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Jun 30, 2023

OneSpaWorld Q2 2023 Earnings Report

OneSpaWorld's financial performance significantly improved in Q2 2023, marked by record revenues and adjusted EBITDA, driven by strong operational execution and increased health and wellness center activities.

Key Takeaways

OneSpaWorld reported a strong second quarter with a 57% increase in total revenues, reaching a record $200.5 million. Income from operations increased by $12.4 million to a record $13.4 million, and adjusted EBITDA more than doubled to a record $21.6 million. The company has increased its fiscal year 2023 revenue and adjusted EBITDA guidance, reflecting confidence in its business prospects.

Total revenues increased by 57% to $200.5 million compared to Q2 2022.

Income from operations rose to $13.4 million, a $12.4 million increase from the previous year.

Adjusted EBITDA increased to $21.6 million, more than doubling from Q2 2022.

The company ended the quarter with $50.0 million in liquidity, including cash and borrowing capacity.

Total Revenue
$201M
Previous year: $127M
+57.4%
EPS
$0.15
Previous year: $0.04
+275.0%
Adjusted EBITDA
$21.6M
Previous year: $9.1M
+137.4%
Gross Profit
$31.1M
Previous year: $17.1M
+82.1%
Cash and Equivalents
$30M
Previous year: $33.9M
-11.5%
Free Cash Flow
$20.1M
Previous year: $7.8M
+157.7%
Total Assets
$714M
Previous year: $701M
+1.9%

OneSpaWorld

OneSpaWorld

OneSpaWorld Revenue by Segment

Forward Guidance

OneSpaWorld introduces Q3 2023 guidance for revenues of $205 - $210 million and adjusted EBITDA of $21 - $23 million. It increases Fiscal 2023 revenues guidance to $770 - $790 million from $710 - $730 million and increases Fiscal 2023 adjusted EBITDA guidance to $80 - $86 million from $70 - $76 million.

Positive Outlook

  • Revenues are expected to be between $205 and $210 million for Q3 2023.
  • Adjusted EBITDA is projected to be between $21 and $23 million for Q3 2023.
  • Fiscal year 2023 revenue guidance has been increased to $770 - $790 million.
  • Fiscal year 2023 adjusted EBITDA guidance has been raised to $80 - $86 million.
  • The company expects to continue to generate positive cash flow from operations in the third quarter of 2023 and throughout fiscal year 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income