The Beauty Health Company reported its financial results for the three and nine months ended September 30, 2024, revealing a decline in net sales and a significant improvement in profitability metrics compared to the same periods in 2023.

For the third quarter of 2024, net sales totaled $78.8 million, a decrease of 19.1% from $97.4 million in Q3 2023. The decline was primarily attributed to a 45.9% drop in sales of Delivery Systems, which fell to $27.6 million from $51.0 million, influenced by unfavorable macroeconomic conditions and a challenging year-over-year comparison due to the previous year's international launch of the Syndeo device. Conversely, sales of Consumables increased by 10.4% to $51.2 million, driven by higher placements of Delivery Systems.

Despite the decrease in sales, the company achieved a gross profit of $40.6 million for the third quarter, a significant turnaround from a gross loss of $12.6 million in the same quarter of 2023. This resulted in a gross margin of 51.6%, up from negative margins in the prior year. Operating expenses decreased to $62.2 million, leading to a loss from operations of $21.5 million, a notable improvement from a loss of $82.1 million in Q3 2023. The net loss for the quarter was $18.3 million, compared to $73.8 million in the prior year.

For the nine-month period ending September 30, 2024, net sales were $250.8 million, down 16.7% from $301.2 million in the same period of 2023. Gross profit for the nine months increased to $130.0 million, up from $109.4 million, with a gross margin of 51.8%. The loss from operations for the nine months was $60.6 million, significantly reduced from $112.6 million in 2023, while the net loss narrowed to $18.8 million from $90.7 million.

The company’s total assets decreased to $699.5 million as of September 30, 2024, down from $929.1 million at the end of 2023, primarily due to a reduction in current assets and cash reserves. Cash, cash equivalents, and restricted cash fell to $358.9 million from $523.0 million. Total liabilities also decreased to $639.8 million from $869.7 million, reflecting a reduction in current liabilities.

Strategically, the company has focused on enhancing its product offerings, including the completion of the Syndeo Program, which provided upgrades or replacements for existing devices. The company also repurchased $192.3 million in Convertible Senior Notes for $156.1 million during the nine months, resulting in a net gain of $33.4 million.

The Beauty Health Company continues to navigate challenges in the market while implementing measures to improve operational efficiency and financial performance.