Nu Skin(NUS) - 2024 Q3 - Quarterly Results

Revenue Performance - Q3 2024 revenue was $430.1 million, a decrease of 13.8$(16.7) million[1][2] - Full-year 2024 revenue is expected to be in the range of $1.70 billion to$1.73 billion, a decrease of 14% to 12%[5] - Total revenue for the nine months ended September 30, 2024, was $1,286,532, a decrease of 13.1$1,480,491 in 2023[14] - Revenue for Q3 2024 was $430,145, a decrease of 13.8$498,772 in Q3 2023[25] - Q4 2024 revenue guidance is projected between $410 million and$445 million, reflecting a decline of 16% to 9%[4] - The Americas segment reported revenue of $237,160, down 21.1$300,469 in the previous year[14] Customer and Affiliate Metrics - The number of customers decreased by 15% to 831,768, while paid affiliates dropped by 20% to 149,264[1][2] - Total paid affiliates decreased by 20% to 149,264 from 186,162 in the same period last year[15] - The total number of customers fell by 15% to 831,768 from 978,907 year-over-year[16] Profitability and Margins - Gross margin improved to 70.1% compared to 58.6% in the prior year, with Nu Skin business gross margin at 76.5%[2] - Operating margin for Q3 2024 was 4.2%, compared to (5.3)% in the prior year[2] - The company reported a gross profit of $301,463 for Q3 2024, up from$292,267 in Q3 2023[21] - Gross profit for Q3 2024 was $301,463, compared to$292,267 in Q3 2023, reflecting a year-over-year increase of 3.9%[23] - Adjusted gross profit, excluding the impact of inventory write-off, was $301,463 for Q3 2024, down from$357,995 in Q3 2023, indicating a decrease of 15.8%[23] - Gross margin for Q3 2024 was 70.1%, up from 58.6% in Q3 2023, while the gross margin excluding inventory write-off impact was 70.1%, compared to 71.8% in Q3 2023[23] Income and Earnings - Operating income for Q3 2024 was $18,231, compared to a loss of$26,365 in Q3 2023[21] - Net income for Q3 2024 was $8,302, a significant improvement from a net loss of$36,955 in Q3 2023[21] - The effective tax rate for Q3 2024 was 37.6%, compared to (7.3)% in Q3 2023, indicating a substantial change in tax obligations[26] - Diluted earnings per share for Q3 2024 was $0.17, compared to a loss of$(0.74) in Q3 2023[27] - The company reported an adjusted operating income of $18,231 for Q3 2024, compared to$39,363 in Q3 2023, reflecting a decrease of 53.7%[25] Cost Management - The company saved an additional $15 million in general and administrative expenses during the quarter, aiming for total savings of$45 to $65 million for 2024[5] - The company generated$31.4 million in cash from operations and reduced inventory levels by $43 million year-over-year[5] Asset and Liability Changes - Total assets decreased to$1,590,895 from $1,806,463 at the end of 2023[22] - Goodwill decreased significantly to$99,885 from $230,768 at the end of 2023[22] - Total liabilities decreased to$876,020 from $984,495 at the end of 2023[22]