August 12, 2022 | 11:57 PM by Jay Kunstman | jkunstman@jaguaranalytics.com

Behind The Numbers – AirSculpt Technologies (AIRS)

AirSculpt Technologies (AIRS) is a fast-growing national provider of body contouring procedures that delivers a premium consumer experience under their brand Elite Body Sculpture. At Elite Body Sculpture, they provide custom body contouring using their proprietary AirSculpt method that removes unwanted fat in a minimally invasive procedure.

“Our proprietary and patented AirSculpt method is minimally invasive because it requires no needle, no scalpel, no stitches and no general anesthesia to achieve transformational change that appears both natural and smooth. Our patients are guided by surgeons, nurses and patient care consultants through every step of the experience.”

They also have a broad offering of fat removal procedures across treatment areas. They offer innovative fat transfer procedures that use the patient’s own fat cells to enhance the breasts, buttocks, hips or other areas and do not require silicone or foreign materials to be implanted. Their innovative body contouring procedures include the Power BBL , a Brazilian butt lift procedure, the Up a Cup , a breast enhancement procedure, and the Hip Flip , an hourglass contouring procedure. They deliver these procedures through a growing, nationwide footprint of 19 centers across 15 states as of March 10th. The centers, located in metropolitan and suburban areas, offer a premium patient experience and luxurious, spa-like atmosphere.

Shares exploded higher on Friday, finishing up 26%, following Q2 results:

– Q2 EPS of $0.01 vs $0.00 estimate – Beat
– Q2 Revenues of $49.7M vs $44.4M estimate – Beat
– Q2 EBITDA of $15.2M vs $14.8M estimate – Beat
– Q2 Revenue Growth +42% Y/Y
– Q2 Same Center Growth +20.4% Y/Y
– Q2 Case Volume of 3,691 vs 3,014 prior year, up +23% Y/Y
– Q2 Revenue Per Case of 13,453, +16% Y/Y
– FY22 Revenue Guidance reaffirmed at $177M
– FY22 EBITDA Guidance reaffirmed at $59M

Turning to the conference call, management said that during the quarter, they reached an exciting milestone, performing over 30,000 AirSculpt cases since their founding a decade ago. Switching to its centers, they highlighted that their center in Las Vegas opened in March of this year, and they opened their newest location in Boston during the month of July. They have now opened four centers in the past seven months. “We expect to open Philadelphia later in the third quarter. And we expect our first international site in Toronto to open later this year once we receive final government approvals.” They have also secured space in Austin, Texas, and Irvine, California, which will likely be the next domestic sites. These centers are anticipated to open in the first half of 2023.

Also, they commented on the health research study they are currently undertaking on the effects their procedures have on a patient’s metabolic parameters. “Recently, we submitted our study to the Institutional Review Board for approval. Once we receive final approval from the IRB, we will begin enrolling patients which we expect to occur later this year. And we will still anticipate having results for the study in 2023.”

Q&A Takeaways

Piper Sandler analyst Korinne Wolfmeyer would ask, “Is there any color you can provide on how you’re thinking about AirSculpt for the back half of the year?”

CFO Dennis Dean didn’t give much away, simply stating that Q2 was very strong, and they feel really good about where they are. CEO Aaron Rollins would add that they get patients from multiple income brackets, but their marketing strategy is geared toward the upper middle class and above, and they tend to be more resilient to challenging economic conditions.

Raymond James analyst John Ransom would first ask about visibility on bookings. Dennis Dean commented on how for bookings, they don’t have a significant backlog. In our procedure, one of the things that we really have focused on over the last eight to nine months, is really getting patients scheduled quicker. One of the things that gave us backlog historically was that a significant number of our centers were single procedure room centers, those legacy facilities that Dr. Rollins started with. And those centers were the ones where we had what we would have considered backlogs that we didn’t necessarily feel comfortable with.” But now that every one of those have been expanded, it allows the company to get patients treated really quickly, so they never expect a significant backlog now.

Finally, the analyst would ask about what the marketing and customer acquisition looks like six months to a year from now. Aaron Rollins would respond, As you know, we hired a chief marketing officer/branding officer in July, and we’re really excited about her. She’s hit the ground running. We’re down the road with two potential big celebrities. We’re working really hard at getting a PR that’s not celebrity focused. It’s based on what we do. And other forms of marketing that we’ll be launching soon.”

Password must meet the following requirements: