Waldencast (WALD) Q2 2024 earnings summary

Executive summary

• Q2 2024 net revenue reached $63.3 million, up 28.2% year-over-year, with comparable growth of 25.7%.

• Adjusted EBITDA for Q2 2024 was $6.3 million, a 64.5% increase year-over-year, with margin improving to 10.0%.

• H1 2024 net revenue was $131.6 million, up 23.1% year-over-year, with adjusted EBITDA of $17.7 million, up 27.2%.

• Both Obagi Medical and Milk Makeup significantly outperformed the prestige beauty market, with Obagi Medical growing up to 35.9% and Milk Makeup up to 20% in Q2.

• Both brands are positioned in high-growth, premium segments, with strong U.S. momentum and expanding international presence.

Financial highlights

• Q2 2024 adjusted gross profit was $47.5 million (75.0% margin, up 650 bps YoY); H1 adjusted gross profit was $99.5 million (75.6% margin, up 890 bps YoY).

• Q2 2024 net loss was $9.0 million, narrowed from $23.5 million in Q2 2023, mainly due to fair value adjustments for warrants.

• Ended H1 2024 with $19.7 million in cash, $30 million undrawn on a $45 million revolving credit facility, and net debt of $155 million.

• Obagi Medical Q2 2024 net revenue was $34.6 million (+35.9% YoY), with adjusted EBITDA of $6.5 million (18.6% margin).

• Milk Makeup Q2 2024 net revenue was $28.7 million (+20.0% YoY), with adjusted EBITDA of $5.7 million (19.8% margin).

Outlook and guidance

• Full-year 2024 guidance raised: expects comparable revenue growth to accelerate beyond Q2's 25.7%.

• Adjusted EBITDA margin for H2 2024 projected in the mid-teens, with value and margin above H1.

• Second half adjusted EBITDA anticipated to exceed first half in both absolute and percentage terms.