AirSculpt Technologies (AIRS) – London Calling
AirSculpt Technologies (AIRS) is a provider of body contouring procedures using their proprietary AirSculpt method that “removes unwanted fat in a minimally invasive procedure.” In addition, the company has also introduced AirSculpt + and AirSculpt Smooth. AirSculpt + is a new procedure that permanently removes fat and tightens the skin with unparalleled precision and finesse. “Patients first target any area containing excess fat with AirSculpt, then have that same area treated with a new technology that instantly tightens skin and improves laxity.” Meanwhile, Airsculpt Smooth uses an advanced cellulite removal tool, which is FDA-cleared to target cellulite on the buttocks and thighs.
Yesterday, in JaguarLive, we highlighted unusual option activity in both the July 10 Call and October 11 Calls. Those October 11 Calls, for example, went from 210 open interest yesterday to 1,200 as shown in today’s First Read.
When this company reported earnings on May 12th, it reported EPS of $0.10 vs ($0.02) estimate and Revenue of $45.8M vs $42.96M estimate, while reaffirming FY23 Revenue Guidance. Total revenue increased 15.9% Y/Y while case volume came in at 3,640, an increase of 15.3% Y/Y.
When asked about the economy in the Q&A session, CEO Todd Magazine would respond by saying, “I would say, really, the two things that we look at is obviously demand and then our procedure rate. And obviously, what we saw in Q1 and what we’re carrying into Q2, we’re seeing very strong demand, and we’re seeing a procedure rate essentially right in the middle of the range that we expected. So from our perspective, we’re really not seeing any broader economic issues in our business. Demand continues to be strong. And there’s clearly a demand for our product and people are willing to pay the rates that ultimately we believe are appropriate for this business.”
It’s also evident that the company’s centers are a key element to the bull thesis. In the company’s 10-K filing from March, they pointed out how they had a nationwide footprint of 22 centers across 18 U.S. states and Canada. On the earnings call, the company said that it had just opened its new center in Orange County, California while their next opening will be in Austin, Texas. “We expect to receive our final occupancy permit shortly, enabling us to open in the month of May.” They were also very excited to announce that they received final approval to open their flagship center in London. “This timing is consistent with what we had planned. We have a full complement of physicians to staff the center, enabling us to perform training cases starting next week and paid cases starting in June.”
Executive Chairman Aaron Rollins would add, “So very, very bullish on the London office. In fact, I fly there next week to start our actual live training cases in London. And I can tell you that I’ve been there multiple times now for press interviews and plastic surgery is wildly popular in London. And what’s really interesting is that it’s the first market we’ve gone into where we have really no competitor. In fact, even the doctor is finding out that you can do what we do while patients lie awake was like science fiction to them. So our market research there has shown that we very well might get a higher ASP. We won’t know that until we start actually booking cases. But due to the pound conversion and the market in general, I mean we have such a captive market, and we don’t have the same competitive environment for leads and ads. So I couldn’t be more excited about the London office.”
