NASDAQ$OLPX

OLAPLEX HOLDINGS INC · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Olaplex experienced a challenging end to fiscal 2022, reflecting a rapidly changing market dynamic.

Olaplex's Q4 2022 net sales declined by 21.5% to $130.7 million compared to Q4 2021. The company is focusing on resetting its base and investing in core areas like sales, marketing, and education for future growth.

  • Net sales decreased by 21.5% to $130.7 million.
  • Diluted EPS was $0.05, compared to $0.10 in Q4 2021.
  • Adjusted diluted EPS was $0.07, compared to $0.10 in Q4 2021.
  • The company is prioritizing investments in sales, marketing, and education to drive future growth.

Headline financials

Total Revenue

$131M

Previous: $166M-21.5%
EPS (adj)

$0.07

Previous: $0.10-30.0%
Gross Profit Margin

70.4%

Previous: 79.4%-11.3%
Adjusted EBITDA Margin

51.7%

Previous: 66.5%-22.3%
Capital Expenditures

$550K

Previous: $16K+3337.5%
Free Cash Flow

$73M

Previous: $69.7M+4.7%
Net Income

$33.6M

Previous: $69.3M-51.5%
Operating Income

$47.1M

Previous: $98.4M-52.2%
Gross Profit

$92.1M

Previous: $132M-30.3%
Cash & Equivalents

$323M

Previous: $186M+73.2%
Total Assets

$1.7B

Previous: $1.56B+8.8%
Stock-Based Comp

$1.82M

Previous: $844K+115.8%

Revenue & EPS history

Olaplex · Revenue · Quarterly

$131M

Q4 2022-21.5%vs Q4 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Olaplex · $131M total across 3 segments · Q4 2022

  • Professional
    $54.9M+0.0%
  • Direct-To-Consumer
    $43.2M+0.0%
  • Specialty Retail
    $32.6M+0.0%

Forward guidance

The Company expects 2023 to be a reset year in which it increases investments to support future growth.

Tailwinds

  • New product introductions
  • Additional distribution gains
  • Improvements in customer demand due to increased investments in sales, marketing and education.

Headwinds

  • Continued negative impact from inventory rebalancing at certain professional and specialty retail customers
  • Reduced customer demand
  • Net sales decline in Q1 2023
  • Increase in warehousing and distribution costs
  • Deleveraging from lower sales volume

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q4 2022

Historical avgQ4 2022

-0.7%

Avg return

Earnings day

+0.0%

Avg return

5 days after

+6.8%

Avg return

30 days after

43%

10 / 23 earnings

Positive

+24.6%

Q3 2023

Best reaction

-21.6%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.2%-0.2%-0.2%
Q4 2025-17.0%-27.0%+14.0%
Q3 2025+1.9%+7.5%+17.9%
Q1 2025+3.0%-3.8%-1.5%
Q4 2024+21.7%+10.9%-15.6%
Q3 2024-4.5%-5.0%+19.6%
Q2 2024-0.5%+0.0%+24.3%
Q1 2024+15.0%+8.6%+27.1%
Q4 2023-5.7%-3.1%-0.5%
Q3 2023+24.6%+26.1%+83.3%
Q2 2023-21.6%-27.2%-31.4%
Q1 2023-10.6%-11.8%-6.3%
Q4 2022-15.3%-14.0%-24.4%
Q3 2022+13.8%+26.9%+20.7%
Q2 2022-9.7%-4.8%-25.9%
Q1 2022+6.2%+16.0%+25.3%
Q1 2021+6.2%+16.0%+25.3%
Q1 2020+9.2%+2.9%+6.8%
Q4 2021+9.2%+2.9%+6.8%
Q2 2021-10.4%-5.2%-2.2%
Q3 2021-10.4%-5.2%-2.2%
Q3 2020-10.4%-5.2%-2.2%
Q4 2020-10.4%-5.2%-2.2%
Q2 2020

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