Skinhealth Systems Inc. · NASDAQ:SKIN
Skinhealth Systems — Beauty Health — Q1 2022 Earnings Presentation
24 slides from Skinhealth Systems's earnings presentation, May 10, 2022
Slide 1: First Quarter 2022 Earnings Presentation
FIRST QUARTER 2022 EARNINGS PRESENTATION May 10, 2022
Slide 2: Disclaimer
2 DISCLAIMER This Presentation contains certain forward-looking statements. These statements may relate to, but are not limited to, expectations of future operating results or financial performance of The Beauty Health Company (the "Company"), the calculation of certain key financial and operating m
Slide 3: Agenda
3 j AGENDA 1 Opening Remarks First Quarter 2022 Financial Results 2022 Outlook Q&A 2 3 4
Slide 4: Opening Remarks
4 OPENING REMARKS ANDREW STANLEICK President and Chief Executive Officer
Slide 5: Key Highlights
5 KEY HIGHLIGHTS OUTLOOK AND CONVICTION REMAIN POSITIVE Raising FY22 net sales guidance to a range of $330 – $340 million, reaffirming FY22 adj. EBITDA1 guidance of $50 million 3 STRIDES MADE IN EXECUTION AGAINST STRATEGIC MASTER PLAN Significant progress made in advancing all five pillars 4 HIG
Slide 6: The Master Plan
6 THE MASTER PLAN We are a category creator. We deliver beauty health experiences – reinventing our consumer’s relationship with their skin, bodies, and self-confidence. Expand our footprint by selling innovative products and connected experiences to providers and consumers Invest in our providers,
Slide 7: Syndeo Roadmap
7 SYNDEO ROADMAP Phased delivery system rollout designed to reward a loyal core community, address untapped markets, and drive sales CONNECTIVITY HANDS-FREE LED LIGHT THERAPY GESTURE CONTROL 1Q 2022 2Q 2022 2H 2022 2023+ Phase I Unveil new delivery system Targeted, promotion-led trade-up program
Slide 8: Investing in Our Providers
8 N ew Y or k Lo nd on INVESTING IN OUR PROVIDERS AMWC 2022
Slide 9: Coming Soon
COMING SOON hydrafacial X JLO BEAUTY®
Slide 10: The Consumer Remains Highly Engaged
10 THE CONSUMER REMAINS HIGHLY ENGAGED Google Search Trends for “HydraFacial” at All-Time Highs1 1 Source: Worldwide Google Trends for the period 01/01/16 – 03/31/22 2 Source: “Previous” = third-party research 2019 reflecting pre-COVID conditions, “Current” = third-party research 2022 44 HydraFacial
Slide 11: Building Our Global Infrastructure
11 BUILDING OUR GLOBAL INFRASTRUCTURE Continued supply chain and logistics efficiencies 3PL in Frankfurt to service EMEA in process Deepening the talent bench Technology Marketing Communications China Beijing SingaporeShanghai HFX Tokyo HFX London HFX 1 Photo shown is a rendering Paris
Slide 12: Acquisitions: Enhancing the Flywheel
12 ACQUISITIONS: ENHANCING THE FLYWHEEL Differentiated product or service / high Net Promoter Score Complementary to our existing platform and community, leveraging the trusted a/esthetician Financially attractive profile via compelling revenue growth, recurring revenue characteristics, and /
Slide 13: The Master Plan
13 THE MASTER PLAN We are a category creator. We deliver beauty health experiences – reinventing our consumer’s relationship with their skin, bodies, and self-confidence. Expand our footprint by selling innovative products and connected experiences to providers and consumers Invest in our providers,
Slide 14: First Quarter Results & 2022 Outlook
14 FIRST QUARTER RESULTS & 2022 OUTLOOK LIYUAN WOO Chief Financial Officer
Slide 15: The HydraFacial Economic Model
15 THE HYDRAFACIAL ECONOMIC MODEL Glossary of Key Performance Indicators Delivery System sold to provider Consumables purchased by provider Provider delivers HydraFacial experience to consumer 2 3 1 Provider purchases a Delivery System, enabling them to offer HydraFacial experiences to their consu
Slide 16: First Quarter 2022 Financial Highlights
16 FIRST QUARTER 2022 FINANCIAL HIGHLIGHTS Adjusted EBITDA ($mm)1 Net Sales ($mm) Gross Margin Net Income (Loss) ($mm) Note: Totals may not sum due to rounding 1 Non-GAAP measure; please refer to the appendix for a reconciliation to the appropriate GAAP measure $21,462 Delivery System ASP 21,719 Ins
Slide 17: First Quarter Cost Detail
17 FIRST QUARTER COST DETAIL % Sales ($mm) 1Q22 4Q21 1Q21 ∆ (4Q21 / 1Q21) 1Q22 4Q21 1Q21 ∆ (4Q21 / 1Q21) Commentary Gross Profit $51.9 $56.8 $31.7 ($4.8) / +$20.2 68.9% 72.9% 66.8% (401 bps) / +211bps Higher sales volumes, fixed cost leverage, and margin accretion from distributor acquisitions, pa
Slide 18: Balance Sheet Highlights
18 BALANCE SHEET HIGHLIGHTS Cash and Cash Equivalents $859.2 million cash and cash equivalents on balance sheet1 Warrants Approximately 7 million Private Warrants outstanding Convertible Debt $750 million 1.25% convertible notes due 2026 Use of proceeds: capped call transaction, potential fu
Slide 19: Raising Our 2022 Net Sales Outlook
19 RAISING OUR 2022 NET SALES OUTLOOK Net Sales Outlook ($mm) Reaffirming Adjusted EBITDA Outlook ($mm)1 27% – 31% 2022E Net Sales Growth Final elevated investment year Return to EBITDA focus in 2023 1 Non-GAAP measure; please refer to the appendix for a reconciliation to the appropriate GAAP measur
Slide 20: Q&A
20 Q&A LIYUAN WOO Chief Financial Officer ANDREW STANLEICK President and Chief Executive Officer
Slide 21: Appendix
21 APPENDIX
Slide 22: Reconciliation of Non-GAAP Measures
22 RECONCILIATION OF NON-GAAP MEASURES Reconciliation of Gross Profit to Adjusted Gross Profit and Adjusted Gross Margin Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted EBITDA Margin 1 Represents quarterly management fees paid to the former majority shareholder of HydraFacial bas
Slide 23: Reconciliation of Non-GAAP Measures (Cont'd)
23 RECONCILIATION OF NON-GAAP MEASURES (CONT’D) Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted EBITDA Margin 1 Represents quarterly management fees paid to the former majority shareholder of the Company based on a pre-determined formula. Following the Business Combination, these
Slide 24: We Are a Category Creator
24 WE ARE A CATEGORY CREATO R… DEMO NSTRATING EXCITING GRO WTH... USING A PRO FITABLE & SCALABLE BUSINESS MO DEL... IN A MARKET WITH HUGE GLO BAL O PPO RTUNITY.