Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with the traditional "buy low and sell high" strategy, but it carries risks if future growth does not justify high valuations [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their growth potential fails to justify inflated valuations [1] - A safer approach may involve investing in bargain stocks that have recently shown price momentum [2] Group 2: The Beauty Health Company (SKIN) - The Beauty Health Company (SKIN) has shown a four-week price change of 5.2%, indicating growing investor interest [3] - SKIN has gained 103.7% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.22, suggesting it moves 22% higher than the market in either direction, indicating fast-paced momentum [4] - SKIN has a Momentum Score of B, suggesting it is a favorable time to invest in the stock [5] - The stock has a Zacks Rank 2 (Buy) due to upward trends in earnings estimate revisions, which attract more investors [6] - SKIN is trading at a Price-to-Sales ratio of 0.79, indicating it is reasonably valued at 79 cents for each dollar of sales [6] Group 3: Additional Investment Opportunities - Besides SKIN, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles, which can help identify winning stock picks [8]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lead to limited upside or downside risks [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: The Beauty Health Company (SKIN) - The Beauty Health Company (SKIN) has shown significant recent price momentum, with a four-week price change of 19.4% [4] - Over the past 12 weeks, SKIN's stock has gained 82.8%, indicating strong long-term momentum [5] - SKIN has a Momentum Score of A, suggesting it is an opportune time to invest in the stock [6] Group 3: Earnings Estimates and Valuation - SKIN has received upward revisions in earnings estimates, earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - The stock is currently trading at a Price-to-Sales ratio of 0.75, indicating it is attractively priced relative to its sales [7] Group 4: Additional Investment Opportunities - Besides SKIN, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Core Insights - The Beauty Health Company has launched the Hydrafacial HydraFillic with Pep9™ Booster, a new skin treatment designed to visibly improve fine lines, wrinkles, and overall skin health through a proprietary complex of nine peptides [1][19] - The product aims to meet the rising consumer demand for non-invasive treatments that address aging signs and enhance skin health, as 81% of beauty consumers prioritize fine lines and wrinkles as their main skin concern [2][3] Product Details - The HydraFillic with Pep9™ Booster is clinically proven to enhance skin appearance, hydration, and barrier strength, resulting in a firmer and more youthful complexion [1][19] - Clinical testing showed significant improvements in skin firmness (100%), overall glow (96%), and reduced appearance of fine lines (83%) among participants after treatment [6][9] - Key ingredients include a proprietary complex of nine peptides, Triple Hyaluronic Acid Complex, and fruit extracts, which work synergistically to improve skin hydration and minimize aging signs [7][8] Market Context - The launch reflects the company's commitment to innovation in non-invasive aesthetic treatments, leveraging advanced device technology and novel skincare formulations [1][3] - The HydraFillic with Pep9™ Booster is positioned to empower providers to customize treatments based on individual client needs, aligning with current aesthetic trends focused on longevity and skin health [2][4]

Core Insights - The BeautyHealth Company has reached a significant milestone with 35,000 Hydrafacial devices installed globally, solidifying its leadership in the hydradermabrasion market [1][2] - The Hydrafacial treatment has seen approximately 5 million treatments delivered in the past year, indicating strong demand and consumer trust [2][5] - Hydrafacial ranks as the second most recognized facial treatment in the U.S., with a 96% "Worth It" rating on RealSelf and a Net Promoter Score of 52, showcasing high consumer satisfaction [2][4] Company Performance - The Hydrafacial treatment is responsible for driving about 7% of new patients to medical spas and aesthetic practices annually, highlighting its role in practice growth [2][4] - The treatment combines seven skin therapies, resulting in visible improvements and a boost in consumer confidence with no downtime [2][3] Market Trends - There is a growing trend towards non-invasive aesthetic treatments that prioritize skin health, which aligns with the offerings of Hydrafacial [2][3] - The success of Hydrafacial reflects a shift in beauty trends favoring a natural and effortless look [2]

Core Viewpoint - The Beauty Health Company has announced a refinancing initiative aimed at strengthening its financial position and extending the maturity of a portion of its existing debt, which will facilitate long-term growth investments [2]. Group 1: Refinancing Details - The company has entered into exchange agreements to swap approximately $413.2 million of existing 1.25% convertible senior notes due 2026 for $250.0 million of new 7.95% convertible senior secured notes due 2028, along with approximately $143.4 million in cash [2]. - The new notes will be senior, secured obligations guaranteed by certain subsidiaries and will bear an interest rate of 7.95% per annum [2]. - The initial conversion rate for the new notes is set at 349.6503 shares per $1,000 principal amount, translating to a conversion price of approximately $2.86 per share [2]. Group 2: Strategic Focus - The CEO emphasized that the refinancing is a critical step in enhancing the company's financial flexibility, allowing for investments in innovation and brand initiatives [2]. - The company aims to improve commercial execution, accelerate product development, and deepen engagement with providers [2]. Group 3: Transaction Advisors - Goldman Sachs is serving as the exclusive financial advisor for the transaction, while Latham & Watkins LLP is acting as transaction counsel [3].

Core Viewpoint - The Beauty Health Company held its Q1 2025 earnings conference call to discuss financial results and future outlook [1][3]. Group 1: Company Overview - The Beauty Health Company is publicly traded on NASDAQ under the ticker SKIN [1]. - The conference call featured key executives including Marla Beck (President and CEO) and Mike Monahan (CFO) [3]. Group 2: Financial Reporting - The company released its Q1 2025 financial results earlier in the day, which are available on its corporate website [3]. - The call included discussions on non-GAAP financial measures, with reconciliations provided in the earnings press release [5].

First Quarter 2025 Earnings Presentation May 8, 2025 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"), capital expenditures, the introduction of new products, market strategy and the ability to execute certain strategic initiatives. Some of the forward-looking statements can be identified by the use of forward- looking ...

Core Insights - The Beauty Health Company (SKIN) reported a revenue of $69.6 million for the quarter ended March 2025, reflecting a year-over-year decline of 14.5% [1] - The earnings per share (EPS) was -$0.08, an improvement from -$0.10 in the same quarter last year, with a positive surprise of 38.46% compared to the consensus estimate of -$0.13 [1] - The reported revenue exceeded the Zacks Consensus Estimate of $63.12 million by 10.26% [1] Financial Performance Metrics - Total delivery systems sold reached 862, surpassing the average estimate of 573 based on two analysts [4] - The active install base was reported at 35,014, slightly below the average estimate of 35,090 [4] - Geographic revenue breakdown showed: - Americas: $46.30 million, exceeding the estimate of $43.49 million, but down 8% year-over-year [4] - EMEA: $15 million, above the estimate of $13.60 million, with a year-over-year decline of 21.5% [4] - Asia Pacific: $8.30 million, surpassing the estimate of $6.98 million, down 30.8% year-over-year [4] - Delivery Systems Net Sales were $20.20 million, exceeding the estimate of $14.30 million, but down 43.6% year-over-year [4] - Consumables Net Sales reached $49.40 million, slightly above the estimate of $48.24 million, reflecting an increase of 8.3% year-over-year [4] Stock Performance - Shares of Beauty Health have increased by 31.5% over the past month, outperforming the Zacks S&P 500 composite, which rose by 11.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Beauty Health Company (SKIN) reported a quarterly loss of $0.08 per share, better than the Zacks Consensus Estimate of a loss of $0.13, representing an earnings surprise of 38.46% [1] - The company generated revenues of $69.6 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 10.26%, although this is a decline from $81.4 million in the same quarter last year [2] - Beauty Health shares have declined approximately 10.7% year-to-date, compared to a 4.3% decline in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.06 on revenues of $75.25 million, and for the current fiscal year, it is -$0.32 on revenues of $285.58 million [7] - The estimate revisions trend for Beauty Health is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Medical Services industry, to which Beauty Health belongs, is currently ranked in the top 22% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was reported at $69.6 million, exceeding guidance, with adjusted gross margin at 71.9% and adjusted EBITDA at $7.3 million [16][20][22] - Consumable sales totaled $49.4 million, reflecting an 8.2% increase year-over-year, with gross margin improvements driven by better inventory management and a favorable mix towards consumables [16][20][22] - Operating loss improved to $12 million compared to a loss of $17 million in the prior year [21] Business Line Data and Key Metrics Changes - Consumables grew over 8% and now represent over 70% of total revenue, indicating a shift towards high-margin products [6][16] - Total active devices in the field increased to 35,014 units, up from 32,530 units year-over-year, highlighting demand for HydroFacial devices [16][20] Market Data and Key Metrics Changes - Consumable net sales increased by 3.5% in The Americas, 40.2% in APAC, and 7.9% in EMEA, while global device sales saw a 43.5% decline year-over-year due to macroeconomic pressures [17][19] - Revenue in The Americas decreased by 8.1%, while APAC and EMEA revenues declined by 30.4% and 21.6% respectively, with the decline in APAC attributed to a transition to a distributor model in China [19] Company Strategy and Development Direction - The company is focused on three strategic priorities: enhancing commercial execution, accelerating science-backed innovation, and deepening provider partnerships [8][12][27] - The transition to a third-party distribution model in China aims to simplify operations and lower capital intensity while maintaining access to a high-growth market [9][19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macro environment, with expectations for slight improvement in the back half of 2025, while acknowledging ongoing uncertainties [32][60] - The company is committed to driving sustainable margin expansion and delivering long-term shareholder value through strategic initiatives [25][27] Other Important Information - The company expects capital expenditures of approximately $10 million to $15 million for the full year 2025, with guidance for Q2 sales projected between $71 million and $76 million [22][23] - Tariff impacts are estimated at approximately $5 million for 2025, with ongoing adjustments based on evolving conditions [24][90] Q&A Session Summary Question: Key drivers behind better profitability and potential areas of upside - Management highlighted initiatives such as lower price equipment options and improved sales execution as key drivers for profitability, while remaining cautious due to macro uncertainties [30][32] Question: Signs of consumer pullback amid macro uncertainty - Management noted strong growth in signature treatments, with some softness in luxury treatments, indicating a bifurcated consumer demand landscape [33][35] Question: Impact of new product launches on consumables - The HydraLock launch is expected to drive consumer traffic and provider revenue, with excitement around upcoming product launches [39][41] Question: Marketing spend and tactics for the year - The company plans to maintain marketing spend as a percentage of revenue while focusing on driving end consumer traffic to providers [80][82] Question: Progress on distributor model in China and tariff impacts - The transition to a distributor model in China is underway, with management working to mitigate tariff impacts through strategic planning [87][90]