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Dec 31, 2024

Beauty Health Q4 2024 Earnings Report

BeautyHealth reported a decline in revenue due to lower delivery system sales but achieved higher margins and improved profitability.

Key Takeaways

BeautyHealth's Q4 2024 revenue was $83.5 million, a 13.8% decrease year-over-year, driven by lower delivery system sales. The company improved its gross margin to 62.7% and adjusted EBITDA reached $9.0 million. Consumable sales grew, and cost-cutting efforts helped offset revenue declines.

Total revenue for Q4 2024 was $83.5 million, down 13.8% year-over-year.

Gross margin improved to 62.7% from 47.2% in Q4 2023.

Net loss was $10.3 million, slightly worse than $9.4 million in Q4 2023.

Adjusted EBITDA increased to $9.0 million, up from $3.4 million last year.

Total Revenue
$83.5M
Previous year: $96.8M
-13.7%
EPS
-$0.08
Previous year: -$0.07
+14.3%
Gross Margin
62.7%
Previous year: 47.2%
+32.8%
Adjusted EBITDA
$9M
Previous year: $3.4M
+164.7%
Adjusted EBITDA Margin
10.8%
Previous year: 3.5%
+208.6%
Gross Profit
$52.3M
Previous year: $45.7M
+14.4%
Cash and Equivalents
$370M
Previous year: $523M
-29.2%
Free Cash Flow
$16.4M
Previous year: -$5.2M
-415.5%
Total Assets
$686M
Previous year: $929M
-26.2%

Beauty Health

Beauty Health

Beauty Health Revenue by Segment

Beauty Health Revenue by Geographic Location

Forward Guidance

BeautyHealth expects continued challenges in delivery system sales but aims to stabilize revenue through consumables and cost efficiencies.

Positive Outlook

  • Consumables sales expected to continue growing in 2025.
  • Gross margin expected to remain strong with further cost optimizations.
  • Expansion of partnerships and product innovations planned for 2025.
  • Cash position remains strong at $370 million, supporting future investments.
  • Active install base grew to 34,735 systems, supporting recurring revenue.

Challenges Ahead

  • Delivery system sales expected to remain under pressure in 2025.
  • Macroeconomic uncertainties could impact consumer spending in aesthetics.
  • Increased competition in the skincare and beauty device market.
  • Transition of China operations from direct sales to distributor model may cause short-term disruptions.
  • Projected adjusted EBITDA for Q1 2025 in negative territory (-$6M to -$4M).

Revenue & Expenses

Visualization of income flow from segment revenue to net income