AirSculpt's Shares Tumble As Q2 Results Disappoints, 2024 Guidance Slashed, And Leadership Shakeup Adds To Concerns

AirSculpt Technologies, Inc. AIRS saw its stock plunge after announcing its second-quarter 2024 results, lowering its full-year guidance, and revealing leadership changes on Friday.

AIRS revenues declined 8.4% year-over-year to $51.004 million, missing the consensus of $55.26 million. Case volume fell 5.7% YoY to 3,949 for the quarter.

Adjusted EPS was $0.09, down from $0.13 a year ago, beating the street view of $0.04.

Adjusted net income was $5.14 million, down from $7.643 million in the prior year. Operating loss for the quarter totaled $4.981 million, compared to operating income of $5.362 million.

As of June-end, the company had $9.9 million in cash and equivalents. AIRS generated $6.8 million in operating cash flow for the six months ended June, compared to $18.5 million a year ago.

Second-quarter adjusted EBITDA fell 53% YoY to $6.686 million, and the margin contracted 1,277 bps to 13.5%.

2024 Outlook: AirSculpt lowers guidance and now expects revenues of $180 million – $190 million (prior $220 million) versus $209.34 million.

The company sees Adjusted EBITDA of ~$23 million – $28 million (prior $50 million) and Adjusted EBITDA to cash flow from operations conversion ratio of ~50% (prior 65%). The company expects five new centers to open in the second half of 2024.

Additionally, AirSculpt Technologies announced that CEO Todd Magazine has stepped down from his role and the Board of Directors. He will remain as an advisor until December 31, 2024. CFO Dennis Dean has taken over as interim CEO while the company searches for a permanent successor.

“I step into the role as interim CEO disappointed with our second quarter results and eager to apply my financial foresight to lead the strategy that improves the foundation in support of our future growth,” commented Dennis Dean, Interim Chief Executive Officer and Chief Financial Officer.

“Our revenue performance in the quarter reflected the challenging consumer spending environment with profitability further pressured by brand awareness spend, which has a much longer case conversion cycle,” Dean added.

Price Action: AIRS shares are trading lower by 19.3% at $3.18 at the last check Friday.

Photo via Shutterstock

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