AirSculpt Technologies(US:AIRS)2025-11-07 14:32Financial Data and Key Metrics Changes - Revenue for Q3 was $35 million, a 17.8% decline compared to the prior year quarter, with same-store revenue down approximately 22% [13] - Cases declined 15.2% to 2,780, with same-store cases down approximately 20% [13] - Average revenue per case was $12,587, a decline of approximately 3% from the prior year quarter [14] - Adjusted EBITDA was $3 million, down from $4.7 million in the prior year quarter, with an adjusted EBITDA margin of 8.7% compared to 11% [15] - Net loss for the quarter was $9.5 million, with an adjusted net loss of $2.4 million, or $0.04 per diluted share [15] Business Line Data and Key Metrics Changes - The introduction of skin tightening services has seen a lift in demand, but many clients require additional procedures for loose skin beyond what skin tightening can address [6][7] - The company is expanding its service offerings to include skin excisions and removals, which are currently in pilot [25][26] Market Data and Key Metrics Changes - Global GLP-1 prescriptions have grown at roughly 38% annually between 2022 and 2024, with total sales expected to reach $100 billion by 2030 [5] - 63% of GLP-1 patients are seeking aesthetic treatments post-use, indicating a new consumer base for the company [6] Company Strategy and Development Direction - The company is focusing on three key areas: introducing new services to capture the GLP-1 opportunity, enhancing sales and marketing strategies, and maintaining financial discipline [4][11] - A strategic review led to the closure of the unprofitable London center, allowing resources to be redirected to North America locations [9] Management's Comments on Operating Environment and Future Outlook - Management noted that while Q3 revenue was lower than expected, it reflects timing rather than a change in business trajectory, with improving same-store sales trends anticipated for Q4 [9][32] - The company updated its annual outlook, expecting 2025 revenue of approximately $153 million, down from previous guidance of $160 million-$170 million [9][19] Other Important Information - Michael Arthur will join as Chief Financial Officer in January 2026, succeeding Dennis Dean, who will retire [10] - Dr. Aaron Rollins resigned from the board for personal reasons, with no disagreements reported [10] Q&A Session Summary Question: Can you elaborate on the cost-cutting measures taken by line and their sustainability? - Management indicated that cost controls have primarily focused on SG&A, with ongoing efforts to identify additional savings [21][22] Question: What is the uptake for the standalone skin tightening service and plans for expansion? - Management noted that demand for solutions addressing loose skin is evident, with plans to pilot skin excisions and expand services across centers [24][25] Question: What were the timing issues affecting Q3 performance? - Management explained that while leads and consultations remained strong, consumer hesitance to convert from interest to purchase impacted revenue [30][31] Question: How will marketing strategies shift to target the GLP-1 user segment? - Management confirmed that messaging will be tailored to GLP-1 users, focusing on addressing loose skin and uneven weight loss [33][35]