BeautyHealth Reports Third Quarter 2024 Financial Results
The Beauty Health Company (NASDAQ: SKIN) announced its Q3 2024 financial results, reporting net sales of $78.8 million, a decrease of 19.1% year-over-year. Gross margin improved to 51.6% from -12.9% in Q3 2023, driven by the absence of previous charges. Adjusted gross margin increased to 69.5%. Net loss narrowed to $18.3 million from $73.8 million in the prior year. Adjusted EBITDA was $8.1 million, down from $9.1 million in Q3 2023. The company sold 1,118 delivery systems, down from 2,140 units, reflecting a challenging macroeconomic environment. BeautyHealth revised its full-year net sales guidance to $322-$332 million and improved adjusted EBITDA guidance to -$2 to $4 million. Strategic moves included centralizing manufacturing in Long Beach and enhancing its commercial leadership.
The Beauty Health Company (NASDAQ: SKIN) ha annunciato i risultati finanziari del terzo trimestre 2024, riportando vendite nette pari a 78,8 milioni di dollari, con una diminuzione del 19,1% rispetto allo stesso periodo dell'anno precedente. Il margine lordo è migliorato al 51,6%, rispetto al -12,9% del terzo trimestre 2023, grazie all'assenza di oneri precedenti. Il margine lordo rettificato è aumentato al 69,5%. La perdita netta si è ridotta a 18,3 milioni di dollari, rispetto ai 73,8 milioni dell'anno passato. L'EBITDA rettificato è stato di 8,1 milioni di dollari, in calo rispetto ai 9,1 milioni del terzo trimestre 2023. L'azienda ha venduto 1.118 sistemi di consegna, in calo rispetto ai 2.140 unità, riflettendo un contesto macroeconomico impegnativo. BeautyHealth ha rivisto al ribasso le previsioni di vendite nette dell'anno a 322-332 milioni di dollari e ha migliorato le previsioni di EBITDA rettificato a -2 a 4 milioni di dollari. Le mosse strategiche hanno incluso la centralizzazione della produzione a Long Beach e il potenziamento della sua leadership commerciale.
The Beauty Health Company (NASDAQ: SKIN) anunció sus resultados financieros del tercer trimestre de 2024, informando ventas netas de 78,8 millones de dólares, una disminución del 19,1% en comparación con el año anterior. El margen bruto mejoró al 51,6%, desde el -12,9% en el tercer trimestre de 2023, impulsado por la ausencia de cargos previos. El margen bruto ajustado aumentó al 69,5%. La pérdida neta se redujo a 18,3 millones de dólares, desde los 73,8 millones del año pasado. El EBITDA ajustado fue de 8,1 millones de dólares, disminuyendo desde los 9,1 millones del tercer trimestre de 2023. La compañía vendió 1,118 sistemas de entrega, una caída desde las 2,140 unidades, reflejando un entorno macroeconómico desafiante. BeautyHealth revisó su guía de ventas netas para el año completo a 322-332 millones de dólares y mejoró la guía de EBITDA ajustado a -2 a 4 millones de dólares. Los movimientos estratégicos incluyeron la centralización de la fabricación en Long Beach y el fortalecimiento de su liderazgo comercial.
The Beauty Health Company (NASDAQ: SKIN)는 2024년 3분기 재무 결과를 발표하며 순매출이 7880만 달러로 작년 대비 19.1% 감소했다고 보고했습니다. 총 마진은 2023년 3분기 -12.9%에서 51.6%로 개선되었으며, 이는 이전의 비용 누락 덕분입니다. 조정된 총 마진은 69.5%로 증가했습니다. 순손실은 작년 7380만 달러에서 1830만 달러로 줄어들었습니다. 조정된 EBITDA는 810만 달러로, 2023년 3분기 910만 달러에서 감소했습니다. 회사는 2,140대에서 1,118대의 배송 시스템을 판매했으며, 이는 어려운 거시경제 환경을 반영합니다. BeautyHealth는 연간 순매출 목표를 3억 2200만~3억 3200만 달러로 하향 조정하고 조정된 EBITDA 목표를 -200만 달러에서 400만 달러로 상향 조정했습니다. 전략적 조치에는 롱비치에서 제조를 중앙집중화하고 상업적 리더십을 강화하는 것이 포함되었습니다.
The Beauty Health Company (NASDAQ: SKIN) a annoncé ses résultats financiers du troisième trimestre 2024, reporting des ventes nettes de 78,8 millions de dollars, soit une baisse de 19,1 % par rapport à l'année précédente. La marge brute s'est améliorée à 51,6 %, contre -12,9 % au troisième trimestre 2023, grâce à l'absence de charges antérieures. La marge brute ajustée a augmenté à 69,5 %. La perte nette a diminué à 18,3 millions de dollars contre 73,8 millions l'année précédente. L'EBITDA ajusté était de 8,1 millions de dollars, en baisse par rapport à 9,1 millions de dollars au troisième trimestre 2023. La société a vendu 1 118 systèmes de livraison, en baisse par rapport à 2 140 unités, ce qui reflète un environnement macroéconomique difficile. BeautyHealth a révisé ses prévisions de ventes nettes pour l'année entière à 322-332 millions de dollars et a amélioré ses prévisions d'EBITDA ajusté à -2 à 4 millions de dollars. Les actions stratégiques comprenaient la centralisation de la fabrication à Long Beach et le renforcement de son leadership commercial.
The Beauty Health Company (NASDAQ: SKIN) hat ihre Finanzzahlen für das 3. Quartal 2024 bekannt gegeben und berichtet von Nettoumsätzen in Höhe von 78,8 Millionen Dollar, was einem Rückgang von 19,1 % im Vergleich zum Vorjahr entspricht. Die Bruttomarge verbesserte sich auf 51,6 % von -12,9 % im 3. Quartal 2023, bedingt durch das Fehlen vorheriger Kosten. Die bereinigte Bruttomarge stieg auf 69,5 %. Der Nettoverlust verringerte sich auf 18,3 Millionen Dollar gegenüber 73,8 Millionen im Vorjahr. Das bereinigte EBITDA lag bei 8,1 Millionen Dollar, im Vergleich zu 9,1 Millionen Dollar im 3. Quartal 2023. Das Unternehmen verkaufte 1.118 Liefersysteme, ein Rückgang von 2.140 Einheiten, was ein herausforderndes makroökonomisches Umfeld widerspiegelt. BeautyHealth hat die Prognose für den Nettoumsatz für das gesamte Jahr auf 322-332 Millionen Dollar gesenkt und die Prognose für das bereinigte EBITDA auf -2 bis 4 Millionen Dollar verbessert. Zu den strategischen Maßnahmen gehörten die Zentralisierung der Herstellung in Long Beach und die Verbesserung der kommerziellen Führung.
- Gross margin improved to 51.6% from -12.9% in Q3 2023.
- Adjusted gross margin increased to 69.5% from 62.5% in Q3 2023.
- Net loss reduced to $18.3 million from $73.8 million in Q3 2023.
- Adjusted EBITDA margin improved to 10.2% from 9.3% in Q3 2023.
- Net sales decreased by 19.1% year-over-year.
- Delivery systems net sales dropped significantly, contributing to overall revenue decline.
- Full-year net sales guidance revised downward due to continued pressure on delivery systems sales.
Insights
Q3 2024 presents a mixed financial picture for BeautyHealth. Net sales declined
The strategic decision to centralize manufacturing in Long Beach and terminate Chinese manufacturing partnerships signals a focus on operational efficiency. While this resulted in
The balance sheet remains solid with
Market dynamics reveal shifting trends in BeautyHealth's business model. The growing installed base of 34,162 systems (up from 30,074 YoY) suggests market penetration continues, but at a slower pace. Regional performance shows notable variations - Americas remained relatively stable while APAC saw significant declines, particularly in delivery systems.
The successful launch of Hydralock HA Booster and growth in consumables indicates strong treatment demand despite economic headwinds. This suggests the core value proposition remains intact, though capital equipment sales face challenges in the current macro environment. The reorganization of the sales structure and new commercial leadership appointments signal recognition of needed changes in go-to-market strategy.
Delivers third quarter net sales of
Delivers improved profitability as strategic initiatives start to take hold
Successfully launches Hydralock HA Booster
“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
For the quarter, net sales of
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 -
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 $8 million -
Adjusted gross margin was
69.5% in Q3 2024 compared to62.5% 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 $(73.8) million -
Adjusted EBITDA was
$8.1 $9.1 - 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 $523.0 million - The Company had approximately 7 million private placement warrants and approximately 124.1 million shares of Class A common stock outstanding as of September 30, 2024.
Revised Financial Guidance as of November 2024
Fiscal Year 2024 |
|
Net sales |
|
Adjusted EBITDA(1) |
( |
______________________ |
||
(1) |
See "Non-GAAP Financial Measures" below. |
|
Revised financial guidance reflects the following assumptions:
- Revised full-year net sales guidance reflects continued downward pressure on delivery systems sales.
- Revised full-year adjusted EBITDA guidance reflects the improved Q3 2024 gross margin performance and reduction in operational spend.
- Assumes no material deterioration in general market conditions or other unforeseen circumstances beyond the Company's control, such as foreign currency exchange rates.
- Excludes any unannounced acquisitions, dispositions or financings.
Regional Operational and Business Metrics
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|||||||||
Unaudited ($ in millions) (1) |
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||
Delivery Systems net sales |
|
|
|
|
|
|
|
|||||
|
$ |
16.2 |
|
$ |
20.3 |
|
$ |
54.1 |
|
$ |
73.1 |
|
|
|
4.9 |
|
|
18.0 |
|
|
18.9 |
|
|
46.4 |
|
|
|
6.5 |
|
|
12.7 |
|
|
25.6 |
|
|
42.4 |
|
Total Delivery Systems net sales |
$ |
27.6 |
|
$ |
51.0 |
|
$ |
98.6 |
|
$ |
162.0 |
|
|
|
|
|
|
|
|
|
|||||
Consumables net sales |
|
|
|
|
|
|
|
|||||
|
$ |
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 |
|
|
|
|
|
|
|
|||||
|
$ |
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 |
|
|
|
|
|
|
|
|||||
|
|
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
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
View source version on businesswire.com: https://www.businesswire.com/news/home/20241112927707/en/
Investors: IR@beautyhealth.com
Press: Press@beautyhealth.com
Source: The Beauty Health Company
FAQ
What were BeautyHealth's Q3 2024 net sales?
How did BeautyHealth's gross margin change in Q3 2024?
What was BeautyHealth's net loss in Q3 2024?
How many delivery systems did BeautyHealth sell in Q3 2024?
What is BeautyHealth's revised full-year 2024 net sales guidance?
