Latest news with #Hydrafacial
Yahoo
3 hours ago
- Business
- Yahoo
SKIN Q1 Earnings Call: Consumables Growth, Equipment Headwinds, and Tariff Impact Shape Outlook
Skincare company BeautyHealth (NASDAQ:SKIN) reported revenue ahead of Wall Street's expectations in Q1 CY2025, but sales fell by 14.5% year on year to $69.58 million. On the other hand, next quarter's revenue guidance of $73.5 million was less impressive, coming in 2.9% below analysts' estimates. Its GAAP loss of $0.08 per share was 37.6% above analysts' consensus estimates. Is now the time to buy SKIN? Find out in our full research report (it's free). Revenue: $69.58 million vs analyst estimates of $63.34 million (14.5% year-on-year decline, 9.9% beat) EPS (GAAP): -$0.08 vs analyst estimates of -$0.13 (37.6% beat) Adjusted EBITDA: $7.3 million vs analyst estimates of -$5.54 million (10.5% margin, significant beat) The company reconfirmed its revenue guidance for the full year of $285 million at the midpoint EBITDA guidance for the full year is $20 million at the midpoint, above analyst estimates of $11.98 million Operating Margin: -17.3%, up from -20.9% in the same quarter last year Market Capitalization: $201.6 million BeautyHealth's first quarter performance was shaped by continued growth in consumables and improvements in gross margin, despite a double-digit decline in overall sales. CEO Marla Beck emphasized that consumables now represent over 70% of revenue, driven by robust demand for Hydrafacial's signature treatments among medical aesthetics providers. The company highlighted that sales of new boosters, particularly the Hydralock HA, have helped practices attract more consumers, while operational changes—such as consolidating production in the U.S.—have yielded cost efficiencies and reduced tariff exposure. Management cited ongoing macroeconomic pressures affecting equipment sales, with global device sales down sharply year over year. The team also pointed to enhanced inventory management and cost discipline as key contributors to improved profitability during the quarter. Looking ahead, BeautyHealth's guidance reflects both opportunities and risks as the company executes its transformation strategy. Management plans to accelerate innovation with new product launches, including the hydrophilic booster and back bar skincare products, while investing in provider partnerships and targeted marketing. CFO Mike Monahan noted that the company's outlook factors in ongoing macroeconomic uncertainty and the impact of tariffs, especially in the APAC region. Beck stated, 'We are confident that as we continue to execute, we will drive long-term shareholder value,' but also acknowledged that equipment sales are expected to remain under pressure and that tariffs could offset typical margin seasonality. Management remains focused on balancing operational discipline with investments aimed at sustaining long-term growth. Management attributed first quarter results to consumables-driven revenue, operational efficiencies, and a shift in sales strategy, while ongoing macro and tariff pressures affected equipment demand and regional performance. Consumables growth offsets equipment weakness: BeautyHealth saw strong performance in consumables, which increased over 8% year-over-year and now account for the majority of revenue. This was driven by steady demand for signature Hydrafacial treatments and the successful launch of new boosters, such as Hydralock HA, which management described as a 'traffic driver' for practices. Device sales remain challenged: Global device sales declined significantly as macroeconomic uncertainty continued to limit capital spending by providers. Management cited a 43.5% drop in this segment and addressed this by expanding lower-priced equipment options with its 'good, better, best' device strategy, helping to broaden provider access despite a tough market. Operational changes reduce tariff risk: The company completed consolidation of production to the U.S. in the prior quarter, reducing exposure to import tariffs and enhancing supply chain efficiency. CFO Mike Monahan explained that this strategic move, along with targeted inventory placement, has helped mitigate some cost pressures, though $5 million in tariff costs are still expected for the year. Regional headwinds, especially in APAC: Sales in the APAC region were impacted by changes in China's go-to-market model and ongoing tariff-related challenges. Management described the transition to a distributor model as well underway, aiming to preserve market access and simplify operations, but acknowledged that these changes contributed to the revenue decline in the region. Cost management and margin improvement: BeautyHealth's gross margin benefited from a favorable mix shift toward consumables, disciplined demand planning, and lower excess inventory charges. Selling and marketing expenses were reduced, primarily through lower personnel and event costs, supporting the improvement in adjusted EBITDA and operating margin compared to last year. BeautyHealth expects growth to be driven by product innovation, evolving go-to-market strategies, and efforts to offset tariff-related cost pressures, while remaining cautious on macroeconomic headwinds. Product innovation pipeline: Management believes that upcoming launches—such as the hydrophilic booster featuring the proprietary PEP9 complex, new treatment tips for expanded services, and the back bar skincare line—will help drive incremental revenue from existing providers and attract new customers. These products are designed to address core consumer concerns like aging and provide additional options for in-practice upsell. Strategic market adaptations: The transition to a distributor model in China, refined sales structure, and flexible device pricing are expected to help stabilize regional performance and capture demand once the macro environment recovers. However, management noted that near-term growth in capital equipment is not anticipated, and that consumables will continue to lead revenue contributions. Tariff and cost management challenges: The company anticipates $5 million in incremental tariff costs in 2025, which are expected to impact margins, particularly in the second half of the year. Management is considering options—including potential cost pass-throughs to providers—but acknowledged that the tariff situation remains fluid and could affect profitability beyond 2025 if not mitigated. In the coming quarters, the StockStory team will be closely tracking (1) the rollout and early adoption rates of new booster and skincare products, (2) progress on the transition to a distributor model in China and its impact on regional sales, and (3) the company's ability to manage tariff-related cost pressures while maintaining margin discipline. Execution on commercial initiatives to drive provider engagement and consumer awareness will also be critical to sustaining momentum. BeautyHealth currently trades at a forward EV-to-EBITDA ratio of 12.5×. Should you double down or take your chips? The answer lies in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
Yahoo
6 days ago
- Business
- Yahoo
BeautyHealth Surpasses 35,000 Hydrafacial Devices Worldwide Reflecting Growing Consumer Demand for Clinically Proven Skin Health Treatments
Underscores Hydrafacial's leadership and value to providers and consumers Hydrafacial Syndeo Device LONG BEACH, Calif., June 04, 2025 (GLOBE NEWSWIRE) -- The BeautyHealth Company (NASDAQ: SKIN), home to flagship brand Hydrafacial™, recently achieved a major milestone with 35,000 Hydrafacial devices installed worldwide, reinforcing its market leadership in the hydradermabrasion category it pioneered. This accomplishment highlights the Hydrafacial treatment's continued global demand, fueled by strong brand awareness, and growing consumer preferences for non-invasive, results-driven skin health treatments. 'With providers delivering approximately 5 million Hydrafacial treatments last year1, our position as one of the most in-demand professional skin health treatments is clear,' said BeautyHealth Chief Executive Officer, Marla Beck. 'For nearly 28 years, Hydrafacial has been a treatment room essential powered by our science-based innovation and portfolio of 175+ patents that deliver the glowing results that clients and providers love. With a global footprint of 35,000 active Hydrafacial devices worldwide, we're empowering our community to meet rising demand for non-invasive aesthetic treatments and inspire skin confidence around the world.' Hydrafacial's success is backed by industry-leading consumer trust and satisfaction, ranking as the second most recognized facial treatment in the U.S.2 with a 96% 'Worth It' rating on RealSelf3, and an industry-leading 52 Net Promoter Score4. As a proven engine for practice growth, Hydrafacial treatments are responsible for driving approximately 7 percent of all new patients to medical spas and aesthetic practices each year.5 This enthusiasm for the brand translates to 1.5 Hydrafacial treatments performed every second around the world.6 The milestone reflects growing beauty trends favoring a natural, effortless look that prioritizes skin health – an aesthetic Hydrafacial treatments are uniquely designed to deliver. The Hydrafacial treatment combines seven powerful skin therapies in one: lymphatic drainage, a gentle peel, pain-free extractions, superficial microdermabrasion, a personalized booster, LED light therapy, and deep hydration. The result is visible skin improvements, a radiant glow, and a renewed boost in confidence – with zero downtime. 'We're grateful to the estheticians, dermatologists, and plastic surgeons who bring the iconic Hydrafacial glow to life every day,' Beck continues. 'Their trust and expertise drive our growth, and we remain committed to supporting them with ongoing innovation where MedTech Meets Beauty. Together, we're delivering real results – and a glow that keeps clients coming back.' To experience the Hydrafacial treatment and discover why consumers and providers alike trust Hydrafacial for radiant, healthy skin, find a provider near you by visiting and follow along on social @Hydrafacial. 1Company Data. 2Ipsos Study 2024. Base: Consumers of the aesthetic and professional beauty category (n=1000); Brand Aided Awareness. Conversion defined as % of respondents who are aware of and have tried a given brand.3RealSelf as of April 2025. 4Consumers of the aesthetic and professional beauty category that have received a Hydrafacial (n=210); 'On a scale of 0 to 10, how likely are you to recommend Hydrafacial to a friend or colleague?'5Guidepoint Qsight - Sales Measurement as of March 2025.6Treatments per second calculation based on 5 million treatments/year, spread across a 40-hour work week, 50 weeks in a year. About The Beauty Health CompanyThe Beauty Health Company (NASDAQ: SKIN) is a medtech meets beauty company delivering millions of skin health experiences every year that help consumers reinvent their relationship with their skin, bodies, and self-confidence. Our brands are pioneers: Hydrafacial™ in hydradermabrasion, SkinStylus™ in microneedling, and Keravive™ in scalp health. Together, with our powerful global community of estheticians, partners, and consumers, we are personalizing skin health for all ages, genders, skin tones, and skin types. We are committed to being ever more mindful in how we conduct our business to positively impact our communities and the planet. Find a local provider at and learn more at or LinkedIn. Forward-Looking StatementsCertain statements made in this release are 'forward looking statements' within the meaning of the 'safe harbor' provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words 'estimates,' 'projected,' 'expects,' 'anticipates,' 'forecasts,' 'plans,' 'intends,' 'believes,' 'seeks,' 'may,' 'will,' 'should,' 'future,' 'propose' and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements These forward-looking statements are not guarantees of future performance, conditions, or results, and involve a number of known and unknown risks, uncertainties, assumptions, and other important factors, many of which are outside The Beauty Health Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include The Beauty Health Company's ability to execute its business plan; consumers' perception of skin health, skin concerns, and overall beauty trends; the continued relationship amongst Hydrafacial, its providers, and consumers; the ability to place and continue to place delivery systems across various channels and locations; potential litigation involving The Beauty Health Company; changes in applicable laws or regulations; and the possibility that The Beauty Health Company may be adversely affected by other economic, business, and/or competitive factors. The Beauty Health Company does not undertake any obligation to update or revise any forward-looking statements, whether because of new information, future events, or otherwise, except as required by Media Contact: Devries Global: jburchette@ Investors: IR@ Source: BeautyHealth A photo accompanying this announcement is available at
Yahoo
08-05-2025
- Business
- Yahoo
BeautyHealth (NASDAQ:SKIN) Reports Bullish Q1
Skincare company BeautyHealth (NASDAQ:SKIN) announced better-than-expected revenue in Q1 CY2025, but sales fell by 14.5% year on year to $69.6 million. On the other hand, next quarter's revenue guidance of $73.5 million was less impressive, coming in 2.9% below analysts' estimates. Its GAAP loss of $0.08 per share was 37.6% above analysts' consensus estimates. Is now the time to buy BeautyHealth? Find out in our full research report. Revenue: $69.6 million vs analyst estimates of $63.34 million (14.5% year-on-year decline, 9.9% beat) EPS (GAAP): -$0.08 vs analyst estimates of -$0.13 (37.6% beat) Adjusted EBITDA: $7.3 million vs analyst estimates of -$5.54 million (10.5% margin, significant beat) The company reconfirmed its revenue guidance for the full year of $285 million at the midpoint EBITDA guidance for the full year is $20 million at the midpoint, above analyst estimates of $11.98 million Operating Margin: -17.2%, up from -20.9% in the same quarter last year Free Cash Flow was $3 million, up from -$18.66 million in the same quarter last year Market Capitalization: $178.9 million 'Our first quarter results reflect strong execution and continued momentum in our transformation strategy,' said CEO Marla Beck. Operating in the emerging beauty health category, the appropriately named BeautyHealth (NASDAQ:SKIN) is a skincare company best known for its Hydrafacial product that cleanses and hydrates skin. A company's long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. With $322.5 million in revenue over the past 12 months, BeautyHealth is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers. As you can see below, BeautyHealth's 3.8% annualized revenue growth over the last three years was sluggish. This shows it failed to generate demand in any major way and is a rough starting point for our analysis. This quarter, BeautyHealth's revenue fell by 14.5% year on year to $69.6 million but beat Wall Street's estimates by 9.9%. Company management is currently guiding for a 18.9% year-on-year decline in sales next quarter. Looking further ahead, sell-side analysts expect revenue to decline by 9.1% over the next 12 months, a deceleration versus the last three years. This projection is underwhelming and suggests its products will see some demand headwinds. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king. BeautyHealth has shown decent cash profitability, giving it some flexibility to reinvest or return capital to investors. The company's free cash flow margin averaged 5.4% over the last two years, slightly better than the broader consumer staples sector. Taking a step back, we can see that BeautyHealth's margin expanded by 7.6 percentage points over the last year. This is encouraging because it gives the company more optionality. BeautyHealth's free cash flow clocked in at $3 million in Q1, equivalent to a 4.3% margin. Its cash flow turned positive after being negative in the same quarter last year, building on its favorable historical trend. We were impressed by how significantly BeautyHealth blew past analysts' gross margin expectations this quarter. We were also excited its EBITDA outperformed Wall Street's estimates by a wide margin. On the other hand, its EBITDA guidance for next quarter missed significantly and its revenue guidance for next quarter fell short of Wall Street's estimates. Overall, we think this was still a solid quarter with some key areas of upside. The stock traded up 2.4% to $1.26 immediately after reporting. BeautyHealth may have had a good quarter, but does that mean you should invest right now? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
