A Little Nip and Tuck: AirSculpt (AIRS)
Photo by Anna Shvets from Pexels
with masks coming off, consumers are reconsidering cosmetic surgery and the technologies such procedures require
Americans are finally getting some work done. Last month, the American Society of Plastic Surgeons reported brisk interest in a full range of cosmetic procedures. Some 44% of patients surveyed expressed interest in breast augmentation. Another 37% were considering soft tissue fillers; and 30% were looking into liposuction or other forms of fat removal. Fresh demand was confirmed by medical technology providers and those close to financing and operating medical practices.
The improving cosmetic and aesthetic surgery sector comes after steep cuts in procedures, due to pandemic hospital restrictions and patient hesitancy. Overall operations dropped by more 33% from 2019 into 2020, according to trade groups.
Face work, it appears, was of minimal value in a world ruled by masks.
The fresh interest in freshening up one’s looks, as masks come off, is driving the appeal in the growing sector of newly public cosmetic technology providers. Worth a look are Miami Beach-based AirSculpt (AIRS); Long Beach, Calif.-based Beauty Health (SKIN); and Israel-based InMode (INMD). Beauty Health is positioning itself as the social media-enabled skin maintenance provider. InMode is developing a minimally invasive radio frequency procedure with applications in both cosmetics and a larger array of operations. Airsculpt is more focused on a well established laser-driven fat-removal system, patented back in 2012. It is currently offered in several dozen branded clinics across the Americas.
AirSculpt, at least at this early juncture, offers the clearest portfolio of success stories. Its before and after photos are worth a look.
AirSculpt does have a decent library of successful procedures.
The firm’s financials are far from unwatchable: Annual cash flow from operations is up by around 120% year-over-year. Revenues are doubling. Net income is up. Demand for the ticker has outstripped supply for the past quarter or so. It’s easy to look past flagging quarterly cash flows or that the operation has no book value to speak of.
But in these gritty, complex times, betting on brashly surface appearances has undeniable appeal.