Q1 2024 Airsculpt Technologies Inc Earnings Call Transcript
Key Points
- Revenue growth of 4% in the quarter primarily driven by new de novo centers opened in 2023, which continue to outperform internal metrics.
- Significant investment in customer acquisition marketing and optimizations made to performance marketing are expected to improve trends in the latter part of the season.
- Cost management efforts resulted in a $5 million run rate in cost savings, with further opportunities identified for additional efficiencies.
- Celebrity partnerships and media mix changes have led to increased organic search traffic and higher intent leads, which are lower in cost compared to paid search.
- Maintained a healthy cash position of $11 million as of March 31, 2024, with a strong leverage ratio and undrawn $5 million revolver.
- Experienced softness in same-store centers due to temporary macroeconomic headwinds affecting the price-sensitive segment of the customer base.
- Same-store revenue down approximately 10% during the quarter, with overall revenue growth not meeting the levels seen in previous years.
- Adjusted EBITDA declined to $7.3 million from the prior year, with increased SG&A spending contributing to the decrease.
- Customer Acquisition Cost (CAC) increased significantly due to higher investments in brand awareness and competitive market conditions.
- Despite maintaining full-year revenue and EBITDA outlook, the company acknowledges ongoing challenges and softness in procedure volumes.
Hello, and welcome to the AirSculpt Technologies, Inc. first-quarter 2024 earnings call. (Operator Instructions) As a reminder, this conference is being recorded.
It's now my pleasure to turn the call over to Dennis Dean, Chief Financial Officer. Please go ahead.
Good morning, everyone, and thanks for joining us to discuss AirSculpt Technologies results for the first quarter. Joining me on the call today is the company's Founder and Executive Chairman, Dr. Aaron Rollins; and Chief Executive Officer, Todd Magazine.
Before we begin, I would like to remind you that this conference call may include forward-looking statements. These statements may include our future expectations regarding financial results and guidance, market opportunities and our growth. Risks and uncertainties that may impact these statements and could cause actual future results to differ materially from currently projected results are described in this morning's press release, and the reports we will file with
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