OneSpaWorld (OSW) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 results with total revenues of $241.7M, income from operations of $25.0M, and adjusted EBITDA of $33.0M, all surpassing prior records and expectations.

• Increased FY 2024 revenue guidance to $888–$893M and adjusted EBITDA guidance to $110–$112M, reflecting strong momentum and positive outlook.

• Continued expansion with new ship openings and growth in health and wellness centers, ending Q3 operating on 196 ships and 52 destination resorts.

• Board declared a quarterly dividend of $0.04 per share; continued share repurchases and debt reduction.

• Issued inaugural sustainability and social responsibility report, reinforcing commitment to employees, partners, and environmental stewardship.

Financial highlights

• Q3 2024 revenues rose 12% year-over-year to $241.7M; income from operations up 48% to $25.0M; adjusted EBITDA up 33% to $33.0M.

• Net income for Q3 2024 was $21.6M ($0.20 per diluted share), down from $23.4M ($0.16) in Q3 2023, impacted by prior year warrant liability changes.

• Adjusted net income for Q3 2024 was $27.3M ($0.26 per share), up from $22.0M ($0.22 per share) year-over-year.

• Year-to-date revenues reached $677.8M, up 13% from $599.2M; net income for the nine months was $58.5M, a 1,250% increase over the prior year period.

• Unlevered after-tax free cash flow for Q3 2024 was $31.0M, up 28% year-over-year, with a 94% conversion rate.

Outlook and guidance

• FY 2024 revenue guidance raised to $888–$893M and adjusted EBITDA to $110–$112M; Q4 2024 expected revenues of $210–$215M and adjusted EBITDA of $25–$27M.

• Projected to end 2024 operating on 198 cruise ships and 51 land-based resorts.

• Management expects sufficient liquidity to meet capital requirements and comply with debt covenants over the next twelve months and beyond.

• High single-digit revenue growth remains the long-term target, with potential for upside.

• The company continues to focus on expanding value-added services, increasing pricing, and leveraging proprietary technology for growth.