NASDAQ$SKIN

SkinHealth Systems Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Net sales beat expectations for the seventh consecutive quarter and the company raised 2022 net sales guidance.

BeautyHealth reported strong Q3 2022 financial results, with net sales of $88.8 million, representing a 30% year-over-year growth. The company raised its full year net sales guidance to $360 million to $365 million. Adjusted EBITDA for the quarter was $16.5 million, with a GAAP net income of $0.1 million. However, due to increasing macro pressures, the company revised its full year 2022 adjusted EBITDA guidance to a range of $45.0 to $50.0 million.

  • Net sales increased by 30% year-over-year to $88.8 million.
  • Gross margin improved by 174bps year-over-year to 69.3%.
  • Net income was $0.1 million, compared to a net loss of $215.1 million in Q3 2021.
  • Adjusted EBITDA was $16.5 million.

Headline financials

Total Revenue

$88.8M

Previous: $68.1M+30.3%
EPS (adj)

$0.05

Previous: -$1.63+103.1%
Gross Margin

69.3%

Previous: 67.6%+2.5%
Adjusted EBITDA

$16.5M

Previous: $5.8M+184.5%
Adjusted EBITDA Margin

18.6%

Previous: 8.5%+118.8%
Adjusted Gross Margin

75.1%

Previous: 71.5%+5.0%
Capital Expenditures

-$9.88M

Previous: -$4.86M-103.4%
Free Cash Flow

-$9.75M

Previous: -$220M+95.6%
Net Income

$131K

Previous: -$215M+100.1%
Operating Income

-$4.14M

Previous: -$5.46M+24.1%
Gross Profit

$61.6M

Previous: $46.1M+33.6%
Cash & Equivalents

$684M

Previous: $719M-4.8%
Total Assets

$1.1B

Previous: $998M+10.7%

Revenue & EPS history

Beauty Health · Revenue · Quarterly

$88.8M

Q3 2022+30.3%vs Q3 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Beauty Health · $88.8M total across 2 segments · Q3 2022

  • Delivery Systems
    $49.1M+35.6%
  • Consumables
    $39.7M+24.1%

Forward guidance

BeautyHealth increased its fiscal 2022 net sales guidance and now expects net sales in the range of $360.0 million to $365.0 million. The Company also expanded its 2022 outlook for adjusted EBITDA from the prior target of $50.0 million to a range of $45.0 million to $50.0 million.

Tailwinds

  • Net sales guidance increased to $360 million - $365 million.
  • Reflects management's confidence in the business.
  • Company executes against its growth plan.

Headwinds

  • Adjusted EBITDA outlook revised to $45 million - $50 million.
  • Continued investment in global expansion.
  • Changing macroeconomic pressures.
  • Foreign currency exchange headwinds.
  • Market closures and restrictions as a result of China’s zero COVID policy.

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 Q3 2022

Historical avgQ3 2022

+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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