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Mar 31, 2024

Beauty Health Q1 2024 Earnings Report

Reported first quarter net sales of $81.4 million with year-over-year operating expense improvement.

Key Takeaways

BeautyHealth's first quarter net sales reached $81.4 million, a decrease of (5.7)% compared to the same period in 2023, with lower equipment sales offset by growth in consumables. The company reported a net loss of $(0.7) million, an improvement from the prior year, and an adjusted EBITDA of $0.4 million.

Net sales for the first quarter of 2024 were $81.4 million, a decrease of (5.7)% compared to the prior year period, due to lower delivery systems net sales.

Gross margin was 59.4% in Q1 2024, compared to 62.7% in Q1 2023, with adjusted gross margin at 63.4% versus 70.0% in the prior year.

Net loss was $(0.7) million in Q1 2024, compared to a net loss of $(20.3) million in Q1 2023, primarily due to the gain on repurchase of convertible notes.

Adjusted EBITDA was $0.4 million in Q1 2024, compared to adjusted EBITDA of $(0.5) million in Q1 2023, primarily due to lower operating expenses.

Total Revenue
$81.4M
Previous year: $86.3M
-5.7%
EPS
-$0.1
Previous year: -$0.04
+150.0%
Gross Margin
59.4%
Previous year: 62.7%
-5.3%
Adjusted EBITDA
$400K
Previous year: -$500K
-180.0%
Adjusted EBITDA Margin
0.4%
Previous year: -0.6%
-166.7%
Gross Profit
$48.4M
Previous year: $54.1M
-10.5%
Cash and Equivalents
$445M
Previous year: $532M
-16.5%
Free Cash Flow
-$17.2M
Previous year: -$15.3M
+12.2%
Total Assets
$845M
Previous year: $995M
-15.1%

Beauty Health

Beauty Health

Beauty Health Revenue by Segment

Beauty Health Revenue by Geographic Location

Forward Guidance

The company expects second quarter net sales between $96 and $102 million and adjusted EBITDA between $4 and $7 million. For fiscal year 2024, the company anticipates flat to low-single digit % growth in net sales and adjusted EBITDA greater than $40 million.

Positive Outlook

  • Fiscal year financial guidance reflects a return to net sales growth in the second half of 2024, primarily weighted toward the fourth 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.

Challenges Ahead

  • Second quarter financial guidance reflects a challenging year-over-year comparison due to the international launch of Syndeo in the comparable 2023 period.

Revenue & Expenses

Visualization of income flow from segment revenue to net income