08.09.23
Net sales for The Beauty Health Company, home to flagship brand Hydrafacial, of $117.5 million increased 13% year-over-year, continuing a trend of double-digit quarterly growth for the second quarter ended June 30, 2023.
“In the second quarter, we recommitted to our core and, in doing so, delivered consistent double-digit top-line performance and profitability in line with expectations,” said BeautyHealth President and CEO Andrew Stanleick. “At the same time, we are readying the organization for the next phase of growth, with a fortified executive team, robust innovation pipeline and disciplined approach to harnessing the enormous global market opportunity in front of us.”
Consumables net sales growth was +34% year-over-year, driven by strong volumes as demand for Hydrafacial treatments continues.
Delivery system net sales growth for the quarter was +1% year-over-year as the company lapped $23.3 million in trade-up demand in the second quarter of last year associated with Syndeo's U.S. launch. Excluding trade-up demand, delivery systems net sales growth for the quarter was +30%.
Of note, the mix of delivery systems sold shifted towards lower-margin refurbished devices amidst a tightening credit environment and as US providers awaited Syndeo enhancements in the third quarter of 2023 to improve the user experience. This unfavorably impacted gross margin for the quarter.
Net sales in the APAC region grew +143% year-over-year, or +92% when excluding trade-ups. Of note, China's net sales growth returned to pre-pandemic levels, growing +265% or +167% when excluding trade-ups. EMEA showed momentum, reporting net sales growth of +61%, or +37% when excluding trade-ups. In the Americas region, the change in net sales was (16)%, or +18% when excluding trade-ups.
Strategic and Pipeline Highlights
The Beauty Health Company partnered with LaserAway, one of the largest aesthetic chains in the US, to supply Hydrafacial Syndeo devices to its more than 125 locations and any new practice sites to be opened through 2025. It continued expansion of Hydrafacial's Sephora presence now to three continents with new doors in Australia and Malaysia anticipated in the second half of the year. The company also received FDA clearance for a new facial acne scarring indication for SkinStylus, making it the only microneedling device FDA-cleared for treatment on both the face and abdomen.
The brand also unveiled a custom Dior by Hydrafacial Syndeo delivery system at Dior Spa Cruise 2023 for exclusive use at select Dior spas worldwide and launched a reimagined GLOWvolution campaign in New York and Los Angeles, generating more than 1,200% growth in earned media value compared to last year's program.
The brand also unveiled a custom Dior by Hydrafacial Syndeo delivery system at Dior Spa Cruise 2023 for exclusive use at select Dior spas worldwide and launched a reimagined GLOWvolution campaign in New York and Los Angeles, generating more than 1,200% growth in earned media value compared to last year's program.
New CEO Named
In personnel news, the Beauty Health Company has named Michael Monahan chief financial officer effective August 10.
He succeeds Liyuan Woo, who is leaving BeautyHealth, but will remain as an advisor until September 1 to assist with the transition.
"Michael joins BeautyHealth as we bring to life our vision of a multi-brand ecosystem company, with a significant and untapped runway ahead,” said BeautyHealth President and CEO Andrew Stanleick. “He is a highly regarded CFO with a strong blend of financial expertise and strategic vision who will continue to enhance our financial strategy, planning and reporting capabilities. I am looking forward to welcoming Michael to BeautyHealth’s management team.”
With 15 years of experience as a public and private company CFO and more than 25 years of accounting and financial management experience, Monahan has a track record of driving financial and operational success in high-growth businesses. Most recently, he served as CFO of Casper Sleep, following its IPO. Prior, he served as CFO of Nutrisystem, quintupling its market cap and overseeing key M&A during his tenure.