MIAMI BEACH, Fla. - AirSculpt Technologies, Inc. (NASDAQ:AIRS), a provider of premium body contouring procedures, has updated its full-year revenue guidance for 2024, following a reported decline in third-quarter revenue. The company now expects its annual revenue to be between $183 million and $189 million, a slight adjustment from the previously forecasted range of $180 million to $190 million.
For the third quarter ended September 30, 2024, AirSculpt anticipates revenue around $42.5 million, marking a decrease of about 9% from the same period last year. The company also noted an 8.1% drop in same-store cases compared to the prior year. Despite these declines, the interim CEO and CFO, Dennis Dean, highlighted an improvement from the 14% fall in same-store cases seen in the second quarter of 2024.
In efforts to mitigate the impact of macro-economic challenges, AirSculpt has been actively working on increasing demand for its services and enhancing the conversion of leads into actual procedures. The company also took steps to expand its footprint, opening four new locations during the third quarter and preparing to launch a fifth in the near future.
The adjusted EBITDA outlook for the full year remains unchanged, with expectations set between $23 million and $28 million. These preliminary financial results are subject to revision until the company reports finalized third-quarter figures.
AirSculpt has scheduled the announcement of its third-quarter fiscal 2024 financial results for the morning of Friday, November 8, 2024, before the market opens. A conference call is planned for the same day to discuss these results in detail.
The company's forward-looking statements are based on current expectations and projections, but actual results may differ due to various risks and uncertainties, including those detailed in the "Risk Factors" section of its Annual Report on Form 10-K.
AirSculpt's non-GAAP financial measures, such as adjusted EBITDA, are provided as supplemental information to aid in evaluating the company's ongoing operational performance. These measures are not intended to replace GAAP financial metrics and may differ from similar measures used by other entities.
This article is based on a press release statement and presents the information without any endorsement of the claims.
In other recent news, AirSculpt Technologies has reported a decrease in second-quarter earnings due to challenging demand conditions. The company's revenue fell by 8.4% to $51 million, leading to a revision of its full-year revenue guidance to between $180 million and $190 million. The adjusted EBITDA also saw a significant decline to $6.9 million. In response to these developments, Dennis Dean has stepped in as Interim CEO and CFO.
AirSculpt Technologies has also made significant strides in its business operations by expanding its reach with the opening of a new body contouring center in Deerfield, marking its 30th location. Furthermore, the company has revised its credit agreement terms, adjusting financial covenants and interest rates.
Lastly, BTIG began coverage on AirSculpt Technologies, assigning a Neutral rating to the stock. Despite the challenges, the company maintains its long-term aspiration to return to a 30% EBITDA margin rate. These are the recent developments in the company's operations.
InvestingPro Insights
Adding depth to AirSculpt Technologies' financial outlook, recent data from InvestingPro reveals some intriguing insights. The company's market capitalization stands at $306.39 million, reflecting its position in the premium body contouring market. Despite the reported revenue decline, AirSculpt's gross profit margin remains robust at 65.39% for the last twelve months as of Q2 2024, indicating strong pricing power in its niche market.
An InvestingPro Tip highlights that net income is expected to grow this year, which aligns with the company's maintained adjusted EBITDA outlook. This positive projection comes despite the recent revenue challenges, suggesting potential operational efficiencies or cost management strategies in place.
Another relevant InvestingPro Tip notes that the stock has experienced significant volatility recently, taking a big hit over the last week. This volatility is reflected in the 1-week price total return of -8.43%, which may be a response to the updated revenue guidance and anticipated Q3 results.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for AirSculpt Technologies, providing a deeper dive into the company's financial health and market position.
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