Airsculpt Technologies, Inc. Q3 FY2025 earnings call

• Key initiatives focused on new growth opportunities, margin improvement, and debt reduction. - Setting the stage for a broader market opportunity related to GLP-1 use, with skin tightening pilots expanded and new procedures added to address loose skin beyond what skin tightening can handle. - Enhancing sales and marketing strategy with a diversified media mix, targeted influencer campaigns, new training modules for the sales team, and improved patient financing options. - Year-to-date, generated over $3 million in annualized cost savings. - Repaid nearly $18 million of debt and closed the unprofitable London center, focusing resources on North America locations.

Third quarter revenue was $35 million, a 17.8% decline versus the prior year quarter, with same-store revenue down approximately 22%. Cases declined 15.2% to 2,780 with same-store cases down approximately 20%. Average revenue per case for the quarter was $12,587, a decline of approximately 3% from the prior year quarter but above the midpoint of the historical range of $12,000 to $13,000. Cost of services as a percentage of revenue increased to 42.5% versus 41.8%. Adjusted EBITDA was $3 million compared to $4.7 million for the fiscal 2024 second quarter. Net loss for the quarter was $9.5 million.

• Updated 2025 revenue outlook to approximately $153 million from the previous range of $160 million to $170 million. - Expect 2025 adjusted EBITDA of approximately $16 million, the bottom end of the previous range of $16 million to $18 million. - Fourth quarter is seeing improving same-store sales performance and stronger EBITDA margins sequentially and year-over-year.

Q: Marco Criscuolo asked about cost-cutting measures and sustainability of savings.

A: Dennis Dean said cost controls focused on SG&A, continuing to focus on it with more opportunities identified.

Q: Marco Criscuolo asked about skin tightening uptake and new services for GLP-1 population.

A: Yogi Jashnani said skin tightening pilot expanded, but loose skin beyond skin tightening's scope led to adding skin excisions, pilots underway.

Q: Sam Eiber asked about timing issue in Q3.

A: Yogi Jashnani said challenging consumer environment with leads/consults strong but hesitant to purchase, Q4 same-store sales better.

Q: Sam Eiber asked about surgeon interest and marketing shifts for GLP-1.

A: Yogi Jashnani said surgeons interested in skin excisions, marketing needs to adjust messaging to target GLP-1 users and those with loose skin.