NASDAQ$SKIN

SkinHealth Systems Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported net sales of $90.6 million and year-over-year operating expense improvement of nearly $18 million or 22%.

BeautyHealth's Q2 2024 results showed net sales of $90.6 million, a decrease of (22.9)% compared to the same period in 2023. This was due to lower equipment sales, partially offset by growth in consumables net sales. The company is addressing these challenges by offering lower-priced device options and additional financing solutions to providers.

  • Net sales were $90.6 million, a decrease of (22.9)% compared to Q2 2023, attributed to lower delivery systems net sales.
  • Gross margin was 45.2% compared to 57.8% in Q2 2023, with adjusted gross margin at 49.4% compared to 64.5% in Q2 2023, impacted by higher inventory related charges.
  • Net income was $0.2 million compared to $3.4 million in Q2 2023, primarily due to the gain on repurchase of convertible senior notes, partially offset by inventory related charges.
  • Adjusted EBITDA loss was $(5.2) million compared to adjusted EBITDA of $12.4 million in Q2 2023, mainly due to inventory related charges and lower net sales.

Headline financials

Total Revenue

$90.6M

Previous: $117M-22.9%
EPS

-$0.10

Previous: $0.03-433.3%
Gross Margin

45.2%

Previous: 57.8%-21.8%
Adjusted EBITDA

-$5.2M

Previous: $17.8M-129.2%
Adjusted EBITDA Margin

-5.7%

Previous: 15.1%-137.7%
Adjusted Gross Profit

$44.8M

No prior period
Adjusted Gross Margin

49.4%

No prior period
Total Delivery Systems Sold

1.3K

No prior period
Active Install Base

33.5K

Previous: 29.7K+12.9%
Capital Expenditures

-$678K

Previous: -$3.62M+81.3%
Free Cash Flow

-$476K

Previous: -$259K-83.8%
Net Income

$202K

Previous: $3.36M-94.0%
Operating Income

-$22.1M

Previous: -$13.1M-68.2%
Gross Profit

$40.9M

Previous: $67.9M-39.7%
Total Assets

$712M

Previous: $1.01B-29.3%
R&D Expense

$1.16M

No prior period
Stock-Based Comp

$6.5M

Previous: $8.52M-23.8%

Revenue & EPS history

Beauty Health · Revenue · Quarterly

$90.6M

Q2 2024-22.9%vs Q2 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Beauty Health · $97.4M total across 2 segments · Q3 2023

  • Delivery Systems
    $51M+3.9%
  • Consumables
    $46.4M+16.9%

Forward guidance

The company provided revised financial guidance for the third quarter and fiscal year 2024, reflecting continued pressure on delivery systems sales. It assumes no material deterioration in general market conditions and excludes any unannounced acquisitions, dispositions, or financings.

Headwinds

  • Third quarter net sales are expected to be between $70 million and $80 million.
  • Third quarter adjusted EBITDA is projected to be between ($6) million and ($1) million.
  • Fiscal year 2024 net sales are anticipated to be between $325 million and $345 million.
  • Fiscal year 2024 adjusted EBITDA is expected to be between ($10) million and $0 million.
  • Financial guidance reflects continued pressure on delivery systems sales.

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 2024

Historical avgQ2 2024

+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

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