Financial Performance - Net sales for Q3 2024 were $78.8 million, a decrease of 19.1% compared to Q3 2023, primarily due to lower delivery systems net sales[5] - Gross margin improved to 51.6% in Q3 2024 from (12.9)% in Q3 2023, driven by the absence of prior year charges and lower inventory-related costs[5] - Adjusted gross margin increased to 69.5% in Q3 2024 from 62.5% in Q3 2023, attributed to lower product costs and a favorable shift towards consumable net sales[5] - The company reported a net loss of $(18.3) million in Q3 2024, significantly improved from a net loss of $(73.8) million in Q3 2023[5] - Adjusted EBITDA for Q3 2024 was $8.1 million, down from $9.1 million in Q3 2023, reflecting lower net sales but higher gross margin[5] - Net sales for the three months ended September 30, 2024, were $78.8 million, a decrease of 19.2% compared to $97.4 million for the same period in 2023[17] - Gross profit for the three months ended September 30, 2024, was $40.6 million, with a gross margin of 51.6%, compared to a gross loss of $12.6 million in 2023[21] - The net loss for the three months ended September 30, 2024, was $(18.3) million, compared to a net loss of $(73.8) million for the same period in 2023[22] - Adjusted EBITDA for the three months ended September 30, 2024, was $8.1 million, with an adjusted EBITDA margin of 10.2%, compared to $9.1 million and 9.3% margin for the same period in 2023[22] Sales and Market Dynamics - The company revised its full-year net sales guidance to $322 million – $332 million, reflecting continued pressure on delivery systems sales[7] - Total delivery systems sold in Q3 2024 were 1,118, down from 2,140 in the prior year period, indicating a challenging macroeconomic environment[5] - Active install base increased to 34,162 as of September 30, 2024, compared to 30,074 in the same period last year[4] - The company successfully launched the Hydralock HA Booster, contributing to growth in consumables sales[2] Operational Changes - The company centralized its global manufacturing footprint in Long Beach, California, concluding its relationship with a third-party manufacturer in China[2] - Total operating expenses for the three months ended September 30, 2024, were $62.2 million, down from $69.5 million in the same period last year[17] - The company incurred manufacturing optimization costs of $7.6 million during the three months ended September 30, 2024[22] Cash Flow and Assets - Cash, cash equivalents, and restricted cash at the end of the period were $358.9 million, down from $523.0 million at the beginning of the period[19] - Total assets decreased to $699.5 million as of September 30, 2024, from $929.1 million as of December 31, 2023[19] - Total liabilities decreased to $639.8 million as of September 30, 2024, from $869.7 million as of December 31, 2023[19] - The company reported a net cash used for operating activities of $0.3 million for the nine months ended September 30, 2024, compared to $26.9 million provided in 2023[20] Expenses and Financial Adjustments - Adjusted gross profit for the three months ended September 30, 2024, was $54.7 million, with an adjusted gross margin of 69.5%[21] - The company reported a significant increase in stock-based compensation expense, totaling $7.7 million for the three months ended September 30, 2024, compared to $8.2 million for the same period in 2023[22] - Interest expense for the three months ended September 30, 2024, was $2.5 million, down from $3.4 million in the same period in 2023[22] - The company experienced a foreign currency loss of $(2.3) million for the three months ended September 30, 2024[22] - The write-off of discontinued, excess, and obsolete products amounted to $2.0 million for the three months ended September 30, 2024[22] Strategic Focus - The company is focused on expanding its product offerings and enhancing its market presence through innovative skin health solutions[24] - The Beauty Health Company emphasizes its commitment to sustainability and positive community impact as part of its business strategy[24]

Core Viewpoint - The Beauty Health Company is facing challenges with its flagship Syndeo 3.0 devices, leading to a decline in stock price despite improvements in operational efficiency and consumable sales growth [5][7][8] Company Overview - The Beauty Health Company specializes in non-invasive facial treatments with a razor and blade business model, selling devices to clinics and spas, and has partnerships with major brands like LVMH and Dior [3][4] Quarter 2 Earnings - CEO Marla Beck has focused on cost-cutting, resulting in a 28% year-on-year reduction in operating expenses [5] - The company experienced a $17 million write-off for faulty Syndeo 3.0 machines, contributing to a decline in revenue and gross margins dropping from approximately 60% to 45% [5][6] - The installed base of devices grew by 3,822 units year-on-year, a 13% increase, although this represents a slowdown from nearly 19% previously [6] Consumables and Revenue - Consumable sales reached a record $55.4 million, up nearly 7% year-on-year, but revenue per installed device has declined due to customers opting for basic services over personalized boosters [6] - The company plans to launch a new clinically proven booster in Q3 to stimulate sales [6] Management and Strategy - The appointment of Sheri Lewis as COO aims to improve supply chain efficiency, with a detailed plan expected in Q3 [6] - The company is exploring new product offerings, including skincare products, although this market is highly competitive [6] Investment Perspective - Despite current challenges, the fundamentals show improvement with increasing consumable sales and a growing installed base [7] - The company has downgraded its rating to 'Buy' from 'Strong Buy' due to concerns over the Syndeo replacement write-offs and the need for proof of operational improvements in future earnings [8]

The Beauty Health Company (NASDAQ:SKIN) Q2 2024 Earnings Conference Call August 8, 2024 4:30 PM ET Company Participants Norberto Aja - Investor Relations Marla Beck - President and CEO Michael Monahan - CFO Conference Call Participants Alec Legg - Canaccord Genuity Allen Gong - JPMorgan Macauley Kilbane - William Blair Joseph Federico - Stifel Neil Goh - TD Cowen Operator Good afternoon, and welcome to The Beauty Health Company Second Quarter 2024 Earnings Conference Call. [Operator Instructions]. Please n ...

For the quarter ended June 2024, The Beauty Health Company (SKIN) reported revenue of $90.6 million, down 22.9% over the same period last year. EPS came in at -$0.10, compared to $0.07 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $98.46 million, representing a surprise of -7.98%. The company delivered an EPS surprise of -100.00%, with the consensus EPS estimate being -$0.05. While investors scrutinize revenue and earnings changes year-over-year and how they compa ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Class A Common Stock, par value $0.0001 per share SKIN The Nasdaq Capital Market FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCH ...

Exhibit 99.1 BeautyHealth Reports Second Quarter 2024 Financial Results Delivers second quarter net sales of $90.6 million; Year-over-year operating expense improvement of nearly $18 million or 22%; Revises full year financial guidance Long Beach, Calif., August 8, 2024 – The Beauty Health Company (NASDAQ: SKIN) ("BeautyHealth"), home to flagship brand Hydrafacial, today announced financial results for the second quarter ended June 30, 2024 ("Q2 2024"). For the quarter, net sales of $90.6 million decreased ...

The Beauty Health Company (NASDAQ:SKIN) Q1 2024 Earnings Conference Call May 9, 2024 4:30 PM ET Company Participants Norberto Aja – Investor Relations Marla Beck – Chief Executive Officer Mike Monahan – Chief Financial Officer Conference Call Participants Oliver Chen – TD Cowen Allen Gong – JPMorgan Susan Anderson – Canaccord Genuity Olivia Tong – Raymond James Joe Federico – Stifel Korinne Wolfmeyer – Piper Sandler Operator Hello, and welcome to The Beauty Health First Quarter 2024 Earnings Conference Call ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Delaware 85-1908962 Commission File Number: 001-39565 Washington, D.C. 20549 FORM 10-Q The Beauty Health Company (Exact name of registrant as specified in its charter) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE ...

Exhibit 99.1 BeautyHealth Reports First Quarter 2024 Financial Results Delivers first quarter net sales of $81.4 million; year-over-year operating expense improvement of $6.1 million Repurchases $192.3 million of convertible notes through May 8th Long Beach, Calif., May 9, 2024 – The Beauty Health Company (NASDAQ: SKIN) ("BeautyHealth"), home to flagship brand Hydrafacial, today announced financial results for the first quarter ended March 31, 2024. First quarter net sales of $81.4 million decreased (5.7)% ...

The Beauty Health Company (NASDAQ:SKIN) Q4 2023 Earnings Conference Call March 12, 2024 4:30 PM ET Company Participants Norberto Aja - Investor Relations Marla Beck - Chief Executive Officer Michael Monahan - Chief Financial Officer Conference Call Participants Olivia Tong - Raymond James Oliver Chen - TD Cowen Allen Gong - JPMorgan Alec Legg - Canaccord Genuity Jon Block - Stifel Korinne Wolfmeyer - Piper Sandler Ashley Helgans - Jefferies Operator Good afternoon and welcome to The Beauty Health Company's ...