Olaplex Holdings, Inc.

Greetings and welcome to the OLAPLEX Holdings Third Quarter 2023 Earnings Results Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Patrick Flaherty, Vice President, Investor Relations. Thank you, Patrick. You may go ahead.

Thank you, and good morning. Joining me today are J.P. Bilbrey, Interim Chief Executive Officer, and Eric Tiziani, Chief Financial Officer. Before we start, I would like to remind you that management will make certain statements today which are forward-looking, including statements about the outlook of Olaplex's business and other matters referenced in the company's earnings release issued today. Each forward-looking statement is subject to risks and uncertainties that could cause actual results to differ materially from those projected in or implied by such statements. Additional information regarding these factors appears under the heading Cautionary Note Regarding Forward-Looking Statements in the company's earnings release and in the filings the company makes with the Securities and Exchange Commission that are available at www.sec.gov. and on the Investor Relations section of the company's website at ir.olaplex.com. The forward-looking statements on this call speak only as the original date of this call, and we undertake no obligation to update or revise any of these statements. Also during this call, management will discuss certain non-GAAP financial measures which management believes can be useful in evaluating the company's performance. Presentation of non-GAAP financial measures should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. You will find additional information regarding these non-GAAP financial measures and a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures in the company's earnings release. A live broadcast of this call is also available on the Investor Relations section of the company's website at ir.holeplugs.com. Additionally, during this column, management will refer to certain data points, estimates, and forecasts that are based on industry publications or other publicly available information, as well as our internal sources. The company has not independently verified the accuracy or completeness of the data contained in these industry publications and other publicly available information. Furthermore, this information involves assumptions and limitations, and you are cautious not to give undue weight to these estimates. With that, I will now turn the call over to JP.

Thank you, Patrick, and good morning, everyone. It's a pleasure to be with you today. I joined Olaplex as executive chair in July 2023 because I saw an innovative company with a special brand, a leader in the attractive, high growth, and resilient prestige hair care category. offering products differentiated by patented technology that delivers superior performance. Since joining the company, I've been spending my time digging into the business, trying to better understand both our strengths and our areas of opportunity. Through this process, I've developed a stronger understanding of and appreciation for the competitive differentiators that make Olaplex unique. I have conviction in the potential for long-term growth and the opportunity to create significant long-term value. The passion of our loyal base of professional stylists and consumers is strong. I see significant opportunity for consistent, sustained growth as we evolve our portfolio with new technology-leading innovation and build our business in attractive geographies. And I believe our Advantage business model will allow us to continue to deliver top-tier profitability and cash generation. That being said, the business has faced several headwinds over the past year, including our own execution in the face of increased competition. I believe, though, that we're at a pivotal point in the company's evolution and the next phase of growth for Olaplex. It requires a different level of focus and improvement in brand building capabilities. My goal is to enable a path to long-term profitable growth and make the company stronger, ensuring we have the right structure, tools, and operating systems in place to achieve our goals. To that end, I've been focused on and leading three key initiatives since I've joined Olaplex. First, I've been overseeing the redesign of our integrated business planning processes to improve forecasting, innovation delivery, and overall business performance management. Next, we're enhancing and investing in our insights and analytics capabilities, which I believe will give us the tools to invest more thoughtfully in our brand and distribution channels and become a more customer and consumer-focused organization. And third, I've been managing the execution of our omnichannel strategy, seeking to reassert our position with the professional channel and ensure that the stylists are at the center of our brand. In addition to these initiatives, we reviewed and assessed our organizational capabilities to determine what we need for long-term success and recently announced a leadership transition. We are very excited that Amanda Baldwin will join Olaplex as our next Chief Executive Officer by mid-December, bringing significant leadership and expertise in the beauty industry to the company. Amanda has spent the last seven years as CEO of Supergoop, the leading SPF skincare brand, where she has led the company through significant growth. Prior to Supergoop, Amanda served as a senior vice president at Elkaterton, a global consumer-focused investment fund, collaborating with management teams across the portfolio with a particular focus on the beauty sector. And she previously led the omni-channel marketing strategy of Dior Beauty and held several positions at Clinique. She's an accomplished beauty executive. Amanda has deep experience with building prestige brands and her mix of strengths across marketing, partnering with customers, product and team development, make her the ideal person to position Olaplex for long-term success. Until Amanda joins the company, I have the privilege to serve as interim CEO. My priority is to ensure that we remain focused on delivering our operating plans, which starts with achieving stabilization in our sales trend in the second half of 2023. Our third quarter results in our 2023 guidance support our belief that we're making progress on that goal. And in a moment, Eric will provide more details on those results. In summary, Olaplex is driven by great science and we see untapped opportunity for growth as we innovate, drive our existing channels, and expand into new geographies. We identified and are implementing changes that we believe will more powerfully unlock the high potential of the Olaplex brand. And I'm excited and look forward to partnering with Amanda, the board, and the entire Olaplex team capitalize on these opportunities. And with that said, I'll now pass it over to Eric to report on our progress towards stabilization, the execution of our priorities, our third quarter results, and our outlook for the remainder of 2023. Eric, over to you.