BeautyHealth Reports Second Quarter 2024 Financial Results
The Beauty Health Company (NASDAQ: SKIN) reported Q2 2024 financial results, with net sales of $90.6 million, down 22.9% YoY. Gross margin dropped to 45.2% from 57.8%, with net income at $0.2 million. The decline is attributed to lower equipment sales amid persistent macroeconomic pressures, especially internationally. Adjusted EBITDA was a loss of $5.2 million. The company repurchased $117.3 million of convertible senior notes. Looking ahead, revised fiscal 2024 guidance projects net sales between $325-$345 million and adjusted EBITDA between -$10 million and $0 million.
CEO Marla Beck noted increased consumable sales and aggressive steps to address challenges, including offering lower-priced devices and new financing solutions. The company aims to enhance sales capabilities, operational efficiency, and expense leverage to return to profitable growth. Cash reserves stand at $349.5 million, down from $523.0 million at year-end 2023, mainly due to debt repurchases.
La Beauty Health Company (NASDAQ: SKIN) ha riportato i risultati finanziari del secondo trimestre 2024, con vendite nette di 90,6 milioni di dollari, in calo del 22,9% rispetto all'anno precedente. Il margine lordo è sceso al 45,2% dal 57,8%, con un reddito netto di 0,2 milioni di dollari. Il calo è attribuito a minori vendite di attrezzature in un contesto macroeconomico persistente, in particolare a livello internazionale. L'EBITDA rettificato ha registrato una perdita di 5,2 milioni di dollari. L'azienda ha riacquistato note convertibili senior per un valore di 117,3 milioni di dollari. Guardando al futuro, le previsioni fiscal 2024 rivedute stimano vendite nette tra 325 e 345 milioni di dollari e un EBITDA rettificato tra -10 milioni e 0 milioni.
Il CEO Marla Beck ha sottolineato un aumento delle vendite di beni di consumo e misure aggressive per affrontare le sfide, inclusa l'offerta di dispositivi a prezzo inferiore e nuove soluzioni di finanziamento. L'azienda mira a migliorare le capacità di vendita, l'efficienza operativa e la leva delle spese per tornare a una crescita redditizia. Le riserve di liquidità ammontano a 349,5 milioni di dollari, in calo rispetto ai 523,0 milioni di dollari di fine 2023, principalmente a causa dei riacquisti di debito.
La Beauty Health Company (NASDAQ: SKIN) informó los resultados financieros del segundo trimestre de 2024, con ventas netas de 90,6 millones de dólares, una disminución del 22,9% en comparación con el año anterior. El margen bruto cayó al 45,2% desde el 57,8%, con un ingreso neto de 0,2 millones de dólares. La caída se atribuye a menores ventas de equipos en medio de presiones macroeconómicas persistentes, especialmente a nivel internacional. El EBITDA ajustado registró una pérdida de 5,2 millones de dólares. La empresa recompró bonos senior convertibles por un valor de 117,3 millones de dólares. Mirando hacia adelante, la guía fiscal revisada para 2024 proyecta ventas netas entre 325 y 345 millones de dólares y un EBITDA ajustado entre -10 millones y 0 millones.
La CEO Marla Beck destacó el aumento en las ventas de productos consumibles y pasos agresivos para abordar los desafíos, incluida la oferta de dispositivos a precios más bajos y nuevas soluciones de financiamiento. La empresa tiene como objetivo mejorar las capacidades de venta, la eficiencia operativa y la flexibilidad de gastos para regresar a un crecimiento rentable. Las reservas de efectivo ascienden a 349,5 millones de dólares, en comparación con 523,0 millones de dólares a finales de 2023, principalmente debido a las recompras de deuda.
뷰티 헬스 컴퍼니(나스닥: SKIN)는 2024년 2분기 재무 결과를 발표했으며, 순매출은 9,060만 달러로 작년 대비 22.9% 감소했습니다. 총 마진은 57.8%에서 45.2%로 감소했으며, 순이익은 20만 달러입니다. 이 하락은 지속적인 거시경제 압박, 특히 국제적으로 장비 판매가 감소한 데 기인합니다. 조정된 EBITDA는 520만 달러의 손실을 기록했습니다. 회사는 1억 1,730만 달러의 전환 우선주를 재구매했습니다. 앞으로의 전망으로는 수정된 2024 회계연도 지침에 따르면 순매출이 3억 2,500만 달러에서 3억 4,500만 달러, 조정된 EBITDA는 -1천만 달러에서 0달러 사이로 예상됩니다.
CEO 마를라 벡은 소비재 판매 증가와 도전 과제를 해결하기 위한 공격적인 조치를 언급했으며, 여기에는 저렴한 가격의 장비 제공과 새로운 자금 조달 솔루션이 포함됩니다. 회사는 수익성 있는 성장을 회복하기 위해 판매 능력, 운영 효율성과 비용 레버리지를 향상시키는 것을 목표로 하고 있습니다. 현금 보유액은 3억 4,950만 달러로, 2023년 연말의 5억 2,300만 달러에서 감소했습니다. 주로 부채 재구매로 인한 것입니다.
La Beauty Health Company (NASDAQ: SKIN) a publié ses résultats financiers pour le deuxième trimestre 2024, avec des ventes nettes de 90,6 millions de dollars, en baisse de 22,9 % par rapport à l'an dernier. La marge brute est tombée de 57,8 % à 45,2 %, tandis que le bénéfice net s'élevait à 0,2 million de dollars. Ce déclin est attribué à une baisse des ventes d'équipements dans un contexte macroéconomique difficile, en particulier à l'international. L'EBITDA ajusté a connu une perte de 5,2 millions de dollars. L'entreprise a racheté pour 117,3 millions de dollars de billets convertibles senior. En perspective, les prévisions fiscales révisées pour 2024 estiment un chiffre d'affaires net compris entre 325 et 345 millions de dollars et un EBITDA ajusté entre -10 millions et 0 million.
La PDG Marla Beck a souligné l'augmentation des ventes de produits consommables et des mesures énergiques pour s'attaquer aux défis, notamment en offrant des appareils à prix réduit et de nouvelles solutions de financement. L'entreprise vise à améliorer ses capacités de vente, son efficacité opérationnelle et sa flexibilité budgétaire pour revenir à une croissance rentable. Les réserves de liquidités s'élèvent à 349,5 millions de dollars, contre 523,0 millions de dollars à la fin de 2023, principalement en raison des rachats de dette.
Die Beauty Health Company (NASDAQ: SKIN) hat die Finanzergebnisse für das zweite Quartal 2024 veröffentlicht, mit Nettoumsätzen von 90,6 Millionen Dollar, was einem Rückgang von 22,9 % im Vergleich zum Vorjahr entspricht. Die Bruttomarge fiel von 57,8 % auf 45,2 %, während der Nettogewinn bei 0,2 Millionen Dollar lag. Der Rückgang wird auf geringere Geräteverkäufe aufgrund anhaltender makroökonomischer Druckverhältnisse, insbesondere international, zurückgeführt. Das bereinigte EBITDA wies einen Verlust von 5,2 Millionen Dollar auf. Das Unternehmen hat Wandelschuldverschreibungen im Wert von 117,3 Millionen Dollar zurückgekauft. Für die Zukunft prognostizieren die angepassten Richtlinien für das Geschäftsjahr 2024 einen Nettoumsatz zwischen 325 und 345 Millionen Dollar sowie ein bereinigtes EBITDA zwischen -10 Millionen und 0 Millionen Dollar.
CEO Marla Beck wies auf zunehmende Verkaufszahlen bei Verbrauchsgütern und aggressive Maßnahmen hin, um Herausforderungen anzugehen, einschließlich der Bereitstellung von günstigeren Geräten und neuen Finanzierungslösungen. Das Unternehmen zielt darauf ab, die Verkaufsfähigkeiten, die betriebliche Effizienz und die Kostenhebelwirkung zu verbessern, um wieder profitables Wachstum zu erreichen. Die liquiden Mittel belaufen sich auf 349,5 Millionen Dollar, ein Rückgang von 523,0 Millionen Dollar zum Ende des Jahres 2023, hauptsächlich aufgrund von Schuldenrückkäufen.
- Consumables net sales increased to $55.4 million from $51.9 million YoY.
- Net income of $0.2 million despite lower sales, primarily due to gain on repurchase of convertible senior notes.
- Aggressive measures to introduce lower-cost devices and financing solutions.
- Strong cash reserves at $349.5 million.
- Net sales decreased by 22.9% YoY to $90.6 million.
- Gross margin fell to 45.2% from 57.8%, with inventory write-downs of $13.8 million.
- Adjusted EBITDA loss was $5.2 million compared to $12.4 million in Q2 2023.
- Significant drop in delivery systems sold to 1,285 from 2,822 YoY.
- Lowered financial guidance for fiscal 2024 with net sales projected at $325-$345 million and adjusted EBITDA between -$10 million and $0 million.
Insights
BeautyHealth's Q2 2024 results reveal significant challenges, with net sales declining 22.9% year-over-year to
- Consumables net sales grew steadily, indicating ongoing demand for Hydrafacial treatments
- Operating expenses improved by nearly
$18 million or22% year-over-year - The company repurchased
$117.3 million of convertible senior notes at a discount
The revised full-year guidance (net sales of
The beauty device market is facing headwinds, as evidenced by BeautyHealth's results. Key insights include:
- Global economic pressures are impacting discretionary spending on beauty devices, particularly in international markets
- The company's large installed base (33,504 active systems) provides a foundation for recurring consumables revenue
- Hydrafacial maintains strong brand recognition, which could be leveraged for future growth
The shift towards offering lower-priced devices and financing options suggests a potential market trend towards more accessible beauty tech. This could lead to increased competition in the lower-end segment. The company's focus on operational excellence and cost-cutting measures (
BeautyHealth's Q2 results highlight the challenges faced by beauty tech companies in the current market:
- Device sales slowdown indicates potential market saturation or economic pressures affecting beauty businesses
- Steady growth in consumables (
$55.4 million , up from$51.9 million in Q2 2023) suggests a shift towards a razor-and-blade business model - Inventory write-downs of
$13.8 million point to potential overproduction or rapid technological changes
The company's focus on introducing new product innovation and improving go-to-market strategy is important for future growth. The beauty tech sector may need to adapt to changing consumer preferences and economic conditions by offering more flexible pricing models and emphasizing recurring revenue streams from consumables and treatments rather than relying heavily on device sales.
Delivers second quarter net sales of
Year-over-year operating expense improvement of nearly
Revises full year financial guidance
“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 -
Gross margin was
45.2% in Q2 2024 compared to57.8% in Q2 2023. Adjusted gross margin was49.4% in Q2 2024 compared to64.5% in Q2 2023. Gross margin and adjusted gross margin for 2024 were adversely impacted by higher inventory related charges of approximately$17 million -
Net income was
$0.2 million $3.4 million $117.3 million -
Adjusted EBITDA loss was
$(5.2) $12.4 - 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 $523.0 million - 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 84% for$98.3 million
Revised Financial Guidance as of August 2024
Third Quarter 2024 |
|
Net sales |
|
Adjusted EBITDA(1) |
( |
|
|
Fiscal Year 2024 |
|
Net sales |
|
Adjusted EBITDA(1) |
( |
__________________________ |
|
(1) See "Non-GAAP Financial Measures" below. |
Lowered financial guidance reflects the following assumptions:
- Third quarter and fiscal year financial guidance reflects continued pressure on delivery systems sales.
- Assumes no material deterioration in general market conditions or other unforeseen circumstances beyond the Company's control, such as foreign currency exchange rates.
- Excludes any unannounced acquisitions, dispositions or financings.
Regional Operational and Business Metrics
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||
Unaudited ($ in millions) (1) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Delivery Systems net sales |
|
|
|
|
|
|
|
||||
|
$ |
19.6 |
|
$ |
28.4 |
|
$ |
37.9 |
|
$ |
52.8 |
|
|
6.5 |
|
|
18.6 |
|
|
14.0 |
|
|
28.4 |
|
|
9.1 |
|
|
18.5 |
|
|
19.1 |
|
|
29.7 |
Total Delivery Systems net sales |
$ |
35.2 |
|
$ |
65.6 |
|
$ |
71.0 |
|
$ |
110.9 |
|
|
|
|
|
|
|
|
||||
Consumables net sales |
|
|
|
|
|
|
|
||||
|
$ |
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 |
|
|
|
|
|
|
|
||||
|
$ |
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 |
|
|
|
|
|
|
|
||||
|
|
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
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
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808245124/en/
Investors: IR@beautyhealth.com
Press: Press@beautyhealth.com
Source: The Beauty Health Company
FAQ
What were BeautyHealth's net sales for Q2 2024?
How did BeautyHealth's gross margin change in Q2 2024?
What was BeautyHealth's adjusted EBITDA for Q2 2024?
What is BeautyHealth's revised financial guidance for fiscal 2024?
How did BeautyHealth address macroeconomic challenges in Q2 2024?
