NASDAQ$SKIN

SkinHealth Systems Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Net sales decreased slightly year-over-year, but were driven by growth across international markets.

BeautyHealth reported Q4 2023 financial results with net sales of $96.8 million, a decrease of (1.3)% compared to the prior year period. The results reflect lower equipment sales in the Americas, substantially offset by steady growth in Americas consumables net sales and strong device placement in Asia-Pacific.

  • Net sales were $96.8 million, a decrease of (1.3)% compared to the prior year period, with challenges in the Americas largely offset by growth in APAC and EMEA.
  • Gross margin was 47.2% compared to 67.8% in the prior year. Adjusted gross margin was 54.6% compared to 73.6% in the prior year, impacted by higher inventory related charges and higher product and warranty costs.
  • Net loss was $(9.4) million compared to net income of $6.5 million in the prior year, primarily due to gross margin pressures.
  • Adjusted EBITDA was $3.4 million compared to $17.6 million in the prior year, primarily due to gross margin pressures.

Headline financials

Total Revenue

$96.8M

Previous: $98.1M-1.4%
EPS (adj)

-$0.07

Previous: $0.05-240.0%
Capital Expenditures

-$2.17M

Previous: $967K-324.2%
Free Cash Flow

-$5.2M

Previous: -$6.36M+18.3%
Net Income

-$9.4M

Previous: $3.8M-347.4%
Operating Income

-$18.4M

Previous: -$3.8M-384.2%
Gross Profit

$45.7M

Previous: $65.2M-29.9%
R&D Expense

$3M

No prior period
Stock-Based Comp

$2.26M

Previous: $7.62M-70.4%

Revenue & EPS history

Beauty Health · Revenue · Quarterly

$96.8M

Q4 2023-1.4%vs Q4 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 provided financial guidance for the first quarter and full year 2024.

Tailwinds

  • First quarter financial guidance reflects our seasonally lowest sales quarter of the year and investments in sales and marketing spend in the quarter.
  • Assumes no material deterioration in general market conditions or other unforeseen circumstances beyond the Company's control, such as foreign currency exchange rates.
  • Excludes any unannounced acquisitions, dispositions or financings.
  • Fiscal Year 2024 Net sales Flat to low-single digit % growth
  • Fiscal Year 2024 Adjusted EBITDA > $40 million

Headwinds

  • First Quarter 2024 Net sales $77 – $83 million
  • First Quarter 2024 Adjusted EBITDA ($6) – ($9) million
  • First quarter financial guidance reflects our seasonally lowest sales quarter of the year
  • Investments in sales and marketing spend in the quarter
  • Assumes no material deterioration in general market conditions or other unforeseen circumstances beyond the Company's control, such as foreign currency exchange rates.

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 Q4 2023

Historical avgQ4 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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