•
Sep 30, 2022

Beauty Health Q3 2022 Earnings Report

Net sales beat expectations for the seventh consecutive quarter and the company raised 2022 net sales guidance.

Key Takeaways

BeautyHealth reported strong Q3 2022 financial results, with net sales of $88.8 million, representing a 30% year-over-year growth. The company raised its full year net sales guidance to $360 million to $365 million. Adjusted EBITDA for the quarter was $16.5 million, with a GAAP net income of $0.1 million. However, due to increasing macro pressures, the company revised its full year 2022 adjusted EBITDA guidance to a range of $45.0 to $50.0 million.

Net sales increased by 30% year-over-year to $88.8 million.

Gross margin improved by 174bps year-over-year to 69.3%.

Net income was $0.1 million, compared to a net loss of $215.1 million in Q3 2021.

Adjusted EBITDA was $16.5 million.

Total Revenue
$88.8M
Previous year: $68.1M
+30.3%
EPS
$0.05
Previous year: -$1.63
-103.1%
Gross Margin
69.3%
Previous year: 67.6%
+2.5%
Adjusted EBITDA
$16.5M
Previous year: $5.8M
+184.5%
Adjusted EBITDA Margin
18.6%
Previous year: 8.5%
+118.8%
Gross Profit
$61.6M
Previous year: $46.1M
+33.6%
Cash and Equivalents
$684M
Previous year: $719M
-4.8%
Total Assets
$1.1B
Previous year: $998M
+10.7%

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 and now expects net sales in the range of $360.0 million to $365.0 million. The Company also expanded its 2022 outlook for adjusted EBITDA from the prior target of $50.0 million to a range of $45.0 million to $50.0 million.

Positive Outlook

  • Net sales guidance increased to $360 million - $365 million.
  • Reflects management's confidence in the business.
  • Company executes against its growth plan.

Challenges Ahead

  • Adjusted EBITDA outlook revised to $45 million - $50 million.
  • Continued investment in global expansion.
  • Changing macroeconomic pressures.
  • Foreign currency exchange headwinds.
  • Market closures and restrictions as a result of China’s zero COVID policy.

Revenue & Expenses

Visualization of income flow from segment revenue to net income