Financial Data and Key Metrics Changes - In Q4 2024, net revenue reached $72.1 million, reflecting a 29.4% increase in comparable growth [26] - For the full year 2024, net revenue was $273.9 million, a 27.5% increase in comparable growth [29] - Adjusted EBITDA for Q4 doubled to $11.2 million, with an adjusted EBITDA margin expansion of 530 basis points year-over-year to 15.5% [27] - Adjusted EBITDA for the full year grew 65.1% to $40.3 million, with an adjusted EBITDA margin of 14.7%, marking a 350 basis point increase from 2023 [30] Business Line Data and Key Metrics Changes - Milk Makeup generated Q4 net revenue of $29.9 million, a 31.9% increase, and for the fiscal year, net revenue was $124.6 million, up 24% from 2023 [39][41] - Obagi Medical recorded Q4 net revenue of $42.2 million, representing a 27.7% growth, and for the fiscal year, net revenue was $149.3 million, a 30.7% increase [56][58] Market Data and Key Metrics Changes - The Prestige Beauty market grew 7% in 2024, with Prestige Makeup growing 5% and Professional Skincare growing 8% [11][12] - Waldencast's brands outpaced the top three competitors, growing three and a half times faster than the average of their peer group [21][66] Company Strategy and Development Direction - The company aims to build a multi-brand platform encompassing strategic key categories, geographies, channels, and price points [23] - The Waldencast Flywheel Effect is a strategy focused on operational efficiency, expanding gross margins, and reinvesting savings into sales and marketing [19][21] - The company is focused on premiumization and the confluence of beauty, aesthetics, and wellness as key growth drivers [88] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of beauty consumers despite a changing macro environment, noting that premium beauty continues to perform well [92][94] - For fiscal year 2025, the company anticipates mid-teens net revenue growth and further expansion of adjusted EBITDA margin into the mid to high teens [36] Other Important Information - The company secured a new $205 million five-year credit facility, enhancing financial flexibility and extending debt maturity through 2030 [35] - The adjusted EBITDA to cash conversion ratio was 78.8% in 2024, supported by effective working capital management [31] Q&A Session Summary Question: Can you provide details on the cadence of innovation and confidence in sales acceleration? - Management indicated that Q1's flat guidance is due to the anniversary of a significant launch and retail inventory adjustments, with expectations for strong acceleration throughout the year [70][72] Question: What are the marketing strategies for both brands this year? - Management plans to increase marketing investments, focusing on broader paid campaigns for Milk Makeup and direct consumer advertising for Obagi [82][86] Question: How is the macro environment affecting consumer health? - Management noted that while the macro environment is changing, beauty consumers remain resilient, with a continued desire for premium products [92][94] Question: Are there any impacts from the Ulta launch on Sephora? - Management confirmed that there is no loss of space at Sephora due to the Ulta launch, although some cannibalization may occur [124][103]