Here is why The Beauty Health Company (SKIN) stock plummeted in the after-hours on Wednesday?

The Beauty Health Company (SKIN) shares declined 4.18% in after-hours on Wednesday, September 08, 2021, and closed the daily trading at $26.35. In the regular trading of Wednesday, SKIN’s stock gained 1.59%. The stock volume remained 2.19 million shares on Wednesday. SKIN shares have N moved up 6.96% in the past week. Over the past three months, the stock has gained 65.66%, while over the past six months, it has soared 154.16%. Further, the company has a current market of $3.54 billion and its outstanding shares stood at 91.80 million.

Let’s have a brief look at its recent news and developments.

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SKIN Proposed Convertible Senior Notes Offering

On September 08, 2021, The Beauty Health Company (SKIN) announced its intention to offer, subject to market and other conditions, $400,000,000 aggregate principal amount of convertible senior notes due 2026 in a private offering. Beauty Health also expects to grant the initial purchasers of the notes an option to purchase, for settlement within 13 days from, and including, the date the notes are first issued, up to an additional $60,000,000 principal number of notes.

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SKIN new appointments

On August 12, 2021, The Beauty Health Company (SKIN) appointed Indra Pamamull as President of APAC and the promotion of Mingo Ku to Chief Commercial Officer in APAC.

On August 04, 2021, the company also appointed Ben Baum as Chief Experience Officer, effective immediately, and Stephan Becker, as President of EMEA, effective October 1, 2021.

SKIN recent financial results announcement

On August 10, 2021, The Beauty Health Company (SKIN) reported its financial results for the second quarter ended June 30, 2021.

Q2 2021 financial highlights

• SKIN reported net sales of $66.5 million in Q2 2021 compared to 14.1 million in Q2 2020.
• In Q2 2021, the gross margin was 71.0% compared to 30.3% in Q2 2020.
• Selling, general and administrative expenses were $70.6 million in Q2 2021 compared to $11.6 million in Q2 2020.
• It suffered a net loss of 139.4 million in Q2 2021 compared to a net loss of $10.4 million in Q2 2020.
• Adjusted EBITDA was $11.4 million in Q2 2021 compared to an adjusted EBITDA loss of $1.1 million in Q2 2020.
• As of June 30, 2021, the company had cash and cash equivalents of $101.5 million.

FY 2021 financial outlook

For FY 2021, Beauty Health is expecting

• Net sales in the range of $230 million to $240 million.
• Adjusted EBITDA of approximately $25 million.
• Capital expenditures of approximately $15 million.
  

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Conclusion

The proposed public offering was the reason behind its after-hours loss on Wednesday. It can further decline in the coming trading session of Thursday.