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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%.
Beauty Health
Beauty Health
Beauty Health Revenue by Segment
Beauty Health Revenue by Geographic Location
Revenue by Segment
Delivery Systems Revenue
CapyFin.comConsumables Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comAPAC Revenue
CapyFin.comEMEA Revenue
CapyFin.com 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
Visualization of income flow from segment revenue to net income