Business
BeautyHealth Reports Second Quarter 2023 Financial Results
Delivers double-digit net sales growth on demand for Hydrafacial Confirms 2023 net sales and 2025 financial guidance, refines 2023 adjusted EBITDA margin
About this update from Skinhealth Systems Inc.
[{"type":"text","content":"\nDelivers double-digit net sales growth on demand for Hydrafacial\n\n\nConfirms 2023 net sales and 2025 financial guidance, refines 2023 adjusted EBITDA margin guidance\n\n\n LONG BEACH, Calif.--(BUSINESS WIRE)--\nThe Beauty Health Company (NASDAQ: SKIN), home to flagship brand Hydrafacial, today announced financial results for the second quarter ended June 30, 2023. For the quarter, net sales of $117.5 million increased +13% year-over-year, or +32% excluding trade-ups, continuing a trend of double-digit quarterly growth. Net income was $3.4 million, and adjusted EBITDA margin was 15.1% for the quarter. On the momentum, the Company re-affirms its 2023 net sales and long-term 2025 financial guidance, and refines its 2023 adjusted EBITDA margin to a more precise 18%-19% range.\n\n\n“In the second quarter, we recommitted to our core and, in doing so, delivered consistent double-digit top-line performance and profitability in line with expectations,” said BeautyHealth President and CEO Andrew Stanleick. “At the same time, we are readying the organization for the next phase of growth, with a fortified executive team, robust innovation pipeline and disciplined approach to harnessing the enormous global market opportunity in front of us.”\n\n\nConsumables net sales growth was +34% year-over-year, driven by strong volumes as demand for Hydrafacial treatments continues.\n\n\nDelivery system net sales growth for the quarter was +1% year-over-year as the Company lapped $23.3 million in trade-up demand in the second quarter of last year associated with Syndeo's U.S. launch. Excluding trade-up demand, delivery systems net sales growth for the quarter was +30%.\n\n\nOf note, the mix of delivery systems sold shifted towards lower-margin refurbished devices amidst a tightening credit environment and as U.S. providers awaited Syndeo enhancements in the third quarter of 2023 to improve the user experience. This unfavorably impacted gross margin for the quarter.\n\n\nNet sales in the APAC region grew +143% year-over-year, or +92% when excluding trade-ups. Of note, China's net sales growth returned to pre-pandemic levels, growing +265% or +167% when excluding trade-ups. EMEA showed momentum, reporting net sales growth of +61%, or +37% when excluding trade-ups. In the Americas region, the change in net sales was (16)%, or +18% when excluding trade-...