NASDAQ$SKIN

SkinHealth Systems Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported third quarter net sales of $78.8 million and improved profitability due to strategic initiatives.

BeautyHealth reported Q3 2024 net sales of $78.8 million, a decrease of 19.1% compared to Q3 2023. However, the company saw improved profitability with an increase in gross margin and adjusted EBITDA, driven by operational excellence initiatives and disciplined expense management. The company also revised its full year net sales guidance lower and improved its adjusted EBITDA guidance.

  • Net sales were $78.8 million, a decrease of (19.1)% compared to Q3 2023, due to lower delivery systems net sales.
  • Gross margin was 51.6% compared to (12.9)% in Q3 2023, primarily due to the absence of charges associated with the Syndeo Program in 2023 and lower inventory related charges.
  • Net loss was $(18.3) million compared to net loss of $(73.8) million in Q3 2023, primarily due to costs associated with the Syndeo Program in 2023.
  • Adjusted EBITDA was $8.1 million compared to $9.1 million in Q3 2023, primarily due to lower net sales offset by higher gross margin and lower operational spend.

Headline financials

Total Revenue

$78.8M

Previous: $97.4M-19.1%
EPS

-$0.15

Previous: -$0.09-66.7%
Gross Margin

51.6%

No prior period
Adjusted EBITDA

$8.1M

Previous: $9.1M-11.0%
Adjusted EBITDA Margin

10.2%

Previous: 9.3%+9.7%
Adjusted Gross Margin

69.5%

Previous: 62.5%+11.2%
Total Delivery Systems Sold

1.1K

Previous: 2.1K-47.8%
Active Install Base

34.2K

Previous: 30.1K+13.6%
Capital Expenditures

-$682K

Previous: -$3.8M+82.0%
Free Cash Flow

-$19M

Previous: -$77.6M+75.6%
Net Income

-$18.3M

Previous: -$73.8M+75.2%
Operating Income

-$21.5M

Previous: -$82.1M+73.8%
Gross Profit

$40.6M

Previous: -$12.6M+423.8%
Total Assets

$700M

Previous: $973M-28.1%
R&D Expense

$1.11M

Previous: $1.8M-38.4%
Stock-Based Comp

$7.71M

Previous: $8.19M-5.8%

Revenue & EPS history

Beauty Health · Revenue · Quarterly

$78.8M

Q3 2024-19.1%vs Q3 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 revised its full year net sales guidance lower due to continued pressure on delivery systems sales and improved its adjusted EBITDA guidance to reflect stronger profitability in the third quarter.

Tailwinds

  • Improved Q3 2024 gross margin performance
  • Reduction in operational spend
  • Assumes no material deterioration in general market conditions
  • Excludes any unannounced acquisitions
  • Excludes any unannounced dispositions or financings.

Headwinds

  • Revised full-year net sales guidance reflects continued downward 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 Q3 2024

Historical avgQ3 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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