Waldencast Plc · NASDAQ:WALD
Waldencast — Q3 2024 Earnings Presentation
54 slides from Waldencast's earnings presentation, Nov 21, 2024
Slide 1: Q3 2024 Earnings Presentation
Q3 2024 Earnings Presentation 1
Slide 2: Presenters: Michel Brousset and Manuel Manfredi
MICHEL BROUSSET MANUEL MANFREDI CO-FOUNDER & CEO CHIEF FINANCIAL OFFICER 2
Slide 3: Disclaimer: Cautionary Statement Regarding Forward-Looking Statements
DISCLAIMER Cautionary Statement Regarding Forward-Looking Statements All statements in this release that are not historical, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limite
Slide 4: Our ambition: global beauty and wellness multi-brand platform
Our ambition is to build a global best-in-class beauty and wellness multi-brand platform by creating, acquiring, accelerating, and scaling the next generation of high-growth, purpose-driven brands 4
Slide 5: Poised for Long-Term Profitable Growth
POISED FOR LONG-TERM PROFITABLE GROWTH Strong alignment of management incentives to long-term value creation through operational and capital allocation excellence Expertise in managing global beauty brands at scale Asset-light, nimble, and efficient vs. slow, inflexible, and costly traditional struc
Slide 6: Leading Brands with Unique Positioning
LEADING BRANDS WITH UNIQUE POSITIONING Anchored in high customer affinity and strong brand equity Cult-favorite makeup brand with a diverse community due to its cultural relevance and iconic products Clinically-proven medical-grade skincare products that provide targeted solutions for top skin conce
Slide 7: Multi-Brand Platform Purpose Built to Scale Indie Brands
MULTI-BRAND PLATFORM PURPOSE BUILT TO SCALE INDIE BRANDS TODAY TOMORROW AND BEYOND BRAND 3 BRAND N Data Tech Talent Finance Legal Supply Chain HOW WE DO IT • Preserve brand DNA & autonomy • Fuel entrepreneurial spirit & sense of ownership • Focus on brand building and profitable growth • Share best
Slide 8: Algorithm for Long-Term Success
ALGORITHM FOR LONG-TERM SUCCESS Flywheel Effect "Attack" Gross Margins Acquire Structurally Attractive Indie Brands Leverage Superlative Gross Margin Profile Reinvest in High ROI Sales & Marketing Best-in-Class Topline Growth Leverage G&A Built-to- Scale across Platform Top-tier growth, best-in-clas
Slide 9: Where We Are, Where We Are Headed
WHERE WE ARE WHERE WE ARE HEADED Categories Geographies Channels Price Points 9 US APAC Europe LATAM Skin Color Hair Body Wellness Fragrance Professional Specialty Online Food / Drug / Mass Prestige Masstige Mass
Slide 10: Combined Financial Profile: Q3 2024
COMBINED FINANCIAL PROFILE: Q3 2024 NET REVENUE $70.2M +34.6% 1 ADJ. GROSS PROFIT $51.4M 2 73.2% 3 ADJ. EBITDA $11.4M 16.3% 5 4 COMPARABLE GROWTH 1 Based on Comparable Net Revenue Growth, refer to page 3 for definitions of non-GAAP financial measures. U.S. GAAP Net Revenue growth of 30.8% during the
Slide 11: Combined Financial Profile: Q3 YTD 2024
COMBINED FINANCIAL PROFILE: Q3 YTD 2024 1 Based on Comparable Net Revenue Growth, refer to page 3 for definitions of non-GAAP financial measures. U.S. GAAP Net Revenue growth of 23.8% during the same period. 2 Gross Profit of $142.3M adjusted for reconciling items, refer to the Appendix page 48. 3 R
Slide 12: FY 2024 Outlook
COMPARABLE NET REVENUE GROWTH ABOVE THE 25.7% GROWTH ACHIEVED IN Q2 2024 ADJ. EBITDA MARGIN MID-TEENS FY 2024 OUTLOOK 12
Slide 13: Liquidity & Shares Outstanding
LIQUIDITY & SHARES OUTSTANDING $17.6M As of September 30, 2024 As of November 15, 2024 Net Debt1 Ordinary Shares Outstanding Class A Ordinary Shares Outstanding Class B Ordinary Shares Outstanding$154.0M 122.9M 112.1M 10.8M Cash & Cash Equivalents Undrawn Commitment Under Revolving Credit Facility$3
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Slide 15: Our Results: Q3 2024
OUR RESULTS: 032024 NET REVENUE ADJ. GROSS PROFIT" ADJ. EBITDA’ $315M $21.0M $8.5M +23.5% 66.6% 271%"
Slide 16: Our Results: Q3 YTD 2024
OUR RESULTS: Q3 YTD 2024 NET REVENUE ADJ. GROSS PROFIT’ ADJ. EBITDA’ $94.7M $65.6M $24.2M +21.7% 69.2% 25.6%
Slide 17: North America and International growth
NORTH AMERICA +22.3% Q3 YTD 2024 INTERNATIONAL +20.4% Q3 YTD 2024
Slide 18: Beauty Choice of the Next Generation
#1 BEAUTY CHOICE OF THE NEXT GENERATION
Slide 19: Growth Strategy
GROWTH STRATEGY EXPAND COMMU! Connect with our core engaged community $ Welcome new groups ° Surprise our community across new segments (eye, lip, complexion) INNOVATE Build icon products (Prime + Set, Sticks, etc.) s Be the most innovative and exciting makeup brand through Jelly Tints, Lip Oils, Pr
Slide 20: Expand Community
EXPAND COMMUNITY - nstyie ee ee Simone Biles Uses the GLAMOUR Skin-Smoothing Primer “™ste™=* \ Forbe: That Makes My Makeup The 10 EE] Dry Last 12 Hours, ilk Makeup io ep Dewy Ped aunapr every 7 7B eee E lyre tse pest = ® Vill TOTAL IMPRESSIONS ie is 13 aaane Mata Goan rence Stk = = : Sete nenausrre
Slide 21: Community Performance
COMMUNITY PERFORMANCE #14 US EMV RANK +83% YoY #19 GLOBAL EMV RANK +90% YoY erapement Osta as of 3 YTD 2024 Growth basa on YoY Earned Meda Value (EM). EMV Tribe Dynamics repriatary metic for measuring the performance of digital eamed media,
Slide 22: Our Product Promise
OUR PRODUCT PROMISE CLEAN COOL BEAUTY THAT WORKS BREAKTHROUGH INNOVATION THAT DELIVERS. UTILITARIAN. GOOD FOR YOU. ALWAYS VEGAN, CLEAN & CRUELTY-FREE. HY’ Ree Gi. +Glow La ar le alc 12HR LUMINOSITY HAS LANDED 2
Slide 23: Iconic Products
ICONIC PRODUCTS COOLING WATER OVERVIEW JELLY TINT GLOBAL AWARDS 9 17 oP. AWARDS YTD! AWARD WINS FY 2022 1SOLD EVERY 30, Oi AWARD WINS SECONDS? FY 2023 1.2B 27 © 1 IMPRESSIONS? ALAROTUS \ YTD 2024" u of 1142024, *Managament Dat 8 oF 08 YTD 2024," Manag 23
Slide 24: Hydro Grip + Glow
HYDRO GRIP + GLOW 12HR LUMINOSITY ON LOCK }
Slide 25: Cooling Water Jelly Tint
COOLING WATER JELLY TINT TINT THAT WON'T QUIT 25
Slide 26: Continued International Expansion
CONTINUED INTERNATIONAL EXPANSION Milk NOW AVAILABLE ININDIA ONLY AT SEPHORA
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Slide 28: Key Figures Q3 2024
Key Figures Q3 2024 NET REVENUE ADJ. GROSS PROFIT? ADJ. EBITDA* $38.7M $30.4M $7.5M +45.5% 78.6% 19.3% COMPARABLE GROWTH
Slide 29: Key Figures Q3 YTD 2024
Key Figures Q3 YTD 2024 NET REVENUE ADJ. GROSS PROFIT? ADJ. EBITDA* $107.1M $85.3M $20.7M +32.0%' 79.7% 19.3% COMPARABLE GROWTH
Slide 30: North America and International growth
NORTH AMERICA +42.1% Q3 YTD 2024 INTERNATIONAL* +32.8% Q3 YTD 2024
Slide 31: Our Global Vision
Our Global Vision PHYSICIAN DISPENSED DERMATOLOGICAL BRAND IN THE WORLD
Slide 32: Our Growth Strategy
Our Growth Strategy 1 DOUBLE DOWN ON BRAND DNA 2 ACCELERATE CUTTING-EDGE SCIENCE BACKED INNOVATION 3 GROW BRAND AWARENESS & FOOTPRINT 2
Slide 33: Medical-Grade Lifting Power
Medical-Grade Lifting Power ELASTIDERM® LIFT UP & SCULPT FACIAL MOISTURIZER ELASTIDERM” ADVANCED FILLER CONCENTRATE
Slide 34: Elastiderm Lift Up & Sculpt: Transformative Progress, Clinicals
ELASTIDERM® LIFT UP & SCULPT FACIAL MOISTURIZER AFTER 6 WEEKS Transformative Progress: Clinicals 100 CLINICAL GRADING: Subjects Showing Improvement Showed Visible Improvement in 160 100 Fines Lines. 00 94 90 a6 es 81 fo} 80 v0 Z8 94 % 70 Showed Visible Improvement in 60 Skin Smoothness. 50 44 40 oO
Slide 35: Elastiderm Advanced Filler Concentrate: Clinicals
ELASTIDERM” ADVANCED FILLER CONCENTRATE Transformative Progress: Clinicals Forehead Lines & Wrinkles Under-Eye Lines & Wrinkles Baseline OBAGI MEDICAL as
Slide 36: Elastiderm Launch
ELASTIDERM” LAUNCH Best In Class Education In All Touchpoints ID MEDIA OBAGI FINES LINES & WRINKLE TREATMENT 57% xi OBAGI [csissicnon] The Ultimate Lifting Duo = OBAGI a @& Medi Lifting Power 36
Slide 37: Teaser and Education
Teaser Education UPERIOR HYDRATION f Campaign Sizzle ELASTIDERM® LIFT UP & SCULPT FACIAL MOISTURIZER — > ey Utility BI-MINERAL CONTOUR COMPLEX™ SUPPORTS HEALTHY ELASTIN How to 4-Action PDP VISIBLY LIFTS SCULPT! FACIAL CONTOURS IN 6 WEEKS* a
Slide 38: Elastiderm Metrics
ELASTIDERM® Metrics FIRST MONTH LAUNCH YOY (SEPT‘24) +189% +24% ELASTIDERM TTL NPD SKUs EXISTING SKUs
Slide 39: Elastiderm Launch: Deepening Our Professional Partnership
ELASTIDERM” LAUNCH Deepening Our Professional Partnership “For patients just starting their skin care journey, the Lift and Sculpt is perfect. They are getting two great products in one easy step. Keeping the regimen simple will increase compliance, which will ultimately lead to great results” (i a
Slide 40: Grow Brand Awareness
GROW BRAND AWARENESS Building a Flywheel to Drive Consumers to Practices 165% EMV YoY Growth MEDICAL
Slide 41: Grow Brand Awareness: Editorial Credentialing Domestically
GROW BRAND AWARENESS Editorial Credentialing Domestically | BEST OF Le ELLE VOGUE ey 2a2a NS JUL a OS 544M COSMOPOLITAN ei ‘ Impressions e e mariedaire = CUT (\
Slide 42: Grow Brand Awareness: Internationally
GROW BRAND AWARENESS And Internationally 178M Impressions BRITISH VOGLE PASHION MEDICAL
Slide 43: Poised for Long-Term Profitable Growth
POISED FOR LONG-TERM PROFITABLE GROWTH 43 Strong alignment of management incentives to long-term value creation through operational and capital allocation excellence Expertise in managing global beauty brands at scale Asset-light, nimble, and efficient vs. slow, inflexible, and costly traditional st
Slide 44: Appendix
APPENDIX 44
Slide 45: Q3 2024 Highlights
Q3 2024 HIGHLIGHTS 45 (In millions, except for percentages) Q3 2024 % Sales % Growth % Comp Growth Q3 2023 % Sales Waldencast Net Revenue 70.2 100.0% 30.8% 34.6% 53.7 100.0% Adjusted Gross Profit 51.4 73.2% 38.3% 37.2 69.2% Adjusted EBITDA 11.4 16.3% 134.0% 4.9 9.1% Obagi Medical Net Revenue 38.7 10
Slide 46: Q3 YTD 2024 Highlights
Q3 YTD 2024 HIGHLIGHTS 46 (In millions, except for percentages) Nine Months 2024 % Sales % Growth % Comp Growth Nine Months 2023 % Sales Waldencast Net Revenue 201.8 100.0% 23.8% 26.9% 163.0 100.0% Adjusted Gross Profit 150.9 74.8% 37.0% 110.1 67.6% Adjusted EBITDA 29.1 14.4% 54.9% 18.8 11.5% Obagi
Slide 47: Group Comparable Net Revenue Growth
GROUP COMPARABLE NET REVENUE GROWTH Group Obagi Medical (In thousands, except for percentages) Three months ended September 30, 2024 Three months ended September 30, 2023 Nine months ended September 30, 2024 Nine months ended September 30, 2023 Three months ended September 30, 2024 Three months ende
Slide 48: Group Adjusted Gross Profit
GROUP ADJUSTED GROSS PROFIT 1 Relates to the fair value of the related party liability for the unfavorable discount to the Obagi Medical China Business as part of the Business Combination. 2 Relates to the amortization of the inventory fair value step-up as a result of the Business Combination. 3 Re
Slide 49: Brands Adjusted Gross Profit
BRANDS ADJUSTED GROSS PROFIT 49 Obagi Medical Milk Makeup (In thousands, except for percentages) Three months ended September 30, 2024 Three months ended September 30, 2023 Nine months ended September 30, 2024 Nine months ended September 30, 2023 Three months ended September 30, 2024 Three months en
Slide 50: Group Adjusted EBITDA
GROUP ADJUSTED EBITDA 1 Includes mainly legal, advisory and consultant fees related to the financial restatement for FY 2022 and associated regulatory investigation.2 Relates to the fair value of the related party liability for the unfavorable discount to the Obagi Medical China Business as part of
Slide 51: Brands Adjusted EBITDA
BRANDS ADJUSTED EBITDA 51 Obagi Medical Milk Makeup (In thousands, except for percentages) Three months ended September 30, 2024 Three months ended September 30, 2023 Nine months ended September 30, 2024 Nine months ended September 30, 2023 Three months ended September 30, 2024 Three months ended Se
Slide 52: Central Costs Adjusted EBITDA
CENTRAL COSTS ADJUSTED EBITDA Central costs (In thousands, except for percentages) Three months ended September 30, 2024 Three months ended September 30, 2023 Nine months ended September 30, 2024 Nine months ended September 30, 2023 Net Loss $ (8,816) $ (23,759) $ (15,213) $ (47,631) Adjusted For: I
Slide 53: Net Debt Position
NET DEBT POSITION (In thousands) Reconciliation of Net Carrying Amount of debt to Net Debt Current portion of long-term debt $ 27,699 Long-term debt 141,213 Net carrying amount of debt 168,912 Adjustments: Add: Unamortized debt issuance costs 2,715 Less: Cash & cash equivalents (17,648) Net Debt $ 1
Slide 54: Fully Diluted Share Count
FULLY DILUTED SHARE COUNT 54 1 Vested RSUs included in basic shares outstanding as they have been approved but not issued. 2 Waldencast plc Class B shares owned by former members of Milk Makeup. 3 Unvested RSUs includes awards granted in October 2024. 4 Dilution from employee stock rights with exerc