AirSculpt Technologies, Inc. (NASDAQ:AIRS) Q1 2024 Earnings Call Transcript

Page 3 of 3

Todd Magazine: Yes. Look, it’s a good question. I would say, generally, these are changes that have to be made over time. We historically have been heavily, heavily reliant on paid search is our driver. As you know, last year, we started to do some celebrity marketing, which definitely helped. We saw some definite improvements in awareness building. Well, what we saw, particularly as we were using some of these bigger celebrities is that we would get to spike and then it would kind of come back down. And as I mentioned in my prepared remarks, some of the changes that we’re making now, is kind of doing this rather than kind of a couple of big celebrity relationships or partnerships over a year. How do we do this as kind of more of a string of pearl.

So maybe smaller celebrities, but more frequent. And we’re also finding with some of these smaller celebrities. They have a huge social following. And that’s actually been very beneficial to us. So I think it’s been an evolution. I think we’ve been moving it in the right direction. I don’t think anybody would have anticipated the kind of market changes that have happened. So that, I think, has been the biggest factor. But I think generally, we were moving in the right direction. I think we’re kind of now in the optimization and we’re continuing to diversify our media. And I think that’s proving to be very beneficial as well. So these are not changes that could happen absolutely overnight, but I think we’re moving in the right direction, and we’ll continue to evaluate as we make these changes, and hopefully, it will continue to drive the growth that we need.

John Ransom: Okay. Just lastly, I mean, we’re calculating some pretty same-store numbers. Are there any locations now that are unprofitable? Do you foresee any closures or all your locations still profitable even if the volume is down.

Dennis Dean: Yes. All of our locations, John, are still generating a profit. So nothing from that standpoint. I would say the London Center is slower from a ramp standpoint as we continue to learn through that market. So it’s not ramping up from a profitability standpoint like a typical center that we have, take the rest of the 2023 cohorts. It’s not ramping up to the same degree as those are. But all the centers continue to be profitable. And so no reasons at all to consider closing any.

Todd Magazine: The only comment I’d make on London. I mean it’s definitely — look, international markets, particularly in Europe, I mean, there’s definitely a learning curve. I think there’s a lot of things that we’ve definitely learned, but we continue to be incredibly optimistic about the market. It just might take us a little bit longer to kind of get it all figured out. But once we do, we think that is going to be a very strong center for us.

John Ransom: I mean my editorial comment, the next health care company on the services side that has a good outcome in London might be — it’s been a trail of years for a lot of your peers that have been in that market. you’re not alone to an editorial comment. Thank you.

Todd Magazine: Thanks, John.

Operator: Thank you. We reached the end of our question-and-answer session. I’d like to turn the floor back over to management for any further or closing comments.

Todd Magazine: Thanks, everybody. We will talk to you in a few months and have a great weekend.

Operator: Thank you. That does conclude today’s teleconference. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today.

Follow Airsculpt Technologies Inc.

Page 3 of 3