BeautyHealth Reports Full Year and Fourth Quarter 2023 Financial Results
- None.
- Decrease in Q4 net sales by 1.3% YoY due to challenges in the Americas.
- Decline in gross margin from 67.8% to 47.2% in Q4 2023.
- Net loss of $(9.4) million in Q4 2023 compared to net income of $6.5 million in Q4 2022.
- Adjusted EBITDA decreased to $3.4 million in Q4 2023 from $17.6 million in Q4 2022.
- Gross margin decline from 68.0% in 2022 to 39.0% in 2023.
- Net loss of $(100.1) million in 2023 compared to net income of $44.2 million in 2022.
- Adjusted EBITDA decreased to $24.3 million in 2023 from $46.1 million in 2022.
Insights
The Beauty Health Company's financial results for the full year and fourth quarter of 2023 indicate a mixed performance, with a year-over-year growth of 8.8% in net sales but a decline in fourth-quarter sales by 1.3%. The global expansion, particularly in the Asia-Pacific and Europe, the Middle East and Africa regions, signifies a strategic shift towards international markets, potentially diversifying the company's revenue streams and reducing reliance on the Americas. However, the decrease in equipment sales in the Americas raises concerns about market saturation or competitive pressures in the region.
The gross margin contraction from 68.0% in 2022 to 39.0% in 2023, alongside a significant net loss of $100.1 million compared to the previous year's net income, suggests operational challenges. The company's financial health is further underscored by a reduction in cash and cash equivalents and share repurchases, which may impact liquidity. Investors should consider the company's long-term strategy to address margin pressures and the sustainability of its growth in international markets.
BeautyHealth's adjusted EBITDA shows a concerning decrease, dropping from $46.1 million in 2022 to $24.3 million in 2023, which indicates underlying operational issues affecting profitability. The inventory write-downs and charges associated with the Syndeo Program are of particular note, as they significantly impacted gross margins. The share repurchase authorization and subsequent buybacks reflect a potential confidence by management in the intrinsic value of the company, yet they also represent a cash outflow during a time of net losses.
Investors should scrutinize the company's ability to manage costs and improve margins in the coming fiscal year. The forward guidance suggests a conservative outlook with flat to low-single digit percentage growth in net sales and an adjusted EBITDA of over $40 million, which if achieved, could signal a turnaround in operational efficiency.
It is important to note the use of non-GAAP financial measures such as adjusted gross profit and adjusted EBITDA. While these measures can provide additional insights into the company's operational performance, they are not standardized across the industry and may exclude significant expenses that are important for a complete understanding of financial health. Investors should consider these adjustments critically and examine how these measures compare to GAAP results to gain a full picture of the company's performance.
Moreover, the mention of immaterial revisions to financial statements could warrant attention, as it suggests potential inaccuracies in past reporting. Although characterized as immaterial, any revisions to financial statements could impact investor trust and warrant a closer look to ensure that the financial controls and reporting mechanisms are robust and transparent.
Delivers net sales of
"To close 2023, we delivered fourth quarter financial results consistent with the expectations we outlined on our last earnings call,” said BeautyHealth Chief Executive Officer Marla Beck. “While the results reflect a necessary operational reset, the underlying strength of our business remains—a clinically proven treatment, passionate provider community, unique partner portfolio, beloved consumer brand, and growing addressable market. I am confident in the still-untapped global opportunity for BeautyHealth.”
Key Operational and Business Metrics
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
Unaudited ($ in millions) (2) |
|
2023 |
|
|
|
2022(1 |
) |
|
|
2023 |
|
|
|
2022(1 |
) |
Delivery Systems net sales |
$ |
44.6 |
|
|
$ |
50.7 |
|
|
$ |
206.6 |
|
|
$ |
206.2 |
|
Consumables net sales |
|
52.2 |
|
|
|
47.4 |
|
|
|
191.4 |
|
|
|
159.6 |
|
Total net sales |
$ |
96.8 |
|
|
$ |
98.1 |
|
|
$ |
398.0 |
|
|
$ |
365.9 |
|
Gross profit |
$ |
45.7 |
|
|
$ |
66.5 |
|
|
$ |
155.1 |
|
|
$ |
248.8 |
|
Gross margin |
|
47.2 |
% |
|
|
67.8 |
% |
|
|
39.0 |
% |
|
|
68.0 |
% |
Adjusted gross profit(3) |
$ |
52.8 |
|
|
$ |
72.2 |
|
|
$ |
249.8 |
|
|
$ |
265.6 |
|
Adjusted gross margin(3) |
|
54.6 |
% |
|
|
73.6 |
% |
|
|
62.8 |
% |
|
|
72.6 |
% |
Net (loss) income |
$ |
(9.4 |
) |
|
$ |
6.5 |
|
|
$ |
(100.1 |
) |
|
$ |
44.2 |
|
Adjusted EBITDA(3) |
$ |
3.4 |
|
|
$ |
17.6 |
|
|
$ |
24.3 |
|
|
$ |
46.1 |
|
Adjusted EBITDA margin(3) |
|
3.5 |
% |
|
|
17.9 |
% |
|
|
6.1 |
% |
|
|
12.6 |
% |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||
Unaudited |
2023 |
|
2022 |
|
2023 |
|
2022 |
New delivery systems sold |
1,210 |
|
1,882 |
|
7,013 |
|
6,699 |
Trade-up delivery systems sold |
341 |
|
185 |
|
1,274 |
|
1,793 |
Total delivery systems sold |
1,551 |
|
2,067 |
|
8,287 |
|
8,492 |
Active install base |
31,446 |
|
25,336 |
|
31,446 |
|
25,336 |
__________________________
(1) Reflects the impact of immaterial revisions to the financial statements.
(2) Amounts may not sum due to rounding.
(3) See "Non-GAAP Financial Measures" below.
Fourth Quarter Financial Highlights
-
Net sales were
$96.8 million Americas largely offset by growth in APAC and EMEA.
-
Gross margin was
47.2% in Q4 2023 compared to67.8% in Q4 2022. Adjusted gross margin was54.6% in Q4 2023 compared to73.6% in Q4 2022. Gross margin and adjusted gross margin were adversely impacted by higher inventory related charges and higher product and warranty costs.
-
Net loss was
$(9.4) million $6.5 million
-
Adjusted EBITDA was
$3.4 million $17.6 million
-
The Company placed 1,551 delivery systems during the quarter compared to 2,067 in the prior year period; challenges in the
Americas and EMEA were partially offset by growth in APAC.
Full Year Financial Highlights
-
Net sales were
$398.0 million 8.8% compared to the prior year period due to growth in APAC and EMEA.
-
Gross margin was
39.0% in 2023 compared to68.0% in 2022. Gross margin was adversely impacted by a$65.2 million 62.8% in 2023 compared to72.6% in 2022, due to the aforementioned factors, excluding the Syndeo Program.
-
Net loss was
$(100.1) million $44.2 million $78.3 million
-
Adjusted EBITDA was
$24.3 million $46.1 million
-
The Company placed 8,287 delivery systems in 2023 compared to 8,492 in the prior year, primarily due to challenges in the
Americas nearly offset by strength across APAC and EMEA.
Balance Sheet and Cash Flow Highlights
-
Cash and cash equivalents were approximately
$523.0 million $568.2 million
-
The Company had approximately 7 million private placement warrants and approximately 122.9 million shares of Class A common stock outstanding as of December 31, 2023. In September 2023, the Company announced a
$100.0 million $30.2 million
-
In January 2024, the Company redeemed
$75.0 million 77% for$57.8 million
Financial Guidance as of March 2024
First Quarter 2024 |
|
Net sales |
|
Adjusted EBITDA(1) |
( |
|
|
Fiscal Year 2024 |
|
Net sales |
Flat to low-single digit % growth |
Adjusted EBITDA(1) |
> |
__________________________
(1) See "Non-GAAP Financial Measures" below.
Financial guidance reflects the following assumptions:
- First quarter financial guidance reflects our seasonally lowest sales quarter of the year and investments in sales and marketing spend in the quarter.
- Assumes no material deterioration in general market conditions or other unforeseen circumstances beyond the Company's control, such as foreign currency exchange rates.
- Excludes any unannounced acquisitions, dispositions or financings.
Regional Operational and Business Metrics
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||
Unaudited ($ in millions) (1) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
Delivery Systems net sales |
|
|
|
|
|
|
|
||||
|
$ |
21.8 |
|
$ |
32.7 |
|
$ |
95.0 |
|
$ |
134.7 |
|
|
13.0 |
|
|
7.8 |
|
|
59.4 |
|
|
31.4 |
|
|
9.8 |
|
|
10.2 |
|
|
52.2 |
|
|
40.1 |
Total Delivery Systems net sales |
$ |
44.6 |
|
$ |
50.7 |
|
$ |
206.6 |
|
$ |
206.2 |
|
|
|
|
|
|
|
|
||||
Consumables net sales |
|
|
|
|
|
|
|
||||
|
$ |
37.5 |
|
$ |
32.2 |
|
$ |
132.7 |
|
$ |
108.5 |
APAC |
|
5.7 |
|
|
8.1 |
|
|
22.8 |
|
|
22.9 |
EMEA |
|
9.0 |
|
|
7.1 |
|
|
35.9 |
|
|
28.2 |
Total Consumables net sales |
$ |
52.2 |
|
$ |
47.4 |
|
$ |
191.4 |
|
$ |
159.6 |
|
|
|
|
|
|
|
|
||||
Total net sales |
|
|
|
|
|
|
|
||||
|
$ |
59.4 |
|
$ |
64.9 |
|
$ |
227.7 |
|
$ |
243.2 |
APAC |
|
18.7 |
|
|
15.9 |
|
|
82.2 |
|
|
54.3 |
EMEA |
|
18.8 |
|
|
17.3 |
|
|
88.1 |
|
|
68.3 |
Total net sales |
$ |
96.8 |
|
$ |
98.1 |
|
$ |
398.0 |
|
$ |
365.9 |
|
|
|
|
|
|
|
|
||||
Total delivery systems sold |
|
|
|
|
|
|
|
||||
|
|
758 |
|
|
1,211 |
|
|
3,603 |
|
|
5,280 |
APAC |
|
450 |
|
|
399 |
|
|
2,392 |
|
|
1,439 |
EMEA |
|
343 |
|
|
457 |
|
|
2,292 |
|
|
1,773 |
Total delivery systems sold |
|
1,551 |
|
|
2,067 |
|
|
8,287 |
|
|
8,492 |
|
|
|
|
|
|
|
|
||||
Trade-up delivery systems sold |
|
|
|
|
|
|
|
||||
|
|
82 |
|
|
185 |
|
|
349 |
|
|
1,793 |
APAC |
|
214 |
|
|
— |
|
|
626 |
|
|
— |
EMEA |
|
45 |
|
|
— |
|
|
299 |
|
|
— |
Total trade-up delivery systems sold |
|
341 |
|
|
185 |
|
|
1,274 |
|
|
1,793 |
__________________________
(1) Amounts may not sum due to rounding.
Conference Call
BeautyHealth will host a conference call on Tuesday, March 12, 2024, at 4:30 p.m. ET to review its fourth quarter and full year 2023 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
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 write-off of discontinued, excess and obsolete product, Syndeo Program and Syndeo product optimization logistics & service costs.
Adjusted EBITDA is calculated as net (loss) income excluding the effects of expense (benefit) for income taxes; depreciation expense; amortization expense; stock-based compensation expense; interest expense; interest income; other expense (income), net; change in fair value of warrant liability; foreign currency (gain) loss, net; loss on disposal of assets; transaction related costs; write-off of discontinued, excess and obsolete product; litigation related costs; Syndeo Program; Syndeo product optimization logistics and service costs; and severance, restructuring and other.
The Company does not provide a reconciliation of its fiscal 2023 adjusted EBITDA margin guidance to net (loss) income, 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 2023 adjusted EBITDA margin 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 Consolidated Statements of Comprehensive Income (Loss) (1) ($ in millions, except share and per share amounts) (Unaudited) |
|||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2023 |
|
|
|
2022(2 |
) |
|
|
2023 |
|
|
|
2022(2 |
) |
Net sales |
$ |
96.8 |
|
|
$ |
98.1 |
|
|
$ |
398.0 |
|
|
$ |
365.9 |
|
Cost of sales |
|
51.1 |
|
|
|
31.6 |
|
|
|
242.9 |
|
|
|
117.1 |
|
Gross profit |
|
45.7 |
|
|
|
66.5 |
|
|
|
155.1 |
|
|
|
248.8 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Selling and marketing |
|
32.0 |
|
|
|
39.0 |
|
|
|
144.5 |
|
|
|
160.1 |
|
Research and development |
|
3.0 |
|
|
|
1.4 |
|
|
|
10.1 |
|
|
|
8.4 |
|
General and administrative |
|
29.0 |
|
|
|
28.5 |
|
|
|
131.4 |
|
|
|
106.1 |
|
Total operating expenses |
|
64.0 |
|
|
|
68.9 |
|
|
|
286.0 |
|
|
|
274.6 |
|
Loss from operations |
|
(18.4 |
) |
|
|
(2.4 |
) |
|
|
(130.9 |
) |
|
|
(25.8 |
) |
Interest expense |
|
3.4 |
|
|
|
3.4 |
|
|
|
13.6 |
|
|
|
13.4 |
|
Interest income |
|
(6.4 |
) |
|
|
(5.6 |
) |
|
|
(23.2 |
) |
|
|
(9.2 |
) |
Other expense (income), net |
|
0.1 |
|
|
|
1.3 |
|
|
|
(5.2 |
) |
|
|
1.7 |
|
Change in fair value of warrant liabilities |
|
(3.6 |
) |
|
|
(6.8 |
) |
|
|
(11.9 |
) |
|
|
(78.3 |
) |
Foreign currency transaction (gain) loss, net |
|
(3.1 |
) |
|
|
(0.5 |
) |
|
|
(2.4 |
) |
|
|
1.3 |
|
(Loss) income before provision for income taxes |
|
(8.8 |
) |
|
|
5.8 |
|
|
|
(101.9 |
) |
|
|
45.3 |
|
Income tax expense (benefit) |
|
0.6 |
|
|
|
(0.8 |
) |
|
|
(1.8 |
) |
|
|
1.1 |
|
Net (loss) income |
|
(9.4 |
) |
|
|
6.5 |
|
|
|
(100.1 |
) |
|
|
44.2 |
|
Comprehensive (loss) income, net of tax: |
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments |
|
2.1 |
|
|
|
2.2 |
|
|
|
1.5 |
|
|
|
(3.3 |
) |
Comprehensive (loss) income |
$ |
(7.3 |
) |
|
$ |
8.7 |
|
|
$ |
(98.6 |
) |
|
$ |
41.0 |
|
Net (loss) income per share |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(0.07 |
) |
|
$ |
0.05 |
|
|
$ |
(0.76 |
) |
|
$ |
0.30 |
|
Diluted |
$ |
(0.07 |
) |
|
$ |
0.05 |
|
|
$ |
(0.76 |
) |
|
$ |
(0.23 |
) |
Weighted average common shares outstanding |
|
|
|
|
|
|
|
||||||||
Basic |
|
128,716,355 |
|
|
|
138,198,781 |
|
|
|
131,680,605 |
|
|
|
147,554,090 |
|
Diluted |
|
128,716,355 |
|
|
|
138,198,781 |
|
|
|
131,680,605 |
|
|
|
148,506,312 |
|
__________________________
- Amounts may not sum due to rounding.
- Reflects the impact of immaterial revisions to the financial statements.
The Beauty Health Company Consolidated Balance Sheets (1) ($ in millions) (Unaudited) |
|||||||
|
December 31, 2023 |
|
December 31, 2022 (2) |
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
523.0 |
|
|
$ |
568.2 |
|
Accounts receivable, net |
|
54.7 |
|
|
|
76.5 |
|
Inventories |
|
91.3 |
|
|
|
109.7 |
|
Income tax receivable |
|
0.3 |
|
|
|
1.3 |
|
Prepaid expenses and other current assets |
|
28.9 |
|
|
|
27.6 |
|
Total current assets |
|
698.3 |
|
|
|
783.3 |
|
Property and equipment, net |
|
14.2 |
|
|
|
18.2 |
|
Right-of-use assets, net |
|
12.1 |
|
|
|
15.6 |
|
Intangible assets, net |
|
62.1 |
|
|
|
46.4 |
|
Goodwill |
|
125.8 |
|
|
|
124.6 |
|
Deferred income tax assets, net |
|
0.5 |
|
|
|
0.8 |
|
Other assets |
|
16.0 |
|
|
|
14.2 |
|
TOTAL ASSETS |
$ |
929.1 |
|
|
$ |
1,003.1 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
44.8 |
|
|
$ |
28.5 |
|
Accrued payroll-related expenses |
|
22.0 |
|
|
|
21.7 |
|
Syndeo Program reserves |
|
21.0 |
|
|
|
— |
|
Lease liabilities, current |
|
4.6 |
|
|
|
5.0 |
|
Income tax payable |
|
2.8 |
|
|
|
1.4 |
|
Other accrued expenses |
|
19.8 |
|
|
|
15.2 |
|
Total current liabilities |
|
115.0 |
|
|
|
71.7 |
|
Lease liabilities, non-current |
|
9.3 |
|
|
|
12.7 |
|
Deferred income tax liabilities, net |
|
0.7 |
|
|
|
2.0 |
|
Warrant liabilities |
|
3.6 |
|
|
|
15.5 |
|
Convertible senior notes, net |
|
738.4 |
|
|
|
734.1 |
|
Other long-term liabilities |
|
2.8 |
|
|
|
— |
|
TOTAL LIABILITIES |
$ |
869.7 |
|
|
$ |
836.0 |
|
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Class A Common Stock |
$ |
— |
|
|
$ |
— |
|
Additional paid-in capital |
|
541.3 |
|
|
|
550.3 |
|
Accumulated other comprehensive loss |
|
(3.0 |
) |
|
|
(4.5 |
) |
Accumulated deficit |
|
(478.9 |
) |
|
|
(378.8 |
) |
Total stockholders’ equity |
$ |
59.4 |
|
|
$ |
167.1 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
929.1 |
|
|
$ |
1,003.1 |
|
__________________________
- Amounts may not sum due to rounding.
- Reflects the impact of immaterial revisions to the financial statements.
The Beauty Health Company Consolidated Statement of Cash Flows (1) ($ in millions) (Unaudited) |
|||||||
|
Year Ended December 31, |
||||||
|
|
2023 |
|
|
|
2022 (2 |
) |
Cash and cash equivalents at beginning of period |
$ |
568.2 |
|
|
$ |
901.9 |
|
Operating activities: |
|
|
|
||||
Net (loss) income |
|
(100.1 |
) |
|
|
44.2 |
|
Non-cash adjustments |
|
98.5 |
|
|
|
(5.6 |
) |
Change in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
16.5 |
|
|
|
(32.0 |
) |
Inventories |
|
(22.6 |
) |
|
|
(84.4 |
) |
Income taxes receivable |
|
(3.7 |
) |
|
|
3.9 |
|
Prepaid expenses and other current assets |
|
(3.3 |
) |
|
|
(17.7 |
) |
Accounts payable |
|
15.8 |
|
|
|
(0.3 |
) |
Accrued payroll and other expenses |
|
26.9 |
|
|
|
(3.4 |
) |
Income taxes payable |
|
1.3 |
|
|
|
0.7 |
|
Other, net |
|
(7.6 |
) |
|
|
(12.1 |
) |
Net cash provided by (used for) operating activities |
|
21.8 |
|
|
|
(106.6 |
) |
Net cash used for investing activities |
|
(31.5 |
) |
|
|
(18.9 |
) |
Net cash used for financing activities |
|
(37.4 |
) |
|
|
(205.2 |
) |
Net decrease in cash and cash equivalents |
|
(47.2 |
) |
|
|
(330.7 |
) |
Effect of foreign currency translation |
|
2.0 |
|
|
|
(3.0 |
) |
Cash and cash equivalents at end of period |
$ |
523.0 |
|
|
$ |
568.2 |
|
__________________________
- Amounts may not sum due to rounding.
- Reflects the impact of immaterial revisions to the financial statements.
The following table reconciles gross profit to adjusted gross profit for the periods presented:
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
Unaudited ($ in millions) (2) |
|
2023 |
|
|
|
2022(1 |
) |
|
|
2023(3 |
) |
|
|
2022(1 |
) |
Net sales |
$ |
96.8 |
|
|
$ |
98.1 |
|
|
$ |
398.0 |
|
|
$ |
365.9 |
|
|
|
|
|
|
|
|
|
||||||||
Gross profit |
$ |
45.7 |
|
|
$ |
66.5 |
|
|
$ |
155.1 |
|
|
$ |
248.8 |
|
Gross margin |
|
47.2 |
% |
|
|
67.8 |
% |
|
|
39.0 |
% |
|
|
68.0 |
% |
|
|
|
|
|
|
|
|
||||||||
Adjusted to exclude the following: |
|
|
|
|
|
|
|
||||||||
Depreciation expense |
|
0.5 |
|
|
|
0.5 |
|
|
|
2.4 |
|
|
|
2.1 |
|
Amortization expense |
|
4.2 |
|
|
|
2.6 |
|
|
|
13.9 |
|
|
|
9.5 |
|
Stock-based compensation expense |
|
0.3 |
|
|
|
0.2 |
|
|
|
1.5 |
|
|
|
0.8 |
|
Write-off of discontinued, excess and obsolete product |
|
— |
|
|
|
— |
|
|
|
10.4 |
|
|
|
2.0 |
|
Syndeo Program |
|
2.1 |
|
|
|
— |
|
|
|
65.2 |
|
|
|
— |
|
Syndeo product optimization logistics & service costs |
|
— |
|
|
|
2.4 |
|
|
|
1.4 |
|
|
|
2.4 |
|
Adjusted gross profit |
$ |
52.8 |
|
|
$ |
72.2 |
|
|
$ |
249.8 |
|
|
$ |
265.6 |
|
Adjusted gross margin |
|
54.6 |
% |
|
|
73.6 |
% |
|
|
62.8 |
% |
|
|
72.6 |
% |
__________________________
- Reflects the impact of immaterial revisions to the financial statements.
- Amounts may not sum due to rounding.
- Reflects the removal of the accrual for annual cash incentives in prior periods for comparability purposes.
The following table reconciles net (loss) income to adjusted EBITDA for the periods presented:
|
Three Months Ended December 31, |
|
Year ended December 31, |
||||||||||||
Unaudited ($ in millions) (2) |
|
2023 |
|
|
|
2022(1 |
) |
|
|
2023(3 |
) |
|
|
2022(1 |
) |
Net sales |
$ |
96.8 |
|
|
$ |
98.1 |
|
|
$ |
398.0 |
|
|
$ |
365.9 |
|
|
|
|
|
|
|
|
|
||||||||
Net (loss) income |
$ |
(9.4 |
) |
|
$ |
6.5 |
|
|
$ |
(100.1 |
) |
|
$ |
44.2 |
|
Adjusted to exclude the following: |
|
|
|
|
|
|
|
||||||||
Expense (benefit) for income taxes |
|
0.6 |
|
|
|
(0.8 |
) |
|
|
(1.8 |
) |
|
|
1.1 |
|
Depreciation expense |
|
4.3 |
|
|
|
1.9 |
|
|
|
11.3 |
|
|
|
7.2 |
|
Amortization expense |
|
5.6 |
|
|
|
4.1 |
|
|
|
23.3 |
|
|
|
15.7 |
|
Stock-based compensation expense |
|
2.3 |
|
|
|
7.6 |
|
|
|
22.5 |
|
|
|
28.5 |
|
Interest expense |
|
3.4 |
|
|
|
3.4 |
|
|
|
13.6 |
|
|
|
13.4 |
|
Interest income |
|
(6.4 |
) |
|
|
(5.6 |
) |
|
|
(23.2 |
) |
|
|
(9.2 |
) |
Other expense (income), net |
|
0.1 |
|
|
|
1.3 |
|
|
|
(5.2 |
) |
|
|
1.7 |
|
Change in fair value of warrant liability |
|
(3.6 |
) |
|
|
(6.8 |
) |
|
|
(11.9 |
) |
|
|
(78.3 |
) |
Foreign currency (gain) loss, net |
|
(3.1 |
) |
|
|
(0.5 |
) |
|
|
(2.4 |
) |
|
|
1.3 |
|
Loss on disposal of assets |
|
— |
|
|
|
0.5 |
|
|
|
0.1 |
|
|
|
5.2 |
|
Transaction related costs |
|
— |
|
|
|
— |
|
|
|
0.8 |
|
|
|
3.1 |
|
Write-off of discontinued, excess and obsolete product |
|
— |
|
|
|
— |
|
|
|
10.4 |
|
|
|
2.0 |
|
Litigation related costs |
|
— |
|
|
|
2.8 |
|
|
|
1.5 |
|
|
|
3.8 |
|
Syndeo Program |
|
2.1 |
|
|
|
— |
|
|
|
65.2 |
|
|
|
— |
|
Syndeo product optimization logistics & service costs |
|
— |
|
|
|
2.4 |
|
|
|
1.4 |
|
|
|
2.4 |
|
Severance, restructuring and other |
|
7.4 |
|
|
|
0.6 |
|
|
|
18.7 |
|
|
|
4.0 |
|
Adjusted EBITDA |
$ |
3.4 |
|
|
$ |
17.6 |
|
|
$ |
24.3 |
|
|
$ |
46.1 |
|
Adjusted EBITDA margin |
|
3.5 |
% |
|
|
17.9 |
% |
|
|
6.1 |
% |
|
|
12.6 |
% |
__________________________
- Reflects the impact of immaterial revisions to the financial statements.
- Amounts may not sum due to rounding.
- 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, 2022 filed with the
View source version on businesswire.com: https://www.businesswire.com/news/home/20240312515027/en/
Investors: IR@beautyhealth.com
Press: Press@beautyhealth.com
Source: The Beauty Health Company
FAQ
What were BeautyHealth's full-year net sales for 2023?
What was the net sales figure for the fourth quarter of 2023?
How many delivery systems were sold in the fourth quarter of 2023?
What was the gross margin in Q4 2023?
What was the adjusted EBITDA for Q4 2023?
How did the company's net income change in Q4 2023 compared to Q4 2022?
What were the key operational and business metrics for the fourth quarter of 2023?
What were the financial guidance figures provided for the first quarter of 2024?
What was the impact on the gross margin in 2023 compared to 2022?
How many delivery systems were placed in 2023?
