AirSculpt Technologies, Inc. (NASDAQ:AIRS) Q4 2022 Earnings Call Transcript

Operator: Thank you. Our next question comes from the line of Parker Snure with Raymond James. Please proceed with your question.

Parker Snure: Hey, thanks for the question. Yes, this is Parker on for John Ransom. So I just want to go back on the promotional activities, so is this centered around the new de novos and just trying to ramp up productivity when they’re brand new? Or is this centered around some of the existing facilities? I guess I’m just trying to get out is there, kind of, weakening demand in the same-store cohort or are you just trying to kind of ramp up the new cohort? And then just kind of going back on that, I believe you’re previously kind of talking about, hey, you have the ability to potentially raise price in the future, but now you’re maybe kind of talking that down a little bit and doing some promotional activities. So just think about what are you seeing in the consumer and your ability to kind of raise price or your pricing dynamics going forward? Thanks.

Aaron Rollins: I’ll take that. Thanks for the question. First of all, the promotional activity has been across the board, it hasn’t been office specific. And we’ve used it because their data showed that it was an impetus for people to get the procedure, not that they wanted it or not that they didn’t want it, but they perhaps would have delayed it. And we saw it to be a very effective tool in the fourth quarter. We did see a 16% increase in case volume over the fourth quarter, so it’s been great. However, I think how we promote going forward is something that we’re working on in order to actually drive ASP by giving patients more value, but for a higher price point. Because if you want let’s say your tummy done, which is our bread and butter, you have other areas too. And if we can ramp up our ASP and give the patient a little bit more value, it’s good for everyone.

Todd Magazine: Parker, this is Todd. I’ll just jump in on that. I would tell you; we’re not seeing any indication of any kind of headwinds related to macroeconomic challenges. As we said before in the first quarter here, our rate is right back in line of where we historically have been and our case volumes growing very really nicely. So there’s no indication that there’s any headwinds broadly speaking here and we feel very good about the prospect ahead. So, we feel right now we’re in a pretty good spot and we’re excited about the balance of the year.

Aaron Rollins: We’re also right now for the first quarter right at the midpoint of our range. So in terms of ASP, we’re right where we want to be.

Parker Snure: Okay. And then you also mentioned or I know you guys have been rolling out some kind of ancillary offerings like skin tightening in the cellulite. How is that tracking just cross-selling and up selling on customers? And just anything that you can kind of note there?

Aaron Rollins: I’m glad you asked. Something that’s important to understand about AirSculpt Plus and AirSculpt Smooth is that it’s actually meant as a case driver. First of all, we want to be on the edge of technological innovation. We want to really offer the absolute best treatment in body contouring that exists, that’s number one. But what we’ve seen with it now that we have more quarters of experience is that we’re finding it’s a case driver, whereas patients with really loose skin would have been told go get a tummy tuck or we can’t help you. Now we can. We’re also seeing new patients that we would never have treated before for cellulite and we’re also doing AirSculpt on them. The only thing to understand about it is a lot of these patients don’t — our typical patient that’s let’s say has areas all over their body.