Skinhealth Systems Inc. · NASDAQ:SKIN
Skinhealth Systems — Beauty Health — Q2 2022 Earnings Presentation
24 slides from Skinhealth Systems's earnings presentation, Aug 9, 2022
Slide 1: Q2 2022 Earnings Presentation
1 Q2 2022 EARNINGS PRESENTATION AUGUST 9, 2022
Slide 2: Agenda
2 Opening Remarks AGENDA Q2 2022 Results & Outlook Q&A
Slide 3: Disclaimer
3 DI SCLAI MER This Presentation contains certain forward-looking statements. These statements may relate to, but are not limited to, expectations of future operating resul ts or financial performance of The Beauty Health Company (the "Company"), the calculation of certain key financial and operatin
Slide 4: Opening Remarks
4 OPENI NG REMARKS Andrew Stanleick President & Chief Executive Officer
Slide 5: Q2 Results Exceeded Expectations and Demonstrated Accelerating Momentum
5 Q2 RESULTS EXCEEDED EXPECTATI ONS AND DEMONSTRATED ACCELERATI NG MOMENTUM +85.4% YoY increase in Delivery Systems net sales $103.5mm net sales +55.7% growth YoY $12.6mm adjusted EBITDA +10.9% growth YoY $340 – $350mm net sales $50mm adjusted EBITDA Adjusted EBITDA margin climbing to historical lev
Slide 6: Global Strength Drove Record Net Sales
6 GLOBAL STRENGTH DROVE RECORD NET SALES Accelerating Syndeo rollout ▪ +76.6% YoY net sales growth ▪ Driven by strong demand for Syndeo A M E R IC A S Driving penetration in existing and new channels ▪ +56.0% YoY net sales growth ▪ Driven by high conversion in marketing activations across the region
Slide 7: Significant Progress on Our 5-Point Master Plan
7 Place systems Invest in providers Drive brand awareness Build global infrastructure SI GNIFICANT PROGRESS ON OUR 5-POI NT MASTER PLAN M&A 21 43 5
Slide 8: Successfully Executing Our Syndeo Rollout
8 2,265 Total Syndeo systems placed +108.3% sequential growth1 1 Q2 2022 Americas delivery systems sold vs Q1 2022 Americas delivery systems sold Love the app integration for consumers and how it tracks their treatments. —Provider, Colorado Springs, CO Easier to use with the no-touch system and prov
Slide 9: Accelerating Toward Planned 2023 Global Roll-Out
9 1 ACCELERATI NG TOWARD PLANNED 2023 GLOBAL ROLL -OUT Q1 2022 Q2 2022 Q3 2022 Q4 2022 2023+ Phase I Targeted, promotion-led trade-up program to reward loyal provider base Phase II Focused effort to place new units and grow in sizable underpenetrated US market Phase III Continue expansion and launch
Slide 10: Uniting #GunkieJunkies at Estipalooza
10 2 UNI T I NG #GUNKI EJUNKI ES AT EST I PALOOZA
Slide 11: Investing in Our Providers via Activations and Trade Shows
11 I NV ESTI NG I N OUR PROV I DERS V I A ACTI V ATI ONS AND TRADE SHOWS2
Slide 12: Generating Record Consumer Interest with Focus on Super Consumers
12 Jan-19 Jul-19 Jan-20 Jul-20 Dec-20 Jun-21 Dec-21 Jun-22 Interest over time 2Q22 average Record Google Search activity 2Q22 average +30% vs 2Q21 Highest-ever quarterly earned media value ($mm) $1.4 $2.0 $1.9 $1.3 $1.8 $1.2 $1.3 $1.9 $2.3 $1.9 $2.0 $1.5 $2.5 $2.8 2Q22 +52% vs 2Q21 Source: Google, T
Slide 13: Investing in Global Infrastructure
13 ✓ Full implementation and integration of international ERP by the end of 2022 ✓ Global network optimization underway ✓ Key hires; experience center and global presence optimization in process I NV ESTI NG I N GLOBAL I NF RASTRUCTURE4
Slide 14: Accelerating the Beauty Health Platform Through M&A
14 Differentiated product or service / high Net Promoter Score Complementary to our existing platform and community, leveraging the trusted aesthetician Financially attractive profile via compelling revenue growth, recurring revenue characteristics, and / or profitability Acquisition criteria Playbo
Slide 15: Second Quarter Results & 2022 Outlook
15 SECOND QUARTER RESULTS & 2022 OUTLOOK Liyuan Woo Chief Financial Officer
Slide 16: Q2 2022 Financial Highlights
16 Q2 2022 FI NANCI AL HI GHLI GHTS Net sales by region ($mm)Net sales by segment ($mm) 34.9 41.5 23.3 31.6 38.8 $66.5 $103.5 2Q21 2Q22 Delivery Systems Consumables +85.4% (incl. trade- ups) +22.8% +55.7% 42.7 75.4 12.4 10.4 11.4 17.8 $66.5 $103.5 2Q21 2Q22 Americas APAC EMEA +76.6% (16.5%) +55.7% T
Slide 17: Q2 2022 Financial Highlights (Cont'd)
17 71.0% 69.2% 74.9% 72.3% 2Q21 2Q22 2Q21 2Q22 Q2 2022 FI NANCI AL HI GHLI GHTS (CONT’D) Gross margin and adjusted gross margin1 Net income (loss) and adjusted net income (loss) ($mm)1 Adjusted EBITDA ($mm)1 1 Non-GAAP measure; please refer to the appendix for a reconciliation to the appropriate GAA
Slide 18: 2Q22 Cost Detail
18 2Q22 COST DETAI L % Net Sales ($mm) 2Q22 1Q22 2Q21 ∆ 1Q22 / ∆ 2Q21 2Q22 1Q22 2Q21 ∆ 1Q22 / ∆ 2Q21 Commentary Gross Profit $71.7 $51.9 $47.3 $19.7 / $24.4 69.2% 68.9% 71.0% 0.3% / (1.8%) Higher supply chain and logist ics costs and t rade-up impact from Syndeo, part ly offset by margin accret ion
Slide 19: 2Q22 Balance Sheet Highlights
19 2Q22 BALANCE SHEET HI GHLI GHTS Cash and Cash Equivalents ▪ Approximately $821.0 million cash and cash equivalents on balance sheet1 Warrants ▪ Approximately 7.0 million Private Warrants outstanding Convertible Debt ▪ $750.0 million 1.25% convertible notes due 2026 ▪ Use of proceeds: capped call
Slide 20: 2022 Outlook: Confidence in Our Ability to Execute
20 2022 OUTLOOK: CONFI DENCE I N OUR ABI LI TY TO EXECUTE Strong track record of net sales outperformance ($mm) $44.1 $49.2 $58.0 $71.1 $68.1 $83.9 $47.5 $66.5 $68.1 $77.9 $75.4 $103.5 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 Consensus Estimate Actual Adjusted EBITDA outlook ($mm)1 Source: FactSet complied con
Slide 21: Q&A
21 Andrew Stanleick President and Chief Executive Officer Liyuan Woo Chief Financial Officer Q&A
Slide 22: Appendix
22 APPENDI X
Slide 23: Reconciliation of Non-GAAP Financial Measures
23 RECONCI LIATI ON OF NON-GAAP FI NANCI AL MEASURES 1 Represents quarterly management fees paid to the majority shareholder of HydraFacial based on a pre- determined formula. Following the Business Combination, these fees are no longer paid 2 For the three months ended June 30, 2022, such amounts p
Slide 24: We Are a Disruptor
24 WE ARE A DISRUPTOR… DEMONSTRATING EXCITING GROWTH... USING A PROFITABLE & SCALABLE BUSINESS MODEL... IN A MARKET WITH HUGE GLOBAL OPPORTUNITY.