NASDAQ$SKIN

SkinHealth Systems Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Beauty Health reported net sales of $97.4 million, a 10% increase year-over-year, driven by APAC and EMEA, but was overshadowed by lower-than-expected U.S. revenue and $63.1 million in restructuring charges related to device upgrades.

Beauty Health's Q3 2023 net sales increased by 10% year-over-year to $97.4 million, driven by growth in APAC and EMEA. However, lower-than-expected U.S. revenue and $63.1 million in restructuring charges related to device upgrades impacted the quarter. The company is revising its fiscal year 2023 net sales guidance to $385 to $400 million and adjusted EBITDA margin guidance to 5% to 6%, and suspending its long-term 2025 financial outlook.

  • Net sales increased by 10% year-over-year to $97.4 million, driven by APAC and EMEA.
  • Gross margin was (12.9)%, impacted by Syndeo Program costs and obsolete product costs.
  • Net loss was $(73.8) million, primarily due to Syndeo Program costs.
  • Revised fiscal year 2023 net sales guidance to $385 to $400 million and adjusted EBITDA margin guidance to 5% to 6%.

Headline financials

Total Revenue

$97.4M

Previous: $88.8M+9.7%
EPS (adj)

-$0.09

Previous: $0.05-280.0%
Adjusted EBITDA

$9.1M

Previous: $16.5M-44.8%
Adjusted EBITDA Margin

9.3%

Previous: 18.6%-50.0%
Adjusted Gross Margin

62.5%

Previous: 75.1%-16.8%
Total Delivery Systems Sold

2.1K

No prior period
Active Install Base

30.1K

No prior period
Capital Expenditures

-$3.8M

Previous: -$9.88M+61.6%
Free Cash Flow

-$77.6M

Previous: -$9.75M-696.1%
Net Income

-$73.8M

Previous: $131K-56449.6%
Operating Income

-$82.1M

Previous: -$4.14M-1882.6%
Gross Profit

-$12.6M

Previous: $61.6M-120.4%
Cash & Equivalents

$559M

Previous: $684M-18.2%
Total Assets

$973M

Previous: $1.1B-11.9%
R&D Expense

$1.8M

No prior period
Stock-Based Comp

$8.19M

No prior period

Revenue & EPS history

Beauty Health · Revenue · Quarterly

$97.4M

Q3 2023+9.7%vs Q3 2022
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 revised its fiscal year 2023 net sales guidance to a range of $385 to $400 million and adjusted EBITDA margin guidance to a range of 5% to 6%. The company suspended its long-term fiscal year 2025 outlook.

Tailwinds

  • Assumes no material deterioration in general market conditions or other unforeseen circumstances beyond the Company's control.
  • Excludes any unannounced acquisitions, dispositions or financings.
  • Assumes a largely re-opened global market.
  • Assumes no material deterioration in foreign currency exchange rates.

Headwinds

  • Revised fiscal year 2023 net sales guidance due to provider experience challenges with Syndeo creating lower than expected demand for delivery systems in the U.S.
  • Revised fiscal year 2023 adjusted EBITDA margin guidance as a result of slower than expected gross margin recovery and reduced fixed cost operating leverage.
  • Suspended its long-term fiscal year 2025 outlook.
  • Global market would be negatively impacted if closures related to COVID-19 or other restrictive measures are reimplemented.

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 2023

Historical avgQ3 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

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