SkinHealth Systems Inc. (SKIN) Earnings Call Transcript & Summary

Welcome to the 2022 BeautyHealth Analyst and Investor Day. Please welcome to the stage, BeautyHealth Executive Chairman, Brent Saunders.

So good morning, everyone. Thank you for coming to our very first Investor and Analyst Day. So excited to be here. This is a long time in the making at spin -- gosh, I was thinking about it this morning. I think it's been 3 or 4 years since I was in a big room on a stage talking to people, and I used to do this like every week when I was running Allergan. And so it's super exciting for me to get back into the swing of things and be live with everybody and off Zoom and shaking hands and saying hello to everyone. So thank you. I hope everyone is excited for, I think, what's going to be a great day. I'm just going to take a few minutes to set the stage, and then I'm going to turn it over to Andrew and the substance of the meeting will begin. So what I was really thinking about this morning was, it's been 2 years since I really started talking about Vesper and HydraFacial, right? We did the IPO in September of 2020. So it's literally 2 years ago. And one of the things that I thought was important if we could go to the next slide was to go back and say, what did I tell you? And what actually happened, right? And so 2 years ago, those that were listening to the roadshow and the presentation, we said we wanted to go out and find an amazing business that met certain criteria. And this was the exact slide that I used in that presentation deck of what I wanted to look for. And then we've obviously added the HydraFacial checkmarks after we announced the deal 2 months thereafter. And so if you look at the criteria, I think it still applies today all the great attributes of HydraFacial and why we're so excited about our future and in particular, the 3-year plan that you'll hear from Andrew, Liyuan and the team later about why we're so confident in it. And we think it's going to be something that we can not only achieve but hopefully exceed over time. So when you think about HydraFacial, our leading brand at BeautyHealth, it has some really important characteristics that I think are important, not just because of the growth and the opportunity and the excitement, but also because they're the hallmark of an enduring brand and an enduring service in our industry. So these are things as I was running brands like BOTOX and JUVEDERM and CoolSculpting, that we tended to look for to make sure that we didn't have a FAD that we had something that was real that delivered a great benefit and also could endure. And so I became familiar with HydraFacial perhaps 5 years ago because we were maniacal at Allergan in tracking NPS score because I believe out of all the criteria, the most important criteria for an enduring brand, an enduring service, is Net Promoter Score or customer satisfaction. And BOTOX always had the highest customer satisfaction of all the aesthetic beauty interventional beauty applications. And 1 day, when I was looking at the report that the team prepared for me on a quarterly basis, BOTOX was no longer at the top, there was a thing called HydraFacial. And to be fair, I didn't know what HydraFacial was. So I called my team and I said, what's this thing HydraFacial, and why is it doing better than BOTOX? And so they explained to me what it was. I actually went and tried when, I was like, this is amazing. I said we have to own this. So we went in and tried to buy it from the private equity team that owned it. And they had just acquired it. For a lot of good reasons, they said, "No, not for sale, not the right time, come back to us in a couple of years." So in fairness, we went out and we bought this kind of second rate thing called Diamond Glow, but we had always wished for buying HydraFacial. So 2 years ago, when we did the IPO of Vesper, I said to myself, gosh, the best thing I would love to acquire would be to go back and see if we could get HydraFacial. And we said, why? Well, it's the leader in the category. By far and away, the leader, it's the 800-pound gorilla in this category. It had great science and brand differentiation. It had a lot of competitive advantages, which you'll hear from the team about today. It had the best NPS score in the industry and maintains that leading position today. And probably more importantly, that I've learned about has this relationship with the aestheticians that is so important. They are like franchises of HydraFacial, right? And they love this product. This is like the HydraFacial machine is the centerpiece of their business in many instances. And so that loyal following and the training and education, all we do to create this community of aestheticians is probably the most important factor around the growth and the moat that has been built around this business. and you'll hear more about it from the team. And so as we looked at that, it met all these criteria. So I think 2 years later, if I had to do a review of what we said and where we are today, I think all these checkmarks still hold. And probably there are a few more we could add to make us even more excited about their future. The second thing we can go to the next slide, I said to you was that we would build a best-in-class management team. And for many of you who remember, when we were going through the dark period of the company, so that ingest when I was running the interim CEO time, I told you we were out looking for a leader who had a really important criteria. I don't have a slide on it, but I remember exactly what I said to all the investors and analysts at that time. I want someone with incredibly strong global marketing and product experience, right? Criteria #1. And criteria #2 was strong global experience because one of our biggest growth opportunities over the next few years is to expand globally. And I can't think of a better CEO, and I couldn't be happier 7 months -- so it's been about 7 months, right? About 7 months later that I can put 2 big checkmarks next to those criteria as well. We have an amazing leader who understands branding and product and our business now 7 months in. And clearly, a citizen of the world. He's worked and operated brands all over the world. We have a great global team, you'll hear from some of them. We have some new members of our global leadership as well that are here. You'll hear from them in one of the panels. But I'm really, really excited about this team. And I'm looking at it -- and I think with the exception of, I think, Doc -- Dan -- do people know that your name is Dan? I actually said they should change it because we call them Doc. He's our Head of Sales, who was -- who predates me. I've been involved in recruiting -- [indiscernible], I guess you're here before me -- were before the 2-year period ago. But this team of both existing leaders and new leaders is best-in-class. And I've had the privilege of working with a lot of really good people. And this team is starting to really gel, come together. There are some new faces here are some long-term employees, but I'm super excited as you think about this 3-year plan that you'll hear about watching them now that they're cohesive they're together. And I see the spirit, I see the excitement. I see how they work together, the excellence they demand of each other. I'm incredibly excited about watching them implement this plan and accomplish so many things for our business. So I'm going to stop there. And without further ado, I'd like to invite Andrew up and begin the real substance of this presentation. Again, thank you guys for coming.

Please welcome to the stage, BeautyHealth President and CEO, Andrew Stanleick.

Thank you, Brent. It's great to be here, meeting live in person. Well, firstly, good morning, everyone, and welcome to the BeautyHealth Investor Day. Indeed, our first one. It's great to be with you finally in person here in New York, but a big welcome to all of those joining us virtually this morning. I want to start actually by thanking you for investing your time by joining us here today. In return, we commit as a team to making it worth your while. You'll see today we have many new exciting updates to share with you as a lot of new information to what we've not shared before. But before we begin, as I see some new faces in the audience, allow me to take a moment to introduce myself. So I'm Andrew Stanleick, President and CEO of BeautyHealth Company. As my accent reveals, I was born in the U.K. But as Brent mentioned, I'm a truly global citizen. I've lived and worked in 8 countries across 4 continents, including 7 fabulous years working across Asia. I have more than 25 years' experience primarily in beauty and luxury retail with Unilever, L'Oreal and Coach. And most recently, I was the head of the Americas for Coty and CEO of Kylie Jenner Beauty. And I also led Kim Kardashian's partnership with Coty to develop her latest skincare brand SKKN, which I must say is beautiful. I'm fortunate to have had so many proud moments and achievements in my career. But I got to tell you, my proudest is standing here today with the team as CEO of BeautyHealth. I'm extremely optimistic, confident and eager to capture as you'll see today, the significant growth runway ahead of BeautyHealth as we continue to disrupt the industry and build out our platform. So as we look to today, we had sort of 3 key objectives for today's presentation. Firstly, we're going to present our 5 point master plan and provide new insights into our business and market opportunity. Second, I'm very excited to introduce our 3-year plan for strategic growth. And as many of you have seen already in the press release this morning, we expect to double our business by 2025, while more than tripling our adjusted EBITDA by 2025. And finally, third objective, this is a moment for all of you to meet a really talented BeautyHealth Executive Committee, who will share more detail about how we're capitalizing on this big immense opportunity ahead of us. So here, we have today's agenda. I mean, the Investor Day will unfold across sort of 5 sessions. Of course, we'll have a break halfway through the program. And we'll conclude with a live Q&A, before convening for a lunch and a HydraFacial experience. And for those of you in the room, you can see here on the right, you can sign up with one of our amazing estheticians to have a HydraFacial treatment today, or you can sign up to come into our New York Experience Center at a later date because you really have to get it to get it. That's the secret with HydraFacial. So let me be clear, you're going to see a lot of new information about BeautyHealth today. But there's sort of 3 key things which are really important to me that you take away. First, we are a category creator with a differentiated product offering, business model and this unique community, which Brent talked about. And today, we're going to show you how unique our platform is. And no one can do what we do. Second takeaway, we are driving profitable growth across geographies and categories within a huge and growing TAM, which we're going to take you through in real detail. And indeed, this is demonstrated by our 3-year plan, as I said, our new commitment to double ourselves. And in fact, it will be starting in 2023 when we commit to deliver adjusted EBITDA next year in the range of 18% to 20%. And the third takeaway, you'll learn about the power of our innovative technology. And it's placed at the center of a flywheel that drives our growth. And whilst some of you are very familiar with BeautyHealth's business model, others I know from discussions are just discovering it. So for those new to our story, let me answer the most fundamental question. Who is BeautyHealth? Well, let me tell you. BeautyHealth is a visionary. It's a category creator. We see things and meaningful in errors before unseen. And we operate at this really fascinating intersection of beauty, aesthetics, wellness and health. -- at the very next section of these very large and growing and converging and I would add also resilient categories. Indeed, beauty, health -- indeed beauty, aesthetics, wellness and health are the compass points of our business. And together, they form our guiding star. Equally, you'll see we are defined by our omnichannel presence and unique ability to meet consumers wherever they live, work and play. With today in a dermatologist SPA or retail environment or in the future at home. And lastly, we are defined by what we make, innovative efficacious confidence boosting and amazing experiences. So BeautyHealth is truly this bright star set apart from the rest. And all of this is in furtherance of our purpose, which is to build confidence. We are driven by a fundamental belief that everyone deserves to feel good about themselves. And we mean absolutely everyone, regardless of age, gender, skin color, body shape or socioeconomic status. We all deserve to feel confident in our own skin. And we have worked with purpose to build a business to help people just do that. And our vision is to become the world's leading beauty health and wellness platform fueled by this community of engaged providers, aestheticians and consumers. But to kick off, let's talk about our business as it stands today. And first, I want you to know that our financial footing is very strong. At the top line, last quarter, we told you we expect to generate $300 million to $350 million in net sales this year, representing more than 30% growth versus last year. And at the bottom line, we have proven ourselves an engine of profitability and an agile manager of adjusted EBITDA margins. For 2022, we previously told you, we expect to deliver $50 million in adjusted EBITDA. And we're not revisiting our full year guidance today, but we'll update you, of course, on our next earnings call per our usual practice. And I'll remind you, this profit is alongside the significant investments which we've made last year and this year in our business. And with more than $800 million of cash on the balance sheet, we are well capitalized to capture the organic growth opportunities ahead of us and to stay nimble and ready for strategic M&A. Today, of course, if you look at the middle of the chart, our business, our performance is driven by our flagship brand HydraFacial and complementary brand Keravive, which are themselves powered by this unique ecosystem of partners and co-creators. These partnerships are a unique and differentiating aspect of our overall strategy. and we view them as a competitive advantage as the team will show you later today. Finally, on this slide, we show a snapshot of our remarkable global physical presence. Today, we're in 23,000 doors with HydraFacial, that span 90 countries and where they're put to use by 35,000 aestheticians and providers who have been trained and educated by BeautyHealth. Our reach is already quite impressive. But as you will see, there is so much room to grow. With our global reach comes geographically diversified revenue streams. And today, while we're dominant in the Americas, we are seeing rapid growth across APAC and EMEA. And over our 3-year trajectory, we expect international market growth to accelerate to account for about 50% of ourselves, while we continue to grow in the United States. Simply stated, and this is our TAM, our market opportunity is massive and growing. Analyzing today's TAM by channel, we estimate that, that TAM comprises nearly 175,000 doors in the medical channel, nearly 130,000 doors in the spa channel and nearly 150,000 doors across hospitality and newness. When including our 75 or so distributor markets and broader opportunity across travel and retail, it's easy to see how our TAM could easily exceed 0.5 million doors. Remarkably, these numbers represent locations, not individual machine replacements because many of you know today, 12% of our locations operate multiple systems. And as an example, we often quote in the hospitality channel, of course, is in Las Vegas, Caesars Palace, 1 casino has 18 delivery systems. So setting our eyes on the horizon, we see the global skin and hair care category here on the right of the slide, today, they are together worth more than $250 billion and are projected to grow by 5% and 3%, respectively, by 2025. And -- there is so much green fold. And our goal, of course, is to capture it all. And as a team, we've only just started and the surgical investments we have been making in finding those super consumers in those super geographies have put us in the very best position to capture that growth opportunity. And Liyuan will provide more detail later in the presentation on the TAM. It's really fascinating. So when we look at the operating environment today, we see macro trends shifting very much in BeautyHealth's favor, representing meaningful tailwinds for our business. First, consumers' prioritization of health and wellness has been accelerated and amplified by the COVID-19 pandemic, leading people to seek products like ours, which deliver both. Secondly, society has broadened the definition of beauty beyond a one size or one skin type fits-all approach. And consumers are embracing their own unique visions of beauty. They demand products that place health and self-confidence at their core, such as HydraFacial. And third and very importantly, we have really witnessed a real destigmatization around cosmetic procedures and products attracting more consumers, including men to aesthetics procedures, and thus to our doors. And finally, in the Zoom boom era of the post pandemic, our faces become, like it or not, our digital business cards as we spend more of our days with a camera trained on our faces and all eager to look the very best we can. And hybrid work is here to stay. And of course, this is fueling our growth. But bolstering these tailwinds is the robust and resilient consumer demand inherent in the beauty category at large. Throughout my 25-year career in beauty, I've seen firsthand how important self-care is to consumers, even in -- and I would say, perhaps even more during uncertain times. In recent periods of economic term, including the depths of the 2008/'09 financial crisis, HydraFacial grew as consumers traded down from higher-priced aesthetics treatments to the more affordable HydraFacial. Indeed, we were a lifeline to many providers during that crisis. While people may reduce discretionary spend on some things in a tightening environment, self-care is rarely one of them. And with HydraFacial, we give them that confidence to face life face first, no matter what life throws at them. So with HydraFacial, we have this all-weather consumer loyalty and resilience. And that could be further understood if we look at our consumer profile here. The U.S. archetype HydraFacial consumer up here on the slide, our super consumer, as we call them, has a high disposal income. And it is historically less impacted by economic downturns. We attract a younger consumer, on average, in the positioning us well to cultivate long-term customer value. Today, over 20% of our consumers are now in line with the destigmatization trend I addressed earlier. Indeed continuing to drive the growth with men will be key as the overall global men's grooming market is expected to reach what, $81 million by 2024. So we attract a very diverse consumer face, reflecting the fact that HydraFacial is for every skin type and tone. And we over-index among the Latinx population, a segment of the U.S. population that is younger, and growing faster than others. And that spends per capita more on beauty than their counterparts. So as you might expect, the community of skin care professionals is booming to meet this explosive consumer demand. Indeed, just in the U.S., skin care specialist jobs are projected to grow nearly 30% by 2030, outpacing all other sectors. Today, we are proud to be the #1 educator of their stations globally, and we are gearing up for the growth forecast in the industry. We have already trained more than 35,000 aestheticians around the world through our HFX training program, which Ben will walk you through shortly. So today, HydraFacial is a love brand with a growing legion of loyal fans around the world, evidenced by what Brent referred to as our impressive market-leading Net Promoter Score. But I will let the love of our consumers, providers and aestheticians, what we've referred to as the HydraFacial nation, speak for itself. So if you could please roll video. [Presentation]

Thank you. I love that video. So HydraFacial, as you see, is truly an incredible brand with an unmatched fan base, and it is the heart of BeautyHealth. And while BeautyHealth has only been public for, what, 6 quarters, we have decades, as you can see on this slide, of rich history. Our first medical device, a smoke evacuator that suctioned smoke in the operating room, debuted in 1997. And years of technological innovation led to the industry's first patented microdermabrasion machine and ultimately, to the category creating hydrodermabrasion device in 2005. And we have a rich history of science and innovation that powers HydraFacial today. And last March, we launched our legacy delivery system, SYNDEO. This next-generation smart delivery system represents a leap forward in beauty technology. It is new, better and different to anything else on the market, and it's taking our business to the next level. So HydraFacial signature 3-step treatment cleanses, extracts and hydrates, delivering incredible results in every step. And you will hear more later from Jwala on the magic and science behind our treatment. But for me, what is most impressive is the experience and the results. A HydraFacial is noninvasive, painless, offers an instant glow that lasts, and it leaves the client walking away with an immediate confidence boost. In fact, 94% of people who receive a HydraFacial say they feel more confident after. and very importantly, HydraFacial is excessively priced with express treatment starting at just $150. So certainly unaffordable luxury and aligned with our vision to democratize the beauty health category. So our innovative and differentiated HydraFacial treatment starts our powerful growth flywheel. But our unique offering is so much more. Our next generation SYNDEO smart delivery system is the center of a connected digital platform that allows consumers and providers to like to track treatments and preferences. This carries with it the promise of becoming an unmatched global database of skin care treatment rate, which will be very powerful. The treatment and technology of HydraFacial is made stronger when paired with our unique ecosystem of co-creators. The delivery of their beauty formulas are enhanced when put through our machines as boosters. Indeed, this is a huge differentiator and the future of customization and personalization in skin care. So now let's look at HydraFacial in real life, the economics. And the economics are highly favorable for both BeautyHealth and for the providers who use our machines. For BeautyHealth, we see a dual revenue stream for the capital sales of the actual machines and the recurring revenue from the sales of the serums and the boosters used during each treatment. We call these consumables. For providers, HydraFacial, is typically the lowest cost, the cheapest treatment that they offer in practice, and it serves as an anchor treatment, delivering a highly profitable 70% to 80% margin per service. And last, but certainly not least, we are a confidence booster amongst our community of consumers and providers. It is our purpose after and it supports our belief that everyone deserves to feel good about themselves, and there's nothing more important. So taken together, we have created a powerful fly wall to sustain our growth, where investments enable everyone to win through a virtuous cycle of growth. It is this winning formula, as you'll see today that will help us and our communities succeed in all market conditions. So I want to just double-click and explore 1 era in a bit more detail. And that is our booster. So each HydraFacial treatment can be customized by a number of these boosters which are specific formulas designed to address the specific skin need delivered by the HydraFacial Magic Wand hand piece. And the booster platform provides us the ultimate flexibility. -- both to offer consumers customize and personalize treatments and to offer our ecosystem of co-creators new channels and watch to build their brands. Then as a concept, and many of you have heard me describe it before, it's I compare it to like a Keurig coffee machine. While we have our own proprietary HydraFacial boosters, the versatility of the system allows us to partner with other brands to run their formulas through our machines. And by Q4, we will have 3 proprietary HydraFacial boosters, 14 partner boosters and many more in the pipeline, offering an infinite number of treatment customizations when they are combined together. Make no mistake, no 1 else is able to work with everyone the way we can with this platform device. But beyond bolstering HydraFacial's commercial appeal, Partner boosters also serve as an accelerator to our own R&D. The Booster platform has spurred us to work across companies and formula technologies to bring the very best of all worlds to our community keeping us 1 step ahead. The constant innovation has put speed on our side because we are frequently working with very experienced formulators. We can now develop a booster in under months, enabling us to rapidly react to consumer trends. And as you're all aware, this is a fraction of the time and investment required to develop an entire skin care range. And to this point, I'm happy to share that we've just announced our latest innovative booster containing breakthrough exosomes to address inflammation and aging. I think this is just another example of BeautyHealth's ability to stay on the cutting edge of skin care through smart R&D, and Jwala will touch more on this later in the presentation. So now I've granted you with an understanding of our unique offering. I will now take a moment to walk you through our economic model and explain our unit economics. We operate on a razor plus razor blade model. The exception is the razor in our delivery system is quite profitable rather than breakeven. And the razor blades in our equation are the tips you see on the slide and the consumable formulas that power the machine. Importantly, our formulas are the only consumables that can be used with the machine. So 1 to provide exhaust their supply of consumables, we have a reliable recurring revenue stream. Today, our revenues are split 50/50 broadly between delivery systems and consumables, with consumables as the recurring and reliable revenue generator. So we have the foundation of a powerful, unique and resilient business model, and we're now keenly focused to drive transformative growth for the company. As you know, we plan to double our business by 25% and at least triple our adjusted EBITDA. And to do this, we will follow our 5-point master plan, our strategy to capture that huge market opportunity ahead of us and deliver our targets. The first pillar of our strategic master plan is to expand our footprint. There is a clear runway to expand our installed base in every region by profitable land grab strategy. Just like MONOPOLY, you have to own the property to collect the rent. For HydraFacial that means placing systems and then collecting the recurring consumable revenue. And as you can see, we are underpenetrated in every region. Globally, we're just in 5% of the door. So there is so much room to grow. And our strategy is truly omnichannel, designed to meet consumers wherever they live, work or play. Today, about 60% of our business is in the medical channel. with the remainder spread across spa, hospitality and retail locations. However, our research shows that the average HydraFacial super consumer visits 3.2 locations, demonstrating the importance of meeting the consumer wherever he or she is. That's why I'm very pleased to announce today that we will expand to Sephora in Singapore later this month with the ambition to continue to expand across the entire APAC region. I'm proud to announce this partnership as we confidently seek further opportunities to offer the rich in-store experience that retailers are looking for to drive both foot traffic and basket size. So HydraFacial is defined by cutting edge technology. And our latest machine, SYNDEO is revolutionary. Created with our community, SYNDEO is a giant leap forward in skin health technology, offering significant improvements and personalization experience through a digitally connected delivery system. Our 3-phase launch began in the U.S. in March and is well on track. First month orders exceeded our internal forecast by nearly threefold. And we continue to see an incredible enthusiasm for SYNDEO with orders for around 2,265 systems already placed. The buzz in the U.S. is creating growing excitement abroad, and we look forward to our international launch in 2023. Secondly, our providers are at the heart of our business and a true differentiator. No one else invests in the aesthetician community the way we do. HydraFacial has an incredible education program called HFX, which is a standout in the industry and a powerful force for growth. HFX builds brand evangelists and the numbers show it. Aestheticians who receive the trend typically double-digit growth in consumer purchases. And their second HydraFacial system sales happened 50% faster than average. And today, we have trained more than 35,000 aestheticians globally, in person and virtually. With core trainings happening at our HydraFacial experience centers all around the world. And this week, I'm so pleased to share we announced the opening of our 12th and 13th experience centers in Singapore and Paris, broadening our global reach. Further we are investing in providers by building community at the top global trade shows. I think here we are in Las Vegas, Dusseldorf, Paris, San Diego, Manica, I must say our presence at these shows is truly the best. But perhaps the biggest contributor to higher facial success is the value proposition our platform offers. Simply put, a HydraFacial machine represents a significant wealth building opportunity for providers willing to make a relatively low-cost capital investments. HydraFacial treatment connect as an anchor service for a provider to build business around serving as a gateway to other complementary services, and the team will walk you through in more detail the benefits to our providers. And you will hear directly from some of our providers today on just how meaningful HydraFacial is to their businesses. As we invest in our providers, we see that they invest in us becoming part of our passionate community, the HydraFacial Nation. Perhaps though, our biggest opportunity is to increase brand awareness, the third pillar of our master plan. With only 8% aided awareness, we might be the best kept secret in beauty that, we have it our way, it won't be for much longer. We are building brand awareness for HydraFacial through investments in marketing. And our approach to marketing is agile, but built to scale up or down depending on market opportunities and business priorities. Our strategy includes, of course, always on press coverage and paid social support and in touch and investment in high-touch experiential events such as the GLOWvolution tour. But the backbone of our engagement is our efforts to galvanize influencers at every level. At the top of the pyramid here are our doctors, who act as opinion leaders, providing great credibility, trust and authority to consumers with their recommendations. Next, are aestheticians and influencers. These middle brands in the pyramid represent the bulk of our conversations and engagement. Their word of mouth is a powerful channel to drive trial and grounding the pyramid, of course, the silts with their wide reach, they offer -- they truly spike brand awareness amongst the followers, anytime they mention or post on HydraFacial. And we announced our first celebrity partnership this spring as we joined with Jennifer Lopez's JLo Beauty to create our first celebrity beauty. And we are thrilled to launch this incredible JLo Beauty booster for HydraFacial this fall. And of course, very excited about the partnership's impact on HydraFacial's brand awareness. Given the strength of JLo's community of over 220 million loyal fans globally. This is not to mention the beauty of the formula itself, it really is a terrific booster. But look, don't take my word for it. Let's hear it from the creator itself. Please, can you roll the video? [Presentation]

Indeed, Jennifer, let's do this. So moving to the fourth pillar of our master plan, we are building out our global infrastructure. And this is key to capturing our growth ambitions. And you'll hear a lot more about this from Liyuan later. So innovation is key to building our global infrastructure. As you've seen, we are innovators at our core, rooted in science and technology. And as a priority, we're evolving HydraFacial's offering to the rest of the body. The skin is our largest organ, and the face makes up only 3.5% of the overall skin surface. So there are many other parts of the body that deserve our HydraFacial treatments, neck, [indiscernible], back and booty, to name just a few. To be clear, many of our providers are already performing head-to-toe HydraFacials. But we will do our part to help them by introducing custom tips and boosters that make these treatment of these errors even easier and more productive. And Keravive is an incredible clinically validated innovation in scalp and a hair health. That leads to healthier and fuller looking hair. This product we launched in 2020 just before the pandemic, and we do plan to reintroduce the brand soon given the huge and growing opportunity in this category. The take-home beauty category is an enormous opportunity for us. and we see ourselves playing there in the future. The global at-home beauty device market is set to grow 10x, reaching over $90 billion by 2030. We talked a bit last quarter about Glow & Go, the at-home device, which we tested late last year. And this test validated our belief in the potential opportunity of an at-home product for HydraFacial, and we will refine that current concept with the insights garnered from that test to launch an at-home product at a future date. We are a recently public company, and we're just starting on our journey to be more mindful about how we conduct our business. That includes implementing environmental, social and governance program that stand to positively impact the world. As a start, we have committed to making our products and processes more mindfully. We recently reformulated all of our HydraFacial consumables to use best-in-class ingredients and responsible production methods to meet a set of baseline standards. And we are piloting a new shipping program beginning next month, which will use reusable crates and packaging and materials to help ship our HydraFacial systems around the world. And we're rolling out a vendor code of contact so I'm sure that the partners with whom we do business have a shared view on ethical business practices. We certainly have a journey still to go, but we realize and are committed to the importance of a healthy ESG program. The fifth pillar of our strategic plan is M&A. Our intention is to execute our vision for HydraFacial and also add complementary brands to our interconnected platform. To that end, we have over $800 million of cash on hand. And we are focused on digestible opportunities with the following characteristics: differentiated product or service with the high Net Promoter Score. Complementary to our existing platform and community and importantly, leveraging the aestheticians core point. They have to be financially accretive by a compelling revenue growth and profitability. And without giving away specific targets, as we sit at that nexus of beauty, aesthetics, wellness and health, we can imagine countless opportunities, including services, products or devices. I know many of you want to know when we're going to close the deal. However, we do not operate a predetermined timeline for a transaction. Our philosophy is opportunistic rather than time bound. And above all, we will be responsible and prudent stewards of capital. Now I want to turn our attention to the ambition of the next 3 years. And I'm very pleased to introduce our new 3-year plan outlook, and I'm extremely confident in the team's ability to execute our plans. Our intention is to double our business by 2025, achieving net sales in the range of $600 million to $700 million. And we will at least triple our adjusted EBITDA by 2025, delivering a margin in the range of 25% to 30%. Importantly, we expect to drive year-over-year profitability growing each year starting in 2023 with an adjusted EBITDA margin of 18% to 20% in 2023. And a bit later, Liyuan will speak about the full details of this plan. In summary, I must say I'm incredibly confident in our plan. We have created a scalable and profitable operating model. We have demonstrated our ability to consistently deliver growth and margins. As a company, we are built to find that bright space at the convergence of beauty, aesthetics, wellness and health. And with that comes the ability to tap into a massive and resilient growing global opportunity. We are armed with ample liquidity and a prudent approach to capital allocation. And finally, we will execute these plans with a best-in-class management team. I couldn't be more excited about the future of our business. So thank you for listening. You'll now hear from many more of our talented leaders across the business who are driving forward vision and walk you through our plans in more detail. And with that, I'll pass over to Ben. Thank you.

Please welcome the stage, BeautyHealth's Chief Experience Officer, Ben Baum.

Good morning. Thank you all for coming, and thank you, Andrew. As you can tell, Andrew has been very busy here in his first 7 months, and he's kept us very busy here too, supercharging our growth and challenging us to scale fast. He's always a tough act to follow. My name is Ben Baum and I'm pleased to be here to speak with you today to share a little bit about the magic that propels this unique and special business, and which attracted me to join the team a little bit less than a year ago. I'm the Chief Experience Officer at the BeautyHealth Company. And it's my first time meeting most of you. So as a quick introduction, I have over 2 decades of experience in apparel, omnichannel retail and technology for brands like Target, Google, Torit, BB, Tailored Brands and Boston Consulting Group. What I'll talk about today in this presentation and really the one thing I want you to take away from my remarks is that we are a very loved brand across our community. Our time-tested formula has given us a blueprint for success that fosters fierce loyalty and contagious enthusiasm from our customers, our aestheticians and our consumers. And given our very limited brand awareness and the early days of this business, that presents an unmatched opportunity for us to scale our model and expand our footprint. It also creates layers of moats around the business that's difficult for competitors to mimic, securing us a position of differentiation and defendability in a large and growing market. So now I'd like to walk you through our brand love DNA, what it looks and feels like, who it benefits, how we build it and why it matters. When we say brand love, what does that look and feel like? At our core, as Andrew shared, what we do is help people feel really good about themselves. And that makes us and our providers feel really good about ourselves and what we do. because when you look and feel your best through the best skin of your life, you go out and do your best, and the world is a little bit better place. We help deliver your best you. Having a HydraFacial routine isn't lifesaving, but it can be life changing. We have completely reimagined what an aesthetic treatment should be. We're not a treatment, a transaction, a product or a service. We truly are an experience, an experience that's highly efficacious, it works. It's immediately confidence inspiring and that is reinforced by a community of highly motivated believers striving to be their best selves every day through a commitment to beauty, health and wellness. When you emerge from the HydraFacial experience and the hospitality that our expert providers offer, you not only look great and are refreshed, rejuvenated and rehydrated, that extra dose of confidence makes you walk taller and smile bigger. And you're proud of the extra investment you've made in your self-care asserting a welcome degree of control over your skin health, your life and your goals amidst a turbulent world. If as Karl Lagerfeld once said, wearing sweatpants is a sign of defeat, that you've lost control of your life, then getting a HydraFacial is a sign of victory, that you've got control of your beauty health, and you take it seriously. For that important job interview, for the long-awaited date night during a harsh and dry winter season or for a pampered relief from a tough stretch at home. We are with you for the moments that matter, arming you with great skin, a beautiful look and an even better feeling. We know you're worthy and you're worth it and so is HydraFacial. Now that I've captured the HydraFacial feeling, let me turn to the pillars of brand love, which support this remarkable business. First, let me describe the community, what we call our HydraFacial Nation, the customers, providers and consumers who are at the heart of everything we do. This incredibly strong and resilient community powers our growth engine. We'll start with our providers. Our providers are our amazing tireless expert army of HydraFacial loving aestheticians who perform HydraFacial treatments on consumers. We call our esteemed aestheticians are fearless warriors because they are the front line to our consumers. We believe they have an outsized influence on the market because they're often the ones that recommend bringing a HydraFacial device into the practice from the start. They are the ones that build a lasting relationship with client after client, driving loyalty and repeat visits. And last, they're the ones who do the cross-selling to other services for the business outside of their treatment room. All of this makes them invaluable to their employers or business and the focus of our absolute attention. It's true that most medical aesthetics companies walk right past the aestheticians and focus only on the doctors, owners and managers of the practice. While we support myriad doctors, owners and managers, the esthetician is our estie bestie and the center of our universe because we know that when they win, their clients win and we win. Many of our aesthetician providers are single-tier business owners, sole providers to their families who've made the jump to be a boss and wield the same confidence boosting power of our treatments to their clients. But they are not alone. We give them all the support they need from training to field help ongoing partnership and loyalty to make their business thrive. Now let me introduce you to 1 of our single chair aestheticians from Salt Lake City, Shannon Par. [Presentation]

Thank you. Personal story, I had the honor of meeting Shannon at our legendary SG Palooza event in Las Vegas this year, and she was kind enough to let us share her story here. Her story is one of the most powerful ones I've heard since I've joined HydraFacial. Our aestheticians are the most coveted brand advocates and business partners anyone could wish for. And we've earned each other's mutual trust and respect over the many years of partnership we've had with them. HydraFacial has always been in the business of empowerment and entrepreneurship, like Shannon talked about. We are one of the world's largest trainers and deployers of aesthetics talent. And to quote many aestheticians, we teach them what they didn't learn in aesthetic school. It's easy to see how we retain aestheticians, but how do we attract them in the first place? The secret to our time-tested blueprint for success is what we call the golden triangle, the force multiplier we've built, comprising sales, marketing and training around our aestheticians and customers to ensure they build a thriving business with happy, loyal clients. It's also completely unheard of in the industry. In the medical aesthetics industry, ongoing customer and provider support is limited to nonexistent. You don't see a lot of marketing, training or customer experience, muscle, strengthening customers along the journey. As the joke goes, question, how do you get rid of a laser rep, answer, by a laser. That one didn't hit. Sadly for any estheticians, it's typical to drop the device and disappear. But for us, that is just the beginning of the relationship as we throw every resource at ensuring our customers and providers are 6 along the full life cycle of their business. In the end, we know that all aestheticians and owners have the same 3 questions when considering a purchase for their practice. One, does it work? Yes. Number two, will I make money? God, yes. And number three, how will you support me, HydraFacial answer, all along the way. From pitch, protocol and pricing to event building, social media, product recommendations, we arm our aestheticians with everything they need to succeed. It's a turnkey business in a box that we are continuously updating and improving as the market and our consumer needs evolve, co-creating with them based on their feedback. Here's how it works. Our sales team is at the tip of the spear with our capital sales manager serving as the first touch point with providers, demonstrating the business opportunity HydraFacial presents to their business. The relationship has been passed to the business development manager who serves in an account manager capacity, partnering with the provider to train the team and identify additional growth opportunities that drive our consumables revenue. Our marketing training team sit at the base of the triangle, working in a lot of step with our sales force to listen to our co-creators and identify their needs to grow the business. Our training team is the bridge between the strategy that marketing sets and the provider-facing sales organization. Our training team collectively brings over 200 years of experience in the aesthetics industry, with many having been exactly in the provider shoes as aestheticians reading clients or managing spas. Our industry-leading training program is incredibly effective for our providers and for us, too. As Andrew has said in the past, when providers come through our training programs, we see, on average, a double-digit increase in consumables purchase, half the time to second system sales and a 10-point jump in our NPS score, which Brent referenced. I can attest to this firsthand as much to the chagrin of my training team, I've put myself through most of the curriculum that we offer. And while I'm not sure it's best for me to dawn the scrubs and join the treatment room, I can tell you that I have spoken to literally hundreds of attendees with me who say that we are unique in the industry and were the linchpin of their career success. We have aggressively expanded these training capabilities to the virtual and global environment so we can scale our business quickly. We have a very ambitious goal this year to triple the number of aestheticians attending our training programs. We're offering double the number of programs versus last year, have experienced centers up and running in 13 cities globally and now have virtual programming to expand our reach. But don't take my word for it. Let's hear from one of our most admired and expert HydraFacial trainers, my favorite, Krissa Sanchez, who will walk you through what makes our approach so unique. [Presentation]

Thank you, Krissa. I'm a little embarrassed to say then and now that Krissa always picks on me when I'm a student in her class and on the model in the car for the Keravive treatment, so I know a lot about it firsthand. Also, I'm the one who signs the certificates for all of the students, so I've signed my own certificate for all of the courses I've attended. We offer a comprehensive portfolio of education services. and the results of these training programs drive are amazing. I'll share with you some more detail. This year, the average monthly consumable purchase of certified masters increased 50% in the 3 months following graduation, and 4 master graduates went on to open their own businesses themselves and purchase devices. Today, we offer 13 global HF-X centers in Los Angeles, Mexico City, Dallas, Chicago, New York, London, Paris, Madrid, Frankfurt, Singapore, Shanghai, Tokyo and Sydney. In addition to reaching the providers in the HydraFacial nation, we're also working with some of the aesthetic schools in the U.S. to get aspiring providers into our programs right from the start, so they can begin their careers with expertise and confidence. So now that I've walked you through what HydraFacial brand love looks like and how it feels, how it benefits as aestheticians, providers, customers, consumers, I'd like to turn to how we build it. and why it matters. To quote one of our esteemed providers, Christian Lind of Regent Spa in Rhode Island, HydraFacial filled every missing piece in our medical spa. Not only did it attract new clientele our retention grade grew to 92% after our first 5 months. It has enabled us to increase our sales with other services, especially laser treatments, where we've had tremendous results and growth since introducing HydraFacial. There's a reason why some of our most successful providers refer to their HydraFacial delivery system as the mini cash machines of their practice. We constantly hear about the success of our training from loyal and enthusiastic aestheticians we serve. Happy providers are our best brand evangelists by advocating for HydraFacial in their own practices, including second system sales, by telling other providers about HydraFacial and by encouraging their clients to try a treatment. Most importantly, expertly trained providers ensure a consistent 5-star treatment to consumers every time which raises NPS and increase visit frequency. In this way, we HydraFacial are better able to control, support and optimize the end consumer experience through our aestheticians. Now I'll turn towards the other side of the HydraFacial nation. our consumers located across the globe who enjoy the millions of HydraFacial experiences we deliver every year. We enjoy a truly coveted base of enviable and profitable consumers. As you can see from the page, our core consumers have higher disposable income, higher education and over-index in fast-growing categories such as men and Latinx. They're in their 30s, seek HydraFacial to prepare for life events and are a highly attractive consumer for a provider given the propensity to bundle. A HydraFacial generates a boost of confidence in 94% of our consumers, a testament to the strength of the instantly gratifying results and our industry-leading NPS. What ties our consumers together though is their deeply felt aspirational need and desire to live their best lives through beauty and skin health, investing significant time and money across the full suite of beauty, health and aesthetics products, treatments and experiences available to them. They don't see their skin and beauty routines as a luxury but rather as an essential regimen, just like doing your hair, painting your nails or brushing your teeth. For them, this is not a discretionary category. We've learned that to know a HydraFacial is to love it, that we say, you have to get it to get it, and I encourage you all to get 1 today. In fact, 92% of our consumers tell us they wouldn't visit their aesthetician of choice if they didn't carry HydraFacial. So let's talk about the center of this page, brand awareness. With a current aided brand awareness at 8%, we see a huge opportunity to deeply penetrate this open field and growing market through our highly effective initiatives to drive brand. Here's another way to contextualize that room to grow. Our 8% pales in comparison to some of our peers in the beauty and aesthetic space. We have a huge opportunity to capitalize on expanding our footprint through brand awareness measures. So how do we reach and connect with the coveted HydraFacial consumer target audience, educating and influencing them and ultimately driving them to our providers. As Andrew shared, we span our marketing influence efforts across many channels, meeting our consumers where they are and where they discover and learn about beauty, health and aesthetics. We employ an agile test-and-learn approach when it comes to allocating marketing dollars so we can turn up or scale down spend as dynamics evolve. Our sweet spot is physical to digital. We attract consumers with digital outreach, drive them to a physical experience like GLOWvolution or a provider event and then continue our engagement with them digitally as part of the HydraFacial nation online. We use a pyramid of influence model with a portfolio of talent from all over the community, key opinion leaders and partnerships with doctors like Dr. Paul Nassif, world renounced celebrities like JLo and influencers from all ends of the spectrum from micro to macro to mega influencers in the beauty, health and aesthetic space. Collectively, this approach fuels brand awareness everywhere our consumers live, work and play. And what sets us apart here is our unconventional approach to marketing and how we deploy our marketing investment. We are a very grassroots and organic organization in capitalizing on our brand love. We utilize the pyramid of influence in a and range to build brand awareness. In many ways, our HydraFacial Nation does our marketing for us. Now let me share with you an example of an impactful organic moment by an influencer with 8 million TikTok followers. Here is Kirsten Titus, aka Pepperoni Muffin. [Presentation]

That video garnered 7.8 million views. Would anyone like to guess how much we paid for that? Answer zero. That's where the brand love comes into play. As measured by our Google search trends and our earned media value, our approach is working. Our nascent efforts are already showing significant improvements to where we were just 3 years ago, with search trends up 35% and earned media value higher by nearly 90%. Longer term, we're excited to build a closed attribution loop for the marketing flywheel directly with our consumers, which will provide stronger visibility into the ROI of our initiatives and provide us direct engagement opportunities with our consumer. We'd expect this to result in a more targeted approach, driving enhanced yields and traffic to our very own providers. One linchpin of this effort will be a consumer loyalty program, which we are developing and testing now and plan to introduce sometime next year. While it's true that we approach our B2B and B2C audiences concurrently, as a lean, agile and high-growth company, we view arming our providers with all they need to drive awareness and traffic through their doors as the most cost-effective way for us to win. And our early B2C efforts to build direct relationships with the countless consumers who love us is bearing fruit, and we look forward to keeping you updated on that work. Finally, I'd like to talk to you now about where this community, the HydraFacial Nation, will come together. SYNDEO, the center of our connected community for providers, consumers and HydraFacial. This transformational BeautyHealth device is the nucleus of our connected platform. SYNDEO is our game changing innovative and long-awaited transformation of the treatment experience for providers and consumers alike, co-created in direct collaboration with our valued esthetician partners. We transformed this flagship device to address many of the critical ask they had for us. A sample, hands-free operation with touchscreen and gesture control, hands-free LED light therapy that enables time savings and increased utilization. The provider can now focus on other treatment areas or add-on offerings without having to handle the LED. Intuitive and automatic controls to moon effortlessly between treatment stages, a lighted and magnified gunky jar to show the results easily to consumers. For those of you who have seen it online, it's gross but incredibly attractive at the same time. Much lighter and more movable machines to effortlessly toggle between treatment rooms, personalized lighting and nameplates and an integrated per treatment for Lipin eye. SYNDEO is light years ahead of other delivery systems with its connected features. With a completely self-guided intuitive step-by-step narrative provided discretely to the aesthetician and invisible to the client, the aesthetician becomes the trusted expert providing all the skin care guidance to their clients in real time, whether to cross-sell or upsell to our treatments, modalities, parts of the body or just simply to inform on ingredients, formulations and solutions. Some of our delighted aestheticians have told us that SYNDEO is like having an HFX master class inside the machine every time. This built-in automated guidance benefits providers, clients and us. For aestheticians, they sound like the experts to their clients every single time. for clients, -- we know that the #1 driver of return visits and high frequency is engaging in education with their aesthetician, and this ensures this happens every single time. And for HydraFacial, as I've said before, we can guarantee a consistent 5-star treatment to our high-value clients over time across different providers and even across channels. We think of this as our Starbucks level move to ensure reliability and consistency across the entire platform. So at the start, SYNDEO represents a game changer in ease of operation, design and use for our aestheticians. We created this patent-protected industry device with their direct feedback and input. But it also represents the beginnings of a connected device that will both create a direct relationship for us with our own consumers, opening a marketing flywheel of communication and also a very rich source of treatment data that we use to constantly improve the products we build and the experiences we offer. When we think about the marketing flywheel here, the possibilities are endless. We think about using the connected app to directly and frequently engage the consumers via loyalty incentives, birthday rewards, new product introduction, compelling content, promotions, trial, personalized offerings, all geared to their unique needs and interest based on the knowledge of their history with us. We're in the early stages of this effort, and we look forward to sharing more details in the year ahead. Our launch this year of SYNDEO 1.0 is just the beginning. We are already hard at work enhancing, improving and optimizing SYNDEO in collaboration with our early adopter providers. We employ a continuous approach to development, pushing releases over the air with software updates. Future releases will include additional features and functionality, especially progress toward our connected ecosystem, tying together provider, consumer and HydraFacial through a redesigned app with greater connectivity and data next year. Once we achieve this connected platform , we will be able to do several powerful things, empower aestheticians to deliver even more personalized offerings to their clients' unique needs based on their treatment history and personal preferences. Invest in our providers directly by driving new and existing clients into their door through our connected consumer app and loyalty program launching next year. drive growing device utilization for our providers once we have established this marketing flywheel and importantly inform future product development with crucial data coming off the machines about treatment type, duration, technique consumables use and more. These are early days for the BeautyHealth Company, but we're scaling our global footprint quickly. In response to the brand love we've earned and which we continue to nurture across our providers and consumers. We have an enviable enthusiastic, profitable and growing community. We have a coveted diverse and highly engaged consumer and customer base helping spread the word about HydraFacial and convert new clients. We have a time-tested and proven blueprint for the ultimate in HydraFacial support behind our customers, fueled by a first-class sales training and marketing team. And now we have a state-of-the-art industry-leading flagship device with SYNDEO that is transforming the industry and setting new standards for what an aesthetic experience should be. The future is bright and I am grateful and excited to be part of this disruptive category-creating BeautyHealth team. Thank you. Now let me turn it over to my esteemed colleague, Dr. Jwala Karnik, who will take you beyond the globe to a discussion of how our remarkable delivery system works. Thank you.

Please welcome to the BeautyHealth Executive Vice President of Global Strategy and Partnerships; Dr. Jwala Karnik.

Hi, everybody. I just want to say 2 things upfront. Don't worry, there's a break after my talk. And why does marketing always get the cool videos, but -- it's all right. So thank you, everybody, for joining us today. It's a pleasure and a privilege to be able to speak with you. My name is Jwala Karnik, and I am the EVP of Global Strategy Partnerships at BeautyHealth. I was also a board-certified physician and academic faculty member before moving on to management consulting and then into the aesthetics industry where I've spent the last 15 years. So I began working at HydraFacial way back in 2017 in an advisory capacity. And then I joined BeautyHealth full time in 2021. And while HydraFacial is known for is glow, underlying that buzzy word is a device with an intricate set of actions that synergistically improve skin quality from below and above the skin surface. So today, I'd like to take the opportunity to put on my metaphorical white coat and speak to you about skin health, the science behind how we impart that glow and how it's informing our strategy. Oh, yes, the stains of the pathology slide. So in order to appreciate how HydraFacial works, we have to understand how our body's largest organism, the skin -- largest organ, the skin, regenerates and protects. And our skin has 3 layers: the epidermis, the dermis, and underlying that is the hypodermis, all of which have different functions. And I'm going to focus today on the top 2 layers, the epidermis and the dermis. The epidermis is the top 1/3 of the cross-section shown here in that dark purple, and it's our body's first line of defense against pollution, sunlight or infection. It's the most superficial layer, the stratum corneum, that you see there on the very, very top, is made up of dead keratinized squamous cells. And if you were to look at those under a microscope, they look similar to fish scales and they create a dry, relatively impermeable barrier. It's that structural integrity that's effective at keeping harmful organisms and molecules out, but it also limits how well skincare ingredients can get in. That epidermis is layered in and of itself, and it's constantly dividing and turning over roughly every 28 days. And as those cells mature and they travel from the basement membrane of the epidermis up to the surface, there's a buildup of those dry scaly cells that can impede cellular turnover and scatter light rather than radiantly reflect it. The dermis is that bottom 2/3 the pinker part of the slide. And this is the layer where we have all of those important items like blood vessels, nerve endings, collagen and elastin producing fibroblasts, the extracellular matrix, hair follicles and glands. This is the layer where we want to deliver active skincare ingredients. And to do that, we could completely have faced the top layers to expose the derma such as possible with lasers, but that has some downtime, expense, and it's just not appropriate for a regular skin maintenance regimen. So what else can we do? Well, we could use needles to create open channels, to inject a liquid or gel within the dermis, but that's painful. It has a risk of infection and post-inflammatory hyperpigmentation. And it delivers a more discrete treatment versus an overall field effect. So how then can we address the need to exfoliate excess keratinocytes, stimulate healthy cellular turnover, clean out debris from pores and reveal a better light reflecting surface and facilitate diffusion of powerful, active ingredients broadly across the entire dermis in a way that keeps patients coming back and consumers coming back into the practice on a regular basis? Well, if we could do that, that would be a holy grail, wouldn't it? A magic potion, if you will, that keeps consumers and patients coming back for more. Well, I'll show you today why we have it in HydraFacial. 20 years ago, we were pioneers with the first patented microdermabrasion device. We then went on to create the category of hydrodermabrasion when we launched the first tower in 2005. And in aesthetic world that's littered with pop and flops with everyone in search of the next greatest thing. The secret to our longevity lies in the fact that we have an effective and safe treatment that is rooted in the fundamentals of skin physiology. And it helps that we deliver delight enjoy every single time. So hopefully, you've all had a chance to check out our beautiful new SYNDEO device or you'll get a chance to do so at the next break. But as sophisticated as it is, it all comes down to this. This is our proprietary handpiece, and it's the part of our device that the consumer experiences directly. But we like to call it our Magic Wand because all of the technology that's housed in this handpiece is what in part that iconic glow. We use up to 6 different single-use tips. Each one is optimized in shape and size to achieve a personalized outcome. The plastic edges are very gentle. They gently abrade the skin surface to aid in an effective physical exfoliation. And then the proprietary vortex technology pattern at that swirl, along with a vacuum suction, assists in mildly stretching the skin to the surface. It dilates the pores and brings everything up closer to the surface of the tip at that vortex and suction so that we can have maximum dirt and sebum extraction along with dead cells. Our solutions and serums are pumped into the wand. They come in through a closed loop system, and then they're pneumatically applied with positive pressure for painless absorption of beneficial ingredients. It literally drives it into the skin. In addition to the physical exfoliation, every HydraFacial treatment includes a mild chemical exfoliative peel that can be customized in strength with glycolic, lactic and lactobionic acids. The chemical peels will weaken the junctions that are in between those keratinocytes, allowing for better penetration of the subsequent active ingredients deeper into the skin. So we have a combination of physical, chemical exfoliation, mechanical stimulation and the efficient delivery of our serums and boosters that results in that smooth skin that beautifully reflects light, producing our signature glow. You've seen how the mechanics within the wand work in conjunction with the liquids flowing through it to improve skin health and appearance. But not only is the wand key to getting great results, it's also our competitive moat and is a source of differentiation for us. So you can think of it as a cured machine, our wand, that dispenses any skin care ingredient and brands that you wish. We've already partnered with leading skin care brands to bring their differentiated technology to our platform. And by leveraging their expertise in skincare that reduces our own R&D development burden, with respect to both time and cost. It allows us to be always at the forefront of innovation with the latest in active ingredient technology. We also partner with emerging companies to access the newest innovations and we partner with recognizable and beloved brands, which allows us to appeal to their loyal consumer base. And that, in turn, drives more consumers into the HydraFacial Nation, which grows our own brand awareness. And the greater the scale of our installed base, the more desirable our distribution footprint becomes to other skin care brands to partner with us, leading to even more personalization and better brand awareness, it is our flywheel in action. So as an example of our ability to rapidly innovate and partner to stay on the cutting edge of the latest technology and trends, I'm so pleased to talk about our latest booster partnership with Organicell, a company developing novel nano technologies for the next generation of regenerative medicine. Our new booster will contain billions of exosomes, which are small membrane vesicle, secreted by cells containing cytokines, chemokines and growth factors that are involved with cellular communication with respect to repair and regeneration. This is additive to our current booster arm inventory and for addressing the signs of inflammation and aging, and it's using technology at the forefront of modern regenerative medicine research. We expect to launch this booster soon in 2023. But despite all of this technology that's embedded in that wand, what really matters is how good consumers look and feel. We know this. And as Andrew and Ben mentioned, once they've had a HydraFacial, they love it. That said, it's always helpful to look at the objective data to fortify what we already know. So in this study, I want to show you, we partnered with our friends at ZIO Skin Health to evaluate the efficacy of HydraFacial with the ZIO Skin Health regimen. And as you can see by the chart here, HydraFacial led to a significant reduction in dirt and sebum after a series of HydraFacial treatments combined with the skin care regimen. And that same study show that 83% of subjects noticed an improvement in their skin moisture, and 70% reported that their skin felt more hydrated. We know that HydraFacial works at deeper levels in the skin, affecting change. Sometimes you can't immediately quantify it, but it's essential for healthy skin. But we did quantify it. So take a look at the study shown here, the repeated pressure, suction, stretch and tension from the HydraFacial is likely -- all goes into demonstrating that statistically significant increase that we've seen here in epidermal and papillary dermal thickness. And thicker skin is the hallmark of more youthful and healthier skin. Hydro facial produces meaningful important changes in how consumer skin looks and feels. And this graph shows how those appearance dimensions that consumers care about most are improved after HydraFacial treatment. We see statistically significant improvements in hydration, pore size hyperpigmentation, dullness, fine lines and texture. So while you've heard from Ben how our consumers significantly more likely to purchase other treatments, products and services when they visit for their HydraFacial, there's a reason for that. It's because exfoliated and hydrated tissue is the best starting point for any other treatment that a consumer is considering. Skin prep with HydraFacial may improve their outcomes, and we've seen it in our prior studies, an incremental 30% reduction in brown spots when HydraFacial was paired with IPL, which is intense pulse light. 50% smoother skin when paired with an ablative fractional laser, 2x firmer and smoother skin when paired with radio frequency and focused ultrasound and 2x smoother skin when paired with non-ablative fractional laser. So we know that HydraFacial translates into meaningful consumer and patient reported outcomes. And that's why we do this to help our consumers look and feel good with tangible results that can be measured objectively. But in the end, they don't care about measuring percent improvements in thickness and poor size and pigment. They care that every single time they come in to get a HydraFacial they know they're going to reliably leave with attractive glowing skin that leads to unparalleled satisfaction and confidence and that, in turn, allows them to go out in the world and do their best. And that's why 94% of our consumers feel a boost of confidence after receiving a HydraFacial. And in this age of social media, where virality and cancel culture can make or break a brand in equal measure, it's so rewarding to see the millions of positive photos that people post about their HydraFacial experiences all around the world and it's organic. All of those happy consumers have been hugely beneficial for our providers practice. It's the gateway that opens the door for consumers and patients to try additional treatments. Why? Because it's painless. There's no downtime. It delivers immediate results and it's at an accessible price point relative to higher ticket items like injectables and energy-based devices. So when a practice puts a patient or a client on a regular plan they are giving that patient not only the cumulative benefits of HydraFacial for their skin, they're also contributing significantly to the top line and bottom line economics of the practice. We tested that out when we conducted a study of 13 practices in which we introduced a subscription program for HydraFacial. And those patients who were on a member subscription plan, came in for 8 to 9 HydraFacial treatments within a year versus just 1 to 2 for those who are not on a plan. And in those same practices, the HydraFacial member revenue per patient was similar to Botox, but the profit back to the practice was over 75% higher. In addition, 80% of HydraFacial consumers have or will receive 2 or more additional aesthetic treatments while they're in the practice, most commonly, injectables and lasers. And that makes the HydraFacial consumer an extraordinarily valuable one to a practice. Now good skin care and health don't just happen. It's the result of good habits and routines. And we are confident that HydraFacial is an integral part of the good skin care routine that helps people confidently face life face first while generating healthy profits back into practices. Thank you so much for your time and attention today. It has been my absolute pleasure to pull the curtain back a bit on our glow. And now we're going to take a brief break and come back for a moderated discussion on our prolific partnerships and omnichannel strategy with my colleagues. Thank you. [Break]

Taking the stage for a fireside chat, our BeautyHealth Executive Vice President of Sales for the Americas, Dan Watson; President of North Asia, Mingo Ku; Executive Vice President of Global Strategy and Partnerships; Dr. Jwala Karnik.

Hello, everyone. I am Amy Juaristi, Head of Corporate Affairs for BeautyHealth, and it is my pleasure and honor to be here to moderate this panel discussion, a discussion of the power of our omnichannel strategy. Before we dive in, I will ask each of our panelists to introduce themselves. First up, Doc.

Thanks. Dan Watson, also go by Doc, as you've heard. So I'm the EVP of Sales for the Americas. Been with HydraFacial 5.5 years. Prior to that, 30-plus years in the medical device world, small, medium, large companies. So -- yes, excited to be here. Mingo?

Thank you, Doc. My name is Mingo Ku, the President of North Asia and Australia. I've been with the company, also similar to Doc, well -- about 5 years. I actually joined 1 month after he did. Prior to HydraFacial, I spent 15 years in the medical device and the aesthetic device area, Boston Scientific, Johnson and Johnson, Solta Medical.

And Hi, again, everybody. I'm Jwala. You just met me. Nice to be here again.

Wonderful. We'll pick up right where you left off. When we broke for a coffee. We were talking about our providers. Jwala, tell us about our categories of providers and the value that HydraFacial brings to each of their businesses?

Great. Well, thank you, Amy. So HydraFacial creates tremendous value for our providers in every channel that we play when we've told you we're omnichannel. So first off, doctors and spas. HydraFacial is that gateway treatment. It kind of welcomes that consumer that's new to cosmetic dermatology with a friendly, approachable treatment, both in terms of experience because it's noninvasive and it's painless and effective, no downtime. It's like a no-risk way to dip your toe in that cosmetic world. And in terms of cost. An express HydraFacial is typically only around $150 to $200, very, very affordable. And once they start with that HydraFacial, most consumers are keen to try more. You just kind of get sucked this cosmetic aesthetic world. And we also know that HydraFacial offers more gross profit per treatment back to the practice than the leading neurotoxin, so very attractive to them. And our high-end consumer is typically purchasing 2 or more aesthetical treatment. So very lucrative to that doctor/spa channel. If we move on to another part of our omnichannel world. There's the whole retail world with retailers like Sephora, Ulta, Gallery Lafayette, John Lewis and more. And here, HydraFacial really helps drive foot traffic back into the store. It's offering consumers a rich experience while shopping and it's so important to these retailers who are trying to compete with online and bring those consumers back into their physical locations. And even better, we know that a HydraFacial shopper that's receiving a treatment in the store leaves with a higher-than-average basket size. So it's a win-win all around. And then finally, when we have our solo practitioners, kind of single room SDs that may be renting a room at a salon or even working out of their home, HydraFacial is that anchor for them. It's that steady stream. You saw Shannon on the screen earlier. They can offer that. They know they're going to be able to drive people in and get that revenue and repeat customers. And in fact, a aesthetician who's performing just 10 HydraFacial treatments a week has the opportunity to earn up to $100,000 or even more annually if they're upselling, adding more personalized treatments. And that's just one of the treatments they're doing. But don't take just my word for it, let's hear directly from the source. [Presentation]

I think it's fair to say that we have some fans of HydraFacial. We heard from Dr. Paul Frank, a notable New York City cosmetic dermatologist, the medical channel which he represents is our biggest channel, of course, representing 60% of current revenue. Doc, you have spent your career in medical device sales. In fact, it's where you got your nick name -- and I must share a famous phrase within the walls of HydraFacial is, in Doc, we trust. So tell me Doc, in your 30 years, what makes HydraFacial the device you want to sell now?

Yes. Thanks, Amy. And -- again, good morning, everybody. HydraFacial, it's an incredible product, arguably, probably my favorite product that I've sold in my 30-plus years. The technology is innovative. I think in the aesthetic world, you got to remember, it's noninvasive, it's painless and has no downtime. And the treatment is customizable and personalized, which our consumers really love. And we've heard it before, the pricing is very accessible to all consumers. And something that's important, you've heard a little bit here, is the support we give to our providers, our estheticians is very powerful. And all of these things that I'm sharing with you really help my team to successfully sell HydraFacial. But when people really pressed me, they're like kind of what seals the deal, it generally is the gross margin that you make on it. And I think the slide will advance here and tell you that it's anywhere from 70%, 80%, 90% gross margin on their HydraFacial treatments. So the product is highly profitable, but not just for us but also for our providers. And my sales team, they love selling, they love hitting their numbers and all, but truly, they also love help building our providers' businesses with them. So it's truly a hand in glove, and we sit on the same side of the table. So it's kind of a win-win situation in terms of this. So that's why I enjoy it so much. Mingo?

Yes, we see a similar strength in the medical channel in APAC. As a matter of fact, we see that we see the medical channel is going to be the highest channels for growth in APAC for the next 3 years. If you not only have the traditional HydraFacial targets of dermatologists and plastic surgeons prevalent in the region, we also see, for example, the dentists are increasingly providing aesthetic treatments as well. So the future is tremendous.

Fascinating, dentists. In addition to our channel diversity, we have quite diversified sales regionally as well. And in fact, in our 3-year plan, of course, EMEA and APAC are set to exceed our Americas business, which is quite exciting. Thankfully, we've offered some more -- we've recently hired more team members to help lead that business. John Arnold has recently joined as President of EMEA, and Stephanie Gabouer as President of Southeast Asia. John and Stephanie, we're so glad that you're here. Mingo, you opened our international markets on your own 5 years ago. And today, of course, you're President of North Asia. We've seen persistent shutdowns due to COVID, especially in China. Can you talk about what that means for our strategy and outlook?

Great. Thank you. I don't have to tell you how dynamic and how particular situation is in China, based on the COVID. Having said that, we have been dealing with for 3 years now, and we have learned how to drive the business in this challenging environment. Our team is predominantly based out of Shanghai and Beijing, and they have gone incredibly creative during this period of time. We have moved a lot of our training online and we do a lot of live stream support the accounts. So we continue to partner with our providers to maintain strong relationship ahead of the broader reopenings. Of course, with the shutdown occurring, we have exercised our agility and reduce our marketing spend given the lack of ROI opportunities. That said, we'll continue to build the commercial organization, expand and train the sales force. So when the time comes, the market reopens, we'll run out of the gate very strongly.

We cannot wait to see what you and the team drive in North Asia. In Southeast Asia, of course, we're getting started with Stephanie and an exciting announcement, which we heard about earlier, the expansion of our Sephora business into Singapore. Jwala, you lead our strategic partnership with Sephora. Can you tell us more about our HydraFacial journey with Sephora and why that partnership matters?

I'd love to. It's a fascinating journey. So they are a global retail partner. We actually started way back in 2016 with just a pilot. We were just in a handful of stores. We were a service that was given away with purchase and based on the success of that, and you just heard Priya Venkatesh from Sephora, who's now a global leader, mentioned that we drove basket size 3x, and we're bringing customers in. So based on that success, we are now in every single store in the U.S. in Sephora, that's almost over 500. We're also now in almost a majority of the stores in Canada. And then as of -- in 2 weeks, we'll be -- so excited, we're expanding into Singapore. We'll be in their Raffles City location. Super exciting, our first foray there. And from there, we absolutely plan and would love to expand across Asia and other areas with Sephora as well.

Congratulations. And congratulations to Sephora for spotting HydraFacial early on. We started that relationship, as you said, 5 years ago. But today, we have signature partnerships with a number of retailers. We've mentioned some of them, Ulta, Saks, Nordstrom here in the U.S., in EMEA, John Lewis and Galerie Lafayette, of course. But retail isn't even our largest channel or our most profitable, what makes it most strategic?

So retail is part of our omnichannel strategy. We've said we want to be everywhere that our consumer lives works and plays. We know people play in retail. We might argue some of us borderline live in retail. So we certainly want to be in that retail environment. But these partnerships are great because not only do they attract consumers, they bring in consumers who will try and trial our treatments, who may not be ready yet to go on to HydraFacial in a doctor's office or spa, but they're starting their journey. And it may be somebody who's toggling between an office and a Sephora. Either way, no matter whether they're at the beginning, the end or very sophisticated going between, we are going to capture all of them. So as much as retail is a sales channel. It's also really and truly a brand awareness play as well.

Amazing. Speaking of brand awareness, Mingo, how do you open a market like China that has little to no brand awareness?

Great. Thank you. Our strategy in China is city-based. We're targeting the top cities. And within those top ZIP codes, what has driven those brand awareness. Four years ago when we first entered China, we started in Shanghai only as Shanghai is a leading source of trends, aesthetics and fashion in general for the Chinese consumers. We also purposely focused on the medical channel first to anchor the HydraFacial brand position as well as the treatment pricing before reaching to the nonmedical channels. By collaborating with the top medical providers, we're able to drive credible awareness quickly.

Yes. And I'll just weigh in to for the North America, that's exactly what we did as well. When I started at HydraFacial back in '17, there was -- we probably only had 4,000 machines out in North America. So we just -- we focused on large cities in areas where there's lots of super consumers of skin care products or what Ben referred to as super Geo, so that was the success plan.

And did I hear that 4,000 spots, we're 4x that now in the U.S.?

Pretty close.

Okay. Terrific. In Doc, we trust. I want to change gears and talk about SYNDEO. SYNDEO has been such a success since its launch in the U.S. back in March, and Ben told us about its great features. What is the sales team hearing? And what does the sales velocity look like?

Yes. Thanks, Amy. It's been super exciting for us. The sales trend for both the new and trade-ups has been fantastic. As you know, we have a really strong relationship with our providers. And the fact that the system was co-created with them, we knew that they'd be happy with what we delivered. And You heard some of this from Ben, but the customers love the new look, it's slick, it's modern. The ease of use for our customers, it just makes their life so much easier. Touchless screen, I mean they're wearing gloves. It's very difficult to run the machine, the old machines. The stand-alone light stim device that we heard about, it just gives the esthetician more time to really work with their clients. The providers are looking forward to more of the data piece to come out. And what we feel we are going to be able to do with that is allow our providers to better understand their business and we can help them maximize the return on investment. And one thing that's been mentioned, I think, by Andrew and by Ben is the fact that SYNDEO will now allow us to connect directly with our consumer. And we've never been able to do that before. And I firmly feel as the sales guy that, that connection is going to really open our flood gates for growth with this. So it's been really exciting.

Yes, absolutely. And the excitement for the SYNDEO launch, all the excitement that's driven from here from the U.S., is making us very, very excited for the launch in 2023.

Amazing. So tell me, how do you navigate having multiple generations of HydraFacial machines in market and spread across multiple channels?

It's a great question. The way I think I would answer this is, what, Apple releases a new phone, there's people that line up overnight out there because they're early adopters. They want to get the brand new device. Meanwhile, others will just kind of sit and wait and be happy with the phone they have. And that's really what kind of I'm dealing with here in the Americas with all that. But it's something that we can manage because we know that they're using HydraFacial. Our ultimate goal, though, is to get everybody into SYNDEO. And I think it's important to kind of remember we have a unique core customer, and this circles back around to the omnichannel. For example, it's very unlikely that an 18-year-old would be shopping at Sephora and then suddenly jump to a plastic surgeon office. However, with the fact that we have an omnichannel approach, we can follow this 18-year-old man or woman through their beauty journey. So they'll start at a Sephora and then they'll probably move to a day spa. And then they'll probably move to a medical spa and maybe start their neurotoxin regime. And potentially when they're more mature, they might go to a plastic surgeon. The case for us is we're in all of those places. So wherever they are, we are there, and I think that's where our success has been.

Yes. We need to remember that wherever they are, that's where we'll be because HydraFacial is appropriate for everyone regardless of skin color, texture, tone, age, gender, location, it's a lot of people. So if you're going to be everywhere where all of those people are make it convenient for them, we're going to employ a strategy kind of similar to what you see with Starbucks. You'll see a Starbucks on multiple corners. You just want to make sure when you want your latte, you're going to go where it's most convenient for you. Similarly, when you want your HydraFacial, we want to be where it's most convenient for you, and that's the footprint we're trying to build here. The beauty of it is, we're not having to bear the overhead ourselves.

Yes. And just to tag on to what Jwala said, our consumers support our omnichannel strategy. So you heard her earlier, the average consumer gets HydraFacial in 3.2 locations. So it's what I tell my team all the time, it's why we need to sell devices everywhere, so they can be easily accessible. And with the price point where it's at, it makes it a very affordable luxury for our consumer. So whether they're at the gym and they just finished the workout, they're shopping at the mall, and they see a med spa, they're at a resort on vacation, or that's part of their Botox regime that they're always getting a HydraFacial, and as we kind of work into SYNDEO, the connectivity part of that is really helps us get more visibility and better understanding to the customer behavior through all of that omnichannel. And I think, ultimately, as we learn from that, it will better enable us to tailor our expansion strategy and continue our growth.

Yes, I'll add that in Asia, we're so early, that isn't something that crosses my mind. Though we have seen we're less than 1% penetrated in our total possible market of nearly 300,000 doors in the region. We have so much going to do before we may potentially run into this issue. Additionally, the buzz from U.S. SYNDEO launch is well noticed in the region. However, we're not seeing any slowing down in our business at this point.

Amazing. So we've talked about capital investments and placing systems. How do your teams drive consumable utilization across the installed base?

Yes, it's a great question, one I get often. And so just for context for everybody, we have a bifurcated hunter/gatherer medical device sales team. That means I have 2 different types of salespeople. And as you know, we're incredibly proud that over 90% of our sales channel and sales leadership team is female, which is pretty unheard of in the male-dominated medical device field. The hunters, who we call capital sales managers, they sell new devices and expand the installed base daily. That's their role. The gatherers are business develop managers, we call them BDMs. They take over the account, it's really literally a handoff from the capital rep. Capital rep moves on to keep hunting, the BDM comes in. It's the BDMs who train, educate and drive utilization. And you've heard a lot kind of at least our secret sauce is the relationship we have our aestheticians, it's really led by these business development managers, many of them who were aestheticians by training. So they are building this tight relationship with the aestheticians who generally nobody really even talks to. And go on to that, Ben talked about the golden triangle, and that's sales, marketing and training. And that's kind of very unique. And that golden triangle is what supports what we do for all of our providers and all of our locations on a constant basis and really what helps us continue to drive utilization.

Yes. We are -- like I said before, we are very early in terms of a sizable installed market -- installed base in Asia. But we have the Doc's playbook, and we're adapting it to our direct markets in China, Japan, South Korea, within North Asia as well as Australia. We're building the hunter/gatherer medical device sales force, taking a very, very targeted, disciplined super geo city-by-city approach. So within China, we're focused on deeply penetrating Shanghai and Beijing and Shenzhen as well. In Japan, Greater Tokyo metropolitan area and surrounding cities. In Korea, the greater Seoul metropolitan. We want to make sure we win those super geos, while we expand our presence and serve is at our customer base. How do we win these must-win super geos? Like Doc said, deploying our golden triangle, the playbook, where sales, marketing and training, they work hand in hand.

And for our corporate accounts, we're really excited about what SYNDEO can offer in terms of utilization. Now these are accounts that have multiple locations and the owners really need to understand the trends and performance across their portfolio. They see uneven performance and they want to level it up to their highest performing locations. This will allow us to establish an even deeper partnership and relationship with these high-value orientate provide more value to them. And I'll note also, utilization is relative to a channel so it's unrealistic to think that a delivery system at a gym or a studio is going to have equivalent utilization to that at a spa resort or a medical channel, which are constantly booking treatments, and that's okay. Because for many offering it as a benefit or a perk at the gym is all they need to satisfy their customer base. And it's so profitable. It doesn't even have to be working 24/7 in order for them to pay back their investment.

It's a really important point that you make there. I have one more question before we close out, and that is very simply, what excites you for the future?

Yes, I'll start. For mine, it just continues after being here 5.5 years to see what the opportunity is we have in front of us. We continue to be really strong in the medical channel, but yet there's so many more doors for us. And then a huge opportunity for us in spa and hospitality. There's just tremendous upside, and it just gets me out of bed every morning, and super excited.

I'm so excited about retail and all the opportunity it's going to afford us to drive brand awareness and trial.

Yes. For me, right now, it's thinking about how great opportunity is the potential is so high for us in North Asia. This is a market that's famous who is focused on beauty, and I cannot wait a place in the systems everywhere. As I mentioned, I started 5 years ago with HydraFacial, building our international business and transitioning from distributor to direct model in our key markets. That's why it's so great to have Stephanie and John to join us and to take our international business to the next level.

Indeed, our international growth is part of our growth plan for the next 3 years, which you've all heard is to double net sales and triple our profit. We're looking forward to Liyuan's talk next to share with you the fine details behind the plan. Thank you, everyone, so much for having us.

Please welcome to the stage, BeautyHealth Chief Financial Officer, Liyuan Woo.

Thank you, everybody. Hello. So great to see many of you. Actually met many of you before. But I know there's others online as well. So a quick introduction. Liyuan Woo, I'm the CFO. I've been with BeautyHealth, then HydraFacial for 2 years now. It really feels like longer than that, but it's been super exciting. I was actually talking to some of the folks earlier, there's a lot of the talking points Andrew and I have been talking to the investors. Hopefully, after hearing from Ben, Jwala and everybody from the team, a lot of the message really hit home, of the great opportunity we have ahead of us. So for today, we'll talk very briefly about our unique positioning and track record of success, just to kind of walk down the memory link again for the past couple of years. And then we'll talk a bit more detail about our business because I know even after the quarterly call, there's still some detailed questions given we just launched SYNDEO, we had all that trade ups and golden triangle as we explore further. So we'll ground everyone a bit more on the data. Then we'll walk through the 3-year plan and talk about how do we achieve the amazing outcome. So let's start with our competitive I think you've heard from various members today, we'll do a quick summary. It all starts from the product, right? So our patented technology, also the compelling clinicals that Jwala had walked everyone through. I hope you get a more clear picture now with that outcome that we're driving and delivering, and the flexibility of the actual hand piece with all the boosters and partnership. And this is why we always talk about the fact that we're a end company. Sometimes it's hard for people to grasp, like what does it actually mean, end company? I hope after today, you really get the sense of -- we're partnering with everybody, we're bringing the latest technology and innovation. We don't necessarily want exclusivity. We actually really truly wanted to open up the market and connecting with everybody. And we also heard about the TAM. I know some of you actually heard me talking about before, right? Everybody on the planet with faces, our TAM is humongous. And I know a number of people we really wanted to see it down the page. So today, I'll walk you even more detailed by channel, what does a provider TAM look like. We all know where the consumer TAMs are. The golden triangle, we talked about a lot. This is a unique business. I know a lot of the retail friends usually say, "Well, we know you have to throw money at marketing in order to grow brand awareness." I hope, based on all the conversations we had so far, you understand how unique we are with this flywheel of golden triangle really feeding each other and really continue to generate better return on investment. And we're very much of a test-learn business. Whatever we learn, we either run fast or pivot and we deploy that globally. And it doesn't matter what idea come from, either being from Mingo's APAC business or EMEA, would take it put into the playbook and refine it for local markets. That's a huge secret sauce. Now of course, we engage community, right? When we talk about platform, we talk about community, we talk about ecosystem. HydraFacial Nation is really the core of it, right? The fact that now we're BeautyHealth, and we raised the cash along with the complementary with other services, we're ready to really build that bundle, whether being product, services, capability. We just want to really service our platform, our community further. And all of that translate to this really, really attractive business model we have. We talked about previously at length, we've always been an asset-light business. If you look at our historical, we spent less than $10 million CapEx. Now the last 2 years, 2021 and 2022 right now, we've been working really hard with speed, right, really building out that infrastructure. You've seen now we have 13 experience centers. Each one of them service for the entire golden triangle. And we've been very nimble. We don't have to have big offices, but it's critically important for us to have foothold in these key direct market. And believe it or not, we're in 16 of them now, direct market, right? And Andrew often refer to that make up 85-plus percent of the true beauty business. So we'll be very surgical and focused as usual as we deploy. And we all heard about high margin, high gross margin for our providers, very affordable price for our consumers, a very good margin for ourselves, right? When we talk about profitable land grab, literally mean even for the delivery system is extremely profitable. So all of that really built this company that's with the future profitable growth tried and true with our razor blade model. So this is just a quick note. We are a consumer -- we are a health care consumer crossover. And you heard from Doc and others, it's very rooted in this medical device. But obviously, if you look at our management team, we often call ourself MMA fighters, right? So you've got medical device folks, you've got consumer technology folks, beauty folks, and we're really building this category creator something new. But you mean -- if you just look at amidst our med tech peers, given our growth profile -- by the way, when we shared before, under private equity before we went public, we've always been mid-20s when it comes to EBITDA margin. So if you just look at our profile today, it's very, very attractive compared to the peers. So there's only a feel of that on the right, have better margin and growth profile. And with our future, we feel even more confident where we can bring. And I think Andrew talked about the macro, right? So we really are focused on what we can control. But even look at all the tailwind, I don't have to repeat. We all know we're helping retailers, Amazon prove themselves, and we're really catching globally. When you think about the APAC market with the young generation of skin intellectual, their lifestyle, how men are really positioning how they think about beauty services, especially with our treatment. We always say, no pain, all gain. Why not, right? So there's so much tailwind behind us. But even when you look at the headwind, we as a management team, always joke about when life throw lemon, we make lemonade, and we're really good at making lemonade, right? So you think about all the geopolitical uncertainty, we're very, very well diversified. Jwala's talking about we're in 500-plus Sephora doors, and they're our biggest customer. It's less than 3% of revenue concentration. So just to give you a real sense of we are very diversified. Macroeconomic environment, we have very resilient consumer. And I think Andrew has shared even the last recession period, we grow. And of course, we lived through a pandemic lockdown. When I joined September 2020, I can still remember, we had the furlough of 80% of our employees. We probably have less than 300 employees. Now we're almost having 1,000. So we're extremely resilient. We're roaring out of the pandemic feeling really proud, especially connecting and engaging with all of our HydraFacial Nation. And supply chain disruption. Every call, we get the question, right, with the supply chain, all the expenses, how are you guys doing. We launched SYNDEO. Honestly, we're really -- we're so happy with the amount that we exceeded with our own expectation, but we didn't have any hiccup when it comes to supply chain. Obviously, we're not talking about working capital optimization right now. We just want to make sure we have plenty of inventory. That's why you see we actually order a quarter ahead. And especially when you're launching a new product, you want to make sure you have plenty. The other to think about from a lemonade's point of view, look at our margin, the fact that gross margin, our -- manufacturing in Long Beach, flying out components in and out. It just tells you there's plenty of room to go for the future. So we feel very confident about both the tailwinds and the headwinds. Very quickly on our accomplishment. So you look at this business from a CAGR's point of view, it's a 52% growth business. Obviously, we took out 2020 because that's really truly of a pandemic year. And we talk about how great the margin is, right? Gross margin blended despite the pandemic around 70% to 74% between GAAP and adjusted. And we had 6 quarters of being in a race. Even though we're a public -- a new public company, really proud of that. And since we went public May of last year, we actually did 4 distributors acquisition back to back, back in July. And I think that's actually a really important point. Not only we were able to absorb it but also think about what Mingo said earlier, right? For the past 3 or 4 years, we're very U.S.-centric business. And we're just starting to really scratch the surface for international. A lot of those distributors. We are in 90 countries, right? So the fact that we're converting 4 last year, and now we're in 16 markets, also tells you why we absolutely need to invest into the base. So you can actually see the revenue come down in the future. And of course, we've raised $750 million convertible debt. If you recall, last September, when the stock price was close with a $30 with the 1.25% interest rate. So we feel really good about that. And you heard from Andrew over and over again, top of mind, we're being very disciplined. We're looking at a lot of targets, looking at the M&A deals, but very patient, right? We wanted to be responsible and really make sure the valuation is right for us to add to the bundle. We launched ERP in 9 months, actually went live November of last year. I feel really good continue to build on that infrastructure system. By the end of this year, we'll be in every direct country, maybe with the exception of Australia because their year-end is actually June. So I feel really good about building all that fundamentals with my teammates here. If we dive down a little bit more on the numbers. So here, you see every single quarter how have we actually mentioned about our revenue and exceeded them. Part of that, we do have -- we run our business based on rolling forecast, as we shared with you. We actually have a pretty good pause in terms of how the revenue generates around the region. But you guys will understand for the past 2 years, there are so many open close because of the pandemic at different regions and cities and open close and different capacity. So a lot of that makes the visibility a bit harder to see. That's why we've always been very transparent when we provide guidance. If you recall, even for Q2, essentially, what we said is, really, we launched SYNDEO, we're assuming the trade up is going to be consistent to historical experience. We understand the very gradual opening in China. It's very hard to predict what the country is going to do with China. But we are projecting a gradual opening. All of that we had put into our modeling assumption when it comes to Q3's guidance, right, $340 million to $350 million. So just wanted to kind of repeat what we said back on the call. The point here is that we've been very transparent our model made those assumptions. But obviously, if the sales come above that, that would all be just incremental. Let's see if the market does open faster. Moving on to EBITDA. I really wanted to emphasize the point again scaling and speed is very important for us. We are a growth company. And precisely because of that, we've been giving dollar EBITDA guidance. You recall last year, 2021, we said we were going to generate $25 million EBITDA. Obviously, you heard from Ben, with our golden triangle, we know how to put that lever when it comes to marketing, right? So if the market is not open, we don't have to invest in marketing. So as a result, if you remember, 2021, the first half of the year, the vaccine didn't even come till Q2. So there's really no point. So as a result, we were able to generate $33 million EBITDA for last year. Now if you're moving on to this year, because we've been such a U.S.-centric business, you will understand with the conversion of the distributors, building direct channel, we'll be investing heavily in people, in locations, in system. And this is why all along we said, regardless of our sales, we will be delivering $50 million EBITDA for the year, which is actually double the guide we have provided the year before. We are in great financial position with over $800 million cash that we have raised for M&A, we also had a revolver secured for $50 million because I think folks are asking the question on working capital. We believe with that $50 million revolver that should really help us to manage our working capital. As I mentioned earlier, ample inventory as we continue to grow our business. So that was a high level of the record of success. Now let's give you a bit more detail of the business itself. So we're actually showing a 2019 example here for both our sales penetration by quarter and also EBITDA. Really just to give you a sense of our business has been pretty consistent. It's very back-half heavy. So when you think about where the revenue drop to EBITDA, it's very much of a heavy Q4 play. And if you dive a little deeper here, we're trying to show you sequentially, what does it look like on a bi-quarter basis. You can see because Q4 is usually the strongest quarter, it's holiday, it's probably the only period, we actually run Black Friday, Cyber Monday promotion -- the fact that, especially in medical channel, you have folks that wanted to use our capital budget for the year, and there's tax benefit, usually you do have more drop up both of the system and the consumable for the fourth quarter. And then you see that natural drop in Q1, right? People are taking holiday after the holiday, especially sales folks, and we have our sales meeting. And that's usually very natural. You see a drop of that. And then it kind of comes up, right, and -- to Q2. And then you see that natural drop in Q1, right? People are taking holiday -- after the holiday especially sales folks, and we have our sales meeting. And that's usually very natural. You see a drop of that. And then it kind of comes up, right, and to Q2. We usually have a pretty even Q3. Historically, it dropped a little bit especially given Europeans are usually on vacation during the Q3 period. But this really give you a feel of it's relatively consistent on how we drive our revenue trend. And this is actually quite a bit of a detail. We're showing you by quarter, what is the revenue split between delivering systems and the consumables. That little purple bar shows the trade-up that happened after we launched our SYNDEO, but I'd like to point you to the delivery system sold, right? Like Brent talked about how many systems we had. I know even historically, we always talk about, "Oh, we sell about 3,500 to 4,000 systems a year. But as you see as we invest into sales team as we expand internationally, as we -- our golden triangle at play, you can see better productivity, better lead conversion for our U.S. business, you skip a year for the pandemic year of 2020, we actually delivered more than 50% of delivery systems for 2021. And now we're half year in take away even the trade ups, we are already matching and exceeding the trend the year before. What I'm trying to demonstrate here is really twofold. One, profitable land grab, that's absolutely our #1 priority with the Hunter team continue around the globe selling the system. The other point is we always talk about this business should be higher consumable business. And right, it should be eventually at that 70-30 split, 70% consumable. We've just been driving so many systems. We can't run fast enough for the consumables to really catch up. And there's also a couple of things to keep in mind, and I think I shared with some of you before, every new system we sell, we give them that training kit. And that usually is about 1/4 worth of consumables. Now obviously, with 2022 with a trade up because we're launching SYNDEO, the bottle is different, the system is different. So even for the trade up, we gave them the training kit consumables for all the trade ups. The other point to really highlight is the fact that there is a ramp-up time, right? Like Andrew had mentioned 12% of our customers with multiple systems. We usually see it takes a quarter to 2, especially for those new practices or second system practices to really ramp up. So all of that we should take into consideration when we look at the relationship between delivery systems and the consumables for our business. This is just another cut for us to look at our quarterly trend by region. What I really wanted to highlight for everybody is you can kind of see how U.S. business as being 75% in the beginning now we're trending towards almost 60-40 split between U.S. and outside of the U.S., despite the fact that China is still partially shut down. But if you just look at the purple line, that's the EMEA business. You see back in first quarter of '19, it's a $6 million business. So now we've been trending around $18 million. More importantly, mingle, right? Like when you look at APAC, it was a $2.5 million per quarter business back in the first quarter of '19. We are already growing up to $13 million, $12 million. Obviously, the slowdown, it's China closing related. We haven't really disclosed how big is China but suffice to say, it's very, very significant. Just another way to share with you, we're absolutely growing and there's a lot of strength that's going to come from these international markets. Another way to cut our EBITDA margin, right? Very similar trend in terms of how we drop off margin. A couple of things just to highlight. Again, when you think about 2021. And we usually invest in marketing, especially when it comes to, Ben talked about digital, physical, digital. A lot of these physical activations are more bigger dollar investment, either being the big trade shows or GLOWvolution tours or EstiPalooza usually, we spend those dollars in the first half of the year. Then we see all that leads being generated than converted, really benefiting the second half. Last year was the anomaly because remember, the vaccine didn't even come out in Q2. So a lot of the 10 trips of GLOWvolution tour and a big activation all happen at the second half of the year. So that partially just reinforce the point to explain our trend for 2022. It's kind of abnormal for how we invest in our marketing dollar. So with all of that facts and data and details put away now, let's dive into our 3-year plan. As Andrew had shared, we're going to be doubling our top line sales, and that's going to come from continued growth from across all channels, across all geographies. And obviously, we're very much focused on that consumable pull-through as well. So really excited to dive into the detail with everybody. On the EBITDA front, historically, we always talk about that mid 20%. Obviously, outside the investments in 2021, 2022. Our goal is to have a lot of the fundamental structures built, people hired by the end of this year, then you're really starting to see that leverage in EBITDA dollar and margin flow through. As a result, we're guiding to that 18% to 20% for 2023 and really 25% to 30% based on all the leveraging point that we have mentioned, including mixing shift for the consumables. So this chart is really wanted to emphasize that our goal is profitable growth. We're actually quite maniacal when it comes to optimization, really looking at the things that we can control. But there is a little bit of that tail of 2 cities going on, right? Because you do look at the US market being somewhat mature, even though it's still early. So in [indiscernible] , we've been very much focused on that optimization play, right? Like how do we really invest in the golden triangle even more effective, more productivity we can drive for both the CFM and the VM side of the equation, the more we train the providers, the higher EBITDA flow through you should be start seeing. However, you guys all saw omni center, EMEA and APAC is. And this is precisely why we do wanted to invest back and take over one city at a time and with a similar playbook. And the reason we actually purposefully put that [indiscernible] line is to say, we're actually very good with pulling our levers, and we're going to continue to observe the market. If there's a room to feed and continue to grow with the hyper growth trend when it comes to APAC and the EMEA market, we will do that. So there's going to be a constant balancing between growth and profitability. And we took all of that into consideration, obviously, when we provided guidance to all of you. This 5-point master plan, I just want to go over very quickly in terms of where we invest and what kind of return we really are looking at, expanding footprint, placing system everywhere, right? You heard from Andrew of the monopoly play. And really, this profitable land grab will make sure we're increasing our revenue stream as we invest into Golden triangle into a conversion of the leads. We're investing in providers because of the fact that we're educating them. We're putting out the event. We're radically generous, right? Because when you think about the GLOWvolution, big track, city takeovers, our assetations and providers are showing up, providing their free services. But we're also doing that digital consumer marketing for them. So we're creating consumer demand for the ecosystem. But the fact that we're investing in them, they're investing back to us, right? You heard from Ben, how much of the posting, how do they show up, how do they also service our consumers? So that's really going to invest but drive to fuel sales growth and conversion. Brand awareness, it's critically important for all these folks on the planet understand hydraFacial and related booster services are so good for them. Everybody should be doing it once a month. So the more we can talk about it, the more we can increase engagement with our consumers and increase utilization. Now we have the infrastructure built. We can absolutely starting to truly scale this global growth. And of course, every time Andrew and I go visit our providers, they often say, "Oh, it's so exciting, what else is new? What else can you bring? What is the new technology? What are you going to bring to our bundle to build our business. So like I said earlier, we've been very excited and really wanted to build with M&A, build or buy, right, really helping with product offerings and capabilities to help us grow. So this is a deeper dive on the TAM itself. You heard what Jwala had said. The fact that we have 60% medical, 40% now medical. The fact that we're omni. A lot of times our provider use us differently, right? If you're a plastic or derm, you might want to make sure your patients are capped in between surgeries. And I think Andrew was giving an example, some of the factory derm actually require their patient to subscribe to HydraFacial as a monthly treatment in order for them to receive treatment or if your gym or some other channel, maybe you're not utilizing your machines 24/7. We always observe when a practice provides 5 treatments a day, that's when the tipping point happened for them to buy the second system. What I'm trying to point out to you, you can look at TAM. They're big everywhere. But the one that when you think about truly higher utilization, the machine is open 24/7, our medical spas, and non-medical spas. So even if you just focus on those 2 higher utilization by definition channels, they're half of the channel. So overall, we're less than 5% penetrated. Therefore, I feel really confident about this huge TAM across the world where we can really increase utilization and have leverage support. So current state, this is just -- I don't mean to belabor the point, but you can see even in terms of the split between delivery systems and consumables or more importantly by region, the Americas business continues to grow 30% to 50%,right? And then you look at EMEA, it's been 50% to 80% growth. And APAC has been growing 200%, 300% until the slowdown because of the pandemic closure with Omicron. You have to appreciate during Q4 -- I'm sorry, during Q2, what we had was 70 days completely Shanghai shutdown. No one's really allowed to coming out. Despite that, we only dropped growth to 17%. It really speaks to the strength in Australia and other countries that's contributing to APAC. So this is why we wanted to reconfirm the chart to demonstrate to you in terms of growth, APAC certainly is going to help for the future as well as consumables. Those are the true 2 key levers to drive our growth in the future. utilization, I think that's top of mind for everybody. So you actually heard how we run ourselves with the Golden Triangle. When it comes to account management, it's actually critically important for us to invest in all 3 levers because guess what, with these marketing, either being digital or physical, you're looking at 6% to 40% ROIs, right? Because our LTV is really high, especially if you think about the amount of revenue we generate based on the system itself and also the repeatability of our services. And we talked about training 2 to 4x of ROI, we actually can't calculate, but all of that implied goodwill and all the things that actually they provided to us, it's above and beyond what you can see on the paper. And now everybody has shared, train masters actually generate 20% more consumables. So we can actually see that in the data. And with all the tools, all the dollar we've invested either being CRM or ERP, all of that tools, will continue to help to drive the golden triangle, hence increasing utilization, consumable sales and consumer engagement. And same goes with brand investment that driving up the booster. We're just barely scratching the surface. That's why we're so excited about the new booster we're launching, J Lo launching, all of that will be added utilization and consumable sales for us. and the fact that we're expanding to other part of the body. I think you guys all heard loud and clear from Jwala, skin is the biggest organ of the body. And all these areas we can expand to. I was just meeting some folks earlier and asked them to guess so far, what is the highest service above and beyond the face. Believe it or not, it's actually hands because now, especially with Syndeo, you have the LED treatment while you're relaxing, you can actually receive the hand treatment as an example. For all these levers we can pull around the globe when it comes to utilization. Again, just to demonstrate again mid-20s, historically EBITDA outside investment in 2021, 2022, we're going to gradually step back when it comes to EBITDA flow through. To bridge it even more clearly, right, starting from now, where are we actually getting this leverage point up to 5% gross margin along. And I will dive more into the details to explain to you why we feel so comfortable with that. And of course, you're starting to see some leverage in G&A already. And we always talk about size matter. The bigger of the top line will grow, the better flow through G&A will be to us. In addition to that, our Golden Triangle. This is the one we have the most lever in terms of flexibility in pulling up and down. We will definitely see leverage and flow through as well. So this is how we really bridge it through to drive the business forward with the EBITDA flow through. A couple of things just to hit home and summarize 1 more time, right? We hired almost 800 new employees, 2021, 2022 that recruiting fee because we're scaling -- that really adds to the investment as well. We opened global offices. We have these real estate investment in experience centers. Obviously, we're a public company we build our infrastructure, all the systems just to ready-to-scale. We've been working on network optimization. We've shared before the fact that setting up a 3PL in Frankfurt, really trying to figure out a new 3PL in China, all of which will make it even more efficient. So when it comes to planned growth optimization, you will starting to see that production efficiency, you're going to starting to see that fixed cost leverage. And with the improved training marketing capabilities is going to definitely drive continued growth and flow-through. And we'll have productivity gains across the entire golden triangle. Gross margin. So we're actually showing you both the gap historical and adjusted gross margins. You can see despite the pandemic, despite all the high costs when it comes to freight and componentry with these supply chain disruption, within maintaining around 70% to 74%. But that's today, right? We're airfreighting a lot of the items because again, we're buying speed, right? They're less in the load, the smaller order size. It just means upside, there's still a lot of duplication calls, right? If we did 4 distributor acquisitions, they -- some of them have their own warehouse, we have to pay on top of that, we have to set up a 3PL. That all gets burden through into the gross margin. We're globally sourcing all these components, but then we assemble everything in Long Beach, flying stuff from China, assemble in Long Beach then fly or ship them back. So there's a lot of inefficiencies. And while Syndeo is a leap forward, we share the ASP definitely is increasing, but gross margin neutral at the moment, right? Because it's a brand new machine, we're having it in the start, scratch the surface in terms of value engineering. But suffice to say, there's a lot of upside to come. And with our network optimization, with the new local manufacturing closer to our customers and consumers, this is why we're really confident. There's a lot of way to extracting margin. These are all the areas that we've mentioned earlier that we've been investing in. But with that, you will starting to see ocean freight combined with airfreight. There's definitely that economic of scale. I'm sure all of you have heard too, there's already starting trends, both the airfreight and the ocean freight trends are coming down. localized manufacturing would really benefit us with the 3PL and especially with the streamlined efficiency on sourcing. Now with the system, we can actually talk about efficiencies because I have to actually keep on reminding everyone, this is such a growth business. We're literally building the plane and flying it at the same time. So this is why there's going to be plenty of efficiencies to come. There's no reason why not all vertical eventually, right, in terms of consumable production. Right now, we just graduated from a single source to multisource consumable TTM model. How do we think about G&A steady state? So we're trying to normalize the number because truly, how we measure our own business success is free cash flow to some degrees. So we always look at the EBITDA. So when you look at G&A, these are the numbers you can see we go from a private equity run business, adding on investment to be a public company, really adding scale around the globe. But for the past 3 quarters, it's sort of when you take away the onetime cost, you take away the noncash stock compensation cost, you take away, depreciation and amortization, it's been trending around $15 million, $16 million a quarter. So this is why we feel so comfortable, we're really going to start to see that leverage come through. Right now, we have a very nascent commercial presence, and we're just starting to roll out ERP, right? And as I mentioned before, we purchased that distributor. There's a lot of things that we invested in tax planning, transfer pricing study, putting in all the systems to be a public company renting these locations. Future state, we're already almost there. We're going to have a fully scaled global back office, right, so that we can sustain future growth, and it's going to be a shared service model as a global player. We're also now going to have a full commercial presence to really develop and penetrate in our 16 markets. Some of these direct market are very, very early as Mingo had shared earlier. Now Golden Triangle. So this is the way for us to show sort of the seasonality we talked about earlier. Even when you look at '19, you can see heavy investment upfront, lower revenue, right? So it's higher in the first half of the year and starting to come down with the 2021, that's when we start to reduce investment because of COVID, really the percent we spent is lower, and then it builds up for the second half of the year because we invested in marketing anyways. We were giving an example in terms of GLOWvolution with the [indiscernible] stop and then we're getting to be much more optimized this time around the first half of the year. But the bigger point here is really, when we say it's investment years, we really do mean there's a lot of these selling and marketing, Golden Triangle build hiring country managers, hiring sales team, higher marketing team, right. There are people cost and infrastructure costs, you don't even see the revenue flow through yet. We're just building the base as we speak. So today, of course, we know it's 8% aided brand awareness. And this is why you're seeing that outside investment in the beginning of this year and showing you where are these big dollar Golden Triangle investment go into, right? Launching Syndeo was a big deal. That was the outsized investment. We always have our SD [indiscernible] meeting with our customer base and these GLOWvolutions. They all happened in the first half, suffice to say we get really benefit from all that leads generated converting into sales for the second half. We continue to make these investments. One of the things I'll emphasize, when I talk about hiring these folks, there's $20 million more investment on this international selling and marketing line alone, just based on hiring these people building the infrastructure compared to the previous year. And future state, once we have put all the optimization play in with a localized infrastructure across the board, especially with the mix shifting more to the higher profitability consumable business and as we optimize our sales cycle and really our lead generation time among Golden Triangle across the world, we're going to see a lot of that to come through. So to recap, 2x sales, 3x at a minimum for EBITDA as our 3-year plan. If you take away anything from today's conversation, we talked about successful track record, but I want to emphasize the fact that we are a growth company, so we always talk about progress over perfection. In this case, we're iterative process. We're learning and testing and that's part of our muscle. We have substantial growth ahead of us, and this is a significant profitable potential as a business. So with that, I'll invite Andrew back to give closing remarks.

Please welcome to the stage The Beauty Health Chief Financial Officer, Liyuan Woo.

Could be as dynamic as Liyuan, amazing job. But on a serious note, the morning is drawing to a close, and shortly, we'll break for Q&A and then lunch for those of you here. But I hope you've enjoyed all of the presentations today and walk away with a greater understanding of our business and the enormous opportunity ahead of us. So some from the day we couldn't be more excited about the future prospects of the Beauty Health business. Brent and the Board, the Executive Group Committee and all of the teams back in the office are actioning our purpose and vision every day. And we are truly in this to win. You've heard a lot this morning, a lot of new information from the team, but I guess there's 3 points that I want you to take away. Just a reminder that first, we are a category creator probably many -- very different from many of the other businesses you coverage, and that's why we wanted to take you on that journey in detail this morning, so you can truly understand the business and the opportunity ahead. We have a differentiated product offering, business model and that unique community, that secret sauce. Second, we are driving profitable growth across categories and geographies and a huge and growing and resilient TAM. And as we're saying we're just getting started seeing those numbers from international is such a big opportunity ahead. And then finally, you saw firsthand how innovative our technology platform is and how powerful that fly wheel is and how it fuels our growth. So in conclusion, we expect the execution of our master plan to generate a virtuous cycle of long-term growth and profitability. Thank you. And I'm now going to invite the presenters back on stage, and we'll have a Q&A, happily take your questions.

[Operator Instructions] So Linda, I think, ladies first.

It's Linda Bolton-Weiser with the D.A. Davidson. Great job. Thanks for all the detail, Liyuan, and all the numbers and everything. So maybe I guess just start with the Syndeo launch internationally next year. Just in a very general sense. I know you've been working on building outsourced production. I know you've talked about China. Can you talk about if there's going to be production too in Europe and just kind of talk about that? And then related to that, we saw a little temporary dip in gross margin due to the trade up related to the launch. So I assume we will see that in the rest of the world as well. So can you just talk about your confidence in getting to that margin profile next year even with that launch and what that means for the numbers?

Linda, thanks for the question. And of course, straight out of the gate, I can say that with the guidance we've given for next year, we've of course factored that in. I think I'll start and then hand over to Liyuan. Of course, it's been a tremendous success the launch of Syndeo here in the U.S., both the initial launch and the ongoing trade ups, and we still have a multiyear journey to complete that as Doug very clearly articulated. But excitement is growing. I think sometime early 2023, we won't put an exact date on it. We plan to launch internationally. of course, as Liyuan will go into more detail, but of course, in parallel, we've been working on that in-region manufacturing and starting, of course, in Asia, given the geographic distance of that market, and it makes so much sense, given so many of our initial components today are sourced from Asia, and then, of course, we as Liyuan so particularly explained, we fly them into long beach, assemble and then fly them all back again. It's bad for the business and is bad for the planet. So that's obviously the first thing I want to address. So very excited about that. Anything to add?

Yes. Thank you, Linda. To address your question, manufacturing localized plan is for Asia. And we already have a 3PL setup EMEA. The eventual goal, obviously, is to trying to get the production closer, and we really are looking at both of the consumable and the deliveries systems side of the equation. When it comes to the margin, we've learned a lot, you heard from Doug and Mingo. The fact that we launched with the promotion running for right? And the fact that you guys know we sold over 1,000 systems ship in the second quarter. But then we sold over 600 systems again without the promotion. We're actually learning a lot, like there's no slowdown in international market. There's definitely more of a surgical way of approach. And we will always take care of our customer. But all that learning and the fact that we're just starting the journey when it comes to value engineering, make us feel very comfortable in terms of the guidance we have provided.

Thank you. Oliver.

I thank you very much Oliver Chen, Cowen and company. And we're out with a consumerization of wellness report with 50 page report this morning featuring at Beauty Health. So thanks for the detail. As we think about other opportunities such as Hair, which is a big addressable market in the rest of the body, what should we know about the building blocks there? And then as we think about the margins, marketing as a percentage of sales, marketing as a huge opportunity, how might that change? And if you could give us more details on value engineering as well.

Great question. We have this -- to address your first question. We have this incredible product called Keravive. It's clinical results. I missed the boat sadly of course but deliver thicker, fuller hair, and we launched it just before the pandemic. I can say, Oliver, Where we have got distribution, particularly in those derm offices, it performs extremely well. The hydraFacial delivers the service by unplugging the hair capillaries, et cetera, and then it's a 3-step treatment using a take 1 product over 3 months. It's a tremendous product. I think we will come back and relaunch that at some stage because since then coming out of Pandemic, of course, as a team, we've been focused on flawless launch of Syndeo. But I think -- I'm sure it's in your report that the growing global trend of scalp's care, the signification of scalp is an absolutely huge opportunity for us where we want to play and play to win. So more to come on that. And Liyuan, why don't you handle the second part?

Oliver. I'll let Ben talk about marketing, and then I'll finish off with the numbers.

You want me to start?

Yes.

Great. So on the marketing side, Oliver, thank you, Scott and I were just talking about this at the break. Probably the most important question we ask and you ask about marketing is how to scale because we're mean and hungry. We don't have hundreds of millions of dollars to invest in building the brand awareness. So how do we bend the curve, do something different? And the short answer is we pursue a very unconventional marketing strategy. And you heard me talk a little bit about it today. The long answer is we're really guided by 3 pillars. The first is B2B, we'll always lean to our B2B capability and marketing. We've proven time and time again. This is old, our blueprint around Trade show events, digital is incredibly effective at building a lead funnel for Doug and Mingo and John and Stephanie. So that's the base of the pyramid. Number two, when we turn towards consumer, we'll still lean into the providers. That's what I was talking about. We have the capability to teach them to fish in social media, traffic driving frequency, subscriptions driving new clients into their practice, and that's incredibly cost effective for us through our Golden Triangle and our training program, specifically. And then lastly, the most nascent for us barely left the Locker Room is our direct-to-consumer effort to build our own file, even there will be really surgical guided by 2 principles: one, which I shared with Scott at the break, we're incredibly focused on a particular type of consumer in a particular location. We've done years of homework to figure out who that consumer is, where they live and how to reach them. So while we're democratic and our solution works for all skin types, we're not shot gunning to find every consumer in the world who has skin. And then the second piece I talked about is the pyramid of influence. I can't stress enough the way we look at earned media value, we're very blessed to get a lot of it for free for low or no cost as part of the hydraFacial nation, whether that's content, tweets, posts, engagements, I showed you one example today that was just a of 100's, very effective for us. So we have a very lean way of thinking about it, and that will continue forward as our unconventional approach to marketing and in terms of driving brand awareness. The last quick thing I'll say, from a more mathematical perspective is what excites me about tackling LTV is because this is such a recurring revenue model. Once we've got them, they come 5, 6 times, maybe even monthly, which we recommend, we can amortize that tack across a really healthy LTV over time. that's different than any business I've ever worked in and powerful for us so that we can do more with less in the marketing dollars we have.

Yes. Oliver, this is why we feel really confident we will see that leverage, right? Because we have to kind of buy the base even our revenue size. And the way we look at the golden triangle, it is truly blended when you look at how much are you investing sales? Because remember, the nurturer's actually do a lot of the drive on utilization as well. It builds into marketing because the trainer and the nurturer's both teach them publish that's why we're truly looking at that holistically to bend the curve. So with that said, as we grow now, we've already hired all the people around the globe, you will naturally see that leverage to come through.

Korinne Wolfmeyer from Piper Sandler. Thanks for having us all here today. So first, I want to ask on the boosters that you're launching. One, what is the cadence of boosters that we should expect you to launch over maybe the coming years? And then what percent of treatments currently use a booster versus treatments without a booster? And then just on the loyalty program, I'd love to hear just any color on how that will be structured, will it be global, will you share those costs of the providers? Any detail would be helpful.

Thank you, Chris. I'll ask Jwala to kick off and then I'll hand over to Ben to talk loyalty. Over to you.

Okay. Great. Thank you for the question. So -- we are being very opportunistic in how we launch our boosters. When we have something new exciting different, that then will take and launch them out each one at the moment and also be responsive to our customers when they really are excited about a new novel technology or ingredient. And we'll space them out so that we're not bombarding it and not too much longer in between, but we're not holding ourselves to an absolute minimum of x amount each quarter or month.

Then for loyalty, we're very excited about consumer loyalty. It's extremely early for us. So I don't have details for you yet. But what I can tell you is we've just recently revamped our provider loyalty program, which again, consistent with our DNA of co-creation, we did extensive survey work with them to figure out what kind of loyalty program would work best for them. We've dramatically enhanced that relaunched it and the early results are tremendous. For consumer loyalty, it is an interesting challenge for us because, as I mentioned in my remarks, we want it to work synergistically with Syndeo. So it's one user experience between consumer through the loyalty, through the app on your phone and all the way into the treatment with Syndeo., So you can expect us to build it, sure, you'll see a loyalty program around points and rewards and incentives and gamification, but it also needs to nest in that broader platform and ecosystem through Syndeo. That will give the consumer a full journey experience. And for us, it will close the attribution loop so that we can uncharacteristically see all the way through to the treatment you completed. That's why we're not in market yet. We have some work to do, but we're really excited to launch that next year.

I know there's other questions. I just want to take one if we may, from the team on the virtually.

This question is from the live stream. Inorganic growth has been a consistent element discussed and the fifth pillar of your strategy. Does 2025 sales guidance contemplate any inorganic growth? Or is it purely organic? Would you be willing to defer or delay margin goals for the right deal if dilutive initially to margins?

Yes. I mean, of course, the guidance we've given today everyone specifically clear, of course, is the existing business, the organic growth and doubling our net revenue, tripling our adjusted EBITDA with that first year of 23% adjusted EBITDA in the 18% to 20% range. We can come on to talk about M&A later. But of course, we do see strategic M&A as a facet of our growth, but it's outside of the guidance given today, and we have a strict criteria, I think we shared on previous calls how we approach M&A. We've been extremely prudent and disciplined in how we approach it. And we had very strict criteria. We want to potentially acquire something to build up our Beauty Health platform, which is as a high Net-Promoter Score, not a fad, which is high-growth, accretive top and bottom line and very importantly, complementary, as you've heard from all of the teams say complementary to that existing core point with the institution, something which they can add to the bundle and deliver leverage. So that's how we're approaching it. We'll take one in the room. Thank you.

Maggie Boeye from William Blair. Thanks for having us today. So one of the things that you included within your top line guide was the assumption that consumables will make up greater than 50% of your total sales. So can you talk about over the next 3 years, how you're going to balance focusing on utilization as well as continuing to play systems, particularly with the international launch upcoming.

Absolutely, Maggie. As you saw, our #1 initiative is truly profitable [indiscernible] , right? And the fact that we have such effective hunter team around the globe, laying down systems, given how nascent we are against our TAM, it's absolutely important. At the same time, though, you have seen we have all of these strategies and tactics put in place to drive that utilization in consumables. This is the reason as the base grows, we would assume more utilization will come to fruition as well. So we are assuming a very gradual flip in terms of the consumable equation to our delivery systems.

Thank you. We have one, Kyle. I can't see.

Kyle Rose, Canaccord. I guess I'm going to be a troublemaker and ask about near term. I appreciate the long-term commentary, but there's a lot of uncertainty regarding the health of the consumer. So just maybe kind of help us understand how you build in some of that uncertainty in the both near term and the long-term plan. And then second question is just from a margin perspective. I appreciate the 2023 commentary, but you've got a pretty wide gap when we think about the bridge from '23 to '24, '25. So how should we think about that margin flow through? Is it ratable? And any granularity you can give us as far as G&A versus gross margin leverage? They're giving us about 1,000 basis points spread depending on you becoming on the higher low end there?

Kyle, thank you. As always, A lot in there from you. But I will start and kick off. I mean, first of all, I'm not going to talk too much about 2022 because we discussed that a few weeks ago at the last inning call and we'll give you an update in November. But clearly, as a team and with Brandon, the Board, we're absolutely committed to delivering on the guidance we've given. And I think Liyuan really well articulated the way we've -- with the guidance we've given for the rest of the year balance for the gradual opening up, which China is really is where we've seen and as you saw from the detail, which Liyuan just presented is where we have seen the slowdown because it's just been locked down. And it really depends on how that opens up, if it opens up faster, then we could anticipate, of course, upside. But I'll discuss more on that in November. And perhaps Liyuan to comment on some of the margin questions which you presented.

Absolutely. So in terms of how we think through our model in guidance, we've always been kind of promised where we deliver, deliver what we promised, and we've been very thoughtful in terms of assuming that gradual ramp-up, right? So when it comes to considering the market, we continue to see that gradual opening. But when it comes to gross margin, though, because we've been actively working on network optimization and local manufacturing. Some of those profitability, we should be starting to seeing that more immediately. And you've seen the profile for G&A., it's going to continue to be stabilized. So the more we sell, the better leverage will flow through. I think the key is how do we play with the Golden Triangle, right? And this is why, again, we're sort of show those batted lines because if the international market come back really strong and the pandemic stops, we will continue to feed the beast really encourage the top line growth. But we're very good at optimizing. We continue to be very maniacal when it comes to how do we find that optimization point. So it's a gradual feeling.

I think just one more bill because I expect to some of the teams you cover consumer during the break. This is a very different model than the previous consumer companies I work for much many of you cover. This isn't a very big high advertising plus 20%, 25% pure media spend model with big locked-in deals for the year. It's extremely agile. And a lot of our investment is in that training and education, which delivers that really compelling ROI. The media is very digital, we can wrap it on or dial up or down to balance our risk and opportunity. So a very different model. We are a unique business in terms of a categoriator, and it's really key to understand the flexibility we have built in. Question at the back, we'll take one from the back. Then come back.

Jon Block with Stifel. Maybe just first, I feel like i spent half my life talking about utilization. So feedback on those early Syndeo accounts, they've had the box arguably for roughly 6 months now. What do you see in those accounts in regards to utilization? Is there a notable step function higher, let's call it, any color you can provide? And then, Ed, you just have on the consumable pricing. I think you guys took price in May but it's an inflationary environment, I've got companies that have taken multiple price increases throughout this year. Maybe just talk about the long-term opportunity there? I mean, how do you see that unfolding for the rest of the year in coming years.

Right. John, 2 great questions. Thanks for highlighting -- so in terms -- I'll answer the second one first. This company historically, Peter and I joined, has annually taking price increases. It's a muscle. We have that pricing power, which we've always passed on with our partners. And you're absolutely like with the launch of Syndeo and the new bottles, which we launch, which, of course, can only be used in the machine, they have the security Twist-off caps. We launched those and then put through the single-digit, high single-digit price increases. I think we're going to -- and we feel good about that. And they've been implemented and the business is thriving. I think we are staying close to that, we're obviously conscious of inflation. We'll also, as Liyuan, so well articulated, looking at so many other areas where there's so much margin optimization ahead of us to balance that need because we want to be accessible. We want to be affordable and Democratic. So we'll watch it closely and not rolling out future price increases, but there's a lot of margin optimization. And then for the first question, yes, it's been, what, 4 or 5 months since we launched Syndeo . Of course, we've got over 2,200 systems placed in the U.S. And of course, we're learning, we're learning to be data scientists and building up that muscle and capability internally, and that's an ongoing journey. And we are getting data. I think the reason we didn't share it today, John, it's probably what I mentioned somebody on the call the other week is that we co-created Syndeo with many of our providers and those are super engaged. So they are, of course, the ones use ben's example, queued up like the iPhone to get the new model. So there is an inherent bias in those first couple of thousand we sold. They're our super users. They love to live reads in Syndeo. So yes, we have seen, I would say, encouraging utilization signs from that. But it would not be prudent of me to share that because I feel it's too early because there cannot be generalizations for the whole world or every single channel based on what we've seen so far, given it's that first couple of thousand. I think gives us a bit more time and as we committed to when we launch Syndeo in the future, we're going to start sharing that data. I think it's going to be a great metric for us all to review together. But that's why we didn't share. We've got to take one at the back and then we'll take one at the front and one, a couple more online.

Marie Driscoll, Coresight Research. Thank you, Andrew, and thank you, everyone, for such an insightful articulate presentation. My question is on the 8% aided awareness and how you can grow that where that is? Is it regional? Is it mostly the United States? And then on collaboration, so exciting with JLo, how do you think about collaborations going forward?

Thanks, Marie, and thanks for coming. I think Ben will kick that off. And then I think Jwala is great to talk about the collaborations.

Sure. Great. Thank you, Andrew. At the risk of repeating a bit of it, I'll start with saying, for me, it's all about how do we bend the curve because we have to be really lean with our marketing investment and we're very nontraditional in the way we deploy the capital. So again, as I said, we start with the B2B, we really lean into our providers. This is to teach them to fish, selling picks the gold miners. We've spoken about today that the dramatic increases between 25% and 50% in consumable sales come for the providers when they've attended. So just as we say for the consumer, you have to get it to get it. When I say at trainings, you got to get it to get it. We know the playbook. If you, the provider, follow the playbook you will be able to unlock the brand awareness to drive traffic, and we'll be able to do that in a very capital efficient way. And then as I said, last and mostly in our direct-to-consumer around brand awareness. The reason my presentation was brand-love is we've been able to capitalize on that brand love in a free to no-cost way across that portfolio of influencers so that we can unlock major brand awareness without the kind of traditional marketing campaigns that Andrew and I are used to in our prior careers.

And on the collaborations, we love doing collaborations. They're wonderfully productive, but we've built an amazing brand hydraFacial ourselves. So we're going to continue to disciplined. And when it makes sense with our business model, our economics, our base, our providers and consumers. And we think there's a win-win that's when we'll do a collaboration. If we speak to -- the 1 that we just did the Jennifer Lopez, yes, she has over 220 million Instagram followers. She has the glow as well, it made absolute sense. But also, she has a skin care line and she wanted some medical credentialing to improve her brand. And that's why she sought us out as well. So it has to make sense for both parties. We are not going to do it just to do it.

Thank you. Amy, we'll take one for the front and then one online. Thank you.

Allen Gong from JPMorgan. I just had another question on guidance. I think we're all really encouraged to see the range of 20% to 27%. That CAGR is definitely a step above what people were expecting getting into the day, but it is a pretty wide range, I would say. So I was just hoping to get some color from you guys on what's really the base case for getting to the bottom end of the range to the top end of that range. And when we think about future opportunities like you had home device, which are basically not a part of revenues today, should we think of that as being upside to that range or elevate to the top end of that range?

Thanks, Allen. Yes. So as we said, I answer the last question first. It's organic growth, actually excluding the home device or any of the other M&A activities. So -- the other way to really think about how we think about the growth, we really wanted to see, as I said, a tale 2 cities. Depends on the reopening of the various geographies and how fast they grow, we wanted to be able to feed into the top line growth. So that's why -- the way we model it out and provided the guidance, we're kind of taking the dual approach taking the assumption of a more aggressive growth internationally and kind of more optimization on the American side or more on a blended basis. That's kind of how we come to the growth's trajectory.

Thank you. Amy, I think we'll take one online. Can you talk about the underlying gross margins of devices versus consumables, including the tip boosters in serums.

Absolutely. What we have shared with the market consistently is the fact that we're kind of a middle 70% adjusted gross margin business, there's probably about 10% difference between -- currently between that delevers system side versus the consumable side. But there's so much value engineering to go on both sides of creation. We're very confident that the gap could widen even, but both are going to go up.

Any more in the room, if not there's more online, so we have one at the front.

I'm Joyce from Back Capital. I guess like since Asia is such a key part of the growth and penetration story, how do consumers and also aesthetician clinic partners behave differently? Are there any different metrics on user retention, treatment frequency, provider profitability, machine utilization, satisfaction differences? And also because like North Asia is a very competitive market with -- large beauty market, but also a lot of like local innovators, Does focus on units and faster product innovation cycles potentially make our platform stickiness different from that of Europe and the U.S.? And what does that mean for ultimate realistic penetration in Asia versus other markets like U.S. and Europe?

Thank you, Maggie. Mingo, why don't you kick off.

That's a great question. I'll try to answer question there's quite a few questions in there but I'll give it a go. I think in terms of consumer demand is very, very similar. I think when comes to face, we talk about well-being, they're looking for same things. And also the excitement that we drive, the awareness that we have very similar across the board as well. In terms of margin for the providers, we have to write the same bandwidth as the global right now, I think it's very profitable for our providers. I think what we're seeing a lot of providers want to do is actually increase their treatment prices. Because everyone wants to have more revenue per minute, per hour, however they want to measure it, no question comes, how they do that. We believe that our Golden Triangle education part is really helping them park the rhythm, how do they charge more, how to make collect more on the consumer really provider in 3 things. Number one, additional new consumers coming through; second, keeping the current consumers with the stickiness of it. And third, every time they come back, how do they spend more? So I think hydraFacial and beauty health, our value proposition fit all 3 very nicely. So we don't see a huge difference between Asia and the rest of world.

And if I can just build, I mean, Liyuan and I were the team have just got back from an extended tour of Asia spending kind of significant time in career, which is such an important market. In North Asia or cross-sales, we're already a brand [ maggi. ] There's a lot of local competition. And I don't know this market extremely well from living in most of them. But we are already a brand, especially in super geographies where we've smartly focused with the super consumer, and we're delivering. So we have a brand. We deliver more margin but the secret and what we haven't really scratched the surface on and was partly due to our visit there is we want to start using our boosters to make our formulas with more suitable to Asian consumer skin and scalp, having partnerships with North Asian local brands, which we have so much awareness. Again, really using their R&D to accelerate our own capability and further tailor it to the local consumer, which no other brand or device and we've seen all of them by the way. can do. We're truly unique. So the town of Asia, we know this, I don't think we spoke about it enough today, but Asian consumers, you know they use less makeup and less fragrance than Western consumers. But the TAM for Scalp and Skincare is triple that, for example, in the U.S. So there is so much runway as we build the brand and we have the playbook, which we've developed in the U.S. and we adapt and translate that for APAC and EMEA. So that's why we're so confident in the opportunity. One on the line, thank you.

One more question from our live stream audience. Where is potentially the most distress being felt or to be felt in the business?

Sorry, repeat the question.

Where is the most distressing felt or will be felt in the business.

Where is the most distressing felt -- Okay. I mean in the short term, and I must say, at Mingo's team, I think the incredible Be-the-health team in China have lived through so much this year. Some of them couldn't leave their apartment block for over 70 days, couldn't even go out of the building. I think certainly, all of the thoughts of our team, and we were sending them food parcels, et cetera, to look after them. I think from a really human level, I answer that question, that's where the stress has been felt. And it's still very bumpy up and down for the team. in China. So really, frankly speaking, that's the stress. I think the second piece, and we haven't heard from our brilliant HR leader today, but we've hired 800 people, Kelly and the team have us in the last 12 months as Liyuan articulated. So as we're in hyper-growth mode and thoughtfully building the company, and bringing the people in, is making sure we're hiring the right talent with the agile mindset who really live and breathe the values which we have at Beauty Health. That's key, but that's been a stress in this environment. And we've been -- we have a great culture, a great team or a hybrid company asset light. There's a lot to like about especially if you're in sales and you're beating your targets. But absolutely, if you're in HR at the moment, you're quite stressed. Oliver, you have another one.

Oliver Chen, Cowen and Company. So a theme for us as well as Magic and Logic. One of the questions is patents. And what would you say are your defensible patents and also how you approach the innovation R&D process? Follow-up as men's is a great opportunity, and this is a process that doesn't hurt and works well. So thoughts there.

I mean we have, I think nearly 60 patents. And of course, within that magic one, that Vortex technology in some of the tips and Jwala can probably talk the whole afternoon about that detail. But that's obviously a competitive moat, which we have around our business. It's [indiscernible]. While you were so interested in this business when you were leading elegant. I think that's really critical and we continue to build on them. Our innovation doesn't stop. We're looking for new patents and new studies to keep the business going. So that is absolutely key. Second part of your question -- sorry, Brent. Can we have a microphone for brent, please.

For rent, Albert, just on your point besides to 60 patents. I think the most important intellectual property we own is the trademark. And so you have to -- in this business, the patterns are amazing, we won as many as deep patent portfolios as we possibly can. But that hydraFacial trademark is probably the most powerful and valuable intellectual property we own.

And I think a great point, Brent. Thank -- and I think thirdly, what I honestly think coming in relatively new to the business, which I should have said, it's not so much the patents. The brand and the trade mark is critical, but replicating that community, that relationship we have with the aesthetician, that love and loyalty, that advocacy is incredibly difficult to replicate. We've been doing it now for nearly 25 years. Whatever company tried to replicate, it's very difficult.

if you think about where I came from and the marquee product I used to run, that trademark is much more valuable than the patents. Not that we wouldn't want more patents or stronger patents, but that brand is an event for the procedure as hydraFacial is becoming for facial. And that is infinitely more valuable.

Absolutely. And then the second part of your question, men, huge and growing category globally, $85 billion. Of course, huge as well in Asia. We talked about the averages, which we saw for our business 30% or so men. In some markets, it's even higher. You can sell in Japan, it's very significant. Also in the U.K., U.S., a little bit behind, but growing rapidly, but it's all upside in our business, and you'll see us tailing our formulas and our marketing to reach more men, bring them in and convert them to the brand. Great. I think, Linda, you've got one more and then I think, Amy. It's the last question, Amy. First and last, Over to you.

So just with the ad home device that you're kind of looking on and you seem to be moving slowly with that. Can you just explain, when you talk about these partnerships with the providers and the aestheticians and all this, it seems to me a very big risk to bring an ad-home device. And it seems like it would be lower margin and very costly to market this to the retail environment. So why even risk it? I mean, why are you -- how committed are you, I guess, bringing in at-home device?

I mean some really great questions in there. And I think in part of the answer to your question is the reason we've taken our time is we've been extremely thoughtful. And we know we have something unique with that trademark of hydraFacial, which we would want to protect and only launch something which builds on it complements it as just as new better and different and differentiated. In saying that, just like -- I'll use a very basic energy to make my point that we all go to the dentist. We also use the electric toothbrush to top up in between trips and absolutely for that super consumer, and they ask it for it. They want something to keep them up, top them up between those monthly visits on their subscription. So we do feel there's a very big opportunity. We tested something glow and go. We've got a ton of learning from it. What we learned is we need something which is complementary, it needs to be beautiful, connected and building on hydraFacial what we have in a very complementary manner. And it's probably not absolutely the entire population, but that super consumer, by the way, they're large and growing, these advocates. We do feel there's an opportunity, but we will be thoughtful and take our time and come to the market when we feel confident with Brent on the Board that we have something which is going to win.

Yes. The only thing I'll add to that, Linda, I think we've shared this before as well, we always co-create with our providers. We will be getting input from them. And this is a connected system right? The whole idea we've had shared before as well. Syndeo is the brain. But along with the app and home device with all the connectivity, we can actually gamify and really provide new gen and gateway for our providers as well. So there's value to be had for the entire ecosystem.

Thank you. So I think on that, I will just -- I mean, first of all, thank the tremendous Beauty Health team. Thank you. And thank all of you for coming and being such a great engaged audience. I'll just say a big thank you. We're so excited about the plans. The presentation will, of course, be available online all the content so you can refer to it. You can also reach out to Eduardo from our team on IR, Liyuan or myself, if you have any questions thereafter. -- the meantime, please, those of you in the room, please join us for a bite to eat outside or enjoy a hydraFacial sign up for one out of future occasion, if you don't have time today. So big thank you, and see you soon.

That concludes today's presentation. Thank you for joining us for the 2022 Beauty Health Analyst and Investor Day.