and the successful launch of the Hydralock
HA Booster,” said BeautyHealth Chief Executive Officer Marla Beck.
“Our ability to expand gross margins and achieve adjusted EBITDA
profitability in the third quarter reflects the positive impact of
our operational excellence initiatives and disciplined expense
management.”
Ms. Beck added, “During the quarter, we made the strategic
decision to centralize our global manufacturing footprint in Long
Beach by year-end and conclude our relationship with our
third-party manufacturing partner in China. This move is a key step
in simplifying our operations and aligning our business with the
most scalable and profitable growth opportunities. We also
completed a comprehensive evaluation of our sales organization and
are implementing new processes, technologies and analytics to
improve our lead pipeline and overall execution. Additionally, we
strengthened our commercial leadership team with the appointments
of a new Chief Revenue Officer and Chief Marketing Officer, both of
whom joined BeautyHealth subsequent to quarter end. While there’s
still more work to be done, we are confident that the actions we’ve
taken to date are setting the foundation for our return to
profitable growth and Hydrafacial’s long-term success.”
For the quarter, net sales of $78.8 million decreased (19.1)%
relative to the same period in 2023. Third quarter results reflect
lower equipment sales partially offset by steady growth in
consumables net sales. The Company revised its full year net sales
guidance lower due to continued pressure on delivery systems sales
and improved its adjusted EBITDA guidance to reflect stronger
profitability in the third quarter.
Key Operational and Business Metrics
Three Months Ended September
30,
Nine Months Ended September
30,
Unaudited ($ in millions) (1)
2024
2023
2024
2023
Delivery Systems net sales
$
27.6
$
51.0
$
98.6
$
162.0
Consumables net sales
51.2
46.4
152.2
139.2
Total net sales
$
78.8
$
97.4
$
250.8
$
301.2
Gross profit (loss)
$
40.6
$
(12.6
)
$
130.0
$
109.4
Gross margin
51.6
%
(12.9
)%
51.8
%
36.3
%
Adjusted gross profit(2)
$
54.7
$
60.9
$
151.2
$
197.0
Adjusted gross margin(2)
69.5
%
62.5
%
60.3
%
65.4
%
Net loss
$
(18.3
)
$
(73.8
)
$
(18.8
)
$
(90.7
)
Adjusted EBITDA(2)
$
8.1
$
9.1
$
3.2
$
21.0
Adjusted EBITDA margin(2)
10.2
%
9.3
%
1.3
%
7.0
%
Three Months Ended September
30,
Nine Months Ended September
30,
Unaudited
2024
2023
2024
2023
Total delivery systems sold
1,118
2,140
3,820
6,736
Active install base
34,162
30,074
34,162
30,074
______________________
(1)
Amounts may not sum due to rounding.
(2)
See "Non-GAAP Financial Measures"
below.
Financial Highlights
- Net sales were $78.8 million for the third quarter of 2024, a
decrease of (19.1)%, compared to the prior year period ("Q3 2023"),
due to lower delivery systems net sales.
- Gross margin was 51.6% in Q3 2024 compared to (12.9)% in Q3
2023. The improvement in gross margin was primarily due to the
absence of charges and inventory write-downs associated with the
Syndeo Program of $63.1 million in Q3 2023 and lower inventory
related charges and product costs, partially offset by $8 million
of manufacturing optimization related costs incurred in 2024.
- Adjusted gross margin was 69.5% in Q3 2024 compared to 62.5% in
Q3 2023. The improvement in adjusted gross margin was primarily due
to lower inventory related charges and product costs, higher
average selling price for equipment net sales, and favorable mix
shift towards consumable net sales.
- Net loss was $(18.3) million in Q3 2024 compared to net loss of
$(73.8) million in Q3 2023. The change compared to the prior year
was primarily due to costs associated with the Syndeo Program in
2023.
- Adjusted EBITDA was $8.1 in Q3 2024 compared to adjusted EBITDA
of $9.1 in Q3 2023. The decline in adjusted EBITDA was primarily
due to lower net sales partially offset by higher gross margin and
lower operational spend.
- The Company placed 1,118 delivery systems during the quarter
compared to 2,140 in the prior year period, reflecting a
challenging macroeconomic environment in addition to the prior year
international launch of Syndeo Delivery System ("Syndeo").
Balance Sheet and Cash Flow Highlights
- Cash, cash equivalents, and restricted cash were approximately
$358.9 million as of September 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 124.1 million shares of Class A common
stock outstanding as of September 30, 2024.
Revised Financial Guidance as of November 2024
Fiscal Year 2024
Net sales
$322 – $332 million
Adjusted EBITDA(1)
($2) – $4 million
______________________
(1)
See "Non-GAAP Financial Measures"
below.
Revised financial guidance reflects the following
assumptions:
- Revised full-year net sales guidance reflects continued
downward pressure on delivery systems sales.
- Revised full-year adjusted EBITDA guidance reflects the
improved Q3 2024 gross margin performance and reduction in
operational spend.
- Assumes no material deterioration in general market conditions
or other unforeseen circumstances beyond the Company's control,
such as foreign currency exchange rates.
- Excludes any unannounced acquisitions, dispositions or
financings.
Regional Operational and Business Metrics
Three Months Ended September
30,
Nine Months Ended September
30,
Unaudited ($ in millions) (1)
2024
2023
2024
2023
Delivery Systems net sales
Americas
$
16.2
$
20.3
$
54.1
$
73.1
Asia-Pacific (“APAC”)
4.9
18.0
18.9
46.4
Europe, the Middle East and Africa
(“EMEA”)
6.5
12.7
25.6
42.4
Total Delivery Systems net sales
$
27.6
$
51.0
$
98.6
$
162.0
Consumables net sales
Americas
$
35.6
$
31.4
$
105.8
$
95.2
APAC
5.9
6.7
17.5
17.1
EMEA
9.6
8.3
28.9
26.9
Total Consumables net sales
$
51.2
$
46.4
$
152.2
$
139.2
Net sales
Americas
$
51.9
$
51.7
$
159.9
$
168.3
APAC
10.8
24.7
36.4
63.5
EMEA
16.1
21.1
54.4
69.3
Total net sales
$
78.8
$
97.4
$
250.8
$
301.2
Delivery Systems sold
Americas
634
776
2,046
2,844
APAC
215
752
771
1,942
EMEA
269
612
1,003
1,950
Total Delivery Systems sold
1,118
2,140
3,820
6,736
______________________
(1)
Amounts may not sum due to rounding.
Conference Call
BeautyHealth will host a conference call on Tuesday, November
12, 2024, at 4:30 p.m. ET to review its third 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 (loss) excluding the
effects of depreciation expense, amortization expense, stock-based
compensation expense and other items such as manufacturing
optimization costs; write-off of discontinued, excess and obsolete
product; Syndeo Program; 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 loss excluding the effects
of expense (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 (gain) loss, net;
manufacturing optimization costs; write-off of discontinued, excess
and obsolete product; Syndeo Program; Syndeo product optimization
logistics & service costs; litigation related costs;
transaction related 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 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 September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Net sales
$
78.8
$
97.4
$
250.8
$
301.2
Cost of sales
38.2
110.0
120.8
191.7
Gross profit (loss)
40.6
(12.6
)
130.0
109.4
Operating expenses:
Selling and marketing
27.6
30.7
91.8
112.5
Research and development
1.1
1.8
5.1
7.1
General and administrative
33.4
37.0
93.7
102.5
Total operating expenses
62.2
69.5
190.6
222.0
Loss from operations
(21.5
)
(82.1
)
(60.6
)
(112.6
)
Interest expense
2.5
3.4
7.9
10.3
Interest income
(4.9
)
(6.8
)
(14.4
)
(16.8
)
Other income, net
(0.1
)
(4.9
)
(33.5
)
(5.3
)
Change in fair value of warrant
liabilities
(0.4
)
(5.9
)
(3.0
)
(8.4
)
Foreign currency transaction (gain) loss,
net
(2.3
)
2.3
0.2
0.7
Loss before provision for income
taxes
(16.3
)
(70.3
)
(17.8
)
(93.1
)
Income tax expense (benefit)
1.9
3.5
0.9
(2.4
)
Net loss
(18.3
)
(73.8
)
(18.8
)
(90.7
)
Comprehensive loss, net of tax:
Foreign currency translation
adjustments
1.2
(1.1
)
(0.7
)
(0.6
)
Comprehensive loss
$
(17.1
)
$
(74.9
)
$
(19.4
)
$
(91.3
)
Net loss per share
Basic
$
(0.15
)
$
(0.56
)
$
(0.15
)
$
(0.68
)
Diluted
$
(0.15
)
$
(0.56
)
$
(0.31
)
$
(0.68
)
Weighted average common shares
outstanding
Basic
124,057,602
132,896,626
123,630,811
132,679,547
Diluted
124,057,602
132,896,626
142,667,209
132,679,547
______________________
(1)
Amounts may not sum due to rounding.
The Beauty Health
Company
Condensed Consolidated Balance
Sheets (1)
($ in millions)
(Unaudited)
September 30, 2024
December 31, 2023
ASSETS
Current assets:
Cash, cash equivalents, and restricted
cash
$
358.9
$
523.0
Accounts receivable, net
36.3
54.7
Inventories
73.4
91.3
Income tax receivable
0.4
0.3
Prepaid expenses and other current
assets
16.0
28.9
Total current assets
485.0
698.3
Property and equipment, net
7.6
14.2
Right-of-use assets, net
14.6
12.1
Intangible assets, net
51.0
62.1
Goodwill
125.5
125.8
Deferred income tax assets, net
1.2
0.5
Other assets
14.7
16.0
TOTAL ASSETS
$
699.5
$
929.1
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
23.1
$
44.8
Accrued payroll-related expenses
16.5
22.0
Lease liabilities, current
4.8
4.6
Income tax payable
1.4
2.8
Syndeo Program reserves
—
21.0
Other accrued expenses
28.1
19.8
Total current liabilities
73.9
115.0
Lease liabilities, non-current
12.1
9.3
Deferred income tax liabilities, net
1.1
0.7
Warrant liabilities
0.6
3.6
Convertible senior notes, net
551.4
738.4
Other long-term liabilities
0.7
2.8
TOTAL LIABILITIES
$
639.8
$
869.7
Stockholders’ equity:
Class A Common Stock
$
—
$
—
Additional paid-in capital
561.1
541.3
Accumulated other comprehensive loss
(3.7
)
(3.0
)
Accumulated deficit
(497.6
)
(478.9
)
Total stockholders’ equity
$
59.7
$
59.4
LIABILITIES AND STOCKHOLDERS’
EQUITY
$
699.5
$
929.1
______________________
(1)
Amounts may not sum due to rounding.
The Beauty Health
Company
Condensed Consolidated
Statement of Cash Flows (1)
($ in millions)
(Unaudited)
Nine Months Ended September
30,
2024
2023
Cash, cash equivalents, and restricted
cash at beginning of period
$
523.0
$
568.2
Operating activities:
Net loss
(18.8
)
(90.7
)
Non-cash adjustments:
51.6
82.2
Change in operating assets and
liabilities:
Accounts receivable
13.3
6.0
Inventories
(7.5
)
3.4
Prepaid expenses, other current assets,
and income tax receivable
8.0
(16.2
)
Accounts payable, accrued expenses, and
income tax payable
(39.5
)
50.1
Other, net
(7.5
)
(7.9
)
Net cash (used for) provided by operating
activities
(0.3
)
26.9
Net cash used for investing activities
(5.9
)
(29.3
)
Net cash used for financing activities
(157.6
)
(6.1
)
Net change in cash, cash equivalents, and
restricted cash
(163.8
)
(8.5
)
Effect of foreign currency translation
(0.3
)
(0.2
)
Cash, cash equivalents, and restricted
cash at end of period
$
358.9
$
559.4
______________________
(1)
Amounts may not sum due to rounding.
The following table reconciles gross profit (loss) to adjusted
gross profit for the periods presented:
Three Months Ended September
30,
Nine Months Ended September
30,
Unaudited ($ in millions) (1)
2024
2023
2024
2023
Net sales
$
78.8
$
97.4
$
250.8
$
301.2
Gross profit (loss)
$
40.6
$
(12.6
)
$
130.0
$
109.4
Gross margin
51.6
%
(12.9
)%
51.8
%
36.3
%
Adjusted to exclude the following:
Depreciation expense
1.0
0.7
1.8
1.8
Amortization expense
3.2
2.7
9.8
9.7
Stock-based compensation expense
0.2
0.5
(0.1
)
1.2
Manufacturing optimization costs
7.6
—
7.6
—
Write-off of discontinued, excess and
obsolete product
2.0
6.4
2.0
10.4
Syndeo Program
—
63.1
—
63.1
Syndeo product optimization logistics
& service costs
—
—
—
1.4
Adjusted gross profit
$
54.7
$
60.9
$
151.2
$
197.0
Adjusted gross margin
69.5
%
62.5
%
60.3
%
65.4
%
______________________
(1)
Amounts may not sum due to rounding.
The following table reconciles net loss to adjusted EBITDA for
the periods presented:
Three Months Ended September
30,
Nine Months Ended September
30,
Unaudited ($ in millions) (1)
2024
2023
2024
2023
Net sales
$
78.8
$
97.4
$
250.8
$
301.2
Net loss
$
(18.3
)
$
(73.8
)
$
(18.8
)
$
(90.7
)
Adjusted to exclude the following:
Expense (benefit) for income taxes
1.9
3.5
0.9
(2.4
)
Depreciation expense
3.1
2.5
8.5
7.0
Amortization expense
6.5
5.5
18.6
17.7
Stock-based compensation expense
7.7
8.2
20.8
20.3
Interest expense
2.5
3.4
7.9
10.3
Interest income
(4.9
)
(6.8
)
(14.4
)
(16.8
)
Other income, net
(0.1
)
(4.9
)
(33.5
)
(5.3
)
Change in fair value of warrant
liabilities
(0.4
)
(5.9
)
(3.0
)
(8.4
)
Foreign currency (gain) loss, net
(2.3
)
2.3
0.2
0.7
Manufacturing optimization costs
7.6
—
7.6
—
Write-off of discontinued, excess and
obsolete product
2.0
6.4
2.0
10.4
Syndeo Program
—
63.1
—
63.1
Syndeo product optimization logistics
& service costs
—
—
—
1.4
Litigation related costs
2.5
—
3.7
1.5
Transaction related costs
—
—
—
0.8
Severance, restructuring and other
0.2
5.5
2.5
11.3
Adjusted EBITDA
$
8.1
$
9.1
$
3.2
$
21.0
Adjusted EBITDA margin
10.2
%
9.3
%
1.3
%
7.0
%
______________________
(1)
Amounts may not sum due to rounding.
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/20241112927707/en/
Investors: IR@beautyhealth.com Press: Press@beautyhealth.com
Beauth Health (NASDAQ:SKIN)
過去 株価チャート
から 11 2024 まで 12 2024
Beauth Health (NASDAQ:SKIN)
過去 株価チャート
から 12 2023 まで 12 2024
