In This Article:
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Net Revenue: $70.2 million in Q3 2024, a 34.6% increase in comparable growth.
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Obagi Medical Revenue Growth: 45.5% in Q3 2024.
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Milk Makeup Revenue Growth: 23.5% in Q3 2024.
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Adjusted Gross Profit: $51.4 million in Q3 2024, with a margin of 73.2%.
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Adjusted EBITDA: $11.4 million in Q3 2024, a 134% increase from the previous year.
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Adjusted EBITDA Margin: 16.3% in Q3 2024, expanded by 720 basis points year-over-year.
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First Nine Months Net Revenue: $201.8 million, a 26.9% increase in comparable growth.
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First Nine Months Adjusted Gross Profit: $150.9 million, with a margin of 74.8%.
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First Nine Months Adjusted EBITDA: $29.1 million, a 54.9% increase.
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Cash and Cash Equivalents: $17.6 million as of September 30, 2024.
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Net Debt: $154 million as of September 30, 2024.
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Shares Outstanding: 122.9 million as of November 15, 2024.
Release Date: November 21, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Waldencast PLC (NASDAQ:WALD) reported a strong 34.6% increase in net revenue for Q3 2024, driven by robust growth in its Obagi Medical and Milk Makeup brands.
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Adjusted EBITDA rose by 134% to 16.3% of net revenue, showcasing significant profitability improvements.
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The company achieved a best-in-class adjusted gross margin of 74.8% for the first nine months of 2024, indicating strong operational efficiency.
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Milk Makeup expanded its global presence with new partnerships in Europe and launched successful new products, contributing to a 23.5% revenue growth.
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Obagi Medical saw a 45.5% growth in Q3, driven by successful product launches and improved inventory levels, reinforcing its position as a leading medical-grade skincare brand.
Negative Points
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Despite improvements, Waldencast PLC (NASDAQ:WALD) still faces inventory challenges, particularly with Obagi Medical, which may impact growth into Q1 2025.
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The company is dealing with non-recurring costs related to an ongoing regulatory investigation, affecting its cash flow.
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Milk Makeup's adjusted gross profit margin declined due to a shift in product mix and timing of off-price sales.
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There is increased caution among retailers regarding inventory levels, which could affect future sales.
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The company anticipates less gross margin expansion in the future as it reaches its long-term targets, potentially limiting profitability growth.
Q & A Highlights
Q: How are you planning to sustain growth and innovation across both brands next year? A: Michel Brousset, CEO: We remain optimistic about next year, focusing on increasing brand awareness, strong innovation plans, and expanding our footprint. While gross margin expansion may slow as we reach target levels, we see immense top-line opportunities, particularly with upcoming innovations for Obagi and Milk.