NASDAQ$SKIN

SkinHealth Systems Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

BeautyHealth reported double-digit net sales growth driven by demand for Hydrafacial and reaffirmed its 2023 net sales and 2025 financial guidance, while refining 2023 adjusted EBITDA margin guidance.

BeautyHealth reported a 13% year-over-year increase in net sales, reaching $117.5 million. Net income was $3.4 million, and the adjusted EBITDA margin was 15.1%. The company reaffirmed its 2023 net sales and long-term 2025 financial guidance, and refined its 2023 adjusted EBITDA margin to a more precise 18%-19% range.

  • Net sales increased by 13% year-over-year to $117.5 million.
  • Consumables net sales grew by 34% year-over-year.
  • Net income was $3.4 million.
  • Adjusted EBITDA margin was 15.1%.

Headline financials

Total Revenue

$117M

Previous: $104M+13.5%
EPS (adj)

$0.03

Previous: $0.01+114.3%
Gross Margin

57.8%

Previous: 69.2%-16.5%
Adjusted EBITDA

$17.8M

Previous: $12.6M+40.8%
Adjusted EBITDA Margin

15.1%

Previous: 12.2%+23.8%
Active Install Base

29.7K

No prior period
Capital Expenditures

-$3.62M

Previous: -$5.58M+35.0%
Free Cash Flow

-$259K

Previous: $2.35M-111.0%
Net Income

$3.36M

Previous: $7.93M-57.6%
Operating Income

-$13.1M

Previous: -$3.41M-285.2%
Gross Profit

$67.9M

Previous: $71.7M-5.3%
Cash & Equivalents

$550M

Previous: $821M-33.0%
Total Assets

$1.01B

Previous: $1.21B-17.1%
Stock-Based Comp

$8.52M

Previous: $6.38M+33.6%

Revenue & EPS history

Beauty Health · Revenue · Quarterly

$117M

Q2 2023+13.5%vs Q2 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Beauty Health · $118M total across 2 segments · Q2 2023

  • Delivery Systems
    $65.6M+1.2%
  • Consumables
    $51.9M+33.8%

Forward guidance

The Company re-affirmed its fiscal year 2023 net sales due to continued demand for Hydrafacial, strong trends in China and ability to drive operating leverage, and refined its fiscal year 2023 adjusted EBITDA guidance to a range of 18-19% from 18-20% previously. The Company retracted its 2023 fiscal year 2023 adjusted gross margin guidance due to Q2 margin headwinds carrying into the back half of 2023. The Company re-affirmed its fiscal year 2025 long-range outlook, due to continued strong business fundamentals, fortified leadership team and its expected pipeline of innovation.

Tailwinds

  • Continued demand for Hydrafacial.
  • Strong trends in China.
  • Ability to drive operating leverage.
  • Continued strong business fundamentals.
  • Fortified leadership team and its expected pipeline of innovation.

Headwinds

  • No material deterioration in general market conditions or other unforeseen circumstances beyond the Company's control.
  • Excludes any unannounced acquisitions, dispositions or financings during 2023.
  • Assumes a largely re-opened global market, which would be negatively impacted if closures related to COVID-19 or other restrictive measures are reimplemented.
  • Assumes no material deterioration in foreign currency exchange rates.
  • Q2 margin headwinds carrying into the back half of 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

+0.6%

Avg return

Earnings day

-0.5%

Avg return

5 days after

-1.9%

Avg return

30 days after

52%

12 / 23 earnings

Positive

+52.1%

Q1 2025

Best reaction

-61.4%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.5%-29.9%-34.9%
Q4 2025+19.8%+11.3%-15.3%
Q3 2025+8.7%+3.1%+13.2%
Q1 2025+52.1%+19.4%+29.0%
Q4 2024-5.6%-9.9%-26.1%
Q3 2024+5.1%-13.1%-14.2%
Q2 2024-10.4%+0.8%+12.8%
Q1 2024-20.1%-18.4%-39.9%
Q4 2023+16.8%-0.8%+4.4%
Q3 2023-61.4%-37.2%-14.7%
Q2 2023-6.0%-12.9%-24.2%
Q1 2023-2.8%-0.2%-20.8%
Q4 2022+8.7%+13.5%+7.4%
Q3 2022-25.3%-12.3%-4.1%
Q2 2022-8.3%-8.8%-18.5%
Q1 2022-5.4%+6.6%+8.9%
Q4 2019+4.0%-4.1%-12.9%
Q4 2021+23.4%+43.1%+27.6%
Q3 2021-11.9%-8.0%-13.9%
Q2 2020+8.2%+7.4%+26.8%
Q2 2021+10.6%+23.9%+30.3%
Q1 2021+12.8%+15.9%+44.7%
Q4 2020+2.8%-0.9%-10.0%
Q3 2020
Q1 2020

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro