Beauty Health Clocks 13% Growth In Q2 Revenues On Strong Demand For Hydrafacial

The Beauty Health Company SKIN registered Q2 revenues of $117.5 million, up 13% Y/Y, beating the consensus of $116.08 million. Strong demand for Hydrafacial from providers and strength in consumables drove revenues.

Q2 EPS of $0.03 missed the analyst consensus of $0.05.

Consumables net sales growth was +34% Y/Y, driven by strong volumes.

Delivery system net sales growth for the quarter was +1% Y/Y. 

Adjusted gross margin was 64.8% in Q2 (down 620 bps), ailed by increased sales of lower-margin refurbished systems, particularly in the U.S., and the sell-through of higher-cost inventory.

Q2 Net income was $3.4 million, lower than $6.3 million in Q2 2022.

Adjusted EBITDA was $17.8 million in Q2 2023 (+22% Y/Y), primarily due to a year-over-year reduction in selling and marketing expenses.

SKIN exited the quarter with cash and equivalents totaling $549.7 million.

New CFO Appointed

SKIN named Michael Monahan the new Chief Financial Officer, effective August 10, 2023. He succeeds Liyuan Woo, who is leaving the company but will remain as an advisor until September 1, 2023, to assist with the transition.

FY23 Outlook

BeautyHealth reiterates FY23 net sales guidance of $460 million-$480 million, with a consensus of $461.57 million.

The company refined the Adjusted EBITDA margin outlook from 18%-20% to 18%-19%. 

For FY25, SKIN continues to see net sales of $600 – $700 million, with Adjusted EBITDA margin of 25% – 30%.

Price Action: SKIN shares are trading lower by 0.27% to $7.51 on the last check Wednesday.

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