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Mar 31, 2023

Beauty Health Q1 2023 Earnings Report

Reported double-digit net sales growth and raised fiscal 2023 net sales guidance due to strong consumer demand.

Key Takeaways

BeautyHealth reported a 14% increase in net sales to $86.3 million, driven by strong consumer demand for Hydrafacial treatments. The company raised its fiscal year 2023 net sales guidance to $460 - $480 million and reaffirmed its adjusted EBITDA margin guidance of 18% - 20%.

Net sales increased by 14% year-over-year, reaching $86.3 million.

Consumables net sales grew by 21% year-over-year globally, with significant growth in the Americas (+34%) and EMEA (+13%).

Delivery system sales increased by 9% year-over-year.

The company raised its fiscal year 2023 net sales guidance to $460 - $480 million.

Total Revenue
$86.3M
Previous year: $75.4M
+14.4%
EPS
-$0.04
Previous year: -$0.055
-27.3%
Gross Margin
62.7%
Previous year: 68.9%
-9.0%
Adjusted EBITDA
-$500K
Previous year: $2.22M
-122.6%
Adjusted EBITDA Margin
-0.6%
Previous year: 2.9%
-120.7%
Gross Profit
$54.1M
Previous year: $51.9M
+4.2%
Cash and Equivalents
$532M
Previous year: $859M
-38.0%
Free Cash Flow
-$15.3M
Previous year: -$41.6M
-63.2%
Total Assets
$995M
Previous year: $1.2B
-17.0%

Beauty Health

Beauty Health

Beauty Health Revenue by Segment

Beauty Health Revenue by Geographic Location

Forward Guidance

The company raised its fiscal year 2023 net sales guidance to a range of $460 to $480 million due to continued strength in consumer demand, strong Syndeo traction globally, and a re-acceleration in China. The adjusted EBITDA margin is expected to be 18%-20%.

Positive Outlook

  • Continued strength in consumer demand
  • Strong Syndeo traction globally
  • Re-acceleration in China
  • No material deterioration in general market conditions or other unforeseen circumstances beyond our control.
  • Assumes a largely re-opened global market

Challenges Ahead

  • Assumes no material deterioration in general market conditions or other unforeseen circumstances beyond our control.
  • Excludes any unannounced acquisitions, dispositions or financings during 2023.
  • Assumes a largely re-opened global market, which would be negatively impacted if closures related to COVID-19 or other restrictive measures are reimplemented.
  • Assumes no material deterioration in foreign currency exchange rates.

Revenue & Expenses

Visualization of income flow from segment revenue to net income