Greetings and welcome to The Beauty Health Third Quarter 2021 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn this conference over to your host, Ms. Dawn Francfort, Managing Director at ICR. Thank you, Ma'am. You may begin your presentation.

Good afternoon, everyone. Thank you for joining The Beauty Health Company’s conference call to discuss the Company’s third quarter 2021 financial results, which we released this afternoon and can be found on our website at investors.beautyhealth.com. With me on the call is Brent Saunders, Executive Chairman; Clint Carnell, Chief Executive Officer; and Liyuan Woo, Chief Financial Officer of The Beauty Health Company. Before we get started, I would like to remind you of the Company’s Safe Harbor language, which I’m sure you’re all familiar with. Management may make forward-looking statements, including guidance and underlying assumptions. Forward-looking statements are based on expectations that involve risks and uncertainties that could cause actual results to differ materially. For a further discussion of risks related to our business, see our filings with the SEC. This call will contain non-GAAP financial measures such as adjusted gross profit, adjusted gross margin, adjusted net income, adjusted EBITDA and adjusted EBITDA margin. Reconciliations of these non-GAAP measures of the most comparable GAAP measure are included in the earnings release, furnished to the SEC and available on our website. Now, I would like to turn the call over to Brent Saunders, Executive Chairman of The Beauty Health Company.

Thank you, Dawn, and good afternoon, everyone. Thank you for joining us for a discussion of today’s third quarter results. As I’m sure you saw on today’s press release, I will be stepping into the role as the company's interim CEO effective January 1, 2022. As part of this transition, Clint will remain CEO through year-end at which point I will assume additional responsibilities of the CEO and tell permanent successors name. On behalf of the Board, I want to thank Clint for his dedication and commitment to Beauty Health over the past 5 years. He has been a driving force behind the company's success, navigating Beauty Health through COVID as well as our business combination in May. Under his leadership, Beauty Health has become a solid platform for us to build upon as we work towards our next pillar of growth and begin to accelerate our acquisitions. Given these objectives and the strength of Beauty Health, Clint and the Board thought that this was the ideal time to begin the CEO transition. We thank him for his contributions. While Clint and I had been working closely over the past few quarters, I’m excited to step in more fully and work with the team to continue to drive growth and focus on our strategic initiatives. This is a compelling time and I’m excited about our future. The company has a strong foundation and I look forward to the next chapter and the significant growth opportunities we have ahead. I would now like to turn the call over to Clint.

Thank you, Brent and good afternoon, everyone. Before taking into our performance, I would like to express my gratitude for being part of building this category of creating brands over the last 5 years. This has been an exciting journey, and I am pleased with what we have accomplished. I would now like to thank our employees and providers across the globe for all of their hard work and commitment during this challenging environment. They are vital to our success and propelled us to record performance again this quarter. During today's call, I will provide color on our third quarter performance, as well as discuss our growth strategies and outlook for the remainder of the year. I will then turn the call to Liyuan for more detailed discussion of our third quarter results, as well as our updated 2021 financial outlook in more detail. We are very pleased with the results this quarter, as well as the strength of our year-to-date performance. Our sales and adjusted EBITDA continue to exceed our expectations and deliver new record results, while we continue to lead through macro challenges and select market closures related to the Delta variant surge. Our strengths speaks to the diversification of our business across channels and geographies, as well as the favorable health and wellness tailwinds that remain strong and we believe are here to stay. We are executing across all key strategic initiatives we laid out for you last December. And as of today, we grew our delivery systems to over 19,000 units as we leveraged our virtual and physical branding events to increase our consumer engagement with our Beauty Health community. We invested in international infrastructure, adding Indra and Stefan to lead APAC and the EMEA regions, respectfully to meaningfully expand our business in these markets. And…

Thank you, Clint, and good afternoon, everyone. Before I discuss our performance this quarter, I also want to thank our employees and providers worldwide for their continued dedication and effort that is underpinning our growth. This record performance, the successful completion of our convertible senior notes offerings, and a redemption of our outstanding words, all demonstrate the flexibility of our business model and the confidence of our investors in allowing us to continue to rapid growth trajectory we are executing. I will review our third quarter results, touch on our balance sheet and then provide details on our updated 2021 outlook. I will make select comparisons to our third quarter of 2019 as we believe it is a more meaningful comparison due to the COVID-19 related market closure in 2020. Let me start with our third quarter results. As Clint mentioned, we're very pleased with our record performance this past quarter as we continue to build on our strategic initiatives, which drove better than expected third quarter results across all metrics is five Delta variants related restrictions, especially in the APAC region. Our systems and products have global appeal, as reflected in our strong geographic segment growth in this past quarter. Net sales of $68.1 million increased almost 100% from last year's COVID impacted sales. Our $34.6 million and up 72% from $39.6 million in the third quarter 2019. The significant increase was largely due to expansion in our delivery systems, with over 18,500 active systems globally at the end of the quarter, and the continued strength in our consumables as COVID-19 restrictions lifted, and more of our partners reopened. Strong trends in the U.S., and EMEA businesses, and significant growth in the APAC region continued during the quarter despite worsening COVID trends. Now I'll share a few highlights from…

[Operator Instructions] Our first question comes from the line of Oliver Chen with Cowen. You may proceed with your question.

Liyuan, Brent and Clint, congrats on all that you've accomplished. The connected device, the 2.0 connected device sounds quite exciting. How should we think about how that may be launched throughout the year. And also any guidance in terms of your thoughts on revenues in terms of the quarterly cadence? Also, the Glow and Go and the home device, would love to hear any initial learnings and how you're thinking about pricing. And more broadly, how this fits into the HydraFacial ecosystem. And then third, Liyuan, a modeling question. Just the guidance was encouraging. Was it the Americas that drove the most upside? We'd love context on that as well as helping us understand some of the factors you mentioned on supply chain and inflation and which factors, may be outside of your control as we monitor those risk across the sector. Thank you.

Sure. Thanks, Oliver. I appreciate those kind words in the question. If you look at our organic growth on the HydraFacial system, our consumables, it's really been very, very solid and those products work. And they feel good and you get an immediate result. What we're doing is taking our technology now from analogue to digital. And I think that's appropriate given we have over 19,000 providers out there who are launching the Glow and Go, which is an exciting home device really where you can take HydraFacial on the road with you. And so we're doing what you know, I think best-in-class brands do these days. And that's connecting the consumers with our professionals, the estheticians, with the company to ensure that we can meet them where they live, work and play. The Glow and Go, we've had really good alpha and beta testing. We're super excited about it. We have -- we don't have meaningful revenue in the model. So I would say this is test and learn and to build up with our community. Projects Syndeo, we're very excited, and we remain on track with that product to be an H1 of next year and as A - Liyuan mentioned, there's going to be a lot of new product introductions, we expect a lot of trade and trade up activity. And most importantly, we're just really, really excited about going to the next step and what we've committed to for the last several years of connecting the Beauty Health community. So alternatively [indiscernible] for the modeling purposes.

Yes, I just quickly interrupt, Clint, Oliver, and just say I saw this [indiscernible] device in the office last week, and it's Slick, it's going to be really nice launch in the first half of next year.

Yes. Hey, Oliver. So on your questions in terms of the guidance, we actually mentioned the fact that the del1ta variant really impacted some of the regions, especially with APAC. So there's that impact that we factored in as we look forward to Q4. In terms of the margin and supply chain, what we're really trying to say is, for the third quarter, there's some temporary impact, because as you can appreciate with all the four distributors, they have their inventory and the balance they're carrying, it's higher, you know, as they were functioning as a distributor. And that's going to go away, as you think through Q4 and go forward. However, when it comes to supply chain, when it comes to the actual shipping costs, all of that just like everybody else in the market, we continue to see pressure that's going to impact us for going forward.

Thank you, Brent and Clint. As you think about Beauty Health of the platform, what should we know about in terms of what's on your mind for framework, as you think about opportunities, and you're well capitalized and you have a lot of expertise, in terms of this major structural change with the consumerization of health care. Thanks.

Yes, I think that's exactly right, Oliver. And I think as we we've always maintained as we think about, the perfect M&A candidate or candidates, it's a product or brand with a higher NPS score, Net Promoter Score. It allows us to get leverage on our call points, most specifically, with the esthetician that someone we really want to grow with and support. We have a lot of loyalty there. And it's something that would give us a lot of leverage with our existing costs and infrastructure. And then, ideally something that would add accretion to the P&L. That being said, obviously, no deal is a perfect deal. Some deals are better deal. Some deals are not. So we're pretty, pretty fluid, but there's a lot of opportunities. We look at a lot of different things. But we don't feel any pressure. We want to do it in a very disciplined way. But we believe that's a true growth lever for us in the future. Absolutely.

Thanks very much. Best regards.

Thanks, Oliver.

Our next question comes from the line of Steph Wissink with Jefferies. You may proceed with your question.

Thank you. Good afternoon, everyone. And Clint, it was bittersweet to see the announcement today, you'll definitely be missed. My question for you is, I think in the prepared remarks, the word accelerated was used a number of times regarding marketing, R&D investments, the rollout of international, the buyback of the distributor ships. So can you talk a little bit about how much of the revenue upside has afforded you to accelerate the investments in the business? Any of that pull ahead from what would have been investments in later years? And then if you think about the growth that could come behind that, where should we see the prioritization of growth? Do you expect International to be the single biggest growth driver? Or are there other attributes of the model we should be watching over the next couple of years? Thank you,

Sure. Yes. Thanks, Steph. Thanks for the kind words. I will take the first part and then maybe hand it to Brent for the second part. You remember when we merged with Vesper back last December. WE thought that we're going to see celebration got hit by the Delta variant closures. And I think Liyuan, and the team have done a great job providing guidance on how we manage through not just the pandemic, but we're thriving out of it. So what we've committed to investors is that we wouldn't spend on marketing and infrastructure and adding salespeople who didn't have visibility to driving growth. So I think what you see in the Q3 results of what you've seen in the first two quarters is feathering in those investments, really simply putting down more placements, driving innovation to the two new products you're seeing. And we've increasingly spent on marketing and global infrastructure to get ahead of the growth. So it's very consistent what we laid out last December, we did the pipe, very consistent with I think, the three quarters now that we've reported. And I think the team's done an amazing job of working through, it's still a challenging situation. So really good tailwinds, really disciplined expense management, be an incredibly opportunistic where possible on and hopefully, that's what you've seen in the Q3 results. So no pull forward on revenue. Just to be clear, it's really just extending against those three pillars that we laid out back almost a year ago now.

And I think as you think about growth, I mean, one of the things I find most exciting about, our company is there's so many levers of growth. And for us, it's clean said it's about being very thoughtful, and disciplined, and how to invest behind those levers of growth, because there's so many of them. Clearly International is a huge opportunity for us. And you see that in this quarter, particularly in Asia. And that's despite flare ups and Delta variant and COVID closures, new products is going to be a strong source of growth for the future. And frankly, M&A is a completely unplanned source of growth. But given the firepower we have and the cash wave on the balance sheet, that could be a huge source of growth for us in the future. Tried to predict which one is going to be the greatest, it's hard to say because it's like asking which kid you like the most. But clearly, international is a business that probably the most faked opportunity or the most advanced or mature opportunity for growth for us.

Thank you. That's helpful. Liyuan, could I ask one follow up question. I think you mentioned higher pricing on delivery systems in the quarter. Help us think through some of the inflationary pressure and the power you see in your model to price into some of that inflation, whether it's on the systems or the consumable side. Thank you.

Hi, Steph. Yes, so we actually shared that previously, as well. We have a natural increase in ASP, partially because of the strong demand and really the mix. Historically, we were able to pass on cost and also increase in price. And we're certainly thinking that through as we go for next year as well. So that that's truly baked in for the numbers, the guidance and as we think through it for the future as well.

Thank you.

Our next question comes from the line of [indiscernible] with Piper Sandler. You may proceed with your question.

Hi. Thanks for taking the questions, and Clint it was great working with you. And they'll say I might be missed. So first, for first for us, can you just talk a little bit about the growth and delivery systems that you saw? Is there any channel that stood out in the quarter as being stronger than others? And then how are you thinking about contributions from each channel going forward, especially as you continue to grow your various partnerships?

Yes, great Karen. Thanks for the nice words. If you think about what we've done in the last three years, it's been quite a journey. But we've learned that to drive system placements, we need to drive consumer demand. So we've kind of flipped this upside down and really worked to go from just a pure B2B Play to a B2C back to B. And so I think around the world, as we're travelling with our distributors and our salespeople, we're finding it easier to sell HydraFacial units, because more consumers are asking for it by name. And we're filling the existing ones up. So people are buying multiple systems. So that's really exciting. I think it's a testament to where the brands starting to get a really nice tipping point. In terms of the channels, they're all growing really nicely. And there's new channels emerging as we see experiential Beauty Health, happiness, that's, I think, results, as a result of our relationship, not just the support, which is incredibly strong, but with North Jones and John Lewis, and laser centers of Australia, really excited about these new and emerging business partners. The one that's still depressed is our retail channel. And I think, that is really, you see flare ups, and as you see restrictions from government restrictions. So I think if anything, that company as we emerge from the pandemic, and with the great news, we've had the last week, we should see all these channels growing and really excited about it. It is important though, the average HydraFacial consumer if you remember gets treatments in 3.2 different locations. So, we haven't lost those consumers, we just have moved them to different places, and I can't wait to help our retail partners get back on a strong footing.

Great. Thank you. And then, so you've invested time and consumer awareness from GLOWvolution [indiscernible] and social media. Is there any way that you can quantify how these investments may be translating to new customers or increased spend from your current customers? Understand it still may be early days in these, but is there any color you can provide that would be helpful. Thank you.

Yes, we do know the data for the last several years have said, look, if some HydraFacial has had high single-digit awareness. When people get it, two thirds of them stick and 1/3 become super consumers. So, several years ago, we started the world tour during the pandemic, we design that very cool, semi that's called Global Lucian. And what we find is, whether we're in Dubai in a pop up shop, or London in a pop up shop, or one of our GLOWvolution stops, the data looks the same. 85% of people that we drive to one of our physical activations have never had a HydraFacial. And upon leaving 85%, they want to get a HydraFacial. And so that has worked for us incredibly well. So we track the ROI on all of these events. I think increasingly, the company is getting more sophisticated about the CAC to LTV relationship, but it's safe to say we wouldn't be doubling our marketing spend, particularly on these types of activations if we didn't think it was well worth it. So we're not prepared to give the secret sauce, so to speak. But I think it's really targeted, very surgical, like marketing that drives physical sales, threats, consumer awareness, and that turns into consumable sales, because they're going to our placements. So it seems to be a really great ecosystem that we found is very supportive. It's marrying the consumer with great expectations that are well trained for HF connect and just gave them the experience the benefits the treatment.

Thank you.

Our next question comes from the line of Jon Block with Stifel. You may proceed with your question.

Thanks, guys. Good afternoon. Maybe just to start, the midpoint of the 2021 guidance, I believe, implies a flat for Q3. Usually we see a 4Q seasonal uplift. Maybe if you can just talk to that a little bit is a conservatism. Just also talk about what would take you to arguably the high-end of the range versus the low end and maybe just as a tack onto that [indiscernible] Is some of that a function of what you've witnessed in APAC and some of those APAC COVID headwinds beginning to abate here as we work our way throughout the fourth quarter.

Hi, Jon. Yes, so I think there's definitely a point of view when it comes to APAC market because that's the market impact us the most significantly, when it comes to the third quarter. You probably saw the news as well. What happened to Shanghai Disney? I think China, as a market, there's a lot of impact. If you know the trend were to going on the worst side of equation. We're also starting to see some ease up in Australia. But there's also other countries in APAC region having a worsening trend. So overall, we did take that into consideration. We have shared with you previously, we track our open and close pretty closely by region. So we build that into our guidance, if that makes sense.

Okay. Yep, certainly does. And maybe I will follow-up with you a little bit more offline there. Just a pivot and sort of the follow-up question, the global supply chain pressures that you guys mentioned, I don't think an impact 2.0, I think he called it out, 1H '22. But does it impact on how you roll it out? In other words, measuring the cadence of the rollout, we've done some checks, and there seems to be a really high want in the field from your current install base to possibly upgrade. So just as we think about those supply chain pressures, will you be able to fill all demand, call it new and potential upgrades in your opinion, as early as the first half of next year? Thanks, guys.

Hey, Jon. Yes, so as you can appreciate, we're pretty thoughtful in terms of making the main delivery systems, especially we shared with you historically, we roll out, call it 3,500, 4,000, right. So from a numbers point of view, while the supply chain remain to be constrained for all of us, we can plan ahead. So a lot of the real supply chain issue we're seeing, it's more when it comes to shipping or delays, more so than shortage, if that makes sense.

It's not a component issue necessarily for us. So we should be okay.

Perfect. Thanks, guys.

Our next question comes from the line of Amit Hazan with Goldman Sachs. You may proceed with your question.

Hi. Thanks, this is Phil for Amit. Thanks for taking the question. Maybe my first one to follow on what Jon was just asking the line of questioning. We're starting to see case rates increase in parts of Europe, some of the key countries that you all called out as areas of strength in this quarter. I'm just wondering if you can kind of follow on the APAC logic and talk about what you're seeing at this point from movement restrictions or otherwise in Europe that might be implied in the 4Q guidance? Thanks. A - Clint Carnell Yes, Jon, this is Clint. Look as you know, I mean, we've been through the worst, hopefully, the worst of the pandemic, we've managed through it, we've never let that be an excuse. We just tried to shoot straight with the market on what our visibility is. But I think there's no doubt that the macro trends of health and wellness and certainly the benefits that we have as macro tailwinds go away. So even when we see markets like Japan that shuts down or Australia shuts down, we see demand come back. And because we have such a, Omni channel approach, geographic diversity, no concentration, I'm obviously going to be handing the keys over to Brent and team here. But I feel really comfortable that we've gotten very good at managing through this. So I don't think there's any reason to over think that or to be, too optimistic about it. We're giving you good guidance based on the affair in the marketplace.

Okay, that's fair enough. My second question was around utilization of the systems broadly. It's more of a broad question. I think about the seasonality that anticipate the business going forward. But as part of the talk track today sounded like there were a number of factors that were kind of impediments to what would have otherwise been even stronger growth. The crude math, just treatments divided by systems looks like a step down sequentially. Is that something that we should be anticipating going forward that kind of 2Q to 3Q seasonality stuff down? And then recovery in 4Q? Is that what you all see in underlying business? Are there some one times or otherwise that we should be thinking about? Thanks for the question?

Yes, sure. I'll handle it at a high level. The first that is, you're well aware, Q2 and Q4 tend to be stronger than Q1 and Q3, that has been a bit unusual because of the pandemic and the shutdowns. And also we have a market that's growing outside the U.S very fast. So I wouldn't, we're also laying down a lot of new systems, which take a while to mature. So, when you're laying down a lot of new systems, and you've got a little bit of an abnormal cycle because of the pandemic, I think it'll normalize over time, and we'll be prepared to do more granular information at that time.

Thanks for the question.

Our next question comes from the line of Kyle Rose with Canaccord. You may proceed with your question.

Great. Thank you for taking the questions. And I echo all the sentiments regarding Clint's departure. So congratulations on everything you've accomplished. I wanted to maybe just touch a little bit more on the acceleration comments that I think was asked previously. In the one thing when I look back to where guidance started the year and where we're at now. I mean, you've obviously had tremendous upside on a revenue perspective. And you've reinvested the majority of that back into the business, obviously, you're raising EBITDA here a little bit. What I'm trying to understand is how should we think about leverage from a bigger picture perspective or over the medium term? When we think about some of the investments you're making with the global ERP and CRM system, just trying to really understand how much is one-time in nature versus going to be an ongoing expense line, we should be thinking about?

Yes, Kyle I will start -- thank you for the kind words, I'll start with the first part and then handle over to Liyuan. From the start of this, from the pilot to the go public lease back, we really wanted to be clear to investors that this was a growth story that there were investments that we felt would accelerate shareholder value, and that we felt like we could set up a really nice revenue, predictability and expense predictability that was heavy on investment. Traditionally, this company or historically has been very CapEx light. So if you remember, we agreed that we signaled investors, we wanted to double the marketing spent and consumer awareness drives revenue. We wanted to get the new products out, because those have been stopped as we went to the pandemic. So with two new exciting products coming, and then we wanted to build out the international infrastructure and then we'd said, we focus on M&A. So I think, what Liyuan I have committed to is that for the next 18 months to really think about this being a growth story. Historically, under private equity management, we ran this at 25% to 30%. EBITDA, there's no reason this company couldn't be run to really produce cash flows in that same level in the future. But this is the growth story out of the blocks and hopefully, we've delivered upon our commitments and now we focus on that fourth pillar. So that's [indiscernible]. I don't know, Liyuan, if you want to add?

Yes. So to add to that, I think we've mentioned that briefly prior, if you really think about this current year, R&D has been a pretty big focus. And we had mentioned we were buying speed, right, because we also wanted to speed up the process, accelerate it, and then we can start to test and learn some of the new product lines, I think Clint has always -- also shared, usually, we're at a three to five year cycle, when there's a really significant launch of a product, but then we're going to be active. So if you really think about this year, a big chunk of the R&D investments, you don't necessarily see the revenue until the following year. By the same token, marketing that will continue as we see how we get a return on investment. For international, as you mentioned earlier, it's a cloud solution, there's some investment into this ERP and other space and people were investing heavy this year, which was really benefit, the year after and go-forward. We will anticipate the continuing investment, the go-forward for the next couple of quarters. Now, we should be at a pretty good position to really leverage for the future.

Thank you. That -- that's very helpful. And then we spent some time already talking about Syndeo, and Glow and Go, but I wanted to touch on just, if we can go back to Keravive and Epicutis, I'm not sure if I'm pronouncing that right. But when I think about that, you're moving beyond the face into the scalp. And now you're moving into the Décolleté and the Neck. Trying to understand, what uptake has been of both of those products and in just how you expect to see utilization trend from a longer term perspective, when we think about moving beyond just the face and into some of those other areas.

Yes. Thanks, Kyle. I will start with the first part. I mean, I think, three steps 30 minutes best in your life. HydraFacial has become really, increasingly synonymous with kind of owning the healthy skin category. We cleanse, extract, we hydrate, and I think the team has done a really nice job, increasing consumer awareness about this in the first place to go. And I think Beauty Health is a natural extension of trying to increase that influence. If you look at the data, and I know this healthy scalp is as big a market. Keravive is a highly differentiated product. It works just like our skin health products and medicine and product, it makes everything else better. And healthy scalp is key to healthy new hair growth. So I think the team's really excited about it. And I would consider Keravive just the first product and a portfolio product for healthy scalp. Epicutis is new. I think, as we look to improve the system, improve the ingredients, launch new products, skin is your largest organ, it's all over your body. And so it's a really nice natural extension to the Décolleté. And Décolleté -- and I'm I think the team is really excited about Epicutis, really proprietary product with really, really very good results and so early days, but certainly the market data will stay that if we execute upon that should be very promising areas of opportunity for the company.

Great. Thank you for taking the questions.

Our next question comes from the line of Linda Bolton Weiser with D.A. Davidson. You may proceed with your question.

Yes. Hi, thank you. I was wondering if you could -- I know you likely do not want to get into talking about guidance for next year. But I'm just curious if the numbers that you put out at the time of your destacking in terms of projections on revenue growth and EBITDA growth, would those growth rates still hold true for 2022? Or maybe you can just kind of qualitatively discuss any differences that there might be versus what you had originally projected? Thanks.

I don't want to give Brent and the team a number that I don't want to write a check that he can pass, Linda. So, I feel really good about what we've achieved. I feel very good about finishing the year and transition in the business. We haven't ever had a better market position, a senior team that's reloaded and a strategy that were executed upon some really nice new products and a connected community. I think I'll leave it to Brent and the team on what future guidance is, but I felt it was important to deliver this company with a strong team, a strong product offering a good market presence. And I'm sure he'll be here to provide you further guidance on it. But …

Yes, I'll just chime in and thanks, Clint. If you look at the numbers we've provided in the destacking or in the spec IPO or bridge data, we will surpass those and the companies that are in a very strong position. We're very excited about future growth. But we're going to provide that guidance in the normal course. And we'll be doing that in the next I guess probably 2 months or thereabout.

Okay, thank you. And can you comment on how churn is looking? As your number of systems continues to increase? Is there churn increasing too? Or is churn staying relatively stable?

Hey, Linda, so far it's been relatively stable and consistent.

Yes, the nice thing if you look back, products been around since '05, it's been consistent historically. So I don't think the addition of newer higher volume production, I think is and rep productivity should be a sign of strength with the brand, not concerned. So nothing has changed so far.

And then finally, just on the M&A strategy, I was just curious if you wanted to take advantage of the channels that you're strong in? So would you consider acquisition of say, like a DERM cosmetic brand that was distributed to doctors offices? Or do you think you want to stick more in the device area?

Yes, it's -- I think we want to take advantage of the distribution we have that is the call point of the esthetician, whether she sit in a doctor's office, or a spa, or a hotel, or retail channel, it's really that call point. And so it could be a -- it could be skincare, it could be a device, it could be anything that really supports her practice and her growth and helps her benefit her customer. That's how I think about it at a high-level, for sure.

Okay, thank you very much.

Thank you, Linda.

Ladies and gentlemen, we have reached the end of today's question-and-answer session. I would like to turn this call back over to Mr. Brent Saunders for closing remarks.

Yes, so thank you, operator. Just want to kind of end and say how pleased we are with our results for the quarter and how excited we are for our future. We focus on executing our next phase of growth. We really thank everyone for joining us on the call today and we look forward to keeping you all updated.

Thank you for joining us today. This concludes today's conference. You may disconnect your lines at this time.