Beauty Health Co
NASDAQ:SKIN
Beauty Health Co
The Beauty Health Co. engages in manufacturing and selling of serum-based hydradermabrasion systems and aesthetic products. The company is headquartered in Long Beach, California and currently employs 704 full-time employees. The company went IPO on 2020-02-10. The company and its subsidiaries designs, develops, manufactures, markets, and sells aesthetic technologies and products. Its flagship brand, HydraFacial, has created the category of hydra dermabrasion by using a patented Vortex-Fusion Delivery System (Delivery Systems) to cleanse, peel, exfoliate, extract, infuse, and hydrate the skin with proprietary solutions and serums. The firm has omnichannel place Delivery Systems where consumers live, work, and play, including medical offices, Medi spas, day spas, hotels, resorts, gyms, wellness centers, and other retail settings. HydraFacial is accessible and appropriate for consumers across all genders, ages, and skin types. The company provides Keravive, which is a treatment designed to cleanse, exfoliate, and hydrate the scalp. HydraFacial is available in over 90 countries with an install base of approximately 20,399 Delivery Systems.
The Beauty Health Co. engages in manufacturing and selling of serum-based hydradermabrasion systems and aesthetic products. The company is headquartered in Long Beach, California and currently employs 704 full-time employees. The company went IPO on 2020-02-10. The company and its subsidiaries designs, develops, manufactures, markets, and sells aesthetic technologies and products. Its flagship brand, HydraFacial, has created the category of hydra dermabrasion by using a patented Vortex-Fusion Delivery System (Delivery Systems) to cleanse, peel, exfoliate, extract, infuse, and hydrate the skin with proprietary solutions and serums. The firm has omnichannel place Delivery Systems where consumers live, work, and play, including medical offices, Medi spas, day spas, hotels, resorts, gyms, wellness centers, and other retail settings. HydraFacial is accessible and appropriate for consumers across all genders, ages, and skin types. The company provides Keravive, which is a treatment designed to cleanse, exfoliate, and hydrate the scalp. HydraFacial is available in over 90 countries with an install base of approximately 20,399 Delivery Systems.
Revenue Decline: Q3 net sales were $70.7 million, down 10.3% year-over-year, but slightly ahead of the high end of the company's forecast.
Device Sales Weakness: Device segment revenue fell 24.6% year-over-year, mainly due to macro pressures and a shift to a distributor model in China.
Consumables Resilience: Consumables revenue declined 2.6%, but would have increased modestly excluding China; consumable mix rose to 71% of net sales.
Margin Strength: Adjusted EBITDA was $8.9 million (up 11% YoY), and adjusted EBITDA margin improved by about 240 basis points to 12.6%.
Guidance Raised: The company raised the low end of both full-year revenue and adjusted EBITDA guidance, reflecting greater confidence heading into year-end.
Cost Discipline: Operating expenses fell 16.5% year-over-year, with significant reductions in sales and marketing and G&A costs.
Inventory & Balance Sheet: Inventory hit a three-year low at $56.1 million; a major debt refinancing extended maturities and increased financial flexibility.
Macro Challenges: Management highlighted ongoing inflation, financing headwinds for capital equipment, and uneven consumer confidence as persistent challenges.
