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Jun 30, 2022

Beauty Health Q2 2022 Earnings Report

Reported record financial results, exceeding expectations and raised net sales guidance for 2022.

Key Takeaways

BeautyHealth announced record second-quarter results with net sales growth of 55.7% year-over-year, reaching $103.5 million. The company raised its full-year net sales guidance and reaffirmed its adjusted EBITDA outlook, driven by strong demand for HydraFacial delivery systems and healthy consumer interest.

Net sales increased by 55.7% year-over-year to $103.5 million.

Net income reached $7.9 million, a significant improvement compared to a net loss of $139.4 million in the same quarter last year.

Adjusted EBITDA grew by 10.9% to $12.6 million.

Americas net sales increased by 76.6% year-over-year, driven by strong demand for Syndeo.

Total Revenue
$104M
Previous year: $66.5M
+55.7%
EPS
$0.014
Previous year: -$1.52
-100.9%
Gross Margin
69.2%
Previous year: 71%
-2.5%
Adjusted EBITDA
$12.6M
Previous year: $11.4M
+10.9%
Adjusted EBITDA Margin
12.2%
Gross Profit
$71.7M
Previous year: $47.3M
+51.5%
Cash and Equivalents
$821M
Previous year: $102M
+708.8%
Free Cash Flow
-$33.8M
Previous year: -$37.1M
-9.0%
Total Assets
$1.21B
Previous year: $343M
+254.7%

Beauty Health

Beauty Health

Beauty Health Revenue by Segment

Beauty Health Revenue by Geographic Location

Forward Guidance

BeautyHealth increased its fiscal 2022 net sales guidance to a range of $340.0 million to $350.0 million and reaffirmed its 2022 adjusted EBITDA outlook of approximately $50.0 million.

Positive Outlook

  • Increased fiscal 2022 net sales guidance reflects management's confidence in the business.
  • Reaffirmation of 2022 adjusted EBITDA outlook indicates continued profitability expectations.
  • Guidance assumes no material deterioration in general market conditions.
  • Company continues to expect up to $20.0 million of capital expenditures to be incurred during 2022.
  • The increase reflects management's confidence in the business as the Company executes against its growth plan.

Challenges Ahead

  • Achievement of anticipated results is subject to risks and uncertainties disclosed in SEC filings.
  • Outlook does not account for unanticipated developments, changes in operating environment, acquisitions, dispositions, or financings during 2022.
  • Company remains cautious of potential risks from COVID-19 strains and uneven global vaccine adoption.
  • Inflationary headwinds related to higher raw material, shipping, and labor costs are a concern.
  • Outlook assumes a largely reopened global market, which could be negatively impacted by closures or restrictive measures.

Revenue & Expenses

Visualization of income flow from segment revenue to net income