NU Skin Enterprises, Inc. (NYSE:NUS) Q1 2023 Earnings Conference Call May 3, 2023 5:00 PM ET

Company Participants

Scott Pond - VP, IR

Ryan Napierski - President, CEO & Director

Connie Tang - EVP & Chief Global Growth & Customer Experience Officer

James Thomas - Interim CFO

Conference Call Participants

Chasen Bender - Citi

Operator

Good day and thank you for standing by. Welcome to the Quarter One Nu Skin Enterprises Earnings Conference Call. At this time, all participants are in a listen mode only. After the speakers presentation, there will be a question-and-answer session. [Operator Instructions]. Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Scott Pond. And you're all set.

Scott Pond

Thanks, Mackellar [ph] and good afternoon, everyone. Today on the call with me are Ryan Napierski, President and CEO; Connie Tang, Chief Global Growth Officer; and James Thomas, Interim CFO.

On today's call, comments will be made that include some forward-looking statements. These statements involve risks and uncertainties, and actual results may differ materially from those discussed or anticipated. Please refer to today's earnings release and our SEC filings for a complete discussion of these risks.

Also during the call, certain financial numbers may be discussed that differ from comparable numbers obtained in our financial statements. We believe these non-GAAP numbers assist in comparing period-to-period results in a more consistent manner. Please refer to our investor website for any required reconciliation of non-GAAP numbers.

And with that, I'll turn it over to Ryan.

Ryan Napierski

Thanks, Scott. Hello, everybody. Thanks for joining us today. Since we introduced Nu Vision 2025 last year, we've been actively engaged in our multiyear transformation to becoming the world's leading integrated beauty and wellness company that's powered by our dynamic affiliate opportunity platform.

Our Q1 performance was in line with our expectations despite the ongoing macro challenges, and we anticipate steady improvements throughout the year. While first quarter was down year-over-year due to the difficult comparisons largely associated with the macroeconomic headwinds and strict China COVID lockdowns from Q2 of last year, we performed within our guidance range for both revenue and EPS. We achieved better-than-expected results in South Korea and Mainland China, while the Americas and Southeast Asia were impacted by macroeconomic factors, including inflation and recessionary concerns.

While we expect the near-term macro environment to remain challenging, we see encouraging signs in several key markets, including Mainland China, where we experienced sequential growth in customers and affiliates. We also continue to make steady progress on key initiatives, enabling New Vision 2025 and are reiterating our full year guidance where we anticipate continued improvement in our results over the balance of the year with a return to growth in the fourth quarter.