NASDAQ$OSW

OneSpaWorld Holdings Limited · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

OneSpaWorld's financial performance significantly improved in Q2 2023, marked by record revenues and adjusted EBITDA, driven by strong operational execution and increased health and wellness center activities.

OneSpaWorld reported a strong second quarter with a 57% increase in total revenues, reaching a record $200.5 million. Income from operations increased by $12.4 million to a record $13.4 million, and adjusted EBITDA more than doubled to a record $21.6 million. The company has increased its fiscal year 2023 revenue and adjusted EBITDA guidance, reflecting confidence in its business prospects.

  • Total revenues increased by 57% to $200.5 million compared to Q2 2022.
  • Income from operations rose to $13.4 million, a $12.4 million increase from the previous year.
  • Adjusted EBITDA increased to $21.6 million, more than doubling from Q2 2022.
  • The company ended the quarter with $50.0 million in liquidity, including cash and borrowing capacity.

Headline financials

Total Revenue

$201M

Previous: $127M+57.4%
EPS (adj)

$0.15

Previous: $0.04+275.0%
Adjusted EBITDA

$21.6M

Previous: $9.1M+137.4%
Free Cash Flow

-$3.18M

Previous: $55.9M-105.7%
Net Income

-$3.18M

Previous: $55.9M-105.7%
Operating Income

$13.4M

Previous: $1.02M+1212.0%
Gross Profit

$201M

Previous: $127M+57.4%
Cash & Equivalents

$28.8M

Previous: $32M-10.1%
Total Assets

$714M

Previous: $701M+1.9%
Stock-Based Comp

$2.26M

Previous: $2.84M-20.4%

Revenue & EPS history

OneSpaWorld · Revenue · Quarterly

$201M

Q2 2023+57.4%vs Q2 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

OneSpaWorld · $201M total across 2 segments · Q2 2023

  • Service revenues
    $163M+57.5%
  • Product revenues
    $37.3M+56.9%

Forward guidance

OneSpaWorld introduces Q3 2023 guidance for revenues of $205 - $210 million and adjusted EBITDA of $21 - $23 million. It increases Fiscal 2023 revenues guidance to $770 - $790 million from $710 - $730 million and increases Fiscal 2023 adjusted EBITDA guidance to $80 - $86 million from $70 - $76 million.

Tailwinds

  • Revenues are expected to be between $205 and $210 million for Q3 2023.
  • Adjusted EBITDA is projected to be between $21 and $23 million for Q3 2023.
  • Fiscal year 2023 revenue guidance has been increased to $770 - $790 million.
  • Fiscal year 2023 adjusted EBITDA guidance has been raised to $80 - $86 million.
  • The company expects to continue to generate positive cash flow from operations in the third quarter of 2023 and throughout fiscal year 2023.

Historical earnings impact

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.1%

Avg return

Earnings day

+0.1%

Avg return

5 days after

-0.7%

Avg return

30 days after

42%

14 / 33 earnings

Positive

+16.8%

Q1 2024

Best reaction

-10.7%

Q3 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.5%-1.3%-0.1%
Q4 2025-4.8%-7.4%-10.3%
Q3 2025+3.0%+8.4%-4.1%
Q1 2025-5.3%+3.9%+6.9%
Q4 2024+0.6%-17.6%-23.4%
Q3 2024+0.3%+0.3%+8.8%
Q2 2024-5.2%-10.0%-5.4%
Q1 2024+16.8%+15.7%+22.2%
Q4 2023-7.1%-7.7%-5.7%
Q3 2023+1.0%+4.4%+16.7%
Q2 2023-4.0%-5.1%-8.1%
Q1 2023-3.2%-4.5%-12.5%
Q4 2022+8.5%+9.2%+7.1%
Q3 2022+4.8%+10.4%+13.7%
Q2 2022+13.2%+16.9%+15.4%
Q1 2022-6.9%-14.4%-7.2%
Q4 2021+5.3%-1.5%+6.2%
Q3 2021+11.4%+12.5%-14.4%
Q2 2021+6.2%+2.2%+2.6%
Q1 2021+0.8%+8.4%+11.6%
Q4 2020-0.5%-3.1%-1.9%
Q3 2020-10.7%-5.9%+2.0%
Q2 2020-9.4%-8.9%+16.9%
Q1 2020-4.6%+10.4%+15.9%
Q4 2019-1.3%-1.4%-66.7%
Q3 2019-6.9%-6.0%-0.4%
Q2 2019-0.8%-1.1%+5.2%
Q1 2019-1.9%-2.3%-5.6%
Q4 2018+0.1%-1.6%-8.5%
Q3 2018+0.0%+0.0%+0.4%
Q2 2018+0.0%+0.4%+0.1%
Q1 2018+0.0%+0.1%+0.5%
Q4 2017+0.0%+0.0%+0.0%
Q3 2017
Q2 2017
Q1 2017

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