Welcome to the 2022 Beauty Health Analyst and Investor Day. Please welcome to the stage Beauty Health Executive Chairman, Brent Saunders. Good morning, everyone. Thank you for coming to our very first Investor and Analyst Day. Excited to be here. This is a long time in the making. It's been... Gosh, I was thinking about it this morning. I think it's been three or four years since I was in a big room on a stage talking to people. I used to do this, like, every week when I was running Allergan. 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. Thank you. I hope everyone is excited for, I think, what's gonna be a great day. I'm just gonna take a few minutes to set the stage, and then I'm gonna turn it over to Andrew, and the substance of the meeting will begin. What I was really thinking about this morning was, it's been two years since I really started talking about Vesper and HydraFacial, right? We did the IPO in September of 2020, so it's literally two years ago. 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? Two 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. This was the exact slide that I used in that presentation deck of what I wanted to look for. We obviously added the HydraFacial check marks after we announced the deal two months thereafter. 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 three year plan that you'll hear from Andrew and Liyuan and the team later about why we're so confident in it and why we think it's going to be something that we can not only achieve, but hopefully exceed over time. When you think about HydraFacial, our leading brand at The Beauty Health Company, 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. These are things, as I was running brands like BOTOX and JUVÉDERM 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. I became familiar with HydraFacial perhaps five 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, customer satisfaction. BOTOX always had the highest customer satisfaction of all the aesthetic beauty, interventional beauty applications. One 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 this thing called HydraFacial. To be fair, I didn't know what HydraFacial was. I called my team and I said, "What's this thing, HydraFacial? And why is it doing better than BOTOX?" They explained to me what it was. I actually went and tried one. I was like, "This is amazing." I said, "We have to own this." We went 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, "Nope, not for sale, not the right time. Come back to us in a couple of years." In fairness, we went out, and we bought this kind of second-rate thing called DiamondGlow. You know, we had always wished for buying HydraFacial. Two 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." 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. Probably more importantly, that I've learned about, it has this relationship with the aestheticians that is so important. They are like franchises of HydraFacial, right? They love this product. This is like the HydraFacial machine is the centerpiece of their business in many instances. 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. You'll hear more about it from the team. As we looked at that, it met all these criteria. I think two years later, if I had to do a review of what we said and where we are today, I think all these check marks still hold, and probably there are a few more we could add to make us even more excited about their future. The second thing, if we could go to the next slide, I said to you was that we would build a best-in-class management team. For many of you who remember when we were going through the dark period of the company, so that in jest, when I was running the interim CEO time, I told you we were out looking for a leader who had really important criteria. Don't have a slide on it, but I remember exactly what I said to all the investors and analysts at that time. I said, "We want someone with incredibly strong global marketing and product experience, right? Criterion number one. Criterion number two was strong global experience, because one of our biggest growth opportunities over the next few years is to expand globally. You know, I can't think of a better CEO, and I couldn't be happier seven months, it's about seven months, right, Andrew Stanleick? About seven months later that I can put two big check marks next to those criteria as well. We have an amazing leader who understands branding and product and our business now seven 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. I'm really, really excited about this team. I'm just looking at it, and I think with the exception of, I think Doc, Dan. Do people know that your name is Dan? Yes. I actually said they should change it 'cause we call him Doc. He's our Head of Sales who predates me. I've been involved in recruiting. Mingo, I guess you were here before me. They were before the two-year period ago. This team of both existing leaders and new leaders is best in class. I've had the privilege of working with a lot of really good people. This team is starting to really gel, come together. There's some new faces, there's some long-term employees, but I'm super excited as you think about this three-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. I'm gonna 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 Beauty Health President and CEO, Andrew Stanleick. Thank you, Brent. It's great to be at a meeting live in person. Well, firstly, good morning, everyone, and welcome to the Beauty Health Investor Day, indeed our first one. It's great to be with you finally in person here in New York, but, you know, 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. Also a lot of new information too 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. I'm Andrew Stanleick, President and CEO of The Beauty Health Company. As my accent reveals, I was born in the UK, but as Brent mentioned, I'm a truly global citizen. I've lived and worked in eight countries across four continents, including seven fabulous years working across Asia. I have more than 25 years experience, primarily in beauty and luxury retail with Unilever, L'Oréal 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. You know, I'm fortunate to have had so many proud moments and achievements in my career, but I got to say, my proudest is standing here today with the team as CEO of Beauty Health. I'm extremely optimistic, confident, and eager to capture, as you'll see today, the significant growth runway ahead of Beauty Health as we continue to disrupt the industry and build out our platform. As we look to today, we had sort of three key objectives for today's presentation. Firstly, we're gonna present our five-point master plan and provide new insights into our business and market opportunity. Second, I'm very excited to introduce our three-year plan for strategic growth. 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. Finally, third objective, this is a moment for all of you to meet our really talented Beauty Health executive committee, who will share more in detail about how we're capitalizing on this big, immense opportunity ahead of us. Here we have today's agenda. I mean, the Investor Day will unfold across sort of five 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. For those of you in the room, you can see here on the right, you can sign up with one of our amazing aestheticians 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. Let me be clear, you're gonna see a lot of new information about Beauty Health today. There's sort of three 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. Today, we're gonna show you how unique our platform is. 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 gonna take you through in real detail. Indeed, this is demonstrated by our three-year plan, as I said, our new commitment to double our sales. In fact, it'll be starting in 2023 when we commit to deliver Adjusted EBITDA next year in the range of 18%-20%. The third takeaway, you'll learn about the power of our innovative technology and its place at the center of a flywheel that drives our growth. While some of you are very familiar with Beauty Health's business model, others I know from discussions are just discovering it. For those new to our story, you know, let me answer the most fundamental question, who is Beauty Health? Well, let me tell you. Beauty Health is a visionary. It's a category creator. We see things and make it through fully in areas before unseen. We operate at this really fascinating intersection of beauty, aesthetics, wellness, and health. You know, at the very nexus section of these very large and growing and converging, and I would add also resilient categories. Indeed, Beauty Health, aesthetics, wellness, and health are the compass points of our business, and together they form, you know, our guiding star. Equally, you'll see we are defined by our omni-channel presence and unique ability to meet consumers wherever they live, work, and play, whether today in a dermatologist, spa, or retail environment, or in the future, at home. Lastly, we are defined by what we make, innovative, efficacious, confidence-boosting, and amazing experiences. Beauty Health is truly this bright star set apart from the rest. 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. 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. We have worked with purpose to build a business to help people just do that. Our vision is to become the world's leading beauty health and wellness platform, fueled by this community of engaged providers, aestheticians, and consumers. To kick off, let's talk about our business as it stands today. 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-$350 million in net sales this year, representing more than 30% growth versus last year. 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. 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. I remind you, this profit is alongside the significant investments which we've made last year and this year in our business. With more than $800 million of cash on the balance sheet, we are well capitalized to capture the organic growth of 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 provider who've been trained and educated by Beauty Health. 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. Today, while we're dominant in the Americas, we are seeing rapid gross growth across APAC and EMEA. Over our three-year trajectory, we expect international market growth to accelerate to account for about 50% of our sales 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 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 wellness. 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, you know, 500,000 doors. Remarkably, these numbers represent locations, not individual machine replacements, because many of you know today, 12% of our locations operate multiple systems. As example, we often quote in the hospitality channel, of course, is in Las Vegas, Caesars Palace. One casino has 18 delivery systems. Setting our eyes on the horizon, we see the global skin and hair care category here on the right of the slide. You know, today they are together worth more than $250 billion and are projected to grow by 5% and 3% respectively by 2025. You know, there is so much greenfield, and our goal, of course, is to capture it all. As a team, we've only just started. 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 term. It's really fascinating. When we look at the operating environment today, we see macro trends shifting very much in Beauty Health'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. 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. 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 we're all eager to look the very best we can, and hybrid work is here to stay, and of course, this is fueling our growth. Bolstering these tailwinds is the robust and resilient consumer demand inherent in the beauty category at large. You know, 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 turmoil, 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. With HydraFacial, we give them that confidence to face life face first, no matter what life throws at them. With HydraFacial, we have this all-weather consumer loyalty and resilience. 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 disposable income, and it is historically less impacted by economic downturns. We attract a younger consumer, on average in their thirties, positioning us well to cultivate long-term customer value. Today, over 20% of our consumers are male, 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 $81 million by 2024. We attract a very diverse consumer base, reflecting the fact that HydraFacial is for every skin type and tone, and we over-index among the Latinx population, a segment of the US population that is younger and growing faster than others, and that spends per capita more on beauty than their counterparts. As you might expect, the community of skincare professionals is booming to meet this explosive consumer demand. Indeed, just in the US, skincare specialist jobs are projected to grow nearly 30% by 2030, outpacing all other sectors. Today, we are proud to be the number one educator of aestheticians 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. 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. I will let the love of our consumers, providers, and aestheticians, what we've referred to as the HydraFacial Nation, speak for itself. If you could please, roll the video. Live your life within the moment. Don't go waiting till the morning. You'll never know when it is over. All that I know is take it or die, healthy or die. Let us dance the night away. There are facials, and then there's HydraFacial, a non-invasive three-step treatment that transforms skin and changes lives. It's an experience that's as rewarding as the results. It's a glow that you not only see on the outside, but feel on the inside. Get the best skin of your life. HydraFacial. Our bodies move to the groove and the lights are flickering. We get lost in the crowd, it's getting thicker. Get away, get away from the things that shatter. Had a sad word, but it doesn't matter. Thank you. I love that video. HydraFacial, as you see, is truly an incredible brand with an unmatched fan base, and it is the heart of Beauty Health. While Beauty Health has only been public for, what, six 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. Years of technological innovation led to the industry's first patented microdermabrasion machine, and ultimately to the category creating hydrodermabrasion device in 2005. We have a rich history of science and innovation that powers HydraFacial today. Last March, we launched our latest 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. The HydraFacial signature three-step treatment cleanses, extracts, and hydrates, delivering incredible results in every step. You hear more later from Jwala on the magic and science behind our treatment. For me, what is most impressive is the experience and the results. A HydraFacial is non-invasive, 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. Very importantly, HydraFacial is accessibly priced, with the express treatment starting at just $150. Certainly an affordable luxury and aligned with our vision to democratize the Beauty Health category. Our innovative and differentiated HydraFacial treatment starts our powerful growth flywheel. 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 alike to track treatments and preferences. This carries with it the promise of becoming an unmatched global database of skincare treatment data, which will be very powerful. The treatment and technology of HydraFacial is made stronger when paired with our unique ecosystem of co-creators. 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 skincare. Now let's look at HydraFacial in real life, you know, the economics. The economics are highly favorable for both Beauty Health and for the providers who use our machines. For Beauty Health, 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 their practice, and it serves as an anchor treatment, delivering a highly profitable 70%-80% margin per service. Last, but certainly not least, we are a confidence booster amongst our community of consumers and providers. It is our purpose after all, and it supports our belief that everyone deserves to feel good about themselves. And, you know, there's nothing more important. Taken together, we have created a powerful flywheel to sustain our growth, where our 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 community succeed in all market conditions. I want to just double-click and explore one area in a bit more detail. That is our boosters. 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 handpiece. The booster platform provides us the ultimate flexibility, both to offer consumers customized and personalized treatments, and to offer our ecosystem of co-creators new channels in which to build their brands. 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. By Q4, we will have three 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 one else is able to work with everyone the way we can with this platform device. 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 one 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 six months, enabling us to rapidly react to consumer trends. As you are all aware, this is a fraction of the time and investment required to develop an entire skincare range. 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 Beauty Health's ability to stay on the cutting edge of skincare through smart R&D, and Dr. Jwala Karnik will touch more on this later in the presentation. Now I've grounded 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 break even. 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. Once a provider exhausts 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. 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. To do this, we will follow our five-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 install base in every region via 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. As you can see, we are under-penetrated in every region. Globally, we're just in 5% of the doors, so there is so much room to grow. Our strategy is truly omni-channel, 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. 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 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 are a true differentiator. No one else invests in the esthetician 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. Estheticians who receive the training typically show double-digit growth in consumable purchases, and their second HydraFacial system sales happen 50% faster than the average. Today, we have trained more than 35,000 estheticians globally, in person and virtually. With core trainings happening at our HydraFacial experience centers all around the world. 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're investing in providers by building community at the top global trade shows. Here we are in Las Vegas, Düsseldorf, Paris, San Diego, Monaco, and I must say, our presence at these shows is truly the best. Perhaps the biggest contributor to HydraFacial's 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 treatments can act as an anchor service for a provider to build a 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. 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. Though if we have it our way, it won't be for much longer. We are building brand awareness for HydraFacial through investments in marketing. 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 investment in high-touch experiential events such as the GLOWvolution Tour. 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 key opinion leaders, providing great credibility, trust, and authority to consumers with their recommendations. Next are aestheticians and skinfluencers. These middle brands on the pyramid represent the bulk of our conversations and engagement. Their word of mouth is a powerful channel to drive trial. Grounding the pyramid, of course, are celebrities. With their wide reach, they offer. They truly spike brand awareness among the followers any time they mention or post on HydraFacial. We announced our first celebrity partnership this spring as we joined with Jennifer Lopez's JLo Beauty to create our first celebrity booster. 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. Look, don't take my word for it. Let's hear it from the creator herself. Please, can you roll the video? Hi, Beauty Health. I'm excited about our partnership, bringing my best-selling JLo Beauty hero product, that JLo Glow Serum, together with your amazing HydraFacial. Thank you to everyone from the team who worked so hard to bring the JLo Beauty booster to life, the sales, training, marketing, and regulatory. A special shout-out to the Bernette team who are packing and shipping each booster with care and making sure our JLo Glow gets to every esthetician out there. I appreciate your hustle. At JLo Beauty, we launch at number one, and we stay at number one. Let's do this HydraFacial. Indeed, Jennifer, let's do this. Moving to the fourth pillar of our master plan, we are building out our global infrastructure. This is key to capturing our growth ambitions, and you'll hear a lot more about this from Liyuan later. Innovation is key to building our global infrastructure. As you've seen, you know, we are innovators at our core, rooted in science and technology. 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. There are many other parts of the body that deserve our HydraFacial treatments. Neck, décolleté, 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 areas even easier and more productive. Keravive is an incredible clinically validated innovation in scalp and hair that leads to ier 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 10 times, 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. 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're 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 stands 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. 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. We're rolling out a vendor code of conduct to ensure 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 y ESG program. The fifth pillar of our strategic master 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 a high net promoter score, complementary to our existing platform and community, and importantly, leveraging the aesthetic core point. They have to be financially accretive by a compelling revenue growth and profitability. 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 gonna close a deal. However, we do not operate a predetermined timeline, for a transaction. Our philosophy is opportunistic rather than time-bound. Above all, we will be responsible and prudent stewards of capital. Now I want to turn our attention to the ambition of the next three years. I'm very pleased to introduce our new three-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-$700 million. We will at least triple our adjusted EBITDA by 2025, delivering a margin in the range of 25%-30%. Importantly, we expect to drive year-over-year profitability growing each year starting in 2023, with an adjusted EBITDA margin of 18%-20% in 2023. 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. 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. 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. Thank you for listening. You'll now hear from many more of our talented leaders across the business who are driving forward our vision and walk you through our plans in more detail. With that, I will pass over to Ben. Thank you. Please welcome to the stage Beauty Health Chief Experience Officer, Ben Baum. Good morning. Thank you all for coming, and thank you, Andrew. As you can tell, Andrew's been very busy here in his first seven 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 Beauty Health Company, and it's my first time meeting most of you. As a quick introduction, I have over two decades of experience in apparel, omni-channel, retail, and technology for brands like Target, Google, Torrid, eBay, Tailorb rands, 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. Given our very limited brand awareness in 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. 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. 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's a little bit better place. We help deliver your best you. Having a HydraFacial routine isn't life-saving, 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. You're proud of the extra investment you've made in your self-care, asserting a welcome degree of control over your skin, 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 our 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. 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 aesthetician and focus only on the doctors, owners, and managers of the practice. While we support myriad doctors, owners, and managers, the aesthetician 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-chair 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. 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 one of our single-chair aestheticians from Salt Lake City, Shana Parr. I am a master aesthetician, and I specialize in corrective and preventative skincare and confidence building. Confidence empowers us to handle whatever the day throws our way, and it's just nice when you feel confident and comfortable in your own skin. I'm definitely passionate about this. I got a great education. My knowledge is valuable, but it's only as good as the products that I'm using. HydraFacial is a big part of my business. I depend heavily on HydraFacial. I have HydraFacials every day. I know that I can achieve great results, dramatic results in a short amount of time. Once you achieve the results with the client, word of mouth, now I have people that not only come back and see me every month for their HydraFacial, but they bring their family in. The most rewarding part of my job is when I get to donate my time and I get to go and meet with people that are going through a rough time. Like it did for me, it's gonna help them face other things without always having like that little dark cloud hanging over your head of what you feel self-conscious about. After losing my husband, it really put me into the unknown. The life that I had planned no longer existed, and I had to scramble and come up with something new. I found a community that I love to work in. Every day is just, it's fun. You know, I'm actually really proud of me. I've found myself in a place in my life where I'm comfortable, my son is doing well, and I've got this career. Now I feel like I'm living the dream. If I helped one person be their best person that day, then that, you know, that's a very rewarding feeling for me. Thank you. A personal story. I had the honor of meeting Shana at our legendary Estie 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 joined HydraFacial. You know, 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 Shana talked about. We are one of the world's largest trainers and deployers of aesthetics talent. 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 non-existent. 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, Buy a laser. That one didn't hit. Sadly, for many aestheticians, it's typical to drop the device and disappear. For us, that is just the beginning of the relationship as we throw every resource at ensuring our customers and providers are successful along the full life cycle of their business. In the end, we know that all aestheticians and owners have the same three questions when considering a purchase for their practice. One, does it work? Yes. Number two, will I make money? God, yes. 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 turn-key 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 managers serving as the first touch point with providers, demonstrating the business opportunity HydraFacial presents to their business. The relationship is then 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 and training team sit at the base of the triangle, working in lockstep 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's shoes as aestheticians treating 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 refenced. I can attest to this firsthand as, much to the chagrin of my training team, I put myself through most of the curriculum that we offer. While I'm not sure it's best for me to don 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 we're 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 experience centers up and running in 13 cities globally, and now have virtual programming to expand our reach. Don't take my word for it. Let's hear from one of our most admired and expert HydraFacial trainers, my favorite, Carissa Sanchez, who will walk you through what makes our approach so unique. HFX is our premier training for HydraFacialists across the globe. We host several events every month at our experience centers, and we take the show on the road to better support our sales team. I've been in the beauty industry for 15+ years. There's no other company that supports beauty health professionals the way HydraFacial does. I love empowering fellow aestheticians to see their value, to feel seen, heard, and then take that back into their business. The HFX HydraFacial experience for me was amazing because it went into detail about the HydraFacial treatments, the serums. The HydraFacial Nation provides access to a community of like-minded aestheticians that want to see growth and support each other along the way, and that level of connection is truly priceless. Thank you, Carissa. I'm a little embarrassed to say then and now that Carissa always picks on me when I'm a student in her class, and I'm the model in the chair 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 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 three months following graduation, and four master graduates went on to open their own businesses themselves and purchase devices. Today, we offer 13 global HFX 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 1,300 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. Now that I've walked you through what HydraFacial brand love looks like and how it feels, how it benefits 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, Kristen Lind of ReGen Medical in Rhode Island, "HydraFacial has filled every missing piece in our medical spa. Not only did it attract new clientele, our retention rate grew to 92% after our first five 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 five-star treatment to consumers every time, which raises NPS and increases visit frequency. In this way, we at HydraFacial are better able to control, support, and optimize the end consumer experience through our aestheticians. Now I'll turn toward 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 thirties, 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. You know, 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 one today. In fact, 92% of our consumers tell us they wouldn't visit their esthetician of choice if they didn't carry HydraFacial. 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. 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 digital to 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-renowned 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. 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 and our golden triangle 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's Kirsten Titus, AKA pepperonimuffin Do you see this? This is all the gunk that was sucked out of my face. Sorry, I'm a little high energy right now because I just got the exact same facial as Hailey Bieber herself. It's called a HydraFacial, and what they do, they take this big old scary machine, and they literally vacuum all of, like, the dirt, oil, and makeup out of your face. Look at the results because tell me not, my face is glowing. That video garnered 7.8 million views. Would anyone like to guess how much we paid for that? Answer, $0. 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 three 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. 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 Beauty Health 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 asks they had for us. For example, hands-free operation with touch screen 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 move effortlessly between treatment stages. A lighted and magnified gunky jar to show the results easily to consumers. For those of you who've 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 Perk treatment for lip and 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 discreetly to the esthetician and invisible to the client, the esthetician becomes the trusted expert, providing all the skincare guidance to their clients in real time, whether to cross-sell or upsell to other treatments, modalities, parts of the body, or just simply to inform on ingredients, formulations, and solutions. You know, some of our delighted estheticians 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 estheticians, they sound like the experts to their clients every single time. For clients, we know that the number one driver of return visits and high frequency is engaging in education with their esthetician, and this ensures this happens every single time. For HydraFacial, as I've said before, we can guarantee a consistent five-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. At the start, Syndeo represents a game changer in ease of operation, design, and use for our estheticians. We created this patent-protected industry device with their direct feedback and input. 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 can 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 interests 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 estheticians 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 doors 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. You know, these are early days for The Beauty Health 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. 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 Beauty Health team. Thank you. Now let me turn it over to my esteemed colleague, Dr. Jwala Karnik, who will take you beyond the glow to a discussion of how our remarkable delivery system works. Thank you. Please welcome to the stage The Beauty Health Company Executive Vice President of Global Strategy and Partnerships, Dr. Jwala Karnik. Hi, everybody. I just wanna say two things up front. Don't worry, there's a break after my talk. Why does marketing always get the cool videos? It's all right. 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 and Partnerships at Beauty Health. 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. I began working at HydraFacial way back in 2017 in an advisory capacity, and then I joined Beauty Health full-time in 2021. While HydraFacial is known for its 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. Today, I'd like to take the opportunity to put on my metaphorical white coat and speak to you about skin, the science behind how we impart that glow, and how it's informing our strategy. Oh, yes, the stains of the pathology slide. In order to appreciate how HydraFacial works, we have to understand how our body's largest organism, the skin, the largest organ regenerates and protects. Our skin has three layers, the epidermis, the dermis, and underlying that is the hypodermis, all of which have different functions. I'm gonna focus today on the top two layers, the epidermis and the dermis. The epidermis is the top one-third 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. 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. 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 two-thirds, 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 wanna deliver active skincare ingredients. To do that, we could completely efface the top layers to expose the dermis, such as is possible with lasers, but that has some downtime, expense, and it's just not appropriate for a regular skin maintenance regimen. 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. 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 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. You know, 20 years ago, we were the 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. In an aesthetic world that's littered with pops, 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 and joy every single time. 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. 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. We like to call it our magic wand because all of the technology that's housed in this handpiece is what imparts that iconic glow. We use up to six 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. Then the proprietary vortex technology pattern, that's 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 of 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. 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 and appearance. Not only is the wand key to getting great results, it's also our competitive moat and is a source of differentiation for us. You can think of it as a Keurig machine, our wand, that dispenses any skincare ingredient and brands that you wish. We've already partnered with leading skincare brands to bring their differentiated technology to our platform. It's 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. That, in turn, drives more consumers into the HydraFacial Nation, which grows our own brand awareness. The greater the scale of our install base, the more desirable our distribution footprint becomes to other skincare brands to partner with us, leading to even more personalization and better brand awareness. It is our flywheel in action. 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 nanotechnologies for the next generation of regenerative medicine. Our new booster will contain billions of exosomes, which are small membrane vesicles 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 armamentarium 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. Despite all of this technology that's embedded in that wand, what really matters is how good consumers look and feel. We know this. 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. In this study, I wanna show you, we partnered with our friends at ZO Skin Health to evaluate the efficacy of HydraFacial with the ZO Skin Health regimen. 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 a skincare regimen. 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 y skin. 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. Thicker skin is a hallmark of more youthful and healthier skin. HydraFacial produces meaningful, important changes in how consumers' skin looks and feels. This graph shows how those appearance dimensions that consumers care about most are improved after a HydraFacial treatment. We see statistically significant improvements in hydration, pore size, hyperpigmentation, dullness, fine lines, and texture. While you 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 prepped 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 pulsed light. 50% smoother skin when paired with an ablative fractional laser. Two times firmer and smoother skin when paired with radiofrequency and focused ultrasound. Two times smoother skin when paired with non-ablative fractional laser. 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. In the end, they don't care about measuring% improvements in thickness, in pore size, in pigment. They care that every single time they come in to get a HydraFacial, they know they're gonna 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. That's why 94% of our consumers feel a boost of confidence after receiving a HydraFacial. 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 provider's 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. When a practice puts a patient or 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 eight to nine HydraFacial treatments within a year versus just one to two for those who are not on a plan. 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 two 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 skincare and don't just happen. It's the result of good habits and routines, and we are confident that HydraFacial is an integral part of a good skincare routine that helps people confidently face life face first while generating y 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. Now we're gonna take a brief break and come back for a moderated discussion on our prolific partnerships and omni-channel strategy with my colleague. Thank you. Good morning. Please take your seats. The presentation will begin momentarily. Taking the stage for a fireside chat, our Beauty Health 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 The Beauty Health Company, and it is my pleasure and honor to be here to moderate this panel discussion, a discussion of the power of our omni-channel 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. I'm the EVP of Sales for the Americas. Been with HydraFacial five and a half years. Prior to that, I'm 30+ years in the medical device world, small, medium, large companies. Yeah, 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, for about five years. I actually joined one month after he did. Prior to HydraFacial, I spent 15 years in the medical device and aesthetic device area, Boston Scientific, Johnson & Johnson, Solta Medical. Thank you. 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. HydraFacial creates tremendous value for our providers in every channel that we play when we've told you we're omni-channel. 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 non-invasive, and it's painless and effective, no downtime. It's like a no-risk way to dip your toe in that cosmetic world. In terms of cost, an express HydraFacial is typically only around $150-$200, very, very affordable. Once they start with that HydraFacial, most consumers are keen to try more. You know, you just kind of get sucked into this cosmetic aesthetic world. We also know that HydraFacial offers more gross profit per treatment back to the practice than the leading neurotoxins, so very attractive to them. Our high-income consumer is typically purchasing two or more aesthetic treatments, so very lucrative to that doctor spa channel. If we move on to another part of our omni-channel world, there's the whole retail world with retailers like Sephora, Ulta, Galeries Lafayette, John Lewis, and more. 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 location. Even better, we know that a HydraFacial shopper that's receiving a treatment in the store leaves with a higher than average basket size. It's win-win all around. Finally, when we have our solo practitioners, kind of single-room aesthetics 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 Shana, Shan on the screen earlier. They can offer that. They know they're gonna be able to drive people in and get that revenue and repeat customers. In fact, an esthetician 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. That's just one of the treatments they're doing. Don't take just my word for it. Let's hear directly from the source. HydraFacial is a game changer. HydraFacial is a home run. It's been a phenomenal partnership. HydraFacial has helped me set my business apart. HydraFacial is a big part of my business. It is the face of my business. Patients can benefit from the treatment in a cumulative fashion, so they're coming in regularly. It's allowed me to retain clients because they just love the service so much. We raised $94 million in less than a year. Woo-woo. HydraFacial has been our partner every step along the way. The reason why I chose HydraFacial is because it brings new clients into my practice. Perk's gonna be a huge priority for Sephora stores next year because it is the most significant basket driver we have. It increases the basket size by more than 3x. HydraFacial is the entry point for us with almost everything that we do as a business. We put HydraFacial into the packages that we offer with other services. It brings people to my practice, and we grow together in their aesthetics treatments. It certainly draws in business to a lot of different types of procedures. Our clients, after having a HydraFacial, become obsessed with them, and it becomes maintenance in their life. It really underscores the importance of a skincare routine. That's exposing them to not only reinforcing skincare at home but also treatments in the office. It gave the client the result that they wanted to see right away. The skin feels amazing, and the customer is able to see and feel a visible difference. It gave great results, and helps it all. This is an easy treatment that they can do that's cost-effective, has no downtime, safe, and most importantly, provides results that are gonna reinforce them coming back again and again and again. 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 get your nickname, and I must share a famous phrase within the walls of HydraFacial is, "In Doc we trust." Tell me, Doc, in your 30 years, what makes HydraFacial the device you wanna sell now? Yeah. Thanks, Amy. 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 gotta remember it's non-invasive, it's painless and has no downtime. The treatment is customizable and personalized, which our consumers really love. We've heard it before, the pricing is very accessible to all consumers. Something that's important you've heard a little bit here is the support we give to our providers, our aestheticians, is very powerful. In all of these things that I'm sharing with you really help my team to successfully sell HydraFacial. But when people really press me, they're like, kinda, "What seals the deal?" It generally is the gross margin that you make on it. I think the slide will advance here and tell you that it's anywhere from 70%-90% gross margin on their HydraFacial treatments. The product is highly profitable, but not just for us, but also for our providers. 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. 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. That's why I enjoy it so much. Mingo? Yeah. We see a similar strength in the medical channel in APAC. As a matter of fact, we see the medical channels being the highest channels for growth in APAC for the next three years. You see, not only are 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. The future is tremendous. Fascinating, dentists. In addition to our channel diversity, we have quite diversified sales regionally as well. In fact, in our three-year plan, of course, EMEA and APAC are set to exceed our Americas business, which is quite exciting. Thankfully, we've recently hired more team members to help lead that business. Jon Arnold has recently joined as president of EMEA, and Stefanie Gebauer as president of Southeast Asia. Jon and Stefanie, we're so glad that you're here. Mingo, you opened our international markets on your own five 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 unpredictable the situation is in China based on the COVID. Having said that, we have been dealing with it for three 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 gotten incredibly creative during this period of time. We have moved a lot of our training online, and we do a lot of livestreams to support the accounts. 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 reduced our marketing spend given the lack of ROI opportunities. That said, we're continuing to build the commercial organization, expand and strengthen 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 Stefanie, 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. They are our 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. Based on the success of that, you just heard Priya Venkatesh from Sephora, who's now a global leader, mention that we drove basket size 3x, and we're bringing customers in. 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. Then in two 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. From there, we absolutely plan and would love to expand across Asia and other areas with Sephora as well. Congratulations. Congratulations to Sephora too for spotting HydraFacial early on. We started that relationship, as you said, five years ago. Today, we have signature partnerships with a number of retailers. We've mentioned some of them, Ulta, Saks, Nordstrom here in the US. In EMEA, John Lewis and Galeries Lafayette, of course. Retail isn't even our largest channel, or our most profitable. What makes it most strategic? Retail, you know, is part of our omni-channel strategy. We've said we wanna 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. We certainly wanna be in that retail environment. 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 onto a 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 the beginning, the end, or very sophisticated and going between, we're gonna capture all of them. 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 Ku, how do you open a market like China that has little to no brand awareness? Great. Thank you. Our strategy in China is tier-city based. We're targeting the top cities and within those top zip codes in order to drive those brand awareness. Four years ago, when we first entered China, we started in Shanghai only, as Shanghai is a leading source of trends plus 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 non-medical channels. By collaborating with the top medical providers, we're able to drive credible awareness quickly. Yeah. I'll just weigh in, too. For North America, that's exactly what we did as well. When I started at HydraFacial back in 2017, we probably only had 4,000 machines out in North America. So we focused on large cities and areas where there's lots of super consumers of skincare products or what Ben referred to as super geos. So that was the success plan. 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? Yeah. 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. 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, if they're wearing gloves, it's very difficult to run the machine, the old machines. The standalone LightStim device that we heard about, it just gives the aesthetician 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 gonna 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. 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. You know, I firmly feel, you know, as the sales guy that that connection is gonna really open our floodgates for growth with this. It's been really exciting. Yeah, absolutely. The excitement for the Syndeo launch, all the excitement that's driven from here from the US is making us very, very excited for the launch in 2023. Amazing. 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, you know, when Apple releases a new phone, you know, there's people that line up, you know, overnight out there 'cause they're early adopters. They wanna get the brand-new device. Meanwhile, others will just kinda sit and wait and be happy with the phone they have. That's really what kinda I'm dealing with here in the Americas with all that. 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 omni-channel. You know, 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 omni-channel approach, we can follow this 18-year-old, you know, be man or woman, through their beauty journey. 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 regimen. And potentially, when they're more mature, they might go to a plastic surgeon. The key 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. Yeah, 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. If you're gonna be everywhere where all of those people are and make it convenient for them, we're gonna employ the strategy kinda similar to what you see with Starbucks. You'll see a Starbucks on multiple corners. You just wanna make sure when you want your latte, you're gonna go where it's most convenient for you. Similarly, when you want your HydraFacial, we wanna 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. Yeah. Just to tag on to whatJwala has said, our consumers support our omni-channel strategy. You heard earlier, the average consumer gets HydraFacial in 3.2 locations. 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. With the price point where it's at, it makes it a very affordable luxury for our consumer. Whether they're at the gym and they just finished a workout, they're shopping at the mall and they see a med spa, they're at a resort on vacation, or, you know, that's part of their Botox regimen, that they're always getting a HydraFacial. As we kinda 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 omni-channel. I think ultimately, as we learn from that, it'll better enable us to tailor our expansion strategy and continue our growth. Yeah. 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 growing to do before we may potentially run into this issue. Additionally, the buzz from the U.S. Syndeo launch is well noticed in the region, but however, we're not seeing any slowing down our business at this point. Amazing. We've talked about capital investments and placing systems. How do your teams drive consumable utilization across the install base? Yeah, it's a great question, one I get often. Just for context for everybody, we have a bifurcated hunter-gatherer medical device sales team. That means I have two 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 install base daily. That's their role. The gatherers are business development 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. You've heard a lot, you know, kind of what we call our secret sauce is the relationship we have with our estheticians is really led by these business development managers, many of them whom were estheticians by training. They are building this tight relationship with the estheticians who generally nobody really even talks to. To tack on to that, Ben talked about the golden triangle, and that's sales, marketing, and training, and that's kind of very unique. 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. Yeah. Like I said before, we are very early in terms of the sizable install base in Asia, but we have 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. Within China, we're focusing deeply penetrating Shanghai, and Beijing, and Shenzhen as well. In Japan, Greater Tokyo Metropolitan Area and surrounding cities. In Korea, the Greater Seoul Metropolitan Area. We wanna make sure we win those super geos while we expand our presence and serve the rest of 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. For our corporate accounts, we're really excited about what Syndeo can offer in terms of utilization. These are accounts that have multiple locations, and the owners really need to understand the trends and performance across their portfolio. If they see uneven performance and they wanna level it up to their highest performing locations, this will allow us to establish an even deeper partnership and relationship with these high-value providers to provide more value to them. I'll note also, utilization is relative to a channel, so it's unrealistic to think that a delivery system at a gym or studio is gonna have equivalent utilization to that at a spa resort or medical channel, which are constantly booking treatments. 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. 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? Yeah, I'll start. For mine, it just continues after being here five and a half 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 am so excited about retail and all the opportunity it's gonna afford us to drive brand awareness and trial. For me, right now it's thinking about how great the opportunity is. The potential is so high for us in North Asia. This is a market that's famous for its focus on beauty, and I cannot wait to place in their systems everywhere. As I mentioned, I started five 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 Stefanie and Jon 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 three 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 Beauty Health Chief Financial Officer, Liyuan Woo. Thank you, everybody. Hello. Great to see many of you. I actually met many of you before, but I know there's others online as well. A quick introduction. Liyuan Woo, I'm the CFO. I've been with Beauty Health, then HydraFacial, for two 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, Dr. Jwala Karnik, and everybody from the team, a lot of the message really hit home of the great opportunity we have ahead of us. For today, we'll talk very briefly about our unique positioning and track record of success, just to kind of walk down the memory lane again for the past couple of years, and then we'll talk a bit more detail about our business, 'cause I know even after the quarterly call, there's still some detailed questions given we just launched Syndeo, you know, we had all that trade shows and, you know, Golden Triangle as we explore further. We'll ground everyone a bit more on the data. We'll walk through the three-year plan and talk about how do we achieve the amazing outcome. Let's start with our competitive strength. I think you've heard from various of the members today. We'll do a quick summary. It all starts from the product, right? 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 handpiece with all the boosters and partnership. This is why we always talk about the fact that we're an 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. 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. I know as numbers people, we really wanted to see it down the page. Today, I'll walk you even more detailed by channel, what is a provider TAM look like? You know, we all know where the consumer TAMs are. The Golden Triangle, you know, 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, you know, conversation we had so far, you understand how unique we are, you know, with this flywheel of Golden Triangle really feeding each other and really continue to generate better return on investment. We're very much of a test and learn business. Whatever we learn, we either run fast or pivot, and we deploy that globally. It doesn't matter what idea come from, either being from Mingo's APAC business or EMEA, we take it, put into the playbook, and refine it for local market. That's a huge secret sauce. Now, of course, 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 Beauty Health and, you know, we raise the cash, you know, along with the complimentary with other services, we're ready to really build that bundle, whether it being product, services, capability. We just wanna really service our platform, our community further. All of that translate to this really, really attractive business model we have. You know, we talked about previously at length, we're always been a asset-light business. If you look at our historical, you know, we spent less than $10 million CapEx. Now, the last two 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. 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 markets. Believe it or not, we're in 16 of them now, direct market, right? Andrew often refer to that, make up 85%+ of the true beauty business. We'll be very surgical and focused as usual as we deploy. We all heard about high margin. High gross margin for our providers, very affordable price for our consumers, and very good margin for ourselves, right? When we talk about profitable land grab, we literally mean even for the delivery system is extremely profitable. All of that really build this company that's with the future profitable growth, tried and true with our razor-blade model. This is just a quick note. You know, we are a consumer. We are a care consumer crossover, and you heard from Doc and others, you know, it's very rooted in this medical device. Obviously, if you look at our management team, we often call ourself MMA fighters, right? You've got medical device folks, you've got consumer technology folks, beauty folks, and we're really building this category creator something new. Even if you just look at amidst our med tech peers, given our growth profile. By the way, when, you know, we shared before, under private equity, before we went public, we've always been, you know, 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. There's only a few, you know, 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 really a focus on what we can control. You know, even look at all the tailwinds, I don't have to repeat. We all know we're, you know, helping retailers, Amazon-proof themselves, and we're really catching you know, globally. When you think about the APAC market with the young generation of skin intellectuals, their lifestyle, how men are really positioning how they think about, you know, beauty services, especially with our treatment, we always say, "No pain, all gain." Why not, right? There's so much tailwind behind us. Even when you look at the headwind, you know, we as a management team always joke about when life throws lemons, we make lemonade, and we're really good at making lemonade, right? You think about all the geopolitical uncertainty, you know, we're very, very well diversified. You know, Dr. Jwala Karnik's talking about we're in 500+ Sephora doors and they're our biggest customer. It's less than 3% of revenue concentration. Just give you a real sense of we are very diversified. Macroeconomic environment, we have very resilient consumer. I think Andrew had shared, you know, even the last recession period, we grow. Of course, we lived through pandemic lockdown. You know, when I joined September of 2020, I can still remember, right? We had the furlough of 80% of our employees. We probably have less than 300 employees. Now we're almost having 1,000. We're extremely resilient. We're roaring out of the pandemic, feeling really proud, especially connecting and engaging with all of our HydraFacial Nation. 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 so happy with the amount that we exceeded with our own expectation. 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 wanna make sure we have plenty of inventory. That's why you see we actually order a quarter ahead, and especially when you're launching new product, you wanna make sure you have plenty. The other thing to think about from a long-term point of view, look at our margin. The fact that gross margin are, you know, manufacturing in Long Beach, flying all the components in and out, it just tells you there's plenty room to go for the future. We feel very confident about both the tailwinds and the headwinds. Very quickly on our accomplishment. You know, 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. We talk about how great the margin is, right? Gross margin blended despite the pandemic, you know, around 70%-74%, between the GAAP and adjusted. We had six quarters of beat or raise, you know, even though we're a public, a new public company. Really proud of that. You know, since we've went public May of last year, we actually did four distributors acquisition back-to-back, back in July. 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 three or four years, we're very U.S.-centric business, and we're just starting to really scratch the surface for international. A lot of those are distributors. We're in 90 countries, right? The fact that we're converting four 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. You know, of course, we raised $750 million convertible debt, if you recall last September, you know, when the stock price was close to $30 with a 1.25 interest rate. We feel really good about that. 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 nine months, actually went live November of last year. I feel really good, you know, continue to build on that infrastructure and system. By the end of this year, we'll be in every direct country, you know, maybe with the exception of Australia because their year-end is actually June. I feel really good about building all that fundamentals, with my teammates here. If we dive down a little bit more on the numbers. Here you see every single quarter, you know, how we have actually met and exceeded them. Part of that, you know, we run our business based on rolling forecasts, as we shared with you. We actually have a pretty good pulse in terms of how the revenue generates around the region. You guys will understand for the past two years, there are so many open/close because of the pandemic, you know, at different regions and cities and open/close and different capacity. So a lot of that make the visibility a bit harder to see. That's why we've always been very transparent when we provide the guidance. If you recall, even for Q2, essentially what we said is, you know, really when we launched Syndeo, we're assuming, you know, the trade up is gonna be consistent to historical experience. We understand the very gradual opening in China. It's very hard to predict, you know, what the country's gonna do in 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-$350 million. Just wanted to kind of repeat what we said, you know, back on the call. The point here is we've been very transparent. Our model made those assumptions, but obviously if the sales, you know, come above that would all be just incremental, let's say 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 gonna generate $25 million EBITDA. Obviously, you heard from Ben, you know, with our golden triangle, we know how to pull that lever when it comes to marketing, right? If the market is not open, we don't have to invest in marketing. As a result, if you remember 2021, the first half of the year, the vaccine didn't even come out till Q2, so there's really no point. As a result, you know, 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 US-centric business, you will understand with the conversion of the distributors building that 16 direct channel, we've been investing heavily in people, you know, in locations, in system. This is why all along we said, you know, 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, you know, with over $100 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-dollar revolver, that should really help us to manage our working capital. As I mentioned earlier, ample inventory as we continue to grow our business. That was a high level of the, you know, the record of success. Now let's give you a bit more detail of the business itself. We're actually showing a 2019 example here for both our sales, you know, penetration by quarter and also EBITDA. Really just give you a sense of our business has been pretty consistent. It's very back-half heavy. When you think about where the, you know, the revenue drop to EBITDA, it's very much of a heavy Q4 play. If you dive a little deeper, here we're trying to show you sequentially, what does that look like on a by quarter basis. You can see because Q4 is usually the strongest quarter, you know, it's holiday, it's probably the only field period we actually run Black Friday, Cyber Monday promotion. The fact that, especially in medical channel, you know, you have folks that wanted to use their capital budget for the year, and there's tax benefit. Usually, you do have more drop of both of the system and the consumable for the fourth quarter. Then you see that natural drop in Q1, right? You know, people are taking holiday after the holiday, especially sales folks, and we have our sales meeting. That's usually very natural. You see a drop of that. Then it kind of comes up, right, and to Q2. We usually have a pretty even Q2 and Q3. Historically, it drop a little bit, you know, especially given Europeans are usually on vacation during the Q3 period. This really give you a feel of it's relatively consistent on how we drive, you know, our revenue trend. This is actually quite a bit of a detail. We're showing you by quarter what is the revenue split between delivery systems and the consumables. That little purple bar shows the trade-up that happened after we launched our Syndeo. I'd like to point you to the delivery systems sold, right? Like, Zach talked about how many systems we had. I know even historically, we always talk about, oh, we sell about 3,500-4,000 systems a year. As you see, as we invest into sales team, as we expand internationally, our golden triangle at play, you can see better productivity, better lead conversion for our U.S. business. You know, you skip a year for the pandemic year of 2020, we actually delivered more than 50% of delivery systems for 2021. Now we're half year in, you know, 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 number one 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 dropping so many systems, we can't run fast enough for the consumables to really catch up. 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 a quarter worth of consumables. Now, obviously, with 2022, with the trade-up, because we're launching Syndeo, the bottle is different, you know, the system is different. So even for the trade-up, we gave them, you know, the training kit consumables for all the trade-ups. The other point to really highlight, you know, 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 two, especially for those new practices or second system practices to really ramp up. 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, you know, US business has been, you know, 75% in the beginning or, you know, now we're trending towards almost 60-40 split between US and outside of the US, despite the fact that China is still partially shut down. If you just look at that purple line, that's the EMEA business. You see back in first quarter of 2019, it's a $6 million business. Now, you know, we've been trending around $18 million. More importantly, Mingo, right? Like, when you look at APAC, it was a $2.5 million per quarter business back in first quarter of 2019. We already are growing up to, you know, $12-$13 million. Obviously, the slowdown, it's China closing related. You know, 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. Couple things just to highlight. Again, when you think about 2021, and we usually invest in marketing, especially when it comes to, you know, Ben talked about digital, physical, digital. A lot of these physical activations are more bigger dollar investment, either being the big trade shows or Glo-volution Tours or, you know, Estie Palooza. Usually, we spend those dollars in the first half of the year. Then we see all that leads being generated, then converted, really benefiting the second half. Last year was the anomaly because remember, the vaccine didn't even come out till Q2. A lot of the ten trips of, you know, Glo-volution Tour and the big activation all happened at the second half of the year. That partially just reinforced the point to explain our trend for 2022. It's kind of abnormal for how we invest in our marketing dollars. With all of that facts and data and details put away, now let's dive into our three-year plan. As Andrew had shared, we're gonna be doubling our top-line sales, and that's gonna come from continued growth from across all channel, across all geographies. Obviously, we're very much focused on that consumable pull-through as well. Really excited to dive into the detail with everybody. On the EBITDA front, you know, historically, we always talk about that mid-20%. Obviously, you know, outsized investment in 2021, 2022. Our goal is to have a lot of these fundamental structures build, people hired by the end of this year. You're really starting to see that leverage in EBITDA dollar, and margin flow through. As a result, we're guiding to that 18%-20% for 2023, and really 25%-30%, based on all the leveraging point that we have mentioned, including mixing shift, you know, for the consumables. 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. There is a little bit of that tale of two cities going on, right? 'Cause you do look at the U.S. market being somewhat mature, even though it's still early. In that vein, we've been very much focused on that optimization play, right? Like, how do we really invest in the golden triangle even more effective? The more productivity we can drive for both the CSM and the BDM side of the equation, the more we train the providers, the higher, you know, EBITDA flow through you should be start seeing. However, you guys all saw how nascent EMEA and APAC is, and this is precisely why, you know, we did want to invest back and take over one city at a time and expanding with a similar playbook. The reason we actually purposefully put that dotted line is to say, you know, we're actually very good with pulling our levers, and we're gonna continue to observe the market. If there's a room to feed and continue to grow with that hyper growth trend when it comes to APAC and EMEA market, we will do that. There's gonna be a constant balancing between growth and profitability. We took all of that into consideration, obviously, when we provided guidance to all of you. This five-point master plan, I just wanna 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. Really, this profitable land grab will make sure we're, you know, increasing our revenue stream as we invest into Golden Triangle into conversion of the leads. We're investing in providers because of the fact that we're educating them. We're putting on the event. We're radically generous, right? 'Cause when you think about these Glo-volution big truck city takeovers, our aestheticians and providers are showing up, providing their free services. We're also doing that digital consumer, you know, marketing for them. We're creating consumer demand for the ecosystem. The fact that we're investing in them, they're investing back to us, right? You heard from Ben, you know, how much of the posting, how do they show up, how do they also service our consumers. That's really gonna invest to drive to fuel sales growth and conversion. Brand awareness. It's critically important for all these folks on the planet to understand HydraFacial and related booster services are so good for them. Everybody should be doing it once a month. 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 start to truly scale this global growth. Now of course, you know, every time Andrew and I, you know, 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 gonna bring to our bundle to build our business?" We're like I said earlier, we've been very excited and really wanted to build with M&A, you know, build or buy, right? Really helping with product offerings and capabilities to help us grow. This is a deeper dive on the TAM itself. You know, you heard what Jwala had said. The fact that we have 60% medical, 40% non-medical, the fact that we're omni, a lot of times the provider use us differently, right? If you're a plastic or derm, you might wanna make sure your patients are prepped in between surgeries. You know, I think Andrew was giving the example, some of the plastic or derm actually require their patient to subscribe to HydraFacial as a monthly treatment in order for them to receive treatment. If you're a gym or some other channel, maybe you're not utilizing your machines 24/7. You know, we always observe when a practice provide five treatments a day, that's when the tipping point happen for them to buy the second system. What I'm trying to point out to you can look at TAM. They're big everywhere. The one that when you think about truly higher utilization, you know, the machines open 24/7, are medical spas and non-medical spas. If even if you just focus on those two higher utilization by definition channels, they're half of the channels. Overall, we're less than 5% penetrated. Therefore, I feel really confident about this huge TAM and across the world, where we can really increase utilization and have levers to pull. Current state, this is just, you know, I don't mean to belabor the point, but you can see, you know, even in terms of, the split between delivery systems and consumables or more important by region, you know, the America's business continue to grow 30%-50%, right? You look at EMEA, it's been 50%-80% growth. APAC has been growing 200%-300% until the slowdown because of the pandemic, you know, closure with Omicron. You have to appreciate during Q4, or sorry, during Q2, you know, we had, what, 70 days completely Shanghai shut down. You know, no one's really allowed to come out. Despite that, we only dropped, you know, growth to 17%. It really speaks to the strength in Australia and other countries that's contributing to APAC. This is why we wanted to reconfirm the chart to demonstrate to you know, in terms of growth, you know, APAC certainly is gonna help for the future as well as consumables. Those are the two key levers to drive our growth in the future. Utilization, I think that's top of mind for everybody. You actually heard how we run our sales with the golden triangle. When it comes to account management, it's actually critically important for us to invest in all three levers because guess what? With these marketing either being digital or physical, you're looking at 6%-40% ROI, right? Because our LTV is really high, especially you think about, you know, the amount of revenue we generate based on the system itself and also the repeatability of our services. We talked about training 2x to 4 of, you know, ROI, we actually can calculate, but all of that implied goodwill and all the things that actually they provided to us is above and beyond what you can see on the paper. I know everybody have shared trained masters actually generate 20% more consumables. We can actually see that in the data. 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 that golden triangle, hence increasing utilization, consumable sales, and consumer engagement. Same goes with brand investment that drive, driving of the booster. We're just barely scratching the surface. That's why we're so excited about, you know, the new booster we're launching, JLo launching. All of that will be added utilization and consumable sales for us. The fact that we're expanding to other part of the body. I think you guys all heard loud and clear from Dr. Jwala Karnik, skin is the biggest organ of the body and, you know, all these areas we can expand to. You know, I was just meeting some folks earlier and asked them to guess, you know, 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 your hand treatment as an example. All these levers we can pull around the globe when it comes to utilization. Again, just to demonstrate again, mid-20s historically EBITDA, you know, outside investment in 2021, 2022, we're gonna gradually step back when it comes to EBITDA flow through. To bridge it even more clearly, right? Starting from now, you know, where are we actually getting these leverage point, up to 5% growth margin alone, and I will dive more into the detail to explain to you why we feel so comfortable with that. Of course, you're starting to see some leverage in G&A already, and we always talk about size matters. The bigger the top line we 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 leverage in terms of flexibility in pulling up and down. We will definitely see leverage and flow through as well. This is how we really bridge it through to drive the business forward with the EBITDA flow through. Couple of things just to hit home and summarize one more time, right? We hired almost 800 new employees, 2021, 2022. That recruiting fee because we're scaling, you know, that really adds to the investment as well. We opened global offices, you know, we had these real estate investments in experience centers. Obviously, we're a public company, we build that infrastructure, all the systems just to ready to scale. We've been working on network optimization, you know, we've shared before the fact that setting up a 3PL in Frankfurt, you know, really trying to figure out a new 3PL in China, all of which will make it even more efficient. When it comes to planned growth optimization, you're starting to see that, you know, production efficiency. You're gonna start to see that fixed cost leverage. With the improved training marketing capabilities, it's gonna definitely drive continued growth and flow through. We'll have productivity gains across the entire golden triangle. Growth margin. We're actually showing you both the GAAP historical and adjusted growth margins. You can see despite the pandemic, you know, despite all the high costs when it comes to freight and component trade with these supply chain disruption, we've been maintaining around 70%-74%. That's today, right? We're air freighting a lot of the items because again, we're buying speed, right? They're less than the load, a smaller order size. It just means upside. There's still a lot of duplication costs, right? If we did four distributor acquisition, 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 burdened through into the gross margin. We're globally sourcing all these components, but then we assemble everything in Long Beach, you know? Flying stuff from China, assemble at Long Beach, and then fly or ship them back. There's a lot of inefficiencies. While Syndeo is leap forward, you know, we shared the ASP definitely is increasing, but gross margin neutral at the moment, right? Because it's a brand-new machine. We're just starting to scratch the surface in terms of value engineering. Suffice to say, there's a lot of upside to come. You know, 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 ways to, you know, extract margin. You know, these are all the areas that we've mentioned earlier that we've been investing in. With that, we'll start to see, you know, ocean freight combined with air freight. There's definitely those economies of scale. I'm sure all of you heard too, there's already a trend starting. Both the air freight 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 efficiency 'cause, you know, 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. This is why, you know, there's gonna be, you know, plenty of efficiencies to come. There's no reason why not go vertical eventually, right? In terms of consumable production. Right now, we just graduated from single source to multi-source consumable CTM model. How do we think about G&A steady state? 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. 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. For the past three quarters is sort of when you take away the one-time costs, you take away, you know, the non-cash stock compensation costs, and you take away depreciation, amortization, it's been trending around $15-$60 million a quarter. This is why we feel so comfortable we're really gonna 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? Then 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 gonna have a fully scaled global back office, right? We can sustain future growth, and it's gonna be a shared service model as a global player. We're also now gonna have a full commercial presence to really develop and penetrate in our 16 market. Some of these direct market are very, very early as you know, Mingo had shared earlier. Now, golden triangle. This is a way for us to show you know, sort of the seasonality we talked about earlier. Even when you look at 2019, you can see you know, heavy investment upfront, lower revenue, right? It's higher in the you know, 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, so really the percent we spend is lower. It builds up, you know, for the second half of the year 'cause we invested in marketing anyways. You know, we were giving an example, you know, in terms of a Glo-volution with the 10-truck stop, and then we're getting to be much more optimized this time around the first half of the year. 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. Our hiring country managers, hiring sales team, hire marketing team, right? These are people costs and infrastructure costs. You don't even see all the revenue flow through yet. We're just building the base, you know, as we speak. Today, of course, we know it's 8% aided brand awareness. This is why you're seeing that outsized investment in the beginning of this year and showing you know, where are these big-dollar golden triangle investments go into, right? Launching Syndeo was a big deal. That was the outsized investment. We always have our Estie Palooza meeting with our customer base and these Glo-volutions. They all happen in the first half. Suffice to say, we get to really benefit from all that leads generated converting into sales for the second half. We continue to make these investments. One of the things, you know, I'll emphasize when I talk about hiring these folks, there's $20 million more investment on these international selling and marketing line alone just based on hiring these people, building the infrastructure compared to the previous year. Future state, you know, once we put all the optimization play in with the 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 gonna see a lot of that to come through. To recap, 2x sales, 3x at a minimum for EBITDA, as our three-year plan. If you take away anything for today's conversation, we talked about successful track record, but I wanna emphasize the fact that we are a growth company, so we always talk about progress over perfection. In this case, we mean 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. With that, I'll invite Andrew back to give closing remarks. Please welcome to the stage The Beauty Health Company, President and CEO, Andrew Stanleick I could be as dynamic as Liyuan. Amazing job. Thank you. On a serious note, the morning's drawing to a close, and shortly we'll break for Q&A and then lunch, for those of you here. I hope you've enjoyed all of the presentations today and walk away with a great understanding of our business and the enormous opportunity ahead of us. To sum up the day, we couldn't be more excited about the future prospects of the Beauty Health business. Brent and the board, the executive committee, and all of the teams back in the office are actioning our purpose and vision every day. 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 three points that I want you to take away. Just a reminder that, first, we are a category creator, probably many very different to many of the other businesses you cover, 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 in a huge and growing and resilient TAM. As we're saying, we're just getting started. Seeing those numbers from international is such a big opportunity at hand. Then finally, you saw firsthand how innovative our technology platform is and how powerful that flywheel is and how it fuels our growth. In conclusion, we expect the execution of our master plan to generate a virtuous cycle of long-term growth and profitability. Thank you. I'm now gonna invite the presenters back on stage, and we'll have a Q&A and happily take your questions. Thank you. We will now begin the open Q&A portion of the day. To ask a question in the room, raise your hand and a mic runner will come to you. To ask a question from the live stream, type your question into the Q&A field and submit. Please remember to introduce yourself and share your organization name. Thank you. Linda, I think ladies first. Sorry, Oliver. Yeah. Thank you. It's Linda Bolton Weiser with D.A. Davidson. Great job. Thank you. Thanks for all the detail, Liyuan. All the numbers, everything. 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 gonna be production, too, in Europe, and just kinda talk about that. Then related to that, we saw a little temporary dip in gross margin due to the trade-up related to the launch. I assume we will see that in the rest of the world as well. Can you just talk about your confidence in getting to that margin profile next year, even with that launch, and what that means to the numbers? Linda, thanks for the question. Of course, straight out 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, you know, it's been a tremendous success, the launch of Syndeo here in the U.S. both that initial launch and the ongoing trade-ups. You know, we still have a multi-year journey to complete that, as Doc very clearly articulated. Excitement is growing, and I think, you know, some stage in 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 on, but of course, in parallel, we've been working on that in-region manufacturing in 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. Of course, we, as Liyuan so articulately explained, we fly them into Long Beach, assemble them, fly them all back again. It's bad for business. It's bad for the planet. That's obviously the first thing we want to address. Very excited about that. Anything to add? Yeah. Thank you. Hi, Linda. To address your question, manufacturing localized plan is for Asia, and we already have a 3PL set up, you know, EMEA. The eventual goal obviously is to try to get, you know, the production closer, and we're really looking at both of the consumable and the delivery system side of the equation. When it comes to the margin, you know, we've learned a lot. You heard from Doc and Mingo. The fact that, you know, we launched with a promotion running for two weeks, right? The fact that, you know, you guys know we sold over 1,000 systems shipped 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 approaching. We will always take care of our customer. All that learnings 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've provided. Thank you, Oliver. Hi. Thank you very much, Oliver Chen, Cowen and Company. We're out with the Consumerization of Wellness Report, a 50-page report this morning featuring Beauty Health. Thanks. Thanks for the details. As we think about other opportunities such as hair, which is a big addressable market, and the rest of body, what should we know about the building blocks there? As we think about the margins, marketing as a percentage of sales, marketing is a huge opportunity. How might that change? If you could give us more details on value engineering as well. A great question. You know, to address your first question, you know, we have this incredible product called Keravive. It's, you know, clinical results. I missed the boat, sadly, of course, but it delivers thicker, fuller hair. We launched it just before the pandemic. I can tell you, Oliver, where we have got distribution, particularly in those derm offices, it performs extremely well. The HydraFacial delivers the service by, you know, unplugging the hair capillaries, et cetera, and then it's a three-step treatment using a take-home product over three months. It's a tremendous product. I think we will come back and, you know, relaunch that at some stage, because since then, coming out of the pandemic, of course, as a team, we've been focused on the flawless launch of Syndeo. I think, and I'm sure it's in your report, the growing global trend of scalp care, the skinification of scalp is an absolutely huge opportunity for us where we want to play and play to win. More to come on that. Lian, why don't you handle the second part? Oliver, you know what? I'll let Ben talk about marketing, and then I'll finish off with the numbers. You want me to start? Yeah. Great. 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 lean and hungry, we don't have hundreds of millions of dollars to invest in building the brand awareness. How do we bend the curve, do something different? 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 three pillars. The first is B2B. We'll always lean to our B2B capability in marketing. We've proven time and time again, this is our blueprint around trade shows, events, digital is incredibly effective at building a lead funnel for Doc and Mingo and Jon and Stefanie. 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. 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, we'll be really surgical, guided by two 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. While we're democratic and our solution works for all skin types, we're not shotgunning to find every consumer in the world who has skin. 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 one of hundreds, very effective for us. We have a very lean way of thinking about it, and that will continue forward as our unconventional approach to marketing in terms of driving brand awareness. The last quick thing I'll say, from a more mathematical perspective is what excites me about CAC and LTV is because this is such a recurring revenue model, once we've got them, they come five or six times, maybe even monthly, which we recommend, we can amortize that CAC across a really y 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. Yeah. Oliver, this is why we feel really confident we will see that leverage, right? Because we have to kind of buy the base given our revenue, you know, size. The way we look at the Golden Triangle, it is truly blended when you look at how much we invest in sales, because remember, the nurturers actually do a lot of the drive on utilization as well. It builds into marketing because the trainer and the nurturers both teach them how to fish. That's why it's. We truly are looking at that holistically to bend the curve. 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. Thank you very much. Thank you. Hi, Korinne. Hi, Korinne Wolfmeyer from Piper Sandler. Thanks for having us all here today. First, I wanna 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% 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 with the providers? Just any detail there would be helpful. Thank you. Thank you, Korinne. I'll ask Jwala to kick off and then perhaps hand over to Ben to talk loyalty. Over to you. Okay, great. Thank you for the question. We are being very opportunistic in how we launch our boosters. You know, when we have something new, exciting, different, that's when we'll take and launch them out in order to give each one its moment, and also be responsive to our customers when they really are excited about a new novel technology or ingredient. 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. Thank you, Ben. 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. 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. 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. Thank you. I know there's a lot of questions in the room. I just wanna take one, if we may, from the team on the virtually. Sure. 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? Yeah, I mean, of course, the guidance we've given today, so everyone's 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 2023 adjusted EBITDA in the 18%-20% range. We can come on to talk about M&A later. Of course, you know, we do see strategic M&A as a facet of our growth, but it's outside of the guidance given today. We have a strict criteria. I think we've shared on previous calls how we approach M&A. We've been extremely prudent and disciplined in how we approach it, and we have very strict criteria. We want to potentially acquire something to build up our Beauty Health platform, which has 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 team today, complementary to that existing core point with the aesthetician, something which they can add to the bundle and deliver leverage. That's how we're approaching it. Thank you. We'll take one in the room. Thank you. Maggie Boeye from William Blair. Thanks for having us today. 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. Can you talk about, over the next three years, how you're going to balance, you know, focusing on utilization as well as continuing to place systems, particularly with the international launch upcoming? Absolutely. Hey, Maggie. You know, as you saw, our number one initiative is truly profitable land grab, right? The fact that we have such an effective hunter team around the globe, you know, laying down systems given how nascent we are against our TAM is 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 consumable. This is a reason, as the base grow, we would assume more utilization will come to fruition as well. We are assuming a very gradual flip in terms of the consumable equation to our delivery systems. Thank you. We have one. Is it Kyle? I can't see. Hi. Thank you. Kyle Rose, Canaccord Genuity. I guess someone's gotta be the troublemaker and ask about near term. I appreciate the long-term commentary, but you know, there's a lot of uncertainty regarding the of the consumer. If you could just maybe kinda help us understand how you built in some of that uncertainty into both near term and the long-term plan. Then, second question is just from a margin perspective. You know, I appreciate the 2023 commentary, but you've got a pretty wide gap when we think about the bridge from 2023 to 2024 and 2025. How should we think about that margin flow through? Is it ratable? any granularity you can give us as far as G&A versus gross margin leverage there, given it's about a you know 1,000 basis point spread, depending on if you come to the high or the low end there. Kyle, thank you. As always, a lot in there from you. I will start and kick off. I mean, first of all, I'm not gonna talk too much about 2022, 'cause we discussed that a few weeks ago at the last earnings call, and we'll give you an update in November. Clearly, as a team, and with Brent Saunders and the board, we're absolutely committed to delivering on the guidance we've given. I think Liyuan Woo really well articulated the way we've you know, with the guidance we've given for the rest of the year, balanced with a gradual opening up, which China really is where we've seen the you know, as you saw from the detail which Liyuan Woo just presented, was where we have seen the slowdown because it's just been locked down. It really depends, you know, on how that opens up. If it opens up faster than we could anticipate, of course, upside. But, you know, we'll discuss more on that in November. Perhaps Liyuan to comment on some of the margin questions which you presented. Absolutely. Hi, Kyle. In terms of how we think through our model and guidance, we've always been, you know, kind of promise what we deliver what we promise, and we've been very thoughtful in terms of assuming that gradual ramp up, right? When it comes to considering the market, we continue to see that gradual opening. When it comes to growth margin, though, because we've been actively working on network optimization and, you know, local manufacturing, some of those profitability, we should be starting to seeing that more immediately. You've seen the profile for G&A. It's gonna 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? This is why, again, we sort of show those dotted lines, because if the international market come back really strong and the pandemic stops, we will continue to feed the beast. Really, you know, encourage the top line growth. But we're very good at optimizing and we continue to be very maniacal when it comes to how do we find that optimization point? It's a gradual build. I think just one more build, because I spoke to some of the teams who cover consumer during the break. This is a very different model than, you know, the previous consumer companies I worked for and watched 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. Yet a lot of our investment is in that training and education, which delivers that really, compelling ROI. The media is very digital. We can ramp it on or up or down to balance our risk and opportunity. Very different model. You know, we are a unique, business in terms of a category, and it's really key to understand the flexibility we have built in. Question at the back. We'll take one from the back and then come back. Great. Thank you, Jonathan Block with Stifel. Good morning. Maybe just first, I feel like I spend half my life talking about utilization. Feedback on those early Syndeo accounts. You know, they've had the box arguably for roughly six months now. What are you seeing with those accounts in regards to utilization? Is there a notable step function higher, let's call it? Any color you can provide. Then, Andrew, just how about on the consumable pricing? I think you guys took price in May, but it's an inflationary environment. I've got companies that are taking multiple price increases throughout this year. Maybe just talk about the long-term opportunity there, and how you see that unfolding for the rest of the year and in coming years, quite honestly. Thanks. Great, John, and two, yeah, two great questions. Thanks for highlighting it. I'll answer the second one first. You know, this company historically, before I joined, have annually taken price increases. It's the muscle. We have that pricing power, which we've always passed on with our partners. And you're absolutely right. With the launch of Syndeo and the new, you know, bottles which we launched, which of course can only be used in the machine, they have the security twist off caps. We launched those in May and put through the single digit, high single digit price increases. I think we're gonna. We feel good about that. You know, they've been implemented and, you know, the business is thriving. I think, you know, we are staying close to that. We're obviously conscious of inflation. We're 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. You know, we'll watch it closely and, you know, not ruling out future price increases, but there's a lot of margin optimization. For the first question, yes, it's been, what, four or five months since we launched Syndeo. Of course, we've got over 2,200 systems placed in the U.S. Of course, we're learning to be data scientists and building up that muscle and capability internally, and that's an ongoing journey. We are getting data. I think the reason we didn't share it today, John, it's probably what I mentioned to some of you on the call the other week, is that we co-created Syndeo with many of our providers, and those are super engaged. They are, of course, the ones, to use Ben's example, queued up like the iPhone to get the new model. There is an inherent bias in those first couple of thousand we sold. They're our super users. They love, live, breathe Syndeo. Yes, we have seen, I will say, encouraging utilization signs from that. 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 give us a bit more time and as we, you know, committed to when we launched Syndeo, you know, in future, we're gonna start sharing that data. I think it's gonna be a great metric for us all to review together. 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 couple more online. Thank you. Thank you. Thank you. 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? On collaboration, so exciting with JLo. How do you think about collaborations going forward? Thanks. Thanks, Marie Driscoll, and thanks for coming. I think Ben Baum will kick that off. Then I think Dr. Jwala Karnik 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. Again, as I said, we start with the B2B. We really lean into our providers. This is a teach them to fish, selling picks to gold miners. We've spoken about today that the dramatic increases between 25%-50% in consumable sales come for the providers when they've attended. Just as we say for the consumer, you have to get it to get it, what I say at training is you gotta 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. 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. On the collaborations, we love doing collaborations. They're wonderfully productive, but we've built an amazing brand of HydraFacial ourselves. We're gonna continue to be disciplined, and when it makes sense with our business model, our economics, our base of providers and consumers, and we think there's a win-win, that's when we'll do a collaboration. If we speak to the one that we just did with Jennifer Lopez, yes, she has over 220 million Instagram followers. She has a glow as well. It made absolute sense. Also she has a skincare line, and she wanted some medical credentialing to improve her brand, and that's why she sought us out as well. It has to make sense for both parties. We are not gonna do it just to do it. Thank you. Alan, we'll take one from the front and then one online. Thank you. I just had another question on guidance. You know, I think we're all really encouraged to see the range of 20%-27% that CAGR is definitely a step above what people were really expecting heading into the day. It is a pretty wide range, I would say. I was just hoping to get, you know, some color from you guys on what's really the base case for, you know, getting to the bottom end of the range, the top end of that range. When we think about, you know, future opportunities like the at-home device, which are, you know, basically not a part of revenues today, should we think of that as being upside to that range or a, you know, a lever to get to the top end of that range? Thanks, Alan. Yeah, you know, as we said, you know, I answer the last question first. It's organic growth actually excluding the home device or any of the other M&A activities. The other way to really think about how we think about the growth, we really wanted to see, you know, as I said, the tale of two cities. It 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. That's why, you know, the way we modeled out and provided the guidance, we're kinda taking the dual approach, you know, taking the assumption of more aggressive growth internationally and, you know, kind of more optimization on the Americas side or more on a blended basis. That's kinda how we come to the growth trajectory. Thank you. Amy, I think we'll take one online. Thank you. Can you talk about the underlying gross margins of devices versus consumables, including the tips, boosters, and serums? Absolutely. What we have shared with the market consistently is the fact that we're kind of a middle 70% adjusted gross mar gin business. There's probably about 10% difference between, you know, currently between the delivery system side versus the consumable side. But there's so much value engineering to go on both side of the equation. We're very confident the gap could widen even, but both are going to go up. Any more in the room? If not, there's more online. We have one at the front. Hi. Oh, thank you so much for your presentation. I'm Joyce from Fact Capital. I guess, like, since Asia is such a key part of the growth and penetration story, how do consumers and also esthetician clinic partners behave differently? Are there any different metrics on user retention, treatment frequency, provider profitability, machine utilization, satisfaction differences? Also because, like, North Asia is a very competitive market with a large beauty market, but also a lot of, like, local innovators, does focus on newness and faster product innovation cycles potentially make your 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, Meng. Mingo, why don't you kick off? Yeah. Thank you, Meng. That's a great question. I'll try to answer the quite a few questions in there, but I'll try to go. I think in terms of consumer demands, it's very, very similar. I think when it comes to face, when you talk about the wellbeing, they're looking for the same things. Also the excitement that we drive, the awareness that we have is very, very similar across the board as well. In terms of margin for the providers, we're actually right. It's the same bandwidth as the global right now. I think it's very profitable for our providers. I think with what we're seeing a lot of providers wanna do is actually increase the treatment prices, because everyone wants to have more revenue per minute or per hour, however you measure it. The question now becomes how they do that. I believe, you know, we believe that our golden triangle education part of it is really helping them, partnering them. How do they charge more? How do they collect more from the consumer? Because really a provider looking for three things. Number one, additional new consumers coming through. Second, keeping the current consumers, the stickiness of it. Third, every time they come back, how do they spend more? I think HydraFacial and Beauty, and Beauty Health, our value proposition fits all three very nicely. We don't see a huge difference between Asia and the rest of the world. If I can just build, I mean, Liyuan and I with the team have just got back from an extended tour of Asia, spending, you know, quite a significant time in Korea, which is such an important market. In North Asia or across Asia, we are already a brand, Meng. You know, there is a lot of local competition, and I know those markets extremely well from living in most of them. But we are already a brand, especially in the super geographies where we've smartly focused for the super consumer. We're delivering. We have a brand, we deliver more margin. 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, you know, make our formulas with, you know, 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. You know, the TAM of Asia, you know, we know this, I don't think we spoke about enough today, but, you know, Asian consumers, you know, they use less makeup and less fragrance than Western consumers. The TAM for scalp and skincare is triple that, for example, of in the US. There is so much runway as we build the brand. We have the playbook, you know, which we've developed in the US, and we adapt and translate that for APAC and EMEA. 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 distress being felt? Where is the most distress being felt? Will it be felt in the business? I mean, in the short term, and I must say, and to Mingo's team, I think the incredible Beauty Health team in China have lived through so much this year. You know, some of them couldn't leave their apartment block for over 70 days, couldn't even go down the building. Certainly all of the thoughts of our team, and we were sending them food parcels, et cetera, to look after them. I think, you know, from a really human level, I'll 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. Really, frankly speaking, that's the, you know, 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, as in the last 12 months, as Liyuan Woo articulated. As we're in hyper-growth mode and thoughtfully building the company and bringing the people in, you know, it's making sure we're hiring the right talent with that 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, you know. You know, we have a great culture, a great team. We're a hybrid company, asset light. There's a lot to like about, especially if you're in sales, you're beating your targets. But absolutely, if you're in HR at the moment, you're quite stressed. Oliver Chen, you have another one. Thanks very much. Thanks, Andrew. Oliver Chen, Cowen and Company. A theme for us as well is magic and logic. One of the questions is patents. Yeah. What would you say are your defensible patents and also how you approach the innovation R&D process? Follow-up is, you know, men's is a great opportunity. Yeah. This is a process that doesn't hurt and works well. Thoughts there. Great. I mean, we have, I think, nearly 60 patents and of course the, you know, within that magic wand, that vortex technology and some of the tips, and Dr. Jwala Karnik could probably talk all afternoon about that in more detail. That's obviously, you know, a competitive moat which we have around our business. It's why, Brent Saunders, why you were so interested in this business when you were leading Allergan. I think that's really critical, and we continue to build on them. You know, 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? Men. Men. Sorry, Brent. Could we have a microphone for Brent, please? Just on your point, Oliver, just on your point, besides the 60 patents, I think the most important intellectual property we own is the trademark. You have to. In this business, the patents are amazing. We want as many and as deep a patent portfolio as we possibly can. That HydraFacial trademark is probably the most powerful and valuable intellectual property we own. I think great point, Brent. Thank you. 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 trademark is critical. Replicating that community, that relationship we have with the esthetician, 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 and- I would add, yeah. If you think about where I came from and the marquee product I used to run, that trademark is much more valuable. Yeah than the patents. Not that we wouldn't want more patents or stronger patents, but that brand is an eponym for the procedure as HydraFacial is becoming for a facial. That is infinitely more valuable. Absolutely. Then the second part of your question, you know, men, huge and growing category. Globally, $85 billion. Of course, huge as well in Asia. You know, we talked about the averages which we saw for our business were 30% or so men. In some markets, it's even higher. You know, I can tell you in Japan, it's very significant. Also in the U.K. U.S., a little bit behind, but growing rapidly. It's all upside in our business, and you'll see us tailoring 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, Linda. Okay. Okay. Okay. First and last. Over to you. Just with the at-home device that you're kind of working on. Yeah. You seem to be moving slowly with it. Mm-hmm. Can you just explain, when you talk about this, these partnerships with the providers and the estheticians and all this, it seems to me a very big risk to bring an at-home device. It seems like it would be lower margin and very costly to market this to the retail environment. Why even risk it? How committed are you, I guess, to bringing an at-home device? I mean, some really great questions in there. 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 wanna protect and only launch something which builds on it, complements it as just as new, better, different and differentiated. In saying that, just like, you know, I'll use a very basic analogy to make my point. Just like we all go to the dentist, we also use the electric toothbrush to top up in between, you know, trips. I absolutely, for that super consumer, and they ask for it. They want something to keep them up, top them up between those monthly visits on their subscription. We do feel there's a very big opportunity. We tested something, Glow & Go. We 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 we have in a really complementary manner. You know, Linda, it's probably not for 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, you know, come to the market when we feel confident with Brent and the board that we have something which is going to win. Yeah. The only thing I'll add to that, Linda. I think we've shared this before as well. We always co-create- Mm With our providers. We will be getting input from them, and this is a connected system, right? The whole idea we have shared before as well. Syndeo is the brain, but, you know, along with the app and the home device, with all the connectivity, we can actually gamify and really provide lead gen and gateway for our providers as well. There's value to be had for the entire ecosystem. Thank you. I think on that, I will just I mean, first of all, thank the tremendous Beauty Health team. Thank you. 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 contents you can refer to it. You can also reach out to Eduardo from our team on IR, Liyuan, myself, if you have any questions thereafter. In the meantime, please, those of you in the room, please join us for a bite to eat outside or enjoy a HydraFacial or sign up for one at a future occasion if you don't have time today. A 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.