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Sep 30, 2023
Beauty Health Q3 2023 Earnings Report
Beauty Health reported net sales of $97.4 million, a 10% increase year-over-year, driven by APAC and EMEA, but was overshadowed by lower-than-expected U.S. revenue and $63.1 million in restructuring charges related to device upgrades.
Key Takeaways
Beauty Health's Q3 2023 net sales increased by 10% year-over-year to $97.4 million, driven by growth in APAC and EMEA. However, lower-than-expected U.S. revenue and $63.1 million in restructuring charges related to device upgrades impacted the quarter. The company is revising its fiscal year 2023 net sales guidance to $385 to $400 million and adjusted EBITDA margin guidance to 5% to 6%, and suspending its long-term 2025 financial outlook.
Net sales increased by 10% year-over-year to $97.4 million, driven by APAC and EMEA.
Gross margin was (12.9)%, impacted by Syndeo Program costs and obsolete product costs.
Net loss was $(73.8) million, primarily due to Syndeo Program costs.
Revised fiscal year 2023 net sales guidance to $385 to $400 million and adjusted EBITDA margin guidance to 5% to 6%.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Company revised its fiscal year 2023 net sales guidance to a range of $385 to $400 million and adjusted EBITDA margin guidance to a range of 5% to 6%. The company suspended its long-term fiscal year 2025 outlook.
Positive Outlook
- Assumes no material deterioration in general market conditions or other unforeseen circumstances beyond the Company's control.
- Excludes any unannounced acquisitions, dispositions or financings.
- Assumes a largely re-opened global market.
- Assumes no material deterioration in foreign currency exchange rates.
Challenges Ahead
- Revised fiscal year 2023 net sales guidance due to provider experience challenges with Syndeo creating lower than expected demand for delivery systems in the U.S.
- Revised fiscal year 2023 adjusted EBITDA margin guidance as a result of slower than expected gross margin recovery and reduced fixed cost operating leverage.
- Suspended its long-term fiscal year 2025 outlook.
- Global market would be negatively impacted if closures related to COVID-19 or other restrictive measures are reimplemented.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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