Beauty Health Stock: Stock Overview and Outlook for 2022
What’s in a name? In the modern world, it’s hard to come up with a better name than The Beauty Health Company (Nasdaq: SKIN). Those two words represent two qualities to which virtually everyone aspires. Of course, human nature is always seeking hope in a jar but in the skincare world, the products behind Beauty Health stock appear to deliver. Recent Google trends for its primary product are at all-time highs.
The Beauty Health Company
Founded in 1997 as HydraFacial and headquartered in Long Beach, California, The Beauty Health Company calls itself “a global category-creating company focused on delivering beauty health experiences by reinventing our consumer’s relationship with their skin, their bodies and their self-confidence.”
In May 2021, HydraFacial merged with Miami-based Vesper Healthcare Acquisition Corp. to become The Beauty Health Company. Before the merger, HydraFacial was in the hands of the private equity healthcare firms Linden Capital Partners and DW Healthcare Partners. Both firms retain a significant stake in Beauty Health stock.
The company is best known for the HydraFacial, a three-step product that invented the hydra dermabrasion category. In just 30 minutes, customers achieve a glowing complexion. HydraFacial is appropriate for all ages and skin types. Marketed worldwide through its patented Vortex-Fusion Delivery System channel, the HydraFacial is designed to deep clean, exfoliate and hydrate skin. The HydraFacial’s results are allegedly more dramatic than that of the standard facial. The procedure is now a favorite of med spa, wellness center, and dermatology clients. Currently, the product is available in over 90 countries. Approximately 21,800 Delivery Systems are installed to date.
On average, the HydraFacial costs between $199 to $300 depending on add-ons. That’s more expensive than the average facial, which runs around $150 for the basic variety. However, they recommend monthly treatments to combat oiliness, fine lines, brown spots and other perils to which the skin is heir. Annually, HydraFacial devotees may shell out $3,600 for the facials alone.
Superstar Jennifer Lopez is now on board with the HydraFacial x J Lo Beauty Booster . The product contains a “unique combination of potent ingredients including a tri-fermented essence, super antioxidants, and niacinamide which will leave skin plump, healthy-looking, and glowing like never before.” The HydraFacial x J Lo Beauty Booster will be available in the U.S. in September 2022.
People want more than beautiful skin, they also crave great hair. For scalp treatment, Beauty Health stock offers HydraFacial Keravive. As with the HydraFacial, Keravive involves a three-step process that cleanses hair follicles while removing oil, dirt and dead skin. It hydrates and nourishes via an optimized delivery of a proprietary blend of two skin proteins and five biomimetic growth factors. It also delivers daily scalp and hair follicle nourishment and stimulation, resulting in “healthier, thicker, fuller-looking hair.”
In March 2022, The Beauty Health Company launched HydraFacial Syndeo. This digital device aims to enhance the customer and provider experience. Beauty Health President and CEO Andrew Stanlieck says Syndeo positions the company to lead in the beauty health market. Syndeo, which means “connected” in Greek, applies technology and data for insights into preferences and trends, offering “the ultimate personalized experience.” In addition, gesture-controlled Syndeo provides automatic serum selection.
Beauty Health Stock
The pandemic wasn’t kind to companies providing services such as HydraFacial. Med spas and similar non-emergency medical facilities were closed for months or put into use treating COVID-19 patients.
In May 2021, after the merger, the company began to trade on the Nasdaq. In 2021, Beauty Health achieved net sales of $260.1 million.
On May 10, 2022, Beauty Health stock revealed its first-quarter 2022 financial results. Net sales increased by 58.4%, or $75.4 million, as compared to the first-quarter of last year. Delivery Systems’ net sales increased to $41.6 million in the first quarter of 2022, compared to $25.7 million in 2021’s first quarter. During this most recent quarter, 1,849 Delivery Systems were sold. This includes 258 trade-ups.
However, operating loss was $13 million in the first quarter of 2022, versus operating income of $2.4 million in the prior-year first quarter. Beauty Health attributes this to “reflecting continued investment in global infrastructure, people and systems to fuel future growth.”
The company reaffirmed its 2022 positive outlook. It raised its Fiscal Year 2022 sales guidance to a range of $330 to $340 million. That’s up from the previous $320 to $330 million outlook. The company’s market cap is $1.8 billion.
At present, Beauty Health stock does not pay a dividend. As of May 24, its 52-week low-to-high range is $9.95 to $30.17. Additionally, Beauty Health stock closed at $11.94 on that date.
Beauty Health Stock Considerations
The future of Beauty Health stock involves the company’s ability to execute its strategic plan for the rest of the year and 2023. For example, these plans include its focus on placing new Delivery System units and growing in the underpenetrated U.S. market. In the latter part of 2022, the company plans to continue its international expansion.
About Jane Meggitt
Jane Meggitt specializes in writing about personal finance. Besides investing and planning for retirement, she writes about insurance, real estate, credit cards, estate planning and more. Her work has appeared in dozens of publications, including Financial Advisor, Zack’s, SF Gate and Investor Junkie. A graduate of New York University, Jane lives on a small farm in New Jersey horse country.